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CITY OF BANGOR, MA.INE Comprehensive Annual Financial Report ., For the Fiscal Year Ended June 30, 2002 _ , , . , . � Prepared by:� � Debbie Cyr, Finance Director David Little,Taac Collector/Deputy.Treasurer � CITY OF BANGOR,MAINE Comprehensive Annual Financial Report � - Table of Contents � For the fiscal year ended June 30,2002 INTRODUCTORY SECTION Page Letter of Transmittal I- 1 Awards and Recognition I-21 Certificate of Achievement � I-23 Organization Chart I-24 Elected Officials and Principal Administrative Officers I-25 FINANCIAL SECTION �� Report of Independent Auditors � Combined Financial Statements Overview: . 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 iJndesignated Fund Balance--Budget and Actual--Budgetary Basis--General Fund 3 II—4 Combined Statement of Revenues,Expenses and Changes in Retained Earnings/Fund Equity--All Proprietary Fund Types and Similar Trust Funds 4 II-5 Combined Statement of Cash Flows--All Proprietary Fund Types and Similar Trust Funds 5 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/LTndesignated 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 � EqU�ty 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 Page 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 Parking Fund D—7 II-50 Bass Park Fund D—8 II- 51 � Municipal Golf Course D—9 II- 52 � Economic Development Fund D— 10 II-53 Trust and Agency Funds: Combining Balance Sheet E- 1 II- 54 Statement of Revenues,Expenditures and Changes in Fund Equity-- Expendable Trust Funds E—2 II- 55 , Combining Statement of Revenues,Expenses and Changes in Fund Equity--Nonexpendable Trust Funds E—3 II-56 Combining Statement of Cash Flows--Nonexpendable Trust Funds E—4 II- 57 Statement of Changes in Assets and Liabilities--Agency Funds E—5 II-58 General Fixed Assets Account Group: Schedule of General Fixed Assets By Source F— 1 II- 59 � Schedule of General Fixed Assets By Function F—2 II-60 Schedule of Changes in General Fixed Assets by Function F—3 II-61 Other Information: . Assessed Valuation,Commitment and Collections G- 1 II-62 Undesignated Fund Balance Sufficiency Calculation G—2 II-63 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 IlI-5 Property Tax Rate Components,Last Ten Fiscal Years 6 III-6 Principal Taxpayers,June 30, 2002 7 III-7 Computation of Legal Debt Margin,June 30,2002 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 30,2002 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, 2002 14 III- 14 Self Supporting and Tax Supported General Obligation Debt,June 30, 2002 15 III- 15 Defined Benefit Pension Plan--City and Employee Contributions,Last � . Ten Fiscal Years � 16 ID- 16 Public Schoo) Enrollment, Last Ten School Years 17 III- 17 Education Attainment--Persons Age l 8 and Over,Calendar 2000 18 III- 18 Employment Composition Bangor Maine MSA,Last Ten Calendar Years ' 19 III- 19 Employment Data, Last Ten Calendar Years � 20 III-20 Major Employers--Bangor and Bangor MSA, Calendar 2001 � � 21 III-21 Residential and Commercial Building Permits and Bank Deposits,Last Ten Fiscal Years 22 III-22 Ten Largest Current Construction Projects, June 30,2002 • 23 III-23 Various Demographic Data,2000 Census 24 III-24 � Taxable Retail Sales, Last Ten Calendar Years ` 25 III-25 Miscellaneous Data, June 30,2002 � - 26 III-26 , .r_ . � � . I \ � ' � Introductory Section City of B�� 207/945-4400 O fax 207/945-4446 aine debbie.cyr@bgrme.org www.bgrme.org FINANCE DEPARTMENT Deborah A.Cyr, Finance Director December 26, 2002 To the Honorable Chairman, Members of the Bangor City Council, and Citizens of Bangor: Enclosed are the City of Bangor's audited financial statements for the fiscal year ended June 30, 2002. In order to provide 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 the City's audited financial statements. This document is intended to give the financial statements more depth, aid in their interpretation, and help identify the issues inherent in the City's financial operations. Responsibility far the accuracy, completeness and fairness of the data and its presentation rests solely with the City of Bangor and 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, including this letter of transmittal, is intended as an overview of the document as a whole. It consists of a narrative overview and analysis of the City's audited financial results f�r the fiscal year ended June 30, 2002 and contains other general iriformation about the City. The Financial Section is composed of the City's audited general purpose financial statements, including all notes and schedules for the General Fund, the seven 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 'selected financial, economic, and demographic information presented 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 30,2002 Introductory Section Location and Brief History The City of Bangor is situated in eastern Maine, is the Penobscot County seat, and is the third � most populous of Maine's 22 cities. Bangor is the hub of an 11-municipality employment area and 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. 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. Or�anizational Structure The City operates under a Charter adopted in 1931 that provides for a Council-Manager form of government. The City Council is composed of nine members who are elected at large for . three-year staggered terms. The Charter grants to the Council all powers to enact, amend, or repeal rules, ordinances, and resolutions relating to the City's property, affairs, and government; to preserve the public peace, liealth, and safety; to establish personnel policies; to give effect to any vote of the City; and ta authorize the issuance of debt. The Council adopts � an annual budget and provides for an annual audit. The City Manager is the chief administrative officer of the City and is appointed by the Council, as are the Assessor, Solicitor, a.nd Clerk. The current City Nlanager has been in his position since 1988. The City's schools are governed by a seven-member School Committee. Its members are elected at large to staggered tliree-year terms. By Charter, the School Committee has all the powers and performs all the duties related to the care and management of the public schools of the City. The Committee annually furnishes to the City Council an estimate of sums required for school purposes for the ensuing municipal year. The City Council makes a single gross appropriation for this purpose with the expenditure of this appropriation under the direction and control of the School Committee. The School Committee employs the Superintendent of Schools as its chief operating officer. The current Superintendent has been in his position since July 2000. " The Bud�et Process The City's budgeting process is structured azound 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 seven enterprise funds. 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 all non-tax revenues and receipts expected to be received during the next fiscal year, the expenditures necessary to support City operations, debt service requirements, and the tax levy required to achieve balance between revenues and expenditures. I-2 � _ City of Bangor,Maine Comprehensive Annual Financial Report , ' � . For fhe Year End'ed June 30;2002 • Introductory Section The Council may modify recommended expenditures and the recommended tax levy. 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 who then sets the necessary property tax rate. Financial Information The Finance Director is the City's chief financial officer and Treasurer. 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. The Finance Department is primarily responsible for establishing and maintaining the necessary internal controls and structures to assure that City assets are properly collected, accounted for,administered, safeguarded, and expended. Internal Controls The City employs a full array of internal 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 ovenide if payments exceed budget, the use of purchase requisitions, warrants, dual signature requirements, and the like. � Independent Audit In addition to these internal controls; the City Charter requires that an annual audit be performed by an independent certified public accountant. The City's general purpose fmancial . statements have been audited by Runyon Kersteen Ouellette. The audit firm has issued an unqualified opinion that the City's general purpose financial statements present fairly, in a11 material respects, the financial position of the City of Bangor for the year ended June 30, 2002. The independent auditor's report is the first coinponent of the financial section of this report. The firm also performed various tests and procedures to meet the requirements of the Federal Single Audit Act of 1984 and related OMB Circular A-133. The "Single AudiY' is designed to meet the special needs of federal grantor agencies. These reports are issued separately and are available upon request. � � Risk 1Vlanagement Overall risk management responsibility falls to the Finance Department, which identifies and takes reasonable steps to manage the risks inherent in the normal conduct of City business. � The City regularly purchases commercially available insurance for a variety of identified risks. I-3 City of Bangor,Maine - Comprehensive Annual Financial Report For the Year Ended June 30,2002 Introductory Section These include commercial general liability, auto, property damage, crime and dishonesty, and various other policies, each with limits and deductibles deemed prudent and reasonable given the nature of the risks, the cost of coverage, and the City's ability to fund various types and levels of losses. 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. An annual independent actuarial valuation is performed to ensure the adequacy of the City's reserves and that the program is funded to at least an 80%confidence level. ' Cash ManaEement �- Investment authority resides with the Finance Director, acting in accordance with the City's investmeni policy. The investment poTicy identifies the securities in wluch the City may invest and includes specific requirements by security type in such areas as final maturity, underlying collateral, ratings, and portfolio diversification. City policy requires that all available operating cash be invested in such a way as to preserve and protect principal, maintain liquidity, attain a market rate of return, and minimize market risks through diversity. The City's investment strategy is based on the principle of matching maturities with anticipated cash flow requirements and known future liabilities. , The City engages 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 2002 Results The accompanying general purpose firiancial statements detail the City's financial results for the fiscal year ended June 30, 2002. 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. I-4 - City of Bangor,Maine Comprehensive Annual Financial Report For the Year Edded June 30,2002 . Introductory Section 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 or be paid within the next fiscal year. At the end of fiscal 2002 ("FY02"), the General Fund had $23.9 million in assets. This full . amount is not expected to become available in fiscal 2003 ("FY03"). For example, $1.3 million of the $1.9 million in interfund loans are more properly considered long-term in nature. (The City has set aside approximately $1:3 million in its designated fund balance as a reserve � against these amounts.) Additionally, a substantial but indeterminate portion of t�es 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 be available for Generai Fund use during FY03 are approximately $20.8 million, representing a $2.8 million or 16% increase from the previous year when $18.0 million was available. This is the result of an increase of$2.4 million in pooled cash and investments spurred by positive operating variances and a$472 thousand decrease in taxes receivable. Liabilities are what the City is obligated to pay during the next fiscal year. At fiscal year end, the General Fund showed $6.3 million in liabilities, an 8.7% decrease from the previous year. This decrease is solely attributable to deferred revenue. This number should also be adjusted to reflect that the $1.7 million in "deferred revenue" is an accounting offset to taxes receivable and represents amounts owed to, not by, the City. (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, this approximated $16.2 million, up 21.8% from FY01's $13.3 million. This is the net amount of the General Fund's expendable resources expected to be available for operating purposes in the coming year. ' The General Fund's fund balance represents 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 yeazs and are unavailable for other purposes. Desi�nated balances are set aside by the Council for non-contractually obligated expendit�tres in subsequent years. They may, at Council discretion, be made available for other purposes. Unreserved/undesignated balances are available and may be appropriated by the Council for any lawful purpose. . City policy targets these balances at 7.5% of the I-5 City of Bangor,Maine Comprehensive Annual Fif�ancial Report For the Year Ended June 30,2002 Introductory Section previous year's General Fund expenditures, net of debt service: At the end of FY02, unreserved and undesignated balances increased by $1.4 .million, to $9.3 million, representing 13.9% of General Fund expenditures. This change consists of two components, as shown below. ` Components of Undesi�nated/Unreserved Fund Balance Chan�es Fisca12002 � (Dollars in Thousands) , Beginning unreserved/undesignated fund balance $7,870.3 Add: ' Excess of revenues and other sources over expenditures and other uses 1,138.2 Amounts appropriated from designated fund balances to adjust the reserve against.interfund loans to enterprise funds 283.3 Ending unreserved/undesignated fund balance $9,291.8 The Council may appropriate amounts within the unreserved/undesignated fund balance. Any appropriations made from funds in excess of the target are examined from an investment standpoint, either to reduce future operating costs or to spur economic devel opment/redevelopment. Revenues• The General Fund is primarily supported by taxes; intergovernmental revenues, and charges � for services. As shown in Schedule A'=2, FY02 revenues were $71.1 million, an increase of $3.0 million, or 4.4%, from FY01. The following table sets forth these revenues, their percentage of total revenue, and both the amount and percentage change between fiscal 2001 and 2002. General Fund Revenues bv Source FY01 and FY02 (Dollars in Thousands) FY01 FY02 FY01/02 Change Revenue source Amount % Rev's Amount % Rev's Amount Percent Taxes $38,504.3 56.5% $40,499.8 56.9% $1,995.5 5.2% Intergovernmental 18,695.1 27.4 19,580.5 27:5 885.4 4.7 Charges for services 9,334.0 13.7 9,755.0 13.7 421.0 4.5 Other revenue 1,595.2 2.4 . 1,307.1 1.9 (288.1) (18.1� , Totals $68,128.6 100.0% $71,142.4 100.0% $3,013.8 4.4% Taxes are the General Fund's principal source of revenue and consist primarily of real,personal property, and excise taa{es. More than one half of the total increase in general fund revenues is attributable to increased taxes. This 5.2% increase is a direct result of a 3.3% increase in assessed value coupled with an increase in the City's tax rate from$23.45 in FY01 to $23.75 in FY02. I-6 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended.�une 30,2002 Introductory Section State school subsidy and State revenue shaxing combined account for 72% of intergovernmental revenues other sources include the homestead exemption and various federal and state grants in support of General Fund functions. The major portion of the $885 thousand or 4.7% increase in intergov.ernmental revenue is due to increased State funding in the area of education, both in the form of increased subsidy and additional grant funds. Charges for services represent revenues collected from other funds (interfund) and unrelated � third parties for services performed. The total increase in charges for services revenue is $421 • • thousand, or 4.5%. This is primarily due to increased interfund billings associated with capital projects. Expenditures• As shown in Schedule A-2, FY02 General Fund expenditures were $95.2 million. Note that this in`cludes�a $27:6 miliion one-time payrnent to the Maine State Retirement Systern for the City's initial unfunded unpooled actuarial liability(see Long-Term Debt below for a discussion of this issue). Excluding this one-time payment, expenditures increased by $2.9 million, or ' 4.5% from FY01. General Fund expenditures, their respective percentages of total expenditures, and both the dollar and percentage change between fiscal 2001 and 2002 are shown immediately below. General Fund Exnenditures bv Category FY01 and FY02 (Dollars in Thousands) FY01 FY02 FY01/02 Change Department Amount % Exn's Amount % Exn's Amount Percent Education $34,277.8 53.1% $36,211.7 53.1% $1,933.9 5.6% Public safety 10,253.0 15.8 10,802.4 15.8 549.4 5.4 Public services 7,108.4 11.0' 7,359.8 11.0 251.4 3.5 General government 3,737.1 5.8 3,818_3 5.8 81.2 2.2 Health, welfare � and recreation 2,716.5 4.2 2,875.6 4.2 159.1 5.9 Other agencies and appropriations 6,559.8 10.1 6,498.7 10.1 (61.1L�0.9) Totals $64,652.6 100.0% $67,566.5 100.0% $2,913.9 4.5% As always, the largest expenditure category is education at $36.2 million, an increase of$1.9 million or 5.6% from FY01. The City's portion of FY02 expenditures was $31.4 million, up about$1.0 million or 3.2%from FY01. Public safety expenditures include police and fire services. These functions are extremely labor intensive, with 85% of total expenditures labor related. The principal increase within this function is directly related to increased wage and fringe benefit costs. I-7 City of Bangor,Maine Comprehensive Annnal Financiat Report For the Year Ended June 30,2002 Introductory Section Public services expenditures include, engineering, electrical, forestry, cemetery, sanitation, recycling, and other public works functions. Here again, wage arid fringe benefit costs are the primary reason for the increace. . Enterprise Funds Status and Results The Ciiy operates seven 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 Parking Fund, Bass Park, Bangor Municipal Golf Course,the Park Woods housing complex, and the Economic Development Fund. Ban�or International Airport: Airport operating revenues decreased by $1.2 million, or 12.1%, to $8:7 million. While a portion of this resulted from the aftermath of September 11,the bulk of the decrease was due to � an $800 thousand one-time State grant received during FY01 coupled with reduced services provided to airlines caused by the national reduction in air travel. Operating expenses of$8.2 , million (before depreciation and amortization, hereinafter referred to collectively as "depreciation") decreased by $400 thousand, or 4.7%, below FY01 levels. This decrease was largely driven by the grant referenced above offset by additional payroll and police protection costs associated with additional passenger screening and security requirements. Net income, after adding back depreciation on assets acquired with contributions (hereinafter referred to as "depreciation add back"), declined $1.45 million as a result of operations and the continued decline in capital markets. Operating cash use of$430 thousand shows a significant decrease from FY01. This stems from decreased operating revenues and a $370 thousand increase in accounts receivable. At fiscal year end, retained earnings stood at $33.7 million, cash and equivalents