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Prepared by: .Debbie Cyr, Finance Director David Little, Tax Collector/Deputy Treasurer CITY OF BANGOR,MAINE Comprehensive Annual Financial Report � Table of Contents For the fiscal year ended June 30,2001 INTRODUCTORY SECTION Pa�e Letter of Transmittal I- 1 Awards and Recognition I- 25 Certificate of Achievement I-27 Organization Chart I- 28 Elected O�cials and Principal Administrative Officers 1 - 29 FINANCIAL SECTION . � . � . _ ' � ' � ''� t`-. Report of Independent Auditors f �;:��- - _ Combined Financial Statements Overview: -`" � l�� . Exhibit Combined Balance Sheet--All Fund Types and Account Groups • , 1 II- 1 Combined Statement of Revenues,Expenditures and Changes in Fund ` �'- ' ' Equity--All Governmental Fund Types and Expendable Trust Funds � �' 2 II -3 Statement of Revenues, Expenditures and Changes in Undesignated • Fund Balance--Budget and Actual--Budgetary Basis--General Fund " � 3 II—4 Combined Statement of Revenues,Expenses and Changes in Retained �,.+'; ` Earnir�gs/Fund Equity--All Proprietary Pund Types and Similar � , � , , Trust Funds , : � , `. 4 II- 5 Combined Statement of Cash Flows--Al1 Proprietary Fund Types and Similar � , Trust Funds 'r S II—6 ' . � Notes to General Purpose Financial Statements ` � II—8 -.� ' , � Schedule General Fund: � ` � Comparative Balance Sheet � � A— 1 II-33 Schedule of Revenues,Expenditures and Changes in Unreserved/Undesignated Fund Balance--Budget and Actual--Budgetary Basis A—2 II - 34 Special Revenue Funds: ' -'�`, -, , '_ Combining Balance Sheet - � �� - B— 1 II-38 , Combining Statement of Revenues,Expenditures and Changes in Fund Equity , B—2 II—39 Capital Projects Fund: Comparative Balance Sheet C— 1 II -40 . Statement of Revenues,Expenditures and Changes in Fund Equity C—2 II-41 Enterprise Funds: Combining Balance Sheet D— 1 II-42 Combining Statement of Revenues,Expenses and Changes in Retained Earnings D—2 II-44 Combining Statement of Cash Flows D—3 II-45 CITY OF BANGOR,MAINE Table of Contents,Continued Schedule Pa�e Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-- Budgetary Basis: Sewer Utility Fund D—4 II-47 Airport Fund D—5 II-48 Park Woods D—6 II-49 City Nursing Facility D—7 II- 50 Parking Fund D—8 II- 51 Bass Park Fund D—9 II - 52 Municipal Golf Course D— 10 II - 53 Economic Development Fund D— 11 II - 54 Trust and Agency Funds: Combining Balance Sheet E— 1 II - 55 Statement of Revenues,Expenditures and Changes in Fund Equity-- Expendable Trust Funds E—2 II- 56 Combining Statement of Revenues,Expenses and Changes in Fund � Equity--Nonexpendable Trust Funds E—3 II - 57 Combining Statement of Cash Flows--Nonexpendable Trust Funds E—4 II - 58 Statement of Changes in Assets and Liabilities--Agency Funds E—5 II - 59 General Fixed Assets Account Group: Schedule of General Fixed Assets By Source F— 1 II - 60 Schedule of General Fixed Assets By Function F—2 II - 61 Schedule of Changes in General Fixed Assets by Function F—3 II - 62 � Other Information: �� Assessed Valuation, Commitment and Collections G— 1 II -63 Undesignated Fund Balance Sufficiency Calculation G—2 II - 64 STATISTICAL SECTION Tables Statistical Tables: General Governmental Revenues--Budgetary Basis, Last Ten Fiscal Years 1 III- 1 General Governmental Expenditures by Function--Budgetary Basis, Last Ten Fiscal Years 2 III-2 General Governmental Expenditures/Other Uses and Revenues/Other Sources--Budgetary Basis,Last Ten Years 3 III-3 Assessed and Estimated Market Value,Last Ten Fiscal Years 4 III-4 Property Tax Levies,Collections and Delinquencies,Last Ten Fiscal Years 5 III- 5 Properly T�Rate Components, Last Ten Fiscal Years 6 III - 6 Principal T�payers,June 30, 2001 7 III—7 Computation of Legal Debt Margin,June 30,2001 8 III - 8 • Ratio of Net Bonded General Obligation Debt to Assessed Value and Net Bonded General Obligation Debt Per Capita,Last Ten Fiscal Years 9 III-9 , CITY OF BANGOR,MAINE Table of Contents,Continued Tables PaEe Ratio of Annual Debt Service Expenditures for General Fund, General Obligation Bonded Debt to Total General Fund Expenditures,Last Ten Fiscal Years 10 III- 10 Computation of Direct and Overlapping Debt,June 30,2001 11 III- 11 Direct and Overlapping Debt,Last Ten Fiscal Years 12 III- 12 Revenue Bond Coverage, Last Ten Fiscal Years 13 III - 13 Debt Service Requirements to Maturity--All Bonded Debt,June 30, 2001 14 III- 14 Self Supporting and Tax Supported General Obligation Debt, June 30, 2001 15 III - 15 Defined Benefit Pension Plan--City and Employee Contributions, Last Ten Fiscal Years - � 16 III - 16 Defined Benefit Pension Plan, Unfunded Liability Amortization � - , 17 III - 17 Public School Enrollment, Last Ten School Years � '� . � � 18 III - 18 Education Attainment--Persons Age 18 aiid Over, Calendar 1998 ' ,. '��" - 19 III- 19 Employment Composition Bangor IVlaine IvISA,Last Ten Calendar Years � 20 III -20 Employment Data,Last Ten Calendar Years . �� 21 IlI- 2l Major Employers--Bangor and Bangor MSA; Calendar 2000 � � 22 III - 22 Residential and Commercial Building Permits and Bank Deposits,Last �, i� Ten Fiscal Years '.>>�+ 23 III - 23 Ten Largest Current Construction Projects, June 30, 2001 24 III -24 Various Demographic Data, 2000 and ]990 Census �r; ti'� 25 III -25 Taxable Retail Sales, Last Ten Calendar,Years � �r26 III-26 , Miscellaneous Data, June 30, 2003 � , _ � � � ' 27 III -27 � - - _ . - � . .. , • . , . ; . - , i . S, ., . . i ' ..i _ _ _ � . �" . �� ' j.� �� . � . / . - 1� ` , �� '�'• i/,' . !/ i. \�!� Introductory Section City of Ban or 207/945-4400 fax 207/945-4446 aine debbie.cyr@bgrme.org www.bgrme.org FINANCE DEPARTMENT Deborah A.Cyr, Finance Director December 26, 2001 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, 2001. In our ongoing efforts to provide greater and more meaningful information to the people of Bangor, yourselves, 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, we intend that this docuinent 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 City's Finance Director. To the best of our knowledge and belief, this data, its presentation and the context 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, 2001, 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 far 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. 73 Harlow Street . Bangor, Maine 04401 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section 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 was second in this category 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 central, 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 2001. The City operates under a Council-Manager form of government, with a nine-member Council elected at-large to staggered three year terms, three of which lapse each year. Councilors are limited by City Charter to two consecutive 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 Manager has been in his position since 1988. The City's schools are governed by a seven-member School Committee. Like the Council, its members are elected at large to staggered three year terms. Unlike the City 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 July 2000. His predecessor retired at the end of fiscal 2000, having served in that capacity since 1987. I-2 City of Bangor,Maine Comprehensive Annual Financiai Report For the Year Ended June 30,2001 Introductory Section FINANCIAL INFORMATION The Finance Director is the City's Chief Financial Officer and Treasurer. As such, she 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, and performing those tasks assigned by the City Manager pertaining to the City's affairs. . 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. 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 conducting 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 budgeting process is structured around its fiscal year, which begins on July 1 st and ends on the following June 30th. The City annually adopts budgets for its general fund and eight enterprise funds through a carefully prescribed process, as described immediately below. 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-t�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. I-3 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section 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. In either case, 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 requirements for 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. Independent 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 performed 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, which 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, properly 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 City's ability to fund various types and levels of losses. 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 ten years, the actuarial firm of Liscord, Ward and Roy has performed this evaluation. I-4 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section � Finally, beginning with fiscal year 2001, the City has employed, on a full time basis, a risk management/safety manager. Prior to this, the City had engaged this individual's services on a contractual basis. This individual's responsibilities continue to 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, 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 matching 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 come due. Typically, funds for this purpose are invested in essentially 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 investments, 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 and quasi-government agencies, both federally guaranteed and otherwise, and occasionally "prime" commercial paper for cash needs within 270 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 overnight collateralized repurchase agreements, and are insured for up to $2.0 million by The Travelers Group. I-5 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section During fiscal year 2001, the City engaged the services of an investment advisor to more actively manage the City's portfolio. Investment decisions among fixed income asset classes are generally made on the basis of relative value at the time the investment is made. Securities typically remain in portfolio until maturity, unless either liquidated for cash flow reasons.or called by the issuer. FISCAL 2001 RESULTS The accompanying general purpose financial statements detail the City's financial results for the fiscal year ended June 30, 2001. As defined therein, and based upon accepted criteria, the financial reporting entity to which these statements apply includes only the City, its departments and its funds. General Fund Status and 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 Welfare, 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 County and several private schools within the City. It accounts for well over two thirds of the City's total revenues and expenditures, and substantially all its non-enterprise fund revenues and expenditures. Balance Sheet: The General Fund Balance Sheet(Exhibit 1) focuses on the City's liquidity, or those assets and liabilities likely to convert to cash, and be paid within the next fiscal year. At the end of fiscal 2001 ("FY01"), the General Fund had $22.2 million in assets. Not all of this, however, is expected to become available in fisca12002 ("FY02"). One such exception is . $1.6 million of the $2.0 million in interfund loans, which are more properly considered long term in nature. (As discussed below, the City has set aside approximately $1.6 million in the designated fund balance as a reserve against these amounts.) Additionally, a substantial but indeterminate portion of taxes receivable will likely remain uncollected and be carried over to subsequent years. These amounts are also more properly considered long term in nature. Eliminating these uncertainties, cash and those amounts likely to become cash and thus available for General Fund use during FY02 minimally approximates $18.0 million, representing a $3.0 million, or 20% increase from the previous year, when $15.0 million was available. This is predominantly attributable to an increase of$3.3 million in pooled cash and investments and a$236 thousand decrease in intergovernmental and non-tax receivables. I-6 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section 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 $6.9 million in liabilities, or a 4.5% increase from the previous year. The increase is solely attributable to accrued wages and benefits payable. This number, however, should be adjusted to reflect that the $22 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.) The amount by which current assets exceed current liabilities equals net current assets, or working capital. Reflecting the adjustments noted above, at fiscal year end this approximated $13.3 million, up 23.1% from FY00's $10.8 million. This is the net amount of the Gerieral Fund's expendable resources expected to be available for operating purposes in the coming year. The General Fund's 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/undesi�nated balances are available and may be appropriated by the Council for any lawful purpose. It is City policy to target these balances at 7.5% of the previous year's General Fund expenditures, net of debt service. At the end of FY01, unreserved and undesignated balances had increased by $800 thousand, to $7.9 million, thus representing 12.4% of General Fund expenditures. This change consists of two components, as shown below. Components of Undesi�nated/Unreserved Fund Balance Changes � Fisca12001 (Dollars in Thousands) - Beginning unreserved/undesignated fund balance $7,079.4 Add.• Excess of revenues and other sources over expenditures and other uses 932.2 Less: Amounts appropriated to designated fund balances to reserve against interfund loans to enterprise funds 141.3 Ending unreserved/undesignated fund balance $7,870.3 I-7 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section Revenues• The General Fund is primarily supported by taxes, intergovernmental revenues and charges for services. As shown in Schedule A-2, FY01 revenues were $68.1 million, which translated into an increase of $2.6 million, or 4.1% from FY00. The following table sets forth the General Fund revenues, their respective percentages of total revenue, and both the amount and percentage change between fiscal 2000 and 2001. General Fund Revenues bv Source FY00 and FY01 (Dollars in Thousands) FY00 FY01 FY00/O1 Change Revenue source Amount % Rev's Amount % Rev's Amount Percent Taxes $37,037.2 56.6% $38,504.3 56.5% $1,467.1 4.0% Intergovernmental 18,936.2 28.6 18,695.1 27.4 (241.1) (1.3) Charges for services 8,147.1 12.7 9,334.0 13.7 1,186.9 14.6 Other revenue 1,346.0 1.8 1,595.2 2.4 2492 18.5 Totals $65,466.5 100.0% $68,128.6 100.0% $2,662.1 4.1% Taxes represent the General Fund's principal source of revenue and consist primarily of real, personal property and excise taxes. As evidenced by the above table, in excess of one half of the total increase in general fund revenues is attributable to increased taxes. The 4.0% increase is a direct result of a 4.2% increase in assessed value coupled with a decrease in the City's tax rate from $23.70 in FY00 to $23.45 in FY01. Intergovernmental revenue is comprised mainly of State revenue sharing and State school subsidy. Other intergovernmental sources include the homestead exemption and a variety of federal and state grants in support of General Fund functions. Charges for services represent revenues collected from other funds (interfund) and unrelated third parties for services performed. During FY01, the school department changed classification of certain revenue streams to more accurately reflect their origin. Past practice has been to record all revenues received from other governmental entities as intergovernmental, such as tuition payments and Medicare reimbursements for services rendered. In FY01, these types of revenues have been shown as charges for services in lieu of intergovernmental. The City believes this reclassification will provide a more realistic overview of its revenue sources. Due to the reclassifications made, it is necessary to combine intergovernmental and charges for services revenues to obtain a meaningful comparison between FY 00 and FY01 results. The total increase in intergovernmental and charges for services revenues is $946 thousand, or 3.5%, which is primarily due to an $800 thousand increase in State school subsidy. I-8 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section Expenditures: As shown in Schedule A-2, FY01 General Fund expenditures were $64.6 million, an increase of $3.5 million, or 5.7% from FY00. As always, the largest expenditure category was education, at$34.3 million, an increase of$1.1 million or 3.3% from FY00. The City's portion of FY01 expenditures was $30.3 million, up about $2.3 million or 8.2% from FY00. As always, City expenditures were for public safety; public services; health, welfare and recreation; general government services; and other agencies and appropriations. General Fund expenditures, their respective percentages of total expenditures, and both the dollar and percentage change between fiscal 2000 and 2001 are shown immediately below. General Fund Expenditures by Category FY00 and FY01 (Dollars in Thousands) FY00 FY01 FY00/O1 Chan�e Department Amount % Exp's Amount % Exp's Amount Percent Education $33,181.4 54.3% $34,277.8 53.1% $1,096.4 3.3% Public safety 9,5279 15.6 10,253.0 15.8 725.1 7.6 Public services 7,073.7 11.6 7,108.4 11.0 34.7 0.5 General government 3,481.5 5.7 3,737.1 5.8 255.6 7.3 Health, welfare and recreation 2,624.9 4.3 2,716.5 4.2 91.6 3.5 Other agencies and appropriations 5,260.5 8.6 6,559.8 10.1 1,299.3 24.7 Totals $61,149.9 100.0% $64,652.6 100.0% $3,502.7 5.7% Other agencies and appropriations include expenditures for County taxes, private school subsidies,the Bangor Public Library,the Bangor Convention and Visitors Bureau, debt service, and pension expense. Of the $1.3 million increase; approximately $450 thousand represents increased costs associated with agencies and programs historically supported by the City. Examples of such programs are the expansion of the City's tax increment financing plans, a scheduled increase in the City's amortization of its Maine State Retirement System Initial Unpooled Unfunded Actuarial Liability, and support of the Bangor Public Library. During FY01, an additional $800 thousand was appropriated to support the start up efforts of two new entities, the Bangor Nursing and Rehabilitation Center and the University of Maine Arts Museum. The City does not anticipate the need to continue funding these new entities beyond the $800 thousand committed in FY01. Public safety expenditures are divided between police and fire services. The functions performed within public safety are extremely labor intensive, with 85% of total expenditures labor related. Accordingly, the principal increase within this function is directly related to increased wage and fringe benefit costs. I-9 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section General government includes Council, executive, human resources, city clerk, assessing, legal, finance, insurance, planning, economic development and code enforcement. The total increase within general government is comprised of many one time additional expenditures such as, payments made as a potential responsible party, costs associated with an executive search, and upgrade of computer equipment and maps. � Enterprise Funds Status and Results The City operates eight enterprise funds, essentially as business entities. These funds (the financial results of which are detailed in Schedules D-1 through D-3) include Bangor International Airport,the Sewer Utility,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 $21.0 million in operating revenue and an operating profit, before depreciation, of$5.4 million in FY01. Comparisons of FY01 and FY00 results must be made judiciously, as the City Nursing Facility only operated as a City department for six months during FY01. Having said that, overall operating revenues remain static, while operating profits are up from $5.2 million on a year-over-year basis largely due to the improved performance of the City Nursing Facility. Bangor International Airport: At $9.9 million, operating revenue at the airport increased by $1 million, or 11.2%; nearly all operating areas remained stable. The bulk of the increase was due to an $800 thousand one time State grant for increased advertising and marketing efforts. Operating expenses of$8.6 million (before depreciation and amortization, hereinafter referred to collectively as "depreciation") were $900 thousand, or 11.6%, over FY00 levels, an increase largely driven by the grant referenced above. Operating cash flow of $1.0 million shows a significant increase from FY00. This improvement stems from increased collection of receivables. Net income, after adding back depreciation on assets acquired with contributions (hereinafter referred to as "depreciation add back"), rebounded dramatically from recent years to a net income of $1.0 million, primarily due to a $925 thousand change in the market value of investments. Although this increase in market value has not been realized, it is included as revenue. At fiscal year end, retained earnings stood at$34.8 million; cash and equivalents at$5.0 million. Sewer Utility Fund: Operating revenues remained flat at $6.3 million. Operating expenses before depreciation increased by $69 thousand, or 2.8%, to $2.5 million, which is representative of minor increases in operating costs. Net operating income declined slightly to $2.3 million. Operating cash flow was $3.75 million, down $55 thousand, or 1.4%, from FY00. Net income, after I-10 City of Bangor,Maine ` Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section � depreciation add back, declined $200 thousand to $12 million. Retained earnings at fiscal year end were $17.6 million, while cash and equivalents were $2.3 million. , During FY01, the Fund invested $1.7 million with the Maine Discovery Museum with repayment to be made in annual installments over the next five years. The Fund continues to maintain a large amount of cash and equivalents derived from several interlocal agreements � allocating a portion of the construction costs of the City's secondary wastewater treatment - plant to other municipalities. This cash position provides stabilization against rate increases which might otherwise be necessitated by various capital projects required pursuant to a consent decree with the U.S. Environmental Protection Agency ("EPA"). As a result, sewer rates have remained unchanged since mid FY96 despite flat to declining usage and increasing � debt service requirements. As it has for the past few years, the Sewer Fund operates on a planned cash flow deficit basis, using its reserves to defray a portion of its debt service expenses. Of no small benefit in preserving this cash is the current agreement between the City and the EPA under which the _ latter matches capital expenditures required by the consent decree on a 55/45 basis, up to a maximum contribution of six million dollars. This has slowed the increase in debt service , requirements to which the utility had been subject, allowing for the further conservation of cash. Nevertheless, 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. � City Nursing Facilit� � As indicated in last year's report, it was the City's intention to divest itself of the operation of a �� nursing facility. The transition of the facility to a private, not-for-profit corporation took place , on January l, 2001 (as more fully described in the section entitled Other Information, Note H). Therefore, the operating results presented for this fund are for six months only. These limited operating results do show a dramatic swing from a $192 thousand loss in FY00 to $29 in , income for FY01. It is believed that the City's renewed commitment to the facility (albeit under a new corporate management structure) combined with more aggressive marketing and stronger operational management is responsible for this improvement. To compare further results of operation would not reveal any trends in this area. Due to the � number of accounting entries that were made to account for the divestiture of this facility, further comparison of operations would not be useful. As part of the Master Transaction Agreement that transferred ownership of the facility from the City to the Bangor Nursing and Rehabilitation Center, the Center is responsible for collecting ; amounts due the City as of December 31, 2000. Such amounts are to be repaid to the City in a mutually agreed upon fashion. At the end of FY01, the General Fund has recorded a receivable from