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City of Bangor, Mai.ne
Comprehensive Annual Financial Report
'�_- For the Fiscal Year Ended June 30, 1998
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�� � � Prepared by:
Ronald Heller, Finance Director
Debbie Cyr, Deputy Finance Director
David Little, Tax Collector and Deputy Treasurer
City of Bangor, Maine
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 1998
Table of Contents
INTRODUCTORY SECTION Exhibit Page
Letter of Transmittal 1
Awards and Recognition 24
Certificate of Achievement 26
Organizational Chart 28
Elected Off'icials and Principal Administrative O�cers 29
FINANCIAL SECTION ;,
Report of Independent Auditors � 30
Combined Financial atements Overview:
Combined Balance Sheet - All Fund Types and
Account Groups 1 31
Combined Statement of Revenues. Expenditures,
and Chan�es in Fund Balances - All Governmental
Fund Types and Expendable Trust Funds 2 3�
Statement of Revenues, Expenditures, and Changes
in Unreserved/Undesicnated Fund Balance -
Budget and Actual - Budgetary Basis - General Fund � 3 36
�:.'
Combined Statement of Revenues, Expenses, and
Changes in Retained Earnings/Fund Balances - All
Proprietary Fund Types and Similar Trust Funds 4 37
Combined Statement of Cash Flows - All
Proprietary Fund Types and Similar Trust Funds 5 38
Notes to the Financial Statements 40
Schedule
General Fund:
Balance Sheet A-1 68
Statement of Revenues, Expenditures, and ChanQes
in Unreserved/Undesianated Fund Balance - �
Budget and Actual - Budgetary Basis A-2 69
City of Bangor, Maine
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 1998
Table of Contents (Continued)
Schedule Page
Special Revenue Funds:
Combining Balance Sheet B-1 72
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balances B-2 73
CaDital Projects Fund:
Balance Sheet C-1 74
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balance C-2 75
Enterorise Funds: �
Combining Balance Sheet D-1 76
Combining Statement of Revenues, Expenses,
and Changes in Retained Earnings D-2 80
Combining Statement of Cash Flows D-3 82
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Sewer Fund D-4 86
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Airport Fund D-5 87
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Park Woods Fund D-6 88
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - City Nursing Facility
Fund D-7 89
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Parking Fund D-8 90
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Budget Basis - Bass Park Fund D-9 91
City of Bangor, Maine
Annual Financial Report
For the Fiscal Year Ended June 30, 1998
Table of Contents (Continued)
Schedule Page
Schedule of Revenues, Expenses an.d Encumbrances
Budget and Actual - Budget Basis - Municipal Golf Course
Fund D-10 92
Schedule of Revenues, Expenses and Encumbrances
Budget and Actual - Buc�get Basis - Economic Development
Fund D-11 93
Trust and Agency Funds: �
Combining Balance Sheet E-1 94
Statement of Revenues, Expenditures, and Changes
in Fund Balance - Expendable Trust Funds E-2 95
Combining Staternent of Revenues, Expenses and
Changes in Fund Balances - I�onexpendable Trust Fun�s E-3 96
�_
Combining Statement of Cash Fiows - Nonexpendable � '
Trust Funds E-4 97
Statement of Changes in Assets and Liabilities - Agency
Funds E-5 98
General Fixed Assets Account Grou.�
Schedule of General Fixed Assets by Source F-1 99
Schedule of General Fixed Assets by Function F-2 100
Schedule of Changes in General Fixed Assets by Function F-3 101
Other Information:
Assessed Valuation, Commitment, and Collections G-1 102
Undesignated Fund Balance Sufficiency Calculation G-2 103
City of Bangor, Maine
Annual Financial Report
For the Fiscal Year Ended June 30, 1998
� Table of Contents (Continued)
STATISTICAL SECTION
Table Page
General Govemmental Revenues - Budgetary Basis -
General Fund Only, Last Ten Fiscal Years 1 104
General Governmental Expenditures - Budgetary Basis -
General Fund Only, Last Ten Fiscal Years 2 106
General Governmental Expenditures/Other Uses and
Revenues/Other Sources - Budgetary Basis- General
Fund Only, Last Ten Fiscal Years 3 108
Assessed and Estimated Market Value, Last Ten Fiscal Years 4 110
Property Tax Levies, Collections and Delinquencies,
Last Ten Fiscal Years 5 112
Property Tax Rate Components, Last Ten Fiscal Years 6 114
Principal Taxpayers, June 30, 1998 7 115
Computation of Legal Debt Margin, June 30, 1998 8 116
Ratio of Net Bonded General Obligation Debt to Assessed
Value and Net Bonded General Obligation Debt Per Capita,
Last Ten Fiscal Years 9 117
Ratio of Annual Debt Service Expenditures for General
Fund, General Obligation Bonded Debt to Total General
Fund Expenditures, Last Ten Fiscal Years 10 118
Computation of Direct and Overlapping Debt, June 30, 1998 11 119
Direct and Overlapping Debt, Last Ten Fiscal Years 12 120
Revenue Bond Coverage, Last Ten Fiscal Years 13 121
Debt Service Requirements to Maturity - All Bonded
Debt, June 30, 1998 14 122
Self Supporting and Tax Supported General
Obligation Debt, June 30, 1998 15 123
Defined Benefit Pension Plan - City and Employee
Rates and Contributions, Last Ten Fiscal Years 16 124
City of Bangor, Maine
Annual Financial Report
For the Fiscal Year Ended June 30, 1998
Table of Contents (Continued)
Table _ Pa�_
Defined Benefit Pension Plan, Unfunded Liability
Amortization 17 126
Public School Enrollment, Last Ten School Years 18 127
Educational Attainment - Persons Age 18 and Over,
Calendar 1997 19 128
Employment Composition, Last Ten Calendar Years 20 130
Employment Data, Last Ten Calendar Years 21 132
Major Employers - Bangor and Bangor MSA,
Calendar 1997 22 133
Residential and Commercial Buildina Permits and Bank
Deposits, Last Ten Fiscal Years � 23 134
Ten Largest Current Construction Projects, June 30, 1998 24 13�
Various DernoQraphic Data, 1990 Census 25 136
Taxable Retail Sales, Last Ten Calendar Years 26 138
:�
Miscellaneous Data 27 139
�` � . ..
�
Introductory Section
CITY OF , ""°°
MAINE �,�r 73 HARLOW STREET
.�
BANGOR,MAINE 04401
FINANCE DEPARTMENT TEL.207/945-4400
Ronald 1. Heller
Finance Director
December 3, 1998
To the Honorable Chairman,
Members of the Bangor City Council, and
Citizens of Bangor:
Enclosed herewith are the City of Bangor's audited financial statements for the fiscal year ended
June 30, 1998. In our ongoing efforts to provide greater and more meaningful information to the
people of Bangor, the Council, and other interested parties, we have assembled this
Comprehensive Annual Financial Report, or CAFR, the core of which is formed by the City's
audited financial statements. As always, it is our intent that this document give the financial
statements more depth, aid in their interpretation, and help the reader identify the issues inherent
in the City's financial 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 contexi 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, is intended as
� an overview of the document as a whole. It principally consists of a narrative report
on the City's audited financial results for the fiscal year ended June 30, 1998, and
contains other general information about the City.
■ The Financial Section is composed of the City's audited general purpose financial
statements, including all notes and schedules for the general fund,the eight enterprise
funds, the various special revenue and fiduciary funds and the two major account
groups. This information has been prepared by City staff, and includes the
independent auditor's unqualified opinion.
■ The Statistical Section contains select financial, economic and demographic
information, presented variously on either single or multi year bases.
City of Bangor,Maine
CompreJeensive Annual Financial Report
For tJte Year Ended June 30, 1998
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. The City 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. Bangor is the hub
of an 11 municipality employment area as well as the commercial and cultural center for eastern
and northern Maine; a region that 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 separates 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 Town 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 «-as
second only to Chicago in the 1860's to 1870's. In the ensuing years, Bangor has become a major
trade, distribution, service and commercial center for the eastern and northern portions of the State.
ORGANIZATIONAL STRUCTURE
The City's present charter dates to 1931, and has been amended several times, most recently by
City voters in November, 1995. The City operates under a Council-Manager form of government,
with a nine-member Council elected at-lazge to staggered three year terms,three of which lapse
each year.
Councilors are limited by City Charter to two consecutive terms. The Council Chair is the City's
Mayor,and 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 ManaQer 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 staggered three year terms. Unlike the Council, there is no limit
to the number of consecutive terms a member may serve. The School Committee employs the
Superintendent of Schools as its Chief Operating Officer. The current Superintendent has been
in his position since 1987.
2
City of Bangor,Mafne
Comprehensive Annua!Financial Report �
For tlie Year Ended June 30,1998
FINANCIAL INFORMATION
The Finance Director is the City's Chief Financial Officer and Treasurer. As such, he is
responsible for all financial functions, including managing and recording the City's financial
transactions, planning for the City's financial needs,prudently investing City funds, identifying �
and managing financial risk, borrowing funds as authorized by Council action, performing those
tasks assigned by the City Manager and other activities pertainirig to the City's financial affairs.
The Deputy Finance Director is also the City Auditor. As such, she is most directly responsible
for maintaining the City's accounts and records, producing the City's general purpose financial
statements and assisting the Finance Director in the performance of his duties.
The Finance Department is primarily responsible for establishing and maintaining the necessary
internal control mechanisms and structures to assure that City assets are properly collected,
accounted for, administered, safeguarded and expended. Under the direction of the Finance
Director, the Department consists of the following divisions:
■ Treasury is responsible for the collection, investment and custody of the City's
financial resources and assets. '
■ Audit is principally responsible for maintaining the City's financial records as they
pertain to its assets, liabilities, revenues and expenditures.
■ Tax Collection assures that all taxes due the City are collected.
■ Risk Management mitigates and insures against the inherent risks of conductina
City business. This function is expanded upon under the section entitled Risk
Management, further below.
■ Purchasing administers the City's procurement of goods and services and manages
its fixed assets.
■ Information Services is primarily responsible for maintaining the City's computers
and related systems. •
The Budgeting Process
The City's budgetinQ process is structured around its fiscal year,which beQins on July 1 st and ends
on the following June 30th. The City annually adopts budgets for its general fund and eight
enterprise funds through a carefully prescribed process.
3
City of Bangor,Maine
Comprehensive Annual Financial Report
For tlie Year Ended June 30, 1998
The City Charter requires that the City Manager submit a recommended budget to the Council by
the second Monday in April. The budget,which must be in balance, contains estimates of(1) all
non-tax revenues and receipts expected to be received during the next fiscal year, (2) the
expenditures necessary to support City operations, (3) debt service requirements, and (4)the tax
levy required to achieve balance between revenues and expenditures. �
The Council may modify recommended expenditures and the recommended tax levy 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, an appropriate property tax
levy is established and filed with the City Assessor.
Internal Controls
The City employs a full array of internal budgetary controls to assure the proper receipt, custody
and disposition of its funds and other assets. These include the requirement of 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, dual signature requirements; and the like.
Inde�endent Audit
In addition to the internal controls briefly described above,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 unqualified opinion as to the City's general purpose financial statements
is included in the Financial Section.
Additionally, the firm perfonned various tests and procedures to meet the requirements of the
federal Single Audit Act of 1984 and related OMB Circular A-133. The independent auditor's
report pertaining to these requirements is received and maintained separately from the audited
general purpose financial statements, as are all collateral documents that may result from the
annual audit. All such documents are available upon request.
Risk Management
Overall risk management responsibility falls to the Finance Department,��hich identifies and takes
those steps deemed reasonable to ameliorate the foreseeable risks inherent in the normal conduct
of City business. Accordingly, the City regularly purchases commercially available insurance for
a variety of identified risks. These include coverages under commercial general liability, auto,
property damage,crime and dishonesty and various other policies,each with limits and deductibles
deemed prudent and reasonable, given the nature of the risks, the cost of coverage and the Cih-'s
ability to fund various types and levels of losses.
4
City of Bangor,Maine
Compreliensive Annual Financial Report
For the Year Ended June 30, 1998
In addition, the City self-insures its workers' compensation program and also purchases excess
insurance to limit its financial risk to a maximum of$500,000 per occurrence. Integral to the
proper administration of this program is an annual evaluation to assure the adequacy of funding
to at least an 80% confidence level. For the past six years,the actuarial firm of Liscord, Ward and
Roy has performed this evaluation.
Finally, the City engages the services of a risk management/safety consultant on a contractual
basis. The consultant's responsibilities include administering the City's insurance programs,
identifying safety hazards, assisting City personnel in remedying them, conducting safety training
throughout all City departments, and a variety of other related activities.
Cash Management
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" instruments. It is City policy to
invest all available operating cash so as to first, preserve City assets; second, assure liquidity and
third, earn an optimal market rate of return within these parameters.
The City's investment strategy with respect to operating cash is based on the principle of matchinQ
maturities to cash flow needs, and is constructed around three time horizons, as described below:
■ Medium term liabilities are due within a one to three year period and are funded by
securities maturing on or about the dates when such liabilities mature. Typically,
funds for this purpose are invested in risk-free vehicles, such as treasury bonds and
notes and the securities of select government agencies.
■ Shorter term cash requirements are met with appropriately short term maturities,
once again matched as to maturity. Securities typically used for this purpose are
treasury bills, as well as treasury notes and bonds maturing on or near the dates when
cash will be required. Other short term investments include the obligations of
government agencies, both federally guaranteed and otherwise, and occasionally
"prime" commercial paper for cash needs within 180 days.
■ Finally, overnight investments are executed through a nightly"sweep" of the City's
operating accounts, designed to keep cash as fully invested as possible. Such funds
are invested through the City's depository bank in perfected overniaht collateralized
repurchase agreements, and are insured for up to $2.0 million by MBIA.
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 activelv nor
passively managed. Securities typically remain in portfolio until maturity, unless either liquidated
for cash flow reasons or called by the issuer.
s
City oJBangor,Maine
ComprehensiveA�:nual Financial Report
For tlre Year Ended June 30, 1998
FISCAL 1998 RESULTS
The enclosed general purpose financial statements detail the City's financial results for the fiscal
year ended June 30, 1998. As defined therein, and based upon accepted criteria, the financial
reporting entity depicted by these statements includes only the City, its departments and/or its
funds.
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, Finance, Planning, Economic Development, Public Safety, Health and Vvelfare,
Recreation, Public Buildings and Services, and Education.
The General Fund also provides funding for other organizations and governments, such as the
Bangor Public Library, the Bangor Convention and Visitor's Bureau; Penobscot Count�� and
several private schools within the City. It accounts for well over two thirds of the Cin-'s total
revenues and expenditures,and substantially all its non-enterprise fund revenues and eYpenditures.
Balance Sheet (Elhibit 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.
At the end of fiscal 1998 ("FY98"),the General Fund had $15.4 million in assets. Not all of this,
however, is expected to become available in FY99. Exceptions are the $2.6 million in amounts
due from other funds, which are more properly considered long term in nature. (As discussed
below,the City has set aside $2.1 rnillion in the designated fund balance as a reserve against what
amounts to this "bad debY'.) Additionally, a substantial, but indeterminate portion of taxes
receivable will likely remain uncollected and be carried over to subseGuent years. These amounts
are also more properly considered long term in nature.
Eliminating these uncertainties, cash and those amounts likely to become cash available for
General Fund use during FY99 minimally approximates$10.4 million,representing a�1.2 million,
or 13.7% increase from the previous year, when $9.1 million was available. This chanQe is
predominantly attributable to an increase of $914 thousand in pooled cash and investments
combined with a decrease of$136 thousand in taxes receivable.
Liabilities consist of what the City is,at year end, obligated to pay during the next fiscal year. At
fiscal year end,the General Fund showed$6.3 million in liabilities. This number,however, should
be adjusted to reflect that the $2.2 million in"deferred revenue"is merely an accounting offset to
taxes receivable, and 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 and are discussed below under the caption Long Term
Debt.)
� 6
City of Bangor,Mnine .
Comprel:ensive An�:ual Financial Report
For d:e Year Ended June 30,1998 ,
The amount by which current assets exceed current liabilities equals net current assets, or working
cash. Reflecting the adjustments noted above, at fiscal year end this approximated $6.2 million,
up from FY97's $5.5 million. This is the net amount of the General Fund's expendable resources
which are expected to be, or to become, available for operating purposes in the coming year.
General Fund fund balance represents residual assets, or the difference between all General Fund
assets and liabilities,and may be viewed as the accumulation of operating surpluses over the years.
It has three components:
■ Reserved balances are contractually obligated to be expended in subsequent years
and are thus unavailable 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/undesignated balances are neither reserved nor designated for
subsequent expenditure, and may be appropriated by the Council. It is City policy
to target these balances at 7.5% of the previous year's General Fund expenditures,
adjusted for debt seivice. At the end of FY98,unreserved/undesignated balances had
increased by $287 thousand to $3.9 million,representing just under 7.0%of General
, Fund expenditures. This change has three components, as shown below.
Com�onents of Undesignated/LTnresea-ved Fund Balance Changes
Fisca11998
(Dollars in Thousands)
Beginning unreserved/undesignated fund balance �3,658.2
� Add: �
Excess of revenues over expenditures and other uses, FY98 917.6
Subtract:
Budgeted use of undesignated/unreserved fund
balance (430.6)
Amounts appropriated to designated fund balances as reserves
- , �ainst interfund loans to enterprise funds 2� 00•0�
Ending unreserved/undesignated fund balance $3,945.1
Revenues (Schedule A-2�
The General Fund is primarily supported by t�es, intergovernmental revenues and charges for
services. FY98 revenues were $59.8 million; an increase of$3.3 million, or 5.9% from FY97.
This difference is accounted for by an increase of$1.4 million in tax revenues and $1.9 million
in increased intergovernmental revenues: The proportion of locally generated revenues to the
7
City of Bangor,Maine
Compre/1e�:sive Annual Fi�:ancial Report
For the Year Ended Jur:e 30, 1998
General Fund decreased to 72.9% from 74.7% between FY97 and FY98, providing a small
reversal to a longstanding trend.
General Fund revenues, their respective percentages of total revenues, and both the amount and
percentage change between fiscal 1997 and 1998 are shown immediately below.
General Fund Revenues by Source
FY98 and FY97
(Dollars in Thousands)
FY98 FY97 FY97/98 Chanse
Revenue source Amount % Rev's Amount % Rev's Amount Percent
Taxes $35,069.9 58.6% $33,712.0 59.7% $1,358.0 4.0%
Intergovernmental 16,233.b 27.1 14,322.7 253 1,910.9 133
Charges for services 7,529.1 12.6 7,138.2 12.6 390.9 5.5
Other revenue 1.007.9 1`7 ].339.1 2_4 331.2 2� 4•7�
Totals $59,840.5 100.0% $56,512.0 100.0% �3,328.6 j9%
The more notable revenue categories were as follows:
■ Tax revenues consist primarily of real,personal property and excise taxes. In FY98;
$32.3 million, or 92.1%of tax revenues were derived from real and personal property
taxes, an increase of$1.1 million over FY97. Property taxes and related revenue
accounted for 53.4% of FY98 revenue to the General Fund, down from 54.5% in
FY97. Current collections of property tax revenues continue to perform well,
yielding approximately 95.6°/o in the current year, up from 95.0% in FY97.
■ Intergovernmental revenue is primarily composed of State revenue sharing and
school subsidies. FY98 State revenue sharing was up $340 thousand, or 12.9% over
FY97;the school subsidy increased by$374 thousand, or 4.2%. Other State-supplied
revenue increased by $1.2 million (44.6%). Of this, approximately $708 thousand
was attributable to emergency management funding from both the State and Federal
governments in response to the ice storm which occurred in January, 1998.
■ Charges for services consist of municipal and school charges, both of which were
up over FY971evels; for a combined gain of$391 thousand, or 5.5%.
Ex�enditures (Schedule A-2�
FY98 expenditures were $58.3 million; an increase of�3.1 million, or 5.6% from FY97. As
always, the largest expenditure category was education, at $30.2 million; an increase of$1.3
million, or 4.�% from FY97. The City's portion of FY98 eYpenditures was $28.1 million, up
about$1.8 million, or 7.0%from FY97. City expenditures were for public safety; public services;
health,welfare and recreation; general government services and other agencies and appropriations.
8
City of Bangor,Maine
Compreliensive Annual Financial Report
For the Year Ended June 30, 1998
General Fund expenditures,their respective percentages of total expenditures, and both the dollar .
and percentage change between fiscal 1997 and 1998 are shown immediately below.
General Fund Expenditures by CategorX
FY98 and FY97
(Dollars in Thousands)
FY98 FY 7 FY97/98 Chan�e
Deparhnent Amount %Exp's Amount %Exp's Amount Percent
Education $30,190.9 51.8% $28,935.0 52.4% $1,255.9 4.3%
Public safety 10,362.4 17.8 9,723.0 17.6 6393 6.6
Public services 7,648.0 13.1 6,842.5 12.4 805.6 11.8
General government 3,454.3 5.9 3,378.4 6.1 75.9 2.2
Health, welfare
and recreation 2,680.6 4.6 2,692.9 4.9 (12.3) (0.�)
Other agencies and
aooropriations 3.956.8 6_8 3.636.4 6_6 320.4 8_8
Totals �58,293.1 100.0% $55,208.2 100.0% $3,084.9 �.6%
Notable expenditure categories are as follows:
■ Public safetv expenditures are diyided between police and fire services. The former
were up $2ll thousand, or 4.7%over FY971evels: the latter were up $429 thousand;
or 8.1% .due to increased and retroactive costs associated with newly-negotiated
contracts.
■ Public services consists of the engineering,highway, electrical, forestry, sanitation,
waterfront and cemetery divisions. The $806 thousand(11.8%) increase over FY97
is largely attributable to about $750 thousand in expenses incurred as a result of the
; January ice storm. As mentioned earlier, State and Federal emergency management
reimbursement was received for a substantial portion of these additional
expenditures, and are reflected as increased General Fund revenues .
■ Other agencies and a�,propriations consist of County taxes, private school
subsidies, the Bangor Public Library, Bangor Convention and Visitors Bureau, and
debt service. The $320 thousand (8.4%) increase in these categories was primarily
due to tax increment financing payments of$369 thousand, which were partially
offset by decreases in debt service and contingency expenses.
9
City of Bm:gor,Maine
ComprehensiveAnnual Financial Report
For tlee Year Ended June 30, 1998
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 eight funds generated $21.6 million in charges for services,
and an operating profit, before depreciation, of$6.4 million in FY98; up slightly from $21.2
million and $6.3 million, respectively, in FY97.
Bangor International Airport:
At$10.0 million, operating revenue at the airport increased by$324 thousand, or 3.3%. Operating ,
expenses before depreciation and amortization (hereinafter refened to collectively as
"depreciation") increased $179 thousand, or 2.5% from FY97. The airport's net operating loss
(including depreciation) improved by $167 thousand, and operating cash flow was $3.5 million,
up $510 thousand (16.9%) over FY97.
Net income, after adding back depreciation on assets acquired with contributions (hereinafter
refened to as "depreciation add back"), improved by $1.2 million, or 89.7%, to $2.5 million. At
fiscal year end; retained earnings stood at$34.4 million; cash and equivalents at$8.0 million. The
settlement of a construction-related lawsuit in favor of the City provided $875 thousand in cash
to the airport in FY98.
Sewer Utility Fund:
Operating revenues were off $64 thousand, or 1.0%, but remained in the $6.2 million range.
Operating e,cpenses before depreciation increased$139 thousand,or 5.6%,to $2.6 million;the first
increase in three years. Net operating income was $2.1 million, which represented an 8.2%, or
$188 thousand decline from FY97. Operating cash flow was $3.8 million, representing a �348 `
thousand (8.4%) decline from�Y97. Net income, after depreciation add back, was $1.2 million,
a decline of$154 thousand, or 11.6%from FY97. Retained earnings at fiscal year end were �13.�
million, cash and equivalents were $�.7 million.
The Sewer Fund operates on a planned cash flow deficit basis, using its cash to cover a portion of
its debt service expenses. The utility's cash is the result of several interlocal agreements reQarding
the construction costs of the City's secondary wastewater treatment plant. This cash provides a
cushion against further rate increases which might be necessitated by the capital projects required
pursuant to a consent decree with the U.S. Environmental Protection Agency ("EPA"). Current
projections indicate that, as this cash is exhausted,rates may ultimately have to be raised in small �"
increments to cover cash flow deficits projected to begin in about 2005. A more detailed
discussion of the sewer utility and its innovative responses to mandated projects is presented under
the Departmental Focus section, further below. .
10
City of Bangor,Maine
Comprehensive Arrnual Fi�:ancial Report
For tlre Year Ended June 30, 1998
City Nursing Facilit�
Operating revenue declined $16 thousand (.6%) due to continued low occupancy rates, but
remained in the $2.6 million range. Operating expenses before depreciation decreased by $34
thousand (1.2%), to $2.8 million. The net operating loss at the facility decreased 4.2%, to $330
thousand. Operating cash flow was a negative $290 thousand, a slight improvement from last
year's negative $306 thousand. The facility's net loss, after depreciation add back, was $130
thousand. This brought retained earnings to a negative $661 thousand. Ending cash and
equivalents was minimal, at$12 thousand.
In FY98,the facility required both a General Fund subsidy of$205 thousand and an interfund loan
of $162 thousand, a slight improvement from FY97's $156 thousand and $249 thousand,
, respectively. 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
$851 thousand. This has been fully reserved for in the General Fund.
Early in FY98, the City Council accepted the recommendation of a consultant to restructure the
� facility's operations so as to more closely reflect the industry in which it operates and the market
� it serves. Among other things, these plans will require borrowing in the amount of about $400
thousand,with the expectation that the facility will achieve "break even" status within five years.
Since that time, other information has been developed which indicates that some $2.1 million in
' physical plant improvements will be required over the neYt five to seven years. The Council is
currently evaluating its options with respect to the facility's continued operation and ownership.
Parking Fund:
The Parking Fund incurred its expected loss, although its performance did improve. Operating
revenues increased 3.7%to$593 thousand,while operating expenses before depreciation increased
2.9%, to $358 thousand. As a result, the operating loss improved by $13 thousand, to $62
thousand.