at $4.3 million, and interfund payables at$600 thousand. During 2002, the Airport was in the midst of a major runway, taxiway, and hold apron rehabilitation project. The majority of this project is grant funded. The Airport must first pay for work performed� and is only subsequently reimbursed by the grantor agencies. At year-end, this delay resulted in a substantial interfund payable amount. The approximate 10% reduction in air travel nationwide does have a financial impact on Bangor International Airport's operating revenues in such areas.as landing and ground service fees and fuel sales. However,passenger traffic at the Airport continues to grow. In June 2002, Bangor International Airport was ranked as the third fastest growing Airport in the United States, with year to date growth of 11.4% in seats flown. This growth, coupled with the City's vigilance in regards to airline receivables and continued operating efficiencies, will ensure , continued financial well being for the Airport. I-8 City of Bangor,Maine Comprehensive Annual Financial Report , For the Year Ended June 30,2002 Introductory Section Sewer Utility Fund: , Operating revenues increased slightly to $6.4 million due to an increase in billable flow. A concentrated effort to replace older water meters has resulted in more accurate usage figures. Operating expenses before depreciation were $2.9 million, an increase of $443 thousand, or 17.7%. This represents a number of small line item increases in operating costs related to the replacement of operating parts due to normal aging of the plant and market fluctuations in chemical and electricity costs. Operating income fell to $1.9 million. Increased operating costs together with a $300 thousand increase in amounts due from the water district (the amount due to/from the water district, an independent quasi-municipal entity, varies greatly from period to period), resulted in operating cash flow of$3.21 million, down $543 thousand, or 14.5%, from FY01. Retained earnings at fiscal year end were $18.7 million, while cash and equivalents were $3.0 million. During FY02, the Fund began receiving repayment on its investment in the Mai�e. Discovery Museum. Over $765 thousand in principal and interest payments were received, of which approximately 45% was ahead of schedule. The Fund continued its history of maintaining sizeable cash and equivalents. This cash position provides for rate stabilization in the face of significant 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 usage and increasing debt service requirements. Current projections indicate that as this cash is exhausted, rates may ultimately require small increases beginning in about 2005 to cover cash flow deficits. The balance of a $6 million dollar EPA grant for capital projects will be spent in 2003. The City will then return to borrowing from the State Revolving Loan Fund for required capital purposes. A portion of such funds is loaned interest free. . Lastly, the City is reviewing plans to construct it's own power generating system at the wastewater treatment plant. Electricity costs represents about 18% of total operating expenses. A separate system can be used for "peak shaving" to reduce these costs while also serving as a back-up power source in an emergency ' Parkin�Fund• From the time the City Council committed to the construction of a parking garage in downtown Bangor,the Council expected the Parking Fund to generate sufficient operating revenues to cover its operating expenses. It also recognized that a subsidy is necessary to cover at least a portion of its debt service. With that preface, the excess of operating revenues over operating expenses increased $20 thousand from FY01. In FY02,the first debt service payment for the garage expansion was due,resulting in a$239 thousand increase in the General Fund's operating subsidy to $555 thousand. Operating revenues were relatively flat owing to limitations on the use of the garage during construction. Operating expenses before depreciation decreased 9.3%to $470 thousand largely as a result of decreased operating costs and management fees. Net income after both the subsidy and depreciation add back improved I-9 City of Bangor,Maine � Compre�ensive Annual Financial Report For the Year Ended June 30,2002 Introductory Section from $59 thousand to $144 thousand. Retained earnings stood at$145 thousand, and ending cash and equivalents were $315 thousand,up from last year's $274 thousand. The City continues to rely on the recommendations of an annual ad hoc Downtown Parking Advisory Committee charged with providing the necessary parking resources while maintaining a pricing structure that is both affordable and able to meet operating expenses. As a result of their work, new pricing structures have been put in place. The recommendations of these Committees have generally been received as fair, generated broad support, and resulted in increased off-street parking revenues to the fund. ' Bass Park: The Bass Park complex operating revenue for FY02 remained flat at $1.3 million. Operating expenses before depreciation decreased by $67 thousand, or 4.0%, to just under $1.6 million. This decrease is solely attributable to a reduction in concert expenses associated with the 2001 Bangor State Fair. On an operating basis (without depreciation), the complex lost approximately $271 thousand (against a $371 thousand loss in FY01), and experienced an overall net income of$73 thousand after the General Fund subsidy of$574 thousand. FY01's net loss, after a$571 thousand subsidy, was $2 thousand. On an operating cash flow basis,the complex lost$146 thousand, a significant improvement of $234 thousand less than FY01. Increased operating cash is a direct result of decreased operating expenses, a reduction in accounts receivable, and significant concert sales in advance of the 2002 Bangor State Fair. Net General Fund support in FY01 was $542 thousand compared to $299 thousand for FY02. Year-end retained earnings remained stable at a negative $1.8 million. Ending cash and equivalents were minimal at$15 thousand. At fiscal year end, the complex had accumulated just under $1.3 million in cash flow loans ' from the General Fund. This amount is a reduction of$250 thousand from last year and has been fully reserved for in the General Fund. Efforts continue to improve the complex's financial performance as well as to assess the overall infrastructure of the existing facility. The age and condition of the current auditorium and civic center appear to be factors affecting the ability of the complex to increase its revenue stream. In recent years,the City has aggressively explored options for new state-of-the-art meeting and event facilities. To gain a full understanding of the impact of a new facility on Bangor and the region,the City retained the services of HOK Sport+Venue+Entertainment and Convention Sports and Leisure to study the market and financial impacts of a new facility. These analyses also provide preliminary designs and cost estimates for a new complex. City officials also continue to explore financing mechanisms for the capital costs associated with a new complex. Municipal Golf Course: "Bangor Muni", as it is.called, continues to operate at a surplus on both a net income and cash flow basis. FY02 revenues are reflective of a nationwide decline in rounds played and I-10 City of Bangor,Maine Comprehensive Annual Financial Report � For the 1'ear Ended,Tune 30,2002 Introductory Section increased competition from new courses in the region. FY02 revenues decreased $58 thousand (8.6%) to $618 thousand. Operating expenses were $481 thousand, up 17.4%, or $71 thousand from FY01. The increase in operating expenses was driven in part by increased water costs associated with a new automated sprinkler system,the start of a sand replacement program, and increased seasonal wages. The operating changes discussed above had a direct impact on operating income, which was $17 thousand, down from $171 thousand in FY01. Net income, at $43 thousand, was down from last year's $187 thousand. Operating cash flow of$121 thousand was also down from last year's $289 thousand. Ending retained earnings were $1.7 million; cash and equivalents were $572 thousand. Park Woods Comnlex: After the depreciation add back, the net income of the complex was $76 thousand, including a $29 thousand operating subsidy from the General Fund. In FY01,.net loss (after the add back) was just under$20 thousand, including a General Fund subsidy of$36 thousand. The dramatic shift from a net loss to a net income is wholly attributable to a one-time $96 thousand reimbursement for past capital expenditures. Operating expenses remained flat at $334 thousand versus $332 thousand for FY01. Net operating cash flow deteriorated to a negative $63 thousand from a negative $20 thousand in FY01. Retained earnings closed the year with a $3 thousand deficit; cash and equivalents were at$40 thousand. In FY99, the City acquired 51 units of surplus military housing from the Federal government. The rehabilitation and resale process was completed during FY02 with sales proceeds exceeding rehabilitation costs. These excess proceeds were used to create a Park Woods Expendable Trust Fund. In future years, these funds will supplant the General Fund operating subsidy and provide funding for physical plant upgrades and maintenance. Economic Development Fund: In FY02, this fund generated $275 thousand in operating revenue, a slight increase.from FY01's results of$268 thousand. Operating expenses before depreciation were $76 thousand, down $11 thousand from FY01. Net loss after the depreciation add back was $402 thousand compared to FY01's net income of $376 thousand, Operations remain virtually unchanged. The large swing to a net loss was entirely due to a one-tirrie transfer of$866 thousand to create the Park Woods Trust Fund (discussed under Park Woods Complex). Cash flow from operating activities was $207 thousand, a minor increase over FY01's $194 thousand. Both year-end retained earnings of$1.0 mill.ion and ending cash and equivalents of$238 thousand ' were directly affected by the creation of the trust fund., Lon�-Term Debt At fiscal year end,the City had long term debt totaling $105.7 million, $101.5 million of which is of the full faith and credit, general obligation variety. Of this, $34.7 million, or 34.1%, is fully self-supporting and is paid from user charges. I-11 City of Bangor,Maine • Comprehehsive Annual Financial Report ; For the Year Ended June 30,2002 � Introductory Section During FY02, the City issued $34 million in pension obligation bonds. While this may appear to create a drastic increase in outstanding debt, it does not. Rather, it replaces an existing liability owed by the City to the Maine State Retirement System. The City was amortizing its initial unfunded unpooled actuarial liability to the Maine State Retirement System over time at an annual interest rate of 8%. By issuing bonds, the City was able to obtain a more favorable interest rate, thereby saving Bangor taxpayers and users in excess of $8.2 million over the amortization period. More detailed information regarding this transaction�may be found in the section entitled Detailed Notes on All Funds and Account Groups,Note I. ;. � Most of the balance of the City's debt is for the General Fund ($43.0 million) and schools ($16.2 million). Smaller amounts are attributed to those funds that require General Fund support and thus must carry the City's full faith and credit pledge. These include the Parking Fund($5.9 million) and Bass Park($1.7 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$304 thousand. During FY02, the City issued $45.8 million in new general obligation debt ($34.0 million of pension obligation bonds), and retired $5.2 million. As it has since February 1999, the City's general obligation debt cazries a Moody's"Aa3" rating. Departmental Focus School Deuartment: � The Bangor School System operates as a department of the City of Bangor's General Fund. Carrying a profound responsibility for educating Bangor's children,the schools expect academic excellence from all students. ,A tradition of strong community support is evident in the diversity of programs offered, starting in kindergarten and continuing through grade 12 and into adulthood. T'he system provides comprehensive educational services to children with disabilities as well as full curricular acceleration to the motivated student. Student participation is prized, and the system aggressively pursues co-curricular options for its students at all levels. The school system has established a reputation for developing a strong reading and mathematics foundation and positioning students for matriculation in the best colleges and universities in the country. Characteristically, over 75% of graduating seniors attend post secondary institutions. Within one year aft�r graduation, another 10%are enrolled. None of this would be possible without the infrastructure to support it. Of significance this year, the School Department completed a $4.5 million, 28,000 square foot addition and renovation project at Bangor High School. This 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 I-12 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2002 Introductory Section to alleviate hallway congestion, and an astronomical observatory. Bangor High is now the largest high school in Maine, 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. As with most other general government functions, a majority(59%) of the school department's budget is supported by the property taxpayer. The City Council and citizens of Bangor have long recognized that a quality and respected public school system is essential for the future growth and economic development of the community. Additional revenue sources include State of Maine General Purpose Aid to Schools, various grants, tuition,and fees for service. As school officials look to improve academic achievement, the largest obstacles they face are shrinking revenues, rising fixed costs, and the State's inability to fund educational expenses at the 55%level, as intended by law. 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, 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. Infrastructure and Sunport 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. Bangor International Airport (BGR) connects the community to U.S. and foreign markets. The airport is nationally recognized as a successful military base conversion, and now represents approximately 10% of the region's total economic activity. Almost parenthetically, BGR has I-13 City of Bangor,Maine Comprehensive Annua!Financial Report For the Year Ended June 30,2002 Introductory Section one of the longest civilian runways on the East Coast and is an alternate 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 Verizon's two major telecommunication hubs in Maine. Accordingly, the City is the connecting point for much of the more than 75,000 miles of fiber optic cable currently in place. Further, Mid Maine Communications has extended its fiber optic network from Bangor both south to Portland and into northern Maine and serves 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. With four hospitals, Bangor is a regional center for health care services. With four commercial and 1 public television stations, 12 radio stations, and New England's 4th largest daily newspaper,$angor is the media hub for northern and eastern Maine. 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 north, and the City is home to five other institutions of higher learning: Husson College, University College of Bangor, Beal College, Eastern Maine Technical College (which will develop skill specific courses for area employers), 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 2001, the Bangor region had a workforce of 58,570, up 1.1% over 2000. The largest employment sectors were services (up 3.6% to 19,040 employees), wholesale and retail trade (holding steady at 14,730 employees), and government (down 1.6% to 11,840 employees). City residents accounted for 18,477 employees in the 2001 regionallabor force. For the third year running, Bangor's 2001 unemployment rate of 3.0% remained virtually unchanged and continues to be below both state and natiorial rates. Bangor is the second largest retail market in Maine after Portland. 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 ihe Ganadian Maritimes with a population exceeding 3.1 million. Bangor's 2001 t�able retail sales were flat at$1.3 billion. With less than three percent of the State's population;Bangor's share of tYie State's retail sales has remained in excess of 7% since 1988 and stood at over 9%in 2001. Over the same period, Bangor's share of Couniy sales has grown significantly,to just over 70%. I-14 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2002 Introductory Section Recent New Development: The City of Bangor has partnered with the University of Maine and a local venture capitalist to help establish Engineered Materials of Maine, a company designed to commercialize materials created by the University's Wood Composite Research Facility. Projections call for the new company to grow to 75 full time employees by the end of 2004. The City is participating in this effort through the purchase of an existing building in Bangor to be used as a manufacturing facility and through a t� increment financing program on the new company's personal property. The building has been leased to the company at cost to assist in its start-up phase. This project is exciting not only because of the jobs that will be created but because of the strong partnership between the City and the University of Maine. As the State has invested in research and development at the University, the opportunity for additional commercial developments has been increased, and the City of Bangor is positioned well to assist in such ventures. The historic Waterworks Complex, once a water treatment facility and an electric generating complex located on the banks of the Penobscot River, may soon be home for up to 35 low to moderate income persons. The City has worked for over thirty years toward the redevelopment and reuse of this property for commerciai purposes. Over this period,numerous redevelopment proposals have failed due to site access limitations and high redevelopment costs. Recently, Shaw House, a local social agency providing services to homeless youth, was granted tentative developer status for this property. The developers have secured the estimated $5.8 million in funding needed for its rehabilitation through the Maine State Housing Authority Rental Loan Program, Federal Home Loan Bank, low income housing tax credits, developer fees, and a commitment to the project from the City of Bangor. Bangor's financial commitment will be limited to 17% of total project cost not to exceed $l million (much of the commitment will be grant funded). This project will allow the City to avoid the costs associated with demolishing this complex and will also provide much needed low to moderate income housing. An objective established by the Council for 2002 was to encourage new housing. For the first time in recent memory, there has been a significant increase in.the number of available residential lots within the City. Last year, the City could count less than 12 available lots. This year, the City boasts in excess of 100 and has been approached by additional developers iriterested in further residential development. Even with the increase in available lots, no significant infrastructure improvements will be needed to accommodate this growth. In August 2002, the City of