the Center in the amount of $370 thousand. A designated fund balance has been established equal to the receivable in order to reserve against potential nonpayment. I-11 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section , Parking Fund: � As it has since the construction of the Pickering Square garage, the Parking Fund incurred its ' expected loss, although its operating performance improved from FY00 by $39 thousand � before giving effect to an operating subsidy of$316 thousand. Operating revenues increased � by 16.6%, to $744 thousand, largely due to increases in off street parking fees, parking garage permits and waiver fees. Operating expenses before depreciation increased 12.1%, to $519 thousand, largely as a result of increased operating costs, the most significant being an increase %_ ' in management fees. As a result, operating income before depreciation expense improved by $49 thousand. Similarly, net income after both the subsidy and depreciation add back improved from $11 thousand to $59 thousand. Retained earnings stood at $176 thousand, and _ ending cash and equivalents were $274 thousand, up from last year's $250 thousand. The General Fund's $316 subsidy, which is primarily used to meet debt service requirements, was down from FY00's $354 thousand. � Bass Park• The Bass Park complex generated $1.3 million in operating revenue in FY01, increasing $68 thousand (5.6%) over FY00. Operating expenses before depreciation increased by $75 = thousand, or 4.7%, to just over $1.65 million. Thus, on an operating basis (without , depreciation), the complex lost approximately $371 thousand (against a $364 thousand loss in FY00), and experienced an overall loss of$2 thousand after a General Fund subsidy of$571 � - thousand. FY00's net loss, after a $389 thousand subsidy, was $153 thousand. Year end retained earnings remained stable at a negative $1.4 million. Ending cash and equivalents were minimal at $23 thousand. f , � On an operating cash flow basis, the complex lost $380 thousand, or $8 thousand less than in FY00. The General Fund provided net support in the amount of $542 thousand which I consisted of an operating subsidy of $571 thousand and a cash repayment of $29 thousand. This represents an improvement from FY00 when the operating subsidy was not adequate to cover operating costs and an additional cash infusion of$130 thousand was necessary. By fiscal year end, the complex had accumulated just over $1.55 million in cash flow loans from the General Fund. This amount, representing a reduction of$29 thousand from last year and has been fully reserved for in the General Fund. In addition, efforts continue to improve � the complex's financial performance as well as to assess the overall infrastructure of the -��, existing facility, as more fully discussed under Other Initiatives. � Municipal Golf Course: "Bangor Muni", as it is called, continues to operate at a surplus, on both a net income and cash flow basis. FY01 greens and cart fees were up $45 thousand (7.1%) to $676 thousand, and operating expenses were $410 thousand,up 11.8%, or$43 thousand from FY00. r , Operating income was $171 thousand, down from $188 thousand in FY00. Net income was $187 thousand, down from last year's $219 thousand, and operating cash flow was $289 I-12 City of Bangor,Maine Comprehensive Annual Financial Report ' For the Year Ended June 30,2001 Introdactory Section . , thousand, up from last year's results of $234 thousand. Ending retained earnings were $1.8 million; cash and equivalents were $540 thousand. Park Woods Complex: The complex's net loss after the depreciation add back was just under $20 thousand, after giving effect to a$36 thousand operating subsidy from the General Fund. In FY00, net income (after the add back) was just under one thousand dollars, including a General Fund subsidy of " $16 thousand. Operating expenses before depreciation increased by $66 thousand, to $332 - thousand. Net operating cash flow deteriorated slightly to a negative $20 thousand from a negative $18 thousand in FY00. Retained earnings closed the year with a$79 thousand deficit; cash and equivalents were minimal at $5 thousand. Economic Development Fund: In FY01, this fund generated $268 thousand in operating revenue, virtually unchanged from FY00's results of$269 thousand. Operating expenses before depreciation were $87 thousand, down $37 thousand from FY00. Net operating income before depreciation was $181 thousand compared to FY00's of $145 thousand. Cash flow from operating activities was $194 thousand, also up substantially from FY00's $133 thousand. Retained earnings at year end � were $1.4 million, up from FY00's $1.1 million; ending cash and equivalents were $913 thousand. In FY99, the City acquired 51 units of surplus military housing from the Federal government. •� Since that time, the houses have been rehabilitated and sold to individual homeowners. Therefore, a substantial portion of the fund's retained earnings and cash and equivalents are � attributable to the net sale proceeds of these units. LONG TERM DEBT As shown in the section entitled Detailed Notes on All Funds and Account Groups,-Note I, at fiscal year end the City had long term debt totaling $65.2 million, $60.7 million of which is of the full faith and credit, general obligation variety. Of this, $30.3 million, or 49.9%, is fully self-supporting and is paid from user charges. Most of the balance of this debt is for schools ($10.9 million) and the General Fund ($11.9 million). Smaller amounts are attributable to those funds which require General Fund support and thus must carry the City's full faith and credit pledge. These include the Parking Fund ($6.1 million), and Bass Park($1.5 million). , - The City is also responsible for its proportionate share of the debt incurred by Penobscot County and Maine Vocational Region Four. At year-end, only the former had outstanding debt, of which the City's portion was $361 thousand. I-13 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section During FY01, the City issued $6.4 million in new general obligation debt ($1.5 million r attributable to the General Fund), and retired $5.6 million ($542 thousand of which was General Fund debt). General Fund, general obligation debt service payments due in FY01 � aggregated to $1.5 million, $580 thousand of which was interest. The City's general obligation debt has carried a Moody's "Aa3" rating since February, 1999. DEPARTMENTAL FOCUS: THE PARKING FUND As one of the City's eight enterprise funds,the Parking Fund is responsible for the operation and maintenance of the all City owned parking facilities, including the newly expanded � Pickering Square Garage, as well as for the enforcement of the City's parking regulations. The ti. mission of the Parking Fund is to promote the development of a vibrant and active city center through the comprehensive management of publicly owned on and off-street parking resources. � As such, fund management is charged with maximizing available and affordable parking for both short and long term parkers through developing and maintaining parking resources in a variety of cost ranges; enforcing, in a visitor friendly manner, the City's parking regulations; , and working with interested parties to address parking concerns and problems within the context of other identified downtown values. The fund is also responsible for managing these � resources to achieve the level of financial return on these investments established by the City r Council. ,� Within the Downtown Parking Management District there are approximately 900 on- street parking spaces, and over 1,200 off-street parking spaces. All of the off-street parking is operated and managed under a contract with Republic Parking System, Inc. This approach ' provides a single, knowledgeable contact with whom the public can work out the parking arrangements that most closely match their needs. The largest single parking structure operated by the City is the Pickering Square Parking Garage. This structure, originally opened in 1991 with a capacity of 500 vehicles,was ,-. constructed at a cost of approximately $5.7 million. As the downtown area has grown and marketing efforts have come to fruition,this structure reached capacity in 1999. To respond to increasing demand, the Garage is currently being expanded, as depicted on the front cover. This expansion will add one and one half levels with an additional 160 parking spaces. The total estimated cost for the project is $3 million. In recent years,the City has relied heavily on the recommendations of ad hoc Downtown Parking Advisory Committees appointed by the Mayor to represent a cross section of downtown constituencies, including the local staff of Republic Parking System Inc. These committees have comprehensively reviewed downtown parking policies concerning pricing, capacity, enforcement, and operations. Their charge has mirrored the Council's on-going �� commitment to providing the necessary parking resources to our downtown area while I-14 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section - , maintaining a pricing structure which is both affordable and able to meet operating expenses. � As a result of their work, new pricing structures have been put in place, which provide a range . of costs based on consumer demand and affordability. The recommendations of these Committees have generally been received as fair, generated broad based support, and resulted in increased off-street parking revenues to the fund. The Police Department oversees the enforcement of the City's parking regulations. Enforcement personnel not only issue parking violations, but serve as a source of information and assistance to pedestrians and drivers alike. Enforcement personnel are highly visible within our downtown area and frequently provide a range of services to those in need. Through the efforts of enforcement personnel, a notification card was designed and implemented which informs vehicle owners of expired registrations, overdue inspections, or _, other problems noticed while performing their duties. From the time the City Council committed to the construction of a parking garage in . downtown Bangor, there has been a recognition that the availability of affordable parking in _ this area is essential for its health, redevelopment, and future development. As a result, while , the Council expects the Parking Fund to generate sufficient operating revenues to cover its operating expenses, it also recognizes that a subsidy is necessary to cover at least a portion of its debt service. With the first debt service payment for the current expansion payable in � , FY02, there will be an increase in the General Fund's operating subsidy that will initially mirror the increase in debt service. This increase should be partially offset in future year's as � additional revenue is generated through the new spaces added to the system. � ECONOMIC BASE, CONDITION AND OUTLOOK Bangor is a commercial, industrial, and residential community that serves as the hub for a large geographic region. 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. � � Bangor abounds with innovative businesses that have achieved regional, national and international success. The City is the economic, educational, recreational, distribution, and health care center for the central, eastern and northern Maine regions. Bangor also serves as � northern New England's economic link to the Canadian Maritimes and Eastern Quebec. The City is a major center for the communication, banking, commercial, industrial, and governmental sectors of the State. , The City is committed to preserving its viable economic base while creating new opportunities for future economic growth: To achieve these objectives, the City is proactive in supporting economic activity through planned capital improvements, innovative financing, and aggressive marketing. I-15 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section ' , Infrastructure and Support Services � , Bangor's extensive array of services and infrastructure help in supporting and retaining existing ° businesses and broadening economic growth opportunities. Bangor enjoys excellent access to New England and U.S. markets via the Interstate Highway System and a network of State highways. Transportation alternatives are numerous and competitive, with two railroads and , thirty-four major trucking companies providing overnight service from Bangor to points along , r the Eastern Seaboard. Bangor International Airport (BGR) connects the community to the rest of the U.S. and foreign markets. BGR provides international overnight shipping services via the U.S. Postal Service's Express Mail, Federal Express, Airborne Express, and United Parcel Service. The airport has � long been nationally recognized as a successful military base conversion, and now represents - � approximately 10% of the region's total economic activity. Almost parenthetically, BGR has one of the longest civilian runway on the East Coast and is an alternative landing site for NASA's Space Shuttle. � Bangor is served by a full and technologically advanced complement of utilities that support � the economic base of both the City and the region. Bangor is one of the two major telecommunication hubs that Bell Atlantic has established in Maine. Accordingly, the City is the connecting point for much of the more than 75,000 miles of fiber optic cable cunently in 1 place. Further, Mid Maine Communications has extended its fiber optic network from Bangor both south to Portland and into northern Maine and is servicing much of the City, including its ` commercial and industrial parks. These facilities provide the necessary infrastructure to address the demands of the community and future enterprises. _^ . . c With four hospitals, Bangor is a regional 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 the media hub for the northern and eastern part of the State. The Bangor , region is also central Maine's center for higher education and research. The University of Maine System's flagship campus is located in Orono, eight miles to the west, and the City is , also home to five other institutions of higher learning: Husson College, University College of � Bangor, Beal College, Eastern Maine Technical College, and the Bangor Theological Seminary. Over fifteen thousand students attend these institutions. Current Economic Conditions Bangor has a stable and diverse economic base. Major employers include a diversified mix of health care, educational, professional, retail, manufacturing, and governmental entities. In calendar 2000, the Bangor region had a workforce of 57,910, up 4.4% over 1999. The largest employment sectors were services (up 2.2% to 18,382 employees), wholesale and retail trade (up 4.6% to 14,650 employees), and government (up 5.9% to 12,035 employees). City residents accounted for 18,408 employees in the 2000 regional labor force. Bangor's 2000 i I-16 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section . unemployment rate of 2.9% shows continued improvement over the 1999 rate of 3.0%, � indicating strong employment opportunities for Bangor's residents. Another indicator of economic vitality is building permit activity. In calendar 2000, the City issued a total of 487 building permits, which is virtually identical to the number issued in 1999. � These permits carried an indicated value of$28.5 million, off 10.9% from the prior year, yet still in line with the high growth levels experienced in recent years. Bangor is the second largest retail market in Maine after Portland. Taken together, the Bangor . Mall, Airport Mall, Broadway commercial center, Union Street commercial corridor, and the Bangor Center Development District have long established Bangor as the regional hub of the eight-county eastern Maine retail market. Bangor's retail sector serves an extensive geographic area ranging from eastern Maine to the Canadian Maritimes with a population exceeding 3.1 million. Bangor's 2000 taxable retail sales were $1,051 million, a 6.0% increase from the prior year. 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 over 60%. i � , Recent New Development Bangor continues to enjoy a stable economy with strong growth. The largest development , projects in 2000-01, included manufacturing, housing and infrastructure improvements, demonstrating the diversity the City strives to maintain. � Development at and in the vicinity of Bangor International Airport continued with expansions in and around the airport, in the Maine Business Enterprise Park, and the BIA Commercial Industrial Park. The largest of these is the third expansion of the General Electric Plant, which ' produces steam power generating turbines. This expansion involves additional investments of $78 million in buildings and equipment and will bring GE's total manufacturing space to almost 500,000 square feet. This expansion is expected to create as many as 160 new jobs in Bangor. A number of other projects added to Bangor's public housing and health care bases as well. The largest increase in housing was the construction of a "retirement village" containing just over 100.units of housing and providing a number of common services for the benefit of its residents. Eastern Maine Medical Center completed construction on a 740 space parking garage and 33,850 square foot ambulatory care unit at its main campus on State Street. The City of is particularly pleased with the progress that has been made in improving the physical plant of the University College of Bangor. The City has been deeply involved in this effort and is represented on the University's Advisory Board by its Council Chair, City , � I-17 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section Manager, and Airport Director. The College has now adopted a master plan for its future and , has begun upgrading its existing buildings. A new entrance to the campus has been constructed, a dilapidated structure on Maine Avenue has been removed, and majar renovations are scheduled for several of the Campus' major buildings. The City and the University of Maine System have also recently reached an agreement on various land transfers which will further enhance both University College and the City's Maine Business Enterprise ; Park, which borders the campus. Other significant infrastructure development includes a $4.5 million, 28,000 square foot addition and renovation of existing space at Bangor High School. The project included expansion of the library, special education, math, and foreign language departments. New additions include a state-of-the-art language lab, an 80-seat lecture hall, a bridgeway between existing wings of the school to alleviate hallway congestion, and an astronomical observatory. Bangor High is now the largest high school in the State, and these improvements will insure that the school can continue to provide the range of educational experiences and resources necessary to maintain Bangor's leadership role in education. This investment demonstrates the - community's commitment to maintain and improve the outstanding performance levels of Bangor's students. Finally, the $3 million expansion of the Pickering Square Garage is nearing . completion. This project is more fully discussed earlier in this letter (Department Focus— The Parking Fund). � � ONGOING INITIATIVES ` The City has both long and short term projects and initiatives. Many of the projects identified _ in the City's two previous CAFR's continue. As these are either completed or become more routine, new priorities are identified and pursued. All else equal, however, there remain two ' principal priorities for the City: redevelopment of the downtown business district and the waterfront. , Downtown Redevelopment � Perhaps the most significant accomplishment in the past year is the enhancement of the economic vitality of the downtown area. For years, the City has been plagued with a number of large vacant buildings in its downtown. As the retail sector shifted to the City's newer retail , areas (primarily the Bangor Mall area where over 3 million square feet of new retail space has been developed over the past 20 years), the challenge has been to find new uses for these buildings. Recognizing the symbolic importance of a vibrant downtown, significant staff and � financial resources have been devoted to revitalizing this important part of the City. The effort has proved worthwhile. � � Renovation and reuse of the 140,000 square foot former Freeses department store building, with its dominant presence as a Main Street anchor, was largely completed in 2001. The � I-18 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section " building now provides 73 units of downtown housing as well as the largest Children's Museum north of Boston. The Maine Discovery'Museum officially opened its doors in February 2001 and has been a huge success. To date, the museum has attracted approximately 90,000 visitors and recently completed a successful fundraising campaign culminating a four-year community effort. At the other end of the downtown district, Norumbega Hall, former site of the � , downtown Sears Roebuck, has been transformed into a multi-function ball room and senior , center and will soon be home to the University of Maine's Art Museum. Cadillac Mountain Sports has established itself as a retail presence in the 44,000 square foot former W.T. Grants building. � Across the street from the Penobscot County Courthouse, renovation of the 33,000 square foot former Bangor Furniture complex is complete. These four adjacent buildings now house a mixture of retail, restaurant, residential and office uses. The restaurant and retail areas are fully occupied and have materially improved the ambience and attractiveness of this area of _ downtown. As a further example of this new activity, it's now stylish to live in downtown Bangor. � Landlords have waiting lists before apartments are even completed. The newest apartments , include some luxurious spaces commanding among the highest rents in Bangor. . Both complementing and adding to the cultural ambience of the proposed art museum, the recently completed children's museum, and the $8 million expansion of Bangor's Public Library, a number of local artists have established studios in vacant, older former office space. � Bangor's downtown has reemerged transformed. While it remains a business and government � center, it has now grown to include specialty shopping, cultural and entertainment resources, and a variety of living opportunities, all of which have injected new life into downtown. � Waterfront Redevelopment In 2001, the City of Bangor was honored when it was selected by the National Council for the Traditional Arts to host the National Folk Festival for the years 2002 through 2004. Bangor was selected for this prestigious event through a competitive process that included such other communities as Macon, Georgia, Milwaukee, Wisconsin, Los Angeles, California and Vancouver, Washington. The National Folk Festival was first held in 1934 and is the oldest folk festival in the country. The Festival is presented free of charge to the public over a three- day period. Its mission is to support and honor the arts that are deeply rooted in cultural expression, including music, crafts, stories and dance. This exciting event is set to take place along the City's waterfront and is expected to draw approximately 50,000 visitors. Progress continues in the redevelopment of almost a mile of prime Penobscot River frontage, extending from the City's downtown area to the Bass Park Complex. Remediation of the I-19 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section 36-acre site, undertaken in cooperation with the Maine Department of Environmental ' Protection, is now complete and infrastructure development has begun in earnest. Current plans call for some $180 million in development including: — A five-story, 180 room headquarters hotel anchoring the center of the site with an adjacent 30,000 square foot high-technology conference ;� center. A tentative developer agreement with Ocean Properties has been executed for this project; — 100,000 square feet of office space; — 60,000 square feet of restaurant and retail space; — A 36,000 square foot Maine products pavilion; — Four buildings containing 310 residential apartment and condominium units; - — A Phase II 175 room hotel adjacent to I-395; , — A 30,000 square foot marina building serving the residential units and , , hotels; � — A 36,000 square foot harbor master pavilion serving not only as a working ; harbor master's office, but also as a visitor center with historical components as well as an intermodal transportation center; — A Greek style, banked amphitheater of 60,000 square feet, including stage � area and seating for up to 1,500. Tentative developer status has been granted to Christopher Hutchins, who has generously agreed to fund this $3 million project. Currently, the project is in the permitting phase. It will become home to the increasingly popular summer Shakespeare festival and other outdoor events. i — A five thousand linear foot riverfront park will be developed along the river's edge with pedestrian promenades, bike-paths, and various other , recreational amenities such as jogging and skating paths, boardwalks, picnic areas, an ice skating rink, playgrounds, mazes, and the like. Plans include 750,000 square feet of grass and landscaped areas, including berming, trees, shrubs, flowerbeds and hedges. — Almost $12 million in funding commitments have been secured to date through several federal and state programs. ' , I-20 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section Other Additionally, the city continues to move on several other fronts. Some of the more significant initiatives currently underway include the following: Broadening the revenue base: One of the persistent financial concerns of Maine municipalities is their reliance on the property tax as the primary source of revenue. This is not merely a matter of revenue � diversification, but more importantly 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, among other things, the authority to levy a wider � � array of taxes that will allow it and other Maine cities more financial flexibility. The City has joined with a group of over 50 service center communities in Maine to pursue revenue diversification options. Bass Park: Related to this revenue diversification effort, the City is actively reviewing the future of its Auditorium and Civic Center Complex located in Bass Park. The Auditorium is currently nearing 50 years of age and the Civic Center, while newer and in better condition, is not well suited to host large conventions or meetings. During the past year, the Council created a Special Committee on the Future of the Auditorium and Civic Center that was charged with evaluating the current complex and making a recommendation for its future. That Committee, , which is broadly representative of the business and governmental community in the region, has recommended that the complex be replaced with new facilities designed to meet today's needs for meeting and large event space. Replacing these facilities is anticipated to cost approximately $30 million. Both the Committee and the Council have indicated that a new complex cannot be constructed with property tax support alone, and the Committee has recommended that the City seek authority from the State to enact a local option sales tax for this purpose. Legislation to accomplish this has been developed and introduced. Infrastructure and service improvements: Bangor continues to build upon its strengths, investing heavily in infrastructure both to enhance the community's quality of life, and to support economic growth. 