Operating cash flow continued to improve, and at$327, was up almost 40.0% from FY97's $234
thousand. Net income after the depreciation add back was $69 thousand which, when added to
retained earnings, resulted in a first-ever positive year end fund balance of just under seven
hundred dollars. Ending cash and equivalents were $287 thousand; up from last yeaz's $1�0
thousand. The General Fund's contribution, primarily for debt service, was $372 thousand, up
slightly from FY97's $364 thousand.
Bass Park:
The Bass Park complex generated$1.1 million in operating revenue in FY98, down$50 thousand,
or 4.2% from FY97 levels. Operating expenses before depreciation increased $49 thousand, or
3.5%, to just over $1.4 million. On an operating basis (without depreciation), the complex lost
approximately $295 thousand (against a$197 thousand loss in FY97), and overall showed a loss
of$136 thousand after a General Fund subsidy of$312 thousand; this versus a net loss of$149
thousand in FY97. Year end retained earnings declined to a negative $1.2 million. EndinQ cash
and equivalents was minimal at$2 thousand. y
11
City of Bangor,li�laine
Comprehensive Annua!Financial Report
For the Year Ended June 30, 1998
On an operating cash flow basis, the complex lost $265 thousand, or$76 thousand more than in
FY97. The General Fund was required to provide support in the amount of $345 thousand
• consisting of an operating subsidy of$312 thousand and a cash infusion of$33 thousand. This
represents a slight improvement from FY97, when a total of $358 thousand in General Fund
support was required.
By fiscal year end,the complex had accumulated$1.3 million in cash flow loans from the General
Fund. As is the case with the City Nursing Facility,this amount has also been fully reserved. Also
like the City Nursing Facility, efforts are underway to improve the complex's financial
performance. These were described in our 1997 CAFR in the Departmental Focus section.
Munici�al Golf Course: �
The golf course continues to operate at a net surplus, on both a net income and cash flow basis.
At $691 thousand, operating revenues were up 17.3%, or $102 thousand over last year, and
operating expenses were $344 thousand, up 12.5%, or $38 thousand over FY97.
Operating income was $275 thousand; up from $218 thousand in FY97. Net income was $288
thousand,and operating cash flow was$345 thousand,up from last year's results of$222 thousand
and$284 thousand,respectively. Ending retained earnings were$1.2 million;cash and equivalents
were $467 thousand. In accordance with City policy, $144 thousand, or half of the golf course's
net income (not its cash) was transferred to reserved retained earnings for future improvements;
the most immediate of which is the installation of an irrigation system, planned for fiscal 1999.
Park Woods Complex:
Net income after the depreciation add back was$34 thousand, after giving effect to a$39 thousand
operating transfer from the General Fund. This represented a significant improvement over FY97,
when net income was $19 thousand. Operating expenses before depreciation increased slightly
to $272 thousand. Net operating cash improved to a negative $10 thousand from neaative �29
thousand in FY97. Retained earnings closed the year with an $80 thousand deficit; cash and
equivalents were minimal at just under one thousand dollars.
Economic Development Fund:
Established in FY97,this fund is designed to provide a self-supporting, stable funding source for
economic development projects throughout the City. Its revenue is derived primarily 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 its use. The second is a 28 acre riverfront parcel bought
from the Maine Central Railroad.
In FY98,this fund generated $174 thousand in operating revenue. Its operating expenses before
depreciation were $69 thousand; net operating income was $77 thousand. Cash flow from
operating activities was $103 thousand. Retained earnings at year end was $134 thousand; ending
cash and equivalents was $15 thousand.
12
+ City of Bangor,Maine
Co»iprei:ensiveAnnual Financial Report
For tJ:e Year Ended June 30, 1998
LONG TERM DEBT
(Section III,Note 9�
At fiscal year end, the City had long term debt totaling $66.6 million; $61.4 million of which is
• full faith and credit, general obligation debt. Of this, $33.1 million is fully self-supporting, and
is paid from user charges from the wastewater treatment plant and Bangor International Airport.
� Most of the rest of this debt is for schools ($12.8 million) and the General Fund ($9.4 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($3.9 million),Bass Park
($1.4 million) and the City Nursing Facility ($363 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 were $806
thousand and $148 thousand, respectively.
�During FY98, the City issued $11.2 million in new general obligation debt ($7.5 million
attributable to the General Fund), and retired $8.9 million ($4.6 million of which was General
Fund debt) . General obligation debt service payments due in FY99 aggregate to$7.7 million, $2.8
million of which represents interest.
The City..'s general obligation debt received Moody's "Aa2" rating in September, 1997. It had
previously been rated "Aa" since the 1940's.
DEPARTMENTAL FOCUS:
SEWER UTILITY FUND
The City owns and operates a secondary wastewater treatment plant, five pumpina stations and
some 190 miles of sewer lines which, when taken together, form the core of its sewer utilin�; one
of eight enterprise funds. Beginning in 1968, the City processed its wastewater through a primary
treatment facility, discharging effluent into the Penobscot River.
In the mid 1980's, the EPA and the Maine Department of Environmental Protection found this
unsatisfactory with respect to the Penobscot's resultant water quality. As a result, the City was
required,under the terms of a consent decree with the EPA, to construct and maintain the present
. secondary treatment plant. In addition,the decree required the City to make ongoing investments
in its sewer system over a 15 year period in order to separate the flow of household waste and .
storm water. These are referred to as the "Combined Sewer Overflow�', or'`CSO"projects.
As a result, the City has issued$41.4 million in treatment plant and CSO related debt since 1989,
of which $33.1 million remained outstanding at June 30, 1998. Further, the utility's annual debt
service requirements are projected to range between $3.5 and $4.0 million through at least 2006,
as some $18.0 million in CSO projects remain to be financed.
13
City of Bangor,Maine
Compreliensive Annua[Financial Report
For tl:e Year Ended Ju�te 30, 1998
In anticipation of these large capital and resultant debt service requirements, the City began
systematically increasing its sewer rates in July of 1989, when it imposed the first of ten semi-
annual 10%rate increases which continued through January, 1994. Another round of semi-annual
increases began in July of 1994, albeit at a 7.5%pace,and lasted through July of 1995. Rates were
increased yet again by 2.5% in January, 1996. Altogether, sewer rates increased 330% over the
six and a half year period.
Since January of 1996, no further increases have been required. This is attributable to three
principal factors:
■ In fiscal 1996 and 1997, the City received $2.6 million as capital contributions
from two neighboring communities which had previously agreed to purchase
portions of the treatment plant's capacity. This cash, in addition to $400 thousand
received as settlement of a lawsuit has been used to defray the steadily increasing
debt service costs resulting from the ongoing CSO program.
■ In fiscal 1997, the EPA approved the use of$6.0 million in grant funds for CSO
projects. The EPA had previously authorized these funds for a sludge compostina
initiative. The funds are now being made available on a �5/45 match basis for
decree-mandated projects. Thus, anticipated increases in debt service require�nents
have been substantially mitigated through fiscal year 2002.
■ Substantial savings froni project budgets have been achieved by the City's
Engineering staff through their innovative design techniques. Through the end of
FY98, these savings amount to just over $4.2 million, with an additional savings
of almost $5.4 million projected for a major project in FY99. These innovations
further ameliorate the cost pressures of increased borrowing.
With regard to this last point,the Engineering Department richly deseives the official recognition
of its design accomplishments that it has received from a variety of peer and other groups.
Additionally, it deserves (and occasionally receives) the gratitude of Bangor's rate payers for
actively seeking out and finding ways to ease the financial burden imposed by the consent decree.
ECONOMIC BASE, CONDITION AND OUTLOOK
Bangor is a commercial, industrial and residential community with some pronounced rural
characteristics. The City's land area 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.
14
City of Bangor,Maine
ComprehensiveAnnual FinartcialReport
For ll:e Year Ended June 30,1998
Em�loyment Characteristics
Bangor has a stable and diverse economic base. Major employers include a mix of health care,
educational,professional,retail,manufacturing,and governmental entities. As a result,the Bangor
MSA's unemployment rate is typically lower than both United States and the State of Maine's.
The Bangor MSA labor force grew at a faster rate than the State's between 1991 and 1997 (ie:,
5.9%versus 2.0%). During the 1992-97 period,Bangor's labor force grew 5.7%while the State's
labor force declined by .2%. The Bangor MSA's September, 1998 unemployment rate of 2.3 %
was 1.0% lower than Maine's rate and 2.1% lower than the national rate. The MSA's September
rate was down from 3.4% one year earlier.
On a year-over-year basis,the MSA's September, 1998 employment level was 49,100; up 1,400,
or 2.9%. State employment, on the other hand, remained level in the same period, and national
employment increased by only 1.5%.
, Transportation
Convenient access to Bangor is provided by Interstates 95 and 395. The former bisects the Cit_y,
and the two intersect within its borders. U.S. Routes lA, 2 and State Routes 1�, 100, 221 and 222
all traverse the City. Bangor is served by two railroads and 21 trucking firms.
Bangor International Airport (BIA), located within the City, serves about a million passenQers
� annually. Located on the heavily traveled great circle route to Europe, the airport provides both
domestic and international air service for the entire region. It handles 33 scheduled dailv fliahts
to Boston,New York,Philadelphia, Atlanta and Cincinnati. The airport is nationally recoanized
as a successful military base conversion, and now represents approximately 10% of the reaion's
total economic activity. BIA has the second longest civilian runway on the east coast; and is an
alternate landing site for NASA's Space Shuttle missions.
Recent activity at BIA includes the following:
■ Business EYpress has completed the relocation of its maintenance operation to
Bangor, adding nearly 30 new employees. Their original plans called for the
leasing of one hangar; they have almost doubled that space requirement.
■ Finnair recently began scheduled service to Europe, with two flights per week.
■ Federal E,cpress recently completed an expansion of their Bangor facilities,opening
a 61,000 square foot facility which replaced its previous 15,000 square foot
building.
■ Airborne Express is constructing a 9,000 square foot facility to accommodate its
Bangor operations.
IS
City of Bangor,Maine
Comprehensive Annual Finartcial Report
For tlie Year Ended June 30, 1998
Retail Trade
Bangor is the second largest retail market area in Maine, after Portlund. 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 serves a huge geographic area,with a total population of 3.1 million. Bangor
is the closest United States metropolitan area to Nova Scotia,Prince Edwazd Island,Newfoundland
and New Brunswick. Residents of these areas frequently visit and shop in the Bangor area.
The Bangor Mall area continues to add commercial space to its already sizable stock. In 1996, a
new, free-standing 25,000 square foot Borders Books & Music opened. The company is new to
the Bangor area. In 1997,the Mall area added 137,000 square feet of commercial space. In 1998,
a 55,000 square foot addition was added to the mall, and a new 120,000 square foot Filene's store
was constructed. Additionally, 13,000 square feet of restaurant space is beinQ developed in that
area. Total retail space in the mall area is approaching three million square feet. In its 20 year
history, the Bangor Mall area has added, on average, moi•e than l OG,000 square feet of retail space
annually.
Bangor's retail sales remain strong. Throuah September, 1998, total taxable retai3 sales were
running 6.6% ahead of last year; in line with total growth for the State as a whole. In contrast,
Portland's taxable sales declined almost .1% over the same period.
In calendar 1997, Bangor's retail sales �rowth of 4.0% eYceede�� the State's grow-th of 3.7%.
Bangor's taYable sales grew by 11.6%between 1995 and 1997. In contrast, the State's comparable '
growth was only 8.7%. Since 1991, the trough of the last regional recession, Banaor's -�.7%
annual growth in taxable retail sales has out paced both the State (4.4%) and Penobscot County
(�.7%).
With less than three percent of the State's population, Bangor's share of the State's retail sales has
consistently been in excess of 7% since 1988. Over the same period, Bangor's share of County
sales has grown significantly, to just under 60%, as shown in Table 26.
Other Services
With four hospitals, Bangor is a re�ional center for health care services. With four commercial
and 1 public television station, 12 radio stations and New England's 4th largest daily newspaper,
Bangor is also the media and communications hub for the northern and eastern part of the State.
The Bangor MSA is also a regional center for higher education, largely due to the presence of the
principal campus of the University of Maine. Bangor itself is home to a number of other
institutions of higher learning, including Husson College, Bangor Theological Seminary and
Eastern Maine Technical College. All in, some fifteen thousand students in the Ban�or MSA are
enrolled in higher education.
16
City of Bangor,Maine
Compreltensive A�tnual Fi�tancial Report � ; �
Fo�the Year Ended June 30,1998 "
Recent Events and Trends
For several years,building activity has been robust,suggesting confidence in the local and regional
economy. For example:
■ In 1995, General Electric initiated its third expansion in as many years; a $35
million investment in its turbine manufacturing facilities located in the area of the
Bangor International Airport (BIA).
■ In 1996, Eldur Corporation moved its new manufacturing operations into a 33,000
square foot building near BIA. This German-Swiss company chose Bangor as its
headquarters for a foray into the North American market. The company
manufactures fine wire components for the illumination industry.
■ In 1997, a $10 million supermarket project was developed on a former industrial
site on Main Street.
■ Major health care facility expansions have been completed, and others are still
underway at St. Josepll's Hospital and by affiliates of Eastern Maine Health care.
Construction permits have been issued for projects totaling $14 million .
■ Site work has begun on a $9 million, 30,000 square foot eye care facility in the
mall area, and a 9,000 square foot medical facility is also being developed in the
� same locale.
In Downtown Bangor, revitalization results are noticeable:
■ An$8.5 million renovation/expansion of the Bangor Public Library was completed
in 1997.
■ A 34-unit elderly housing complex was created in part of the formerly vacant
Freese's building. The same developer has been aranted an option to convert the -
remainder of the building to mixed uses,including 42,000 square feet of congregate
housing, and 28,000 square feet of office and retail space.
■ Cadillac Mountain Sports, a well-respected outdoor goods retailer, is anchoring
redevelopment of the formerly vacant W.T. Grants building, a downtown
landmark.
■ The City continues to formulate infrastructure improvement and remediation plans
fundamental to the development of 28 acres of prime Penobscot River waterfront
property that it acquired in 1996.
■ Bangor Savings Bank, a major community bank, has invested over $1,000,000 to
restore and enhance its flagship downtown office.
1�
City of Bangor,��lai�re .
Conrprel:ensive Annual Financial Report
' For the Year Ended June 30,1998
�
■ In a historic district on Hammond Street, existing buildings have been rehabbed
and leased for retail, office and residential use. A new $1.7 million project,
spearheaded by the same developer, is underway in that district.
Industrial Park developm.ent continued at a respectable pace in 1997, as well. In addition to the
recently-completed Federal Express and Airborne Express projects mentioned earlier:
■ In Target Industrial Circle, over 40,000 square feet of building additions were
completed in 1997.
■ A new 16,500 square foot catering facility was built in the Bangor International
Airport Commercial Industrial Area.
A variety of smaller projects were completed in 1997 and several significant projects are in the
planning and construction stages. On Union Street, a gateway to the City, a 32,500 square foot
complex was constructed for financial service and retail businesses. Also on Union Street, Brooks
Pharmacy recently built and opened a 10,800 square foot facility. On Broadway, another City
gateway, Rite Aid recently built a.nd oper.ed a 13,000 square foot facility.
CURRENT AND FUTURE INITIATIVES
The City has both long and short term projects and initiatives. Many of the projects first identified
in the City's 1997 CAFR are continuing. As these are either completed or become more
routinized,r�ew priorities are identified and pursued. Initiatives that were identified in the City's
1997 CAFR and their present status are as follows:
■ Waterfront develonment: The City continues to plan for the development of its -
recently-acquired 28 acres of prime river frontaae. The parcel is bracketed by the
Bass Park Complex(one of the City's more significant economic engines), and the
downtown area, where development and redevelopment efforts are currently bein�
focused (see below). These spatial relationships lend themselves to recreational
and commercial development; which is being actively pursued��ith both local and
non-local developers. The City has also retained the services of a consultant to
more fully flesh out and help execute its plans.
■ Economic develo�ment strategX: Economic development remains vital to the
City. The City continues to work toward pulling the often disparate efforts of
various groups and individuals into one cohesive whole; and enhancing their
effectiveness. This is a longer term effort,which requires careful coordination and
planning, much of which has taken place.
18
City of Bangor,Maine
Comprehe�rsive Annual Financial Report
For tlre Year E�:ded Ju�:e 30, 1998
■ Intra-city communications: The City is completing the installation of a new
communication system that will effectively tie councilors and staff more closely
together, and streamline many aspects of managing the City's affairs. This is, in
reality, the first step in more fully involving citizens in City affairs through the
increasingly wider dissemination of information and by making government and
its procedures more widely and easily accessible.
■ Infrastructure and service improvements: Bangor continues to build upon its
"quality of life"strengths. Infrastructure inveshnent,both to enhance this quality,
and to support economic growth, remains an important priority. Accordingly, the
City continues to be acutely attentive to the condition of its streets, sidewalks,
public transportation,waste disposal and other systems so as to maintain Bangor's
livability and its attractiveness to firms and individuals seeking to locate here. By
their nature, these are ongoing projects.
In this regard, Bangor's schools continue to be ranked among the best in the State,
and Bangor offers the lowest cost of living of any metropolitan area in New
England. The City was recently ranked the best of 17 metropolitan areas with
populations under 100,000 in overall livability, and has been favorably compared
to 350 other metropolitan areas across North:lmerica, particularly with respect to
its low crime rate and extraordinary recreational opportunities.
■ Broaden the revenue base: One of the persistent financial weaknesses of Maine
• municipalities remains their reliance on the property tax as the primary source of
revenue. This is not merely a diversification issue, but also one of providing the
financial wherewithal to undertake longer term, economic development projects.
The City has developed and is implementing a strategy to lobby the State
legislature for authority to levy taYes that will allow it and other Maine cities more
financial flexibility.
Newly-developed initiatives, or those to which an new emphasis is being applied include the
following: •
■ Neighborhood preservation and improvement: The City has consistently
pursued policies designed to preserve and improve its neighborhoods. These
efforts began in the 1960's under the Urban Renewal program, when the City
undertook a systematic effort to identify and improve neighborhoods under stress.
These efforts have continued through such mechanisms as a residential
rehabilitation program, funded through the Community Development Block Grant
program, as well as a variety of local initiatives, as contained in the. City's
Comprehensive Plan which was adopted in the early 1990's and revised last year.
19
City of Bangor,Maine
Compreliensive Annual Finmicial Report .
For tlie Year Ended June 30,I998
A major component of this initiative is the ongoing review of City neighborhoods
to determine their present conditions and evaluate what, if any, intervention
strategies aze necessary and appropriate to protect and preserve them. This effort
includes gathering detailed information on specific neighborhoods in terms of their
assessed values, ratio of multi-family to single family structures, income and
demographic data, and police and code enforcement activity.
Once this information has been gathered and summarized,areas will be targeted far
a more detailed review as to structure condition and public infrastructure. The City
will also review the long-term effect of the various intervention strategies that have
been pursued over the years to address neighborhood problems.
On the basis of these evaluations and their resulting data, the City will develop
strategies to address those neighborhoods under the greatest stress. These may
range from enhanced code enforcement efforts, through infrastructure
improvements, to targeted residential rehabilitation, all geared toward stabilizing
and improving those areas found to be deteriorating on either a physical or
socioeconomic basis.
■ Downtown develo�ment and redevelopment: The City continues to place a high
� priority on downtown development and redevelopment. Over the past several
years, the City has become more aggressive in this area and has acquired several
major buildings for redevelopment purposes. Major efforts in the coming year will
focus on the redevelopment of the Main Street portion of the Freese's Building,
improving and finding additional uses for the Grant's Building, supporting private
development efforts, and eYpanding the availability of public parking to support
downtown businesses.
The Freese's Building, a former department store and the largest structure in the
downtown area, is currently of the highest priority. Several years ago, the rear
portion of this structure was redeveloped into a residential complex for low and
moderate income elderly individuals. The Citv is working with the developer of
the building's rear portion to redevelop the balance as a mixed use project. The
upper floors will contain a low and moderate income assisted living facility. The
lower three floors will be used for office, retail, or non-profit purposes. In this
vein, a portion of this space may be occupied by a museum or gallery designed to
bring additional visitors into the downtown business district.
The Grant's Building, a downtown anchor and home of another department stare,
has been purchased by the City. One floor of the building has thus far been
returned to retail use. The City is improving the infrastructure of the building and
seeking potential tenants for the upper floors.
20
City of Bangor,Maine
Comprehensive Annual Financial Repo�t
For tlTe Year Ended June 30, 1998 ,
The City is also providing partial support to the renovation of the former Bangor
Furniture buildings located on Hammond Street. This support includes a t�
increment financing program as well as a rehabilitation loan. These buildings are
being redeveloped into a mixed use project including retail, office, and residential
space.
Finally, the City has undertaken a number of projects based on the results of a
comprehensive review of downtown parking needs. This resulted in a number of
immediate changes, including a downtown courtesy ticketing program which
waives parking fines for individuals who infrequently receive parking tickets; a
two-hour free parking program in the City's parking garage for shoppers and other
short term visitors; and changes in the time limit for on street parking areas.
Over the coming year,the City will undertake a number of projects aimed at longer
term downtown parking needs. One such project includes the purchase and
demolition of a dilapidated properiy to allow expansion of a public parking lot
serving the larger,newly renovated Bangor Public Library and the nearby Federal
Building. Another project is the development of a new parking lot adjacent to the
Central Police Station, which will serve nearby County and State facilities as well.
■ Promotion of an east/west highwav: 1�-laine is the only state among the
contiguous 48 states without a major east/west arterial. This fact, combined with
the natural gravitation of the State's political and economic power to its southern
portion, contributes to sluggish growrth in the State's northern hal£ Further, Maine
can be viewed much as a peninsula, surrounded on three sides by Canadian
provinces. As such, it sits astride the shortest distance between Canada's
easternmost provinces and the cities of Quebec and Montreal.
Maine has long understood the importance of adequate roads in fostering economic
development and activity. I-95, which stretches from Maine's southern border to
Houlton, forms the corridor alonQ which most of the State's economic activity
occurs. The potential for similar development along an east/west corridor,
particularly given the relative time and economic advantage the route would
provide to intra-Canadian commerce, is substantial. Bangor, in particular, is
ideally situated and equipped to act as a transhipment point for such commerce.
Current east/west routes through Maine are essentially rivo-lane roads, many of
which were built for vehicles of an era long past, are in generally bad repair, and
are wholly inadequate for the intensive travel patterns suggested by the State's
location. For many years, the development of a limited access, east/west highway
has periodically surfaced, only to be foregone for projects deemed more pressing.
Present conditions within the State and at the national level seem to favor the
development of this project at this time. Funds have been allocated by both levels
of government to study the route's financial and economic feasibility, and there
21
City of Bangor,Mai�te
Comprehensive A�uival Financial Report
For tlie Year Ended June 30, 1998 •
appears to be growing support among the State's political establishment for its
construction. Needless to say, the City is very interested in seeing this project to
its potential conclusion.
Accordingly, the City has begun working closely with the Governor's office, State
agencies and legislators, Maine's Congressional delegation and community
representatives to promote this project. It has provided staff and other support to
this effort, and intends to continue such support. .
CONCLUSION
Overall the City of Bangor's financial position is sound. Our tax collection rate is strong and
generally improving, our control of expenses is excellent and our procedures and processes
regarding City assets work well. Further, we are both liquid and prudently invested, we have
adequate insurance and reserves to meet any reasonable unforeseen events, and w�e face no
impending demands upon our financial resources.
It is our sincere hope that this document meets the informational �eeds 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. In addition, it is intended
to provide a means by which interested parties can more fully assess the City's financial well
being. We hope that this has indeed been accomplished.
This document has also been prepared in accordance with the standards set by the Government
Finance Officers Association of the United States and Canada (GFOA) with the intent of
submitting it for consideration under their Certifrcate of Achievement for Excellence in Financial
Reporting program.
GFOA awarded its Certificate to the City of Bangor for its first Comprehensive Annual Financial
Report, which was produced for the fiscal year ended June 30, 1997. The Certificate is a
prestigious national award recognizing conformance with the highest standards of state and local
govern.tnent financial reporting.
In order to be a�varded a Certificate, a government must publish an easily readable and efficiently
organized comprehensive annual financial report, the contents of which conform to program
standards. The CAFR must satisfy both generally accepted accounting principles and applicable
legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe this CAFR
continues to conform to the Certificate of Achievement program requirements and exacting
standards.
�z
City of Bangor,Maine
Compre%ensive Annua!Financial Report
For tlte Year Ended Ju�:e 30, 1998
� 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 Deputy
Treasurer,respectively. They are primarily responsible for preparing the City's general purpose
financial statements and the accompanying exhibits, schedules and notes.
Additional thanks is extended to Rod McKay, Stan Moses, John Lord and Sally Burgess, of the
City's Community and Economic Development Department, for their research and technical
support; Jim Ring and John Murphy of the Engineering Department for their assistance in
understanding the esoteric world of wastewater management; Rhonda Jordan, formerly of
Assessing, for her help in compiling and managing tax base data, and Dan Wellington, Mark
Marquis and Jan Theriault for their assistance in identifying cunent construction projects.
Finally, our sincerest thanks is once again extended to the Bangor City Council and City Manager
Ed Barrett for their continued support of our efforts to further develop and demonstrate what our
department is capable of accomplishing, given the proper resources.
. _Respectfully submitted,
. . •
, � �--
- Ronald I. Heller
Finance Director
23
Citv of Bangor, Maine
Awards Received and Reco�nition Bestowed
1993-1998
Government Finance Officers Association of the United States and Canada, 1998
Certificate of Achievement for Excellence in Financial Reporting For the City's
Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 1997
Maine Department of Environmental Protection, 1998
Certificate of Achievement to John Murphy, Assistant City Engineer for
"...his creative...approach to CSO reduction...and for protecting and improving the waters in the
State of Maine."