Bangor hosted the 64th National Folk Festival. A partnership between the National Council for the Traditional Arts, Bangor Convention & Visitor's Bureau, City of Bangor, and Eastern Maine Development Corporation worked to bring a diverse group of entertainers, performance artists, crafters, artisans and food vendors to Bangor's waterfront. Attendance far exceeded expectations,with an enthusiastic and appreciative crowd of 80,000 in attendance over the Festival's 2 %z days. Historically, second year attendance at this nationally known festival has increased by 50%. Given the outstanding response to this year's event, we I-15 City of Bangor,Maine Comprehensive Annuai Financial Report For the Year Ended June 30,2002 Introductory Section anticipate that Bangor will experience the saxne growth this coming summer when the festival returns on August 22-24, 2003. August of 2002 also marked the first year of a five-year commitment for the Senior Little League World Series to be held in Bangor. This year's event also far exceeded organizers' expectations with large crowds present to support teams from the United States and throughout the world. On�oing 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 Redevelonment: Once the retail hub of the City, the recent challenge has been to find riew uses for a number of vacant or underutilized downtown buildings. The City recognizes the symbolic importance of a vibrant downtown. Accordingly, significant staff ancl financial resources have been devoted to revitalizing and reinventing this important part of the City. A major focus of downtown efforts has been the arts and culture. Building upon the existing . presence of the Bangor Public Library, the Penobscot Theatre Company, and the Maine Discovery Museum, the City has continued to support the presence of arts and cultural activities in downtown. The University of Maine Museum of Art is now open downtown. In part as the result of a $400,000 challenge grant from the City, the University raised more than $1 million to renovate one floor of the historic Norumbega Ha11 as premier gallery and exhibit space. In addition, the University will also operate a visual arts center at this location that will offer classes, workshops, and other events to area residents. With a collection of more than 4,500 works of art with a value in excess of$5 million, the University Art Museum will serve as another downtown destination and strengthen the creative cluster of institutions and individuals that now call downtown home. T'he Bangor Museum and Center for History has expanded with the opening of an accessible exhibit space on one of the downtown's major streets. Elements of the Museum's collection, which could not easily be seen at their primary location due to space constraints, are now on display in downtown. As cultural institutions have been established in or expanded downtown, downtown residential development and commercial activity have also grown. We have seen continued interest in the renovation of smaller downtown buildings, particularly long-vacant upper stories, which are now being transformed into living spaces. Individual artists have also located studio spaces in upper floors, providing both a sound tenant base and an additional attraction to downtown visitors. Bangor's downtown has become more vibrant and appealing to the region's population. I-16 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2002 . Introductory Section � Downtown remains a center for government and is home to Bangor City Hall, Penobscot County Offices, and state and federal courts. Over the past year, the City of Bangor has worked closely with Penobscot County and the Maine Court System to develop a plan for a law enforcement and court center downtown. Recognizing that the state court system is in need of additional space and that the City must repTace its Police headquarters due to age and structural , problems, a campus plan has been developed for the City/County property located on Hammond and Court Streets. This plan calls for the construction of a new police headquarters, a major court expansion, and the renovation of several existing buildings for County offices. The Ci .ty has contracted for the design of a new police station, and we anticipate breaking ground during the summer of 2003. The Court System is currently seeking proposals for architectural services, and legislation will be introduced at the state level to fund their expansion project. These efforts will insure that a significant employment base remains in Bangor's downtown and that the Courts will continue to be conveniently located to law enforcement facilities and legal offices. Waterfront Redevelopment: 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 36-acre site, undertaken in cooperation with the Maine Departrnent of Environmental Protection, is now complete, and infrastructure development has begun in earnest. Current plans call for some $180 million in development including: a headquarters hotel and high- technology conference center, new class A office space, restaurant and retail space, residential apartments and condominiums, and other private sector projects. The City is in conversations with a number of potential private developers for aspects of this project. The City's immediate focus is on public space. Work is now in progress on improvements to Front Street. This will be followed in the spring with a similar project on Railroad Street. These projects include new infrastructure, street and landscape improvements, and public parking areas. We also anticipate that design work will begin shortly on a public amphitheater to be funded by a private donation from Christopher Hutchins. The amphitheater will be designed to provide an outdoor venue for public events and to attract visitors to the waterfront. Plans are also underway for a variety of intermodal improvements that will allow the Waterfront to act as a transportation hub linking Bangor with the Maine coast including Acadia National Park. Of note, the waterfront will be the homeport of a coastal cruising vessel during the summer of 2003. Public space improvements will continue in phases in future years to include additional street and landscape improvements and the construction of a public park along the riverbank. ' Other Additionally, the city continues to move on several other fronts. Some of the more significant initiatives currently underway include the following: I-17 City of Bangor,Maine Comprehensive Ani�ual Financial Report For the Year Ended June 30,2002 Introductory Section Bass Park• The City has received a proposal from Capital Seven L.L.C. on the potential redevelopment of Bangor Raceway. A Las Vegas developer has proposed a two-phase rehabilitation of the raceway and surrounding Bass Park property. The extensive redevelopment would include expansion of the track and a new grandstand and clubhouse in phase one. In phase two, a new 225-room all suites hotel and a 60,000 square foot convention center and video lottery terminal (VLT) facility would be constructed. � While the developer has indicated that phase one construction could begin as early as August 2003,phase two development will be contingent upon successful approval of a statewide referendum authorizing installation of slot machines, also known as VLT's, at harness racing facilities in Maine. Nei�hborhood preservation and improvement:. 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. 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: The State's long range Strategic Passeriger 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 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, which sits astride the existing east-west route that represents the shortest distance between Canada's easternmast provinces and the cities of Quebec and Montreal, will benefit from any improvements to this artery. Bangor is ideally situated and equipped to act as a transshipment point for commerce. Economic development strate�v: The City of Bangor maintains the highest level of commitment to a strong economic development strategy as a means of increasing revenue opportunities, creating an environment for employment growth, and enhancing the quality of life for the citizens of Bangor and the I-18 City of Bangor,Maine Comprehensive Annual Financial Report For the Year Ended June 30,2002 Introductory Section surrounding region. As the service center community for eastern and northern Maine, Bangor's economic development efforts serve to promote the city as the center for excellence in retail growth, professional services, health care, education and transportation. The planning and coordination of this strategy necessitates a long term regional effort to ensure that the level of growth is controlled and sustainable, and is carefully woven into the existing fabric of our vibrant community. Tax Reform Initiative: The Maine Municipal Association, through a political action committee known as Citizens to Reduce Property Taxes Statewide, has undertaken a citizen initiative to place a tax reform question on the ballot in November 2003. This initiative would require the State to provide 50% of the funding for local kindergarten through twelfth grade education, including 100% of special education funding. This initiative is the result of the failure of the State to meet its commitment to adequately fund local education. At this time, it appears that sufficient signatures have been gathered to place this question on the ballot. If approved, it would significantly increase state funding for the Bangor School Department with a concomitant reduction in the tax levy for school purposes. T� reform has become a major issue of statewide interest in recent years, and we anticipate that this will be but one of several serious efforts to address the overall system of t�ation in Maine. State Bud�et Imnact: Current projections indicate that the state is facing a shortfall of approximately $1 billion for the coming biennium. Given the general consensus that the tax burden in Maine is too high, it � is likely that strong efforts will be undertaken to reduce state spending. This may result in reductions to state aid programs to municipalities in such areas as aid to education and revenue sharing. Coupled with the slow state economy, it is likely that these problems will result in a difficult budget year for municipalities as they prepare their FY04 budgets. Implementation of GASB 34: For the year ended June 30,2003, the City of Bangor will be required to implement the Governmental Accounting Standards Board Statement No. 34,which establishes new financial reporting standards for state and local governments. Statement 34 is one of the most comprehensive financial reporting standards in the history of standards setting and by far the - biggest change ever in governmental financial reporting. Some of the more significant requirements of Statement 34 are that governments must record and depreciate their fixed assets rather than simply account for them in an account group. Goverriments must also begin recording"infrastructure assets"which includes roads, bridges, dams, and other infrastructure. Additionally, there are significant changes in the presentation of your.financial statements. The GASB believes that these changes will result in greater accountabiliTy by governments by providing more useful information to a wider range of users. I-19 < City of Bangor,Maine Comprehensive Annual Financial Repoi-t For the Year Ended June 30,2002 Introductory Section Conclusion The City of Bangor's financial position remains sound. Our t� 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. It is also intended to proyide a means by which interested parties can more fully assess the , City's financial well being. The Government Finance Officers Association of the United States and Canada (GFOA) � awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bangor for its comprehensive annual financial report for the fiscal year ended June 30, 2001. This was the fifth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report 'continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. � 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. 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. � , Respectfully submitted, Debbie Cyr Finance Director I-20 City of Bangor,Maine . Awards Received and Recognitions Bestowed 1999—2002 . United States Department of Education 2001-2002 Blue Ribbon Schools Program Bangor High School Maine Emergency Medical Services Community Service Award Bangor Fire Department United States Environmental Protection Agency Outstanding Pretreatment Program City of Bangor, Wastewater Treatment Plant Maine Town 8c City Management Association , Leadership Award � to Edward Barrett,City Manager . � � D.A.R.E.America 2002 Lifetime Achievement Award • to Dan Frazell, 8angor Police Departrnent � , 1Vlaine Emergency Medical Services 2002 EMS Merit � For Exceptional Contribution in areas of EMS to Troy Lare, Bangor Fire Department Maine Recreation&Park Association Facility of Merit Award for the ' Bangor Skate Park ' 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 Awacd for Outstanding � Service to the Profession to Brad Moore, Superintendent of Wastewater Treatrnent Plant Avitat Bangor,2001 Bangor Aviation,at Bangor International Airport. Designated as an E�con Mobil Avitat Government Finance Officers Associated of the United States and Canada, 1998, 1999,2000,2001 and 2002 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, 1999,2000 and 2001 � I-21 City of Bangor,Maine Awards Received and Recognitions Bestowed 1999—2002 (continued) Maine Wastewater Control Association Roger Gagne Award for Exemplary Service _ and Tenure with the Association to Alfred Jellison,Chief Operator Civic 50 Award,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 Maine Fire Prevention Resource Exchange,2000 Given to individuals who have gone above and beyond their 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 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 I-22 Certificate of Achievement for Excellence in Financial Aeporting Presented to City of Bangor, Maine For its Comprehensive Annual Financial Report f or the Fiscal Year Ended � June 30, 2001 A Certificate of Achievement for Excellence in Financia! 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. ��GE�f� ��/��G�C� �►io� �� D" � Presldent � co�►'�a' � 96 ?�' 'Or f^ '� AIR�B� �� Executive Director � APPENDIX B CITY OF BANGOR ORGANIZATIONAL CFIART(9-00) CITIZENS OF BANGOR CITIZEN ��' CITIZEN COMMISSIONS COUNCIL BOARDS CITY CITY CITY SOUCITOR ASSESSING MANAGER CLERK ANIMAL ELECTIONS CONTROL COMMUNITY AND - INTERGOVERNMENTAL LICENSES AFFAIRS i INFRASTRUCTURE AND GOVERNMENT BUSINESS AND ECONOMIC FINANCE DEVELOPMENTSUPPORT OPERATIONS DEVELOPMENT AUDITING TREASURY ENFORCEMENT P�NING ENGINEERING �� POLICE FIRE R CRKEAT ON CONOM DEV. INTERNATOIONAL B�S PARK AIRPORT RISK INFORMATION �OR PUBLIC WORKS SE�R DETECTIVE PATROL FIGHTING MINISTfiATION �M µqry� RECREATION COMMUNITV ECONOMIC MANAGEMENT SERVICES MAINTENANCE DEVELOPMENT DEVELOPMEM CIVICCEN7E �UDITORIU RDMINI9TPATIO SERVICES FIRE GOLF STATE PR UREMAU N DOWNTOWN PARKING .FAIR PURCHASING � PRQGRAMS � MANAGEMEM � HEALTH AND ADMINISTRATNE � WELFARE SERVICES GENERAL NURSING HUMAN IABOR . RELIEF SERVICES RESOUHCES ON DEMAL GRANT FLEET TME C I IC PROG MS I N BUS . � CEHTRAL- SERVI City of Bangor,Maine Elected Officials and Principal Administrative Officers At June 30,2002 Citv Council Michael R.Crowley,Ivlayor Anne E.Allen Joseph M.Baldacci Nichi S.Farnham Frank J.Farrington David S.Nealley Gerry G.M.Palmer John M.Rohman Daniel J.Tremble Ci Staff Edward A.Barrett,City Ivlanager Benjamin F.Birch, City Assessor Gail E.Campbell, City Clerk Debarah A.Cyr,�Finance Director Norman Heitmann,City.Solicitor School Committee Martha G.Newman,Chair Susan A.Carlisle James F. Cox George F. Eaton. Phyllis M. Shubert,Vice Chair Christine Sza) Ellen Tobin School Staff Robert Ervin, Superintendent of Schools. Alan F.Kochis,D'trector of Business Services ; Financial Section � �� jzu v��ov� �.�— , �C,erstee�. ��- D�eltette Certified Public Accountants and Business Consuitants 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 30,2002,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 fhe United States of America and the standards applicable to financial audits contained in Government Auditing Standazds 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 financial 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 significant estimates made by management,as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion,the general purpose financial statements refexred to above present fairly,in all material respects,the financial position of the City of Bangor,Maine as of June 30,2002, 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. In accordance with Government Auditing Standards,we have also issued a report dated October 10,2002 on our consideration of the City of Bangor,Maine's internal control over fmancial 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 financial statements taken as a whole. The combining and individual fund and account group statements presented on Schedules A-1 through G-2 are for purposes of additional analysis and are not a required 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 ta the general purpose financial statements taken as a whole. City Council Page 2 ' The 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. I�CJZti� � October 10,2002 South Portland,Maine ,�� s� ' ` r. �'..- . , . . . ' . . .. t ,.. • '` �':� ' . � � . , , COMBINED FINANCIAL STATEMENTS ("Liftable" General Purpose Financial Statements) . F These basic firnancial.statements provide a summary overview of the financial position of all funds and account groups"and of the operating results of all funds. 1'hey also serve as an introduction to tl�e more detaiied statements and schedules that follow. , t - Exhibit 1 CiTY OF BANGOR,MAINE All Fund Types and Account Groups' Combined Balance Sheet � June 30,2002 " . ProPAetsrY . Fidod�q . . . � Governmmhl Fund Typa .Fuod Type }body' � � ActooOt G'oape . � . �� No�. . . , Ctnenl _ Tohb � Special Cepkel Pspend�Dk �PendaMe . . . � " . I:ong-term Ceaenl (Memoromlam � � . Ceoenl Revmoe ProJeeu EMerprke Trart .Trnet � A'geuey � Debt Fued p�etb � pn�y) . � . ASSETS AND OTRER DEBTfS . ' ' . . . � Cash afd cash equivaients S 3,126 E 105,739 S � 199.883 E . 578,352 S ' I . . . '.S�- �.14,493 _ S � - S. ' � - S � -901.595 � Imestmmts 17,565,945 - I,I30,151 21,300,298 952,314 1,152,887 '. 814,439 � - - - . 42,916,034 Receivabla: . ' . . .. � . . . � � Taxes 1.186,585 ' ' ' � - ' ' .��. ' ' . • 1.786,585 Accounts,nM ofallowance 1,326,13I i,144 B.I10 � 3.778.700 � ' ' . ' . - 5.114,085 lnterfund loans 1.880.855 123,500 - � � • - . � � -. . . ,� -' 2.004.355 Loans,M.1 of allowance . ' .4,352.933 - �" 1,162.12(1 - 2�,299 . . - . - - � . 6.142.352 Defcmd spocial assessmrnts - - 3Q 130 89,758 � . . � � . � - � . ' 119.488 . lmergovanmental 996.042 115,670 6,588 1,620,272 - - . . - - ' . 2.738.592 Due from water district ' ' ' J88.837 ' . ' . � - - • 365.837 � , Invemories,et cost 39'/.092 - - 77.0)4 . _ ' . - .� _ 474,166 Prepaid items 3.609 2.418 - 62.OI5 - . - - 68,042 Fixcd essets . � . . � . � . (nc1,whac applicablc,of accumulated � � � depreciationl - - . - 18I.976,314 - . - - 75,744,382 257.720,696� Otherassets . ' ' 4,784,312 . 2.938.924 - _ . . . _ - 7.723,236 — Amo�mt nveilable for self insure�e � - - - - . _ . _ 2,056,548 - 2,056,548 Amwnttobeprovidedfor: !� '' � Accrued compcnsetcd abscnccs ' ' ' . � .. • ... ' . • 1,670.971 - 1.670,971 Retiremrnt of general long-tefm deM - - ' � -� ' ' , . ' S9,135.992 . 