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 attractiveness to firms and individuals seeking to locate here. By their nature, these are ongoing projects. With further respect to the City's quality of life, Bangor offers the lowest cost of living of any � metropolitan area in New England, one of the lower crime rates of any metropolitan area in the - country, abundant green space and outdoor recreational opportunities, longstanding support for the arts, and an exceptional public school system that is consistently ranked among the best in the State. I-21 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section Bangor has also been named the best small city in the country in two recent editions of ' MacMillan's Places Rated Almanac. In its most recent edition, the City was ranked as the best metropolitan area among those with populations under 100,000 in overall livability, and has been favorably compared to 350 other metropolitan areas across North America particularly for its low crime rate and superb recreational opportunities. 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 during calendar year 2000. 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 are appropriate to protect and preserve them. In recent years, two areas were identified for particular attention: the Union Place and Curve Street neighborhoods. The City has purchased and removed 33 units of blighted housing and is now actively seeking to redevelop these neighborhoods. � i The City will continue to develop strategies to address those neighborhoods under the greatest stress. These will 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. Transportation• ' Bangor's central location within the State has always been one if its strengths. Accordingly, transportation is a key ingredient in the City's economic fortunes. As a result of rapid growth , in the mall area, the State has completed a new interchange at Stillwater Avenue to accommodate ever-increasing traffic volumes and support additional commercial development. There are also two current State initiatives that will vastly improve Bangor's transportation facilities and integrate them more thoroughly into the State's overall system. Under these initiatives, Bangor has been designated as the major hub through which both passenger and freight traffic will flow into and out of the central and northern portions of the State as well as between the surrounding Canadian provinces. The State's long range Strategic Passenger Plan and its Strategic Freight Plan both identify Bangor as a key point of entry, departure and transshipment, largely due to the presence of � well-developed air, ground and rail transportation systems in and around the City. As part of these companion plans, the State has recently allocated approximately one million dollars, the major portion of which will be used to study the development of intermodal facilities for I-22 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section ' moving passengers between BGR and Mount Desert Island, the site of Bar Harbor and Acadia National Park. Also ongoing is an effort to find ways to improve the major east-west roadway across the State. Bangor will stand to benefit from any improvements in this artery since it sits astride the existing east-west route that represents the shortest distance between Canada's easternmost , provinces and the cities of Quebec and Montreal. It is thus ideally situated and equipped to act as a transshipment point for such commerce. Economic develoument strate� Economic development activities remain vital to the City. In addition to its many other efforts ' in this regard, the City continues to work toward coordinating the often disparate efforts of various groups and individuals in order to enhance the effectiveness of regional efforts. This remains a long term effort, requiring careful coordination and planning, and is proceeding apace. Intra-citv communications: The City has completed the installation of a new communication system that ties councilors and staff more closely together and streamlines many aspects of managing the City's affairs. , Additionally, the City's website has proven to be a valued source of information to our citizens as well as others desiring information or services from the City. The advent of the City's own public assess channel has met with overwhelming citizen support. Programming consists of � City Council, Planning Board and other public meetings as well as notices of ineeting schedules, information about government services, and a variety of other programining. These communication techniques have facilitated wider dissemination of information and made City government and its services more widely and easily accessible. CONCLUSION Overall the City of Bangor's financial position is sound. Our tax collection rate is strong and ' continues to improve, our control of expenses is excellent, and our procedures and processes for managing City assets work well. We are both liquid and prudently invested, and we have adequate insurance and reserves to meet any reasonably foreseeable events. As always, it is our sincerest hope that this document meets the informational needs of its primary intended audience: the people of Bangor and their elected City Council. Its intent, as mentioned at the outset, is to give the City's financial statements more depth, aid in their interpretation, and help the reader identify the issues inherent in the City's financial operations. - 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. I-23 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2001 Introductory Section 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 Certificate of Achievement for Excellence in Financial Reporting program. GFOA awarded its Certificate of Achievement to the City of Bangor for its first four Comprehensive Annual Financial Reports, which were produced for the fiscal years ended June 30, 1997 through 2000. The Certificate is a prestigious national award, recognizing conformance with the highest standards of state and local government financial reporting. In order to be awarded 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 requirements and exacting standards of the Certificate _. of Achievement program. ACKNOWLEDGMENTS The preparation of this document would not have been possible without the hard work of all of - � the City's employees. Each one contributes on a daily basis simply by carrying out the responsibilities of their positions. Special thanks must be extended to Ed Barrett, Rod McKay, Sally Bates, Jim Ring, Dan Wellington, Maggie Ellison and Jan Theriault for their research and technical support; Our City Assessor, Ben Birch, and his staff for help in compiling and managing tax base data; David Little for his assistance in constructing the financial statements; and Annette Stover and Gail King for their absolutely indispensable help in assembling and publishing this document. Our sincerest thanks are once again extended to our Citizens and the Bangor City Council for their continued support for our efforts to further develop the City's financial management and reporting capabilities. We hope that we have once again met their expectations. As we conclude, we cannot overlook the events of September 11`h. We wish to express our condolences to the many thousands, including some of our own residents, who have been effected by this tragedy. The City of Bangor remembers. Respectfully submitted, l JC� -. Deborah A. Cyr Finance Director ` I-24 City of Bangor,Maine Awards Received and Recognitions Bestowed 1997—2001 New England Chapter,American Planning Association,2001 2001 Outstanding Plan Award for the "Penobscot Riverfront Development Program" New England Water Environment Federation,2001 Alfred Peloquin Award for Outstanding Service to the Profession to Brad Moore, Superintendent of Wastewater Treatment Plant Avitat Bangor,2001 Bangor Aviation,at Bangor lnter�iational Airport � Desig�iated as an ExxonMobil Avitat Government Finance Officers Associated of the United States and Canada, 1998, 1999,2000 and 2001 Certificate of Achievement for Excellence in Financial Reporting For the City's Comprehensive Annual Financial Report for the Fiscal Years Ended ; � , June 30,�1997, 1998, 1999 and 2000 - . L� i� , Maine Wastewater Control Association � � � Roger Gagne Award for Exemplary Service`� , and Tenure with the Association to • ' Alfred Jellison, Chief Operator Civic 50 A��vard,2000 Given to the State of Maine, Office of the Secretary of State, shared with InforME and the beta site municipalities for the use of technology to provide government services in a more efficient manner Maine Drug Task Force;2000 • Law Enforcement Agency Teamwork Award to � Donald J. Winslow, Chief of Police � Y , Maine Fire Prevention Resource Ezchange,2000 Given to individuals who have gone above and beyond tl�eir duty in support of public safety education/inspections - Officer's Award to Captain Frank Rollins Fire and Life Safety Educator/Inspector Award to Jason Johnson of the Bangor Fire Department � Maine Transportation Safety Coalition,2000 In Recognition of Continued Efforts to Promote Seat Belt&Child Safety Seat Use Bangor Police Department � Exxon Tiger Spirit Award, 1999 and 2000 Silver Award for Excellence . Bangor International Airport I-25 City of Bangor,Maine Awards Received and Recognitions Bestowed 1997—2001 (continued) Residential Fire Institute, 1998, 1999 and 2000 Life Safety Achievement Award to the Bangor Fire Department United States Department of Housing and Urban Development,2000 Best Practices Award for Waterfront Development Efforts to Community and Economic Development National D.A.R.E.Officers Association, 1999 Special Presidential Award to Bangor Police Department 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 Awarded 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 In Recognition of the Environmental Protection Agency's Award 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 Community Service for the Bangor Playground � I-26 Certificate of ► . Achievement � � � for Excellence � in Financial � Keporting Presented to ' City of Bangor, � � Maine For its Comprehensive Annual s Financial Report for the Fiscal Year Ended June 30, 2000 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. i �Ncf�F�� '4� UMrtED 5fATES� f �� °o �"""D" Pr sident a COR►OfuT�OM�s �°9 �� ~ twK►ce I i � i �i�i�� Executive Director CITY OF BANGOR ORGANIZATIONAL CHART(9-00) CITIZENS OF BANGOR CITIZEN CITY CITIZEN COMMISSIONS COUNCIL BOARDS SOLICTOR ASSESSING MAN GER ciERK ANIMAL ELECTIONS CONTROL COMMUNITY AND INTERGOVERNMENTAL LICENSES AFFAIRS FINANCE INFRASTRUCTURE AND GOVERNMENT BUSINESS AND ECONOMIC DEVELOPMENT SUPPORT OPERATIONS DEVELOPMENT AUDITINQ TREASURY ENFO CEMENT PV+NNINQ ENGINEERING TREATMENTR POLICE FIFiE � RECREAT ON CONOM C DEV. INTERNA�T�IONAL BASS PARK AIRPORT RISK INfORMATION Hqqgpp PUBLIC WORKS SEWER DEfECTIVE PATROL FIGHTINO �MINISfRATION MqIMENANCE RECREATION COMMUNITY ECONOMIC MANAGEMENT SERVICES MAINTENANCE . DEVELOPMENT DEVELOPMENT CNiCCEMEn UDITORIUM . ADMINISTRATIO SERVICES FIPE GOLF STATE P BEURFAU�N DOWNTOWN PARKING FAIR . PURCHASINQ PROGR4MS MANAGEMENT . HEALTHANO ADMINISTRATIVE WELFARE SEFVICES GENERAL NURSINO HUMAN IABOR RELIEF SERVICE9 RESOURCES R TIONS DENTAL GRANT FIEEf iHE . � CLINIC PROGRAMS MAIMENANCE BUS . ' CEMRAL SERVICES � City of Bangor,Maine Elected Officials and Principal Administrative Officers At June 30,2001 City Council John M.Rohman,Mayor Joseph M. Baldacci Patricia Blanchette Michael R. Crowley Nichi S. Farnham Frank J. Farrington Gerry G.M. Palmer Daniel J. Tremble Judith Vardamis City Staff Edward A. Barrett, City Manager Benjamin F. Birch, City Assessor Gail E. Campbell, City Clerk Deborah A. Cyr, Acting Finance Director Norman Heitmann, City Solicitor School Committee Martha G.Newman,Chair Susan A. Carlisle Suzanne M. Cox Arthur G. Eaton, Jr. Phyllis M. Shubert,Vice Chair Christine Szal Ellen Tobin School Staff Robert Ervin, Superintendent of Schools Alan F. Kochis,Director of Business Services Financial Section ..�-µ �Yi��O� �� . `1'Cersteevc �-�- br�ellette Certified Public Accountants and Business Consultants Independent Auditor's Report City Council City of Bangor,Maine � We have audited the accompanying general purpose financial statements of the City of Bangor,Maine, as of and for the year ended June 30,2001,as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Bangor,Maine's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Covernment Auditing Standards ' issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financia! statements are free of material misstatement. 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 significani 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 referred to above present fairly; in all material respects,the financial position of the City of Bangor, Maine as of June 30,2001,and the results of its operations and the cash flows of its proprietary and nonexpendable trust fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in the notes to the general purpose financial statements, the City adopted the provisions of Governmental Accounting Standards Board Statement No. 33 entitled Accoz�nting and Financial Reporting jor Nonexchange Transaclions during the year ended June 30,2001. In accordance with Government Audiling Standards, we have also issued a report dated October 19,2001 on our consideration of the City of Bangor,Maine's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations,contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was made for the purpose of forming an opinion on the general purpose�nancial 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 part 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. � City Council Page 2 Tlie information in the statistical section 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. � O October 19,2001 South Portland,Maine � , .: . . a " ' COMBINED FINANCIAL STATEMENTS ("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. �r r f ' , . , f , i I t Exhibit 1 CITY OF BANGOR,MAINE All Fund Types and Account Groups Combined Balance Sheet June 30,2001 Proprietary Fiduciary � � Governmental Fund Types Fund Type Funds Account Groups �� r-7 General Totals Special Capital Trust and Long-term General (Memorandum �- General Revenue Projects Enterprise Agenty Debt Fixed Assets Only) ASSETS AND OTHER DEBITS Cash and cash equivalents $ 34,500 $ 190,212 $ 413,685 $ 735,988 $ 374,i39 $ - $ - $ ],748,724 . InvestmenLs 15,093,748 - - 20,079,937 1,984,584 - - 37,158,269 Receivables: Taxes 2,258,958 - - - - - - 2,258,958 Accounu,netofallowance 1,293,678 1,199 25,000 3,441,997 - - - 4,761,874 Intedund loans 1,954,995 - - - - - - 1,954,995 Loans,net of allowance - 4,534,841 - 3,683,609 33,744 - - 8,252,194 Deferced special assessmenu - - 30,I30 91,489 - - - 121,619 Intergovemmental 1,143,129 111,4G1 891,922 1,108,535 - - - 3,255,047 '� Due from water district - - - 93,495 - - - 93,495 Inventories,at cost 353,391 - - 95,758 - - - 449,149 Prepaid items 63,837 13,745 - 95,535 - - - 173,117 Fixed assets (net,where applicable,of accumulated depreciation) - - - 180,679,841 - - 70,374,667 251,054,508 � Other usets - - 4,020,769 5,092,692 - - - 9,113,461 Amount available for self insurance - - - - - 2,263,613 - 2,263,613 Amount ro be provided for Accrued wmpensated absences - - - - - 1,528,757 - 1,528,757 � Retirement of general long-term debt - - - - - 22,806,350 - 22,806,350 Retirement of wpital leazcs - - - - - 223,910 - 223,910 Maine Stare Retirement liabiliry - - - - - 31,782,408 - 31,782,408 -- Total assets and other debits $22,196,236 $ 4,851,4.58 S 5,381,506 3 215,198,876 3 2,392,667 $58,605,038 $70,374,667 S 379,000,448 � (/ 6� The notes to the financial statements are an integral part of this statement. - Continued on facing page II- 1 Exhibit l(con't) CITY OF BANGOR,MAINE All Fund Types and Account Groups Combined Balance Sheet Junc 30,2001 - Proprietary Fiduciary Governmenlal Fund Types Fund Type Funds Account Groups 1 " � � General Totais Special Cnpitnl Trust and Long-term General (Memorandum I � � General Revenue Projects Enterprise Agenty Debt Fixed Assets Only) LIABILITIES AND FUND EQUITY Liabilities: � Acwuntspayable $ 930,983 $ 43,921 $ 558,140 $ 1,965,082 $ 9,009 $ - $ - $ 3,507,135 . Accrued wages and benefits payable 3,108,504 - - 317,531 - - - 3,426,035 Accrued interest - - - 525,550 - - - 525,550 Accrued compensated absences - - - 239,775 - 1,528,757 - 1,768,532 > Workers'compensation 607,890 • - 237,437 - 2,263,613 - 3,108,940 ' Deferted revenue 2,212,222 4,534,841 - 92,248 - - - 6,839,31 I � Amounu held for others - 64,688 - - 891,688 - - 958,376 � Interfund loans payable - 372,652 - 1,582,343 - - - 1,954,995 , Bonds and notes payable - - 4,000,000 42,39G,078 - 22,806,350 - 69,202,428 Deferzed amount on refunding - - - (419,394) - - - (419,394) ' -, Capital leazes payable - � - - - - 223,910 - 223,910 Unfunded actuarial liability - - - - - 31,782,408 - 31,782,408 Other liabilities . - - - 518,633 - - - 518,633 ,_ Totalliabilities 6,859,599 5,016,102 4,558,140 47,455,283 902,697 58,605,038 - 123,396,859 ( � Fund equity and other crediu ConVibuted capital - - - 113,538,I28 - - - 113,538,128 ]nvestment in general fixed assets - - - - - - 70,374,667 70,374,667 Retained eamings . Reserved for: Capital expenditures - - - 1,644,305 - - - 1,644,305 �`�\ � Debt service - - - 539,308 - - - 539,308 , Unreserved - - - 52,021,SS2 - - - 52,021,852 Fundequiry Reserved for: � � Enwmbrances 670,318 168,209 284,508 - - - - 1,123,035 � _ Prepaid items ' 63,837 13,745 - - - - - 77,582 Loans - - - - 134,905 - - 134,905 Endowments - - - - 542,371 - - 542,371 � Noncurrent interfund advance 1,580,369 - - - - - - 1,580,369 � Unreserved: Designated 5,151.848 - 288.381 - - - - 5.440,229 i Undesignated 7,870,265 (346,598) 250,477 - 812,694 - 8,586,838 ' Totalfund equity(deficit)and other crediu 15,336,637 (164,644) 823,366 167,743,593 1,489,9')0 - 70,374,667 255,603,589 C Total liabilities,fund equity andothercrediu $22,196,236 $4,851,458 $5,381,506 $2I5,198,876 $2,392,667 $58,605,038 $70,374,667 $379,000,448 � . The notes to the financial statements are an integral part of this statement. Continued from previous page II-2 Exhibit 2 CITY OF BANGOR,MAINE � All Governmental Fund Types and Expendable Trust Funds Combined Statement of Revenues,Expenditures and Changes in Fund Equity For the 5scal year ended June 30,2001 Fiduciary i Governmental Fund Types Fund Type Totals - Special Capital Expendable (Memorandum 1 General Revenue Projects Trust Only) Revenues 7'axes $ 38,504,336 $ - $ - $ - $ 38,504,336 Intergovemmental 22,302,779 4,153,894 1,818,902 - 28,275,575 Licenses and permits 392,778 - - - 392,778 Chazges for services 9,575,770 356,845 - - 9,932,615 ' , Fines,forfeits,and penalties 15,106 - - - 15,106 ( Revenue from use of money and property 1,622,592 - 133,070 19,778 1,775,440 • Program income - 745,087 - - 745,087 � Other - 4,608 444,372 29,611 478,591 I Total revenues 72,413,361 5,260,434 2,396,344 49,389 80,119,528 Expenditures t', Curtent: General govemment 3,656,208 - - - 3,656,208 Publicsafety 10,174,860 - - - ]0,174,860 Health,welfare and recreation 2,710,864 - - - 2,710,864 � 1 Publicbuildingsandserviccs 7,103,48] - - - 7,103,481 Otheragencies 3,130,510 - - - 3,130,510 Education 37,531,159 - - - 37,531,159 • Otherappropriations 1,846,379 - - - 1,846,379 Communiry development block grant - 1,944,544 - - 1,944,544 i"'• Other grants - 3,258,627 - - 3,258,627 Payments to beneficiaries - - - 24,320 24,320 ! Debtservice(excluding education) 1,197,825 - 28,175 - 1,226,000 Capital outlay 292,829 - 7,976,058 - 8,268,887 ' I � Totalexpenditures 67,644,115 5,203,171 8,004,233 24,320 8Q875,839 r r Excess(deficiency)ofrevenues overexpenditures 4,769,246 57,263 (5,607,889) 25,069 (756,311) Other financing sources and(uses) Other 77,229 - - - 77,229 General obligation debt - - 2,334,600 - 2,334,600 Reallocation of general obligation debt - - 459,964 - 459,964 Transfers to other funds (2,432,053) - (27,666) 84,172 (2,375,547) f� � Transfers from other funds 163,514 - 2,289,300 - 2,452,814 Operatingsubsidies (1,017,267) - - - Q,017,267) � Total other financing sources(uses) (3,208,577) - 5,056,198 84,172 1,931,793 Excess(deficiency)of revenues and other ' financing sources overexpenditures 1,560,669 57,263 (SSt,691) 109,241 1,175,482 Fund equity(deficit),July 1 13,775,968 (221,907) 1,375,057 355,164 15,284,282 � Fund equity(deficit),June 30 $ 15,336,637 $ (164,644) $ 823,366 $ 464,405 $ 16,459,764 `�, The notes to the financial statements are an integral part of this statement II-3 � Exhibit 3 CITY OF BANGOR,MAINE General Fund - Statement of Revenues and Expenditures and Changes in Undesignated Fund Balance--Badget and Actual--Budgetary Basis ' For the fiscal year ended June 30,2001 ' Original Final Budget Budget Actual Variante Revenues 'Iaxes $ 37,888,978 $ 37,888,978 $ 38,504,336 S 615,358 Intergovemmental 19,860,891 17,957,247 18,695,107 737,860 Licenses and permits 38Q785 380,785 392,778 , 11,993 � Ckargesforservices 8,102,171 9,046,163 9,334,001 287,838 Fines,fodeits,andpenalties 27,950 ' 27,950 IS,106 (72,844) _ Revenue from use of money i and property 701,243 701,243 1,187,296 486,053 � Total revenues 66,962,OI8 66,002,366 68,128,624 2,126,258 Expenditures � Current ' Generalgovemment 4,859,381 3,909,354 3,737,126 172,228 Public safety 10,243,660 10,252,560 10,252,977 (417) i -- Health,welfare and recreation 2,791,635 2,795,732 2,716,527 79,205 � Public buildings and services 7,690,860 7,693,360 7,I08,393 584,967 Other agencies 2,693,729 3,534,852 3,533,309 1,543 , Education 34,240,758 35 319,190 34,277,778 1,041,412 � Other appropriations 1,835,393 1,843,408 1,828,634 14,774 � Debtservice 1,192,615 1,207,915 1,197,825 7Q090 Total expenditures 65,548,031 66,556,371 64,652,569 1,903,802 i L � � Excess(deficiency)of revenues over expenditures 1,413,987 (554,005) 3,476,055 4,03Q060 f� _ Other financing sources(uses) Appropriation from designated fund balances 368,170 379,155 29,047 (350,108) Appropriation to designated fund balances (285,000) (285,000) (285,000) - ^ Appropriation from undesignated fund balance - 1,335,039 - Q,335,039) 1 � I Olher � 17,800 8,898 20,046 11,148 � Transferstootherfunds (45Q000) (1,005,000) (I,005,000) - Transfers from other funds 46,000 46,000 45,491 (509) Operatingsubsidy (1,110,957) (1,017,267) (1,0U,267) � - Total other financing sources(uses) (1,413,987) (538,175) (2,212,683) (1,674,508) i \ Excess(deficiency)of revenues and other financing soarces over expenditures and other financing uses $ - $ (1,092,180) 1,263,372 $ 2,355,552 i""` Undesignated fund balance,luly 1 7,079,422 � � Appropriation to designated fund balance (141,352) � Balances carcied from prior year 1,092,180 ' Balances carried to succeeding year (1,423,35'7) � � � ' Undesignated fund balance,June 30 $ 7,870,265 The notes to the financial statements are an integral part of this statement. II-4 Eghibit-4 CITY OF BANGOR,MAINE All Proprietary Fund Types and Similar Trust Funds Combined Statement of Revenues,Expenses and Changes in Retained Earoings/Fund Equity For the fiscal year ended June 30,2001 ' Proprietary Fiduciary Fund Type Fund Tvue Totals ' Enterprisc Nonexpendable (Memorandum Funds Trust Funds Only) Operating revenues Charges for services $ 20,933,961 $ - $ 20,933,961 Interest - 66,451 66,451 Other - 2,400 2,400 � Total operating revenues 2Q933,961 68,851 21,002,812 �__ Operating expenses � u Operating expenses other than depreciation and amortization 15,568,407 1,074 15,569,481 Depreciation and amortization on assets: ` Acquired with own funds 3,754,147 - 3,754,147 ' Acquired with grants and contributions 4,218,462 - 4,218,462 ' 1'otal operating expenses 23,541,016 1,074 23,542,090 � Operating income(loss) (2,607,055) 67,777 (2,539,278) � Nonoperating revenues(expenses): ° Interest income 1,398,180 - 1,398,180 ' /`- Unrealized gain on investments 925,066 - 925,066 Interestexpense (1,945,493) - (1,945,493) Miscellaneous income 236,252 - 236,252 Total nonoperating income(expense) 614,005 - 614,005 � Net income(loss)before operating J 1 vansfers (1,993,050) 67,'777 (1,925,273) ; Transfers to othet funds (412,684) (57,590) (470,274) Transfers from other funds 561,351 - 561,351 � Operating subsidy 1,017,267 - 1,017,267 Net income(loss) (827,116) 10,187 (816,929) ,.