Governor of the State of New Hampshire, 1998
Commendation Awazded to the Bangor Fire Department for
Outstanding Service to the State of New Hampshire
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 Award, 1997
To Bangor Parks and Recreation Department
For Co�unity Service for the Bangor Playground
Maine School Superintendents Association, 1996
Superintendent of the Year Award to
James Doughty, Bangor Superintendent of Schools
Continued on Following Page
24
Citv of Ban or,Maine
Awards Received and Recognition Bestowed
1993-1998
Co�tinued '
Consulting Engineers of Maine, 1996
Honor Award for Engineering 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 Bangor
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 t�'ater Pollution Control Association, 1993 �
Alfred E. Peloquin Award to John Murphy, Staff Engineer for Significant Contributions to the
Wastewater Treatment Field
25
Certificate of
Achievement
� for Excellence
in Financial
F�eporting
Presented to
City of Bangor,
Maine
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 1997
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
�E o�,� n
� "'e�" /�
� �,,,� s President
i� &:AI, �,ti
�MICA4� �`�
'���/��
Executive Director
CITY OF BANGOR - ORGANIZATIONAL CHART
CITIZENS
OF
BANGOR
CITIZEN CITY CITIZEN
COMMISSIONS COUNCIL BOARDS
ASSESSING CITY CITY CITY
DEPARTMENT SOLICITOR MANAGER CLERK �
ANIMAL ELECTIONS
CONTROL
LICENSES
PARKS AND ADMINISTRATIVE COMMUNITY CITY NURSING •
BASS PARK RECREATION FINANCE SERVICES AND ECONOMIC FACILITY �
DEVELOPMENT
PARKS RECREATION AUDITING TREASURY RESOURCES RELAB I�ONS P�NNING EV�ELOPMENT ADMINIS7RA710N NURSING
CIVIC CENTER UDITORIUM MAINTENANCE
HANNESS STATE 60LF RISK INFORMATION FLEET THE ECONOMIC PARKING HOUSEKEEPING
RACING COURSE MAINTENANCE BUS DEVELOPMENT MANAGEMENT DIETARY AND
FAIR MANAGEMENT SERVICES MAINTENANCE
MANAGEMENT CENTRAL CODE
PURCHASING SERVICES ENFORCEMENT
AIRPORT POLICE FIRE HEALTH AND PUBLIC
WELFARE SERVICES
AVIATION MAINTENANCE DETECTIVE PATROL F�RE DMINISTRATION GENERAL NURSING OPERATIONS
SERVICES FIGHTING RELIEF SERVICES ENGINEERING AND
MAINTENANCE
ADMINISTRATION ADMINISTRATION SERVICES FIRE DENTAL GRANT
PREVENTION CLINIC PROGRAMS WASTEWATER SEWER
BUREAU TREATMENT MAINTENANCE
PLANT
ATERFRONT
EXEC6.PM6
?/98
City of Bangor, Maine
Elected Officials and Principal Administrative Officers
At June 30, 1998
City Council
Timothy C. Woodcock, Mayor
Michael W. Aube Joseph M. Baldacci
Michael R. Crowley Nichi S. Farnham
David J. Leen Gerry G.M. Palmer
Joh.0 M. Rohman James M. Tyler
Ci 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
Sangor School Committee
Martha G. Newman, Chairman
Phyllis M. Shubert, Vice Chairman
Susan A. Carlisle Suzaime M. Cox
Arthur G. Eaton, Jr. Scott E Lary
Rachel G. Leen
School Committee Staff
James Doughty, Superintendent of Schools
Dr. Robert Ervin, Assistant Superintendent of Schools
Alan F. Kochis, Director of Business Services
29
Financial Section
RUNYON
KERSTEEN
OUELLETTE
Independent Auditor's Report
Certif ied ciry council
PUbI1C City of Bangor,Maine:
Accountants
We have audited the accompanying general purpose financial statements of the City of Bangor,Maine,as
G1enn s.xersceen of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial
Carl N.Ouellette statements are the responsibility of the City of Bangor,Maine's management. Our responsibility is to
Joha J.sulli�an express an opinion on these general purpose financial statements based on our audit.
Kathleen B.Tyson
nlice M.xarris We conducted our audit in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain
Alexander M.Runyon reasonable assurance about whether the general purpose financial statements are free of material
Of Counsel �sstatement. An audit includes examining,on a test basis, evidence supporting the amounts and
disclosures in the general purpose financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall general
purpose financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion the general purpose financial statements refened to above present fairly, in all material
respects,the financial position of the Cin�of Bangor,Maine as of June 30, 1998,and the results of its
operations and the cash flows of its proprietary and nonexpendable trust fund types for the year then ended
in conformiry with generall��accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements
taken as a whole. The combining and individual fund and account group statements presented on
Schedules A-1 through G-2, are for purposes of additional analysis and are not a required pazt of the
general purpose financial statements of the City of Bangor,Maine. Such information has been subjected to
the auditing procedures applied in the audit of the general purpose financial statements, and in our
opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken
as a whole.
The information in the statistical secuon has not been subjected to the auditing procedures applied in the
audit of the general purpose financial statements and, accordingly, we express no opinion on such data.
As discussed in the notes to general purpose financial statements, the City adopted the provisions of
Governmental Accounting Standards Board Statement No. 31 entitled�ccounting and Financial
Reporting for Certain Investments and for External Investment Pools during the�ear ended June 30, 1998.
In accordance with Government Auditing Standards,we have also issued a report dated October 20, 1998
on our consideration of the City of Bangor,Maine's internal control over financial reporting and our tesu
of its compliance with certain provisions of laws, regularions,contracts and grants.
`�.s� 0�.��.
October 20, 1998
South Portland, Maine
20 Long Creek Drive
South Portland,ME 04106
207-773-2986 or 1-800-486-1784
FAX 207-772-3361 or 1-800-486-1785
h t tp://w ww rko-cpas.com
;
�
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amM "
COMBINED FINANCIAL STATEMENTS OVERVIEW
("Liftable" General Purpose Financial Statements)
These basic financial statements provide a summary overview of the financial position of all funds and
account groups and of the operating results of all funds. They also serve as an introduction to the more
detailed statements and schedules that follow.
���
�.;� .
,.
, ; � , . ,.
I
,
'
'
City of Bangor, Maine
Combined Balance Sheet
All Fund Types and Account Groups
June 30, 1998
Governmental Fund Types
Special Capital
General Revenue Projecu
[�ssets and other debits
Assets: '
Cash on hand $2,962 $250 -
Equity in pooled cash and �
investments 1,977,346 36,507 37,855
Investments 5,497,579 35,485 -
Receivables:
Taxes 2,354,235 - -
Accounts 884,816 6,820 -
Loans - 3,939,516 -
Deferred special assessments - - 30,130
Due from water district - - -
Due from other funds 2,644,560 - -
Due from other governments 1,685,145 459,537 304,794
Inventories, at cost 284,158 - -
Prepaid items 26,631 16,108 -
Properry, plant and equipment - - -
Investment held by bond trustee - - -
Deposits - - -
Other assets _ 7,471 - 1,657,950
Other debits:
Amounts available for self insurance - - -
Amount to be provided for retirement of general
long-term debt payable - - -
Total assets and other debits $15,364,903 $4,494,223 $2,030,729
The notes to the financial statements are an integral part of this statement.
Continued on facing page
31
Exhibit i
Proprietary Fiduciary
Fund Type Fund Type Account Groups
General General Totals
Trust and Fixed I.ong-Term (Memorandum
Enterprise Agency Assets Debt Only)
$4,373 - - - $7,585
1,552,307 240,017 - - 3,844,032
20,397,892 1,370,243 - - 27,301,199
- - - - 2,354,235 .
3,228,465 420 - - 4,120,521
- 52,776 - - 3,992,292
115,031 - - - 145,161
149,474 - - - 149,474
- - - - 2,644,560
526,472 - - - 2,975,948
113,184 - - - 397,342
39,338 - - - 82,077
181,470,888 - 60,670,068 - 242,140,956
400,657 - - - 400,657
15,000 - - - 15,000
4,816,256 - - - 6,481,677
- - - 1,940,064 1,940,064
- - - 23,770,058 23,770,058
$212 829 337 $1 663 456 $60 670 068 $25 710 122 $322 762 838
32
City of Bangor, Maine
Combined Balance Sheet
All Fund Types and Account Groups
June 30, 1998
Governmental Fund Types
Special Capital
General Revenue Projects
Liabilities;. e�itv and other credits
Liabilities:
Accounts payable $1,108,754 $66,912 $97,936
Loans payable - - -
Workers' compensation 607,890 - -
Accrued compensated absences - - -
Accrued payroll and withholdings 2,406,883 - -
Accrued interest - - -
Due to other governments - - -
Taxes collected in advance 18,249 - -
Amounts held for others - - 16,850
Defenedrevenue 2,190,696 3,939,516 -
Due to rehabilitation recipients - 5,559 -
Due to other funds - 442,000 -
Developer payable deposits - - -
General obligation debt payable - - -
Limited revenue obligation debt payable - - -
Deferred amount on refunding - - -
Arbitrage payable - - -
Obligations under capital lease - - -
Other liabilities - - -
Long-term obligation for self insurance - - -
Totalliabilities 6,332,472 4,453,987 114,786
Liabilities, fund equity and other credits:
Investment in general fixed assets - - -
Contributed capital - - -
Retained earnings:
, Reserved - - -
Reserved for debt service - - -
Unreserved - - -
Fund Balances:
Reserved for:
Encumbrances 301,979 30,960 391,743
Prepaid items 26,631 - -
Due from other funds 2,100,000 - -
I..oans - - -
Endowments - - -
Unreserved:
Designated 2,658,719 - 1,216,845
Undesignated 3,945,102 9,276 307,355
Total equity and other credits 9,032,431 40,236 1,915,943
Total liabilities, equity and other credits $15,364,903 $4,494,223 $2,030,729
� The notes to the financial statements are an integral part of this statement.
Continued on facing page
33
Exhibit 1 (son't1
Proprietary Fiduciary
Fund Type Fund Type Account Groups
General General Totals
Trust and Fixed Long-Term (Memorandum
Enterprise Agency Assets Debt Only)
$1,747,108 $482 - - $3,021,192
251,990 - - - 251,990
482,597 - - - 1,090,487
278,569 - - 1,294,225 1,572,794
341,750 - - - 2,748,633
568,284 - - - 568,284
1,300,000 - - - 1,300,000
- - - - 18,249
- 533,687 - - 550,537
217,214 - - - 6,347,426
- - - - 5,559
2,202,560 - - - 2,644,560
58,883 - - - 58,883
39,206,893 - - 22,188,559 61,395,452
5,160,000 - - - 5,160,000
(670,541) - - - (670,541)
114,240 - - - 114,240
- - - 287,274 287,274
390,909 - - - 390,909
- - - 1,940,064 1,940,064
51,650,456 534,169 - 25,710,122 88,795,992
- - 60,670,068 - 60,670,068
113,850,803 - - - 113,850,803
3,832,402 - - - 3,832,402
539,308 - - - 539,308
42,956,368 - - - 42,956,368
- - - - 724,682
- - - - 26,631
- - - - 2,100,000
- 127,286 - - 127,286
- 536,221 - - 536,221
- - - - 3,875,564
- 465,780 - - 4,727,513
161,178,881 1,129,287 60,670,068 - 233,966,846
$212,829,337 $1,663,456 $60 670 068 $25 710 122 $322 '762 838
34
�xhibit 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, 1998
Fiduciary
Governmental Fund Types Fund Type Totals
Special Capital Expendable (Memorandum
_ General Revenue Projects Trust Only)
Revenues•
Taxes $35,176,557 - - - $35,176,557
Intergovernmental 19,552,835 4,331,476 890,650 - 24,774,961
Licenses and permits 433,449 - - - 433,449
Charges for services 8,028,150 317,360 - - 8,345,510
Fines, forfeits,and penalties 28,193 - - - 28,193
Revenue from use of money and
property 977,348 - 182,157 10,124 1,169,629
Program income - 340,069 - - 340,069
Other - 7,299 17,612 - 24,911
Contributions - - - 94,394 94,394
Totalrevenues 64,196,532 4,996,204 1,090,419 104,518 70,387,673
Expenditures•
Current:
Generai government 3,862,626 - - - 3,862,626
Public safety 10,336,424 - - - 10,336,424
Health, welfare, and recreation 2,683,352 - - - 2,683,352
Public buildings and services '7,810,677 - - - 7,810,677
Otheragencies 2,231,591 - - - 2,231,591
Education 33,415,787 - - - 33,415,787
Otherappropriations 389,805 - - - 389,805
Communiry development block grants - 1,585,253 - - 1,585,253
Grantfund - 3,328,884 - - 3,328,884
Payments to beneficiaries - - - 82,009 82,009
Capital outlay:
Capital additions 37,000 - 5,776,864 - 5,813,864
Landfill closure and postclosure care costs - - 87,276 - 87,276
Debt service(excluding education) 1,335,405 - 2,500,000 - 3,835,405
Totatexpenditures 62,102,667 4,914,137 8,364,140 82,009 75,462,953
Excess(deficiency)of revenues
overexpenditures 2,093,865 82,067 (7,273,721) 22,509 (5,075,280)
Other fmancing sources(usesl:
Sale of assets 98,839 - - - 98,839
General obligation debt 280,000 - 6,772,000 - 7,052,000
Transfersto other funds (605,000) (29,785) (117,667) (14,570) (767,022)
Transfers from other funds 160,995 , 4,400 638,724 - 804,119
Operating subsidy (927,503) - - - (927,503)
Capitalized leases 37,000 - - - 37,000
Total other financing sources(uses) (955,669) (25,385) 7,293,057 (14,570) 6,297,433
Excess of revenues and other financing
sources over expenditures and other uses 1,138,196 56,682 19,336 7,939 1,222,153
Fund balances/(deficit),July 1 7,894,235 (16,446) 1,896,607 116,925 9,891,321
Fund balances, June 30 $9 032 431 $40 236 $1 915 943 $124 864 $11 113 474
The notes to the financial statements are an integral part of this statement
35
�xhibit 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, 1998
Final
Budget Actual Variance
Revenues:
Taxes $34,746,467 $35,069,946 $323,479
Intergovernmental 15,570,991 16,233,583 662,592
Licenses and permits 331,150 433,449 102,299
Charges for services 7,151,903 7,529,144 377,241
Fines, forfeits and penaities 30,000 28,193 (1,807)
Revenue from use of money and property 643,976 546,229 (97,747)
Totalrevenues 58,474,487 59,844,544 1,36b,057
�penditures•
C�urent:
Generalgovemment 3,526,637 3,454,345 72,292
Publicsafety 10,412,770 10,362,360 50,410
Health, welfaze, and recreation 2,608,361 2,680,578 (72,217)
Public buildings and services 7,551,579 7,648,048 (96,469)
Other agencies 2,263,394 2,231,591 31,803
Educarion 30,668,938 30,140,919 478,019
Other appropriations 478,877 389,805 89,072
Debt service 1,328,931 1,335,405 (6,474)
Total expenditures 58,839,487 58,293,051 546,436
Excess ofrevenues over expenditures (365,000) 1,547,493 1,912,493
Other financine source� (uses):
Appropriation from designated fund balances 533,731 333,731 (200,000)
Appropriation from undesignated fund balance 430,626 - (430,626)
Sale of assets 3,000 23,459 20,459
General obligation debt 280,000 280,000 -
Transfers to other funds (601,300) (601,300) -
Transfers from other funds 54,000 54,000 -
Operating subsidy (927,503) (927,503) -
Total other financing uses (227,446) (837,613) (610,167)
Excess (deficiency) of revenues and other financing
sources over expenditures and other uses ($592,446) 709,880 $1,302,326
Unreserved/Undesignated balance, July 1 3,658,172
Appropriation to designated fund balances (200,000)
Balances carried from prior year 592,446
Balances carried to succeeding year (815,396)
Unreserved/Undesignated balance, June 30 $3,945,102
The notes to the financial statements are an integral part of this statement.
36
E�ibit 4
City of Bangor, Maine
Combined Statement of Revenues, Expenses, and Changes in
Retained Eamings/Fund Balances
All Proprietary Fund Types and Similar Trust Funds
For the Fiscal Year Ended June 30, 1998
Proprietary Fiduciary
Fund Type Fund Type Total
Nonexpendable (Memorandum
Enterprise Trust Only)
Ooerating revenues•
Charges for services $21,634,163 - $21,634,163
Interest - 88,435 88,435 ,
Other - 8,015 8,015
Total operating revenues 21,634,163 96,450 21,730,613
Operating exnenses:
Operating expenses other than depreciation and
amortization 15,274,195 5,758 15,279,953
Depreciation and amortization:
On assets acquired with own funds 3,197,034 - 3,197,034
On assets acquired with contributions 4,495,387 - 4,495,387
Total operating expenses 22,966,616 5,758 22,972,374
Operating income (loss) (1,332,453) 90,692 (1,241,761)
Non_operating revenues�expens�s.�
Interest income 1,535,288 - 1,535,288
Interest expense (2,188,829) - (2,188,829)
Miscellaneous income 419,045 - 419,045
Total non-operating revenues (expenses) (234,496) - (234,496)
Net income (loss) before operating transfers (1,566,949) 90,692 (1,476,257)
Transfersto other funds - (76,000) (76,000)
Transfers from other funds 29,785 9,118 38,903
Operating subsidy 927,503 - 927,503
Net income (609,661) 23,810 (585,851)
Add depreciation and amortization on fixed assets
acquired by grants and contributions 4,495,387 - 4,495,387
Increase in retained earnings/fund balances 3,885,726 23,810 3,909,536
Retained earnings/fund balances, July 1 43,442,352 980,613 44,422,965
Retained earnings/fund balances, June 30 $47,328,078 $1,004,423 $48.332,501
The notes to the financial statements are an integral part of this statement.
37
Exhibit 5
Ciry of Bangor, Maine
Combined Statement of Cash Flows
� All Proprietary Fund Types and Similaz Trust Funds
For the Fiscal Year Ended June 30, 1998
Proprietary Fiduciary
Fund Type Fund Type Total
Nonexpendable (Memorandum
, Enterprise Trust Only)
Cash flows from operating activities:
Cash received from customers $22,135,243 - $22,135,243
Cash payments to suppliers for goods and services (5,820,215) (3,015) (5,823,230)
� Cash payments to employees for services (8,789,988) - (8,789,988)
Other operating cash receipts - 25,642 25,642
Other operating cash payments - (83,743) (83,743)
' Net cash provided by (used in) operating
operating activities 7,525,040 (61,116) 7,463,924
Cash flows from non-capital financing activities:
Interfund loans (repayments) 154,209 - 154,209
Operating subsidies received 927,503 - 927,503
Net cash provided by (use in) non-capital
financing activities 1,081,712 - 1,081,712
Cash flows from ca�ital an�e axed financing activities:
Proceeds from general obligation debt 4,180,362 - 4,180,362
Acquisition and construction of capital assets (7,236,242) - (7,236,242)
Principal paid on general and limited revenue obligation debt (4,240,237) - (4,240,237)
Interest paid on general and limited revenue obligation debt (2,156,656) - (2,156,656)
Proceeds from sale of equipment 409,811 - 409,811
Insurance/claims proceeds 892,236 - 892,236
Grant monies received for capital assets 3,097,584 - 3,097,584
Contributions received for capital assets 40,423 - 40,423
Investment of bond proceeds 176,983 - 176,983
Net cash provided by (used in) capital and related
fmancing activities (4,835,736) - (4,835,736)
Cash flows from investing activitie�
Net sales (purchases) of investments (5,785,892) (26,302) (5,812,194)
Interest on investments 1,542,508 87,418 1,629,926
Tax incremental financing loan (280,000) - (280,000)
Loan repayments 43,628 - 43,628
Net cash provided by (used in) investing activities (4,479,756) 61,116 (4,418,640)
Net increase (decrease) in cash (708,740) - (708,740)
Cash, July 1 2,265,420 - 2,265,420
Cash, June 30 $1,556,680 - $1,556,680
The notes to the financial statements are an integral part of this statement.
38
Exhibit 5 (con't�
City of Bangor, Maine
Combined Statement of Cash Flows
All Proprietary Fund Types and Similar Trust Funds
For the Fiscal Year Ended June 30, 1998
Proprietary Fiduciary
Fund Type Fund Type Total
Nonexpendable (Memorandum
Enterprise Trust Only)
Reconciliation of onerating income oss) to net cash r�rovided by (used in�o rating activities
Operating income (loss) ($1,332,453) $90,692 ($1,241,761)
Adjustments to reconcile operating income to net cash
provided by (used in) operating activities:
Depreciation and amortization 7,692,421 - 7,692,421
Provision for uncollectible accounts (186,160) - (186,160)
Presentation differences - Interest - (84,196) (84,196)
Transfers, net - (66,882) (66,882)
Student loan funds - (730) (730)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 353,686 - 353,686
(Increase) decrease in due from water district 6,471 - 6,471
(Increase) decrease in inventories 31,283 - 31,283
(Increase) decrease in prepaid items 15,428 - 15,428
Increase (decrease) in accounts payable 754,256 - 754,256
Increase (decrease) in deferred revenue 139,713 - 139,713
Increase (decrease) in other liabilities 50,395 - 50,395
Total adjustments 8,857,493 (151,808) 8,705,685
Net cash provided by (used in) operating activities $7,525,040 ($61,116) $7,463,924
The notes to the financial statements are an integral part of this statement.
39
INDEX OF NOTES TO FINANCIAL STATEMENTS
Page
I. Summa� of Significant Accountin� Policies
Note 1 Reporting Entity 40
Note 2 Measurement Focus, Basis of Accounting and Basis of Presentation 40
Note 3 Assets, Liabilities and Equity 42
II. Stewardshi�, Compliance and Accountabilitv
Note 1 Budgetary Information 44
Note 2 Budget/GAAP Reconciliation 45
Note 3 Excess of Expenditures Over Appropriations 47
Note 4 Deficit Fund Equity 47
III. Detailed Notes on all Funds and Account Grou�s
Note 1 Deposits and Investments 48
Note 2 Property Taxes 49
Note 3 Interfund Transactions �+9
Note 4 Due From Other Governments 50
Note 5 Fixed Assets 50
Note 6 Leases ,. , �1
Note 7 Other Assets 52
Note 8 Deferred Revenue i?
Note 9 Lon�-Term Debt �3
Note 10 Contributed Capital 58
Note 11 Nonexpendable and Expendable Trust Fund Balances �8
Note 12 Designated Fund Balance 60
IV. Other Information
Note 1 Risk Manaaement 61
Note 2 Tax Increment Financing Districts 61
Note 3 SeQment Information - Enterprise Funds 62
Note 4 Contingent Liabilities 64
Note 5 Retirement 6�
Note 6 Landfill Closure and Postclosure Care Costs 66
Note 7 Subsequent Events 67
Note 8 Implementation of GASB 31 67
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
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 umts. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and
reporting principles. The more sigmficant 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 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 appointrnent 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.
Based upon all pertinent facts derived from the analysis of the above criteria, it was determined that no
additional entities should be included as part of these financial statements.
2. l�Ieasurement 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.
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 categories: governmental, proprietary and fiduciary. Each category, in tum,
is divided into separate "fund types".
Governmental Funds Types
Governmental Funds are used to account for most govemmental functions of the City. 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 transacrion
can be determined and "available" means the amounts are collectible within the current period
or soon enough thereafter to pay liabilities of the cunent period. Expenditures are recorded when the related
fund liability is incurred, except for principal and interest on general Iong-term debt, which is recognized �
when due, and certain compensated absences and claims and judgments which aze recognized when the
obligations are expected to be liquidated with expendable available financial resources.
40
' City of Bangor; Maine
Notes to Financial Statements
June 30, 1998
2. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
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 accounted 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 operations 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.
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:
Nonezpendable 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.
41
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
2. Measurement Focus, Basis of Accounting and Basis of Presentation (Continued)
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 assets 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 assets not
Account Group accounted for in proprietary funds.
General Long-Term - The general long-term debt account group is used to account for general
Debt Account Group long-term debt and certain other liabilities that are not specific liabilities of
proprietary 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 arrangements
and Payables outstanding at the end of the fiscal year are reported as "due to/from other
funds." These are offset by a reserved fund 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 -
Items The City accounts for inventory under the consumption method. Inventories i.n
the general fund and proprietary funds consist of expendable supplies held for
consumption and are carried 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 with an offsetting
reserved fund balance.
42
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
3. Assets, Liabilities and Equity (Continued)
Fixed Assets - Fixed assets used in governmental 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 incuned during construction is not capitalized on general
fv�ed 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 incuned 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 Revolving 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 eamed but unused
vacation, compensation and sick pay benefits. With minor exceptions 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 incurred in proprietary funds and reported as a fund liability. Resources
for vacation, compensation and sick (if applicable) pay aze provided for in the
subsequent year in govemmental fund types. Amounts are 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.
43
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
3. Assets, Liabilities and Equity (Continued)
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 financed by proprietary funds aze 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 defened charges.
Fund Equity
Contributed Capital - The proprietary fund's contributed capital represents equity 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 financial information and are presented only to facilitate fmancial
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/Reclassi�ication
Comparative total data for the prior yeaz 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.
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 yeaz through the
passage of appropriation resolves. Other Special Revenue and Capital Projects Funds have adopted
project-length budgets. Unencumbered appropriations lapse at fiscal year end, except as authorized by City �
Council.
44
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
1. Budgetary Information (Continued)
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 cunent 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
budgetg 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 addirional
appropriations require the approval of the City Council.
The City Council made several supplemental budgetary appropriations throughout the year, including
appropriating approximately $569,800 in transfers from various fund balance accounts in the general
fund for operating transfers to other funds and capital asset acquisition and $593,300 in FEMA funds.