59.135.992 ± � Retirementofcepitelleasa ' ' ' ' ' - � ' ' 150,353 - I50,353 Trnalassetsa�aherdebits S 23.959,385 S 4,70�,404 5 6,I59.174 E� 2I4,572,264 S 952,314 E I,IBO,t86 E 828,934 �S 63.013,864 S 75,744,382 S 391.II1,907 I . . . � . . � . . � , � . . �F ' : . . . . 1 .. . . ' . . . 1'he notes to the fmancial statements are an integral part of this statement. Continued on facing page . II-1 Exhibit 1(con't) CITY OF BANGOR,MATNE All Fund Types and Account Groups Combined Balance Sheet June 30,2002 I Proprietery Fiduciary ' � Goverommtel Food Typee � Fund Type Funds .��oot Croope "" ' �, , Noo- �Ceoersl Totala - Specisl Cepital E:pendabte expenda6le Long-term Ceneral (Memorandvm � Generel Reveoue Projecte Enterprise TruA frusf Agency Debt Fited Aaseta Only) � � LIABtLIT1FS AND FUND EQUITY � - Liabilities: � . . � i Accounts payable $ 949,598 $ 66,678 E 358,868 S 1,933,270 S - $ � - S 102 S • S - S � 3,308,516 Accrued wages and benefits payable 3.113.536 - - � 228.814 - . - ' ' . - 3.342.350 '. Acwed intatst . . - 527,473 - .- ' ' - 527.473 ,"� . Acwedrnmpensatedabsrnca - ' ' 252,676 - - ' 1,670,971 - 1.923.647 � Workers'comprnsetion 607.890 - . 267.437 ' . - - . 2,056.548 - 2,931,875 ` ' � Deferred'evenue 1,671.095 4,352,937 - 141,293 - - � - • - 6,165,321 . � Amoumsheld(orothas - 62,793 - - - - 828,832 • - 891,625 InterPond loans payable - 123,500 , - 1,880,855 - • - ' • - 2,004,355 i � Bondsa�dnotespayable - - - 46,591,491 - - - 59,135,992 • 105,727,483 � Defem�emount on refu�ing - - - (340,554) - - - - - (340,554) . Capital leases payable ' - . . - ' . " ' ' 150,353 - 130.353 Othn liabilities - - - 509,054 - - - - 509,054 � � Totelliabilities 6,342,119 4,605,904 358,868 51,991,809 - - 828,934 63,013,864 - 127,141,498 Fund equity end otha c`edits � Coniributedcapital - - - 109,188,464 _ _ . _ - 109,168,464 Inveslment in general fixed assds - ' - • - • - ' 75,744.382 75."I44,382 Retained eamings � � - Raerved for. � , Capital expmditures - . - - I.644,305 - ' ' ' ' 1,644,305 Deb�smice - - - � 539,308 . - - - ' _ - 539,308 Unresaved - - - 51.208.378 ' - ' - . - SI.208.378 � Fund equity � Rawed for. � , � Encumbrsnces 920.391 15,621 1.178.094 - ' - - ' • - 2.114,106 Prepaid items 3.609 2.418 ' . ' ' ' ' ' ' 6,027 - � Loans ' ' ' ' ' ' 134,222 ' - ' 134,222 � Fiidowmrnts - - - - - 506,298 - - - 506,298 Nom.vircnt intcrfund advance 1,280,855 - - - - - -� - �- 1,280,855 ' Unrcsmed: . Designated 6,120.644 - 4,346,460� - . - - ' - ' 10.467,I04 Undesignated 9,29I.767 77,461 275,752 � - 952.314 539.666 - � - - II.I36,960 ' Total fund equity � � ar�d other credits 17,617,266� -95,500. 5,800,306 162,580,455 952,314 1,160,186 • - 75,744,382 263,970,409 -` r '�i Totalliebilities,Pondequityandothercredits S 23,959,385 S 4.701,404 S 6,159,174 $ 214,572,264 --E 952,314 5. 1,180,186 $ 828,934 S 63,013,864 S 75,741,382 S 39I,III,907 7'he notes to the financial statements are an integral part of this statement. Continued from previous page li-2 Ezhibit 2 CITY OF BANGOR,MAINE All Govemmental Fund Types and Expendable Trust Funds . Combined 5tatement of Revenues,Expenditures and Changes in Fund Equity � For the fiscal year ended June 30,2002 . Fidaciary � Governmental Fund Types Fund Type Totals , - Special Capitsl Expendable (Memorandum General Revenue Projects Trust Only) Revenues ' Ta�ces $ 40,499,774 $ - $ - $ - $ 40,499,774 Intergovemmental 23,229,919 3,665,419 1,040,510 - 27,935,848 - Licensesand permits 298,665 - - - 298,665 � i Charges for services 9,971,776 377,912 - - 1Q349,688 i Fines,forfeits,and penalties 28,009 - - - 28,009 Revenue from use of money and pmperty 1,361,477 - 240,545 38,626 1,640,648 Program income - 673,114 - - 673,114 Other - 15,459 44,880 18;259 98,598 Totalrevenues 75,389,620 4,731,904 1,325,935 56,885 81,504,344 � Expenditures � Current: General govemment 4,144,775 - - - 4,144,775 Public safety 10,793,402 - - - ]0,793,402 � Health,welfare and recreation 2,875,541 - - - 2,875,541 Public buildings and services 7,351,237 - - - 7,351;237 � Otheragencies 2,956,506 - - - 2,956,506 Education 40,820,241 - - - 40,820,241 Other appropriations 28,023,947 - - - 28,023,947 � Community development block grant - 1,268,681 - - . 1,268,681 � Othergrants - 3,190,375 - - 3,190,375 Payments to beneficiaries - - - 73,183 73,185 . Debt service(excluding education) 866,862 - 134,034 - 1,000,896 Capital outlay 605,012 - 8,101,542 - 8,706,554 Total expenditures 98,437,523 4,459,056 8,235,576 73,185 111,205,340. Excess(deficiency)ofrevenuesoverexpenditures (23,047,903) 272,848 (6,909,641) (16,300) (29,�00,996) O[her financing sources and(uses) Sale of assets 80,411 - - - 80,411 - f General obligation debt 28,358,611 - ]0,198,490 - 38,557,101 { Reallocation of general obligation debt - - (548,915): - (548,915) • Transfersto otherfunds (2,028,532) (12,704) (15,290) (193,541) (2,25Q067) - Tnnsfers from other funds 75,925 - 2,252,296 866,094 3,194,315 Operating transfers (1,157,883) - - - Q,157,883) Total other financing souroes(uses) 25,328,532 (12,704) 11,886,581 672,553 37,874,962 Excess(deficiency)of revenues and other financing sources over expenditures 2,280,629 260,144 4,976,940 . 656,253 8,173,966 Fund equity(deficit),1uly 1 15,336,637 (164,644) 823,366 . 296,061 16,291,420 Fund equity,June 30 $ 17,617,266 $ 95,500 $ 5,800,306 . $ 952,314 $ 24,465,386 " The notes to the financial statements are an integral part of this statement II-3 , , ` Exhibit 3 CITY OF BANGOR,IVIAINE ' General Fund i Statement of Revenues and Egpenditures and Changes in Undesignated Fund Balance-Budget and Actual-Budgetary Basis ., For the fiscal year ended June 30,2002 Original Final . Bodget Bodget* AMoel Variaoce Revenues Ta�ces $ 39,689,821 $ 39,688,821 ..$ : 40,499,774 $ 810,953 I � Intergovemmental 20,480.,877 20,067,733 19,580,491 (487,242) Licensesand permits 377,650 377,650 298,665 (78,985) Charges for services 8,272,880 7,806,458 9,755,012 1,948,554 Fines,fodeits,and penalfies 21,750 21,750 28,009 6,259 Revenue from use of money , and property 725,890 781,346 980,442 199,096 Total revenues 69,568,868 68,743,758 71,142,393 2,398,635 Expenditures Current: General govemment 5,167,106 4,044,680 3,818,335 226,345 � , Publicsafety 10,863,854 1Q880,251 10,802,401 77,850 Health,welfare and recreation 2,857,050 2,857,050 2,875,576 (18,526) Public buildings and services 7,869,133 7,879,133 7,359,810 519,323 Other agencies 2,942,373 2,958,373 2,953,707 4,666 Education 36,028,063 39,142,564 37,860,069 1,282,495 '�� Other appropriations 2,025,035 28,727,483 28,670,847 56,636 Debt service 893,992 893,992 866,860 27,132 Total expenditures 68,646,606 97,383,526 95,207,605 2,175,921 Excess(deficiency)of revenues over expenditures 922,262 (28,639,768) (24,065,212) 4,574,556 Other financing sources(uses) , Appropriation from designated fund balances 722,121 510,561 82,147 (428,414) Appropriation to designated fund balances (26,500) (26,500) (26,500) - ' Appropriation from undesignated fund balance - 1,046,335 - (1,046,335) General obligation bond proceeds - 28,358,611 28,358,611 - Sale of assets 15,000 27,222 50,629 23,407 Transfers ro other funds (525,000) (1,591,935) (1,591,935) - . Transfers from other funds . 50,000 50,000 45,035 (4,965) � ' Operating transfer (1,157,883) ' (1,157,883) (1,157,883) - , i Total other financing sources(uses) (922,262) 2Z,216,411 25,760,104 (1,456,307) �, Excess(deficiency)of revenues and other financing sources over expenditures and other financing uses $ - $ (1,423,357) 1,694,892 $ 3,118,249 Undesignated fund balance,July 1 7,870,265 Appropriation to designated fund balance 283,270 „ Balances carried from prior year 1,423,357 Balances carried ro succceding year (1,980,017) Undesignated fund balance,June 30 $ 9,291,767 '-Final Budget for Education includes$1,423,357 of balances carried from prior year The notes to the financial statements aze an integral part of this statement. ' II-4 Exhibit 4 CITY OF BANGOR,MAINE All Proprietary Fund Types and Similar Trust Funds Combined Statement of Revenues,Expenses and Changes in Retained Earnings/Fund Equity For the fiscal year ended June 30,2002 Proprietary Fiduciary Fund Type Fund Twe . Totals i Enterprise Nonexpendable (Memorandum Funds Trust Funds Only) i Operating revenues Charges for services $ 18,310,330 $ - $ 18,310,330 Interest ' - 35,517 35,517 ' Other - 3,450 3,450 � Total operating revenues 18,310,330 38,967 18,349,297 Openting expenses Operating expenses other than depreciation and amortization ]4,135,248 4,690 14,139,938 Depreciation and amortization on assets: , Acquired with own funds 3,849,871 - 3,849,871 Acquired with grants and contributions 4,349,667 - 4,349,667 Total operating expenses 22,334,786 4,690 22,339,476 ' Operating income(loss) (4,024,456) 34,277 (3,990,179) ' Nonoperating revenues(expenses): Interest income 1,717,41 I - 1,717,411 Unrealized gain on investments (1]6,690) - (116,690) � Interest expense (2,102,359) - (2,102,359) Grant monies received for capital assets 4,378,486 - 4,378,486 Miscellaneous income 250,717 - 250,717 Total nonoperating income(expense) 4,127,565 - 4,127,565 Net income(loss)before operating transfers ]03,109 34,277 137,386 � . Transfers to otherfunds (992,648) (48,000) (1,040;648) � Transfers from other funds 96,400 - 96,400 Operatingtransfer 1,157,883 - 1,157,883 �` Netincome(loss) 364,244 (13,723) 351,021 Add depreciation and amortiz8tion on£xed assets acquired with grants and contributions 4,349,667 - 4,349,667 Retained earnings/fund equity,July 1,(Restated Note H) 48,677,580 1,193,909 49,871,489 Retained earnings/fund equity,June 30 $ 53,391,991 $ . 1,18Q186 $ 54,572,177 e notes to e mancia statements are an integra part o is statement. II-5 , , _ ' EzWbit 5 CITY OF BANGOR,MAINE ' All Proprietary Fund Types and Similar Trust Funds �� Combined Statement of Cash Flows � � For the�scal year ended June 30,2002 ., ❑ Proprietary Fiduciary , ` Fund Type Fund Type Totals Enterprise Nonexpendable (Memorandum Fuods Trust Funds Only) Cash flows from operating activifies Cash received from customers $ 17,724,303 $ - $ 17,724,303 . Cash payments to suppliers for goods and services " (7,628,703) . (732) (7,629,435) Cash payments to employees for services (6,969,243) - (6,969,243) Other operadng cash receipts - 9,895 9,895 Other operating cash paymenLs - (51,958) (51,958) Net cash provided by(used in)operating activities 3,126,357 (42,795) 3,083,562 i Cash flows from noncapital financing activities Interfund loans (303,004) - (303,004) Transfers in 696,400 696,400 � Transfer out (992,648) - (992,648) Proceed of pension obligation bonds 5,671,389 - 5,671,389 Repayment to Maine State Retirement System (5,527,886) - (5,527,886) Operating transfers received 1,157,883 - 1,157,883 Net cash provided by noncapital financing activities 702,134 - 702,134 Cash flows from capital and related financing activities Proceeds from general obligation debt 2,226,340 - 2,226,340 Acquisitions and construction of capital assets (8,998,869) - (8,998,869) Principal paid on general and limited revenue obligation bonds (3,551,316) - (3,551,316) I - Interest paid on general and limited revenue obligation bonds (2,020,079) (2,020,079) - Proceeds from sale of equipment 348,176 - 348,176 ; Grant monies received for capital assets 3,866,750 - 3,866,750 Investment of bond proceeds 2,881,075 - 2,881,075 . _ Net cash used in capital and related financing activities. (5,247,923) - (5,247,923) Cash flows from investing activities Net sales(pumhases)of investments (2,266,907} 7,278 (2,259,629) . i Interest on investments 1,596,299 35,517 1,631,816 L,oans issued - , _ _ (,` Loanrepayments 1,932,404 � - 1,932,404 Net cash provided by invesfing activi6es 1,261,796 42,795 1,304,591 : Net decrease in cash (157,636). - (157,636) Cash and cash equivalents,JWy t 735,988 - 735,988 Cash and cash equivalents,June 30 • S 578,352 � ' - .$ 578,352. � Schedule of noncash investing,qpital and financing activites: � During the year,the AiTport Fund had an unrealized loss on investments in the amotint of$ll 6,690.. , } ' The notes to the financial statements are an integral part of ttvs statement. ' Continued on following page II-6 Exhibit 5(con't) CITY OF BANGOR,MAINE � � All Propriefary Fund Types and Similar Trust Fuads Combined Statement of Cash Flows For the fiscal year ended June 30,2002 F � Proprietary Fiduciary Fund Type Fund Type Totals Enterprise Nonexpendable (Memorandum Funds Trust Funds Only) Reconciliation of operadng income(loss)to net cash provided by(used in)operating activities Operating income(loss) $ (4,024,456) $ 34,277 $ (3,990,179) Adjustments ro reconcile operating income(loss)to net cash provided by(used in)operating activities Depreciaponandamortization 8,199,538 - 8,199,538 � i Allowance for uncollectible accounts 3,027 - 3,027 Presentation differences: Interest - (35,517) (35,517) Transfers,net - (48,000) (48,000) Smdent loan fund - 6,445 6,445 Changes in assets and liabilities: (Increase)decrease in accounts receivable (339,730) - (339,730) � (Increase)decrease in due from water district (295,342) - (295,342) , (Increase)decrease in inventories 18,684 - 18,684 (Increase)decrease in prepaid items 33,520 - 33,520 Increase(decrease)in accounts payable (4G1,072) - (461,072) Increase(decrease)in deferred revenue 49,045 49,045 Increase(decrease)in other current liabilities (56,857) - (56,857) � Totaladjushnents 7,150,813 (77,072) 7,073,741 I Net cash provided by(used in)operating activities $ 3,I26,357 $ (42,795) $ 3,083,562 i C'- � ' � � �1 , - _ � , The notes to the finaricial statements are an integral part of this statement. Continued from previous page II_,� INDEX OF NOTES TO FINANCIAL STATEMENTS � Summary of Significant Accounting Policies Note Pa�e 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 Information II— 13 B BudgedGAAP Reconciliatiori � II— 13 . C Excess of Expenditures Over Appropriations II— 14 . D Deficit Fund Equity � II— 15 � . _ _ - . �' - Detailed Notes on Al1 Funds and Account Groups A Deposits and Investments � TI— 15 B Property Tax' II— 16 C Interfund,`I'ransactioi�s II— 17 D Due From Other Governments JI— 17 E Fixed Assets � � ' . II—18 F Leases � � � lI— 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 �I—26 ' . ' � Other Information � A Risk Management - II—27 B Tax 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 Restatement of Beginning Retained Earnings II—32 � CITY OF BANGOR,MAINE Notes to Financial Statements June 30,2002 � 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 accounting entity with a self-balancing set of accounts. 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 current 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.,�vhen 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 liability 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 furid liabilities when expected to be II- 8 � CITY OF BANGOR,MAINE Notes to Financial Statements,Continued , - . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED Iiquidated with expendable available financial resources. Those revenues susceptible to accrual are property taxes and charges for services. Fines, licenses,and permits are not susceptible.to accrual because generally they are not measurable until received in cash. 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 for all or most of a City's general activities, including the � collection and disbursement of earmarked monies(special revenue funds)and the acquisition or 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 fund types: General Fund—The General Fund is the general operating fund of the City. It is used to account for all financial resources except those reyuired to be accounted for in another fund. Svecial 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 Projects Fund—The Capital Projects Fund is used to account for financia1 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 accounted 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 accbunt 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: II-9 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 oYher purposes. Fiduciary Funds are used to account for assets held on behaif 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�'unds account for assets where both the principal and interest ' may be expended. The funds are accounted for and reported as governmental funds. � A�encY Funds—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 using the modified accrual basis. 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 Groun—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 Grou�—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 Gity. State statutes authorize the Ciiy 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. These 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. � II- 10 , CTTY OF BANGOR,MAINE Notes to Financial Statements,ConNnued , 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 goup. The amount of interest incurred 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 rriaterially .- extend asset lives,also, are not capitalized. Proprietary Fixed Assets Property and eyuipment acquired by the City's enterprise funds are reported at cost or at estimated fair value at time of donation. Grants, entitlements and shared revenues received for the construction of sewer � lines and airport improvements are reported as nonoperating revenue. 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 sfraight-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 cornpute depreciation: Buildings. 25—40 years Equipment 5 .-20 years Pipelines and mains 100 years . Aircraft operational assets 5—40 years II- 11 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 licjuidated 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 recorded 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 liability. 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 accou.nted for in these funds. 7. Fund Equity Contributed capital is recorded in proprietary funds that have received capital grants ar contributions from - . developers, customers or other funds in prior years. 