- Add depreciation and amortization on fixed assets � acquired with grants and convibutions 4,218,462 - 4,218,462 _ Retained eamings/fund equity,July 1 50,814,1]9 1,183,722 51,997,841 � Retained eamings/fund equity,June 30 . $ 54,205,465 $ 1,193,909 $ 55,399,374 � The notes to the financial statements are an integral part of this statement. ` II - 5 Exhibit 5 CITY OF BANGOR,MAINE � All Proprietary Fund Types and Similar Trust Funds � Combined Statement of Cash Flows For the fiscal year ended June 30,Z001 Proprietary Fiduciary " Fund Typc Fund Type Totals - Enterprise Nonexpendable (Memorandum Funds Trust Funds Only) - Cash flows from operating activities Cash received from customers $ 20,414,237 $ - $ 20,414,237 � Cash payments to suppliers for goods and services (7,841,254) (966) (7,842,220) v� Cash payments to employees for services (7,66G,096j - (7,666,096) Other operating cash receipts - 9,097 9,097 + Other operating cash payments - (57,698) (59,698) ,- Net cash provided by(used in)operating activities 4,906,887 (49,567) 4,857,320 , Cash flows from noncapital financing activities Interhmdloans 102,817 - ]02,817 Transfer out (412,684) - (412,684) � r - Operating subsidies received 1,017,267 1,017,267 � Net cash provided by noncapital financing activities 707,400 - 707,400 I ! Cash flows from capital and related financing activities Proceeds from general obligation debt 5,100,000 - 5,100,000 Acquisitions and conshuction of capital assets (8,317,008) - (8,317,008) � ' Principal paid on general and limited revenue obligation bonds (4,480,806) - (4,48Q806) �� Interest paid on general and limited revenue obligation bonds (1,858,513) - (1,858,513) Proceeds from sale of equipment 806,211 - 806,211 Grant monies received for capital assets 4,187,531 - 4,187;531 , Investment of bond proceeds (2,612,573) - (2,612,573) Net cash used in capital and related financing activities (7,175,158) - (7,175,158) � Cash flows from investing activities Net sales(purchases)ofinvestrnents (337,122) (23,149) (360,271) �� Interesdunrealized gains on investments 2,312,043 72,716 2,384,759 Loansissued (1,700,000) - (1,700,000) Loan repayments 385,021 - 385,021 � Net cash provided by investing activities 659,942 49,567 709,509 Net decrease in cash (900,929) - (900,929) „� � � Cash and cash equivalents,luly 1 1,636,917 - 1,636,917 •� Cash and cash eqwvalents,June 30 $ 735,988 $ - $ 735,988 Schedule of noncash investing,capital and financing activites: During the year,the Airport Fund had an unrealized gtin on investments in the amount of$925,066. r The notes to the financial statements are an integral part of this statement. Continued on following page II-6 Exhibit 5(con't) CITY OF BANGOR,MAINE All Proprietary Fund Types and Similar Trust Funds ; Combined Statement of Cash Flows For the fiscal year ended June 30,2001 � Proprietary Fiduciary , Fund Type Fund Type Totals Enterprise Nonexpendable (Memorandum � Funds Trust Funds Only) Reconciliation of operating income(loss)to net cash provided by(used in)operating activities ' , � Operating income(loss) $ (2,607,055) $ 67,777 $ (2,539,278) � Adjustments to reconcile operating income(loss)to net cash � provided by(used in)operating activities Depreciation and amortization 7,9�2,609 - 7,972,609 , Allowance for uncollectible accounts 23,812 - 23,812 Presentation differences: t I � Interest - (64,756) (64,756) Transfers,net - (57,590) (57,590) Studentloan fund - 5,002 5,002 i Changes in assets and liabilities: (Increase)decrease in accounts receivable (298,838) - (298,838) (Increase)decrease in due from water district 38,069 - 38,069 ; ', (Increase)decrease in inventories (17,267) - (17,267) � (Increase)decrease in prepaid items 151,758 - ]51,758 Increase(decrease)in accounts payable (78,292) - (78,292) Increase(decrease)in deferred revenue (250,549) - (250,549) Increase(decrease)in other cuttent liabilities (27,360) - (27,360) Total adjustments 7,513,942 (117,344) 7,396,598 Net cash provided by(used in)operating activities $ 4,906,887 $ (49,567) $ 4,857,320 � r- The notes to the financial statements are an integral part of this statement. Continued from previous page II -7 INDEX OF NOTES TO FINANCIAL STATEMENTS , Summary of Significant Accounting Policies Note Page A Reporting Entity II—8 B Measurement Focus, Basis of Accounting and Basis of Presentation II—8 C Assets, Liabilities and Equity II— 10 Stewardship,Compliance and Accountability A Budgetary Inforrnation II— 13 , _' B Budget/GAAP Reconci.liation , II— 13 - C Excess of Expenditures Over.Appropriations II— 14 , D Deficit Fund Equity II— 15 Detailed Notes on All Funds and Account Groups A Deposits and Investments II— 15 � B Property Tax II— ]6 C Interfund Transactions II— 17 D Due From Other Governments , II— 17 - E Fixed Assets - TI— 18 F Leases � � ,' ; �� II— 19 � G Other Assets � II—20 � H Deferred Revenue � II—20 I Long-Term Debt ' - " II—20 ; J Contributed Capital II—24 ` K Nonexpendable and Expendable Trust Fund Balances II—24 L Designated Fund Balance II—26 Other Information � A Risk Management II—27 B T�Increment Financing Districts • II—28 - C Segment Information—Enterprise Funds � II—28 D Contingent Liabilities II—29 E Retirement II—29 F Landfill Closure and Postclosure Care Costs II—31 ,� G Subsequent Events II—31 . H Bangor Nursing&Rehabilitation Center II—32 CITY OF BANGOR,MAINE Notes to Financial Statements June 30,2001 , SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES � The accounting methods and procedures of the City of Bangor conform to accounting principles generally accepted in the United States of America(GAAP)as applied to government units. The Governmental ! Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental � accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity The City of Bangor was incorporated under the laws of the State of Maine in 1834 and operates under a � council/manager form of government. In evaluating how to define the reporting entity, for financial reporting purposes, management has considered all potential component units. The decision to include a , potential component unit was made by applying the criteria set forth in generally accepted accounting principles. The criterion used defines the reporting entity as the primary government and those component units for which the primary government is financially accountable. Financial accountability is defined as appointment of a voting majority of the component unit's board and either a)the ability to impose will by the primary government,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 theses financial statements. ; B. Measurement Focus,Basis of Accounting,and Basis of Presentation � , The City uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate I accounting entity with a self-balancing set of accoun�s. An account group, on the other hand, is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. � Funds are classified into three categories: governmental,proprietary and fiduciary. Each category,in turn, , . is divided into separate "fund types". The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All Governmental Funds are accounted for using a current financial resources measurement focus. With ` this measurement focus, only cunent assets and current liabilities generally are included on the balance sheet. Operating statements of theses funds present increase(i.e.,revenues and other financing sources) and decreases(i.e., expenditure and other financing uses)in net current assets. � All Governmental Fund types use the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual(i.e.,when they become both measurable and available). "Measurable means the amount of the transaction can be determined and _ "available"means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the related fund liabiliiy is incurred. � Principal and interest on general long-term debt are recorded as fund liabilities when due. Certain compensated absences, claims and judgments are recorded as fund liabilities when expected to be CITY OF BANGOR,MAINE Notes to Financial Statements, Continued SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED liquidated with expendable available financial resources. -� Those revenues susceptible to accrual are property taxes and charges far services. Fines, licenses, and permits are not susceptible to accrual because generally they are not measurable until received in cash. , The City adopted the provisions of Governmental Accounting Standard Board Statement No. 33 "Accounting and Financial Reporting for Nonexchange Transactions"during the year ended June 30,2001. In accordance with GASB 33 grants and similar items are recognized as revenues as soon as all eligibility � requirements imposed by the provider have been met. � ` Governmental funds are used to account far all or most of a City's general activities, including the collection and disbursement of earmarked monies (special revenue funds), and the acquisition or j construction of general fixed assets(capital project funds). The General Fund is used to account for all activities of the general government not accounted for in some other fund. The following are the City's governmental fuvd types: � � General Fund-The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. � - Special Revenue Funds-Special Revenue Funds are used to account for the proceeds of specific revenue _ sources(other than expendable trusts or major capital projects)that are legally restricted to expenditure for � � specified purposes. Capital Proiects Fund-The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of fixed assets and major capital facilities(other than those financed by � proprietary fund). ' All Proprietary Funds and Nonexpendable Trust Funds are accounte� for on a flow of economic resources � measurement focus. With this measurement focus, all assets and all liabilities associated with the operation _ , of these funds are included in the balance sheet. Fund equity(i.e.,net total assets) is segregated into contributed capital and retained earnings components. Proprietary Fund type operating statements present � increases(i.e.,revenues)and decreases (i.e., expenses) in net total assets. � The accrual basis of accounting is utilized by Proprietary Fund Types and Nonexpendable Trust Funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City has adopted Governmental Accounting Standards Board 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 are used to account for activities similar to those found in the private sector,where the determination of net income is necessary or useful to sound financial administration. Goods or services � from such activities are primarily provided to outside parties. The following is the City's Proprietary Fund � Type: CITY OF BANGOR,MAINE , Notes to Financial Statements,Continued SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Enterprise Funds—Enterprise Funds are used to account for operations(a)that are financed and operated in a manner similar to private business enterprises,where the intent of the governing body is that the costs (expenses, including depreciation)of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or(b)where the governing body has decided � that periodic determination of revenues earned, expenses incurred, and/or net income, is appropriate for capital maintenance, public policy, management control, accountability or other purposes. Fiduciary Funds are used to account for assets held on behalf of outside parties, including other governments. The following are the City's Fiduciary Fund Types: � Nonexpendable Trust Funds—Nonexpendable Trust Funds carry the obligation to maintain the trust � principal, accordingly the funds are accounted for and reported as proprietary funds since capital maintenance is critical. � Expendable Trust Funds—Expendable Trust Funds account for assets where both the principal and interest , may be expended. The funds are accounted for and reported as governmental funds. A� F�—Agency Funds are custodial in nature and do not present results of operations or have a measurement focus. The funds generally are used to account for assets that the City holds on behalf of � others as their agent. � Account Groups are used to establish accounting control and accountability for certain long-term assets and liabilities of governmental fund types. The account groups do not present results of operations or have a ' measurement focus. The following are the City's Account Groups: , General Fixed Asset Account Group—This account group is established to account for all fixed assets of the City,other than those accounted for in the proprietary funds. General Long-Term Debt Account Group—This account group is established to account for all long-term debt of the City except that accounted for in the proprietary funds. � C. Assets,Liabilities and Equity '_ 1. Cash and Investments � . Cash includes amounts in demand deposits as well as short-term investments with a maturity date within three months of the date acquired by the City. State statutes authorize the City to invest in obligations of �� the U. S. Treasury, commercial paper, corporate bonds and repurchase agreements. City policy prohibits the investment in so-called"derivative instruments". 2. Interfund Loans Operations during the course of the year give rise to interfund lending/borrowing arrangements. T'hese j loans are classified as"Interfund loans receivables"or"interfund loans payables"on the balance sheet. The amount of such balances not expected to be repaid in the foreseeable future are reserved for in the � �" City's general fund. CITY OF BANGOR,MAINE - Notes to Financial Statements,Continued SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED , 3. Inventories and Prepaid Items ` Inventories consist of expendable supplies held for consumption and are valued at cost. Under the consumption method,the costs of inventory items are recognized as expenditures/expenses when used. The consumption method does not require a reserve for inventory and the City has chosen not to have such a , reserve. Payments made to vendors for services that will benefit future fiscal years are recorded as prepaid items,with an offsetting reserved fund balance. 4. Fixed Assets � General Fixed Assets General fixed assets acquired for general government purposes are recorded as expenditures in the governmental funds and capitalized at cost in the General Fixed Asset account group. The amount of interest incuned during construction of capital assets is not capitalized in the General Fixed Asset account group. No depreciation is recorded on general fixed assets. � Public domain("infrastructure")general fixed assets consist of roads,bridges, curbs and gutters, streets and sidewalks and lighting systems are not capitalized, as these assets are immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is satisfied without recording these ' � assets. The costs of normal maintenance and repairs that do not add to the value of the assets or materially _ extend asset lives, also, are not capitalized. � Proprietary Fixed Assets Property and equipment acquired by the City's enterprise fuvds are reported at cost or at estimated fair value at time of donation. Construction costs of sewer lines and airport improvements that are funded � through grants, entitlements or shared revenues are capitalized and reported as contributed capital. Interest costs incurred during the construction phase of proprietary fund fixed assets is reflected in the capitalized ` value of the constructed asset, net of interest earned on the invested proceeds over the same period. � Depreciation is charged to operations over the fixed assets' estimated useful lives using the straight-line _ method. Depreciation on assets acquired through contributions is closed to the contributed capital account. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend _� asset lives are expensed. In the enterprise funds,the following estimated useful lives are used to compute depreciation: Buildings 25 —40 years Equipment 5 - 20 years Pipelines and mains 100 years Aircraft operational assets 5—40 years � CITY OF BANGOR,MAINE , Notes to Financial Statements,Continued � SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED 5. Compensated Absences Governmental Fund Types Accumulated vacation or compensatory time or vested sick leave that is expected to be liquidated with expendable resources is reported as an expenditure and a fund liability of the fund that will pay it. Amounts of accumulated leave that 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. Proprietary Fund Types � Accumulated vacation, compensatory time and vested sick leave is recorded as an expense and liability of those funds as the benefits accrue to employees. No liability is recarded for non-accumulating rights to - , receive sick pay benefits. 6. Long-term Obligations , Governmental Fund Types � Long-term debt is recognized as a liability when due. For other long-term obligations, only that portion expected to be financed from expendable available resources is reported as a fund IiabiliTy. The remaining ; portion of such obligations is reported in the General Long-Term Debt account group. Proprietary Fund Types Long-term debt and other obligations are reported as liabilities and accounted for in these funds. ' 7. Fund Equity i Contributed capital is recorded in proprietary funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable � for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. ,_ 8. Memorandum Only—Total Columns � Total columns on the general purpose financial statements are captioned"memorandum only"to indicate � that they are presented only to facilitate financial analysis. Data in these columns do not present financial � 0 position,results of operations or changes in cash flows in conformity with GAAP. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. � 9. Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative data has not been presented in all statements because its inclusion would make certain ;- � statements unduly complex and difficult to understand. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. CITY OF BANGOR,MAINE Notes to Financial Statements,Continued STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY � A. Budgetary Information Budgets are prepared on a modified accrual basis of accounting, with the exception of depreciation within the enterprise funds. Budgets far the General Fund and enterprise funds are formally adopted each year through the passage of an appropriation resolve. Budgets for special revenue and capital projects funds have adopted project-length budgets. Unencumbered appropriations lapse at fiscal year end. Encumbrances represent commitments related to unperformed contracts for goods or services. , Encumbrance accounting is employed in governmental funds. Encumbrances(i.e., purchase orders, contracts, and other commitments)outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments have not be honored in the current � year. For budgetary purposes, encumbrances are treated as expenditures within both governmental and � proprietary fund types. On or before the second Monday in April,the City Manager submits to the City Council a proposed ' operating budget for the ensuing fiscal year. The Council holds public meetings and a final budget must be - prepared and adopted no later than June 30th. Should the Council fail to adopt an operating budget on or before June 30th, by Charter,the budget proposed by the City Manager becomes effective. The budget is adopted at the department level through the passage of appropriation resolves. The City Manager may make transfers of appropriations within a department. Transfers between departments or additional appropriations require the approval of the City Council. The City Council made several � supplementary budgetary appropriations throughout the year,which were not considered material. B. Budget/GAAP Reconciliation The following schedule reconciles the General Fund amounts on the Statement of Revenues, Expenditures, � and Changes in Unreserved/LJndesignated Fund Balance—Budget and Actual—Budgetary Basis to the amounts on the Combined Statement of Revenues, Expenditures, and Changes in Fund Balances: Excess of revenues and other financing sources over expenditures and other uses(budget) $ 1,263,372 Activity in designated fund balance 37,699 ' 2001 encumbrances 670,318 ' 2000 encumbrances lapsed (6,120) \ 2000 encumbrances paid (404,600) Excess of revenues and other financing sources over expenditures and other uses(GAAP) $ 1,560,669 CITY OF BANGOR,MAINE Notes to Financial Statements, Continued STEWARSHIP, COMPLIANCE AND ACCOUNTABILITY, CONTINUED The following schedule reconciles the amounts on the enterprise funds' Schedules of Revenues, , Expenditures and Encumbrances—Budget and Actual—Budgetary Basis to the amount on the Combined Statement of Revenues,Expenses, and Changes in Retained Earnings/Fund Balances: � Excess(deficiency)of revenues over expenditures and encumbrances: Sewer $ (1,114,371) Airport (1,246,081) Park Woods (l 9,665) � City Nursing Facility 59,293 , Parking (295,896) � Bass Park (104,467) Municipal Golf Course 52,924 Economic Development 77,696 (2,590,Sb7) , Nonoperating revenues classification (2,406,450) - Investments at market value (925,066) Capital outlay 1,113,022 Capital projects ]7,608 Cash basis to accrual basis adjustments (153,400) . Principal payments 4,227,853 2001 encumbrances 234,287 2000 encumbrances (]7,605) Nonoperating expenses classification (2,106,737) ; � Operating loss $(2,607,055) C. Excess of Expenditures Over Appropriations General Fund '� The following departments were over-expended by the indicated dollar amounts; Council $657,Legal $11,396,Insurance$5,288, Fire $127,034,Parks and Recreation $1,875, and Tax Increment Financing Payments $30,503. These over-expenditures were funded by receipt of revenues in excess of � ' appropriation and under-expenditures within other General Fund departments. � .