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 (Exhibit 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�ibit 3) $59,840,544 $58,293,051 ($837,613)
State of Maine "on-behalf" payments 3,279,852 3,279,852 -
Activity in designated fund balance 1,076,136 587,304 (15�,056)
Capitalized leases - 37,000 37,000
1998 encumbrances - (301,979) -
1997 encumbrances lapsed - 3,908 -
1997 encumbrances paid - 203,531 -
Combined Statement of Revenues, Expenditures,
and Changes in Fund Balance-All Governmental
Fund Types-General Fund (Exhibit 2) $64,196,532 $62,102,667 ($955,669)
45
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
2. Budget/GAAP Reconciliation (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)
Bud et (Budget Basis) Vaziance
Revenues:
Sewer $5,983,627 $6,417,668 $434,041
Airport 9,502,023 10,835,860 1,333,837
Pazk Woods 295,809 314,376 18,567
City Nursing Facility 2,926,138 2,790,116 (136,022)
P��g 974,772 967,968 (6,804)
Bass Park 1,493,250 1,469,883 (23,367)
Municipal Golf Course 595,320 705,497 110,177
Economic Development 173,427 174,201 774
Total revenues -budget basis $21,944,366 23,675,569 $1,731,203
The fmancial statement classifications of nonoperating revenues
required by GAAP are treated as operating revenue for budgetary purposes. (2,547,963)
Revenues received for restricted purposes that are excluded from
operating revenue for budgetary purposes. 506,557
Total operating revenues - Exhibit 4 $21,634,163
Expenses:
Sewer $7,636,277 $7,296,698 $339,579
Airport 10,759,731 9,675,711 1,084,020
Park Woods 296,309 281,226 15,083
City Nursing Facility 2,999,256 2,993,263 5,993
P��ng 1,274,883 1,239,704 35,179
Bass Park 1,593,431 1,692,648 (99,217)
Municipal Golf Course 649,745 528,908 120,837
Economic Development 173,427 248,198 (74,771)
Total expenses -budget basis $25,383,059 23,956,356 $1,426,703
Capital outlay that has been included in an enterprise fund's
operating budget is reported as an expense for budgetary purposes. (541,042)
The principal amortization of general and limited obligation bonds, notes
payable and capital leases aze recognized as expenses for budgetary purposes. (2,800,713)
Current year encumbrances are recognized as expenses for budgetary purposes. (205,096)
Prior year encumbrances are recognized as expenses in the yeaz expended
as required by GAAP. � 220,768
The financial statement classifications of nonoperating expenses required by
GAAP are treated as operating expenses for budgetary purposes. 2,336,343
Total operating expenses - Exhibit 4 $22,966,616
46
City of Bangor, Maine �
Notes to Financial Statements
June 30, 1998
3. Excess of Expenditures Over Appropriations
The following funds had departmental over-expenditures for the year ended June 30, 1998:
General Fund - The following departments were over-expended by the indicated
dollar amounts; Assessing ($13,836), Legal ($2,109), Economic
Develop/Code Enforcement ($1,764), Police ($62,366), Parks and
Recreation ($92,962) and Public Services ($96,469). These
over-expenditures were funded by receipt of revenues in excess of
appropriation and under-expenditures within other General Fund
departments.
Bass Park - The complex was overspent on a departmental basis by $99,217.
This deficit was not funded and resulted in an increase to the deficit
fund balance.
Economic Development - The fund was overspent on a departmental basis by $74,771. This
deficit was not funded and resulted in a decrease to the fund
balance.
4. Deficit Fund Equity
The following funds had a deficit fund balance as of June 30, 1998:
Community Development Block - The deficit will be funded in the subsequent year with increased
Grant- Special Revenue Fund collection of 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 operating subsidy.
City Nursing Facility -Enterprise - This facility typically operates at a deficit, largely due to its
Fund management 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.
Bass Park - Enterprise Fund - This facility was studied by a committee of staff and community
members to detemune how to improve operating results. The
recommendations were to market more aggressively and improve
the product qualiry. The City 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.
47
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
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
mvestments" 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: The carrying amount of the City's deposits with fmancial institutions was $3,984,978 and the
bank balance was $4,238,715. The bank balance is categorized as follows:
Amount insured by the FDIC and MBIA or collateralized
with securities held by the City in its name $2,189,943
Amount collateralized with securities held by the
pledging financial institution's trust department
in the City's name 2,048,772
Total bank balance $4,238,715
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 registered, or securities held by the City or its
agent in the City's name.
Category 2 - includes uninsured and unregistered investments for which the securities are held by the
banks' trust department in the City's name.
Category 3 - includes uninsured and unregistered investments for which the securities are held by the
banks' trust department or its agent but not in the City's name.
Category Carrying Fair
1 2 3 Amount Value
U.S. Government and agencies - $25,596,406 - $25,596,406 $25,596,406
State of Maine - 610,174 - 610,174 610,174
Repurchase Agreements - 2,286,793 - 2,286,793 2,286,793
Commercial Paper - 959,125 - 959,125 959,125
Certificate of Deposit - - - 50,000 50,000
Mutual Funds - - - 542,338 542,338
- $29,452,498 - $30,044,836 $30,(�4 836
48
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
1. Deposits and Investments (Continued)
Mutual fund investments are not required to be classified in any of the aforementioned categories because they aze
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. Government and agency
obligarions, repurchase agreements and mutual funds fluctuates significandy.
A reconciliarion of cash and investments as shown on the combined balance sheet for the City follows:
Equity in pooled cash and investments $3,844,032
Investments 27,301,199
Investment in bond proceeds (Other Assets) 2,886,295
34,031,526
Carrying amount of deposits $3,984,978 L,ess:
Carrying amount of investments 30,044,836 Pending collection items (1,712)
$34,029,814 $34,029,814
2. Property Tax
� The City's property tax was levied July 1, 1997 on the assessed value listed as of the prior April 1, for all real and
personal property located in the City. The assessed value for the list of April 1, 1997, upon which the 1997 levy
was based, was $1,387,170,700. The estimated market value was $1,387,170,700 making the assessed value 100
percent of the estimated market value.
Taxes are billed on a annual basis. Taxes were due September 15, 1997 and March 16, 1998 with interest due
from that date if unpaid. Current tax collections for the year ended June 30, 1998, were 95.6 percent of the tax
levy (Table 5).
Property taxes levied for the year ended June 30, 1998, 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, 1998. 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, 1998 were as follows:
Receivable Payable
General Fund $2,644,560 -
Special Revenue Funds - 442,000
Enterprise Funds - 2,202,560
$2,644,560 $2,644,560
Individual fund transfers to and from other funds for the fiscal year ended June 30, 1998 were as follows:
Transfers to Transfers from
GeneralFund $605,000 $160,995
� Special Revenue Funds 29,785 4,400
Capital Project Funds 117,667 638,724
Expendable Trust Funds 14,570 -
Enterprise Funds - 29,785
Nonexpendable Trust Funds 76,Q00 9,118
$843,022 $843,022
49
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
4. Due From Other Governments
Due from other governments is comprised of the following amounts at June 30, 1998:
State of Federal
Other Maine Government Total
General Fund $89,100 $1,312,807 $283,238 $1,685,145
Special Revenue Funds - $25,000 $434,537 $459,537
Capital Projects Fund - $234,219 $70,575 $304,794
Enterprise Funds - $27,709 $498,763 $526,472
Of the General Funds $1,312,807 due from State of Maine, $681,557 represents school subsidies and State agency
billings and $144,106 represents general assistance claims not yet received.
5. Fixed Assets
A summary of the activity in the General Fixed Asset Account Group for fiscal year ended June 30, 1998,
follows:
Capital
Balance Transfers & Project Balance
June 30, 1997 Additions Deletions Close-outs June 30, 1998
Land, buildings, and
construction in process:
Land $5,198,491 - - - $5,198,491
School Land 950,988 - - - 950,988
Buildings 5,053,983 - - 357,144 5,411,127
School Buildings 26,235,769 - - - 26,235,769
Construction in process 4,164,402 3,973,844 - (491,872) 7,646,374
Total iand, buildings, �
and construction in process 41,603,633 3,973,844 - (134,728) 45,442,749
Equipment:
Vehicles 6,341,215 199,812 - 10,753 6,551,780
Machinery & Equipment 3,878,071 53,467 - 123,975 4,055,513
Schoolother 4,412,750 207,276 - - 4,620,026
Total equipment 14,632,036 460,555 - 134,728 15,227,319
Total fixed assets $56,235,669 $4,434 399 - - $60 670 068
50
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
5. Fixed Assets (Continued)
A summary of proprietary fund type property, plant, and equipment at June 30, 1998, follows:
Land $979,809
Buildings, plant and equipment 45,041,210
Pipelines and mains 32,599,450
Airport operational assets 187,801,305
Parking structures 6,459,608
Construction in process 8,199,981
281,081,363
Less: accumulated depreciation 99,610,475
$181,470,888
In 1998, total proprietary fund type interest incurred was $2,188,829 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 2036 and 2015, respectively. Minimum future
rentals to be received on noncancelable leases as of June 30, 1998 are:
Economic
Year ended June 30 Airport Development
1999 $1,488,759 $210,953
2000 1,473,230 223,163
2001 1,430,350 189,985
2002 1,364,709 169,360
2003 1,272,260 170,284
Subsequent to 2003 8,353,003 2,479,757
Total Minunum Future Rentals $15,382,311 $3,443,502
Airport mirumum 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 1998 were $1,692,713.
51
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
6. Leases (Continued)
Capital Leases
The City's General Fund currently leases heavy machinery and copiers under capital leases. Following is a
schedule, by year, of future minimum lease payments under these leases, together with the present value of �
the net minimum lease payments as of June 30, 1998.
General
Year Ended June 30 Fund
1999 $143,900
2000 88,315
2001 73,360
2002 7,020
2003 7,020
319,615
Less: Interest 32,341
Present value of net minimum lease payments $287,274
7. Other Assets
Other assets are comprised of the following:
General Capital Enterprise
Fund Projects Fund Funds
Tax mortgages $7,471 - -
Investment of bond proceeds - 1,657,950 1,228,345
Loans receivable - - 1,758,907
Operating rights (net of amortization) - - 259,213
Bond issuance costs (net of amortization) - - 269,791
Property held for resale - - 1,300,000
Total other assets $7,471 $1,657,950 $4,816,256
8. Deferred Revenue
Deferred revenue consists of the following:
General Special Enterprise
Fund Revenue Funds Funds
Taxes $2,110,766 - -
Loans - 3,939,516 -
Advance Deposits 79,930 - 217,214
$2,190,696 $3,939,516 $217,214 '
Deferred tax revenue consists of those tax revenues not available to meet the needs of the current period.
Deferred revenue of the Special Revenue Fund represents future revenue equal to loans made pursuant to the
Community Development, Urban Development Action Grants, and Economic Incentive 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.
52
' City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
S. Deferred Revenue (Continued) �
Further, pursuant to regulations governing such funds, repayment of loans thus outstanding are considered
program mcome 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. Lang-Term Debt
. The following is a summary of long-term debt transactions of the City for the period ended June 30, 1998:
General Limited Revenue
Obligation Obligation
Debt Bonds Total
Debt payable at June 30, 1997 $59,031,280 � $5,365,000 $64,396,280
. New debt issued 11,232,362 - 11,232,362
Debt retired (8,868,190) (205,000) (9,073,190)
Debt payable at June 30, 1998 $61,395,452 $5,160,000 $66,555,452
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 the funds will be used) of its last full state valuation. The statutory limit for June 30, 1998
was $208,852,500 with a general obligation debt margin of$147,737,048. The following is a summary, by
purpose, of the outstanding debt of the City at June 30, 1998, and related limitations:
Max. Allowable
Percent of State
Debt Assessed Value of Statutory Debt
Outstanding $1,392,350,000 Limit Margin
School $12,760,737 10.0% $139,235,000 $126,474,263
Sewer 33,131,503 7.5% 104,426,250 71,294,747
Airport 2,094 3.0% 41,770,500 41,768,406
All other * 15,501,118 7.5% 104,426,250 88,925,132
Total $61,395,452 15.0% $208,852,500 $147,457,048
* All other debt outstanding is comprised of the following:
General Fund $9,427,822 60.9%
Parking Fund 3,853,572 24.9%
Bass Park Fund 1,390,049 9.0%
City Nursing Fund 363,008 2.3%
' Economic Development Fund 466,667 2.9%
$15,501,118 100.0%
The Bangor International Airport has $5,160,000 of limited revenue obligation bonds outstanding at June 30,
1998, the proceeds of which were used to finance terminal expansion. The interest rate varies from 5.00% to
6.70% with a final maturity date of October, 2012.
-53
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
9. Long-Term Debt (Continued)
General obligation debt payable at June 30, 1998, 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/O1/O1
1988 Permanent Public Improvements 7.37 to 8.60 10/28/07
1989 Permanent Public Improvements 6.70 to 7.00 09/O1/09
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/O1/13
1993 SRF Combined Sewer Overflow 2.45 10/O1/13
1994 Refunding Bonds 2.35 to 5.20 08/Oi/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 Permanent Public Improvements 5.35 to 6.50 09/O1/16
1996 General Obligation Notes (Waterfront) 4.10 10/18/99
1997 SRF Sewer 3.03 10/Ol/17
1997 Permanent Public Improvements 4.875 to 5.30 09/O1/17
1998 General Obligation Notes * 6.19 11/1/17
Total
Less current portion(due fiscal year 1999)
* 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 Ciry.
54
Authorized General Enterprise Total
and Issued City School Funds June 30, 1998
$3,260,000 $108,994 - $16,006 $125,000
3,065,000 87,720 342,280 - 430,000
3,200,000 - - 1,000,000 1,000,000
13,025,000 134,000 796,000 570,000 1,500,000
9,265,000 258,000 - 1,197,000 1,455,000
19,000,000 - - 14,250,000 14,250,000
12,550,000 - 5,020,000 4,380,000 9,400,000
575,000 275,000 - - 275,000
3,314,000 1,397,360 - 16,640 1,414,000
1,8b4,000 - - 1,491,200 1,491,200
1,986,000 - - 1,588,800 1,588,800
11,155,000 319,748 3,102,457 7,222,795 10,645,000
1,030,000 890,000 - - 890,000
2,942,923 - - 2,827,423 2,827,423
975,000 955,000 - - 955,000
1,500,000 1,450,000 - - 1,450,000
7�>� - - 466,667 466,667
2,452,362 - - 2,452,362 2,452,362
8,500,000 3,272,000 3,500,000 1,728,000 8,500,000
280,000 280,000 - - 280,000
$100,639,285 9,427,822 12,760,737 39,206,893 61,395,452
1,081,150 1,010,602 2,851,074 4,942,826
$8,346,672 $11,750,135 $36,355,819 $56,452,626
55
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
9. Long-Tertn Debt (Continued)
Overlapping Debt
The City is located in Penobscot County and, as such, is responsible for its proportionate share
(23.42%) of the county's long term debt outstanding which, at June 30, 1998 was $3,442,534. 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,
1998 was $440,000.
The City's portion of direct and overlapping debt is summarized below:
Percentage
Debt Applicable Overlapping
Units Outstanding to the City Debt
City $61,395,452 100.00% $61,395,452
Airport - Limited Revenue
Obligation Debt 5,160,000 100.00% 5,160,000
Counry 3,442,534 23.42% 806,241
M.V.R. No. 4 440,000 33.59% 147,796
$70,437,986 $67,509,489
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, 1998.
General Fund Enterprise
City School Funds Total
Amount of Direct Debt by Fund $9,427,822 $12,760,737 $44,366,893 $66,555,452
Per Capita Direct Debt by Fund $284 $385 $1,338 $2,008
Per Capita Direct and Overlapping
Debt N/A N/A N/A $2,036
Direct Debt as a Percent of Assessed
Valuation 0.68% 0.92% 3.19% 4.78%
Direct and Overlapping Debt as a Percent
of Assessed Valuation N/A N/A N/A 4.85%
�
56
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
9. Long-Term Debt (Continued)
The annual future principal and interest payment requirements for all debt outstanding as of June 30, 1998,
is as follows:
General Limited Revenue
Obligation Debt Obligation Debt
Year Ended Total
June 30 Principal Interest Principal Interest Requirement
1999 $4,942,826 $2,796,200 $220,000 $318,758 $8,277,784
2000 4,842,968 2,532,453 230,000 306,770 7,912,191
2001 4,379,004 2,290,849 245,000 293,643 7,208,496
2002 3,745,612 2,096,499 260,000 279,308 6,381,419
2003 3,731,473 1,926,942 275,(?QO 263,789 6,197,204
Subsequent 39,753,569 10,552,415 3,930,000 1,439,436 55,675,420
$61,395,452 $22,195,358 $5,160,000 $2,901,704 $91,652,514
As of June 30, 1998, the amount of defeased debt outstanding but removed from the General LonQ-term
Debt Account Group and Enterprise Funds is $3,163,900 and $6,541,100, respectively. y
The Sewer Utility and Parking enterprise funds have recorded a defened 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, 1998:
Balance Balance
June 30, 1997 Additions Reductions June 30, 1998
General obligation debt $19,688,747 $7,052,000 $4,552,188 $22,188,559
Obligations under capital leases 387,498 37,Q00 137,224 287,274
Accrued compensated absences 2,534,548 473,093 1,713,416 1,294,225
Long-term obligation for self
insurance 1,799,733 140,331 - 1,940,064
$24,410,526 $7,702,424 $6,402,828 $25.710,122
57
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
10. Contributed Capital
A summary of changes in contributed capital follows:
Contributed capital at June 30, 1997 $114,409,174
Contributions 3,937,016
Depreciation on assets acquired with contributions (4,495,387)
Contributed capital at June 30, 1998 $113,850,803
11. Nonexpendable and Expendable Trust Funds Balances
Nonexpendable and Expendable Trust funds Balances were comprised of the following at June 30, 1998:
� Unexpended
Principal Income
NonexDendable Trusts
Cemetery:
Perpetual Care $383,015 $128,297
Parks:
Bass Park - 35,109
Arthur Chapin Fund 14,538 1,163
14,538 36,272
City Missionary:
Hiram Fogg 1,000 3,138
Louis & Sophia Kirstein 500 2,291
Hiram Oliver 2,000 6,857
Penobscot Association for the Blind 11 5
Lorenzo Sabine 1,000 1,884
Stetson 12,000 17,824
16,511 31,999
Education:
Bangor High School 200 1,580
French Medal 35,738 20,102
Holton Public School 2,000 2,203
Louis & Sophia Kirstein 5,000 5,600
A.E. Webber, Jr. 1,200 874
44,138 30,359
58
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
11. Nonexpendable and Expendable Trust Funds Balances (Continued)
Unexpended
� Principal Income
Aid for Aged Women:
Charles Adams $10,000 $6,876
Thomas Upham Coe 3,000 2,062
Anna H. Pierce 4,000 2,749
Annie Stetson 5,067 3,370
George Stodder 11,000 7,563
Wakefield 10,000 10,943
43,067 33,563
Other Funds:
Dorthea Miller 507 540
Bangor Firemen's Relief 7,639 10,989
Bangor Fuel Society 4,500 400
Kirstein City hospital 507 1,971
Arthur Morey 1,013 5,135
Melvin Murch 5,733 17,933
O'Connell Trust 1,000 7,397
Twitchell Trust - 155
Flora Seavey 1,500 1,373
Charlotte Hall 5,984 20,296
Pfaff Trust 811 2,136
Porter - Pulsifer 5,000 11,767
Jewish War Veterans 758 334
34,952 80,426
Revolving Loan:
Sophia Kirstein Student Loan 127,286 -
Total nonexpendable trusts $663,507 $340,916
Ex�endable Trusts
Dental Clinic $54,773 $18,960
Preservation of Records 35 53
CNF Wheelchair Van 2,531 480
Adopt a Park 21,998 6,720
Park Woods Children 28 -
City Forest (16,025) -
BFD Imaging 32,529 2,782
Total expendable trusts $95,869 $28,995
59
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
12. Designated Fund Balance
General Fund•
Designated fund balances represent those portions of the General Fund balance specifically designated
for the following:
1998 1997
Departmental balances carried forward $19,882 $125,342
School department - regular 255,592 197,621
adult education 22,816 54,633
special revenue 374,959 69,119
school lunch 19,335 27,370
trust and agency 122,812 118,361
Total balances canied 815,396 592,446
Accrued summer teacher payroll (1,648,242) (1,535,431)
Pooled equipment account 532,959 523,372
Bus equipment 17,871 17,213
Fire equipment account 41,306 20,276
Improvement 471,229 272,915
Workers' compensation 1,783,761 1,650,981
Self insurance 156,303 148,752
Credit reserve - 77,109
Cameron stadium 95,763 14,679
Landfill closure 133,390 127,232
Cascade park maintenance 2,060 51,658
Demolition 6,451 -
PEG capital support 75,000 -
Arbitrage rebate - General Fund 27,330 26,076
School department 148,142 141,345
Total General Fund designated fund balance $2,658,719 $2,128,623
,
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; enors 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
liabiliry, 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 woikers' compensation liability. Reserves are actuarially determined
each year to determine adequacy. In addition, the City purchases excess workers' compensation
insurance to limit its fmancial risk.
60
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
1. Risk Management (Continued)
At June 30, 1998, the amount of the self-insurance liabilities was $3,035,391. This liability is the City's best
estimate based on available information. Changes in the reported liability since July 1, 1996, resulted from
the following:
Workers' All Other Self-
Co�ensarion Insured Risks Total
Unpaid Claims as of July 1, 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 adjustinents 622,325 4,147 626,472
Unpaid Claims as of June 30, 1997 2,847,990 148,752 2,996,742
Incuned Claims 285,811 - 285,811
Payments (747 151) - (747,151)
,
Changes in estimates and
other adjustments 492,438 7,551 499;989
Unpaid Claims as of June 30, 1998 $2,879,088 $156,303 $3,035,391
Comprised of:
Current obligations of the General Fund $607,890 - $607,890
Enterprise funds 487,437 - 487,437
General long term debt account group 1,783,761 156,303 1,940,064
Total $2,879,088 $156,303 $3,035 391
2. Tax Increment Financing Districts
The City has established TIF (tax 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:
B.I.A. Munici��l Develo�ment 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 $632,619 for the year ended June 30, 1998.
Main Street Munici�al Develo�ment District•
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.
Pickering Square Munici�al Develo�ment Distric��
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.
61
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
3. Segment Information - Enterprise Funds
There are eight services provided by the City which are financed by user charges - Sewer, Airport, Park
Woods, City Nursing Facility, Parking, Bass Park, Municipal Golf Course and Economic Development.
The key fmancial data for the period ended June 30, 1998, for those services are as follows:
Park
Sewer Airport Woods
Operating revenue $6,182,035 $10,024,774 $257,518
Operating expenses:
Other 2,615,841 7,368,848 272,444
Depreciation and amortization * 1,465,195 5,370,596 94,273
4,081,036 12,739,444 366,717
Operating income (loss) 2,100,999 (2,714,670) (109,199)
Nonoperating revenue (expense) (1,241,698) 1,319,404 17,555
Transfers from other funds - - -
Operating subsidy - - 39,303
Net income (loss) $859,301 ($1,395,266) ($52,341)
Additions to contributed capital $935,523 $2,532,773 -
Acquisition of property, plant and equipment $3,061,279 $3,454,842 $600
Total assets $59,788,439 $138,917,036 $1,979,182
Net working capital $2,644,370 $7,671,677 ($84,242)
General and limited revenue obligation
debt payable $33,131,503 $5,162,094 -
Fund equity (deficit) $25,929,367 $131,713,222 $1,701,073
* Includes depreciation and amortization of$4,495,387 on assets acquired with grants and contributions.
62
City Bass Municipal Economic
Nursing Parking Park Golf Course Development Total
$2,578,998 $593,463 $1,131,963 $691,468 $173,944 $21,634,163
2,819,051 357,963 1,427,116 344,027 68,905 15,274,195
89,619 297,758 273,937 72,598 28,445 7,692,421
2,908,670 655,721 1,701,053 416,625 97,350 22,966,616
(329,672) (62,258) (569,090) 274,843 76,594 (1,332,453)
(12,775) (247,606) (41,441) 12,667 (40,602) (234,496)
- - - - 29,785 29,785
204,828 371,772 311,600 - - 927,503
($137,619) $61,908 ($298,931) $287,510 $65,777 ($609,661)
$10,488 - - - $478,333 �3,957,117
$85,211 $4,141 $276,179 $58,468 $295,522 �7,236,242
$1,017,287 $3,844,786 $2,614,198 $1,268,529 $3,399,880 $212,829,337
($894,764) ($237,432) ($1,408,625) $447,713 ($1,564,373) $6,574,324
$363,008 $3,853,572 $1,390,049 - $466,667 $44,366,893
($565,649) $87,651 ($269,791) $1,248,035 $1,334,973 $161,178,881
63
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
4. Contingent Liabilities
Litigation
In September 1992, the City received a "Notice of Potentiai Responsibility" under Maine's Uncontrolled
Hazardous Substance Sites law. The notice involves the planned cleanup of several hazardous waste
disposal sites. The Ciry 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 (DEP) 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.
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.
In February 1998, the City was served with Notification of Potential Liability by the Federal
Environmental Protection Agency (EPA) in connection with that agency's efforts to clean up a disposal
site. The City is among approximately 500 potentially responsible parties. It is currently estimated that
the City's cost should not exceed $150,000.
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 Ciry 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.
5. Retirement
Introduction
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 Security.
The Defined Benefit Pension Plan is administered through�the Maine State Retirement System. 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.
64
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
5. Retirement (Continued)
A. Defined B�nefit Pension Plans
Descri�tion of the Plan
The City contributes to Maine State Retirement System Consolidated Plan, a cost sharing
multiple-employer public employee retirement system established by the Maine State legislature. The
Maine 5tate Retirement System provides retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. Maine Statutes assign the authority
to establish and amend benefit provisions to the Maine State Retirement System Board of Trustees. The
Maine State Retirement system issues publicly available financial report that includes financial
statements and required supplementary information for the Consolidated Plan. That report may be
obtained by writing to Maine State Retirement System, 46 State House Station, Augusta, Maine
04333-0046 or by calling 1-800-451-9800.
Fundin$ Polic�
Plan members are required to contribute 6.5% of their annual covered salary and the City of Bangor is
required to contribute an actuarially determined rate. The current rate ranges from 8.00% to 19.00%,
based on the type of plan, of annual covered payroll. The contribution rates of plan members and the
City of Bangor are established and may be amended by the Maine State Retirement System Board of
Trustees. The City's contributions to the Maine State Retirement System Consolidated Plan, since
joining, for the years ended June 30, 1998 and 1997 were $3,800,529 and $3,841,735, respectively,
equal to the required contributions for each year.
�ansition to GASB 27
For the year ended June 30, 1998, the City has adopted Governmental Accounting Standards Board
(GASB) Statement No. 27, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures
for Defined Benefit Pension Plans. At the date of transition to GASB Statement No. 27, the City was
required to calculate its pension liability. The pension liability is equal to the employer's (a)
contractually required contributions that are due and payable at the effective date and (b) pension related
debt, if applicable. At the date of transition, the City's pension liability was calculated to be $0.