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 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 presenfed in the accornpanying 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. lI- l2 CITY OF BANGOR,MAINE Notes to Financial Statements,Gontinued , STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Budgets are prepared on a modified accrual basis of accounting,with the exception of depreciation within -� the enterprise funds. Budgets for the General Fund and enterprise funds are formally adopted each year _ through the passage of an appropriation resolve. Budgets for special reyenue 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 cunent 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 30`�', 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,only the one to appropriate $34 million of . pension obligation bond proceeds was considered material(refer to Note I.Long-Term Debt,of the Detailed Notes for a full description of the transaction). - Be Budget/GAAP Reconciliation The following schedule reconciles the General Fund amounts on the Statement of Revenues,Expenditures, and Changes in Unreserved/Undesignated 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 over expenditures and other financing sources and uses(budget) $ 1,694,892 ' _ Activity in designated fund balance 335,663 2002 encumbrances 920,391 , 2001 encumbrances lapsed (26,783) 2001 encumbrances paid �643,534) � � Excess of revenues and other financing sources over , expenditures and other uses(GAAP) 280 62 II- 13 CITY OF BANGOR,MAINE l�otes 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 $ (955,778) Airport (896,530) Park Woods 62,504 Parking (296,161) Bass Park (29,976) Municipal Golf Course (71,826) Economic Development 397.849 (1,789,918) Nonoperating revenues classification (3,205,l28) Investments at market value 116,690 Capital outlay I46,533 Capital projects (666) Cash basis to accrual basis adjustments (801,372) Principal payments 3,238,167 � � 2002 encumbrances 502,277 2001 encumbrances (2,373) Nonoperating expenses classification �;228,666� ° Operating loss $ 4-��) 1 C. Excess of Expenditures Over Appropriations General Fund The following departments were over=expended by the indicated dollar amounts; Council$642,Human Resources $2,457, Assessing$16,093, Fire $47,458, Health and Welfare$44,515,and Tax Increment Financing Payments $19,908: These over-expenditures were funded by receipt of revenues in excess of _ appropriation and under-expenditures within other General Fund departments. Parking Fund This fund was over-expended on a departmental basis by$48,637. The deficit is eliminated on a GAAP basis. ' II- 14 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued , � STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY, CONTINUED D. Deficit Fund Equity Community Development Slock Grant Fund The deficit of$150,967 will be funded in the subsequent years with increased collection of program - income. Enterprise Funds i Park Woods—The deficit of$2,537 represents a decrease 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$1,818,914 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 managerrient 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 f� At year-end,the City's carrying amount of deposits was$893,921 and the bank balance was$2,556,841. Of the bank balance, $2,274,058 was covered by federal depository and Travelers insurance or by collateral held by the City in its name,the remaining$282,783 was uninsured. _ Statutes authorize the City to invest in obligations of the U.S. Treasury,agencies and instrumentalities, repurchase agreements,corporate securities, financial institution stocks,and other stock investments. 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 department 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. II- 15 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 $30,085,340 - . $30,085,340. - State of Maine(agency bonds) 597,577 - 597,577 - Commercial paper - - - - 30,682,917 - 30,682,917 - Certificate of deposit 50,000 Mutual Funds(1) 19,633,881 - - - Total investments $ 50366.798 - $30.682.917 - (1) Mutual funds and the certif cate 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 nor are they included as deposits. , Due to higher cash flows at certain times during the year,the City's investment in U.S.Government and 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 $ 901,595 lnvestments 42,916,034 � Investment of bond proceeds(other assets) 7,450,764 51,268,393 Less: Pending items (7,674) 51.260.719 Carrying amount of deposits 893,921. Carrying amount of investments 50,366,798 Carrying amount of investments 51.260.719 B. Property Tax Property taxes for the cunent year were levied July 6,2001,on the assessed value listed as of the prior April 1 for all real and personal properly located in the City. Assessed values are periodically established by the City's Assessor at 100%of assumed market value. Taxes were du0 in two installments: September 17,2001 and March 15,2002. Interest was charged at 11.50%on all t�es unpaid as of the due date. Property taxes levied during the year were recorded as receivables at the time the levy was made. The receivables collected during the year and in the first sixty days following the end of the fiscal year have been recorded as revenues. The remaining receivables have been recorded as defened revenues. Tax liens are placed on real property within twelve month:s following the ta�c 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 unpa'id. II- 16 CITY OF BANGOR,iVIAINE 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 30,2002 were as follows: Receivable Pa,�� General Fund $ 1,880,855 $ - Economic Incentive Revolving Loan Fund 123,500 - Community Development Block Grant Fund - 65,500 Grant Fund - 58,000 Airport Fund - 600,000 ' Bass Park Fund - 1,280,855 $2.004.355 $2.004.355 v Individual fund transfers to and from other funds for the fiscal year ended June 30,2002 were as follows: Transfers to Transfer from General Fund $ 2,028,532 $ 75,925 ' Special Revenue Fund 12,704 - Capital Projects Fund 15,290 2,252,296 Expendable Trust Funds 193,541 866,094 Enterprise Funds 992,648 96,400 Nonexpendable Trust Funds 48,000 - 3.290.715 $3_290.715 D. Due From Other Governments Due from other governments is comprised of the following amounts at Jurie 30,2002: _ Federal State of � Government Maine Other Total � General Fund $ 22,259 $ 971,014 $ 2,769 $ 996,042 Special Revenue Funds 115,670 - � - 115,670 Capital Projects Fund . - 6,588 - . 6,588 Enterprise Funds 1,540,135 80,137 - 1,620,272 Of the General Fund's$971,014 due from State of Maine, $658,288 represents school grant and State agency billings,and$17,389 represents general assistance claims. II- 17 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 dur'ing the fiscal year: Transfers Capital Balance and project Balances June 30,2001 Additions deletions close-outs June 30 2002 Land,buildings, and construction in process: Land $ 5,198,491 $ - $ - $ - $ 5,198,491 . Schoolland 1,350,988 125,000 - - 1,475,988 Buildings 6,271,118 - - 401,872 6,672,990 School buildings 34,151,326 140,933 - 76,103 34,368,362 Construction in process 2,877;632 4,764,703 - (1,332,857) 6 309 478 Total land, buildings, and construction in process 49,849,555 5.030,636 - (854,882) 54 025 309 Equipment: Vehicles 8,999,473 - - 268,765 9,268,238 Machinery and equipment 5;931,527 22,699 - 586,117 6,540,343 � School other ___5,594,112 316,380 - - 5 910 492 � Total equipment 20,525,112 339,079 - 854,882 21,719 073 Total fixed assets 70.374.667 $5.369.715 $ - $ 75.744.382 The following is a summary of the proprietary fund type property,plant and equipment at June 30, 2002: Land $ ' 940,204 Buildings, plant and equipment 45,640,620 Pipelines and mains 40,205,852 Aircraft operational assets 196,557,322 Parking structures 9,774,544 Construction in process 7,717.444 300;835,986 Less: accumulated depreciation 118,859,672 181,976.314 In 2002,total proprietary fund type interest incurred was $2,102,359. Of that amount$2,102,359 was charged to operations during the year. Amounts committed for future construction expenditures approximated$1,788.,000 at.June 30,2002. Such amounts will.be funded by bond proceeds,approved federal and state grant monies and monies appropriated within the various funds. II- 18 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 2034,respectively. Minimum future rentals to be received on noncancelable leases as of June 30,2002 are: Fiscal year ending Economic June 30. Ai•r�ort Development 2003 $ 1,626,589 $ 394,862 2004 795,432 375,325 2005 787,631 324,756 2006 745�541 321,726 � 2007 659,435 . 321,726 Subsequent to 2007_ 7,324,291 2,572,976 11.938.919 $ 4.311.371 Minimum future rentals do not include contingent rentals,which may be received as stipulated in the lease contracts. The Airport received$1,174,781 in contingent rentals in fiscal year 2002. 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, 2002. I Fiscal year ending June 30, General Fund 2003 $ 84,168 2004 72,954 2005 3.491 Minimum lease payments 160,613 ' � Less: interest 10.260 Present value of minimum lease payments . 150 353 II- 19 ' CITY OF BANGOR,MAINE Notes to Financial Statements,Continued DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS,CONTINTJED G. Other Assets Other assets are comprised of the following: Cap'ital Enterprise Projects Fund Furid Investment of bond proceeds $4,784,312 $2,666,452 Deposits - 15,000 Operating rights(net of amortization) - 70,693 Bond issuance costs(net of amortization) - 186,779 Total 4.784312 �2.93:8.924 ' H. Deferred Revenue General Fund deferred revenue consists of$1,568,522 in deferred taaces and$102,573 of advance deposits. Special Revenue Funds deferred revenue of$4,352,933 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 $141,293 represents advance deposits. I. Long-Term De6t 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 30,2002: � Bonds and notes payable at June 30,2001 $60,737,428 Add: principal additions 45,754,915 Less: principal repayments 4.969.860 Bonds and notes payable at June 30,2002 101.522.483 1I-20 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued : DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS, CONTINUED Bonds and notes payable at June 30,2002 are comprised of the following:, Fiscal year Interest General Fund Enterprise Total of maturitv rate City School Funds June 30 2002 Long-term debt: Public improvements- 1988 2008 7.37%-8.60% $ - $ - $ 600,000$ 600,000 Treatment Plant 2011 7.00%7.10% - - 10,450,000 10,450,OOU Public improvements- 1992 2013 5.00%-5.30% 225,000 3,680,000 2,975,000 6,880,000 Public improvements- 1992 2003 4.75%-5.40% 35,000 . - - 35,000 Combined sewer overflow 2014 2.46% - - 1,118,400 1,118,400 Combinedseweroverflow 2014 2.45% - - 1,191,600 1,191,600 � Refunding bonds 201] 2.35%5.20% 270,891 2,383,185 5,875,924 8,530,000 Public improvements- 1996 2016 5.05%-5.85% 61Q000 - - 610,000 Combined sewer overtlow 2017 � 3.52% - - 2,341,261 2,341,261 Tax increment financing note* 2016 6.00%6.90% 840,000 - - 840,000 � Public improvements-1996 2017 5.35%-6.50% 1,235,000 - - 1,235,000 Combined sewer overflow 2018 3.03% - - 2;040,781 2,040,781 Public improvements-1997 2018 4.8'IS%-5.3% 2,863,150 3,030,000 1,461,850 7,355,000 Tax increroent financing note* 2018 6.19% 258,000 - - 258,000 _ Public improvement- 1999 2019 4.20% 1,505,200 80,000 1,284,800 2,870,000 Maine Business Enter Pazk 2018 5.00% - - 225,978 225,978 Waterfront note* 2004 6.00% - - 229,808 229,808 Public improvements-2000 2020 5.25%-5.90% 1,398,725 - I,471,275 2,870,000 Publicimprovements-2001 2021 4.25%-5.00% 1,377,000 276,000 3,922,000 5,575,000 State Revolving Renovation-School 2011 0.00% - 511,740 - 511,740 _ Public improvements note* 2012 6.25% 699,915 - - 699,915 Public improvements-2002 2022 3.50%-4.75% 4,998,575 4,500,000 1,526,425 11,025,000 Pension obligation bonds 2026 3.06%-6.45% 26,667.467 1,691,144 5,671.389 34,030.000 Total bonds and notes payable 42.983.923 �16:152.069 �42386.491 P101 S�2 48 *Four series of general obligation notes aggregating$2,027,723 are held by the City's Airport Fund at fixed,ta�cable 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. Annual debt service requirements to maturity for general obligation bonds and notes payable are as follows: Fiscal year ending June 30, Principal Interest Total , 2003 $ 5,012,387 $ 5,242,721 $ 10,255,108 2004 5,307,995 4,894,252 10,202,247 2005 5,182,305 4,661,270 9,843,575 2006 5,275,841 4,432,598 9,708,439 2007 5,389,797 4,193,2i 1 9,583,008 2008-2012 26,830,799 17,265,936 44,096,735 2013-2017 19,136,704 11,808,788 30,945,492 2018-2022 16,131,G55 7,092,573 23,224,228 2023-2027 13,255.000 2,239,440 15.494 440 Total 101,522.483 $61.830.789 $163353:272 � II-21 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 30,2002,the statutory limit for the City was $240,937,500. The City's outstanding long-term debt of$101;522,483 at June 30,2002 was within the statutory limit. Pension Obligation Bonds Until June 30, 1997,the City participated in the Maine State Retirement System(MSRS), as a participating local district. The City's initial unfunded unpooled actuarial liability(I[J[JAL)was calculated as of the transition date of July 1, 1997. The IUUAL was being amortized over a period of twenty-eight years, at an interest rate of 8%and was recorded in the General Long-Term Debt Account Group. In March 2002,the City issued general obligation debt in the amount of$34,030,000 to extinguish it's IIJLIAL with MSRS, resulting in savings of$8,218,570 over the life of the debt. ' Revenue Bonds ' Revenue bonds are where income derived frorn the acquired or constructed asset is pledged to pay debt service. Bangor International Airport(Airport Fund)has$4,205,000 of limited obligation revenue bonds outstanding at June 30,2002, the proceeds of which were used to finance expansion of the terminal. The interest rate varies from 5.00%to 6.70%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, 2002: Limited obligation revenue bonds at 7une 30,2001 $4,465,000 � Less: principal repayments � 260,000 Limited obligation revenue bonds at June 30, 2002 4 5 000 Annual debt service requirements to maturity for limited obligation revenue bonds are as follows: Fiscal year ending June 30, Principal Interest Total 2003 $ 275,000 $ 263,789 $ 538,789 2004 290,000 247,045 537,045 2005 310,OOU 228,890 538,890 2006 330,000 208,958 538,958 2007 350,000 187,368 537,368 . 2008-2012 2,130,000 549,760 2,679,760 2013 520,000 17,420 537,420 Total 4.205.000 $ 1.703.230 $5.908.230 II-22 , 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, 2002, $2,555,400 and$5,624,600 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, 2002: ' Percentage Debt Applicable City's share Unit outstandin�; . to the Citv of debt General obligation bonds $101,522,483 100.00% $101,522,483 Limited obligation revenue debt 4,205,000 100.00% 4,205,000 Penobscot County 1 275 000 23.87% 304 343 107..002.483 $106.031.826 This results in a ratio of City debt to April 1,2001 assessed valuation of 632%and a ratio of overlapping debt to April 1, 2001 valuation of 6..68%. Changes in Long-term Liabilities During the year ended June 30,2002,the following changes occurred in liabilities reported in the General Long-term Debt Account: - Balance Balance June 30,2001 Additions Reductions June 30,2002 General obligation debt $22,806,350 $38,557,101 $ 2,227,459* $ 59,135,992 Obligations under capital leases 223,910 - 73,557 150,353 Accrued compensated absences 1,528,757 1,002,745. 860,531 1,670,971 Unfunded actuarial liability ` 31,782,408 - 31;782,408 - Long-term obligation for self insurance _. 2 263;613 574,887 781,952 2,056.548 58,605.038 $40.134.733 $35.725.907 $63.013.864 * Reductions include$548,915 of reallocated unexpended general obligation debt,which is now included within the Sewer Utility Enferprise Fund. II-23 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 30,200i $ 113,538,128 Less: depreciation 4,349,667 Contributed capital at June 30,2002 109.188.461 K. Nonexpendable and Expendable Trust Fund Balances As of June 30, 2002,the balances of nonexpendable and expendable trust fund balances were as follows: Unexpended Principal income , Nonexpendable: Cemetery: Perpetual Care $357,115 $ 123,743 Parks: Bass Park - 146,364 Arthur Chapin 14,538 6,602 City Missionary: Hiram Fogg 1,000 4,908 Louis& Sophia Kirstein 500 3,217 Hiram Oliver 2,000 9,803 Penobscot Association for the Blind 11 11 Lorenzo Sabine 1,000 2,848 Stetson 12,000 27,827 Education: Bangor High School 200 2,169 French Medal 35,738 39,037 Holton Public School 2,000 3,617 Kirstein Scholarship _ S,UOU 8,661 A.E. Webber,Jr. 1,200 (237) Aid for Aged Women: Charles Adams 10,000 12,586 Thomas Upham Coe 3,000 3,775 Anna H. Pierce ' 4,000 5,033 Annie Stetson 5,067 6;226 George Stodder 11,000 13;844 Wakefield 10;000 17,992 Other Funds: Dorothea Miller 507 753 - Bangor Fireman's Relief 7,639 2,440 II-24 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 2,791 Arthur Morey 1,013 7,172 Melvin Murch 5,733 25,789 O'Connell Trust 1,000 10,199 Twitchell Trust - 211 Flora Seavey 1;500 2,248 Charlotte Hall 5,984 29,039 Pfaff Trust 811 3,118 Porter-Pulsifer 5,000 17,364 Jewish War Veterans 758 SU4 Norton Griffin 477 12 Revolving Loan: Sophia Kirstein Student Loan 134,222 - . Total nonexpendable trusts 640.520 $ 539.666 Expendable: Dental Clinic $ 80,183 $ 17,845 Preservation of Records 38 84 Adopt a Park 60,948 9.,213 Park Woods Children 664 108 City Forest 51,409 6,707 BFD Imaging 2,011 608 Park Woods Complex 701,169 7,199 USS Maine Monument 11,449 1,025 Kenduskeag Stream Trail 835 275 Tricentennial 529 15 Total expendable trusts 909.235 $ 43.079 II-25 CTTY OF BANGOR;MAINE Notes to Financ'ial 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 30,2002 2002 2001 Departmental balances carried forward $ 71,605 $ - School department-regular 1,462,834 991,402 adult education 78,154 55,622 reading assessment 18,516. 14,540 special revenue 151,089 179,655 school lunch 103,187 102,048 trust and agency 94,632 80,090 Total balances carried 1,980,017 1,423,357 Accrued summer teacher payroll (2,204,176) (2,077,423) Pooled equipment 1,054,765 915,341 Bus equipment 109,856 86,910 Fire equipment 2,053 44,689 Improvement 560,860 590,996 Self insurance 2,056,548 2,263,613 Cameron stadium 113,719 110,394 Landfill closure 81,458 79,076 Cascade park maintenance 26,266 12,482 Demolition 1,214 1,178 PEG capital support 25,489 38,093 Pickering Square development district 103,161 101,762 MSRS Consolidated Plan 551,500 525,000 Parks& Rec Improvement 1,723 64,539 Bangor Nursing&Rehabilitation Center-line of credit 400,000 400,000 Amounts due from Bangor Nursing&Rehabilitation Center 369,631 369,631 Pension obligation bond savings . 678,261 - Arbitrage rebate-General Fund 32,443 31,495 School department 175,856 170,715 Total General Fund designated fund balance 6.120.644 $5.151.848 Capital Fund � Designated fund balance represents amounts that have been appropriated by council autliorization to finance completion of specific capital projects. II-26 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued OTHER 1NFORMATION 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 cunently reports all of its risk management activities in the General and Enterprise Funds. Claims expenditure, tiabilities 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 30,2002, 2001 and 2000. 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, 2002,the amount of self-insurance liabilities was$2,931,875. This liability is the City's best estimate based on available information. Changes in the reported liabilities since July 1, 2000 resulted from the following: Workers' All other self- Compensatior� insured risks Total Unpaid claims as of July 1, 2000 $ 3,016,960 $35,644 $3,052,604 Incuned claims 217,062 - 217,062 Payments (360,698) - (360,698) Changes in estimates and other adjustments 199.820 152 199,972 Unpaid claims as ofJuly 1,2001 3,073,144 35,796 3,108,940 Incurred claims 195,957 - 195,957 Payments (388,813) (19,584) (408,397} Changes in estimates and other adjustments 34,612 763 35375 Unpaid claims as of June 30,2002 _ $ 2.914.900 $ 16.975 $2.931.875. Comprised of Current obligations of the General Fund $ 607,890 $ - $ 607,890 Enterprise funds 267,437 - 267,437 General Long-term Debt Account Group 2,039,573 16,975 2,056,548 Total 2.914.900 $ 16.975 �2.931.875 II-27 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued OTHER INFORMATION,CONTINUED B. Tax Increment Financing Districts The City has established tax inerement 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 extraordinary costs of acquisition and environmental remediation of the former Gasworks site on Main Street,ultimately to provide land area necessary for the construction of a 54,000 square foot supermarket in a Community Development project area. Pickering Square Ivlm�icipal Development District—Assisted Realty Resources CharteTed in a major redevelopment project converted the former Freese's department store building into affordable housing units. C. Segment Information—Enterprise Funds There are seven services provided by the City which are financed by user charges; Sewer Utility,Airport, Park Woods,Parking, Bass Park,Municipal Golf Course and Economic Development. Selected segment information for the year ended June 30,2002: Sewer Park Bass MuniCipal . Economie Utili Ai ort Woods Pazkine Park GolfCourse Develonment Total Operating revenues $6,377,148 $8,695,872 $292,930 $723,818 $1,327,040 $ 618,272 $ 275,250 $18,310,330 Depreciation expense* 1,521,685 5,805,600 89,402 391,016 233,713 120,291 37,831 8,199,538 Operating income(loss) 1,904,325 (5,333,062) (130,635) (137,528) (505,157) 16,594 161,007 (4,024,456) Operating transfers(out) (100,000) (4,654) - - • - (21,900) (866,094) (992,648) Net Income(loss) 1,880,068 (1,237,737) (5,145) . 