� Enterprise Funds Park Woods—This fund was over-expended on a budgetary basis by$30,980. The deficit was not funded and resulted in an increase to the deficit retained earnings balance. Parkin —This fund was over-expended on a departmental basis by $42,491. The deficit is eliminated on a GAAP basis. Bass Park—This fund was over-expended on a departmental basis by$5,175. The deficit was funded by receipt of revenues in excess of appropriation. CITY OF BANGOR,MAINE Notes to Financial Statements,Continued STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY, CONTINUED , D. Deficit Fund Equity Special Revenue Fund Community Develoument Block Grant—The deficit of$330,386 will be funded in the subsequent years with increased collection of program income. , Grant—The deficit of$24,459 will be funded in the subsequent years with increased collection of program income. Enterprise Funds Park Woods—The deficit of$78,793 represents an increase over prior year. The deficit will be funded in ,- the subsequent years through increased collection efforts and rents as well as addressing the long-term � maintenance of the development. Bass Park-The deficit of$1,428,069 was stable for the year. The City Council has begun to take steps to � address this ongoing problem, and has determined that the facility will either be closed or replaced in fiscal year 2004 under a financial and management structure that more clearly reflects its economic benefit and more equitably distributes it business risk. DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS � A. Deposits and Investments At year-end,the City's carrying amount of deposits was$1,736,039 and the bank balance was$2,836,322. Of the bank balance, $2,286,508 was covered by federal depository and Travelers insurance or by collateral held by the City in its name,the remaining$549,817 was uninsured. Statutes autharize 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. Investments are categorized as follows to give an indication of the level of risk assumed by the City at year end: (1) insured or registered or for which securities are held by the City or its agent in the City's name, ' (2) uninsured and unregistered for which the securities are held by the bank's trust deparhnent or agent in '. the City's name, (3) uninsured and unregistered for which the securities are held by the bank's trust department or agent but not in the City's name. CITY OF BANGOR,MAINE Notes to Financial Statements,Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS, CONTINUED � At year end,the City's investments consisted of the following: Carrying Category Value 1 2 3 U.S. Government and agencies $26,316,700 - $26,316,700 - State of Maine(agency bonds) 596,417 - 596,417 - Commercial paper 5,024,417 - 5,024,417 - 31,937,534 - 31,937,534 - - Certificate of deposit 50,000 , Mutual Funds(1) 13,843,484 - - - Total investments $45,831,018 50,000 31,937,534 - - (1) Mutual Funds and the Certificate of deposit are not classified in any of the three above categories because they are not evidenced by securities that exist in physical or book entry form. Due to higher cash flows at certain times during the year,the City's investment in U.S. Government and 1 agency obligations, repurchase agreements and mutual funds fluctuates significantly. A reconciliation of cash and investments as shown on the combined balance sheet for the City follows: � Cash and Cash Equivalents $ 1,748,724 Investments 37,158,269 ' Investment of bond proceeds(other assets) 8,672,749 47,579,742 Less: Pending items (12,685) , $47,567,057 Carrying amount of deposits 1,736,039 Carrying amount of investments 45,831,018 Carrying amount of investments $47,567,057 B. Property Tax Property taxes for the current year were levied July 7, 2000, on the assessed value listed as of the prior April 1 for all real and personal property located in the City. Assessed values are periodically established by the City's Assessor at 100% of assumed market value. Taxes were due in two installments: September 15,2000 and March 15,2001. Interest was charged at 10.75% on all taxes unpaid as of the due date. Property ta�ces levied during the year were recorded as receivables at the time the levy was made. The - receivables collected during the year and in the first sixty days following the end of the fiscal year have _ been recorded as revenues. The remaining receivables have been recorded as deferred revenues. T�liens are placed on real property within twelve months following the tax commitment date if taxes are delinquent. The City has the authority to foreclose on property eighteen months after the filing of the lien if the tax liens and associated costs remain unpaid. . CITY OF BANGOR,MAINE Notes to Financial Statements,Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS,CONTINUED C. Interfund Transactions Individual fund interfund receivable and payable balance at June 30, 2001 were as follows: Receivable Pavable General Fund $ 1,954,995 - Community Development Block Grant Fund - 255,300 Grant Fund - 117,352 ' Park Woods Fund - 26,988 Bass Park Fund - 1,555,355 $ 1,954,995 1,954,995 Individual fund transfers to and from other funds for the fiscal year ended June 30, 2001 were as follows: Transfers to Transfer from General Fund $2,432,053 $ 163,514 Capital Projects Fund 27,666 2,289,300 Expendable Trust Funds 84,172 - Enterprise Funds 412,684 561,351 ' Nonexpendable Trust Funds 57,590 - $ 3,014,165 $ 3,014,165 D. Due From Other Governments Due from other governments is comprised of the following amounts at June 30, 2001: Federal State of Government Maine Other Total General Fund $ 30,675 758,088 354,366 1,143,129 � Special Revenue Funds$ 111,461 - - 111,461 ' Capital Projects Fund $ - 891,922 - 891,922 Enterprise Funds $1,059,650 48,885 - 1,108,535 Of the General Fund'.s $758,088 due from State of Maine, $447,387 represents school grant and State agency billings, and $158,511 represents general assistance claims. CITY OF BANGOR,MAINE Notes to Financial Statements,Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS, CONTINUED E. Fixed Assets . The following is a summary of changes in the General Fixed Asset Account Group during the fiscal year: Transfers Capital Balance and project Balances June 30, 2000 Additions deletions close-outs June 30,2001 Land,buildings, and construction in process: Land $ 5,198,491 - - - 5,198,491 Schoolland 1,350,988 - - - 1,350,988 - Buildings 5,847,396 10,738 - 412,984 6,271,118 School buildings 32,683,209 68,456 - 1,399,661 34,151,326 Construction in process 2,138,434 4,070,064 - (3,330,866) 2,877,632 Total land, buildings, and ' construction in process 47,218,518 4,149,258 - (1,518,221) 49,849,555 Equipment: Vehicles 8,405,723 - - 593,750 8,999,473 Machinery and equipment 4,929,518 77,538 - 924,471 5,931,527 - School other 5,458,015 136;097 - - 5,594,112 Total equipment 18,793,256 213,635 - 1,518,221 20,525,112 , Total fixed assets $ 66,011,774 4,362,893 - - 70,374,667 - The following is a summary of the proprietary fund type property,plant and equipment at June 30, 2001: Land $ 940,204 Buildings, plant and'equipment 44,957,349 Pipelines and mains 39,548,647 � Aircraft operational assets 192,068,635 Parking structures 6,901,752 Construction in process 6,998,870 291,415,457 �� Less: accumulated depreciation 110,735,616 $ 180,679,841 In 2001,total proprietary fund type interest incurred was$1,945,493. Of that amount$1,945,493 was charged to operations during the year. CITY OF BANGOR,MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS, CONTINUED F. Leases Operating Leases The Airport and Economic Development Fund are the lessors of various buildings and land parcels under � operating leases expiring in various years through 2039 and 2033, respectively. Minimum future rentals to , be received on noncancelable leases as of June 30, 2001 are: Fiscal year ending Economic June 30, Airport Development 2002 $ 2,052,257 251,963 2003 1,710,106 236,242 � 2004 914,965 227,061 2005 759,155 180,720 2006 724,547 180,720 Subsequent to 2006 7,861,9]8 2,808,327 $ 14,022,948 3,885,033 Minimum future rentals do not include contingent rentals,which may be received as stipulated in the lease contracts. The Airport received $1,221,443 in contingent rentals in fiscal year 2001. , Capital Leases The General Fund is obligated under leases accounted for as capital leases. The leased assets and related obligations are accounted for in the General Fixed Asset and Long-Term Debt Account Groups. The � following is a schedule of future minimum lease payments under the capital leases, together with the net present value of the minimum lease payments as of June 30, 2001. Fiscal year ending . June 30, General Fund 2002 $ 84,168 2003 84,168 2004 72,954 2005 3,491 Minimum lease payments 244,781 Less: interest 20,871 I Present value of minimum lease payments $223,910 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS,CONTINUED G. Other Assets Other assets are comprised of the following: Capital Enterprise Projects Fund Fund Investment of bond proceeds $4,020,769 4,651,980 Deposits - I5,000 � Operating rights (net of amortization) - 117,823 Bond issuance costs(net of amortization) - 207,532 Property held for resale - 100,357 Total $4,020,769 5,092,692 H. Deferred Revenue General Fund deferred revenue consists of$2,043,455 in deferred taxes and $168,767 of advance deposits. Special Revenue Funds deferred revenue of$4,534,841 represents future revenue equal to loans made pursuant to the Community Development,Urban Development Action Grants and Economic Incentive Revolving Loan Fund. Under the terms of these grants, loans made are recognized as an expenditure in the Special Revenue Fund when they occur. Further, in accordance with regulations governing such funds,the repayments of such loans are considered program income as received and are available to the recipient for additional use within the program. Enterprise Funds deferred revenue of $92,248 represents advance deposits. I. Long-Term Debt - General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital additions. General obligation bonds have been issued for both general government and enterprise activities. These bonds are reported in the enterprise funds if they are expected to be repaid from enterprise fund revenues. In addition,general obligation bonds have been issued to refund general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bonds. The following is a summary of general obligation bond and note transactions of the City for the fiscal year ended June 30, 2001: Bonds and notes payable at June 30,2000 $ 59,928,034 Add: principal additions 6,384,600 Less: principal repayments 5,575,206 Bonds and notes payable at June 30,2001 $60,737,428 CITY OF BANGOR,MAINE Notes to Financial Statements, Contirnued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS,CONTINUED Bonds and notes payable at June 30,2001 are comprised of the following: Fiscal year Interest General Fund Enterprise Total of maturity rate City School Funds June 30,2001 Long-term debt: Public improvements-1988 2008 7.37%-8.60% $ - - 700,000 700,000 � Treatment Plant 2011 7.00%-7.10% - - 11,400,000 11,400,000 Public improvements-1992 2013 5.00%-530% 250,000 4,015,000 3,245,000 7,510,000 Public improvements- 1992 2003 4.75%-5.40°/a 95,000 - - 95,000 Combined sewer overflow 2014 2.46% - - 1,211,600 1,211,600 Combined sewer overflow 2014 2.45% - - 1,290,900 1,290,900 Refunding bonds 2011 2.35%-5.20% 302,778 2,707,262 6,629,960 9,640,000 Public improvements- 1996 2016 5.05%-5.85% 680,000 - - 680,000 Combined sewer overflow 2017 3.52% - - 2,466,764 2,466,764 ; Tax increment financing note* 2016 6.00%-6.90% 870,000 - - 870,000 , Public improvements—1996 2017 5.35%-6.50% 1,295,000 - - 1,295,000 Combined sewer overflow 2018 3.03% - - 2,146,390 2,146,390 Public improvements—1997 2018 4.875%-5.3% 2,982,3]0 3,155,000 1,522,690 7,660,000 Tax increment financing note* 2018 6.19% 265,C100 - - 265,000 Public improvements note 2002 3.80% 130,100 - 391,600 521,700 Public improvement—1999 2019 4.20% 1,609,900 120,000 1,360,100 3,090,000 Maine Business Enter Park 2018 5.00% - - 235,075 235,075 Waterfront note* 2004 6.00% - - 285,399 285,399 - Public Improvements—2000 2020 5.25%-5.90% 1,994,400 - 995,600 2,990,000 Public Improvements—2001 2021 4.25%-5.00% 1,466,000 300,000 4,050,000 5,816,000 State Revolving Renovation—School** 2011 0.00% - 568,600 - 568,600 Total bonds and notes payable $]1,940,488 10,865,862 37,931,078 60,737,428 ' *Three series of general obligation notes aggregating$1,420,399 are held by the City's Airport Fund at fixed,taacable market rates of interest. These notes are structured with a put feature,which,upon certain precedent conditions,allows the Airport to present them for redemption to the City's General Fund. It is management's intention,should a put occur,to fund it by passing the note along to its Sewer Fund,where it will be converted to a three to five year fixed note with level debt service,albeit without a put option. **The original amount of this debt was$1,000,000,of the total,$431,400 has been forgiven by the State. Annual debt service requirements to maturity for general obligation bonds and notes payable are as follows: Fiscal year ending June 30, Principal Interest Total 2002 $ 4,969,861 2,724,792 7,694,653 2003 4,448,865 2,477,034 6,925,899 2004 4,533,316 2,263,418 6,796,734 2005 4,331,397 2,058,125 6,389,522 �� 2006 4,343,626 1,862,512 6,2m6,138 � 2007-2011 21,169,077 6,350,264 27,519,341 2012-2016 12,112,910 2,463,132 14,576,042 2017-2021 4,828,376 490,994 5,319,370 Total $ 60,737,428 20,690,271 81,427,699 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS,CONTINUED The City is subject to the laws of the State of Maine,which limits the amount of long-term debt to 15%of the state's assessed valuation of the City. At June 30,2001,the statutory limit for the City was $225,630,000. The City's outstanding long-term debt of$60,737,428 at June 30, 2001 was within the statutory limit. Bond Anticipation Notes Bond anticipation notes are issued in anticipation of receipt of bond proceeds. The City has $4,000,000 of bond anticipation notes outstanding at June 30,2001,the proceeds of which were used to finance the � expansion of Bangor High School. The interest rate is 3.42%with a maturity of March 1, 2002. The City anticipates converting the bond anticipation notes to genera) obligation bonds in early 2002. Revenue Bonds ' Revenue bonds are where income derived from the acquired or constructed asset is pledged to pay debt service. Bangor International Airport(Airport Fund)has $4,465,000 of limited obligation revenue bonds outstanding at June 30, 2001, the proceeds of which were used to finance expansion of the terminal. The interest rate varies from 5.00%to 6.�0%with final maturity in fiscal year 2013. The following is a summary of limited obligation revenue bond transaction of the City for the fiscal year - ended June 30, 2001: Limited obligation revenue bonds at June 30, 2000 $ 4,710,000 Less: principal repayments 245,000 Limited obligation revenue bonds at June 30, 2001 $4,465,000 Annual debt service requirements to maturity for limited obligation revenue.bonds are as follows: Fiscal year ending June 30, Principal Interest Total 2002 $ 260,000 279,308 539,308 2003 275,000 263,789 538,789 2004 290,000 247,045 537,045 2005 3I0,000 228,890 538,890 � 2006 330,000 208,958 538,958 2007-2011 1,995,000 686,040 2,681,040 2012-2013 1,005,000 68,508 1,073,508 Total $ 4,465,000 1,982,538 6,447,538 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS, CONTINUED Advance Refunding In prior years,the City defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly,the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. , At June 30,2001, $2,875,900 and $6,279,100 of the General Long-term Debt Account Group and Enterprise Funds bonds, respectively, are considered defeased. Within the Enterprise Funds the advance refunding transaction gave rise to a deferred amount on refunding. The deferred amount on refunding will be amortized over the remaining life of the old bonds. Overlapping Debt In addition to the bonds and notes payable,the City is contingently responsible for a proportionate share of the following overlapping debt as of June 30, 2001: Percentage Debt Applicable City's share Unit outstanding to the Citv of debt General obligation bonds $ 60,737,428 100.00% 60,737,428 Bond anticipation note 4,000,000 100.00% 4,000,000 Limited obligation revenue debt 4,465,000 100.00% 4,465,000 Penobscot County 1,530,000 23.59% 360,927 $ 70,732,428 69,563,355 This results in a ratio of City debt to April 1,2000 assessed valuation of 4.30%and a ratio of overlapping � debt to April 1,2000 valuation of 4.52%. Changes in Long-term Liabilities � During the year ended June 30, 2001,the following changes occurred in liabilities reported in the General Long-term Debt Account: ` Balance Balance June 30, 2000 Additions Reductions June 30, 2001 General obligation debt $ 21,909,832 3,285,917* 2,389,399 22,806,350 Obligations under capital leases 293,503 - 69,593 223,910 � Accrued compensated absences 1,397,887 927,299 796,429 1,528,757 Unfunded actuarial liability 31,488,538 2,432,402 2,138,532 31,782,408 Long-term obligation for self insurance 2,107,277 286,642 130,306 2,263,613 $ 57,197,037 6,932,260 5,524,259 58,605,038 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS,CONTINUED J. Contributed Capital A summary of changes in contributed capital follows: Contributed capital at June 30,2000 $ 112,819,951 Add: contributions 4,936,639 Less: depreciation . 4,218,462 � Contributed capital at June 30, 2001 $ 113,538,128 K. Nonexpendable and Expendable Trust Fund Balances As of June 30, 2001,the balances of nonexpendable and expendable trust fund balances were as follows: Unexpended Principal income Nonexpendable: Cemetery: Perpetual Care $ 393,665 116,633 Parks: Bass Park - 142,101 Arthur Chapin 14,538 5,986 City Missionary: Hiram Fogg 1,000 4,354 Louis& Sophia Kirstein 500 3,109 Hiram Oliver 2,000 9,459 Penobscot Association for the Blind 11 10 Lorenzo Sabine 1,000 2,736 � Stetson ]2,000 26,667 Education: Bangor High School 200 2,100 ' French Medal 35,738 36,859 Holton Public School 2,000 3,454 Kirstein Scholarship 5,000 8,754 A.E. Webber,Jr. 1,200 127 Aid for Aged Women: Charles Adams 10,000 � 11,928 Thomas Upham Coe 3,000 3,578 Anna H. Pierce 4,000 4,770 Annie Stetson 5,067 5,897 George Stodder 11,000 13,120 Wakefield 10,000 17,177 Other Funds: Dorothea Miller 507 750 Bangor Fireman's Relief 7,639 2,146 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS, CONTINUED � Unexpended Principal income Nonexpendable,continued: Kirstein City Hospital 507 2,695 , Arthur Morey 1,013 6,934 Melvin Murch 5,733 _ 24,870 O'Connell Trust 1,000 9,873 Twitchell Trust - 205 Flora Seavey 1,500 2,139 Charlotte Hall 5,984 28,019 Pfaff Trust 811 3,004 Porter-Pulsifer $ 5,000 16,712 ' Jewish War Veterans 758 467 Revolving Loan: Sophia Kirstein Student Loan 134,905 - Total nonexpendable trusts $ 677,276 516,633 Expendable: Dental Clinic $ 72,541 17,067 Preservation of Records 38 80 Adopt a Park 56,883 7,237 Park Woods Children 664 86 , City Forest 88,236 13,229 BFD Imaging ]6,645 9,531 Paul Bunyan 100 6 USS Maine Monument 11,449 662 ' Kenduskeag Stream Trail 835 243 Tricentennial 529 - Total expendable trusts $247,920 48.141 CITY OF BANGOR,MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS, CONTINUED L. Designated Fund Balance � General Fund Designated fund balances represent those portions of the General Fund balance specifically designated for the following at June 30,2001: 2001 2000 Departmental balances carried forward $ - $ 13,748 School department-regular 991,402 570,186 adult education 55,622 36,610 reading assessment 14,540 - special revenue 179,655 205,172 , school lunch 102,048 70,428 trust and agency 80,090 196,036 Total balances carried 1,423,357 1,092,180 Accrued summer teacher payroll (2,077,423) (1,982,328) Pooled equipment 915,341 875,536 Bus equipment 86,910 68,837 Fire equipment 44,689 1,994 Improvement 590,996 595,591 Workers' compensation 2,227,817 2,071,633 Self insurance 35,796 35,644 Cameron stadium ' 110,394 106,186 Landfill closure 79,076 76,062 Cascade park maintenance 12,482 9,269 Demolition 1,178 1,133 PEG capital support 38,093 173,367 Pickering Square development district 101,762 119,507 MSRS Consolidated Plan 525,000 240,000 Parks&Rec Improvement 64,539 109,829 Bangor Nursing&Rehabilitation Center-line of credit 400,000 - Amounts due from Bangor Nursing& Rehabilitation Center 369,631 - Arbitrage rebate- General Fund 31,495 30,294 School department 170,715 164,207 Total General Fund designated fund balance $ 5,151,848 $3,788,941 � Capital Fund Designated fund balance represents amounts that have been appropriated by council authorization to finance completion of specific capital projects. CITY OF BANGOR,MAINE Notes to Financial Statements,Continued OTHER INFORMATION ' A. Risk Management The City is exposed to various risks of loss related to torts,theft of, damage to and destruction of assets, errors and omissions, injuries to employees, and natural disasters for which the City either carries commercial insurance or is self—insured. The City currently reports all of its risk management activities in the General and Enterprise Funds. Claims expenditure, liabilities and reserves are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The City purchases coverage under a number of commercially available insurance policies such as; commercial general liability, auto, property damage and crime and dishonesty, each with limits and deductibles deemed prudent given the risks, cost of coverage and the City's ability to fund certain types of losses. For those claims covered by commercial insurance,the amount of settlements has not exceeded the coverage for the years ended June 30, 2001, 2000 and 1999. The City is self-insured for its workers' compensation liability. Reserves are actuarially determined each year to assure funding adequacy. In addition,the City purchases excess workers' compensation insurance to limit its financial risk. At June 30,2001, the amount of self-insurance liabilities was $3,108,940. This liability is the City's best estimate based on available information. Changes in the reported liabilities since July 1, 1999 resulted from the following: Workers' All other self- Compensation insured risks Total Unpaid claims as ofJuly 1, 1999 $ 3,104,527 $ 137,447 $ 3,241,974 Incurred claims 126,024 - 126,024 Payments (582,113) - (582,113) Changes in estimates and other adjustments 368,522 (101,803) 266,719 Unpaid claims as of July l,2000 3,016,960 35,644 3,052,604 Incurred claims 217,062 - 217,062 Payments (360,698) - (360,698) Changes in estimates and other adjustments 199,820 152 199,972 Unpaid claims as of June 30, 2001 $ 3,073,144 $ 35,796 $ 3,108,940 Comprised o£ Current obligations of the General Fund $ 607,890 $ - $ 607,890 , Enterprise funds 237,437 - 237,437 General Long-term Debt Account Group 2,227,817 35,796 2,263,613 Total $3,073,144 $ 35,796 $3,108,940 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued OTHER INFORMATION, CONTINUED B. Tax Increment Financing Districts The City has established tax increment financing districts, all of which dedicate a portion of the incremental increase in real estate and/or personal property tax revenues over staggered twenty year periods for the following purposes: B.I.A.Municipal Development District No. 1 -Partially financed $27.5 million dollars of capital expenditures at manufacturing facilities leased by General Electric Company. Main Street Municipal Development District-Assisted Penobscot Development Limited Liability Company in financing the extraardinary 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 Municipal Development District-Assisted Realty Resources Chartered in a major redevelopment project converted the former Freese's department store building into affordable housing units. C. Segment Information-Enterprise Funds There are eight services provided by the City which are financed by user charges; Sewer Utility,Airport, Park Woods, City Nursing Facility,Parking, Bass Park, Municipal Golf Course and Economic Development. Selected segment information for the year ended June 30, 2001, except for the City Nursing Facility,which is for the six months ended December 31, 2000 is as follows: Sewer Park City � Bass Municipal Economic Utilitv Aimort Woods Nursin ParkinQ Park GolfCourse Development Total Operating revenues $6,276,990 9,891,930 283,544 1,497,852 744,045 1,294,895 676,391 268,314 20,933,961 Depreciation expense* 1,482,390 5,680,208 86,85� 57,118 317,555 221,189 95,692 31,600 7,972,609 Operating income(loss) 2,286,405 (4,422,466) (134,974) 28,681 (92,551) (592,236) 170,661 149,425 (2,607,055) Operating Uansfers(out) (247,430) (49,531) 36,203 655,023 316,039 571,353 (93,566) (22,157) 1,165,934 Netlncome(loss) 962,827 (2,773,491) (98,771) 664,412 52,110 (83,596) 93,010 356,383 (827,116) Current capital conVibutions 1,431,840 3,579,370 - - - - - - 5,011,210 ' Fixed asset additions 