Teacher Gror�p
All school teachers, plus other qualified educators, participate in the Maine State Retirement System's
teacher group. The teacher's group is a cost-sharing plan with a special funding situation, established
by the Maine State legislature. The Maine State Retirement System provides retirement and disability
benefits, annual cost-of-living adjustment, and death benefits to plan members and beneficiaries. Maine
Statutes assigns authority to establish and amend benefit provisions to the Maine State
Retirement System Board of Trustees. The Maine State Retirement System issues a publicly available
financial report that include financial statements and required supplementary information for the
Teacher's Group. That report may be obtained by writing to Maine State Retirement System, 46 State
House Station, Augusta, Maine 04333-0046 or by calling 1-800-451-9800.
65
City of Bangor, Maine
Notes to Financial Statements
June 30, 1998
5. Retirement (Continued)
Funding Polic�
Plan members are required to contribute 7.65% of their compensation to the retirement system. The
State of Maine Department of Education is required, by the same statute, to contribute the employer
contribution which amounts to $3,279,852 (20%) for the fiscal year 1998. This amount has been
reported as intergovernmental revenue and education expenditure in the GAAP basis financial
statements (Exhibit 2). There is no contribution required by the School except for federally funded
teachers, for which the school contributed 20% of their compensation. This cost is charged to the
applicable grant.
B Defined Contribution Pension Pl�n
The City of Bangor provides pension benefits for certain of its full-tune 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% - 30.0% of annual earnings. The
covered payroll in fiscal year 1998 was approximately $450,449 and City contributions totaled
approximately $54,422.
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.
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.
Historical trend information for the Consolidated Plan is not relevant, as the year ended June 30, 1995 �
was the first year of the Consolidated Plan and Participating Local Disrtricts did not enter the Plan until
1996. Therefore, the data is not comparable. If available, this information would be useful in assessing �
the pension plan's accumulation of sufficien assets to pay pension benefits as they become due.
6. Landfill Closure and P 1
ostc osure 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.
66
City of Bangor, Maine
. Notes to Financial Statements
June 30, 1998
6. Landfill Closure and Postclosure Care Costs (Continued)
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.
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 $295,571 as of June 30, 1998,
which is based on 100% usage of the landfill. The estimated total cunent 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, 1998. The actual cost of closure and postclosure
should not change significantly from the amount estimated.
At June 30, 1998 $295,571 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.
7. Subsequent Events
In December 1996, the City authorized the issuance of up to $5,000,000 in general obligation bonds, to
date $3,950,000 has not been issued. The proceeds are to be used as a 45% match to a grant awarded by
the Environmental Protection Agency (EPA). The gross proceeds of the grant and debt will be used to
continue the Ciry's compliance with an EPA consent decree governing combined sewer overflow. The
City expects to issue $1,166,200 of the remaining authorized amount within the next fiscal year.
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 April 1998, the City authorized the issuance of up to $350,000 in general obligation bonds. Proceeds
will be used to create additional classroom space by remodeling and renovating a portion of the existing
facility.
In July 1998, the City authorized the issuance of up to $4,000,400 in general obligation bonds. The
proceeds will be used to fund various projects such as; purchase surplus housing, completion of the
Waterworks project, including the purchase of a building from the developer, bulkhead replacement,
parking facilities improvements and various building improvements.
8. Implementation of GASB 31
For the year ended June 30, 1998, the City has adopted Governmental Accounting Standards Board
(GASB) Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External
Investments Pools. Prior to the implementation of GASB Statement No. 31, the City used cost as the
basis to value its investments. GASB Statement No. 31, requires that certain investments be accounted
for at fair value, which is defined as the amount at which a financial instrument could be
exchanged in a cunent transaction between willing parties.
67
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General Fund �
The General fund i�used to account for resources traditionally associated with the government, '
which are not required Iegally or by sound financial management, to be aceounted for in another
fund.
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Schedule A-1 -
City of Bangor, Maine
Balance Sheet
General Fund
June 30, 1998 and 1997
1998 1997
Assets:
Cash $1,980,308 $391,376
Investments 5,497,579 6,172,395
Receivables:
Taxes 2,354,235 2,490,610
Accounts 1,172,256 1,010,976
Allowance for uncollectible (287,440) (137,745)
. Due from other funds 2,644,560 2,044,860
Due from other governments 1,685,145 1,335,488
Inventories, at cost 284,158 291,109
Prepaid items 26,631 44,113
Other assets 7,471 9,895
Total assets $15,364,903 $13,653,077
Liabilities:
Accounts payable $1,108,754 $986,280
Workers' compensation 607,890 607,890
Accrued payroll and withholdings 2,406,883 2,022,177
Taxes collected in advance 18,249 23,263
Deferred revenue 2,190,696 2,119,232
Total liabilities 6,332,472 5,758,842
Fund balances•
Reserved for:
Encumbrances 301,979 207,440
Prepaid items 26,631 -
Due from other funds 2,100,000 1,900,000
Unreserved:
Designated 2,658,719 2,128,623
Undesignated 3,945,102 3,658,172
Total fund balances - 9,032,431 7,894,235
Total liabilities and fund balances $15,364,903 $13,653,077
68
�
Schedule A-2
City of Bangor, Maine
Statement of Revenues, Expenditures, and
Changes in Unreserved/LJndesignated Fund Balance-Budget and Actual-Budgetary Basis
General Fund
For the Fiscal Year Ended June 30, 1998
Balances
Carried Variance
07/O1/97 Budget Actual Surplus Carried
Revenues•
Taxes:
Real and personal property - $32,089,587 $32,282,772 $193,185 -
Change in defened property tax revenues - - (66,214) (66,214) -
Tax increment financing district - (632,620) (632,619) 1 -
Payment in lieu of taxes - 147,000 105,739 (41,261) -
Automobile and boat excise taxes - 2,902,500 3,095,072 192,572 -
Interest on delinquent taxes - 240,000 285,196 45,196 -
Totaltaxes - 34,746,467 35,069,946 323,479 - '
Intergovernmental revenue:
State revenue sharing - 2,620,000 2,987,493 367,493 - '
Schoolsubsidy - 9,346,854 9,365,493 - 18,639
Other -Municipal - 1,598,336 1,680,930 82,594 -
School - 2,005,801 2,199,667 - 193,866
Total intergovernmental revenue - 15,570,991 16,233,583 450,087 212,505 �
Other revenue: 1
Licensesandpermits - 331,150 433,449 102,299 -
Charges for services - Municipal - 4,262,707 4,338,044 75,337 - -
School - 2,889,196 3,191,100 - 301,904
Fines, forfeits, and penalaes - 30,000 28,193 (1,807) -
Revenue from use of money -Municipal - 643,976 543,144 (100,832) -
and property -School - - 3,085 - 3,085
Total otherrevenue - 8,157,029 8,537,015 74,997 304,989
Totairevenues - 58,474,487 59,840,544 848,563 517,494
E�nenditures• ,
General government:
Council - 20,460 17,993 2,467 -
Executive - 1,124,480 1,102,270 22,210 -
City clerk - 340,916 307,470 33,446 -
Finance � 686,357 666,019 20,338 = �
Assessment - 272,049 285,885 (13,836) -
Insurance 45,000 37,955 7,045
Planning - 194,313 192,049 2,264 -
Legal - 194,773 196,882 (2,109) - '
Personnel - `109,411 107,180 2,231 -
Economic develop and code enforcement - 538,878 540,642 (1,764) -
Total general government - 3,526,637 3,454,345 72,292 -
Conrinued on facing page �
69
Schedule A-2(con'tl
City of Bangor, Maine
Statement of Revenues, Expenditures, and
Changes in Unreserved/Undesignated Fund Balance-Budget and Actuai-Budgetary Basis
General Fund
For the Fiscal Year Ended June 30, 1998
Balances
Carried Variance
07/O1/97 Budget Actual Surplus Carried
Exnenditures(con'tl:
Public safety:
Police - 4,583,150 4,645,516 (62,366) -
Fire 30,331 5,799,289 5,716,844 112,776 -
Total public safety 30,331 10,382,439 10,362,360 50,410 -
Health, welfare, and recreation
Health and welfare - 1,777,893 1,757,148 20,745 -
Parks and recreation - 830,468 923,430 (92,962) -
Total health, welfare and recreation - 2,608,361 2,680,578 (72,21� -
Public buildings and services:
Public services 15,000 7,536,579 7,648,048 (96,469) -
Total public buildings and services 15,000 7,536,579 7,648,048 (96,469) -
Other agencies:
Taxes paid to county - 1,172,919 1,172,919 - -
Private Schooi services - 131,784 119,864 11,920 -
Downtown Development District - 41,224 41,224 - -
Other agencies 80,011 55,000 115,128 - 19,883
Public library - 782,456 782,456 - -
Totalother agencies 80,011 2,183,383 2,231,591 11,920 19,883
Education:
Regular 197,621 26,088,837 26,027,743 - 258,715
Adult education 54,633 581,088 579,711 - 56,010
Specialrevenue 69,119 1,157,952 1,112,817 - 114,254
Schoollunch 27,370 919,515 870,622 - 76,263
Trustand agency 118,361 1,454,442 1,600,026 - (27,223)
Totaleducation 467,104 30,201,834 30,190,919 - 478,019
Other appropriations:
Pensions and other fringe benefits - 88,055 17,900 70,155 -
Contingent - 12,000 3,143 8,857 -
Debtservice - 1,328,931 1,335,405 (6,474) -
Tax incremental financing payments - 378,822 368,762 10,060 -
Total other appropriations � - 1,807;808 1,725,210 82,598 -
Totalexpenditures 592,446 58,247,041 58,293,051 48,534 497,902
Excess (deficiency)of revenues
overexpenditures (592,446) 227,446 1,547,493 897,097 1,015,396
Continued on following page
'70
Sshedule 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 Yeaz Ended June 30, 1998
Balances
Carried Variance
07/O1/97 Budget Actual Surplus Carried
Other financing sources (�):
Appropriated from designated fund balances - 533,731 333,731 - (200,000)
Appropriation from undesignated fiuid balance - 430,626 - (430,626) -
Sale of assets - 3,000 23,459 20,459 -
General obligation debt - 280,000 280,000 - -
Transfers to other funds - (601,300) (601,300) - -
Transfers from other funds - 54,000 54,000 - -
Operating subsidy - (927,503) (927,503) - -
Total other financing sources (uses) - (227,446) (837,613) (410,167) (200,000)
Excess (deficiency)of revenues over
expenditures and other sources (uses) ($592,446) - $709,880 486,930 $815,396
Unreserved/Undesignated fund balance, July 1 3,658,172
Appropriation to designated for subsequent yeazs (200,000)
Unreserved/Undesignated fund balance, June 30 $3,945,102
71
Special Revenue Funds �
Special Revenue funds-aie used to account for specific revenues that are legally restricted to expenditures
for particular purposes. ,
The following are fhe City's Special Revenue funds:
Community Development - Accounts for federal grants obtained and expended under the Housing
Block Grant and Commun�ty Development Act of 1974, as amended, for the
� . � development of viable urban communities.
, . . ,
i:, ,.
Urban Development +. ' - Accounts for federal grants obtained and expended under the Housing
Action Grant and Community Development Act of 1974, as amended, for the
redevelopment of the downtown commercial core of the City.
Economic Incentive ,. - Accounts for low interest loans to business's within the City of Bangor
Revolving Loan Fu�zd for establishment, expansion or redevelopment purposes. 7ob 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 Communiry
Developrnent Block Grant Program.
Grant Fund - Accounts for federal and state grants that are legally restricted to
expenditures allowable by the grantor agency.
Schedule B-1
City of Bangor, Maine
Combining Balance Sheet
Special Revenue Funds
June 30, 1998
(with Compazative Totals for June 30, 1997)
Economic
Community ' Urban Incentive
Development Development Revolving Grant Totals
Block Grants Action Grants Loan Fund Fund 1998 1997
Assets:
Cash $916 $208 $35,511 $122 $36,757 ($288,783)
Investments - - - 35,485 35,485 $45,650
Accounts receivable - - - 6,820 6,820 -
Loans receivable 2,703,427 1,115,131 251,089 - 4,069,647 4,025,974
Allowance for uncollectible - (130,131) - - (130,131) (130,131)
Due from other governments 305,685 - - 153,852 459,537 338,696
Prepaid items 16,108 - - - 16,108 17,574
Totalassets $3,026,136 $985,208 $286,600 $196,279 $4,494,223 $4,008,980
I.i • •ties:
Accounts payable $43,432 - - $23,480 $66,912 $45,545
Amounts held for others - - - - - 659
Deferred revenue 2,703,427 985,000 251,089 - 3,939,516 3,895,843
Due to rehabilitation recipients 5,559 - - - 5,559 83,379
Due to other funds 335,000 - - 107,000 442,000 -
Total Liabilities 3,087,418 985,000 251,089 130,480 4,453,987 4,025,426
�nd balances:
Reserved for:
Encumbrances 24,512 - - 6,448 30,960 70,935
Prepaid items 16,108 - - - 16,108 -
Unreserved, undesignated (101,902) 208 35,511 59,351 (6,832) (87,381)
Total fund balances (61,282) 208 35,511 65,799 40,236 (16,446)
Total liabilities and fund balances $3,026,136 $985,208 $286,600 $196,279 $4,494,223 �4,008,980
72
Schedule B-2
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances
Special Revenue Funds
, For the Fiscal Year ended June 30, 1998
Economic
Communiry Urban Incentive
Development Development Revolving Grant
Block Grants Action Grants Loan Fund Fund Total
Revenues•
Intergovemmental $1,292,194 - - $3,039,282 $4,331,476
Charges for services - - - 317,360 317,360
Program income 306,096 - 31,860 2,113 340,069
Other 3,945 6 308 3,040 7,299
Totalrevenues 1,602,235 6 32,168 3,361,795 4,996,204
E�penditures: �
Acquisition of real property 381,814 - - - 381,814
Public works facilities site unprovements 362,981 - - - 362,981
Business development assistance 66,000 - - - 66,000
Disposition of real property 40,653 - - - 40,653
Administration 229,479 - - - 229,479
Rehabilitation and preservation activities 430,157 - - - 430,157
Planning 30,486 - - - 30,486
Personnel - - - 565,313 565,313
Other 43,683 - - 1,965,678 2,009,361
Bus operations - - - 797,893 797,893
Total expenditures 1,585,253 - - 3,328,884 4,914,137
Excess of revenues over expenditures 16,982 6 32,168 32,911 82,067
Qtb�e�al�ancing sources (usesl:
Transfers to other funds (29,785) - - - (29,785)
Transfers from other funds - - - 4,400 4,400
Total other fmancing sources (uses) (29,785) - - 4,400 (25,385)
Excess (deficiency)of revenues over
expenditures and other financing uses (12,803) 6 32,168 • 37,311 56,682
Fund balances/(deficit), July 1 (48,479) 202 3,343 28,488 (16,446)
Fund balances, June 30 ($61,282) $208 $35,511 $65,799 $40,236
73
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Capital Pr��ects Fund -
The Capital Projects fund is used account for the acquisition and construction of major capital facilities
�ther than those financed by praprietary funds and trust Funds`.
�.
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.
Schedule C-1
City of Bangor, Maine
Balance Sheet
Capital Projects Fund
June 30, 1998 and 1997
1998 1997
�s��.�:
Cash $37,855 $487,241
Deferred special assessments receivable 30,130 30,130
Due from other governments 304,794 38,403
Investment of bond proceeds 1,657,950 1,984,455
Total assets $2,030,729 $2,540,229
Liabilities•
Accounts payable $97,936 $626,572
Amounts held for others . 16,850 16,850
Total liabilities 114,786 643,422
Fund Balances•
Reserved for encumbrances 391,743 636,789
Unreserved:
Designated for subsequent years 1,216,845 1,128,253
Undesignated:
Deferred special assessments 30,130 30,130
Future construction - General Fund 187,730 41,191
Future construction - School department 89,495 60,444
Total fund balances 1,915,943 1,896,807
Total liabilities and fund balances $2,030,729 $2,540,229
74
Schedule C-2
City of Bangor, Maine
Combining Statement of Revenues, Expenditures,
and Changes in Fund Balance
Capital Projects Fund
For the Fiscal Year Ended June 30, 1998
Revenues:
Intergovernmental $890,650
Revenue from use of money and property 182,157
Other 17,612
Total revenues 1,090,419
Expenditures•
Capital additions 5,776,864
Landfill closure and postclosure care costs 87,276
Debt service 2,500,000
Total expenditures 8,364,140
Deficiency of revenues over expenditures (7,273,721)
Other financing sQ��es luse�;
General obligation debt 6,772,000
Transfers to other funds (117,667)
Transfers from other funds 638,724
Total other financing sources 7,293,057
Excess of revenues and sources over expenditures and other uses 19,336
Fund balance, July 1 1,896,607
Fund balance, June 30 $1,915,943
75
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 - This fund accounts for the costs of construction and operation of the Sewage
Treatment Plant, the City sewer system, and sewer separation activities, and is
self-supported throuah sewer user fees.
Airport Fund - This fund accounts for the operation of Bangor International Airport. The
principal sources of revenues are landing fees and the sale of aviation fuel.
Other revenue sources include lease payments for the use of terminal space and
non-aviation industrial buildings.
Park Woods - This fund accounts for the rental of 60 units of surplus tiousing received from
the f�deral aovernment pursuant to the McKinney Homeless Assistance Act.
The principal source of revenue is rental income.
City Nursing Facility - This fund accounts for the operation of a City-owned nursin� home. This is a
61 bed facility, and princi�al revenue sources are Medicaid and rental income
from excess space. The current facility was the base hospital at the former
Dow Air Force Base, which closed in 1969.
Parking Fund - This fund accounts for the operation of the City-owned parking lots and the
Pickering Square Garage. Revenue sources include monthly lease payments for
parking spaces, hourly/daily parking fees, and fines and waiver fees for parking
violations. Certain of these facilities are operated under a private management
contract.
Bass Park Fund - This fund accounts for the operation of the Bangor Auditorium, Banaor 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 acquired by
to the City. Its purpose is to promote economic growth within the City. The
principal source of revenue is rental income.
City of Bangor, Maine
Combining Balance Sheet
Enterprise Funds
June 30, 1998
(with Compazative Totals for June 30, 1997)
Sewer
Utility Airport Park
Fund Fund Woods
. A.ssets:
Current assets:
Cash $604,700 $364,266 $806
Investments. 3,115,905 7,680,402 -
Accounts receivable 1,589,055 1,403,817 -
- Less allowance for estimated
uncollectible accounts 22,601 175,300 -
Net accounts receivable 1,566,454 1,228,517 -
Due from water district 149,474 - -
Due from other governments - 526,472 -
Inventories, at cost 15,'739 74,929 -
Prepaid items 4,788 2,224 -
Total current assets 5,457,060 9,876,810 806
Property, plant and equipment:
Land 683,895 - -
Buildings, plant and equipment 32,053,627 - 2,254,137
Pipelines and mains 32,599,450 - -
Aircraft operational assets - 187,801,305 -
Parking structures - - -
Construction in process 4,500,451 2,631,785 -
69,837,423 190,433,090 2,254,137
Less accumulated depreciation 16,595,192 73,355,157 290,761
Net property, plant and equipment 53,242,231 117,077,933 1,963,376
Other assets:
Investments - 9,404,843 -
Defened special assessments receivable 115,031 - -
Investment of bond proceeds 303,669 539,330 -
Deposits - - 15,000
Investment held by bond trustee 400,657 - -
Loans receivable - 1,758,907 -
Operating rights (net of accumulated
amortization of$1,040,787 in 1998 and
$993,658 in 1997) - 259,213 -
Bond issuance costs (net of accumulated
amortization of$145,271 in 1998 and
$124,518 in 1997) 269,791 - -
Property held for resale - - -
Total assets _$59,788,439 $138,917,036 $1,979,182
Continued on facing page
76
Schedule D-1
City Municipal Economic
Nursing Parking Bass Park Golf Development Totals
Faciliry Fund Fund Course Fund 1998 1997
$1,053 $257,090 $1,971 $326,781 $13 $1,556,680 $2,265,420
11,259 30,150 - 140,136 15,197 10,993,049 6,819,960
388,635 9,024 142,229 30 - 3,532,790 3,896,649
73,471 4,876 28,077 - - 304,325 502,657
315,164 4,148 114,152 30 - 3,228,465 3,393,992
- - - - - 149,474 155,945
- - - - - 526,472 -
11,810 - 10,706 - - 113,184 144,467
2,100 - 28,966 1,260 - 39,338 54,766
341,386 291,388 155,795 468,207 15,210 16,606,662 12,834,550
39,575 - 228,572 27,767 - 979,809 966,042
2,843,235 - 5,301,061 1,175,924 1,413,226 45,041,210 44,418,975
- - - - - 32,599,450 32,198,669
- - - - - 187,801,305 187,650,187
- 6,459,608 - - - 6,459,608 6,459,608
60,793 4,141 281,958 10,820 710,033 8,199,981 3,315,453
2,943,603 6,463,749 5,811,591 1,214,511 2,123,259 281,081,363 275,008,934
2,305,523 2,910,351 3,700,713 414,189 38,589 99,610,475 91,973,098
638,080 3,553,398 2,110,878 800,322 2,084,670 181,470,888 183,035,836
- - - - - 9,404,843 8,481,056
- - - - - 115,031 115,031
37,821 - 347,525 - - 1,228,345 506,744
- - - - - 15,000 15,000
- - - - - 400,657 � 610,226
- - - - - 1,758,907 1,522,535
- - - - - 259,213 306,342
- - - - - 269,791 290,544
- - - - 1,300,000 1,300,000 -
$1 017 287 $3 844 786 $2 614 198 $1 268 529 $3 399 880 $212 829 337 $207 717 864
77
City of Bangor, Maine
Combining Balance Sheet
Enterprise Funds
June 30, 1998
(with Comparative Totals for June 30, 1997)
Sewer
Utility Airport Park
Fund Fund Woods
Liabilities and Ftind Eq�_
Current liabilities:
Accounts payable $152,989 $1,402,698 $27,076
Workers' compensation 27,437 98,756 3,696
Accrued compensated absences 41,202 171,167 -
Accrued payroll and withholdings 39,006 170,348 2,388
Accrued interest 367,288 81,175 -
Due to other governments - - -
Deferred revenue - 6,351 -
Due to other funds - - 51,888
General obligation debt payable - current 2,184,768 2,094 -
Limited revenue obligation debt payable - current - 220,000 -
Other current liabilities - 52,544 -
Total cunent liabilities 2,812,690 2,205,133 85,048
Long-term liabilities:
Loans payable - - -
Workers' compensation 174,027 58,681 -
Developer payable deposits 58,883 - -
General obligation debt payable 30,946,735 - -
Limited revenue obligation debt payable - 4,940,000 -
Deferred amount on refunding (360,970) - -
Arbitrage payable 102,725 - -
Capital lease obligations - - -
Other long-term liabilities 124,982 - 193,061
Total long-term liabilities 31,046,382 4,998,681 193,061
Totalliabilities 33,859,072 7,203,814 278,109
Fund equity (deficit):
Contributed capital:
City 4,043,061 - -
Federal, state and other 5,464,611 97,324,559 1,780,609
Customers 2,906,999 - -
Total contributed capital 12,414,671 97,324,559 1,780,609
Retained earnings:
Reserved 121;726 3,219,339 -
Reserved for debt service , - 539,308 -
Unreserved 13,392,970 30,630,016 (79,536)
Total retained earnings 13,514,696 34,388,663 (79,536)
Total fund equity (deficit) 25,929,367 131,713,222 1,701,073
Total liabilities and fund equity $59,788,439 $138,917,036 $1,979,182
Continued on facing page
78
Schedule D-1 (con'tl
City Municipal Economic
Nursing Parking Bass Park Golf Development Totals
Facility Fund Fund Course Fund 1998 1997
$71,537 $15,867 $59,059 $3,582 $14,300 $1,747,108 $1,323,891
90,000 3,024 10,000 - - 232,913 255,127
40,136 1,889 20,005 4,170 - 278,569 248,389
93,378 4,009 19,879 12,742 - 341,750 241,359
3,481 86,038 17,310 - 12,992 568,284 577,699
- - - - 1,300,000 1,300,000 28,613
48,921 83,816 78,126 - - 217,214 75,502
851,217 - 1,288,355 - 11,100 2,202,560 2,044,860
26,222 334,177 70,480 - 233,333 2,851,074 -
- - - - - 220,000 3,034,046
11,258 - 1,206 - 7,858 72,866 10,048
1,236,150 528,820 1,564,420 20,494 1,579,583 10,032,338 7,839,534
- - - - 251,990 251,990 259,848
10,000 6,976 - - - 249,684 333,992
- - - - - 58,883 58,883
336,786 3,519,395 1,319,569 - 233,334 36,355,8.19 36,513,487
- - - - - 4,940,000 5,160,000
- (309,571) - - - (670,541) (756,068)
- 11,515 - - - 114,240 107,019
- - - - - - 31,600
- - - - - 318,043 318,043
346,786 3,228,315 1,319,569 - 485,324 41,618,118 42,026,804
1,582,936 3,757,135 2,883,989 20,494 2,064,907 51,650,456 49,866,338
55,009 - 336,456 - - 4,434,526 4,613,378
40,380 87,000 602,892 8,603 1,200,624 106,509,278 106,772,952
- - - - - 2,906,999 3,022,844
95,389 87,000 939,348 8,603 1,200,624 113,850,803 114,409,174
- - - 491,337 - 3,832,402 2,703,528
- - - - . - 539,308 539,308
(661,038) 651 (1,209,139) 748,095 134,349 42,956,368 40,199,516
(661,038) 651 (1,209,139) 1,239,432 134,349 47,328,078 43,442,352
(565,649) 87,651 (269,791) 1,248,035 1,334,973 161,178,881 157,851,526
$1,017,287 $3,844,786 $2,614,198 $1 268 529 $3 399 880 $212 829 337 $207 717 864
79
City of Bangor, Maine
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings
Enterprise Funds
For the Fiscal Year ended June 30, 1998
Sewer
Utility Airport Park
Fund Fund Woods
Onerating revenues:
Charges for services $6,182,035 $10,024,774 $257,518
Qperating exnenses:
Operating expenses other than depreciation
and amortization 2,615,841 7,368,848 272,444
Depreciation and amortization
On assets acquired with own funds 1,150,112 1,475,025 8,282
On assets acquired with grants and contribution 315,083 3,895,571 85,991
Total operating expenses 4,081,036 12,739,444 366,717
Operating income (loss) 2,100,999 (2,714,670) (109,199)
Non_ooerating revenue ex nse :
Interest income 235,633 1,248,086 172
Interest expense (1,477,331) (330,194) -
Miscellaneous income - 401,512 17,383
Total non-operating revenues (expenses) (1,241,698) 1,319,404 17,555
Net income (loss) before operating transfers 859,301 (1,395,266) (91,644)
Transfers from other funds - - -
Operating subsidy - - 39,303
Net income (loss) 859,301 (1,395,266) (52,341)
Add depreciation and amortization on fixed assets
acquired by grants and contributions 315,083 3,895,571 85,991
Increase (decrease) in retained earnings 1,174,384 2,500,305 33,650
Retained earnings (deficit), July 1 12,340,312 31,888,358 (113,186)
Retained earnings (deficit), June 30 $13,514,696 $34,388,663 ($79,536)
Continued on facing page
80
Schedule D-2
City Municipal Economic
Nursing Parking Bass Park Golf Development
Facility Fund Fund Course Fund Total
$2,578,998 $593,463 $1,131,963 $691,468 $173,944 $21,634,163
2,819,051 357,963 1,427,116 344,027 68,905 15,274,195
81,667 290,508 110,845 72,043 8,552 3,197,034
7,952 7,250 163,092 555 19,893 4,495,387
2,908,670 655,721 1,701,053 416,625 97,350 22,966,616
(329,672) (62,258) (569,090) 274,843 76,594 (1,332,453)
6,140 2,733 26,320 14,029 2,175 1,535,288
(19,065) (250,339) (67,761) (1,362) (42,777) (2,188,829)
150 - - - - 419,045
(12,775) (247,606) (41,441) 12,667 (40,602) (234,496)
(342,447) (309,864) (610,531) 287,510 35,992 (1,566,949)
- - - - 29,785 29,785
204,828 371,772 311,600 - - 927,503
(137,619) 61,908 (298,931) 287,510 65,777 (609,661)
7,952 7,250 163,092 555 19,893 4,495,387
(129,667) 69,158 (135,839) 288,065 85,670 3,885,726
(531,371) (68,507) (1,073,300) 951,367 48,679 43,442,352
($661,038) $651 ($1 209 139) $1 239 432 $134 349 $47 328 078
81
City of Bangor, Maine
Combining Statement of Cash Flows
Enterprise Funds
For the Fiscal Year Ended June 30, 1998
Sewer
Utility Airport Park
Fund Fund Woods
Cash flows from operating activities:
Cash received from customers $6,347,026 $10,260,993 $258,178
Cash payments to suppliers for goods and
services (1,590,897) (2,334,730) (216,870)
Cash payments to employees for services (962,815) (4,404,938) (51,235)
Net cash provided by(used in)operating
activities 3,793,314 3,521,325 (9,927)
Cash flows from non-capital�nancing activities:
Interfund loans (repayments) - - (48,398)
Operating subsidies received - - 39,303
Net cash provided by (use in)non-capital
�nancing activities - - (9,095)
Cash flows from ca�ital and related financing
activities•
Proceeds from general obligation debt 3,502,362 - -
Acquisition and construction of capital assets (3,061,279) (3,454,842) (600)
Principal paid on general and limited revenue obligation deb (3,490,568) (243,700) -
Interest paid on general and limited revenue obligation debt (1,495,851) (334,352) -
Proceeds from sale of equipment - 409,811 -
Insurance/claims proceeds - 874,853 17,383
Grant monies received for capital assets 935,523 2,162,061 -
Contributions received for capital assets - - -
Investment of bond proceeds 209,569 (32,586) -
Net cash provided by (used in) capital and
related�nancing activities (3,400,244) (618,755) 16,783
Cash flows from investin�activities:
Net sales (purchases)of investments (1,204,581) (4,291,341) -
Interest on investments 240,603 1,248,086 172
Tax incremental �nancing loan - (280,000) -
Loan repayments - 43,628 -
Net cash provided by (used in) investing
activities (963,978) (3,279,627) 172
Net increase(decrease) in cash (570,908) (377,057) (2,067)
Cash, July 1 1,175,608 741,323 2,873
Cash, June 30 $604,700 $364,266 �806
Schedule of noncash investing, capital and�nancing activities:
During the year, the Economic Development Fund acquired 51 single family surplus housing units from the
Secretary of the Air Force. The City intends to rehabilitate and sell the units to first time home buyers. In so
doing, the City will need to exercise the abrogation provisions within the deed for the fair market value as
determined by the U. S. Government, which is $1,300,000.