136,315 (7,924) 21,345 (422,178) 364,744 Curzent capital contributions 1,259,436 3,119,050 - - - - - 4,378,486 Fixed asset additions 2,017,284 3,902,104 - 2,644,848 1,208 96,638 336,787 8,998,869 Net working capital 2,140,917 5,027,323 23,923 (331,409) (1,444,322) 536,137 144,162 6,096,731 Total assets 64,922,018 135,101,284 1,654,885 6,195,629 1,757,304 1,839,843 3,101,301 214,572,264 Bonds payable 30,369,205 8,083,812 -- 5,907,641 1,680,J89 ' 94,859 455,785 46,591,491 Total equity 33,500,871 124,483,805 1,445,582 203,336 (1,379,422) 1,709,455 2,616,828 162,580,455 *Includes depreciation and amortization of$4,349,667 on assets acquired with grants and contributions. II-28 CITY OF BANGOR,MAINE ' Notes to Financial Statem,ents,Continued OTHER 1NFORMATION,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 parties. 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 January 2003,although the design and implementation phases will probably continue for several years. At this point it is not possible to estimate the cost of designing and implementing the final remedy. In l 999,the City began investigating the extent and impact of contaminatiori of a certain area of the Penobscot River bottom. In addition,the City h�s been exainining the potential`sources of the contamination in order to identify potentially re5ponsible 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 deter►ninable, 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 wi11 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 ICMf1/RC. In addition certain full-time employees are covered through both a 401 (a)and 457 Deferred Compensation Plans(DCP)also adininistered 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,g PolicX—Plan members not covered by employment contracts'are required to contribute 6:5%of their annual covered salary and the City is required to contribute either 8%or 10%depending upon the employee's classification. For fiscal year 2002 covered payroll was$5,127,932 and City contributions were $439,677. For those plan members.that have employment contracts,the City contributes at various rates from 10%- 15%of annual earnings. The covered payroll and City contributions for those employees with employment contracts approximated $508,662 and $55,429 respectively, in fiscal year 2002. II-29 CITY OF BANGOR,MAINE Notes,to Financial Statements,:.Gontinued OTHER INFORMATION, CONTINUED Defined Benefit Pension Plan Descri�tion 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. Funding Policy—Plan members are required to contribute 6.5%of their annual covered salary and the City is reyuired 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 30,2002,2001 and 2000 were $693,220, $846,4]5 and $981,064, 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 IWAL 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 was wholly defeased through the issuance of $34,030,000 in pension obligation bonds during fiscal year 2002. Teachers Group Description of the Plan-All school teachers,plus other yualifiecl 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. Fundin�icv—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$3,649,428(18.93%)for the fiscal year 2002. This amount has been reported as an intergovernmental revenue and education expenditure in the GAAP basis financial statements(Exhibit 2). There is no contribution required by the school department except for federally funded teachers,for which they contributed 18.93%of their compensation. This cost is charged to the applicable grant. II -30 CITY OF BANGOR,MAINE . Notes to Financial Statements,Continued OTHER INFORMATION, CONTINUED 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 (1RC) 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 ernployees. 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 tfie 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 August 2002,the City authorized the issuance of up to$3,000,000 in general obligation bonds. Proceeds will be used to fund various combined sewer overflow 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 30,2002,this balance exceeded the City policy.of 7.5%by$4,270,597. 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; $1,000,000 of additional funding to further the environmental assessment of the Penobscot river as well as potential legal costs, $350,000 to purchase land adjacent to the Bass Park Complex, $I00,000 to fund additional costs incurred by the City to host the Little League World Series and National Folk Festival and$40,000 each for new bridge lighting and in support of the Bangar Museum and Center for History. II-31 CITY OF BANGOR,MAINE Notes to Financial Statements,Continued OTHER INFORMATION, CONTINUED H. Restatement of Beginning Retained Earnings In prior years,the City's Maine State Retirement System(MSRS) initial unfunded unpooled actuarial liability(IUUAL)was recorded in the General Long-Term Debt Account Group. In March 2002,the City issued pension obligation bonds to defease the ILJUAL. At the time of issuance,a calculatiori was made to determine the proportionate share of the NUAL by fund. As a result of that computation, beginning retained earnings for a majority of the enterprise funds have been restated to reflect the amount of IUUAL liability that existed at June 30,2001. This restatement results in a decrease to beginning retained earnings in the following amounts, Sewer Utility- $1,016,314, Airport-$3,780,666,Parking-$174,112,Bass Park- $464,335,and Municipal Golf Course-$92,458,totaling$5,527,885. II-32 i _ _ . 1 � . -. 1 � Ge�eral Fund The General Fund is used to account for resources traditionally associated with the government, which are not:required lega(ly or by sound financial management,to be accounted for in another :, fund. Schedule A-1 CITY OF BANGOR,MAINE General Fund Comparative Balance Sheet June 30,2002 and 2001 . 2002 2001 ASSETS Cash $ 3,126 $ 34,500 Investments 17,565,945 15,093,748 Receivables: Taxes 1,786,585 2,258,958 Accounts(net of allowance of$275,379 1,326,131 . 1,293,678 and$276,139,respectively) Interfund loans 1,880,855 1,954,995 Intergovernmental 996,042 1,143,129 Inventory,at cost 397,092 353,391 Prepaid items � 3,609 63,837 Total assets $ 23,959,385 $ 22,196,236 LIABILITIES AND FUND EQUITY Liabilities Accounts payable $ 949,598 $ 930,983 Accrued wages and benefits payable 3,113,536 3,108,504 Workers'compensation 607,890 607,890 Deferred revenue 1,671,095 2,212,222 Total liabilities 6,342,119 6,859,599 Fund equity � Reserved for: Encumbrances 920,391 670,318 Prepaid items 3,609 63,837 Noncurrent interfund advance 1,280,855 1,580,369 Unreserved: Designated 6,120,644 5,151,848 Undesignated 9,291,767 7,870,265 Total fund equity 17,617,266 15,336,637 Total liabilities and fund equity $ 23,959,385 $ 22,196,236 . 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 30,2002 Batances Variance Carried 7/1/Ol Budget Actual Surplus Carried Revenues Ta�ces Real and personal property $ - $ 36,508,358 $ 36,461,871 $ (46,487) $ - Change in deferred property tax - - 474,933 474,933 - Tax increment financing district - (807,537) (810,369) (2,832) - Payment in lieu of taxes - 135,000 135,000 - - Excise - 3,578,000 3,935,924 357,924 - Interest on delinquent ta�ces - 275,000 , 302,415 27,415 - Total taxes - 39,688,821 40,499,774 810,953 - Intergovemmental , State revenue shazing - 3,500,000 3,198,538 (301,462) - School subsidy - 10,780,066 10,914,721 - 134,655 Other- municipal - 1,897,068 1,899,458 2,390 - school - 3,890,599 3,567,774 - (322,825) Total intergovernmental - 2Q067,733 19,580,491 (299,072) (188,170) Otherrevenue Licenses and permits - 377,650 298,665 (78,985) - Chazges for service- municipal - 5,432,11,9 6,187,151 755,032 - school ' - 2,374,339 3,567,861 - 1,193,522 Fines,forfeits and penalties . - 21,750 28,009 6,259 - Revenue from use of money and property- municipal - 781,346 931,463 150,117 - school - - 48,979 - 48,979 _ Total other . - 8,987,204 11,062,128. 832,423 1,242,501 Total revenues - 68,743,758 71,142,393 1,344,304 1,054,331 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 fiscal year ended June 30,2002 Balances Variance Cacried 7/1/Ol Budget Actual Surplus Carried Expenditures General government Council - 45,211 45,853 (642) - Executive - 740,434 623,921 116,513 - Human resources - 112,192 114,649 (2,457) - City Clerk - 350,567 340,510 10,057 - Assessing - 283,142 299,235 (16,093) - Legal - 235,269 235,260 9 - Finance - 1,267,897 1,231,241 36,656 - Insurance - 88,401 81,805 6,596 - Planning,econ dev,code enforcement - 921,567 845,861 25,706 50,000 Total general government - 4,044,680 3,818,335 176,345 50,000 Public safety Police - 5,3Z6,084 5,200,776 1�5,308 - Fire - 5,554,167 5,601,625 (47,458) - Total public safety - 10,880,251 10,802,401 77,850 - Health,welfare and recreation Health and welfare - 1,777,589 1,822,104 (44,515) - Pazks and recreation - 1,079,461 1,053,472 25,989 - Total health,welfare and recreation - 2,857,050 2,875,576: (18,526) - Public buildings and services - 7,879,133 7,359,810 519,323 - 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 30,2002 Balances Variance Carried 7/1/01 Budget Actuat Surplus Carried Expenditures,continued Other agencies County tax - 1,466,595 1,466,595 - - Private school services - 160,807 157,443 3,364 - Downtown Development District - 42,597 42,597 - - Public.library - 1,15,3,072, 1,153,072 - - Other agencies - 135,302 134,000 1,302 - Total other agencies - 2,958,373 2,953,707 4,666 - Education Regular 991,402 33,043,855 32,647,565 - 1,387,692 Adult education 55,622 527,682 567,171 - 16,133 Schoollunch 102,048 1,073,978 1,070,246 - 105,780 Reading assessment 14,540 45,000 4,224 - 55,316 Special revenue 179,655 1,369,606 1,816,569 - (267,308) Tr�st and agency 80,090 1,659,086 1,754,294 - (15,118) Total education 1,423,357 37,719,207 37,860,069 - 1,282,495 Other appropriations _ Pensions and other fringe benefits - 28,418,628 .28,370,784 47,844 - Debt service - 893,992 866,860 27,132 - Ta�c increment financing payments - 280,155 300,063 (19,908) - Contingency - 28,700 - 7,095 21,605 Totalotherappropriations - 29,621,475 29,537,707 62,163 21,605 Total expenditures 1,423,357 95,960,169 95,207,605 821,821 1,354,100 , Excess(deficiency)of revenues over expenditures (1,423,357) (27,216,411) (24,065,212) 2,166,125 2,408,431 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 30,2002 Balances Variance Carried 7/1/Ol Budget Actual Surplus Carried Other financing sources(uses) Appropriaton from designated fund balance - 510,561 82,147 - (428,414) Appropriaton to designated fund balance - (26,500) (26,500) - _ Appropriation from undesignated fund balance - 1,046,335 - (1,046,335) - General obligation bond proceeds - 28,358,611 28,358,611 - _ Sale of assets - 27,222 50,629 23,407 - Transfers to other funds - (1,591,935) (1,591,935) - _ Transfers from other funds - 50,000 45,035 (4,965) - Operating transfers - (1,157,883) (1,157,883) - _ Total other financing sources(uses) - 27,216,411 25,760,104 (1,027,893) (428,414) Excess(deficiency)of revenues over expenditures and other financing sources and uses $ (1,423,357) $ - $ 1,694,892 1,138,232 $ 1,980,017 Undesignated fund balance,July 1 7;870,265 Appropriation from designated fund balance 283,270 Undesignated fund balance,June 30 $ 9,291,767 Continued from previous pages . II-37 r� � � ,,.-:• � > > Special Revenue Funds Special RevenUe�'unds 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 Commurrity Development Act of 1974,as amended,for the development of viable urban communities. . • Urban Development Acfiori 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 coinmercial core of the City. . Economic IncenHve Revolving Loan Fund—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. Department of Housing and Urban Development Community Development Block Grant program. Grant Fund—Accounts for federai.and state grants that are legally restricted to expenditures allowable by the grantor agency. - . Schedule B-1 CITY OF BANGOR,MAINE Special Revenue Funds Combining Balance Sheet June 30,2002 (with comparative totals for June 30,2001) Economic Community Urban Incentive Developmeut Development Revolving Grant Totals Block Grant Action Grant Loan Fund Fund 2002 2001 ASSETS Cash $ 298 $ 7,528 $ 97,055 $ 858 $ 105,739 $ 190,212 Receivables: Accounts - - - 1,144 1,144 1,199 Loans(net of allowance of$130,131) 3,233,481 985,000 134,452 - 4,352,933 4,534,841 Interfundloans . - - 123,500 - 123,500 - Intergovernmental - - - 115,670 115,670 111,461 Prepaid items 2,418 - - - 2,418 13,745 Total assets $ 3,236,197 $ 992,528 $ 355,007 $ 117,672 $ 4,701,404 $ 4,851,458 LIABILITIES AND FUND EQUITY Liabilities Accountspayable $ 25,390 $ - $ - $ 41,288 $ 66,678 $ 43,921 Deferred revenue 3,233,481 985,000 134,452 - 4,352,933 4,534,841 Due to rehabilitaiton recipients 62,793 - - - 62,793 64,688 Interfund loans payable 65,500 - - 58,000 123,500 372,652 Total liabilities 3,387,164 985,000 134,452 99,288 4,605,904 5,016,102 Fund equity Reserved for: Encumbrances 8,661 - - 6,960 15,621 168,209 Prepaid items 2,418 - . - - 2,418 13,745 Unreserved: Undesignated (162,046) 7,528 220,555 11,424 77,461 (346,598) Total fund equity(deficit) (150,967) '7,528 220,555 18,384 95,500 (164,644) Total liabilities and fund equit $ 3,236,197. $ 992,528 $ 355,007 $ 117,672 . $ 4,701,404 $ 4,851,458 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 30,2002 Economic Community Urban Incentive Development Development Revolving Grant Block Grant Action Grant Loan Fund Fund Total Revenues Intergovernmental $ 818,215 $ - $ - $ 2,847,204 $ 3,665,419 Charges for services - - - 377,912 377,912 Program income 638,237 - 34,877 - 673,114 Other 4,352 415 10,692 - 15,459 Totalrevenues 1,460,804 415 45,569 3,225,116 4,731,904 Expenditures Acquisition of real property 978 - - - 978 Public works facilities site improvements 413,548 - - - 413,548 Business development assistance 10,565 - - - 10,565 Disposition of real property 84,146 - - - 84,146 Administration 237,069 - - - 237,069 Rehabilitation and preservation activities 372,254 - - - 372,254 Planning ]7,695 - - - 17,695 Clearance activities 31,654 - - - 31,654 Relocation 40,285 - - - 40,285 Personnel - - - 383,657 383,657 Equipment - - - 25,983 25,983 Other 60,487 - 8,102 1,859,750 1,928,339 Bus operations - - - . 912,883 912,883 Total expenditures 1,268,681 - 8,102 3,182,273 4,459,056 Excess(deficiency)of revenues overexpenditures 192,123 415 37,467 42,843 272,848_ Other financing sources(uses) . Transfers to other funds (12,704) - - . - (12,704) Transfers from other funds - - - - - Total other financing uses (12,704) - - - (12,704) Excess(deficiency)of revenues over expenditures and other financing sources and uses 179,419 415 37,467 42,843 260,144 Fund equity(deficit),July 1 (330,386) 7,113 183,088 (24,459) (164,644) Fund equity(deficit),June 30 $ (150,967) $ 7,528 $ 220,555 $ . 18,384 $ 95,500 II-39 �i, , \ l��IJ <; �`.. .. � � - . f . . ti��. . '� _. /. .. . . . \ - .. _ - . , , . _ r,. .. � � . . � � . _ . . . � ' � �:.,�� , � a' . .. - ' - - . .. �``��:-'�`,- "� �.� 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. s:: . `�`, . t. ; , . _ _ , t� �� ' . ��', �. { � � 114{ . . . .'. � � . ... � � � � f, - '� � � � � � �, . � � ` \ ... , : - , Schedule Gl CITY OF BANGOR,MAINE Capital Projects Fund Comparative Balance Sheet June 30,2002 and 2001 2002 2001 ASSETS Cash $ 199,883 $ 413,685 Investments 1,130,151 - Receivables: Accounts 8,110 25,000 Deferred special assessments 30,130 30,130 Intergovernmental 6,588 891,922 Investment of bond proceeds 4,784,312 4,020,769 Totai assets $ 6,159,174 $ 5,381,506 LIABILITIES AND FUND EQUITY Liabilities Accounts payable $ 358,868 $ 558,140 Bond anticipation note - 4,000,000 Totalliabilities 358,868 4,558,140 Fund equity Reserved for encumbrances 1,178,094 284,508 Unreserved: Designated 4,346,460 288,381 Undesignated: Deferred special assessments 30,130 30,130 Future construction-General Fund 103,912 96,367 ' Future construction-School department 141,710 123,980 Total fund equity 5,800,306 823,366 Total liabilities and fund equity $ 6,159,174 $ 5,381,506 II-40 Schedule C-2 CITY OF BANGOR,MAINE Capital Projects Fund Statement of Revenues,Expenditures,and Changes in Fund.Equity For the fiscal year ended June 30,2002 Revenues Intergovernmental $ 1,040,510 Revenue from use of money and properly + 240,545 Other 44,880 Total revenues 1,325,935 Expenditures Capital additions 8,101,542 Debt service 134,034 Total expenditures 8,235,576 Deficiency of revenues over expenditures (6,909,641) Other financing sources(uses) General obligation debt 10,198,490 Reallocation of general obligation debt (548,915) Transfers to other funds (15,290) Transfers from other funds 2,252,296 Total other financing sources 11,886,581 Excess of revenues over expenditures and other financing sources 4,976,940 Fund equity,July 1 823,366 Fund equity,June 30 $ 5,800,306 ' II-41 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 fhe 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 us�of terminal space and non-aviation industrial buildings. Park Woods—This fund accounts for the rental of 60 units of surplus housing received from the federal government pursuant to the 1VIcKinney Homeless Assistance Act. The principal source of revenue is rental income. � � Parking Fund—This fund accounts for the operation of fhe City-owned parking lots and the Pickering Square garage. Revenue sources iriclude monthly lease payments for parking spaces, hourly/daily parking fees,and fines and waiver fees for parking violations. Certain of these facilities are operated under a private management contract. Bass Park Fund—This fund accounts for the operation of the Bangor auditorium,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. Schedule D-1 CITY OF BANGOR,MAINE Enterprise Funds Combining Balance S6eef June 30,2002 (with comparative totals for June 30,2001) Sewer Bass Munkipal Etonomic Utility Airport Park Parking Park Goit Development Total Fund Fund Woods Fund Fnnd Course Food 2002 2001 ASSETS Cutrent assets � � � � � Cash $ 54,203 $ 7,008 $ 39,197 S 199,850 $ 14,524 $ 87,311 $ 176,259 S 578,352 $ 735,988 Investments 2,969,865 4,270,950 968 115,420 - 484,611 62,124 �,903,938 8,295,127 Accounts Receirable 1,614,924 2,245,494 - 7,979 75,537 - - 3,943,934 3,604,204 Lessallowanceforuncollectibleaccounts (22,601) (110,733) - (4,790) (27,110) - - (]65,234) (162,207) Netaccountsreceivable 1,592,323 2,134,761 - 3,189 48,427 - - 3,778,700 3,441,997 Interfund loansreceivable - - - - - - � - - - Due from other govemments 389,917 1,230,355 - - - - - 1,620,272 1,108,535 Due from water district 388,837 - - - - - - 388,837 93,495 lnventories,at cost - 67,836 - - 9,238 - - 77,074 95,758 Prepaid items 3,879 33,926 - - 24,210 - - 62,015 95,535 Total current assets 5,399,024 7,744,836 40,165 318,459 96,399 571,922 238,383 14,409,188 13,866,435 Properiy Land 683,865 - � � - - 228,572 27,767 - 940,204 940,304 Buildings,plant and equipmem 32,321,234 - 2�55,724 - 6,146,]89 2,022,063 2,895,410 45,640,620 44,957,349 Pipelines and mains 40,205,852 - - - - - - 40,205,852 39,548,647 Aircrafl operational assets - 196,557,322 - - - - - 196,557,322 192,068,635 Parkingshuctures - - - 9,774,544 - - - 9,774,544 6,901,752 Conshvction in process 5,857,257 1,860,187 - - - • - - 7,717.444 6.998,870 79,068,208 198,417,509 2,255,724 9,774,544 6,374,761 2,049,830 2,895,410 300,835,986 291,415,457 Less accumulated depreciation (22,367,003) (85,926,433) (656,004) (4,222,009) (4,735,094) (781,909) (171,220) (118,859,672) Q 10,735,616) Netproperty,plantandequipment 56,70I,205 ll2,491,076 . 