2,943,369 4,683,766 - 28,871 161,296 105,927 164,879 228,900 8,317,008 Net working capital 888,761 5,667,919 (60,334) - (559,883) (1,619,927) 488,994 689,124 5,494,654 Total assets 63,111,674 135,934,675 1,708,946 - 6,628,409 2,257,440 1,831,817 3,725,915 215,198,876 Bonds payable 29,782,726 4,465,000 - - 6,153,359 1,474,520 - 520,473 42,396,078 Total equity 32,637,116 129,502,207 1,450,727 - 241,133 (907,163) 1,780,568 3,039,005 167,743,593 • Includes depreciation and amortization of$4,218,462 on assets acquired with grants and contributions. CITY OF BANGOR,MAINE Notes to Financial Statements, Continued OTHER INFORMATION, CONTINUED � D. Contingent Liabilities In February 1998,the City was served 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 partied. In September 2000,the City signed a consent decree with the EPA to settle EPA's past costs at the site. Under this decree,the City is obligated to pay a ' total of$76,557. Selection of the final remedy is expected in 2002, although the design and implementation phases will probably continue well into 2003. At this point it is not possible to estimate the cost of designing and implementing the final remedy. In 1999,the City began investigating the extent and impact of contamination of a certain area of the Penobscot River bottom. In addition,the City has been examining the potential sources of the contamination in order to identify potentially responsible parties that may be liable for contribution to the costs of remediation. One potentially responsible party has been put on notice of the City claim. The City is a party to various other lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City. E. Retirement The City of Bangor provides retirement pensions for its employees through a number of vehicles, including a defined contribution plan, defined benefit pension plan and social security. Effective April 1, 2001, all new eligible employees will be covered by the City's defined contribution plan. Prior to that date,the City's primary retirement vehicle was the Maine State Retirement System's defined benefit plan. Existing employees were given the choice of remaining in the defined benefit plan or entering the new defined contribution plan. Defined Contribution Plan Description of the Plan-The City provides pension benefits for certain employees through a 401(a) defined contribution plan administered by ICMA/RC. In addition certain full-time employees are covered through both a 401 (a)and 457 Deferred Compensation Plans(DCP)also administered by ICMA/RC. In a DCP,benefits depend solely on amounts contributed to the plan plus investment earnings. Covered employees are eligible to participate and are fully vested from the date of employment. Fundin Policy—Plan members not covered by employment contracts are required to contribute 6.5%of their annual covered salary and the City is required to contribute either 8% or 10%depending upon the employee's classification. For those plan members that have employment contracts,the City contributes at various rates from 10%- 15%of annual earnings. The covered payroll and City contributions in fiscal year 2001 approximated $1,221,331 and$118,092,respectively. CITY OF BANGOR,MAINE Notes to Financial Statements,Continued OTHER INFORMATION, CONTINUED Defined Benefit Pension Plan Description of the Plan—The City contributes to the Maine State Retirement System Consolidated Plan,a cost sharing multiple-employer retirement system established by the Maine State legislature. The Maine State Retirement System provides retirement and disability benefits, annual cost-of-living adjustments,and death benefits to plan members and beneficiaries. The authority to establish and amend benefit provisions � rests with the state legislature. The Maine State Retirement System issues a 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,46 State House Station,Augusta, Maine 04333-0046 or by calling 1-800-451-9800. Fundin P�—Plan members are required to contribute 6.5% of their annual covered salary and the City is required to contribute an actuarially determined rate. The current rate ranges from 2.80%to 6.50%of annual covered payroll. The contribution rates of plan members and the City 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 for the years ended June 30,2001,2000 and 1999 were $846,415, $981,064 and $1,580,742, respectively, equal to the required contributions for each year. Unfunded Actuarial Liabilitv—Upon joining the consolidated plan on July 1, 1997, the City's initial unfunded unpooled actuarial liability(IUUAL)was calculated. The IUUAL represents the remaining amount of the pension liability upon transitioning to the consolidated plan from a participating local district (PLD). The City's IUUAL at the date of transition is being amortized over a period of 28 years,with negative amortization occurring within the first years. At June 30,2001,the remaining balance was $31,782,408 and is being reported in the City's General Long-term Debt Account Group in accordance with Government Accounting Standards Board Statement No. 27,Accounting for Pensions by State and Local Government Employees. For the years ended June 30, 2001,2000 and 1999,the City made payments toward its IUUAL of$2,138,532, $2,076,252 and $1,995,036, respectively. Teachers Group Description of the Plan-All schoolteachers, 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 adjustments, and death benefits to plan members and beneficiaries. The authority to establish and amend benefit provisions rests with the state legislature. The Maine State Retirement System issues a publicly available financial report that includes 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. CITY OF BANGOR,MAINE Notes to Financial Statements,Continued OTHER 1NFORMATION, CONTINUED � Fundin�Policy—Plan members are required to contribute 7.65%of their compensation to the retirement system. The same statute requires the State of Maine Department of Education,to contribute the employer contribution, which amounts to $3,607,672 (19.18%)for the fiscal year 2001. This amount has been reported as an intergovernmental revenue and education expenditure in the GAAP basis financial statements(E�ibit 2). There is no contribution required by the school deparhnent except for federally funded teachers, for which they contributed 19.18%of their compensation. This cost is charged to the � applicable grant. Historical Trend Information—As June 30, 1995 was the first year on the Consolidated Plan and . Participating Local Districts did not enter the Plan until 1996,trend information is not relevant. If available,this information would be useful in assessing the pension plan's accumulation of sufficient assets to pay pension benefits as they become due. Deferred Compensation Plan The City offers its employees a deferred compensation plan created in accordance with Internal Revenue (IRC) Section 457. The plan permits participating employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination,retirement, death, or unforeseeable emergency. Social Security The City does not have a section 218 agreement to provide full social security coverage to its employees. The City does provide full social security coverage to part-time, seasonal and temporary employees under the Omnibus Budget Reconciliation Act of 1990, and Internal Revenue Service regulations,which became effective July 1, 1991. F. Landfill Closure and Postclosure Care Costs Closure of the City's Kittredge Road landfill was completed during the fiscal year ended June 30, 2000. Potential postclosure costs have been deemed immaterial,and therefore no liability for these amounts has been accrued. All necessary postclosure costs will be funded from the annual operating budget. � G. Subsequent Events In December 1996,the City authorized the issuance of up to$5,000,000 in general obligation bonds,the proceeds of which 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 the debt will be used to continue the City's compliance with an EPA consent decree governing the combined sewer overflow project. The City ' expects to issue the remaining authorized amount of$614,175 within the next fiscal year. In August 2001,the City authorized the issuance of up to$3,655,800 in general obligation bonds. Proceeds will be used to fund various projects such as; an emergency generator for the Wastewater Treatment Plant,waterfront infrastructure improvements,vehicle wash system, combined sewer overflow, and acquisition of motor pool vehicles as well as other building and infrastructure improvements. CITY OF BANGOR,MAINE Notes to Financial Statements,Continued OTHER 1NFORMATION, CONTINUED In December 2001,the City authorized the issuance of up to $3,852,400 in general obligation bonds. Proceeds will be used to fund various projects such as; renovation of the Police Department, expansions of Sawyer Arena and the recycling building as well as provide the local match for a number of State road projects. The City Charter requires maintaining the City's undesignated/unreserved fund balance at between 5%and 10%of the previous year's expenditures,net of debt service. As policy,the City has targeted 7.5%as a reasonable balance. At June 30, 2001,this balance exceeded the City policy of 7.5%by $3,111,928. Further City policy prescribes uses for these excess funds, and the Council has been presented with a series of options for the surplus funds. Thus far, Council has appropriated funds from the � undesignated/unreserved fund balance for the following purposes; $250,000 of additional funding to further the environmental assessment of the Penobscot river and adjacent area and to pursue legal remedies, $250,000 in support of the Challenger Learning Center of Maine,which will offer simulated space missions to fifth through eighth grade Maine students, $150,000 to fund annual contributions to the National Folk Festival,which will be held in Bangor for three succeeding years beginning in August of 2002, $150,000 to perform a structural analysis and undertake various environmental remediation steps to determine the feasibility of renovating the Waterworks complex and $152,635 to cover a number of other projects mostly related to infrastructure improvements. H. Bangor Nursing&Rehabilitation Center At the outset of fiscal year 2000,the City Council directed that the Bangor City Nursing Facility,be divested by the City and transferred to a private, not-for-profit corporation. This transaction was effective for January 1, 2001. Under the terms of this transfer,the City has agreed to several financial arrangements. These include the following: Assumption of$666,718 in general obligation debt,representing all the facility's long term bonded debt outstanding at the time of transfer; Assumption of$1,960,144 in initial unpooled unfunded actuarial liability under the Maine State Retirement System; Responsibility for providing$22 million for either physical plant remediation or replacement; Provision of a working capital line of credit up to$400,000 over the new corporation's first four ' years of operation. � . � . • General Fund The General Fund is used to account for resources traditionally associated with the government, which are not required legally or by sound financial management, to be accounted for in another fund. . -. r ' � Schedule A-1 CITY OF BANGOR,MAINE General Fund Comparative Balance Sheet June 30,2001 and 2000 2001 2000 ASSETS Cash $ 34,500 $ 610,224 Investments 15,093,748 11,242,859 Receivables: Taxes . 2,258,958 2,660,033 Accounts(net of allowance of$276,139 1,293,678 912,727 and $281,946,respectively) Interfund loans 1,954,995 2,685,560 Intergovernmental 1,143,129 1,759,818 Inventory, at cost 353,391 340,001 Prepaid items 63,837 126,885 Total assets $ 22,196,236 $ 20,338,107 LIABILITIES AND FUND EQUITY Liabilities Accounts payable $ 930,983 $ 869,887 Accrued wages and benefits payable 3,108,504 2,676,881 Workers' compensation 607,890 607,890 Deferred revenue 2,212,222 2,327,113 Taxes received in advance - 80,368 Totalliabilities 6,859,599 6,562,139 Fund equity Reserved for: Encumbrances 670,318 410,720 Prepaid items 63,837 126,885 Noncurrent interfund advance 1,580,369 2,370,000 Unreserved: Designated . 5,151,848 3,788,941 Undesignated 7,870,265 7,079,422 Total fund equity 15,336,637 13,775,968 ' Total liabilities and fund equity $ 22,196,236 $ 20,338,107 II - 33 Schedule A-2 CITY OF BANGOR,MAINE General Fund Schedule of Revenues,Expenditures and Changes in Undesignated Fund Balance--Budget and Actual--Budgetary Basis For the fiscal year ended June 30,2001 Balances Variance Carried 7/l/00 Budget Actual Surplus Carried Revenues Taxes Real and personal property $ - $ 34,837,320 $ 35,012,083 $ 174,763 $ - Change in deferred property tax - - ]32,461 132,46] - Tax increment financing district - (740,542) (742,224) (1,682) - Payment in lieu of taxes - ]09,700 109,700 - - Excise - 3,429,000 3,749,219 320,219 - Interest on delinquent taxes - 253,500 243,097 (10,403) - Total taxes - 37,888,978 38,504,336 615,358 - Intergovemmental State revenue sharing - 3,350,000 3,505,672 155,672 - School subsidy - 10,438,118 ]0,685,509 - 247,391 Other-municipal - ],941,656 1,911,134 (30,522) - Other-school - 2,227,473 2,592,792 - 365,319 Total intergovemmental - ]7,957,247 18,695,107 125,]50 612,710 Other revenue Licenses and permits - 380,785 392,778 11,993 - Charges for service-municipal - 5,220,104 5,436,179 216,075 - Chazges for service-school - 3,826,059 3,897,822 - 71,'763 Fines,forfeits and penalties - 27,950 15,106 (12,844) - Revenue from use of money and property-municip - 701,243 1,139,716 438,473 - Revenue from use of money and property-school - - 47,580 - 47,580 Total chazges for services - 10,156,14] ]0,929,]81 653,697 ll 9,343 Total revenues - 66,002,366 68,128,624 1,394,205 732,053 Continued on next page II-34 Schedule A-2(con't) CITY OF BANGOR,MAINE General Fund Schedule of Revenues,Expenditures and Changes in Undesignated Fund Balance--Budget and Actual--Budgetary Basis For the�scal year ended June 30,2001 Balances Variance Carried 7/1/00 Budget Actual Surplus Carried Expenditures General govemment Council - 38,421 39,078 (657) - Executive - 716,146 674,586 41,560 - Human resources - 111,214 109,324 1,890 - City Clerk - 333,203 323,716 9,487 - Assessing - 283,194 275,792 7,402 - Legal - 223,086 234,482 (11,396) - Finance - 1,231,887 1,229,127 2,760 - Insurance - 106,026 111,314 (5,288) - • Planning,econ dev,code enforcement - 866,177 739,707 126,470 - Total general government - 3,909,354 3,737,126 172;228 - Public safety Po(ice - 4,941,334 4,814,717 126,617 - Fire - 5,31],226 5,438,260 (127,034) - Total public safety - 10,252,560 ]0,252,977 (417) - Health,welfare and recreation Health and welfaze - 1,818,038 1,736,958 81,080 - Parks and recreation - 977,694 979,569 (],875) - Total health,welfare and recreation - 2,795,732 2,716,527 79,205 - Public buildings and services - 7,693,360 7,108,393 584,967 - Continued from previous page II-35 Schedule A-2(con't) CITY OF BANGOR,MAINE General Fund Schedule of Revenues,Expenditures and Changes in Undesignated Fund Balance--Budget and Actual--Budgetary Basis For the fiscal year ended June 30,2001 Balances Variance Carried 7/1/00 Budget Actual Surplus Carried Expenditures,continued Other agencies Counry tax - 1,333,109 1,333,109 - - Private school services - 147,315 146,261 1,054 - Downtown Development District - 43,226 43,226 - - Public library - 1,071,079 ],071,079 - - Other agencies 13,748 926,375 939,634 489 - Total other agencies 13,748 3,521,104 3,533,309 ],543 - Education Regular 570,186 29,722,]18 29,508,529 - 783,775 Adult education 36,610 542,651 506,578 - 72,683 Schoollunch 70,428 1,045,697 1,003,283 - 112,842 Reading assessment - 45,000 . 5,167 - 39,833 Special revenue 205,172 1,320,48] 1,656,062 - (130,409) Trust and agency 196,036 1,564,8]1 1,598,159 - 162,688 Total education 1,078,432 34,240,758 34,277,778 - 1,041,412 Other appropriations Pensions and other fringe benefits - 1,557,059 1,519,807 37,252 - Debtservice - 1,207,9]5 1,197,825 10,090 - Tax increment financing payments - 278,324 308,827 (30,503) - Contingency - 8,025 - 8,025 - Total other appropriations - 3,051,323 3,026,459 24,864 - Total expenditures 1,092,180 65,464,191 64,652,569 862,390 1,041,412 Excess(deficiency)of revenues over expenditures (1,092,180) 538,175 3,476,055 2,256,595 1,773,465 Continued from previous pages II-36 Schedule A-2(con't) CITY OF BANGOR,MAINE General Fund � Schedule of Revenues,Expenditures and Changes in Undesignated Fund Balance--Budget and Actual--Budgetary Basis For the fiscal year ended June 30,2001 Balances Variance Carried 7/1/00 Budget Actual Surplus Carried Other fmancing sources(uses) Appropriaton from designated fund balance - 379,155 29,047 - (350,108) Appropriaton to designated fund balance - (285,000) (285,000) - - Appropriation from undesignated fund balance - 1,335,039 - (1,335,039) - Other - 8,898 20,046 11,148 - Transfers to otherfunds - (1,005,000) (1,005,000) - - Transfers from other funds - 46,000 45,491 (509) - Operating subsidies - (],017,267) (1,017,267) - - Total other financing sources(uses) - (538,175) (2,212,683) (1,324,400) (350,108) Excess(deficiency)of revenues over expenditures and other financing sources and uses $(],092,180) $ - $ 1,263,372 932,195 $ 1,423,357 Undesignated fund balance,July 1 7,079,422 Appropriation to designated fund balance (141,352) Undesignated fund balance,June 30 $ 7,870,265 Continued from previous pages II-37 .., Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Community Development Block Grant- Accounts for federal grants obtained and expended under the Housing and Community Development Act of 1974, as amended, for the development of viable urban communities. � . ; Urban Development Action Grant—Accounts for federal grants obtained and expended under the Housing and Community Development Act of 1974, as amended,for the redevelopment of the downtown commercial core of the City. Economic Incentive Revolving Loan Fuad=Accounts for low interest loans to businesses within the City of Bangor for establishment,expansion or redevelopment purposes. Job creation or retainage,principally for low or moderate income persons, is a major factor in loan approval. Funding is provided from the U.S.Deparhnent of Housing and Urban Development Community Development Block Grant program. Grant Fund—Accounts for federal a�id state grants that are legally restricted to expenditures allowable by the grantor agency. • , • . � f � , Schedule B-1 CITY OF BANGOR,MAINE Special Revenue Funds Combining Balance Sheet June 30,2001 (with comparative totals for June 30,2000) ` Economic Community Urban Incentive Development Development Revolving Grant Totals Block Grant Action Grant Loan Fund Fund 2001 2000 ASSETS Cash $ ll $ 7,113 $ 183,088 $ - $ 190,212 $ 151,162 Receivables: Accounts - - - 1,199 1,199 2,325 Loans(net of allowance of$130,13]) 3,393,113 985,000 ]56,728 - 4,534,841 4,114,080 Intergovernmental - - - 111,461 111,461 228,911 Prepaid items 13,745 - - - 13,745 22,238 Totalassets $ 3,406,869 $ 992,113 $ 339,816 $ I]2,660 $ 4,851,458 $ 4,518,716 LIABILITIES AND FUND EQUITY Liabilities Accounts payable $ 24,154 $ - $ - $ 19,767 $ 43,921 $ 7],521 Deferred revenue 3,393,113 985,000 156,728 - 4,534,841 4,114,080 Due to rehabilitaiton recipients 64,688 - - - 64,688 34,674 Interfund loans payable 255,300 - - 1]7,352 372,652 520,348 Totalliabilities 3,737,255 985,000 156,728 137,119 5,016,102 4,740,623 Fund equity Reserved for: Encumbrances 168,151 - - 58 , 168,209 71,415 Prepaid items 13,745 - - - 13,745 22,238 Unreserved: Undesignated (S12,282) 7,113 183,088 (24,517) (346,598) (315,560) Total fund equity(deficit) (330,386) 7,113 183,088 (24,459) (164,644) (221,907) Total liabilities and fund equity $ 3,406,869 $ 992,113 $ 339,816 $ 112,660 $ 4,851,458 $ 4,518,716 II-38 Schedule B-2 CITY OF BANGOR,MAINE Special Revenue Funds Combining Statement of Revenues,Expenditures and Changes in Fund Equity For the fiscal year ended June 30,2001 Economic Community Urban Incentive Development Development Revolving Grant Block Grant Action Grant Loan Fund Fund Total Revenues Intergovernmental $ 1,271,825 $ - $ - $ 2,882,069 $ 4,153,894 Charges for services - 4,016 - 352,829 356,845 Program income 709,534 - 35,553 - 745,087 Other 4,608 - - - 4,608 Total revenues 1,985,967 4,016 35,553 3,234,898 5,260,434 Expenditures Acquisition of real property 276,815 - - - 276,815 Public works facilities site improvements 326,847 - - - 326,847 Business development assistance 38,43] - - - 38,431 Disposition of real property 39,193 - - - 39,193 Administration 251,345 - - - 251,345 Rehabilitation and preservation activities 708,811 - - - 708,811 Planning 38,090 - - - 38,090 Clearance activities 60,339 - - - 60,339 Relocation 152,037 - - - 152,037 Personnel - - - 416,189 416,189 Equipment - - - 5,211 5,211 Other 52,636 - - 1,911,272 1,963,908 Bus operations - - - 925,955 925,955 Total expenditures 1,944,544 - - 3,258,627 5,203,1'71 Excess(deficiency)of revenues over expenditures 41,423 4,016 35,553 (23,729) 57,263 Other financing sources(uses) Transfers to other funds - - - - - Transfers from other funds - - - - - Total other financing uses - - - - - Excess(deficiency)of revenues over expenditures and other financing sources and uses 41,423 4,016 35,553 (23,729) 57,263 Fund equity(deficit),July 1 (371,809) 3,097 147,535 (730) (221,907) Fund equity(deficit),June 30 $ (330,386) $ 7,113 $ L83,088 $ (24,459) $ (164,644) II-39 _ Capital Projects Fund ' ` The Capital Projects Fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary and similar trust funds. �• . • �. Schedule G1 CITY OF BANGOR,MAINE Capital Projects Fund Comparative Balance Sheet June 30,2001 and 2000 2001 2000 ASSETS Cash $ 413,685 $ 371,924 Receivables: Accounts 25,000 - Deferred special assessments 30,130 30,130 � Intergovernmental 891,922 42,303 Investment of bond proceeds 4,020,769 1,063,621 Total assets $ 5,381,506 $ 1,507,978 LIABILITIES AND FUND EQUITY Liabilities Accounts payable $ 558,140 $ 132,921 Bond anticipation note 4,000,000 - Total liabilities 4,558,140 132,921 Fund equity Reserved for encumbrances 284,508 201,362 Unreserved: Designated 288,381 931,208 � Undesignated: Deferred special assessments 30,130 30,130 Future construction - General Fund 96,367 91,889 Future construction - School department 123,980 120,468 Total fund equity 823,366 1,375,057 Total liabilities and fund equity $ 5,381,506 $ 1,507,978 II-40 Schedule G2 CITY OF BANGOR,MAINE Capital Projects Fund Statement of Revenues,Expenditures,and Changes in Fund Equity For the fiscal year ended June 30,2001 Revenues Intergovernmental $ 1,818,902 Revenue from use of money and property 133,070 Other 444,372 Total revenues 2,396,344 Expenditures Capital additions 7,976,058 Debt service 28,175 Total expenditures 8,004,233 Deficiency of revenues over expenditures (5,607,889) Other financing sources(uses) General obligation debt 2,334,600 Reallocation of general obligation debt 459,964 Transfers to other funds (27,666) Transfers from other funds 2,289,300 Total other financing sources 5,056,198 Excess of revenues over expenditures and other financing sources (551,691) Fund equity,July 1 1,375,057 Fund equity,June 30 $ 823,366 ' II -41 I 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. ' , Sewer Utility Fund—This fund accounts for the costs of construction and operation of the Sewage Treatment Plant,the City sewer_system, and sewer operation activities,and is self— supported through sewer user fees. � • 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 ren#al of 60 units of surplus hoasing received from the federal government pursuant to the McKinney Homeless Assistance Act. The principal source of revenue is rental income. City Nursing Facility—Until December 3 l,2000,when this function was spun off as an independent non-profit,this fund accounted for the operation of a City-owned nursing home. � This is a 61bed facility, and principal revenue sources are Medicaid and rental iricome from excess space. The current facility was the base hospital at the former pow 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]ease 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,Bangor 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 Fund—This fund accounts for the operation and development of _ � properties acquired by the City. Its purpose is to promote economic growth within the City. The principal source of revenue is rental income. I Schedule D-1 CITY OF BANGOR,MAINE Enterprise Funds Combining Balance Sheet ' June 30,2001 except for City Nursing Facility,which is as of December 31,2000 (with comparative totals for June 30,2000) � Sewer � City Bass Municipal Economic Utility Airport Park Nursing Parking Park Golf Development Total Fund Fund Woods Facility Fund Fund