Continued on facing page
82
Schedule D-3
City Municipal Economic
Nursing Parking Bass Park Golf Development
Facility Fund Fund Course Fund Total
$2,591,221 $673,427 $1,138,986 $691,468 $173,944 $22,135,243
(476,708) (197,129) (796,219) (136,832) (70,830) (5,820,215)
(2,404,265) (149,239) (607,876) (209,620) - (8,789,988)
(289,752) 327,059 (265,109) 345,016 103,114 7,525,040
162,000 (3,493) 33,000 - 11,100 154,209
204,828 371,772 311,600 - - 927,503
366,828 368,279 344,600 - 11,100 1,081,712
38,000 - 640,000 - - 4,180,362
(85,211) (4,141) (276,179) (58,468) (295,522) (7,236,242)
(25,000) (340,894) (79,998) (60,077) - (4,240,237)
(18,636) (218,214) (57,775) (2,043) (29,785) (2,156,656)
- - - - - 409,811
- - - - - 892,236
- - - - - 3,097,584
10,638 - - - 29,785 40,423
- - - - - 176,983
(80,209) (563,249) 226,048 (120,588) (295,522) (4,835,736)
(38,815) (8,553) (347,525) (43,245) 148,168 (5,785,892)
6,140 4,983 26,320 14,029 2,175 1,542,508
- - - - - (280,000)
- - - - - 43,628
(32,675) (3,570) (321,205) (29,216) 150,343 (4,479,756)
(35,808) 128,519 (15,666) 195,212 (30,965) (708,740)
36,861 128,571 17,637 131,569 30,978 2,265,420
$1 053 $257 090 $1 971 $326 781 $13 $1 556 680
During the year the Economic Development Fund received a downtown building based on the
City's rights under a Community Development Block Grant (CDBG) loan. A portion of the
building is rented to an unrelated third party.
During the yeaz, the Economic Development Fund received a noncash contribution based on the
CDBG Fund's payment of debt service on property held by the Economic Development Fund.
83
City of Bangor, Maine
Combining Statement of Cash Flows
Enterprise Funds
For the Fiscal Year Ended June 30, 1998
Sewer
Utility Airport Park
Fund Fund Woods
Reconciliation of operating income to net cash
provided by (used in��gerating activities:
Operating income (loss) $2,100,999 ($2,714,670) ($109,199)
Adjustments to reconcile operating income to
net cash provided by (used in) operating
activities:
Depreciation and amortization 1,465,195 5,370,596 94,273
Provision for uncollectible accounts - (186,110) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 158,520 236,219 660
(Increase) decrease in due from water district 6,471 - -
(Increase) decrease in inventories 5,582 24,086 -
(Increase) decrease in prepaid items 4,949 11,372 - '
Increase (decrease) in accounts payable 37,005 690,434 3,134
Increase (decrease) in deferred revenue - - -
Increase (decrease) in other current liabilities 14,593 89,398 1,205
Total adjustments 1,692,315 6,235,995 99,272
Net cash provided by (used in) operating activities $3,793,314 $3,521,325 ($9,927)
Continued on facing page
84
Schedule D-3 (con'tZ
City Municipal Economic
Nursing Parking Bass Park Golf Development
Facility Fund Fund Course Fund Total
($329,672) ($62,258) ($569,090) $274,843 $76,594 ($1,332,453)
89,619 297,758 273,937 72,598 28,445 7,692,421
- - (50) - - (186,160)
(14,609) (3,852) (23,252) - - 353,686
- - - - - 6,471
1,983 - (368) - - 31,283
700 - (2,013) 420 - 15,428
332 14,781 16,946 (6,451) (1,925) 754,256
25,622 83,816 30,275 - - 139,713
(63,727) (3,186) 8,506 3,606 - 50,395
39,920 389,317 303,981 70,173 26,520 8,857,493
($289,752) $327,059 ($265 109) $345 016 $103 114 $7 525 040
85
Schedule D-4
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Sewer Utility Fund
For the Fiscal Year Ended June 30, 1998 �
Budget Actual Variance
Revenues:
Charges for services $5,858,627 $6,182,035 $323,408
Operating subsidy - - -
Interest and other revenue 125,000 235,633 110,633
Total revenues 5,983,627 6,417,668 434,041
Expenditures and Encumbrances
Salaries 693,878 720,488 (26,610)
Fringe benefits 252,509 256,918 (4,409)
Supplies 663,055 660,138 2,917
Contractual services 566,277 410,880 155,397
Interfund charges 472,872 442,845 30,027
Miscellaneous 17,800 3,789 14,011
Debt service 3,641,516 3,602,092 39,424
Depreciation 1,227,570 1,150,112 77,458
Outlay 100,800 49,436 51,364
Credits - - -
Total expenditures and encumbrances 7,636,277 7,296,698 339,579
Excess of revenues over expenditures and
encumbrances ($1,652,650) ($879,030) $773,620
86
Schedule D-5
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis ,
, Enterprise Funds - Airport Fund
For the Fiscal Year Ended June 30, 1998
Favorable
(Unfavorable)
Budget Actual Variance
Revenues:
Charges for services $8,652,023 $9,518,217 $866,194
Operating subsidy - - -
Interest and other revenue 850,000 1,317,643 467,643
Total revenues 9,502,023 10,835,860 1,333,837
Expenditures and Encumbrances
Salaries 3,607,702 3,522,931 84,771
Fringe benefits 964,103 946,778 17,325
Supplies 1,160,623 1,197,234 (36,611)
Contractual services 1,232,425 1,128,323 104,102
Interfund charges 774,906 445,859 329,047
Miscellaneous 115,300 117,388 (2,088)
Debt service 578,236 573,895 4,341
Depreciation 1,773,565 1,475,025 298,540
Outlay 552,871 268,278 284,593
Credits - - -
Total expenditures and encumbrances 10,759,731 9,675,711 1,084,020
Excess of revenues over expenditures and
encumbrances ($1,257,708) $1,160,149 $2,417,857
87
Sched. 1�� e p�
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Park Woods
For the Fiscal Year Ended June 30, 1998
Budget Actual Variance
Revenues:
Charges for services $256,506 $257,518 $1,012
Operating subsidy 39,303 39,303 -
Interest and other revenue - 17,555 17,555
Totai revenues 295,809 314,376 18,567
Expenditures and Encumbrances
Salaries . 41,139 42,626 (1,487)
Fringe benefits 9,905 9,814 91
Supplies 70,700 86,611 (15,911)
Contractual services 125,325 131,716 (6,391)
Interfund charges 450 1,299 (849)
Miscellaneous 41,490 - 41,490
Debt service - - -
Depreciation 500 8,282 (7,782)
Outlay 6,800 878 5,922
Credits - - -
Total expenditures and encumbrances 296,309 281,226 15,083
Excess of revenues over expenditures
and encumbrances ($500) $33,150 $33,650
88
Schedule D-7
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - City Nursing Facility
For the Fiscal Year Ended June 30, 1998
Budget Actual Variance
Revenues:
Charges for services $2,721,310 $2,578,998 ($142,312)
Operating subsidy 204,828 204,828 -
Interest and other revenue - 6,290 6,290
Totalrevenues 2,926,138 2,790,116 (136,022)
Expenditures and Encumbrances
Salaries 1,825,795 1,774,497 51,298
Fringe benefits 546,207 564,831 (18,624)
Supplies 299,896 299,047 849
Contractual services 168,615 170,831 (2,216)
Interfund charges 7,730 4,308 3,422
Miscellaneous 1,470 1,495 (25)
Debt service 43,673 44,065 (392)
Depreciation 73,120 81,667 (8,547)
Outlay 32,750 52,522 (19,772)
Credits - - -
Total expenditures and encumbrances 2,999,256 2,993,263 5,993
Excess of revenues over expenditures and
encumbrances ($73,118) ($203,147) ($130,029)
89
Schedule D-8
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Parking Fund
For the Fiscal Year Ended June 30, 1998
Budget Actual Variance
Revenues:
Charges for services $602,000 $593,463 ($8,537)
Operating subsidy 371,772 371,772 -
Interest and other revenue 1,000 2,733 1,733
Total revenues 974,772 967,968 (6,804)
Expenditures and Encumbrances
Salaries 129,060 109,711 19,349
Fringe benefits 39,203 36,342 2,861
Supplies 3,350 2,827 523
Contractual services 161,626 163,986 (2,360)
Interfund charges 77,200 44,897 32,303
Miscellaneous - - -
Debt service 564,333 591,233 (26,900)
Depreciation 300,111 290,508 9,603
Outlay - 200 (200)
Credits - - -
Total expenditures and encumbrances 1,274,883 1,239,704 35,179
Excess of revenues over expenditures and
encumbrances ($300,111) ($271,736) $28,375
90
Schedule D-9
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Bass Park Fund
For the Fiscal Year Ended June 30, 1998
Budget Actual Variance
Revenues:
Charges for services $1,181,650 $1,131,963 ($49,687)
Operating subsidy 311,600 311,600 -
Interest and other revenue - 26,320 26,320
Total revenues 1,493,250 1,469,883 (23,367)
Expenditures and Encumbrances
Salaries 495,383 505,799 (10,416)
Fringe benefits 119,284 110,072 9,212
Supplies 180,225 195,034 (14,809)
Contractual services 407,038 461,467 (54,429)
Interfund charges 103,325 110,643 (7,318)
Miscellaneous 60,000 65,364 (5,364)
Debt service 140,245 147,759 (7,514)
Depreciation 100,181 110,845 (10,664)
Outlay 9,750 7,665 2,085
Credits (22,000) (22,000) -
Total expenditures and encumbrances 1,593,431 1,692,648 (99,217)
Excess of revenues over expenditures and
encumbrances ($100,181) ($222,765) ($122,584)
91
Schedule D-10
- City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Municipal Golf Course
For the Fiscal Year Ended June 30, 1998
Budget Actual Variance
Revenues:
Charges for services $589,320 $691,468 $102,148
Operating subsidy - - -
Interest and other revenue 6,000 14,029 8,029
Total revenues 595,320 705,497 110,177
Expenditures and Encumbrances
Salaries 152,998 184,028 (31,030)
Fringe benefits 25,484 29,199 (3,715)
Supplies 48,Q00 53,529 (5,529)
Contractual services 65,216 54,647 10,569
Interfund charges 179,502 22,624 156,878
Miscellaneous - - -
Debt service 62,120 61,439 681
Depreciation 54,425 72,043 (17,618)
Outlay 62,000 51,399 10,601
Credits - - -
Total expenditures and encumbrances 649,745 528,908 120,837
Excess of revenues over expenditures and
encumbrances ($54,425) $176,589 $231,014
92
Schedule D-11
City of Bangor, Maine
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budget Basis
Enterprise Funds - Economic Development Fund
For the Fiscal Year Ended June 30, 1998 �
Budget Actual Variance
Revenues:
Charges for services $173,427 $173,944 $517
Operating subsidy - - -
Interest and other revenue - 257 257
Total revenues 173,427 174,201 774
Expenditures and Encumbrances
Salaries - 82 (82)
Fringe benefits - 6 (6)
Supplies 6,000 19,154 (13,154)
Contractual services 70,861 105,718 (34,857)
Interfund charges 56,000 - 56,000
, Miscellaneous 10,566 18,632 (8,066)
Debt service - 12,992 (12,992)
� Depreciation - 8,552 (8,552)
Outlay 30,000 83,062 (53,062)
Credits - - -
Total expenditures and encumbrances 173,427 248,198 (74,771)
Excess of revenues over expenditures and
encumbrances - ($73,997) ($73,997)
93
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._ Trust and A enc Funds '
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The followmg are the City s Trust and A�ency Funds:
Otlzer Funds - Accounts for amounts received fc om various parties to fund the Perpetual Care of I
specitic cemetery plots and to benetit parks, educational and other benevolent causes.
Revolving Loan Accounts for the Sophia Kirstein Student Loan F��nd. The fund was established to �
Funds- provide educational loans to residents of the City of Bangor.
Expendable Accounts for amuunts raised or donated to benefit the Dental Clinic, local parks and to
Trust Funds- purchase thermal imaQing cameras.
Agency Funds - Accounts for assets held by the government in a purely custodial capacity.
Sshedule�1
City of Bangor, Maine
Combining Balance Sheet
Trust and Agency Funds
June 30 ,1998
(with Comparative Totals for June 30, 1997)
Nonexpendable Trust Funds
Other Revolving Expendable Agency Totals
Funds Loan Funds Total Trust Funds Funds 1998 1997
A�s�.
Cash - - - - $240,017 $240,017 $71,922
Investments 877,137 74,510 951,647 124,864 293,732 1,370,243 1,365,908
Receivables: �
Accounts - - - - 420 420 -
Loans - 52,776 52,776 - - 52,776 56,764
Totalassets $877,137 $127,286 $1,004,423 $124,864 $534,169 $1,663,456 $1,494,594
Liabilities•
Accounts payable - - - - $482 $482 $2,992
Amounts held for others - - - - 533,687 533,687 394,064
Total liabilities - - - - 534,169 534,169 397,056
Eund bai_�nces•
Reserved for:•
Loans - 127,286 127,286 - - 127,286 126,062
Endowments 536,221 - 536,221 - - 536,221 529,958
Unreserved, undesignated 340,916 - 340,916 124,864 - 465,780 441,518
Totalfund balances 877,137 127,286 1,004,423 124,864 - 1,129,287 1,097,538
Total liabilities and
fund balances $877,137 $127,286 $1,004,423 $124,864 $534,169 $1,663,456 $1,494,594
94
Schedule E-2
City of Bangor, Maine
Statement of Revenues, Expenditures, and
Changes in Fund Balance
Expendable Trust Funds
For the Fiscal Year Ended June 30, 1998
Revenues•
Revenue from use of money and property $10,124
Contributions 94,394
Total revenues 104,518
Expenditures•
Payments to beneficiaries 82,009
Total expenditures 82,009
Excess of revenues over expenditures 22,509
Other financing us�
Transfers to other funds 14,570
Excess of revenues over expenditures and
other fmancing uses 7,939
Fund balance, July 1 116,925
Fund balance, June 30 �124,864
95
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, 1998
� Other Revolving
Funds Loan Fund Total
Operating revenues:
Interest $84,196 $4,239 $88,435
Lot sales 6,263 - 6,263
Other 1,752 - 1,752
Total operating revenues 92,211 4,239 96,450
Operating ex�enses:
Payments to beneficiaries 2,743 - 2,743
Miscellaneous - 3,015 3,015
Total operating expenses 2,743 3,015 5,758
Net income before operating transfers 89,468 1,224 90,692
Transfers to other funds (76,000) - (76,000)
Transfers from other funds 9,118 - 9,118
Net income 22,586 1,224 23,810
Fund balances, July 1 854,551 126,062 980,613
Fund balances, June 30 $877,137 $127,286 $1,004,423
96
Schedule E-4
City of Bangor, Maine
Combining Statement of Cash Flows
Nonexpendable Trust Funds
For the Fiscal Year Ended June 30, 1998
Other Revolving
Funds Loan Fund Total
Cash flows from o� re ating activities•
Cash payments to suppliers for goods and services - ($3,015) ($3,015)
Other operating cash receipts 17,133 8,509 25,642
Other operating cash payments (78,743) (5,000) (83,743)
Net cash provided by (used in) operating activities (61,610) 494 (61,116)
Cash flows from investing activities•
Net sales (purchases) of investments (22,586) (3,716) (26,302)
Interest on investments 84,196 3,222 87,418
Net cash provided by (used in) investing activities 61,610 (494) 61,116
Net increase (decrease) in cash - - -
Cash, July 1 - - -
Cash, June 30 - - -
Reconciliation of onerating income to ne� cash nrovided by (used in) operating activities:
Operating income $89,468 $1,224 $90,692
Adjustments to reconcile operating income to net cash
provided by (used in) operating activities
Presentation differences - Interest (84,196) - (84,196)
Transfers, net (66,882) - (66,882)
Student loan funds - (730) (730)
Net cash provided by (used in) operating activities $89,468 $494 $89,962
97
Schedule E-5
City of Bangor, Maine
Statement of Changes in Assets and Liabilities
Agency Funds
For the Fiscal Year Ended June 30, 1998
Balance Balance
June 30, 1997 Additions Deletions June 30, 1998
Assets:
Cash $71,922 $1,493,016 $1,324,921 $240,017
Investments 325,134 645,715 677,117 293,732
Accounts receivable - 420 - 420
$397 056 $2 139 151 $2 002 038 $534 169
Liabilities:
Accounts payable $2,992 $676,696 $679,206 $482
Amounts held by agency
fund for others 394,064 816,320 676,697 533,687
$397 056 $1 493 016 $1 355 903 $534 169
� 98
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�eneral Fixed Assets Account Grou �
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The general fixed as�ets �ccount group is used to account for the City's fix��l assets which are not �
accounted for in an enterprise or trust fund. This self-balancing account group is used to establish
accounting controi 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, 1998
General Fixed Assets
Land $5,198,491
School land 950,988
Buildings 5,411,127
School buildings 26,235,769
Vehicles 6,551,780
Machinery and equipment 4,055,513
School other 4,620,026
Construction in progress 7,646,374
Total general fixed assets $60,670,068
I�e�tmen in eneral Fu�ed Assets
General fund $60>670,068
99
Schedule F-2
City of Bangor, Maine
Schedule of General Fixed Assets by Function
June 30, 1998
Machinery
and
Land Buildings Vehicles Equipment Total
General government $3,682,151 $152,568 $9,999 $662,871 $4,507,589
Public safety 131,355 2,128,319 1,314,994 751,590 4,326,258
Health, welfare and `
recreation 1,037,595 1,818,390 - 697,206 3,553,191
Public building and
services 347,390 1,311,850 5,226,787 1,943,846 8,829,873
Education 950,988 26,235,769 - 4,620,026 31,806,783
6,149,479 31,646,896 6,551,780 8,675,539 53,023,694
Construction in `
'� process � � - 5,910,511 372,906 1,362,957 7,646,374 �
Total general fixed
assets $6 149 479 $37 557 407 $6 924 686 $10 038 496 $60 670 068
100
Schedule F-3
City of Bangor, Maine
Schedule of Changes in General Fixed Assets by Function
June 30, 1998
General General
Fixed Assets Fixed Assets
June 30, 1997 Additions Deletions June 30, 1998
General government $4,424,194 $83,395 - $4,507,589
Public safery 4,247,740 78,518 - 4,326,258
Health, welfare and
recreation 3,229,202 323,989 - 3,553,191
Public building and'
services 8,570,624 259,249 - 8,829,873
Education 31,599,507 207,276 - 31,806,783
52,071,267 952,427 - 53,023,694
Construction in
process 4,164,402 3,973,844 491,872 7,646,374
Total general fixed
assets $56,235,669 $4,926,271 $491,872 $60,670,068
101
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Schedule G-1
City of Bangor, Maine
Assessed Valuation, Commitment and Collections
Year Ended June 30, 1998
Valuation•
Land and buildings $1,210,414,700
Personal property 176,756,000
Total valuation $1,387,170,700
Commitment:
Real estate and personal property $1,387,170,700
Tax rate 0.02335
Total commitment 32,390,436
Add:
Supplemental taxes committed 209,627
32,600,063
Less:
Collections - 1998 30,805,625
Abatements 364,524
1998 taxes receivable at June 30; 1998 $1,429,914
102
Schedule G-2
City of Bangor, Maine
Undesignated Fund Balance Sufficiency Calculation
Year Ended June 30, 1998
It is the policy of the City to maintain an undesignated fund balance approximating 7.5% of operating
expenditures. The following table sets forth the calculation as to the sufficiency of the June 30, 1998
undesignated fund balance.