1,599,720 5,552,535 1,639,667 1,267,921 2,724,190 181,976,314 180,679,841 - � Other assets Inveshnents - 13,396,360 - - - - - 13,396,360 11,784,810 Loansreceivable ],011,000 612,392 - - - - - 138,728 1,762,120 3,683,609 Deferred special assessments � 89,358 - - - - - - 89,358 91,489 Investmem of bond proceeds 1,534,652 785,927 - 324,635 21,238 - - 2,666,452 4,651,980 Deposits - - 15,000 - - - - 15,000 15,000 Operating rigMs(net of accumulated amortization of$1,329,307 in 2002 and . $1,182,177 in 2001) - 70,693 ' - - - - - 70,693 117,823 Bond issuance costs(net of accumulated , ,. � . ' . . � . amortization of$328,283 in 2002 and . . � � 5207.530in 2001) 186,779 _ . _ - - - 186,779 207.532 Property held for resale - - - - - - - - 100,357 Total assets 3 64.92?,018 $ 135,101?84 $ 1,654,885 $ 6,195,b29 b 1,75�,304 S 1,839,843 S 3,101,301 $214,572,264 S 215,198,876 . - � Continued on facing page � � 11-42 Schedule D-1(con't) CITY OF BANGOR,MAINE Enterprise Funds Combining Balance Sheet June 30,2002 (with comparative totals for June 30,2001) V Sewer Bass Manicipal Economic Utility Airport Park ParWng Park Golf Development Total Fund Fund Woode Fund Fund Course Fund 2002 2001 LIABILI'fIES AND FUND EQUITY Current liabilities Accounts payable $ 449,629 $ 1,338,442 $ 6,785 S 81,814 S 24,245 $ 17,264 $ 15,091 $ 1,933,270 $ 1,965,082 Accrued wagcs and benefits payable 34,846 150,795 2,210 5,732 21,485 13,746 - 228,814 31�,531 Accruedinterest 335,724 85,376 - 73,554 19,222 - . 13,597 527,473 525,550 - Accruedcompensated absences 43,210 176,854 7,247 1,946 18,900 4,519 - 252,676 239,775 Workers'compensation I5,101 55,830 - 2,404 6,020 - - '79,355 79,7�5 Delemd revenue - - - 60,150 81,143 - - I41,293 92,248 Interfund payables - 600,000 . - - 1,280,855 - - 1,880,855 1,582,343 Genenlobligation debtpayable 2,379,597 10,453 ' - 424,268 88,164 256 65,533 2,968,271 3,270,855 Limited revenue obligation debt payable • 275,000 - - - - - 275,000 260,000 Other liabilities - 24,763 - - 687 - - 25,450 38,622 7otal curtent liabilities 3,258,107 2,717,513 16,242 649,868 1,540,721 35,785 94,221 8,312,457 8,371,781 Long-term liabilities � Workers'compensation 74,899 101,607 - 7,596 3,980 - - 188,082 157,662 � Generalobligation debtpayable 27,989,608 3,868,359 - 5,483,373 1,592,025 94,603 390,252 39,418,220 34,660,223 � Limited revenue obligation debt payable - 3,930,000 - - - - - 3,93Q000 4,205,000 Deferred amount on refunding (1�8,935) - - (161,619) - - - (340,554) (419,394) Arbitragc payable 117,145 - - 13,075 - - - 130,220 126,627 Otherlong-tertnliabilities 160,323 - 193,061 - - - - 353,384 353,384 - 7'otal long-tertn liabilities 28,163,040 7,899,966 ' 193,06I . 5,342,425 1,596,005 94,603 390,252 43,679,352 39,083,502 Total]iabilities 31,421,147 10,617,479 209,303 5,992,293 3,136,726 130,388 484,473 51,991,809 47,455,283 Fund equity (deficiQ . Contributed capital: Ciry 3,817,025 - - - 107,851 -. - 3,924,876 3,995,457 Federal,state and other 8,531,225 9Q815,46I 1,448,119 58,000 331,641 6,383 1,587,721 102,778,550 106,939,816 Customers 2,485,038 - - - - - - 2,485,038 2,602,855 � Totalcontributed capital 14,833,288 90,815,461 1,448,119 58,000 439,492 6,383 1,587,721 109,188,464 t13,538,128 Retained eamings � . Reserved for. Capital expendimres 68,970 1,5�3,596 - - - 1,739 - 1,644,305 1,644,305 . Debt service - 539,308 - - - - - 539,308 539,308 Unreserved 18,598,613 31,555,440 (2,537) 145,336 (1,818,914) 1,701,333 1,029,107 51,208,378 52,021,852 Total retained earnings 18,667,583 33,668,344 (2,53� 145,336 (1,818,914) 1,703,072 1,029,107 53,391,991 54,205,465 Totalfund equity 33,500,871 124,483,805 1,445,582 203,336 (1,379,422) 1,709,455 2,616,828 162,58Q455 167,743,593 � Total liabilities and fund equity $64,922,018 $135,101,284 $ 1,654,885 5 6,195,629 $ 1,757,304 $ 1,839,843 $ 3,101,301 $214,572,264 $215,198,876 ,. Continued from previous page . . II-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 30,2002 � - � Sewer Bass Manicipai Economic Utility A3rport Park �Parking Park Goif Development � � Fund Fund Woods Fund Fund Conrse Fund Total Operating revenues Charges for services $ 6,377,148 $ 8,695,872 $ 292,930 $ 723,818 $ 1,327,040 $ 618,272 $ 275,250 $ 18,310,330 Operating expenses Operating expenses other than ' _ depreciation and amortization 2,951,138 8,223,334 334,163 470,330 1,598,484 481,387 76,412 14,135,248 Depreciatioa and amortization on assets: Acquired with own funds ],284,076 1,884,055 8,001 383,766 152,299 119,736 17,938 3,849,871 Acquired with grants and confibutions 237,609 3,921,545 81,401 7,250 81,414 555 19,893 4,349,667 Totaloperating expenses 4,472,823 14,028,934 423,565 861,346 1,832,197 601,678 114,243 22,334,786 Operating income poss) 1,904,325 (5,333,062) (130,635) (137,528) (505,157) 16,594 161,007 (4,024,456) � Nonoperating revenue(expenses) lnterest income 112,882 1,469,346 - 41,ll2 2,107 28,149 63,817 1,717,411 Unrealized loss on investrnems - (116,690) - - - - - (ll6,690) ; Interestexpense (1,296,575) (372,586) - (325,286) (78,550) (1,496) (27,866) (2,102,359) � Grant monies received for capital assets 1,259,436 3,1 19,050 - - - - - 4,378,486 • Miscellaneous income(expense) - 859 - 2,900 - - 246,958 250,717 Totalnonoperating revenue(expenses) 75,743 4,099,979 - (281,274) (76,443) 26,651 282,909 4,I27,565 , Net income(loss)before operating transfers 1,98Q068 (1,233,083) Q3Q635) (418,802) (581,600) 43,245 443,916 103,109 � Transfersto otherfunds (100,000) (4,654) - - - (21,900) (866,094) (992,648) Transfers from other funds - - 96,400 - - - - 96,400 Operatingtransfer - - 29,090 555,117 573,676 - - 1,157,883 Netincome(loss) 1,880,068 (1,237,737) (5,145) 136,315 (7,924) 21,345 (422,178) 364,744 - I Add depreciation and amorti7ation on fixed assets acquired with grants and contributions 237,609 3,921,545 81,401 7,250 81,414 555 19,893 4,349,667 [ncrease(decrease)in mtained eamings 2,117,67� 2,683,808 76,256 143,565 73,490 21,900 (402,285) 4,714,4ll Retained earnings(deficit),July l,(Restated Note H) 16,549,906 30,984,536 (78,793) 1,771 (1,892,404) 1,681,ll2 1,431,392 48,677,580 �, Retained eamings(deficit),June 30 $ 18,667,583 $ 33,668,344 5 (2,537) $ 145,336 $ (1,818,914) $ 1,703,072 $ 1,029,107 $ 53,391,991 II-44 Schedule D-3 � CITY OF BANGOR,MAINE � Enterprise Funds Combining Statement of Cash Flows For the fiscal year ended June 30,2002 � Sewer Basa Muoicipat Ernoomic Utility Airport Park Parki�g Park Golf Development � Fund Fund Woods Fund Fuod Course Fand Total + � Cash flows frnm operating activities � Cash received from customers $ 6,054,008 S 8,325,334 $ 292,930 S 716,431 $ 1,442,066 S 618,284 E 275,250 S 17,724,303 Cash paid to suppliers for goods and services (1,750,371) (4,122,350) (291,515) (314,457) (856,080) (225,698) (68,232) (7,628,703) � Cashpaidtoemployeesforservices (1,096,494) (4,635,213) (64,576) (I69,440) (732,111) (271,409) - (6,969,243) � Net cash provided by(used in)operating activities 3,207,143 (432,229) (63,161) 232,534 (146,I25) 121,177 207,018 3,126,357 Cash flows from noncapital financing activities , Interfundloans(repaymrnts) - - (26,988) (1,5�6) (274,500) - - (303,004) � Trnnsfers in - 600,000 96,400 - - - - 696,400 Transfers out (100,000) (4,654) - - - (21,900) (866,094) (992,648) � Proceedofpensionobligationbonds 1,042,697 3,878,812 � � 178,632 476,389 94,859 - 5,67I,389 � R a ent of Meine State Retirement S stem ep ym y (1,016,3I4) (3,780,666) (174,II2) (464,335)� (92,459) (5,527,886) Operetingtransferreceived - - 29,090 555,117 573,676 - - 1,�57,883 � Net cash provided by(used in)noncapital � , � financing activitics (73,617) 693,492 98,502 558,121 311,230 (19,500) (866,094) 702,134 Cash tlows from capital and related financing adivities - Proceeds from gcnerol obligation bonds 2,226,340 � - - � - - - - 2,226,340 1 Acquisition and construction of capital assets (2,017,284) (3,902,104) - (2,644,848) (�,208) (96,638) (336,787) (8,998,869) Principal paid on general and limitcd revrnue � obligation bonds (2,682,558) (260,000) - (424,350) (119,720) - (64,688) (3,551,316) � Intenst paid on general and limited revenue obligation bonds ' (1,252,888) (356,516) - (298,602) (81,699) (1,496) (28,878) (2,020,079) Proceeds from sale ofequipment - 859 - - - - 347,317 348,176 Grant monies received for cepital assas 1,073,512 2,793,236 - - - - - 3,866,750 Investmentofbondproceeds (519,IS8) (422) -� 2,574,203 26,452 - 800,000 2,681,075 Net cash provided by(used in)capitai and related financing activitics (3,172,036) (1,724,945) - (793,597) (176,I75) (98,134) 716,964 (5,247,923) � i Cash tlows from investing activities � Netsales(purehases)ofinvatmrnts (787,453) .(1,190,592) (968) (5,826) - (219,944) (62,124) (2,266,907) Imerest on investments ]16,114 1,352,656 - 44,373 2,107 28,147 52,902 1,596,299 �^�' Loans issued � - ' - _ _ _ _ � _ Loan repayments � 689.000 � 1,228,627 - - - - 14,777 1,932.404 � Net cash provided by(used in)investing activities 17,661 ' 1,390,691 (968) 38,547 2,107 (191,797) � 5,555 1,261,796 Netinerease(decrease)in cash (20,849) (72,991) 34,373 35,605 (8,963) (188,254) 63,443 (157,636) Cesh,July 1 75,052 - 79,999 4,824 164,245 23,487 275,565 112,8t6 735,968 ' � Cesh,June 30 S 54,203 S �7,008 S 39,197 $ 199,850 $ 14,524 S 87,3I 1 S 176,259 S 578,352 $thedule of noncash investing,capital and financing activities: � During the year,the Airpon Fund had an unrealized loss on investrnents in the amount of$116,690. � � � Continued on next page ' ' II-45 Schedule D-3(con't) CITY OF BANGOR,MAINE � Enterprise Funds Combining Statement of Cash Flows For the fiscal year ended June 30,2002 7 Sewer � - Bass Monicipal Economic � UtiGty Airport Perk � Parking Park Colf Development -. Fund Fund Woods Fund Fund Course Fund Totel � I Reconciliation of operating income(loss)to net cash provided by(used in)operating aMivities � f Operating income(loss) $ 1,904,325 $ (5,333,062) $ (130,635) $ (137,528) $ (505,157) $ 16,594 $ 161,007 $ (4,024,456) ti � _f Adjustments to reconcile operating income(loss) . to net cash provided by(used in)operating , f activities � Depreciation and amortization 1,521,685 5,805,600 89,402 391,016 233,713 12Q291 37,831 8,199,538 � � Provision for uncollectible accounts - 3,027 - - - - - 3,027 . Changes in assets and Iiabilities: r (Increasc)decrease in accounts receivable (27,798) (370,538) - (1,471) 60,065 12 - (339,730) (Increase)decrcasc in due from water district (295,342) - - - - - - (295,342) 1 � (Increase)decrease in inventories - 19,690 - - (I,006) - - 18,684 (Increase)decrease in prepaid items 2Q872 (16,493) - • 20,949 - 8,192 33,520 � Increase(decrease)in accounts payable 59,200 (477,393) (20,397) (12,771) (2,711) (6,988) (12) (461,072) Increase(decrease)in deferred revenue - - - (5,916) 54,961 - - 49,045 Increase(decrease)in other current liabilities 24,201 (63,060) (1,531) (796) (6,939) (8,732) - (56,85'n �' , Total adjustments 1,302,818 4,900,833 67,474 370,062 359,032 104,583 46,01 I 7,150,813 " Net cash provided by(used in)operating activities $ 3,207,143 $ (432,229) $ (63,161) $ 232,534 $ (146,125) $ 121,177 $ 207,018 $ 3,126,357 s � .,.-. ' - . , , � � 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 For the fiscal year ended June 30,2002 � Budget Actual Variance Revenues Charges for services $ 6,093,650 $ 6,270,878 $ 177,228 � Operating transfer - - - Interest and other revenue 998,583 835,479 (163,104) � Total revenues 7,092,233 7,106,357 14,124 Expenditures and encumbrances -- Salaries 828,171 799,189 28,982 Fringe benefits 271,462 319,375 (47,913) Supplies and materials 8'09,346 838,394 (29,048) Contractual services 431,225 509,989 (78,764) Interfund charges 509,040 470,634 38,406 � Miscellaneous 21,550 12,605 8,945 Debt service . 3,901,076 3,545,917 355,159 � Depreciation 1,192,397 1,284,076 (91,679) - Outlay 248,600 281,956 (33,356) Credits - - - Total expenditures and encumbrances 8,212,867 8,062,135 150,732 ; Excess(deficiency)of revenues over expenditures and encumbrances $ (1,120,634) $ (955,778) $ 164,856 ,,�, _ , 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 30,2002 ,.., Budget Actual Variance , � Revenues i Charges for services $ 8,988,856 $ 8,667,557 $ (321,299) Operating transfer - - - Interest and other revenue 1,540,154 1,599,973 59,819 Total revenues 10,529,010 10,267,530 (261,480) � Expenditures and encumbrances l Salaries 3,760,940 3,755,080 5,860 Fringe benefits 1,004,469 830,932 173,537 � Supplies and materials 1,511,499 1,467,584 43,915 � Contractual services 1,666,851 1,614,160 52,691 Interfund charges 566,771 . 529,280 37,491 � Miscellaneous � I U3,850 37,181 66,669 Debt service 855,730 825,748 29,982 � Depreciation 1,923,565 1,884,055 39,510 Outlay 411,260 227,570 183,690 �_ Credits (5,400) (7,530) 2,130 Total expenditures and encumbrances 11,799,535 11,164,060 635,475 Excess(deficiency)of revenues over expenditures ^ and encumbrances $ (1,270,525) $ (896,530) $ 373,995 �. ' I , j 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 30,2002 �� Budget Actual Variance Revenues Charges for services $ 275,199 . $ 292,930 $ 17,731 Operating transfer 29,090 29,090 - . Interest and other revenue 96,400 96,400 - Total revenues 400,689 418,420 17,731 Expenditures and encumbrances Salaries 54,522 54,153 369 � Fringe benefits 11,907 8,892 3,015 Supplies and materials 114,750 109,968 4,782 � Contractual services 119,860 116,239 3,621 Interfund charges ,3,250 3,458 (208) � Miscellaneous - - - Debt service - - - Depreciation 8,001 8,001 - Outlay 96,400 55,205 41,195 Credits - - - Total expenditures and encumbrances 408,690 355,916 52,774 �� Excess(deficiency)of revenues over expenditures and encumbrances $ (8,001) $ 62,504 $ 70,505 --� i , /'•.' , ,. 1 I . II-49 Schedule D-7 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 30,2002 �,. Budget Actual Variance , Revenues Charges for services $ 683,000 $ 738,129 $ 55,129 '' Operating transfer 555,117 555,117 - Interest and other revenue - 7,774 7,774 Total revenues 1,238,117 1,301,020. 62,903 ' Expenditures and encumbrances p Salaries 125,895 135,975 (10,080) '- Fringe benefits 34,417 32,669 1,748 ` Supplies and materials 7,900 5,529 2,371 , Contractual services 228,962 196,537 32,425 Interfund charges 82,540 89,665 (7,125) � Miscellaneous - - - Debt service 725,652 725,984 (332) Depreciation 310,427 383,766 (73,339) � Outlay 32,751 27,764 4,987 Credits - (708) 708 Total expenditures and encumbrances 1,548,544 1,597,181 (48,637) Excess(deficiency)of revenues over expenditures �^ and encumbrances $ (310,427) $ (296,161) $ 14,266 r !� �� II-50 � Schedule D-8 , CITY UF BANGOR;MAINE � Enterprise Fund-Bass Park Fund Schedule of Revenues,Expenditures and Encumbrances �� Budget and Actual-Budgetary Basis For the fiscal year ended June 30,2002 �� Budget Actual Variance Revenues = Charges for services $ 1,262,370 $ 1,327,040 $ 64,670 � Operating transfer 573,676 573,676 - � Interest and other revenue - 192 192 Total revenues 1,836,046 1,900,908 64,862 � Expenditures and encumbrances 1 � Salaries 626,093 594,092 32,001 Fringe benefits 150,269 130,393 19,876 Supplies and materials 241,025 211,215 29,810 Contractual services 457,486 473,646 (16,160) � Interfund charges 106,575 123,121 (16,546) Miscellaneous 65,000 64,007 993 Debt service 201,248 201,419 (171) '--' Depreciation 136,528 152,299 (15,771) _ Outlay 9,350 1,692 7,658 ` Credits (21,000) (21,000) - - Total expenditures and encumbrances 1,972,574 1,930,884 41,690 `, Excess(deficiency)of revenues over expenditures and encumbrances $ (136,528) $ (29,976) $ 106,552 } -� I � � i � � � " II-51 Schedule D-9 - CITY OF BANGOR,MAINE ; Enterprise Fund-Municipal Golf Course Schedule of Revenues,Expenditures and Encumbrances ��-- F, Budget and Actual-Budgetary Basis ' For the fiscal year ended June 30,2002 Budget Actual Variance � , Revenues Charges for services $ 703,000 $ 618,272 $ (84,728) � Operating transfer - - - Interest and other revenue 15,000 28,147 13,147 � Total revenues 718,000 646,419 (71,581) ` Expenditures and encumbrances Salaries 188,829 226,921 (38,092) �� Fringe benefits 37,093 35,756 1,337 � Supplies and materials 50,632 65,132 (14,500) , Contractual services 61,082 72,525 (11,443) � Interfund charges 245,982 73,102 172,880 ' � Miscellaneous - - - - Debt service - - - Depreciation 76,115 119,736 (43,621) �" Outlay 134,382 125,073 9,309 - Credits - - - Total expenditures and encumbrances 794,115 718,245 75,870 �- �, Excess(deficiency)of revenues over expenditures and encumbrances $ (76,115) $. (71,826) $ 4,289 ` � 1; , , i f._ � II- 52 � � Schedule D-10 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 30,2002 Budget Actual Variance Revenues - . Charges for services $ 233,795 $ 275,250 $ 41,455 � Operating transfer - - - �-� Interest and other revenue 11,200 360,068 348,868 -", Total revenues 244,99� 635,318 390,323 � Expenditures and encumbrances ,- Salaries - - - , Fringe benefits - - - Supplies and materials 12,325 13,239 (914) ' Contractual services 24,815 39,818 (15,003) v Interfund charges - 4,573 (4,573) Miscellaneous 39,449 2,779 36,670 ~ Debt service 114,603 93,566. 21,037 � ' Depreciation 11,706 17,940 (6,234) Outlay 53,803 65,554 (11,751) � Credits - - - � . Total expenditures and encumbrances 256,701 237,469 19,232 ; Excess(deficiency) of revenues over expenditures and encumbrances $ (11,706) $ 397,849 $ 409,555 h. � r, 1 � � n i I. II-53 � Trust and Agency Funds �. - � �� : ..---, P , �� - � . f, � ; � , -= , The following are the City's TJr{ust nd}Agency;�Funds' . . ' . F�st !-.i� jf M "". . • (••^ � / '.N' \ � Expendable Trust,Funds;=,Accounts for amounts raised or donated to benefit the Dental Clinic, local parks,.C�ty forest a'nd emergency equipment:� ��. , -_:�. ;, I°� - '° . . :, ° .._ _ _ . � '_ Other Funds,`.Accot�nts`for arnountsreceived�rom various parties to fund the perpetual care of specific cemetery plots and to benefit parks, educational and otl�er benevolent causes:� , _. Revolving Loan�Funds-Accounts for the Sophia Kirstein Student Loan Fund. The fund was -- established to pr vide educational loans to residents of the City of Bangor. ,, � Agency Funds 4`-,Accounts for assets held by the government.in a purely custodi�al capacity. , �, �, = f � . , .:, , � .� ��( , , , '�� ,, , '� -- - ;, . ._. r ;,: - . . . i . i,, � t `. .. .. ` '.� _. . ' ' ... , yy 4�, ^ � 1 . . � y � . � . .. ! � l S . . ` • � / � . � .. . . - . .. ` � � . ` `M. • � . . . " . � � � \ .� . . �- � � ' - , �. - � \ / .,. . ` i � � A . . �_. `�.\.__. _ .. . . �::� ' �., , - � . . - . 