Course Fund 2001 2000 ' ASSF.TS Cuaent assets Cash S 75,052 S 79,999 S 4,624 $ - $ 164,245 % 23,487 S 275,565 S 112,816 $ 735,988 $ I,636,917 Invesunents 2,182,472 4,938,455 - - 109,594 - 264,666 800,000 8,295,127 9,141,946 . Acwunts Receivable 1,587,126 1,874,956 - - 6,508 135,602 12 - 3,604,204 3,703,559 Lessallowanceforuncollectibleaccounts (22,601) (107,706) - - (4,790) (27,110) - - Q62,207) (212,159) - � Netaccounts receivable 1,564,525 1,767,250 - - 1,718 108,492 12 - 3,441,997 3,491,400 Interfund loans receivable - - - - - - - - - 242,848 ' Due from other govemments 203,992 904,543 - - - - - - 1,108,535 284,856 Due from water distric� 93,495 - - - - - - - 93,495 137,564 �� Inventories,at cost - 87,526 - • - 8,232 - - 95,758 91,854 Prepaid items 24,751 17,433 - - 45,159 - 8,792 95,535 247,293 Total wrrent usets 4,144,227 7,795,206 4,824 - 275,557 185,370 540,243 921,008 13,866,435 15,268,678 , Property • Land 683,865 _ _ _ - 228,5"72 27,767 - 940,204 979,809 Buildings,plantand equipment 32,2G3,125 - 2,255,72q - - 6,146,189 1,925,425 2,366,886 44,957,349 47,011,878 � Pipelines and mains 39,548,G47 - - - - - - - 39,548,64� 35,607,955 Airorafl operational assets � - 192,068,635 - - - - - - 192,068,635 188,576,189 Parkingswctures - - - - 6,90I,7S2 - - - 6,901,752 6,889,442 Construction in process 4,323,366 1,963,787 - - 383,255 - 32B,462 6,998,870 6,458,837 i 76,819,003 194,032,422 2,255,724 - 7,285007 6,374,761 I,953,192 2,695,348 291,415,457 285,524,110 Less accumulated depreciation (20,866,071) (80,175,563) (566,602) - (3,830,993) (4,501,381) (661,616) (133,388) (110,735,616) (]05,393,899) Net property,plant and equipment 55,952,932 113,856,859 1,689,122 - 3,454,014 1,873,380 1,291,574 2,56I,960 180,679,841 180,130,211 I Other usets Investments - 11,784,810 - - - - - - � 11,784,810 10,613,810 � � Loans receivable 1,700,000 1,841,019 - - - - - 142,590 3,683,609 , 2,114,579 � Deferred special assessments 91,489 - - - - - - - 91,489 101,491 " Investment of bond proceeds 1 015,494 538,958 - - 2,898,838 198,690 - - 4,651,980 2,683,209 1 Deposits - - 15,000 - - - - - 15,000 15,000 Operating righ6(net of accumulated amortization of$1,182,177 in 2001 and r $1,I35,047 in 2000) - I 17,823 - � - - - - - 117,823 164,953 Bond issuance costs(net of accumulated � ' amortization of$207,530 in 2001 and $186,777 in 2000) 207,532 - - ' ' - - - 207,532 228,285 Property held for resale - - - - - - - 100,357 100,357 613,508 Totalassets $63,111,674 $135,934,675 $ 1,708,946 $ - $6,628,409 $2,257,440 $ 1,83I,817 $3,725,915 5215,198,876 $211,933,724 1 I ! Continued on facing page � 11-42 / Schedule D-1(con't) - CITY OF BANGOR,MAINE Enterprise Funds Combining Balance Sheet . � June 30,2001 except for City Nursing Facility,which is as of December 31,2000 (with comparative totals for June 30,2000) , Sewer City Bass Municipal Economic - Utility Airport Park Nnrsing Parking Park Golf Development Totnl � Fund Fund Woods Fncility Fund Fund Course Fund 2001 2000 � LIABILITIES AND FUND EQUITY - C�rrent liabilities Accounts payable $ 158,507 f 1,325,253 $ 27,182 $ - $ 249,896 $ 28,164 $ 24,252 $ 151,828 $ 1,965,082 $ ],326,652 � Accrued wages and benefits payable 50,345 204,533 3,347 - 7,746 28,221 23,339 - 317,531 304,976 � Accruedinterest 334,828 69,306 - - 84,436 22,371 - 14,609 525,550 523,746 Accrued compensated absences 35,641 172,317 7,641 - 728 19,790 3,658 - 239,775 281,814 Workers'compensation 14,808 57,256 - - 2,217 5,494 - - 79,775 227,541 , Deferred revenue - - - - 66,066 26,182 - - 92,248 355,806 � Intedund payables - - 26,988 - - ],555,355 - - 1,582,343 2,408,060 General obligation debt payable 2,661,337 - - - 424,351 119,720 - 65,447 3,270,855 2,838,293 ' Limited revenue obligation debt payable - 26Q000 - - - - - - 260,000 245,000 ,,, Other Iiabilities - 38,622 - - - - - - 38,622 45,071 ..` 'Iotalcurrentliabilities 3,255,466 2,127,287 65,158 - 835,440 1,805,297 51,249 231,884 8,371,78] 8,556,959 � Long-term liabilities � Workers'compcnsation 45,192 100,181 - - 7,783 4,506 - - 157,662 109,896 General obligation debt payable 27,121,389 - - - 5,"729,008 1,354,800 - 455,026 34,66Q223 35,179,909 '� Limited revenue obligation debt payable - 4,205,000 - - - - - - 4,205,000 4,465,000 i I I Dcferrcd arnounton refunding (221,725) - - - (197,669) - - - (419,394) (502,122) � ArbiVage payable 113,913 - - - 12,714 - - - 126,627 126,627 Other long-term liabilities 160,323 - 193,061 - - - - - 353,384 363,386 ' Total long-term liabilities 27,219,092 4,305,181 193,06] - 5,551,836 1,359,306 - 455,026 39,083,502 39,742,696 �, Total liabilities 3Q474,558 6,432,468 258,219 - 6,387,276 3,1G4,603 51,249 686,910 47,455,283 48,299,655 _ Fund cquity (deficit) Convibuted capital: ' City 3,873,534 - - - - 121,923 - - 3,995,457 4,106,557 Federal,state and other 8,594,507 94,937,005 I,S29,520 - 65,250 398,983 6,938 1,607,613 106,939,816 105,992,721 Customers 2,602,855 - - - - - - - 2,602,855 2,72Q673 I � Total contributed capital 15,07Q896 94,737,005 1,529,520 - 65,250 520,906 6,938 1,607,613 113,538,128 112,819,951 Retained eamings , -- Reserved for: � Capital expenditures 68,970 1,573,596 - - - - 1,739 - 1,644,305 ],299,909 � Debt service � - 539,308 - - - - - - 539,308 539,308 Unreserved 17,497,250 32,652,298 (78,793) - 175,883 (1,428,069) 1,771,891 1,431,392 52,021,852 48,974,901 I Totalretained earnings 17,566,220 34,765,202 (78,793) - 175,883 (1,428,069) 1,773,630 1,431,392 54,205,465 50,814,118 � 7'otalfundequity 32,637,116 129,502,207 1,450,727 - 241,133 (907,163) 1;78Q568 3,039,005 ]67,743,593 163,634,069 Total liabilities and fund equity S 63,11],674 $ 135,934,675 $ 1,708,946 $ - $ 6,628,409 $ 2,257,440 $ 1,831,817 $ 3,725,915 $215,198,876 $211,933,724 ' ' � ' Continued from previous page ❑-43 � . Schedule D-2 , CITY OF BANGOR,MAINE Enterprise Funds � Combining Statement of Revenues,Expenses and Changes in Retained Earnings For the fiscal year ended June 30,2001,except for the City Nursing Facility , which is for the six months ended December 31,2000 � Sewer City Bass Municipal Economic Ufility Airport Park Nursing Parking Park Golf Development � ! Fund Fund Woods Facility Fund Fund Course Fund Total ` Operating revenues Chazges for services $ 6,276,990 $ 9,891,930 $ 283,544 $ 1,497,852 $ 744,045 $ 1,294,895 $ 676,391 $ 268,314 $ 20,933,961 ` { Operating expenses Operating expenses other than i depreciationandamortization 2,508,195 8,634,188 331,66I 1,412,053 519,041 1,665,942 410,038 87,289 15,568,407 Depreciation and amortization on assets: Acquiredwithownfunds 1,245,366 1,891,529 7,751 52,954 3J0,305 139,398 95,137 I1,707 3,754,147 , Acqu'ved with grants and contributions 237,024 3,788,679 79,106 4,1G4 7,250 81,791 555 19,893 4,218,462 .✓ Total operating expenses 3,990,585 14,314,396 418,518 1,469,171 836,596 1,887,131 505,730 118,889 23,541,016 ��. Operatingincome(loss) 2,286,405 (4,422,466) (134,974) 28,681 (92,551) (592,236) 170,661 149,425 (2,607,055) ` �,,,` Nonoperating revenue(expenses) Interest income 225,4I7 1,068,199 - 15,220 46,725 15,501 15,915 ll,203 J,398,180 � i Unrealized gain on investmcnts - 925,066 - - - - - - 925,066 Interestexpense (1,301,565) (295,692) - (12,983) (218,103) (78,214) - (38,93G) (1,945,493) Miscellaneous income(expense) - 933 - (21,529) - - - 256,848 236,252 Totalnonoperating revenue(expenses) (1,076,148) 1,G98,506 - (19,292) (171,378) (62,7J3) 15,915 229,115 614,005 � Netincome(loss)before operating vansfers 1,210,257 (2,723,9G0) (134,974) 9,389 (263,929) (654,949) IS6,576 378,540 (1,993,050) + Transfers to other funds (247,430) (49,531) - - - - (93,566) (22,157) (412,684) � 1 Transfers from other funds - - - 561,351 - - - - 561,351 � Operatingsubsidy - - 36,203 93,672 316,039 571,353 - - ],017,267 Netincome(loss) 962,827 (2,773,491) (98,771) 6G4,412 52,110 (83,596) 93,010 356,383 (827,116) , Add depreciation and amorti7ation on fixed I assets acquired with grants and contributions 237,024 3,788,679 79,106 4,164 7,250 81,791 555 19,893 4,218,462 ( ' � Increase(decrease)inretainedeamings 1,199,851 1,015,188 (19,665) 668,576 59,360 (1,805) 93,565 376,276 3,391,346 - 1 Retainedeamings(deficit),Julyl 16,366,369 33,750,014 (59,128) (668,576) 116,523 (1,426,264) 1,680,065 1,055,116 50,814,119 Retained eamings(deficit),June 30 $ 17,5G6,220 $ 34,765,202 $ (78,793) $ - $ 175,883 $(1,428,069) $ 1,773,630 $ 1,431,392 $ 54,205,465 j 1 � ` II-44 � 1 ' Schedule D-3 CITY OF BANGOR,MAINE Enterprise Funds � Combining Statement of Cash Flows For the fscal year ended June 30,2001,except for the City Nursing Facility which is for the six months ended December 31,2000 - Sewer City Bass Municipal Economic - � Utility Airport Park Nursing Parking Park Golf Development � r Fund Fund Woods Facility Fund Fund Course Fund Total � Cazh(lows from operating activities Cuh received from customers $ 6,351,866 $ 9,401,906 $ 283,544 $ 1,418,096 $ 737,761 $ 1,276,160 $ 676,590 $ 268,314 $ 20,414,237 I � Cazh paid to suppliers for goods and services (1,592,�19) (4,084,392) (241,276) (344,333) (351,113) (971,660) (181,709) (74,072) (7,641,254) I Cazh paid to employees forservices (1,009,372) (4,298,858) (62,389) (1,254,104) (750,142) (685,040) (206,191) - (7,666,096) � Net cash provided by(used in)operating , . activities 3,749,775 1,018,676 (20,12t) (180,341) 236,506 (380,540) 288,690 194,242 4,906,887 , Cash Flows Gom nonwpital financing activities l � I Interfundloans(repayments) - - (13,500) 147,765 (2,448) (29,000) - - 102,817 Transfers out (247,430) (49,531) - - - - (93,566) (22,157) (412,684) Operatingsubsidyreceived - - 36,203 93,672 316,039 571,353 - - 1,017,267 Net wsh provided by(used in)noncapital '' financing activities (247,430) (49,531) 22,703 241,437 � 313,591 542,353 (93,566) (22,157) 707,400 , - Cazh flows from capital and related fnancing activities � Proceeds Bom general obligation bonds 2,100,000 - - - 3,000,000 - - - 5,100,000 I _ Acq�isition and construction ofcapital assets (2,943,369) (4,683,766) • (28,871) QGI,296) Q05,927) (164,879) (228,900) (8,317,008) Principal paid on general and limited revenue 1 obligation bonds (3,300,505) (245,000) - (47,298) (358,641) (103,160) - (426,202) (4,480,806) IInterest paid on general and limi�ed revenue obligation bonds (1,261,824) (299,007) - (17,228) (1G1,597) (79,355) - (39,508) (1,858,513) Proceeds from sale of equipment - 933 - - - - - 805,278 806,211 � � Grant monies received for capital assets 1,492,705 2,694,826 - - - - - - 4,187,531 Contributions received(made)for capital usets - - - - - - - - - Investment of bond proceeds 144,236 S28 - (21,244) (2,891,103) 119,653 - 37,357 (2,672,573) Net cash provided by(used in)capital and related � financing activities (3,'I68,957) (2,531,486) - (ll6,64]) (572,631) (168,989) (164,879) 148,025 (7,U5,158) - Cuh flows Gom investing activitiu , Net salu(purchases)of imestments 886,762 (544,971) - - 32,250 - 88,837 (80Q000) (337,122) � �� ]nrerudunrealized gain on investments 225,417 1,993,265 - 15,220 46,725 I5,501 15,975 - 2}]2,043 � - Loansissued (1,700,000) - - - - - _ - (1,700,000) . Loan repayments 242.848 127,396 ' - - - - 14,777 385,021 Net cazh provided by(used in)investing activities (344,973) 1,575,690 - 15,220 78,975 15,501 104,752 (785,223) 659,942 � I Net increase(decreue)in cash (611,385) 13,749 2,582 (40,325) 56,441 8,525 134,997 (465,ll3) (900,929) � i Cash,July 1 686,437 66,650 2,242 40,325 ]07,604 14,962 140,568 579,929 1,636,917 Cash,lune 30 S 75,052 5 79,999 S 4,824 S � - $ 164,245 $ 23,48"7 $ 275,565 $ 112,816 $ 735,988 �� Schedule of noncash invuting,capital and financing activities: During the year,the Airport Fund had an unrealized gain on investments in the amount of$925,066. - � � Continued on next page � � 1I-45 Schedule D-3(con't) CITY OF BANGOR,MAINE - Enterprise Funds , Combining Statement of Cash Flows For the fiscal year ended June 30,2001,except for the City Nursing Facility which is for the six months ended December 31,2000 i Sewer City Bass Municipal Economic Utility Airport Park Nursing Parking Park Golf Development Fund Fund Woods Fatility Fund Fnnd Course Fund Total � Reconciliation of operating income(loss)to net cash provided by(used in)operating activities , Operatingincome(loss) $ 2,286,405 S (4,422,466) $ (134,974) $ 28,68] $ (92,551) $ (592,236) $ ]7Q661 $ 149,425 $ (2,607,055) �+ ' Adjustrnents to reconcile operating income(loss) ( to net cash provided by(used in)operating � activilies Depreciation and amortization 1,482,390 5,630,208 86,857 57,118 317,555 221,189 95,692 31,600 7,972,609 �� Provision for uncollectible accounts - 24,031 - (219) - - - - 23,812 � Changes in asseis and liabilities: (Increase)decrease in accounts receivable 36,807 (236,861) - (71,350) (367) (27,266) 199 - (298,838) t (Increase)decrease in due from water district 38,069 - • - - - - - 38,069 _ (Increase)decreaseininventories - (15,409) - - - (I,858) - - (17,267) (Increase)decrease in prepaid items Q49) 141,961 - 700 - 8,826 420 - 151,758 �' Increase(decrease)inaccountspayable (112,905) 51,469 26,219 (76,431) 14,638 (2,660) 8,16] 13,217 (78,292) increase(decrease)in deferred revenue - (253,163) - - (5,917) 8,531 - - (250,549) Increase(decrease)in other current liabilities 19,158 48,906 1,777 (118,840) 3,148 4,934 13,557 - (27,360) Total adjustrnents 1,463,370 5,441,142 114,853 (209,022) 329,057 211,696 118,029 44,817 7,513,942 �� I Net cash provided by(used in)operating activities $ 3,749,775 $ 1,018,676 $ (20,121) $ (]80,34]) $ 236,506 $ (380,340) $ 288,690 $ ]94,242 $ 4,906,887 � � � � v � I ,�� . Continued from previous page ' . II-46 � Schedule D-4 , CITY OF BANGOR,MAINE ' � Enterprise Fund- Sewer Utility Fund Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis r��' For the fiscal year ended June 30,2001 �"` Budget Actual Variance Revenues , Charges for services $ 6,449,957 $ 6,308,451 $ (141,506) = Operating subsidy - - - Interest and other revenue 1,190,000 1,211,921 21,921 � Total revenues 7,639,957 7,520,372 (119,585) � ' Expenditures and encumbrances Salaries 816,512 790,066 26,446 .� Fringe benefits 249,031 238,464 10,567 , Supplies and materials 779,196 697,358 81,838 � � Contractual services 545,777 547,320 (1,543) ~� Interfund charges 525,521 414,518 111,003 �' Miscellaneous 18,150 14,380 3,770 Debt service 4,634,320 4,596,003 38,317 � �� Depreciation 1,161,279 ],245,366 (84,087) „ � Outlay 71,450 91,268 (19,818) , , Credits - - - Total expenditures and encumbrances 8,801,236 8,634,743 166,493 , , Excess(deficiency)of revenues over expenditures , � and encumbrances $ (1,161,279) $(1,114,371) $ 46,908 . , , � r� . + , � II-47 =; Schedule D-5 CITY OF BANGOR,MAINE Enterprise Fund -Airport Fund � Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis For the fiscal year ended June 30,2001 " Budget Actual Variance `�j � Revenues Charges for services $ 8,943,011 $ 9,032,093 $ 89,082 � Operating subsidy - - - f� Interest and other revenue 1,127,396 1,195,594 68,198 � Total revenues 10,070,407 10,227,687 157,280 � Expenditures and encumbrances a � Salaries 3,719,858 3,551,233 168,625 _ Fringe benefits 882,394 817,117 65,277 � Supplies and materials 1,360,000 1,496,886 (136,886) � Contractual services 1,493,250 1,409,015 84,235 ' Interfund charges 625,562 446,229 179,333 �" Miscellaneous 178,237 160,005 18,232 �` Debt service 538,643 556,487 (17,844) Depreciation 2,023,565 1,891,529 132,036 �h ` Outlay 967,900 1,153,846 (185,946) �, Credits - (8,579) 8,579 . , Total expenditures and encumbrances 11,789,409 11,473,768 315,641 Excess(deficiency)of revenues over expenditures and encumbrances $ (1,719,002) $(1,246,081) $ 472,921 � � �� ,� , r�i � ,1 r� i II -48 � � � Schedule D-6 � CITY OF BANGOR,MAINE ' Enterprise Fund-Park Woods , Schedule of Revenues,Expenditures and Encumbrances � Budget and Actual-Budgetary Basis -�' For the fiscal year ended June 30,2001 �'` Budget Actual Variance , ' Revenues , Charges for services $ 263,729 $ 283,544 $ 19,815 � Operating subsidy 36,203 36,203 - Interest and other revenue - - - ; , Total revenues 299,932 319,747 19,815 ` � Expenditures and encumbrances i Salaries 51,872 53,068 (1,196) � Fringe benefits 8,016 11,098 (3,082) Supplies and materials 1]3,751 134,622 (20,871) � Contractual services 123,043 129,664 (6,621) • Interfund charges 3,250 3,209 41 ' Miscellaneous - - - Debt service - - - Depreciation 8,500 7,751 749 Outlay - - - Credits - - - � Total expenditures and encumbrances 308,432 339,412 (30,980) , � Excess(deficiency)of revenues over expenditures , and encumbrances $ (8,500) $ (19,665) $ (11,165) —. r � � � r 1 " II-49 Schedule D-7 , CITY OF BANGOR,MAINE � Enterprise Fund - City Nursing Facility - Schedule of Revenues,Expenditures and Encumbrances , Budget and Actual-Budgetary Basis For the six months ended December 31,2000 '�� Budget Actual Variance �� 1 Revenues Charges for services $ 2,749,450 $ 1,497,852 $ (1,251,598) � Operating subsidy 187,362 93,672 (93,690) ' Interest and other revenue - - - Total revenues 2,936,812 1,591,524 (1,345,288) , ; Expenditures and encumbrances ` Salaries 1,745,949 909,465 836,484 Fringe benefits 494,370 233,985 260,385 r., Supplies and materials 330,239 155,674 174,565 � Contractual services 159,612 99,925 59,687 ` Interfund charges 8,709 2,912 5,797 ' Miscellaneous 12,300 925 11,375 � Debt service 78,933 60,281 18,652 Depreciation 89,558 52,954 36,604 � �; Outlay 106,700 16,110 90,590 � Credits - - - � Total expenditures and encumbrances 3,026,370 1,532,231 1,494,139 Excess(deficiency) of revenues over expenditures ' and encumbrances $ (89,558) $ 59,293 $ 148,851 � ,- � � , � � . F" II- 50 ' Schedule D-8 , CITY OF BANGOR,MAINE , ' Enterprise Fund -Parking Fund � Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis � -- For the fiscal year ended June 30,2001 r-� Budget Actual Variance � � Revenues a Charges for services $ 708,764 $ 738,128 $ 29,364 Operating subsidy 316,039 316,039 - Interest and other revenue - 6,079 6,079 � � Total revenues 1,024,803 1,060,246 35,443 Expenditures and encumbrances � Salaries 126,686 124,260 2,426 Fringe benefits 30,853 29,031 1,822 Supplies and materials 8,700 7,253 1,447 � � Contractual services 214,713 231,074 (16,361) Interfund charges 77,370 94,418 (17,048) ? Miscellaneous - 35 (35) Debt service 525,431 522,680 2,751 3 Depreciation 288,847 310,305 (21,458) � Outlay 41,051 37,545 3,506 � Credits - (459) 459 r Total expenditures and encumbrances 1,313,651 1,356,142 (42,491) -- Excess(deficiency)of revenues over expenditures a and encumbrances $ (288,848) $ (295,896) $ (7,048) ' . , �'1 II- 51 Schedule D-9 CITY OF BANGOR,MAINE Enterprise Fund -Bass Park Fund ` J Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis � For the fiscal year ended June 30,2001 ',,. Budget Actual Variance f-. Revenues 1 Charges for services $ 1,254,050 $ 1,294,895 $ 40,845 Operating subsidy 571,353 571,353 - Interest and other revenue - - - � Total revenues 1,825,403 1,866,248 40,845 , � Expenditures and encumbrances ` Salaries 624,086 565,508 58,578 r� Fringe benefits 131,260 126,938 4,322 Supplies and materials 207,250 239,989 (32,739) Contractual services 513,250 542,508 (29,258) � Interfund charges 100,000 118,148 (18,148) ' ,. Miscellaneous 68,500 64,063 4,437 Debt service 182,807 181,374 1,433 � Depreciation 140,137 139,398 739 Outlay 9,250 3,789 5,461 _ Credits (11,000) (11,000) - � Total expenditures and encumbrances 1,965,540 1,970,715 (5,175) u ,�� Excess(deficiency)of revenues over expenditures 1 and encumbrances $ (140,137) $ (104,467) $ 35,670 � � � ,- . r` II - 52 � r ' Schedule D-10 CITY OF BANGOR,MAINE � Enterprise Fund -Municipal Golf Course � Schedule of Revenues,Expenditures and Encumbrances ' Budget and Actual-Budgetary Basis - � For the liscal year ended June 30,2001 Budget Actual Variance � Revenues Charges for services $ 688,105 $ 676,391 $ (11,714) � Operating subsidy - - - � Interest and other revenue 14,000 15,915 1,915 �_ Total revenues 702,105 692,306 (9,799) - Expenditures and encumbrances - Salaries 168,911 194,589 (25,678) � Fringe benefits 26,492 25,159 1,333 �� Supplies and materials 44,325 63,116 (18,791) Contractual services 70,275 84,098 (13,823) Interfund charges 327,102 127,076 200,026 ' Miscellaneous - - - Debt service - - - , � Depreciation 75,186 95,137 (19,951) Outlay 65,000 50,207 14,793 � � Credits - - - Total expenditures and encumbrances 777,291 639,382 137,909 � Excess(deficiency)of revenues over expenditures and encumbrances $ (75,186) $ 52,924 $ 128,110 � � - i � ' � � II- 53 Schedule D-11 CITY OF BANGOR,MAINE Enterprise Fund -Economic Development Fund � Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis For the fiscal year ended June 30,2001 � Budget Actual Variance �' Revenues ' Charges for services $ 244,084 $ 268,314 $ 24,230 Operating subsidy - - - � Interest and other revenue 11,200 11,203 3 � Total revenues 255,284 279,517 24,233 � , Expenditures and encumbrances ` Salaries - - - N ( Fringe benefits - - - , :� Supplies and materials 12,560 14,783 (2,223) Contractual services 47,1]2 64,943 (17,831) ` Interfund charges - - - � Miscellaneous 2,400 5,523 (3,123) � Debt service 96,512 102,824 (6,312) � Depreciation 11,706 11,707 (1) � Outlay 96,700 2,041 94,659 Credits - - - ' � � Total expenditures and encumbrances 266,990 201,821 65,169 v Excess(deficiency)of revenues over expenditures and encumbrances $ (11,706) $ 77,696 $ 89,402 � ,y. ` � 1 II- 54 , i � �` . � . • . . � �. d � . � ' � ;�, . . �� I � ``:. ,-'='-^,.- �-: �� ti. '' ' '��r�" r t� j�,�iA ` r I fl/, {,,� 1` �'`.�-'� �-�`-� I . •, /;�`�- `` r� �:- _�_ � 1,� J, J � � ti - �� I , � _'_ . �'�',��-� �r.....- �„�. ~�` � /. l- � � ��•�"�� rr{�+Trust and Agency Funds�r`�, � �- , ,i �,.� �, t� =��_� ,;,� /,�'��.,,�.� ...� j �r r� �� 1��`ti��r�/� u�14'i ,�l`.''�_"� . . 4 �. � t � �r ✓ `(��/,/� f � .�: `�,�,,1 S`� S'7 J j ;� , , The following.are:the C�ty3s Tr,�ust and Ajgenc//y�'unds: `��-`�',.�� _ { ` ` � . /J • � f /f 1 J (( / j � j l ' ' F - � � " A �'f F �� f�l :3 �,� \l�/ a i,�` /�r•,�rY �'�� . . - . Expendable T�rust Funds!r;,�Accounts�for amounts raised or donated to benefit the,Dental Clinic, - `local parks, C�ty forest�and emergency equipment.t-� ; ��'1 �',` -� (!' � -� • - i` 1' ;�.f"��t t; ��'� i�a�• - r.� ti+c.; .. . .�� }�7�L�{ �j(ri Other Funds-Accounts for�am'ounts received from var�ous parties-to fund�'ithe perpetual care of ,- , - � F r x x * r.�`r - � ,•' •.� `� _ � specific cemetery plots`and to�enefit_.parks, educat�o�ial and_other.;benevolerit causes. ' . , , , 1 �.'� � y��'��T�r �``- `l'�r�7� ��' : � , Revolving Loan Funds-Accounts forathe Soph�a Kirste�n2Stude`�t Loan Fund'.�The fund,was `� established to provide educat�onal'loans�to tesidents of the City�of Bangor:f, � i �-:--� � � � F1��''.�f^ �f _, �--•.,..-�.�..�� ,,, / �-�� " � - t; "�l \ �'" �� `�' r--. y i\� {��,.Tl,,,:.'�/..�,� J/ �;i fl�� \-1��;'! . Agency Funds ,Accounts;for assets heldy by the,government.m`a purely custodial`capacity. i • � `, �'-'41'i � i` `JC-��}��r� ��'w `� � � � °�� j� .''`��. ,' r � ' �� /�� 1```..:",.'1{t!p'?rr��i �'�y �� %�., � �' � �' \ti . f ,' -.._ -�...�,.- ,,.� t��/�/ r 'j.! \� V�I �'`t j� �` _ �.--��'f '-j,.��,�.►-*.��' ~ � , �. �'';�, �.1)`'�~ �V� {{{ I''a �i� �, e� �,�.•1"�`..r"_�,.``^:�. /� % I �.�. .i �',` .-�;�.^� j�� j�J (' �+ .^'�� . _ . ��..y"�.�"��J � �+.,`„� Y_ � ""�� ,.1 ��j __ �,,/�� ..^- � ��`,� �� r J��,�,,r,.�'_ _ :=�:.,.�_� ��_ � � �� ,. � , ,: .� V� � � � 1 �' � t� � ��_ _ Schedule F-1 CITY OF BANGOR,1VIAiNE _ � Schedule of General Fixed Assets By Source " ' � June 30,2001. - • ' ,. . . . . .. .. � , . , ,i -a . . �` � �GENERA.L FIXED ASSETS - .- _ _ _ , - , . . _ . f Land " . $, 5,198,491 .School�Land . � . _ .::_ 1;350;988 � _ Buildings 6,271,118 '—` School buildings . 34,151,326 Vehicles ' � , ' 8;999,473 , � � Machinery and equipment ' _ _ � 5,931,52Z School other 5,594,112 , Construction in progress ` ` ' . _ 2;877,632 \ � Total general fixed assets � $ 70,374,667 , = �� . � � i INVESTMENT IN GENERAL FIXED ASSETS ' , ' , � I Total general;fund; --� ,j.:�'�' '� � - �-<', r y � '$ 70,374,667 � _ ,-_ _ - _ F . _- , � . . . '1 .t J:Fi, ., ,. , �/ . �4 .,�.� ��..— .. `.. �: �_ . 1�',-� � ..`�- • '_.. ° i-- iF f - .t� 1.J I ,� • � � C 'r a .. fi '�.; uL � . � . ., � /� T�� .. 4+ ,_ . 3�_ � V" �..� — ! ,'. `" ' . . ... � + . r��•,u.. _ � � . _ , - .. { .�.�i' .1' -;1:�¢.� .._. • . � i I I c__-. I � i �`�i 1 � '�� ! .� i I � I� I ._ ; � �� j ` 1 I�I i . . � , Ci � , II= 60 �, ' � r-�— .