General Fund expenditures/uses (Schedule A-2)
General govemment $3,454,345
Public safety 10,362,360
Health, welfare and recreation 2,680,578
Public buildings and services 7,648,048
Other agencies 2,231,591
Education 30,190,919
Other appropriations 1,725,210
Other uses, gross � 1,528,803
Gross expenditures and uses $59,821,854
General Fund debt service 3,083,582
Net expenditures and uses $56,738,272
Indicated undesignated fund balance @ 7.50% $4,255,370
Actual undesignated fund balance (Schedule A-2) $3,945,102
Actual undesignated fund balance as a percent
of net expenditures and uses 6.95%
Over (under) funded status ($310,268)
103
Statistical Section
INDEX TO STATISTICAL SECTION
Fage
General Fund Sources and Uses
Table 1 General Governmental Revenues- Budgetary Basis - General
Fund Only, Last Ten Fiscal Years 104
Table 2 General Governmental Expenditures - Budgetary Basis - General
Fund Only, Last Ten Fiscal Years 106
Table 3 General Governmental Expenditures/Other Uses and Revenues/Other
Sources - Budgetary Basis - General Fund Only, Last Ten Fiscal Years 108
Pronerty T� Data
Table 4 Assessed and Estimated Market Value, Last Ten Fiscal Years 110
Table 5 Property Tax Levies, Collections and Delinquencies, Last Ten Fiscal Years 112
Table 6 Property Tax Rate Components, Last Ten Fiscal Years 114
Table 7 Principal Taxpayers, June 30, 1998 115
Debt Statistics
Table 8 Computation of Legal Debt Marain, June 30, 1998 116
Table 9 Ratio of Net Bonded General Obligation Debt to Assessed Value and
Net Bonded General Obligation Debt Per Capita; Last Ten Fiscal Years :17
Table 10 Ratio of Annual Debt Service Expenditures for General Fund. General
Obligation Bonded Debt to Total General fund Expenditures, Last Ten
Fiscal Years 118
Table 11 Computation of Direct and Overlapping Debt, June 30, 1998 119
Table 12 Direct and Overlappin� Debt, Last Ten Fiscal Years 120
Table 13 Revenue Bond Coverage, Last Ten Fiscal Years i21
Table 14 Debt Service Requirements to Maturity - All Bonded Debt, June 30, i998 i22
Table 15 Self Supporting and Tax Supported General Obligation Debt, June 30, 1998 123
Defined Benefit Pension Plan
Table 16 Defined Bene�t Pension Plan - City and Employee Rates and
Contributions, Last Ten Fiscal Years 124
Table 17 Defined Benefit Pension Plan, Unfunded Liability Amortization 126
Demogranhic, Economic and Miscellaneous Data
Table 18 Public School Enrollment, Last Ten School Years 127
Table 19 Educational Attainment - Persons Age 18 and Over, Calendar 1997 128
Table 20 Employment Composition, Last Ten Calendar Years 130
Table 21 Employment Data, Last Ten Calendar Years 132
� Table 22 Major Employers - Bangor and Bangor MSA, Calendar 1997 133
Table 23 Residential and Commercial Building Permits and Bank Deposits, Last
Ten Calendar Years 134
Table 24 Ten Largest Current Construction Projects, June 30, 1998 135
Table 25 Various Demographic Data, 1990 Census 136
Table 26 Taxable Retail Sales, Last Ten Calendar Years 138
Table 27 Miscellaneous Data 139
City of Bangor, Maine
General Governmental Revenues; Budgetary Basis*
General Fund Only
Last Ten Fiscal Years
T�Revenues
��
Fiscal Real Personal Total Tax Intergov-
Year Pro e _ Pron� Excise Revenue ernmental
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 14,513,524
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
1998 27,750,306 4,224,568 3,09�,072 35,069,946 16,233,583
* Amounts appear in Schedule A-2.
** "Reimbursements"were primarily grants for human services, which were reclassified as
intergovernment revenue be�inning in fiscal 1993.
Continued on Facing Page
104
Table 1
Non-T�Revenues
Licenses/ Charges for Fines and Use of Money Reimburse- Total
Permits Services Forfeitures And Pro�ertv ments** Revenues
$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,�52 6,936,668 54,132 911,491 - 55,597,603
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
433,449 7,529,144 28,193 546,229 - 59,840,544
105
City of Bangor, Maine
General Governmental Expenditures, Budgetary Basis*
General Fund Only
Last Ten Fiscal Years
Health
Fiscal General Public and Parks and Public
Year Government Safe Welfare Recreation Services
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 3,340,732J 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
1998 3,454,345 10,362,360 1,757,148 923,430 7,648,048
*Amounts appear in Schedule A-2
** "Other" includes recreation district tax,contingency,TIF-related payments,
pensions and other fringes.
***"Other Agencies"includes Penobscot County taxes and support to the Bangor
Public Library and the Bangor Convention and Visitors Bureau.
Continued on Facing Page
106
Table 2
Total
Debt Other General Fund
Education Service Other** A�encies*** Ex�enditures
$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
30,190,919 1,335,405 389,805 2,231,591 58,293,051
107
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
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
1998 - 1,528,803 1,528,803 59,821,854
*Amounts appear in Schedule A-2.
Continued on Facing Page
108
Table 3
Other Sources
Excess(Deficiency)
Total Of Revenues/Other
Appropriations Operating General Fund Sources Over
From Transfers In Total Other Revenues Expenditures/
Fund Balance And Other Sources And Sources Other Uses
$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 1,010,068
26,328 108,179 134,507 55;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 58,138,528 570,003
333,731 357,459 691,190 60,531,734 709,880
109
Table 4
City of Bangor, Maine
Assessed and Estimated Market Value
Last Ten Fiscal Years
Assessed and Estimated Market Value*
Fiscal Real Personal Percent
Year Pron� Pro e Total Chan e
1989 $927,665,500 $94,536,200 $1,022,201,700 NA
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
1998 1,210,414,700 176,756,000 1,387,170,700 1.74
* It is City policy to assess at 100%of estimated market value.
110
City of Bangor,Maine
Property Ta�c Levies, Collections and Delinquencies*
Last Ten Fiscal Years
Current
Collections
Fiscal Gross Tax Net T� Current As Percent Of
Year Levy** Abatements** Lev Collections** Net Lew
1989 $20,213,141 $348,683 $19,864,458 $19,124,842 96.28%
1990 21,071,913 442,825 20,629,088 19,765,915 95.82
1991 23,097,868 194,635 22,903,233 21,313,338 93.06
1992 26,447,878 180,157 26,267,721 24,316,637 92.57
1993 27,118,624 105,234 27,013,390 25,020,672 92.62
1994 28,549,008 380,322 28,168,686 26,499,976 94.08
1995 30,305,921 323,102 29,982,819 28,250,549 94.22
1996 31,084,237 341,860 30,742,377 29,297,048 95.30
1997 31,437,529 395,775 31,041,754 29,481,717 94.97
1998 32,600,063 364,524 32,235,539 30,805,625 95.56
* The presentation of these amounts has been changed from previous years. Prior to 1998,current
collections had included, as amounts collected,abatements granted during the year. Beginning with
this year's presentation,abatements have been subtracted from the Gross Taat Levy to yield a Net
Tax Levy. Thus,only current year taxes actually collected during the year are considered current
collections. Previous years'amounts have been restated to reflect this change in presentation,
the effect of which is to reduce slightly the previously-reported current collections percentage.
** Amounts can be found in Schedule G-1.
Continued on Facing Page
112
Table 5
. Ratio Of Outstanding Ratio of
Delinquent Total Total T� Current Year Current Year
Tax Tax Collections Delinquent Delinquencies
, Collections Collections To Lew Taxes** To Lew
- $512,602 $19,637,444 98.86% $739,616 3.72%
467,573 20,233,488 98.08 863,173 4.18 ,
854,272 22,167,610 96.79 1,589,895 6.94
1,402,235 25,718,8'72 97.9I 1,951,084 7.43
1,994,355 27,015,027 100.01 1,992,718 7.38
2,024,862 28,524,838 101.26 1,668,710 5.92
1,680,210 29,930,759 99.83 1,732,270 5.78
1,469,986 30,767,034 100.08 1,445,329 4.70
1,570,081 31,051,798 100.03 1,560,037 5.03
1,543,779 32,349,404 100.35 1,429,914 4.44
. 113
Table 6
City of Bangor, Maine
Property Tax Rate Components
(In Dollars Per Thousand of Assessed Value)
Last Ten Fiscal Years
General General
Fiscal City Fund Debt Penobscot Total Tax
Year Government Service Education Coun Mill Rate
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 23.0�
1996 9.32 1.46 11.51 0.86 23.1�
1997 9.35 1.34 11.33 0.88 22.90
1998 9.64 1.28 11.57 0.86 23.3�
114
Table 7
City of Bangor, Maine
Principal Ta�cpayers
June 30, 1998
� Percent Cumula-
Assessed of tive
Firm Tvpe of Business Value Ta�c Base Percent
BANMAK Associates Shopping mall $39,721,500 2.86% 2.86%
General Electric* Steam turbine manufacturer 35,252,300 2.54 5.40
Bangor Hydro-Electric Utility 23,698,600 1.71 7.11
Wal Mart Stores, Inc. Retailer 15,450;500 1.11 8.22
Webber Oil Company Fuel distributor 11,862,700 0.86 9.08
Bangor Airport Mall Trust Shopping mall 11,474,700 0.83 9.91
Cabrel Company Real estate interests 9,292,300 0.67 10.�8
Fleet Bank of Maine Commercial bank 7,737,300 0.56 11.14
Judson Grant Holdings Real estate interests 6,913,000 0.50 11.64
Stillwater Realty Trust Real estate interests 6.524,500 0.47 12.11
Totals $167_922,4QQ 12_I 1% ��
*Net of$27,092,900 of tax increment financing assets
115
Table 8
City of Bangor,Maine
Computation of Legal Debt Margin
June 30, 1998
Total State Valuation $1,392,350,000
Debt Limitation:
15% of State Valuation $208,852,500
Debt Applicable to Debt Limitation:
Bonded General Obli ation Debt
As a Percent of
Le al Maximum
r pollar State
4� �eZcellta� AmQunt Amoullt Ma�cimum Valuation
Municipal 7.50% $104,426,250 $15,501,118 14.84% 1.11%
Airport 3.00 41,770,500 2,094 0.01 0.00
School 10.00 139,235,000 12,760,737 9.16 0.92
Sewer 7.50 104.426,250 33,131,503 31.73 2.38
Total Bonded Debt Applicable
To Debt Limit: �61,�9.5..4_52 4.41%
Margin for Additionai Borrowing: �147 g57 04g
116
Table
City of Bangor, Maine
Ratio of Net Bonded General Obligation Debt to Assessed Value
And Net Bonded General Obligation Debt Per Capita
Last Ten Fiscal Years
Ratio of Net Bonded Debt
� Assessed Net Bonded To Assessed Per
Fiscal_Y_ear Po�ulation* Valu.e GO Debt** S1aLu� S�a 'ta
1989 33,061 $1,022,201,700 $21,641,128 2.12% $654.58
1990 33,176 1,183,629,000 22,154,320 1.87 667.78
1991 33,301 1,220,826,100 20,541,297 1.68 616.84
1992 32,516 1,241,555,000 21,075,758 1.70 648.17
1993 32,027 1,266,015,200 25,421,593 2.01 793.76
1994 32,437 1,292,838,100 27,033,359 2.09 833.41
1995 32,497 1,305,791,000 24,198,270 1.85 744.63
1996 32,659 1,340,976,800 24,937,760 1.86 763.�7
1997 32,986 1,363,463,500 25,763,268 1.89 781.03
1998 33,151 1,387,170,700 28,261,855 2.04 852.52
* Source: Maine Department of Human Services
**Net Bonded General Obligation Debt consists of all non-self supporting�eneral obli�ation debt,and
excludes all sewer and airport debt. At year end FY 98,these excluded amounts aggregated
to$33,133,597. �
117
Table 10
City of Bangor, Maine
Ratio of Annual Debt Service Expenditures
For General Fund, General Obligation Bonded Debt
To Total General Fund Expenditures
Last Ten Fiscal Years
Ratio of Debt
Debt Service Ex enditures Total General Service to
Fund General Fund
Eis�aLYe� P�in�ip�l Int�e�t TQta1 Expenditure�* F�cgendituze�
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 5�,706,123 5.83
1997 2,039,162 852,963 2,892,125 55,208,150 5.24
1998 2,032,188 1,051,394 3,083,582 58,293,051 5.29
*Budget basis, ScheduleA-2
118
Table l l
City of Bangor, Maine
Computation of Direct and Overlapping Debt
June 30, 1998
Percentage Amount
Total Debt Applicable Applicable
9s,iis��ndin� TczB�ng9r TQB�
Direct D_eb�:
City of Bangor $66,555,452 100.00% $66,555,452
Overla�Zin�Reb_t:
Penobscot County 3,442,534 23.42 806,241
Maine Vocational Region 4 440,000 33.5 147 7 6
, TQtaLDebt $7�_�J� $�_7_,5_99_,489_
119
Table 12
City of Bangor, Maine
Direct and Overlapping Debt
Last Ten Fiscal Years
Overla in Debt Direct and Overla in Debt
Direct Debt Bangor Maine As% of
Fiscal City of Penobscot Recreation Vocational Assessed Per
Year B�n Qr C�tnt Dsstri�t Re ion_4 To�al �lu� ��it�
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 1,760,796 320,000 - 52,485,796 4.30 1,�76.10
1992 55,860,000 1,663,253 240,000 - 57,763,253 4.65 1,776.46
1993 64,027,090 1,598,481 160,000 517,286 66,302,857 5.24 2,070.22
1994 67,959,000 760,461 80,000 527,096 69,326,557 5.36 2,137.27
1995 63,144,763 696,911 - 369,490 64,211,164 4.92 1,97�.91
1996 64,319,213 1,007,864 - 295,592 65,622,669 4.89 2,009.30
1997 64,396,280 811,530 - 221,693 6�,429,503 4.80 1,983.�5
1998 66,555,452 806,241 - 147,796 67,509,489 4.87 2,036.42
120
Table 13
City of Bangor,Maine
Revenue Bond Coverage*
Last Ten Fiscal Years
Net Revenue Calculation
Net Revenue Debt Service Re uirements
Fiscal Gross Operating Available for �
ear Revenues �enses Debt Service Pr�•ncioal Interest Total Covera�e
1989-1992 No Revenue Bond Indebtedness NA
1993 $14,888,630 $10,962,918 $3,925,712 - $176,126 $176,126 2229
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 2,742,529 195,000 339,311 534,311 �.13
1998 10,733,716 7,368,848 3,364,868 205,000 329,603 534,603 6.29 ,
* Revenue debt consists solely of a 1992 limited obligation airport bond issue.
121
Table 14
City of Bangor, Maine
Debt Service Requirements to Maturity
All Bonded Debt
June 30, 1998
Limited Obligation,
General Obli ation Debt Revenue Debt
Fiscal Total
Ye� Inter� Prin�i�al Intetest Prin�' 1 Bes�uir�men�
1999 $2,796,200 $4,942,826 $318,758 $220,000 $8,277,783
2000 2,532,453 4,842,968 306,770 230,000 7,912,191
2001 2,290,849 4,379,004 293,643 245,000 7,208,496
2002 2,096,499 3,745,612 279,308 260,000 6,381,419
2003 1,926,942 3,731,473 263,789 275,000 6,197,203
2004 1,742,712 3,687,599 247,045 290,000 5,967,356
2005 1,573,611 3,684,005 228,890 310,000 5,796,�06
2006 1,403,715 3,685,708 208,958 330,000 5,628,380
2007 1,230,026 3,687,723 187,368 350,000 5,455,116
2008 1,061,031 3,700,067 164,508 370,000 5,295,606
Thereafter �541,320 21308,468 402,667 2.280�000 27.532,45�
Totals $22,_L9�,35� $�iL345�,452 $2,901.,.7_04 $S_.L6Q OQQ $91,652.�L4
122
Table 15
City of Bangor, Maine
Self Supporting and Ta�c Supported General Obligation Debt
June 30, 1998
C�eneraLQbligationDebi_Su ed b.�Pro_nert�TaxRe�enue�
Percent of
- Amouni To�l
General Fund $9,427,822 15.36%
Education 12,760,737 20.78
Non-Self Supporting Enterprise Fund 6 07� 3,296 2282
T��al �2�,2�1,8S� 45_.9�%
�el£�Su�u�ing CLener.aL0l�.ligaiionD�b�
Sewer Fund $33,131,503 53.96%
Airport Fund 2,094 0.00
T_o�al $3�1_3 3_59' S3 92°_/n
TQtaLGenezaLO�li�atiorLDebt $61,325,4_52 109 0910.
123
City of Bangor, Maine
Defined Benefit Pension Plan
City and Employee Rates and Contributions
Last Ten Fiscal Years
Ci Rate Com onents
Normal
Covered Retirement Unfunded Survivors
Fiscal Year a roll Costs Liabili Benefits
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 16,223,381 9.99 10.98 0.13
1993 16,875,589 10.10 11.96 0.12
1994 17,578,929 10.01 11.31 0.11
1995 17,944,029 9.89 10.70 0.17
1996 18,302,798 9.82 9.84 0.18
1997* 18,533,665 9.77 10.26 0.70
1998 18,210,397 9.78 10.96 - 0.70
*Beginning July 1,1996,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 groups,rather than the "blended"rate employed in previous.
years. These groups consist of police and fire personnel eligible to retire
after twenty and twenty five years(Special Plans "1C"and"2C",
respectively),and all other City employees not covered separately
under teachers'pension plans(Regular Plan"A"). In order to
provide uniformity,the fiscal 1997 and 1998 figures are presented
Continued on facing page
124
' Table 16
Ci Contribution Com onents
Normal Em lo ee Contribution
Retirement Unfunded Survivors Total
� Costs Liabili enefits Rate Amount Contribution
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 4,909,79�
1,774,664 1,920,011 30,505 6.50 1,166,362 4,891,542
1,797,335 1,800,995 32,945 6.50 1,189,682 4,820,957
1,809,999 1,902,000 129,736 6.50 1,204,688 5,046,423
1,794,904 1,882,104 127,473 6.50 1,179,511 4,983,992
in the same format as for previous yeazs. The dynamic underlying the number,however,
differs. Specifically,covered payroll is the sum of the three groups'covered payrolls
A specific percentage is applied to each amount to determine the City's
contribution for"Normal Retirement Costs"(8.0%, 19.0%and 11.7%,to plans "A",
"1C"and"2C",respectively). The sum ofthese separate calculations is shown under the
"Normal Retirement Costs column. Additionally,the City's "Unfunded Liability"contribution,
which had previously been expressed as a percentage of covered payroll, is now simply a
monthly lump sum payment as determined by the MSRS. In fiscal 1998,this amount was$158,500.
125
Table 17
City of Bangor, Maine
Defined Benefit Pension Plan
Unfunded Liability Amortization
Previous Schedule New Schedule
Fiscal Beginning Annual Ending Beginning Annual Ending
ear iabili Payment Liabili iabili Payment Liabili
1999 $30,751,234 $1,995,036 31,153,926 $30,751,234 $1,995,036 $31,153,926
2000 31,153,926 2,114,736 31,465,390 31,153,926 2,076,249 31,488,538
2001 31,465,390 2,241,636 31,670,905 31,488,538 2,138,537 31,785,189
2002 31,670,905 2,376,120 31,754,173 31,785,189 2,202,693 32,038,898
2003 31,754,173 2,518,680 31,697,084 32,038,898 2,268,774 32,244,232
2004 31,697,084 2,669,820 31,479,564 32,244,232 2,336,837 32,39�,2�8
2005 31,479,564 2,829,996 31,079,459 32,395,258 2,406,942 32,48�;�11
2006 31,079,459 2,999,796 30,472,236 32,485,511 2,479,150 32,507,944
2007 30,472,236 3,179,784 29,630,821 32,507,944 2,553,525 32,454,878
2008 29,630,821 3,370,560 28,�25,352 32,454,878 2,630,130 32,317,9�7
2009-2017 28,525,352 41,056,176 - 32,317,957 27,521,368 25,51�},196
2018-2026 - - - 25,514,196 35,909,142 -
Totals $67,352,341 $86,518,383
As a Participating Local District in the Maine State Retiement System's Consolidated Plan,the City is allocated a
proportionate share of the Plan's Initial Unpooled Unfunded Actuariaf Liability(IUUAL). At June 30, 1998,
the City's share of the Plan's IUUAL was $30,751,234. Also at June 30, 1998,this amount was scheduled
to be amortized over the next 19 years,with annual payments increasing at the rate of 6%per year. This
amortization schedule is shown under the pertinent caption above. Subsequent to the fiscal year end,the
City received permission to extend this amortization schedule by nine years,thereby decreasing both the
annual payments and their rate of increase. The City has since adopted this revised schedule,�vhich is shown
above under its peRinent caption.
126
Table 18
City of Bangor, Maine
Public School Enrollment
Last Ten School Years
Grades
School Other Total
Year K=3 4=5 6=8 -�12 Enrollment Enrollment
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 4,1�9
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;�94
1998 1,322 645 920 1,302 219 4,408
Source: Maine Department of Education
127
Table 1
City of Bangor, Maine
Educational Attainment, Persons Age 18 and Over
Calendar 1997
Penobscot State of
Bangor Coun Maine
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 16.13 13.51
Associate's degree 6.89 5.18 4.98
Bachelor's degree 11.29 7.82 8.75
Graduate/professional degree 5.53 3.94 3.98
Source:U.S. Census Bureau
128
Bangor, Maine MSA
Employment Composition
Last Ten Calendar Years
Manufacturin
Total Non- Transportation
Calendar Farm Non- And Public
Year Em�lovment Durable Goods Durable Goods Construction Utilities
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
1997 52,334 1,929 2,337 1,969 3,007
Source: Maine State Department of Labor
Continued on facing page
130
Table 20
Non-Manufacturin
Finance,
Wholesale/ Insurance,
Retail Trade Real Estate Services Government
12,920 1,830 11,820 11,250
13,440 1,900 12,400 11,770
13,250 1,770 12,680 12,130
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 15,480 10,950
13,707 1,834 15,935 11,617
131
Table 21
City of Bangor, Maine
Employment Data
Last Ten Calendar Years
Unem lo ment
Calendar
Year Labor Force Employment Number Percentage
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 16,916 801 4.52
1997 17,676 17,828 848 4.80
Source: Maine State Deparhnent of Labor
132
Table 22
Bangor,Maine
Major Employers,Bangor and Bangor MSA
Calendar 1997
Rank Employer Description Emnloyees Location
1 Eastern Maine Medical Regional health care
Center center 2,785 Bangor
. 2 University of Maine Main campus, state
university system 2,170 Orono
3 Bangor Mall Shopping complex 1,600 Bangor
4 City of Bangor Municipal government 1,066 Bangor
5 Community Health and Community social service
Counseling Services provider 813 Bangor
6 St. Joseph Hospital Health care center 807 Bangor
7 Shop& Save Grocery chain
Supermarkets 800 Bangor
8 Fort James Paper Corp. Pulp and tissue producer 625 Old Town
9 Weber Energy Co. Fuel wholesaler/distributor 499 Bangor
10 Eastern Fine Paper, Inc. Paper producer 477 Brewer
11 General Electric Corp. Turbine manufacturer 444 Bangor
12 Bangor Mental Health Regional residentital
Institute mental health center 435 Bangor
13 Acadia Hospital Residential substance
abuse treatment facility 409 Bangor
14 R.H. Foster, Inc. Fuel wholesaler/distributor 360 Hampden
15 Irving Oil Corp. Fuel wholesaler/distributor 350 Bangor
16 MBNA Telemarketing Credit card telemarketer
Systems 300 Orono
17 Wal-Mart Stores Retailer 281 Bangor
18 Bangor Publishing Co. Newspaper publisher 263 Bangor
19 Lemforder Corp. Auto parts manufacturer 250 Brewer
20 Bangor Hydro Electric Utility
Company 250 Bangor
133
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
Year Units Value Units Value Units Value Deposits*
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 ::;;;� 1,152,290.0
1990 439 9,401.5 179 9,947.8 618 19,349.3 ;"> 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 30,264.6 571 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
1995 279 3,203.0 198 17,392.7 477 20,�95.7 ;:;:;; 749,352.0
1996 283 4,013.8 192 18,773.8 475 22,787.6 <;:;:; 762,181.0
1997 303 2,966.9 222 29,368.5 525 32,335.4 ;`;;;; 792,341.8
* Source: Maine Department of Banking
134
Table 24
City of Bangor, Maine
Ten Largest Current Construction Projects
June 30, 1998
Estimated
' Completion Value
Pro�ect Descri�tion Date 000's
1 Bangor Mall Retail/related expansion Nov-98 $6,256.0
2 Abundant Life Church New construction Oct-98 2,348.8
3 Ross Care Medical New construction Jun-98 1,800.0
4 Kathy's Catering New construction Sep-98 1,172.2
5 W.T. Grant's Building Redevelopment Nov-99 600.0
6 Strom Eaton Inc. New construction Sep-98 585.0
7 Brooks Pharmacy New construction Oct-98 �18.4
8 PTI Warehousing Addition Aug-98 330.0
9 Black Bear Properties New construction Dec-98 314.�
10 Joseph Cushman New construction Oct-98 306.4
Totals $L�2�L�
135
City of Bangor, Maine
Various Demographic Data
1990 Census
A e Distribution Household Income
Age
Category Number Percent Categor� Number Percent
<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
55-64 2,624 7.91 $60,000-$74,999 629 4.70
>64 4.523 13.63 >$75,000 812 6.07
Totals 3�,1Z6 1Q9 Q01Q Totals 13 3Z3 1Q0 991n
Median NA Median $24__C7_4
Source:iJ.S. Census Bureau
Continued on facing page
136
� 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 28.35
$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
>$200,000 132 3.12
Totals 4 4_62 10Q9910
Median $7�,90Q
137
Table 26
City of Bangor, Maine
T�able Retail Sales
Last Ten Calendar Years
(000's)
Taxable Retail Sales in:
Ban or as Percent of:
Calendar City of Penobscot State of
Year an or Coun Maine Coun State
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 1,137,309 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
1997 816,298 1,379,967 11,323,937 59.15 7.21
Source: Maine State Planning Office
138
Table 27
"City of Bangor, Maine
Miscellaneous Data
At June 30, 1998
Ci Em loyees
Full time 524
Part time 542
Public Education
Number of schools 10
Number of teachers 368
Number of students 4,408
Police Protection
Number of officers 67
Number of civilian employees 11
Number of stations 1
Number of vehicles 33
Fire Protection
Number of fire fighters 88
Number of civilian employees 11
Number of stations 3
Number of vehicles 20
Insurance Service Organization fire protection rating 2
Parks and Recreation
Number of parks 50
Acres of parkland 600
Indoor ice arena 1
Semi-pro baseball stadium 1
Public golf courses 1.5
Public swimming pools 2
Sewers
Miles of sanitary sewers 115
Miles of storm sewers 35
Miles of combined sewers 40
Public Library
Number of branches 1
Number of volumes . 450,000
139
. OMB No.0348-0057
� FORM SF-SAC U.S.DEPARTMENT OF COMMERCE•BUREAU OF THE CENSUS
��g� ACTING AS COLLECTING AGENT FOR
n Form for Reporting on OFFICEOFMANAGEMENTANDBUDGEf
AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS
Complete this form, as required by OMB Circular A-133, "Audits RETURN To Singie Audit Clearinghouse
of States, Local Governments, and Non-Profit Organizations." 1201 E.1oth street
Jeffersonville, IN 47132
PART I GENERAL INFORMATION (To be completed by auditee, except for/tem 7)
1. Fiscal Year ending date for this submission 2, Type of Circular A-133 audit
Month Day Year
06/30/1998 � �Single audit 2 ❑ Program-specific audit
3. Audit period covered FEDERAL 4. Date received by Federal
� �Annual 3 ❑Other- Months GOVERNMENT clearinghouse
2❑ Biennial USE ONLY
5.Employer ldentification Number(EIN)
a• Auditee EIN 016000020 b. Are multiple 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)
73 Harlow Street 20 Long Creek Drive
City City
Bangor South Portland
State Z�P Code State ZIP Code
ME 04401- ME 04106
c. Auditee contact c. Auditor contact
Nam � e� b�,� /' r Name
�� Glenn S. Kersteen
Title"� �- Title
1J � �'n 1`r Y Principal
d. Aud' ee c tact telephone d. Auditor contact telephone
��U�7 � j� �C 3/<p (207)773-2986
e. Auditee co ct FAX (Optional) e. Auditor contact FAX (Optional)
Zp� '�/ 5-. 207 772-3361
f. Audi e cpntact E-mail (Optional) f. Auditor contact E-mail (Optional)
� �('� � rko@rko-cpas.com
g.AUDITEE CERTI CATION STATEMENT-This is g.AUDITOR STATEMENT- The data elements and
to certify that,to the best of my knowledge and information included in this form are limited to those prescribed
belief,the auditee has:(1)Engaged an auditor to by OMB Circular A-133. The information included in Parts II and III
perform an audit in accordance with the provisions of of the form,except for Part III,Items 5 and 6,was transferred
OMB Circular A-133 for the period described in Part I from the auditors report(s)for the period described in Part I,
Items 1 and 3;(2)the auditor has completed such Items 1 and 3,and is not a substitute for such reports.
audit and presented a signed audit report which
states that the audit was conducted in accordance The auditor has not performed any auditing procedures since
with the provisions of the Circular;and,(3)the the date of the auditor's report(s).A copy of the reporting
information included in Parts I,II and III of this data package required by OMB Circular A-133,which includes the
collection form is accurate and complete. f declare complete auditor's report(s),is available in its entirety from the
that t�?a_foreaoing is true,asid correct. auditee 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
Sig ature of ce ifyi g fficial Date auditor has not pertormed any additional auditing procedures
��Lv@ r'� � �rY2Z7� Month Day Year in connection with the completion of this form.
f e� av I/ 9
Name/Title of rtifying official Signature of auditor Date
Month Day Year
/ /
. EiN: 01600002�
: PART I GENERAL INFORMATION -Continued
8. Indicate whether the auditee has either a Federal cognizant or oversight agency for audit. (Mark(X) one box)
� ❑ Cognizant agency 2 � Oversight agency
9. Name of Federal cognizant or oversight agency for audit (Mark(X) one box)
p� � African Development 83� Federal Emergency 16 � Justice 08 ❑ Peace Corps
Foundation Management Agency
02❑Agency for 34� Federal Mediation and �� ❑ Labor 59 ❑ Small Business
International Conciliation Service 43 � National Aeronautics Administration
. Development and Space 96 � Social Security
10�Agriculture 39� General Services Admirnstration Administration
Administration gg � National Archives and
11 Commerce 19 � State
❑ 93� Health and Human Records Administration
94[� Corporation for Services OS � National Endowment 20 � Transportation
National and 14❑ Housing and Urban for the Arts 21 � Treasury
Community Service Development
12❑ Defense O6 � National Endowment 82 ❑ United States
03� Institute for Museum for the Humanities Information Agency
84❑ Education Services 64 � Veterans Affairs
81 ❑ Ener 04 Inter-American 47 � National Science
9Y � Foundation Foundation � Other- Specify:
66� Environmental �5� Interior 07 � Office of National Drug
Protection Agency Control Policy
PART II 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? 1 � Yes 2 � No-SKIP to Item 5
4. Is any reportable condition reported
as a material weakness? 1 � Yes 2 � No
5. Is a material noncompliance disclosed? 1 ❑ Yes 2 � tvo
PART III FEDERAL PROGRAMS (To be completed by auditor)
1. Type of audit report on major program compliance
1 �Unqualified opinion 2 � Qualified opinion 3 � Adverse opinion 4 �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)?
1 � Yes 2 � No
4. Are there any audit findings required to be reported under§_ .510(a) ?
1 � Yes 2 ❑ No
5. Which Federal Agencies are required to receive the reporting package? (Mark(�all that apply)
01 �African Development 83 � Federal Emergency 16 � Justice 08 ❑ Peace Corps
Foundation ManagementAgency �� � Labor 59 ❑ SmallBusiness
p2 �Agency for 34 � Federal Mediation and Administration
International 43 National Aeornautics
Conciliation Service and S ace 96 Social Security
Development 39 � General Services P Administration
10 �Agriculture Administration
Administration 19 � State
�� ❑Commerce - 89 � National Archives and
93 � Health and Human _ Records Administration 20 � Transportation
94 � Corporation for Services
National and 14 � Housing and Urban 05 � oa the Arts dowment 21 � Treasury
Community Service Development 82 � United States
12 � Defense 03 � Institute for Museum O6 � National Endowment Information Agency
84 � Education Services for the Humanities 64 ❑ Veterans Affairs
81 ❑ Energy 04 � Inter-American 47 � National Science pp � None
Foundation Foundation
66 � Environmental 07 � Office of National Drug ❑ Other- Specify:
Protection Agency �5 ❑ Interior Control Policy
Page 2
FORM SF-SAC(8-9�
FORM SF-SAC (8/97) EIN: ��6����2�
PART III FEDERAL PROGRAMS - Continued �
s. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 7. AUDIT FINDINGS AND QUESTIONED COSTS •
CFDA Name of Federal Amount Ma�or Type of Amount of Internal Audit finding
> > compliance 2 questioned control reference
number program expended program requirement costs findings 3 number(s)
(a) �b) (�) �a) b c �d) �e)
afe and Drug-Free Schools and Communities_State
84.186 Grants $ 46,709 � ❑ Yes � $ N/A 1 ❑ A 3�C N/A
2� No 2� g
Community Development Block Grants/Entitlement
14.218 Grants 1 � Yes � 1 � A 3�C
$ 1,615,038 2� Na $ N/A 2� B N/A
upportive Housing Program
14.235 $ 62,765 � ❑ Yes � $ N/A 1 ❑ A 3�C N/A
2� No 2� B
helter Plus Care
14.238 $ 212,207 1 0 Yes �
1 � q 3�C
2� No $ N/A 2� B N/A
Local Law Enforcement Block Grants
16.592 Progr $ 59,939 2� Nos 0 $ N/A � Q B 3�� N/A
2
Public Safety Partnership and
Community ❑ 1 A 3 C
16.710 $ 94,593 2� Nos O $ N/A 2 Q e � N/A
irport Improvement Program
20.106 $ 2,354,646 � � Yes Q $ N�A 1 � q 3�C N/A
2� No 2� B
Passenger Faciliiy Charges
N20.xxx $ 150,763 2� Nos O $ N/A 2� B 3�� N/A
urveys,Studies,Investigations and Special
66.606 Purpose $ 1,740,712 � � Yes O $ N/A � ❑ A 3�C N/A
2� No 2� B
pecial Supplemental Nutrition Program for
10.557 omen, $ 1,911,419 2� NoS Q $ N/A 2� B 3�C N/A
TOTAL FEDERAL AWARDS EXPENDED -> � Continued �FADDITIONALLINESARENEEDED, PLEASEPHOTOCOPYTHISPAGE
ATTACH ADDITIONAL PAGES TO THE FORM, AND SEE INSTRUCTIONS
' Or other identifying number when the Catalog of Federal Domestic Assistance(CFDA)number is not available.
2 Type of compliance requirement (Enter the/etter(s)of all that apply to audit findings and questioned costs reported for each Federal program.)
A. Activities allowed or unallowed G. Matching, levet of effort, earmarking L. Reporting
B. Allowable costs/cost principles H. Period of availability of funds M. Subrecipient monitoring
C. Cash management I. Procurement N. Special tests and provisions
D. Davis-Bacon Act J. Program income O. None
E. Eligibility K. Real property acquisition and
F. Equipment and real property management relocation assistance
3 Type of internal control finding(Mark(X)all that apply)
A. Material weaknesses B. Reportable conditions C. None reported
FORM SF-SAC(8/97) EIN: 016000020 .
PART III FEDERAL PROGRAMS - Continued •
s. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 7. AUDIT FINDINGS AND QUESTIONED COSTS '
CFDA Name of Federal Type of Amount of Internal Audit finding
1 Amount Major compliance 2 questioned control reference
number program expended program requirement costs findings 3 number(s)
�a) �b) ��) �a) b c �d) �e)
Food Distribution
10.550 $ 41,321 2� Nos O $ N/A 2� B 3�� N/A
chool Breakfast Program
10.553 $ 33,871 � � Yes 0 $ N/A � ❑ A 3�C N/A
2� No 2� B
National School Lunch
10.555 P�o9ram 1 � Yes t � A 3�C
$ 371,280 2 No � $ N/A N/A
❑ 2❑ B
Summer Food Service Program for
10.559 Children $ 17,485 1 Q Yes 0 N/A � ❑ A 3�C
z� No $ Z� B N/A
Capitalization Grants for State � N/A
66.458 Revolvin 1 ❑ Yes 1 ❑ q 3 C
$ 2,638,143 2� No 0 $ N/A 2� B
Public Assistance Grants
83.544 $ 952,512 2� Nos O $ N/A 2 O B 3�c N/A
Childhood Lead Poisoning Prevention
93.197 Proj $ 30,930 � ❑ Yes O $ N/A � ❑ A 3�C N/A
2� No 2� B
Bangor children's Dental Clinic
13.994 $ 167,316 2� Nos O $ N/A 2 a B 3�c N/A
STD/HIV Clinical and Epidemiologic
13.977 ervices $ 143,386 � ❑ Yes � � N/A 1 � A 3�C N/A
2� No 2❑ B
Immunization Program
13.268 $ 119,246 � � Yes � $ N/A 2� B 3�� N/A
2� No
TOTAL FEDERAL AWARDS EXPENDED -> $ Continued �FADDIT/ONAL LINES ARE NEEDED, PLEASE PHOTOCOPY THIS PAGE
ATTACH ADD/TIONAL PAGES TO THE FORM, AND SEE 1NSTRUCTIONS
� Or other identifying number when the Catalog of Federal Domestic Assistance(CFDA)number is not available.
2 Type of compliance requirement (Enter the/etter(s) of all that apply to audit findings and questioned costs reported 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 I. Procurement N. Special tests and provisions
D. Davis-Bacon Act J. Program income O. None
E. Eligibility K. Real property acquisition and
F. Equipment and real property management relocation assistance
3 Type of internal control finding(Mark(X)a/l that apply)
A. Material weaknesses B. Reportable conditions C. None reported
FORM SF-SAC(8/97) EIN: 016000020 �
PART III FEDERAL PROGRAMS - Continued �
s. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 7. AUDIT FINDINGS AND QUESTIONED COSTS '
CFDA Name of Federal Amount Ma'or Type of Amount of Internal Audit finding
number� program ex ended program compliance 2 questioned �di ros 3 reference
�a� �b� p(c� �a� requirbment co�ts �d�9 nu�e�er(s)
Literacy Programs for Prisoners
84.255 $ 12,985 2� Nos O $ N/A � 2� B 3�� N/A
dult Education_State Grant
84.002 Program $ 49,161 2� Nos O $ N/A 2� B 3�C N/A
itle I Grants to Local Educational
84.010 9encies $ 691,907 � � Yes � $ 1 � A 3�C N/A
2 No N/A
❑ 2❑ 6
Migrant Education_Basic State Grant
84.011 Program 1 ❑ Yes 0 N/A � ❑ A 3�C
$ 85,419 2� No $ 2� B N/A
Innovative Education Program
g4 2gg trategies $ 6 859 1 ❑ Yes 0 N/A 1 ❑ A 3�C N/A
2� No $ 2� g
Eisenhower Professional Development State
84.281 Grants 1 ❑ A 3 C
$ 26,115 2� NoS O $ N/A 2� B � N/A
pecial Education_Grants to
84.027 tates
$ 236,114 2� Nos C $ N/A 2� B 3�� 1998-2
Federal Transit Capital and Operating Assistance
20.507 Formula $ 940,239 2� Nos O $ N/A 2� B 3�C N/A
Impact Aid
84.041 $ 2,234 � ❑ Yes NONE $ N/A � ❑ A 3[�c N/A
2� No 2❑ B
$ 1 ❑ Yes $ 1 � q 30 C
2❑ No 2� 6
TOTAL FEDERAL AWARDS EXPENDED -> $ 14,815,314 IFADDITIONAL LINESARENEEDED, PLEASEPHOTOCOPYTHlS PAGE
ATTACH ADDITIONAL PAGES TO THE FORM, AND SEE INSTRUCTIONS
1 Or other identifying number when the Catalog of Federal Domestic Assistance(CFDA) number is not available.
Z Type of compliance requirement (Enter the/etter(s)of all that apply to audit findings and questioned costs reported 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 I. Procurement N. Special tests and provisions
D. Davis-Bacon Act J. Program income O. None
E. Eligibility K. Real property acquisition and
F. Equipment and real property management relocation assistance
3 Type of internal control finding(Mark(X)all that apply)
A. Material weaknesses B. Reportable conditions C. None reported
CITY 4F BANGOR
�'I�V�!l�V�IAL �7'A�°EMENT' PRESENTATI4N
,
Financial Overview
Presented by. KEY PERFORMANCE INDICATORS
Kathy Tyson
F2UNYON K�RSI"�EPd C)�iEL�ET��
7,000
Recently, the City of Bangor completed the
financial audit process. The City received 6,000 �''
an unqualified opinion for fiscal year 1998.
Further, we found no material weaknesses 5,000
in its internal controls.
4,000
We would also mention that the City
applied for and received the Certificate of 3,000
Achievement in Financial Reporting for its
1997 financial statements, and the City 2,000
finance staff has done a remarkable job in
producing that report. 1,000
The remainder ofthis publication is
dedicated to providing you with the -
financial results for fiscal year 1998 as well Cash Invest. o/s taxes Acct. Rec. Due other
as trend informatfon for certain areas. funds
We hope you find this information useful ���7 391 6,172 2,501 2,209 2045
and understandable. Finally, we wish to 01998 1,980 5,498 2,354 2,570 2645
express our appreciation to all the (000's)
members of the City's staff who were so
helpful to us during the audit process.
INSIDE
1. A���t� SUMMARY OF SIGNIFICANT CHANGES
2. Lixbilitics Anci Fund Equit}� GENERAL FUND
3. Re�enues And Espenditure s Tables
-t. Collcctions And Taz Rates
5. Fund Ba�ancc Anahsis • Cash and investments increased overall by $915M. This is due
�►. Retaincd Exrnings- Entcxprisc primarily to the increase in the tax commitment of approximately
Funcls 1.200M as well as an increase in the collection rate.
7. Retaincd Earnings-Sewcr and . Outstanding taxes and liens also decreased as a result of the
Airport Funds and Comp.ir,iti�e increase in collection rate.
Collc�ction Rxtes . Accounts receivable and due from other governments increased by
8. Rc�cnues And Expenditures Chxrts $361 M, and amounts due from Other Funds increased by $600M; of
9. Debt Pcr Capita,Othcr Funds that amount$442M is due from the s ecial revenue funds which is a
xnd Conclusion p
timing difference.
�
«,�,��N ��
� -�-- crrti� �F aaNcoR �
o«r.srrE -
CITY OF BANGOR
GENERAL FUND LIABILITIES
� 40� SUMMARY OF SIGNIFICANT
2,500 , 2 119 2,�s� CHANGES
�;��
2 p22 ���� �; • The most significant liability,
�F�§," 4
°u���: accrued wages, increased by
2,000 �� ,; $385M. This amount
' �"'- represents payroll earned prior
�" •` to June 30th but not yet paid.
�,50o The majority relates to
���Q9 additional days accrued.
sss � �° • Deferred revenue represents
�"�- �°�4 � taxes still unpaid 60 days after
Yi-�f�.l�1
�,000 �s. � 608 608 the end ofthe year. These
� �� - amounts are not recognized as
"' n� p�gg� revenues in the current year.
u�T� Despite a 95.6% collection
500
'e� y= a� ' O 1998 rate, this increased by $72M.
y�, • Accounts payable increased by
� ' �`' approximately $123M.
��� .� .
�
Accts Accrued Deferred Workers
payable wages revenue comp ins.
SUMMARY OF
SIGNIFICANT
GENERAL FUND EQUITY �000�•S CHANGES
• Reserved fund
3,945 balances increased by
3,512 3,658 $322M which includes
3,23� $2,100M for long-term
a,000 � advances to Other
2,429 � - �„
3,000 Z���� ��t' �'�` Funds.
"W":.;� 4'�.�.
�`=," �,� -�ha�'
�a�
2,000 »�ti- � . City undesignated fund
�A" � �` ❑1997
1,000 �'° ��`� O 1998 balance increased by
�,,`< $287M primarily due to
- the current year
surplus and changes in
(1,000) designated balances.
(1,108) �853)
(2,000) • School fund balances
�e���ed �a�aG��y �as�oa� �a�aG�,�y increased by $255M
Oey19 �9�a de�g on a GAAP basis.
pe v�
umrox !�
�� C'ITY OF BANCOR 2
CITY OF BANG� R
GENERAL FUND REVENUES
; , �r ,
axes , " , -, , ,
Licenses, permits 331,150 433,449 102,299
Intergovernmental 15,570,991 16,233,583 662,592
C:harges for services 7,151,903 7,529,1�4 377,241
Other education - - -
Fees and fines 30,000 28,193 (1,807)
Unclassi fied - - -
Investment earnings 643,976 546,229 (97,747)
Sale o f assets 3,000 23,459 20,4�9
Bond proceeds 28U,000 280,000 -
Use of surplus 964,357 333,731 (630,626)
Total revenue 59,721,844 60,477,734 755,890
SUMMARY OF SIGNIFICANT CHANGES
• Tax revenues were more than anticipated as a result of supplemental taxes and an increase in excise taxes of
($193M).
. Intergovernmental revenue exceeded the budget because State Revenue Sharing was greater than anticipated and
the School received unbudgeted Medicaid reimbursements.
. Charges for services reflect $377M more than estimated. Education reported a $302M excess as a result of excess
tuition from outside tuition from outside communities and unbudgeted FEMA funds.
• Variance in the use of surplus is due to the fact of not being able to report use if undesignated as revenue.
GENERAL FUND EXPENDITURES
„
Genera government 3,526,637 3,454,345 72,292
Public buildings & services 7,551,579 7,648,048 (96,�169)
Health, welfare, reereation 2,608,361 2,680,578 (72,217)
Pub[ic safery 10,�12,770 10,362,360 50,-t10
Education 30,668,938 30,190,91) �78,019
lnsuranee and fringe 88,055 17,9011 70,155
Other ageneies 2,263,394 2,231,591 31,803
Unclassifted 12,000 3,143 8,857
Debt serviee 1,328,931 1,335,40i (6,47�)
TIF payments 378,822 368,762 10,06Q
Operating transfers 1,47d,803 1,�i74,803 -
Tota[ expenditures 60,314,290 59,767,854 54G,436
SUMMARY OF SIGNIFICANT CHANGES
• Public services is over expended as a result of extra deicing compounds needed as a result of the harsh winter
and also the change in accrued payroll.
• Education is under budget as a result of an unspent carryover from 1997 of$467,104.
�i�� ��
��� CITY OF BANCOR 3
CITY OF BANGOR
PROPERTY TAX COLLECTION RATES
OBSERVATIONS �oz�ro
• After a slight drop in
the early 1990's, tax 100%
collections of
current taxes 98o�o
remained stable at
94-96% of the
commitment. ggo�o
• In 5 out of the last 6 ;�
years, total 94%
collections have
exceeded 100% of g2%
the commitment.
��'
90% ��
Rt
88%
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
O all years 98.88 98.12 96.82 97.92 100.01 101.25 99.83 100.08100.03100.40
�current years 96.34 95.90 93.12 92.62 92.65 94.15 94.28 95.35 95.04 95.60
PROPERTY TAX RATES
____._ _ _ ___._. _ . ___--_ . . __ __ . .
23.00
: OBSERVATIONS
22.o0
21.00 • Tax rates in Bangor
20.00 have remained
relatively stable over
19.00 the past 5 years.
18.00
17.00
16.00
15.00
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
20.78 19.50 17.75 18.90 21.30 21.40 22.00 23.05 23.15 22.90 23.35
Tax Rate Per Thousand Valuation
iuNrox .��
a���.- CI"1'Y OF BANCOR -�
CITY OF BANGOR
FUND BALANCE ANALYSIS FY 1989 - 1998
10,000
9,000
8,000 '`
7,000
�
6,000 � �'�
�;',
i
5,000 ;
N �
0
0
� 4,000
3,000 �
f �
2,000 - £
R1 �
�
_ �
1,000 }
�`
�:
;'
(1,000)
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
■Reserved 354 300 144 415 716 295 318 201 2,107 2,429
❑Designated 1,803 2,861 2,912 1,642 2,321 2,573 3,169 4,025 2,129 2,659
OUndesig 1,776 689 (763) 824 1,797 3,380 4,082 4,371 3,658 3,945
OBSERVATfON
• Bangor's Reserved fund balances and Designated fund balances have changed
significantly over the past two years due to a reclassification of Due from Other Funds.
Undesignated fund balance has recovered from a deficit in 1991 to a healthy $3,945M in
1998.
lI1NYON .��
�;�.- ciT�� vF a.a!vcoa s
CITY OF BANGOR
UNAPPROPRIATED RETAINED EARNINGS — ENTERPRISE FUNDS
soo
soo
400
200
(200)
(400)
{600)
(800)
(1,000)
(1,200)
(1,400)
1994 1995 1996 1997 1998
❑Park Woods - (21) (132) (113) (80)
❑N ursing Facil. (257) (256) (320) (546) (661)
■Parking Fund (104) (56) (90) (69) 1
❑Bass Park (812) (953) (973) (1,122) (1,209)
■Golf Course 265 375 471 604 748
O Econ. Dev. - - 49 134
OBSERVATION
• Of the eight enterprise funds operated by the City, two have rather
significant deficits. Addressing these shortfalls has become a major thrust
of the City's management. This chart includes the 6 smaller enterprise
funds. The next chart includes the Sewer and Airport funds.
lI7NYON ���
�;�.— C1TY OF BANCOR 6
CITY OF BANG� R
UNAPPROPRIATED RETAINED EARNINGS - SEWER AND AIRPORT FUNDS
35,000 __ __ _.. _ _. _._ _ _ _ _ , _
30,000
�•t
25,000 �z
�.
� �
;��
20,000 ;#�-''
,X�, .:
y ����
� -ahr;,-
o :w��,. �
� 15,000 ( �
���u�
��� �
��.� �� �G �
`ll�-:..: �
10,000 • :
�� `.,
�
.�.
5,000 - •�
� � �
1994 1995 1996 1997 1998
❑SewerFund 8,536 8,894 10,128 12,219 13,393
�Airport 27,250 27,797 28,636 29,178 30,630
TAX COLLECTION RATES COMPARED TO OTHER CITIES
99% - _ 9$:3Q% 98.44%
98%
� 97 g�% OBSERVATION
0
97�O 96.40% � ' • Bangor's tax collection
96��0 95.04% � rate compares
95% somewhat favorably with
; 9 .33 o many cities in Maine of
94% g 10° similar size.
93%
92%
91%
90% -
1997 1998
O Bangor 0 Lewiston ❑Auburn O Portland ■So. Portland
un+rox �%�
� =�—
ciTti� oF B.a�vcoR �
«�..
CITY OF BANGOR
1998 REVENUES AND EXPENDITURES - GENERAL FUND
Intergovernmental
27% Charges for services
12%
Licenses,permits
1%
Fees and fines
0%
Investrnent earnings
r s�, , Sale of assets 1%
� .
��;�� - 0%
f',�
Bond proceeds
0%
Taxes Use of Surplus
58% 1%
OTaxes �Licenses, permits Olntergovernmental
O Charges for services ■Fees and fines O Investment earnings
■Sale of assets O Bond proceeds ■Use of Surplus
�General government �Education �Health, welfare, recreation
❑Public safety ■Insurance and fringe OOther agencies
■Unclassified O Debt service ■Operating transfers
■Public buildings & services ❑TIF payments
Education Health,welfare,
,
�u recreation
5�% u;. .
4%
t;;_ Public safety
' 17%
��
��
f�'" Insurance and fringe
0%
General government Public buildings& Other agencies
0
° services 4%
TIF payments 13%Operating transfers Unclassfied
1% 2°�a Debt service 0%
2%
aur+rox -��
�� %�.— CITY OF BANCOR 8
oaeu.srrs�
CITY OF BANGOR
DEBT PER CAPITA - LAST TEN FISCAL YEARS
_. _ _ . __ _
2,000
1,500
�
� 1,000
500
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
939 1,016 1,514 1,718 1,999 2,095 1,943 1,969 1,983 2,008
OBSERVATION
Bonded debt and debt per capita is relatively unchanged from 1993.
OTHER SIGNIFICANT FUNDS - FUND BALANCES
70,000 _ _ . __ _ _
so,000
;
p ao,000 ���.
0 10,000 '��
0
v -10,000
-30,000
-50,000
-70,000
CDBG UDAG EI-RLF Grants
01997 -48,479 202 3343 28488
01998 -61282 208 35511 65799
FINAL WORDS ' ., �
This prescntation is intended as a tool to assist the City Council and �° � ��; �: �. ,�>
managemcnt in understanding its financial operating results. �` ' {'� " 4 '
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The information contained in this publication should be read in �;, � ,
con�unction with the audited financial statements and ��`
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related disclosures and should not be used for any other purposes �; '� '. ¢��
without the expressed consent of � �" '
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Please contact us at 207-773-2986 or 1-800-486-1784
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20 Long Creek Drive, South Portland, ME 04106 -
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CITY O F � � �"°°•
MAINE ��� 73 HARLOW STREET
� BANGOR,MAINE 04401
FINANCE DEPARTMENT . TE�.2o�/sas-aaoo
Ronald I. Helier
Finance Director
Corrective Action Plan
June 30, 1998
Finding #1998-2 Local entitlement funds will be reviewed to ensure all encumbrances are
liquidated in a timely manner.
Status of Prior Year Findings
Finding #1997-1 School department general ledger accounts are now being reconciled to the
City's general ledger on a timely basis.