� , —, � , �. _— Schedule F-2 CITY OF BANGOR,MAINE Schedule of General Fixed Assets By Function June 30,2001 Function Land Buildings Vehicles Equipment Total General Government $ 3,682,151 $ 346,752 $ 508,100 $ 1,902,534 $ 6,439,537 Public Safety 131,355 2,411,343 1,858,029 930,828 5,331,555 Health,welfare and recreation 1,037,595 2,032,944 - 974,926 4,045,465 � Public building and services 347,390 1,480,079 6,633,344 2,123,239 10,584,052 Education 1,350,988 34,151,326 - 5,594,112 41,096,426 6,549,479 40,422,444 8,999,473 11,525,639 67,497,035 � Construction in process - 2,142,445 - 735,187 2,877,632 Total $ 6,549,479 $ 42,564,889 $ 8,999,473 $ 12,260,826 $ 70,374,667 . � � II-61 Schedule F-3 CITY OF BANGOR,MAINE Schedule of Changes in General Fixed Assets By Function For the fiscal year ended June 30,2001 General General Fixed Assets Fixed Assets Function June 30,2000 Additions Deletions June 30,2001 General Government $ 5,479,226 $ 960,311 $ - $ 6,439,537 Public Safety 4,990,960 340,595 - 5,331,555 Health,welfare and recreation 4,005,837 39,628 - 4,045,465 , � Public building and services 9,905,105 678,947 - 10,584,052 Education 39,492,212 1,604,214 - 41,096,426 63,873,340 3,623,695 - 67,497,035 � Construction in process 2,138,434 4,070,064 3,330,866 2,877,632 Total general fixed assets $ 66,011,774 $ 7,693,759 $ 3,330,866 $ 70,374,667 , I II - 62 � . . r. , - ' : � �`', � , •� . . ..-�• �� - . - . ., • . . . . `. • , � • � . � , . , , ' Otner Information °;� . � � ;, , , �; , � � , , � L r i � i � ! ' l r � - - n ' _ . i . ` Schedule G-1 CITY OF BANGOR,MAINE Assessed Valuation,Commitment and Collections For the fiscal year ended June 30,2001 VALUATION Land and buildings $ 1,276,263,500 Land and buildings-Homestead exemption 38,700,900 Personal property 222,823,400 Total valuation $ 1,537,787,800 COMMITMENT � Real estate and personal property(excludes Homestead exemption) $ 1,499,086,900 Tax rate 0.02345 Total commitment 35,153,588 � ADD Supplemental taxes committed 130,145 35,283,733 LESS Collections 2001 33,930,930 Abatements 258,412 2001 taxes receivable at June 30,2001 $ 1,094,391 II- 63 Schedule G-2 CITY OF BANGOR,MAINE Undesignated Fund Balance Sufficiency Calculation For the fiscal year ended June 30,2001 , It is the policy of the City to maintain an undesignated fund balance approximately 7.5% of operating expenditures. The following table sets forth the calculation as to the sufficiency of the June 30, 2001 undesignated fund balance. General Fund expenditures/uses ( Schedule A-2) � General government $ 3,737,126 Public safety 10,252,977 Health,welfare and recreation 2,716,527 Public buildings and services 7,108,393 Other agencies 3,533,309 Education 34,277,778 Other appropriations 3,026,459 Other uses, gross 2,307,267 F� . Gross expenditures and uses 66,959,836 General Fund debt service 3,515,339 Net expenditures and uses $63,444,497 Indicated undesignated fund balance @ 7.5% $ 4,758,337 i Actual undesignated fund balance (Schedule A-2) $ 7,870,265 � Actual undesignated fund balance as a percentage of net expenditures and uses 12.40% Over(under)funded status $ 3,111,928 II- 64 This page left intentionally blank ' i Statistical Section Table 1 CITY OF BANGOR,MAINE General Fund Revenues--Budgetary Basis* Last Ten Fiscal Years � Inter- Licenses Charges Fines Use of Re- Fiscal Real Personal Total Tax govern- & for &For- Money& imburse- Year Property Property Excise Revenues mental Permits Services feitures Property ments** Total - 1992 $24,254,687 $2,t66,822 $2,307,113 $28,728,622 $11,366,929 $232,584 $5,937,666 $12,486 $ 505,967 $2,804,902 $49,589,156 1993 25,141,883 2,327,456 2,548,060 30,017,399 14,094,486 270,248 6,586,779 11,788 381,952 - 51,362,652 a 1994 26,392,128 2,483,933 2,922,952 31,799,013 17,291,808 276,167 5,203,023 11,699 530,633 - 55,112,343 1995 27,O11,014 3,138,803 2,763,619 32,913,436 14,513,524 268,352 6,936,668 54,132 911,491 - 55,597,603 1996 27,34Q204 3,545,267 2,754,819 33,64Q290 ]3,803,107 324,639 6,940,083 26,569 1,066,083 - 55,800,771 - 1997 27,036;650 3,748,446 2,926,858 33,711,954 14,322,698 372,003 7,138,210 42,350 924,742 - 56,511,957 ]998 27,750,306 4,224,568 3,095,072 35,069,946 16,233,583 433,449 7,529,144 28,193 546,229 - 59,840,544 1999 27,484,400 4,487,845 3,266,421 35,238,776 1�,733,946 499,483 7,879,418 24,813 600,085 - 61,976,461 2000 28,498,443 4,945,754 3,592,979 37,037,176 18,936,166 393,354 8,147,18] 19,178 933,427 - 65,466,482 � 2001 29,474,793 5,280,324 3,749,219 38,504,336 19,114,860 392,778 8,914,248 15,106 1,187,296 - 68,128,624 * Amounts appear in Schedule A-2. ** "Reimbursements"were primarily grants for human services,which were reclassified as intergovernmental revenue beginning in fiscal 1993: III-1 Table 2 CITY OF BANGOR,MAINE General Fund Expenditures by Function--Budgetary Basis* Last Ten Fiscal Years Fiscal General Public Health& Parks& Public Debt Other Year Government Safety Welfare Recreation Services Education Service Other** Agencies*** Total 1992 $ 3,184,909 $8,054,011 $3,857,657 $ 670,214 $4,049,770 $25,486,072 $1,210,420 $ 198,564 $ 1,796,519 $48,508,136 1993 3,188,999 8,678,863 3,434,463 721,216 4,302,728 25,854,492 1,160,983 213,491 1,671,710 49,226,945 1994 3,275,299 9,126,524 4,016,937 894,339 5,659,277 26,871,968 1,454,132 200,436 1,715,417 53,214,329 ]995 3,243,405 9,233,995 2,455,303 970,084 6,720,880 27,999,220 1,641,046 150,474 1,999,580 54,413,987 1996 3,340,732 8,990,888 1,683,177 888,139 7,049,049 28,258,718 1,403,761 45,595 2,046,064 53,706,123 1997 3,378,392 9,723,034 1,805,734 887,122 6,842,469 28,934,989 1,364,213 75,238 2,196,959 55,208,150 - 1998 3,454,345 10,362,360 1,757,148 923,430 '7,648,048 30,190,919 1,335,405 389,805 2,231,591 58,293,051 1999 3,371,246 10,326,120 1,705,099 945,953 7,321,657 31,926,707 1,340,136 131,815 2,391,962 59,460,695 2000 3,481,542 9,527,935 1,652,971 971,887 7,073,693 33,181,363 1,214,661 1,545,415 2,500,460 61,149,927 2001 3,737,126 10,252,977 1,736,958 979,569 7,108,393 34,277,778 1,197,825 1,828,634 3,533,309 64,652,569 * 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,among other the Bangor Public Library, local private schools and the Bangor Conventions and Visitors Bureau. III-2 Table 3 CITY OF BANGOR,MAINE General Fund Expenditures/Other Uses and Revenues/Other Sources--Budgetary Basis* Last Ten Fiscal Years Other Uses Other Sources Excess(DeTiciency) Appropr- Total Appropr- Operating Total of Revenues/Other iations to Operating General Fund iations from Transfers Total General Fund Sources Over Fiscal Fund Transfers Total Expenditures Fund In&Other Other Revenues Expenditures/ Year Balaoce Out&Ot6er Other Uses &Other Uses Balance Sources Sources &Other Sources Other Uses _ 1992 $ - $ 415,232 $ 415,232 $ 48,923;368 $ 818,520 $ 9,300 $ 827,820 $ 40,416,976 $ (8,506,392) 1993 433,ll2 692,527 1,125,639 SQ352,584 - - - 51,362,652 1,O1Q068 _ 1994 - 787,897 787,897 54,002,226 26,328 108,179 ]34,507 55,246,850 ],244,624 1995 - 865,462 865,462 55,279;449 26Q000 28,770 288,770 55,886,373 606,924 1996 - ],871,914 ],871,914 55,578,037 689,909 76,249 766,158 56,566,929 988,892 1997 - 2,36Q375 2,36Q375 57,568;525 1,249,123 377,448 1,626,5�1 58,138,528 570,003 ]998 - ],528,803 ],528,803 59,821;854 333,731 357,459 691,190 60,531,734 709,880 1999 - ],640,914 1,640,914 61,101,609 362,286 77,903 440,189 62,416,650 1,315,04] 2000 24Q000 ],803,724 2,043,724 63,193,651 21,550 71,682 93,232 65,559,714 2,366,063 2001 285,000 2,022,267 2,307,267 G6,959,836 29,047 65,537 94,584 68,223,208 ],263,372 * Amounts appear in Schedule A-2. III-3 Table 4 CITY OF BANGOR,MAINE Assessed and Estimated Market Value* Last Ten Fiscal Years Fiscal Real Personal year Property Property Total % Change 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 ],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 1,3 87,170,700 1.74% 1999 1,219,950,500 188,488,200 1,408,438,700 1.53% 2000 1,267,153,100 208,423,500 1,475,576,600 4.77% 2001 1,314,964,400 222,823,400 1,537,787,800 4.22% * It is City policy to assess at]00%of estimated mazket value. III-4 Table 5 CITY OF BANGOR,MAINE ' Property Tax Levies,Collections and Delinquencies* Last Ten Fiscal Years %of Outstanding Ratio of %of Delinquent Total Total Tax Current Year Current Year Fiscal Gross Tax Abatc- Net Tax Current Net Levy Tax Tax Collection Delinquent Delinquencies year Levy ments Levy Coilections Collected Coilections Collec�ions to Net Levy Taxes to Net Levy _ 1992 $26,447,878 $180,157 $26,26�,721 $ 24,316,637 92.57% $ 1,402,235 $25,718,872 97.91% $ 1,951,084 7.43% 1993 27,118,624 ]05,234 27,013,390 25,020,672 92.62% 1,994,355 27,015,027 ]00.01% ],992,718 738% 1994 28,549,008 380,322 28,168,686 26,499,976 94.08% 2,024,862 28,524,838 10126% 1,668,710 5.92% 1995 30,305,921 323,102 29,982,819 28,250,549 94.22% 1,680,210 29,930,759 99.83% 1,732,270 5.78% 1996 31,084,237 341,860 30,742,377 29,297,048 9530% 1,469,986 30,767;034 ]00.08% 1,445,329 4.70% 1997 31,437,259 395,775 31,041,484 29,481;717 94.98% 1,570,081 31,051,798 100.03% 1,560,037 5.03% 1998 32,600,063 364,524 32,235,539 30,805,625 95.56% 1,543,�79 32,349,404 ]0035% 1,429,914 4.44% "- 1999 32,611,689 145,123 32,466,566 31,084,751 95.74% ],503,187 32,587,938 ]0037% 1,381,815 4.26% 2000 34,069,975 246,152 33,823,823 32,809,377 97.00% 719,683 33,529,060 99.13% 1,014,446 3.00% 2001 35,283,733 258,412 35,025,321 . 33,930,930 96.88% 1,565,244 35,496,174 ]0134% 1,094,39] 3.12% * Amounts can be found on Schedule G-1. � III-5 Table 6 CITY OF BANGOR,MAINE Property Tax Rate Components (000's) Last Ten Fiscal Years General General Fiscat City Fund Debt Penobscot Total Tax/ Year Government Service Education County (Mill)Rate 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 ]0.41 0.86 22.00 1995 9.72 ].26 11.21 0.86 23.05 1996 9.72 ].06 1].51 0.86 23.15 1997 9.61 1.08 11.33 0.88 22.90 1998 9.64 ].28 11.57 0.86 2335 1999 9.67 1.10 12.11 0.92 23.80 2000 9.73 0.97 12.09 0.91 23.70 2001 9.64 1.01 11.89 0.91 23.45 � ' III-6 Table 7 CITY OF BANGOR,MAINE Principal Taxpayers June 30,2001 Assessed % of Total Cumulative Taxpayer Business Value Tax Base % BANMAK Associates Shopping mall $ 58,259,900 3.95% 3.95% General Electric* Steam turbine manufacturer 32,364,450 2.19% 6.14% Bangor Hydro-Electric Utility 26,765,600 1.81% 7.96% Bangor Savings Bank Financial institution 23,793,300 1.61% 9.57% Webber Oil Company Fuel distributor 10,461,600 0.71% 10.28% QV Realty Trust Real estate interests 10,222,700 0.69% 10.97% Airport Mall Associates Shopping mall 10,120,900 0.69% 11.66% Cabrel Company Real estate interests 9,697,300 0.66% 1231% - Wal Mart Stores,Inc Retailer 9,451,200 0.64% 12.95% Sams Real Estate Trust Retailer 8,636,400 0.59% 13.54% Totals $199,773,350 * Net of$31,263,050 of tax increment financing assets. III-7 Table 8 CITY OF BANGOR,MAINE Computation of Legal Debt Margin June 30,2001 Total State Valuation $ 1,504,200,000 Debt Limitation: 15%of State Valuation $ 225,630,000 Debt Applicable to Debt Limitation: Bonded General Obligation Debt Legal Maximum As a Percent of Dollar State Purpose Percentage Amount Amount Maximum Valuation Municipal 7.50% $ 112,815,000 $ 20,088,840 17.81% 134% School 10.00% 150,420,000 14,865,862 9.88% 0.99% Sewer 7.50% 112,815,000 29,782,726 26.40% 1.98% Total Bonded Debt Applicable to Debt Limit: $ 64,737,428 28.69% 430% Margin for Additional Borrowing: $ 160,892,572 III-8 Table 9 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 Fiscal Assessed Net Bonded To Assessed Per Year Population* Value GO Debt** Value Capita 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 32,570 1,305,791,000 24,198,270 1.85% 742.96 1996 31,849 1,340,976,800 24,937,760 1.86% 783.00 1997 31,479 1,363,463,500 25,763,268 1.89% 818.43 1998 31,134 1,387,170,700 28,261,855 2.04°/a 907.75 1999 30,783 1,408,438,700 27,205,258 1.93% 883.78 2000 31,311 1,475,576,600 27,713,328 1.88% 885.10 2001 31,473 1,537,787,800 30,434,229 1.98% 966.99 * Source:Maine Department of Human Services(1991 through 1994),Maine Department of Human Services,Maine State Planning Office and City of Bangor(1995 through 2000),U.S.Census 2000(2001). ** Net Bonded General Obligation Debt Consists of all non-self supporting general obligation debt,and excludes all Sewer Utility debt of$29,782,726 and Economic Development debt of$520,473,at year end FY01. III-9 Table 10 CITY OF BANGOR,MAINE Ratio of Annual Debt Service Expenditures for General Fund, General Obligation Debt to Total General Fund Expenditures Last Ten Fiscal Years Ratio of Debt Debt Service Expenditures Total Service To Fiscal General Fund General Fund Year Principal Interest Total Expenditures* Expenditures 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 54,413,987 633% 1996 2,180,072 948,868 3,l 28,940 53,706,]23 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% 1999 2,012,109 973,276 2,985,385 59,460,695 5.02% 2000 2,038,664 1,059,773 3,098,437 61,149,927 5.07°/a 2001 2,389,399 1,097,765 3,487,164 64,652,569 5.39% * Budget basis,Schedule A-2 III-10 Table 11 CITY OF BANGOR,MAINE Computation of Direct and Overlapping Debt June 30,2001 Percentage Amount Total Debt Applicable Applicable Outstanding to Bangor to Bangor Direct Debt City of Bangor General Obligation Bonds $60,737,428 100.00% $60,737,428 Limited Obligation Bonds 4,465,000 100.00% 4,465,000 Bond Anticipation Note 4,000,000 100.00% 4,000,000 Overlapping Debt Penobscot County 1,530,000 23.59% 360,927 Total Debt $70,732,428 $69,563,355 III-11 Table 12 CITY OF BANGOR,MAINE Direct and Overlapping Debt Last Ten Fiscal Years Overlapping Debt Direct and Overlapping Debt Direct Debt Bangor Maine As % of Fiscal City of Penobscot Recreation Vocational Assessed Per Year Bangor County District Region Total Value Capita 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 S17,286 66,302,857 5.24% 2,070.22 1994 67,959,000 760,46] 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% 1,971.48 1996 64,319,213 1,007,864 - 295,592 65,622,669 4.89% 2,060.43 , 1997 64,396,280 811,530 - 221,693 65,429,503 4.80% 2,078.51 1998 66,555,452 806,241 - 147,796 67,509,489 4.87% 2,168.35 1999 67,830,816 740,212 - 73,898 68,644,926 4.87% 2,229.96 2000 64,638,034 443,038 - - 65,081,072 4.41% 2,078.54 2001 69,202,428 360,927 - - 69,563,355 4.52°/a 2,210.25 III-12 Table 13 CITY OF BANGOR,MAINE Revenue Bond Coverage* Last Ten Fiscal Years Net Revenue Calculation Net Revenue Debt Service Requirements Fiscal Gross Operating Available for Year Revenues Expenses Debt Service Principal Interest Total Coverage 1992 No Revenue Bond Indebtedness 1993 $ 14,888,630 $10,962,918 $ 3,925,712 $ - $ 176,126 $ 176,126 22.29 1994 12,876,641 9,873,956 3,002,685 - 352,253 352,253 8.52 1995 11,853,307 9,861,003 1,992,304 - 352,252 352,252 5.66 1996 9,715,257 7,336,358 2,378,899 ]90,000 348,073 538,073 4.42 1997 9,932,620 7,190,091 2,742,529 195,000 339,311 534,311 5.13 1998 10,733,716 7,368,848 3,364,868 205,000 329,603 534,603 629 1999 9,769,117 7,059,474 2,709,643 220,000 318,758 538,758 5.03 2000 9,616,656 7,730,443 1,886,213 230,000 306,770 536,770 3.51 2001 11,849,772 8,634,188 3,215,584 245,000 293,642 538,642 5.97 * Revenue debt consists solely of a 19921imited obligation Airport bond issUe. III-13 Table 14 CITY OF BANGOR,MAINE Debt Service Requirements to Maturity all Bonded Debt June 30,2001 Limited Obligation Total Debt Service General Obligation Debt Revenue Debt Requirements Fiscal Year Interest Principal Interest Principal Interest Principal 2002 $ 2,724,792 $ 4,969,861 $ 279,308 $ 260,000 $ 3,004,100 $ 5,229,861 2003 2,477,034 4,448,865 263,789 275,000 2,740,823 4,723,865 2004 2,263;418 4,533,316 247,045 290,000 2,510,463 4,823,316 2005 2,058,125 4,331,397 228,890 310,000 2,287,015 4,641,397 2006 1,862,512 4,343,626 208,958 330,000 2,071,470 4,673,626 2007 1,662,605 4,366,193 187,368 350,000 1,849,973 4,716,193 2008 1,466,415 4,389,118 164,508 370,000 1,630,923 4,759,118 2009 1,265,096 4,312,418 139,528 395,000 1,404,624 4,707,418 2010 1,068,497 4,321,116 112,058 425,000 1,180,555 4,746,116 2011 887,651 3,780,232 82,578 455,000 970,229 4,235,232 Thereafter 2,954,126 16,941,286 68,508 1,005,000 3,022,634 17,946,286 Totals $20,690,271 $60,737,428 $ 1,982,538 $4,465,000 $22,672,809 $65,202,428 III-14 Table 15 CITY OF BANGOR,MAINE Self Supporting and Tax Supported General Obligation Bonds June 30,2001 Percentof Amount Total General Obligation Bonds Supported by Property Tax Revenues General Fund $ 11,940,488 19.66% � Education 10,865,862 17.89% Non-self Supporting Enterprise Fund 7,627,879 12.56% Total 30,434,229 50.11% Self Supporting General Obligation Bonds Sewer Utility Fund 29,782,726 49.04% Economic Development Fund 520,473 0.86% Total 30,303,199 49.89% Total General Obligation Bonds $60,737,428 100.00% III-15 Table 16 CITY OF BANGOR,MAINE Defined Benefit Pension Plan , City and Employee Rates and Contributions Last Ten Fiscal Years City Contributions for Normal Unfunded Fiscal Covered Retirement Liability Employee Total Year Payroll Costs (IUUAL) Contributions Contributions 1992 $ 16,223,381 $ 1,641,806 $ 1,781,327 $ 1,054,520 $ 4,477,653 1993 16,875,589 1,724,685 2,018,320 1,096,913 4,839,918 1994 17,578,929 1,778,988 1,988,177 1,142,630 4,909,795 . 1995 17,944,029 1,805,169 1,920,011 1,166,362 4,891,542 1996 18,302,798 1,830,280 1,800,995 1,189,682 4,820,957 1997 18,533,665 1,939,735 1,902,000 ],204,688 5,046,423 1998 20,338,206 2,035,590 1,882,104 1,328,738 5,246,432 1999 20,781,397 1,580,742 1,995,036 1,358,977 4,934,755 2000 21,962,160 981,064 2,076,252 1,436,490 4,493,806 2001 21,143,445 846,415 2,138,532 1,202,187 4,187,134 III-16 Table 17 CITY OF BANGOR,MAINE Defined Benefit Pension Plan Unfunded Liability Amortization Fiscal Beginning Annual Ending Year Balance Payment Liability 2002 31,782,408 2,202,693 32,038,900 2003 32,038,900 2,268,774 32,244,233 2004 32,244,233 2,336,837 32,395,259 2005 32,395,259 2,406,942 32,485,513 � 2006 32,485,S13 2,479,150 32,507,945 2007 32,507,945 2,553,525 32,454,880 2008 32,454,880 2,630,131 32,317,958 2009 32,317,958 2,709,034 32,088,084 2010 32,088,084 2,790,306 31,755,360 2011 31,755,360 2,874,015 31,755,360 2012-2021 31,755,360 33,935,778 19,872,678 2022-2026 19,872,678 21,121,379 - Total Payments $ 80,308,564 III-17 Table 18 CITY OF BANGOR,MAINE Public School Enrollment Last Ten School Years School Other Total Year K-3 4-5 6-8 9-12 Enrollment Enrollment 1992 1,440 617 906 919 181 4,063 1993 1,456 650 946 904 205 4,161 1994 1,387 676 938 965 173 4,139 1995 1,433 640 932 1,054 167 4,226 1996 1,361 617 892 1,056 247 4,173 1997 1,381 651 933 1,169 260 4,394 1998 1,322 645 920 1,302 219 4,408 1999 1,318 653 924 1,248 234 4,377 2000 1,284 624 909 1,268 325 4,410 2001 1,155 622 915 1,403 186 4,281 Source: Bangor School Committee III-18 Table 19 CITY OF BANGOR,MAINE Educational Attainment,Persons Age 18 and Over Calendar 1998* Penobscot State of Bangor County Maine Less than ninth grade 4.1% 5.1% 5.9% Ninth to twelfth grade,no diploma 8.5% 9.9% 9.9% High school, including equivalency 23.6% 27.8% 27.9% Some college 18.1% 16.l% 13.5°/a Associate's degree 6.9% 5.2% 5.0% Bachelor's degree 11.3% 7.8% 8.8% Graduate/professional degree 5.5% 3.9% 4.0% * Latest data available Source:U.S.Census Bureau III-19 Table 20 CITY OF BANGOR,MAINE Employment Composition Bangor, Maine MSA Last Ten Calendar Years Non-Manufacturing Manufacturing Total Non- Transportation Finance, Calendar Farm Durable Non-Durable and Public Wholesale/ Insurance Year Employment Goods Goods Construction Utilities Retail Trade Real Estate Services Government 1991 48,020 1,770 2,920 1,640 3,190 12,550 1,670 12,710 11,570 I992 47,820 1,610 2,870 1,660 2,920 12,580 1,660 13,050 11,470 1993 49,890 1,770 2,950 1,760 2,970 ]3,340 1,540 13,970 11,590 1994 50,300 1,800 2,580 1,710 2,940 ]3,580 1,540 14,770 11,380 1995 51,040 1,820 2,580 1,700 2,990 13,990 1,640 15,080 11,240 1996 51,300 1,850 2,440 1,930 3,060 13,930 1,660 15,480 ]0,950 1997 52,335 1,929 2,337 1,969 3,007 13,707 1,834 ]5,935 11,617 1998 53,480 1,956 2,395 2,018 3,080 13,977 1,852 16,434 11,768 ]999 55,450 2,060 2,390 2,290 3,400 14,000 1,970 17,980 11,360 2000 57,910 2,180 2,470 2,270 3,766 14,650 2,180 ]8,382 12,035 Source:Maine State Department of Labor III-20 Table 21 CITY OF BANGOR,MAINE �, Employment Data Last Ten Calendar Years Calendar Year Labor Force Employment Number Percentage 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 17,828 16,972 856 4.80% 1998 17,477 ]6,847 630 3.60% 1999 17,916 17,381 535 2.99% 2000 18,408 17,884 524 2.85% Source:Bureau of Labor Statistics III-21 Table 22 CITY OF BANGOR,MAINE Major Employer,Bangor and Bangor MSA Calendar 2000 Rank Employer Description Employees Location 1 Eastern Maine Medical Center Regional health care center 2,800 Bangor 2 Bangor Mall Shopping complex 2,700 Bangor 3 University of Maine Main campus, state 2,390 Orono university system 4 City of Bangor Municipal government 1,535 Bangor 5 Community Health &Counseling Community social service 819 Bangor Services provider 6 St. Joseph's Hospital Health care center 800 Bangor 7 Webber Energy Co. Fuel wholesaler/distributor 750 Bangor 8 Georgia Pacific Corp. Pulp and tissue producer 620 Bangor 9 General Electric Corp. Turbine manufacturer 620 Old Town 10 Shop& Save Supermarkets Grocery chain 600 Bangor 11 Microdyne Call center 450 Orono 12 United States Post Office Postal service 420 Bangor 13 Acadia Hospital Residential substance abuse 410 Bangor treatment facility 14 Eastern Fine Paper Paper producer 380 Brewer 15 City of Brewer Municipal government 357 Brewer 16 Irving Oil Corp. Fuel wholesaler/distributor 350 Bangor 17 Bangor Mental Health Institute Regional residential mental 330 Bangor health center 18 R.H. Foster Fuel wholesaler/distributor 318 Hampden 19 Shaws Supermarkets Grocery chain 300 Bangor 20 Verizon Communications company 300 Bangor III-22 Table 23 CITY OF BANGOR,MAINE Residential and Commerciat Building Permits and Bank Deposits (Dollar Amounts in Thousands) Last Ten Calendar Years Building Permits Residential Non-Residential Totals Calendar Bank Year Units Value Units Value Units Value Deposits* 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 34,9653 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 20,595.7 749,352.0 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 1998 284 3,149.7 223 37,984.6 507 41,134.3 808,188.7 1999 269 7,252.0 220 24,772.6 489 32,024.6 799,166.0 2000 296 9,637.9 191 18,888.9 487 28,526.8 780,101.0 * Source:Maine Bureau of Banking III-23 Table 24 CITY OF BANGOR,MAINE Ten Largest Current Construction Projects June 30,2001 Estimated ' Completion Value Rank Project Description Date (000's) 1 Curry Brandaw New construction July, 2001 $ 5,810.6 2 General Electric Addition March, 2003 5,219.9 3 City of Bangor Addition November, 2001 2,675.5 4 City of Bangor- School Addition November, 2001 2,283.0 5 Hilltop Inc New construction May,2003 1,655.7 6 Wal Mart Stores Inc Addition April, 2002 1,552.8 7 CMI,Inc New construction May,2003 1,3 87.2 8 Hannaford Brothers Addition August, 2001 850.0 9 Bangor International Airport Addition April, 2002 614.3 10 Broadway New construction August,2003 598.8 Total $22,647.8 III-24 _ Table 25 CITY OF BANGOR,MAINE Various Demographic Data 2000 and 1990 Census Age Distribution-2000 Household Income-1990 Owner Occupied Housing Values-1990 Age Category Number Percent Category Number Percent Category Number Percent Q4 10,594 33.66% <$15,000 3,740 27.97% <$25,000 31 0.69% 25-34 4,611 1.4.65°/u $15,000-$29,999 4,050 3028°/u $25,000-$49,999 396 8.87% 35-44 4,921 15.64% $30,000-$44,999 2,859 2138% $50,000.$74,999 ],682 37.70% 45-54 4,361 13.86% $45,000-$59,999 ],283 9.59% $75,000-$99,999 1,265 2835% 55-64 2,555 8.12% $60,000-$74,999 629 4.70°/u $]00,000-$124,999 445 9.97% >64 4,431 14.08% >$75,000 812 6.07% $125,000-$149,999 249 5.58% $150,000-$174,999 158 3.54% $175,000-$200,000 97 2.17% >$200,000 139 3.12% Total 31,473 100.00% 13,373 100.00% 4,462 100.00% Median 36 $ 24,674 $ 76,900 Source: U.S.Census Bureau III-25 Table 26 CITY OF BANGOR,MAINE Taxable Retail Sales (000's) Last Ten Calendar Years Taxable Retail Sales in: Bangor as Percent of Calendar City of Penobscot State of Year Bangor County Maine County State 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°/a 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% 1998 878,198 1,471,961 12,311,991 59.66% 7.13% 1999 992,135 1,738,263 13,453,367 57.08°/a 737% 2000 1,051,354 1,732,700 13,881,623 60.68% 7.57% Source:Maine State Planning Office and Maine Bureau of Taxation III-26 Table 27 CITY OF BANGOR,MAINE � Miscellaneous Data June 30,2001 City Employees Full time 490 Part Time 231 Public Education Number of schools 10 Number of teachers , 378 Number of students 4,281 Police Protection Number of officers 76 Number of civilian employees 16 Number of stations 1 Number of vehicles 38 Fire Protection Number of firefighters 93 Number of civilian employees 4 Number of stations 3 Number of vehicles 21 Number of training facilities 1 Insurance Service Organization fire protection rating 2 Parks and Recreation Number of parks 27 Acres of park land 950 Indoor ice arena ] Semi-pro baseball stadium 1 Public golf courses 1.5 Public swimming pools 2 Sewers Miles of sanitary sewers 113 Miles of storm sewers 35 Miles of combined sewers 44 Public Library Number of branches 1 Number of volumes 450,000 III-27