1.. I . Schedule E-1 CITY OF BANGOR,MAINE Trast and Agency Funds Combining Balance Sheet , June 30,2002 (with comparative totals for June 30,2001) Nonexpendabie Trust Funds Expendable Other Revolving Ageocy Totals � ` Trust Funds Funds Loan Funds Total Funds 2002 2001 ASSETS Cash $ - $ - $ - $ - $ 14,495 $ 14,495 $ 374,339 Investments 952,314 1,045,964 106,923 1,152,887 814,439 2,919,640 1,984,584 Loans receivable - - 27,299 27,299 - 27,299 33,744 Total assets $ 952,314 $1,045,9b4 $ 134,222 $1,180,186 $828,934 $2,961,434 $2,392,667 LIABILITIES AND FUND EQUITY Liabilities: � Accounts payable $ - $ - $ - $ - $ 102 $ 102 $ 9,009 Amounts held for others - - - - 828,832 828,832 893,688 - Totalliabilities - - - - 828,934 828,934 902,697 � Fund equity: Reserved for: ' Loans - - 134,222 134,222 - 134,222 134,905 Endowments - 506,298 - 506,298 - 506,298 542,371 Unreserved 952,314 539,666 - 539,666 - 1,491,980 812,694 � Tota]fund equity 952,314 1,045,964 134,222 1,180,186 - 2,132,500 1,489,970 Total liabilities and fund equity $ 952,314 $1,045,964 $ 134,222 $1,180,186 $828,934 $2,961,434 $2,392,667 :-•� ' I II-54 � Schedule E-2 � CITY OF BANGOR,MAINE Trust and Agency Funds-Expendable Trust Funds Statement of Revenues,Expenditures,and Changes in Fund Equity ' For the fiscal year ended June 30,2002 , Revenues Revenue from use of money and property $ 38,626 Contributions 18,259 Total revenues 56,885 , Expenditures Payments to beneficiaries 73,185 Total expenditures 73,185 _ Deficiency of revenues over expenditures (16,300) Other financing sources(uses) Transfers to other funds (193,541) Transfers from other funds 866,094 Total other financing sources(uses) 672,553 Excess of revenues over expenditures and other financing sources(uses) 656,253 � Fund equity,July 1 296,061 � Fund equity,June 30 $ 952,314 ' :• ( II- 55 Schedule E-3 CITY OF BANGOR,MAINE Trust and Agency Funds-Nonexpendable Trust Funds Combining Statement of Revenues,Expenses and Changes in Fund Equity For the fiscal year ended June 30,2002 Other Revolving Funds Loan Fund Total Operating revenues Interest $ 32,468 $ 3,049 $ 35,517 Lot sales 3,450 - 3,450 � Total operating revenues 35,918 3,049 38,967 ' Operating expenses Payments to beneficiaries 958 3,000 3,958 Miscellaneous - 732 732 Total operating expenses 958 3,732 4,690 -� Net income(loss)before operating transfers 34,960 (683) 34,277 Transfers to other funds (48,000) - (48,000) Net income(loss) (13,040) (683) (13,723) Fund equity,July 1 1,059,004 134,905 1,193,909 Fund equity,June 30 $ 1,045,964 $ 134,222 $ 1,180,186 r II-56 , Schedule E-4 CITY OF BANGOR,MAINE Trust and Agency Funds-Nonexpendable Trust Funds Combining Statement of Cash Flows For the fiscal year ended June 30,2002 Other Revolving Funds Loan Fund Total Cash flows from operating activities Cash payment to suppliers for goods and services $ - $ (732) $ (732) - Other operating cash receipts 3,450 6,445 9,895 Other operating cash payments (48,958) (3,000) (51,958) Net cash provided by(used in)operating activities (45,508) 2,713 (42,795) � Cash flows from investing activities Net sales (purchases) of investments 13,040 (5,762) 7,278 Interest on investments 32,4b8 3,049 35,517 Net cash provided by(used in)investing activities 45,508 (2,713) 42,795 Net increase(decrease)in cash - - - �.. Cash,July 1 - - - Cash,June 30 " $ - $ - $ - Reconciliation of operating income to net cash provided by(used in)operating activities ` Operating income(loss) $ 34,960 $ (683) $ 34,277 � Adjustments to reconcile operating income to l net cash provided by(used in)operating � activities Presentation differences: Interest (32,468) (3,049) (35,517) Transfers, net (48,000) - (48,000) Student loan fund - 6,445 6,445 Net cash provided by(used in)operating activities $ (45,508) $ 2,713 $ (42,795) ,.� ' _ , . II 57 - Schedule E-5 , CITY OF BANGOR,MAINE Trust and Agency Funds-Agency Funds � ' Statement of Changes in Assets and Liabilities For the fiscal year ended June 30,2002 Balance Balance , June 30,2001 Additions Deletions June 30,2002 . . ASSETS Cash $ 374,339 $ 909,266 $ 1,269,110 $ 14,495 Investments 528,358 1,078,182 792,101 814,439 � $ 902,697 $ 1,987,448 $2,061,211 $ 828,934 LIABILITIES Accounts payable $ 9,009 $ 8,937 $ 17,844 $ 102 � Amounts held for others 893,688 909,266 974,122 828,832 � $ 902,697 $ 918,203 $ 991,966 $ 828,934 � , - f . � _ � � "� , II-58 � , - --:., f" �� ' `�.a'.,. ``.j :� • � • . � General Fix`ed Assets Account Group _ . ;,> t � . - . The generai fxed�asset account groupnis used to account for the City's�fixed assets,which are not . accounted fo�iman enterprise or trust fund. The self-balancing account group is used to establish �� ;� accounting contro] of the Ci{y's general fixed assets. s �'� � �" ._�A.`... . , .. - � . � F. . �- � ' . .. /' . .P; . _ ,. ' �,,. � . ' d- �, s . a. t;' . . , , ; `,; � y , � i g�� . . � ��_ ,i i; , . , ��, �: . �. ... . -. w. . . .. • .� . F t. J. � � _ . .. . , .i - � 11�. . � . . ' . " � � .. . � 1 . � 1 • . • , ' . . . . ,_T ' .. � ., ' . \ a - . `- � ` . � t � � � i .� �.1 __' .. . - -. . � , \. � � i Schedule F-1 CITY OF BANGOR,MAINE � Schedule of General Fized Assets By Source June 30,2002 GENERAL FIXED ASSETS Land $ 5,198,491 � School Land 1,475,988 Buildings 6,672,990 � School buildings 34,368,362 Vehicles 9,268,238 Machinery and equipment 6,540,343 School other 5,910;492 Construction in progress 6,309,478 Total general fixed assets $ 75,744,382 INVESTMENT IN GENERAL FIXED ASSETS Total general fund $ 75,744,382 II-59 Schedule F-2 CITY OF BANGOR,MAINE , Schedule of General Fixed Assets By Function June 30,2002 Function Land Buildings Vehictes Equipment Total i General Government $ 3,682,151 $ 549,394 $ 508,100 $ 2,188,729 $ 6,928,374 Public Safety 131,355 2,610,573 2,126,794 1,226,846 6,095,568 � Health,welfare and recreation 1,037,595 2,032,944 - 1,001,529 4,072,068 Public building and services 347,390 1,480,079 6,633,344 2,123,239 10,584,052 - Education 1,475,988 34,368,362 - 5,910,492 41,754,842 6,674,479 41,041,352 9,268,238 12,450,835 69,434,904 Construction in process - 5,197,373 636,528 475,577 6,309,478 Total $ 6,674,479 $ 46,238,725 $ 9,904,766 $ 12,926,412 $ 75,744,382 \ II-60 � Schedule F-3 CITY OF BANGOR,,MAINE Schedule of Changes in General Fixed Assets By Function ' For the�scal year ended June 30,2002 General General Fixed Assets Fixed Assets , � Function June 30,2001 Additions Deletions June 30,2002 � General Government $ 6,439,537 $ 488,837 $ - $ 6,928,374 Public Safety 5,331,555 764,013 - 6,095,568 Health,welfare and recreation 4,045,465 26,603 - 4,072,068 Public building and services 10,584,052 - - 10,584,052 � Education 41,096,426 658,416 - 41,754,842 67,497,035 1,937,869 - 69,434,904 Construction in process 2,877,632 4,764,703 1,332,857 6,309,478 Total general fixed assets $ 70,374,667 $ 6,702,572 $ 1,332,857 $ 75,744,382 � ; II-61 i ,�� . . ,� � � -� � f' i�� i � y.,;� 1 F/;'r� y�y g� �$'l i ��yg�z� �""-,..,.... ��J/ ��.'�. • f _,/;:� .' � ' ��:f� ��:re�...t _�., � ,. .r -.� \ i%� l ;�/��.� , �=f� t�"�yOther Info"r<mation . � ��' �� f� � � �'�j /�`�. `.'.. �...... _. , � � t �`�. . e, .. .� ; �s �,'""� t fy �. �. . i t ,r ' �� {' r,�'' ��' � � \ � ri � � >,�.,,./�� < � �,/i �� • , , .. ' , � , ✓;� f �;, � . _.. t�s ` _.� f ., , .. � i ,� f F' t ' �j' �I r;�''. . :l� . .� .. - t�%t:, r � � ' ��'x , � � k:� ; �3 � l ,, E � ! � � d` t f';' ' ' . �' Y= A _. �{: 3 / � n.�/,✓ '�: , � � .�.. " � M1� ' � ��, f r ��.. 1 M/.. . . ..1": .. �{: �. . f },' t �. �.., ,�\�l� - ' \�� £� F \\\ 2 .. ... r � �t�' C � '' t f - - � i � . Si '. ' .: ..., ..; � . ' '�. . �:: � - � Ft �� . '. ��, ..,- ... .::" ... _ , . . ,,� � ;, , �� ; , , _ ... , . . .. . , ;; ; f � . ".. ti � �; l ,`,. ; � • �sy - , � : . . . . ti w . . ,'.i � �� / �" ' , , _. -�`�, ... . .: _ ��:„ �;;� �. , z .� �;: \ �.. , i �`�e. � � , . � � J.. . . f . / ' �.� . : � .. , . r. . '. r" �,.. � ��r .. .. .. . �. . .� h :. .._., ..._ - . , , r x,... �,�.,t� l`r . .��` __ i'' J. . l Schedule G-1 CITY OF BANGOR,MAINE Assessed Valuation, Commitment and Collections For the fiscal year ended June 30,2002 VALUATION � Land and buildings $ 1,308,580,000 Land and buildings-Homestead exemption 38,148,900 ' Personal property 241,682,200 Total valuation $ 1,588,411,100 COMMITMENT � � Real estate and personal property(excludes Homestead exemption) $ 1,550,262,200 Tax rate 0.02375 ' Total commitment 36;818,727 ADD Supplemental taxes committed 74,518 36,893,245 � LESS Collections 2002 35,633,029 Abatements 208,211 2002 taxes receivable at June 30,2002 $ 1,052,005 II-62 Schedule G-2 CITY OF BANGOR,MAINE Undesignated Fund Balance Sufficiency Calculation For the fiscal year ended June 30,2002 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, 2002 undesignated fund balance. General Fund expenditures/uses( Schedule A-2) ' General government $ 3,818,335 Public safety 10,802,401 Health,welfare and recreation 2,875,576 Public buildings and services 7,359,810 Other agencies 2,953,707 � Education 36,211,716 * Other appropriations 3,545,007 * Other uses, gross 2,776,318 Gross expenditures and uses 70,342,870 General Fund debt service 3,393,938 Net expenditures and uses $66,948,932 Indicated undesignated fund balance @ 7.5% $ 5,021,170 � Actual undesignated fund balance(Schedule A-2) $ 9,291,767 Actual undesignated fund balance as a percentage of net expenditures and uses 13.88% Over(under) funded status $ 4,270,597 * General fund expenditures have been reduced by the one-time repayment to the MSRS in the amount of$1,648,353 in Education and$25,992,700 in Other Appropriations. II-63 I, Statistical Section � 4 Table 1 CITY OF BANGOR,MAWE Geaeral Fund Revenues—Budgetary Basis* - Last Ten Fiscal Years Inter- Licensee CAsrges Fines Use ot Fiscsl Real Personsl Total Tax govem- & for &For- Money& Year Property Property Excise Revenoes mental Permits Services feitares Property Totai 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 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 27,011,014 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 27,340,204 3,545,267 2,754,819 33,640,290 13,803,107 324,639 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 1998 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 4,487,895 3,266,421 35,238,716 17,733,946 499,483 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 8,147,181 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 2002 30,767,352 5,796,498 3,935,924 40,499,'174 19,580,491 298,665 9,755,012 28,009 980,442 71,142,393 ; Amounts appear in Schedule A-2. . III-I Table 2 CITY OF BANGOR,MAINE General Fund Expenditures by Function—Budgetary Basis* Last Ten Fiscal Years Fiscal Generel Public Health& Parks& Pnblic Debt Other Year Government Safety Weffare RecreaHon Services EdocaHon Service Other** Agencies*** Total 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 I,454,132 200,436 1,715,417 53,2I4,329 1995 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 I,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 I999 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 2002 3,818,335 ]0,802,401 1,822,104 ],053,472 7,359,810 37,860,069 866,860 28,670,847 2,953,707 95,207,605 � Amounts appear in Schedule A-2. ae ^p�her"includes recreation district tax,contingency,TIF related payments,pensions and other fringes., In FY02,pensions and other fringes includes a$26,942,265 payment to Maine State Retirement. ;"" "Other Agencies"includes Penobscot County ta�ces 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(Deficfency) Appropr- Total Appropr- Operatlng Total of Revenues/Other iations to Operating General Fund iations from Trensfers Total General Fund Sources Over Fiscal Fund Transfers Total Expenditures Fund lo&Other Ot6er Revenues Expenditures/ Year Balance Out&Other Ot6er Uses &Other Uses Balance Sources Sources &Other Soarces Ot6er Uses 1993 433,112 692,527 1,125,639 50,352,584 - - 51,362,652 1,010,068 1994 - 787,897 787,897 54,002,226 26,328 ]08,179 134,507 55,246,850 1,244,624 1995 - 865,462 865,462 55,279,449 260,000 28,770 288,770 55,886,373 606,924 I996 - 1,871,914 1,8T1,914 55,578,037 689,909 76,249 7G6,158 56,566,929 988,892 1997 - 2,360,375 2,360,375 57,5G8,525 1,249,123 377,448 1,626,571 58,138,528 570,003 l 1998 - 1,528,803 1,528,803 59,821,854 333,731 357,459 691,190 60,531,734 709,880 1999 - 1,64Q914 1,640,914 61,101,609 362,286 97,903 44QI89 52,416,650 1,315,04t 2000 240,000 1,803,724 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 66,959,836 29,047 65,537 94,584 68,223,208 1,263,372 2002 26,500 2,749,818 2,77G,318 97,983,923 82,147 28,454,275 28,536,422 99,678,8I5 1,694,892 x Amounts appear in Schedule A-2. 4 i III-3 Table 4 CITY OF BANGOR,MAINE _ Assessed and Estimated Market Value* Last Ten Fiscal Years Fiscal Real Personal year Property Property Total °/a Change 1993 , 1,162,189,600 103,825,600 1,266,015,200 1.97% 1994 1,183,296,900 109,541,200 1,292,838,100 . 2.12% 1995 1,193,466,200. 112,324,800 1,305,791,000 . 1.00% 1996 1,201,371,900 139,604,900 1,340,976,800 2.69% - 1997 1,206,956,900 156,506,600 1,363,463,500 1.68% 1998 1,210,414,700 176,756,000 1,387,170,700 1.74% 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% 2002 1,346,728,900 241,682,200 1,588,411,100 3.29% * It is City policy to assess at 100%of estimated market value. l III-4 � Table 5 CITY OF BANGOR,MAINE . Property Tax Levies,Collections and Delinquencies* Last Ten Fiscal Years %of Outstanding Ralio of %of Delinquent ' Tofal Total Tsa Cunent Year Current Year Fiscal Gross Tax Abate- Net Taz Current Net Levy Tax Taz Co1lecHon Delinquent Delinquencies year Levy ments Levy Collections Collected Collecdons Collectlona to Net Levy Taxes to Net Levy 1993 27,118,624 105,234 27,013,390 25,020,672 92.62% 1,994,355 27,015,027 100.01% 1,992,718 7.38% 1994 28,549,008 38Q322 28,168,686 26,499,976 94.08% 2,024,862 28,524,838 101.26% 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% ]996 31,084,237 341,860 30,742,377 29,297,048 95.30% 1,469,986 30,�67,034 ]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% 1,543,779 32,349,404 ]0035% 1,429,914 4.44% 1999 32,611,689 ]45,123 32,466,566 31,084,751 9$.94% 1,503,187 32,587,938 100.3�% 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 10134% 1,094,391 3.12% 2002 36,893,245 208,211 36,685,034 35,633,029 97.13% 1,655,407 37�288,436 101.64% 1,052,005 2.87% " 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 Fiscal City Fund Debt Penobscot Total Taae/ Year Government Service Education County (Mill)Rate 1993 � 9.57 0.91 10.04 0.88 21.40 1994 9.60 1.13 10.41 0.86 22.00 1995 9.72 1.26 11.21 0.86 23.05 1996 9.72 1.06 11:51 0.86 23.15 1997 9.61 1.08 11.33 0.88 22.90 1998 9.64 1.28 11.57 0.86 23.35 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 2002 9.69 0:85 12.24 0.97 23.75 III-6 Table 7 CITY OF BANGOR,MAINE Principal Taxpayers June 30,2002 Assessed %of Total Cumulative Taxpayer Business Value Tax Base % _ BANMAK Associates Shopping mall $ 58,050,400 3.93% 3.93% General Electric* Steam turbine manufacturer 30,819,755 2.09% 6.02% Bangor Hydro-Electric Utility 27,943,600 1.89% 7.92% Bangor Savings Bank Financial institution 21,162,300 1.43% 9.35% Webber Oil Company Fuel distributor 10,737,000 0.73% 10.08% QV Realty Trust Real estate interests 10,222,700 0.69% 10.77% Airport Mall Associates Shopping mall 10,140,400 0.69% 11.46% Cabrel Company Real estate interests 9,697,300 0.66% 12.12% Wal Mart Stores,Inc Retailer 9,421,200 0.64% 12.75% Sams Real Estate Trust Retailer 8,636,400 0.59% 13.34% Totals $196,831,055 * Net of$32,807,750 of tax increment financing assets. III-7 Table 8 CITY OF BANGOR,MAINE Computallon of Legal Debt Margin June 30,2002 Total State Valuation $ 1,606,250,000 Debt Limitation: 15%of State Valuation $ 240,937,500 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% $ 120,468,750 $ 55,001,209 45.66% 3.42% School 10.00% 160,625,000 16,152,069 10.06% 1.01% Sewer 7.50% 120,468,750 30,369,205 25.21% 1.89% Total Bonded Debt Applicable to Debt Limit: $ 101,522,483 42.14% 6.32% Margin for Additional Borrowing: $ 139,415,017 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 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 24,937,7.60 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% 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 2002 32,845 1,588,411,100 66,818,681 4.21% 2,034.34 * 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 and 2002),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$30,369,205,Airport debt of$3,878,812 and Economic Development debt of$455,785,at year end FY02. 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 1993 1,541,233 1,177,919 2,719,152 49,226,945 5.52% 1994 2,209,846 1,235,184 3,445,030 53,214,329 6.47% 1995 2,358,643 1,085,414 3,444,057 54,413,987 6.33% 1996 2,180,072 948,868 3,128,940 53,706,123 5.83% 1997 2,039,162 852,963 2,892,125 55,208,150 5.24% 1998 2,032,188 1,051,394 3,083,582 58,293,051 5.29°/a 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% 2001 2,389,399 1,097,765 3,487,164 64,652,569 5.39% 2002 1,707,483 1,686,455 3,393,938 67,566,552 ** 5.02% * Budget basis,Schedule A-2 ** 2002 General Fund Expendit�res have been reduce by the one time payment to the MSRS totaling$27,641,053 __ III-10 Table 11 CITY OF BANGOR,MAINE Computation of Direct and Overlapping Debt June 30,2002 Percentage . Amount , Total Debt Applicable Applicable Outstanding to Bangor . to Bangor Direct Debt City of Bangor General Obligation Bonds $ 101,522,483 100.00% $ 101,522,483 Limited Obligation Bonds 4,205,000 100.00% 4,205,000 Overlapping Debt Penobscot County 1,275,000 23.87% 304,343 Total Debt ' $ 107,002,483 $ 106,031,826 � III-11 Table 12 CTTY OF BANGOR,MAINE Direct and Overlapping Debt. Last Ten Fiscal Years Overlapping Debt Direct and Overlapping Debt , , Direct Debt Bangor Maine As"/o of Fiscal City of Penobscot Recreation Vocational Assessed Per Year Bangor County District Region Total Value Capita 1993 $64,027,090 $ 1,598,481 $ 160,000 $517,286 $66,302,857 5.24% $2,070.22 1994 67,959,000 760,461 80,000 527,096 69,326,557 5.36% 2,137.27 1995 63,144,763 696,911 - 369,490 64,211,164 4.92% 1,971.48 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% 2,210.25 2002 105,727,483 304,343 - - 106,031,826 6.68% 3,228.25 I 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 Ezpenses Debt Service Principal Interest Total Coverage 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 - 3$2,253 352,253 8.52 1995 11,853,307 9,861,003 1,992,304 - 352,252 352,252 5.66 1996 9,715,257 7,336,358 2,378,899 190,000 348,073 538,073 4.42 1997 9,932,620 7,190,091 2,742,529 195,000 339,311 534,311 5.13 1998 10,733,716 7,368,848 3,364,868 205,000 329,603 534,603 � 6.29 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 2002 10,132,706 8,223,334 1,909,372 260,000 279,308 539,308 3.54 * Revenue debt consists solely of a 1992 limited obliga6on Airport bond issue. i III-13 Table 14 CITY OF.BANGOR,MAINE Debt Service Requirements to Maturity all Bonded Debt June 30,2002 � Limited Obligation Total Debt Service General Obligation Debt Revenue Debt Requirements i Fiscal Year Interest Principal Interest Principal Interest Principal 2003 $ 5,242,721 $ 5,012,387 $ 263,789 $ 275,000 $ 5,506,510 $ 5,287,387 2004 4,894,252 5,307,995 247,045 290,000 5,141,297 5,597,995 2005 4,661,270 5,182,305 228,890 310,000 4,890,160 5,492,305 2006 4,432,598 5,275,841 208,958 330,000 4,641,556 5,605,841 2007 4,193,211 5,389,797 187,368 350,000 4,380,579 5,739,797 2008 3,951,305 5,514,197 164,508 370;000 4,115,813 5,884,197 2009 3,696,491 5,544,065 139,528 395,000 3,836,019 5,939,065 2010 3,439,717 5,489,428 112,058 425,000 3,551,775 5,914,428 2011 3,201,855 5,060,314 82,578 455,000 3,284,433 5,515,314 2012 2,976,568 5,222,795 51,088 485,000 3,027,656 5,707,795 Thereafter 21,140,801 48,523,359 17,420 520,000 21,158,221 49,043,359 Totals $61,830,789 $ 101,522,483 . $ 1,703,230 $,4,205,000 $63,534,019 $ 105,727,483 i III-14 Table 15 CITY OF BANGOR,MAINE Self Supporting and Tax Supported General Obligation Bonds June 30,2002 Percent of Amount Total General Obligation Bonds Supported by Property Tax Revenues General Fund $ 42,983,923 42.34% Education 16,152,069 15.91% Non-self Supporting Enterprise Fund 7,682,689 7.57% Total 66,818,681 65.82% Self Supporting General Obligation Bonds , Sewer Utility Fund 30,369,205 29.91% Aitport Fund 3,878,812 3.82% Economic Development Fund 455,785 0.45% Total 34,703,802 34.18% Total General Obligation Bonds $ 101,522,483 100.00% III-TS ------ -- - Table 16 CTTY 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 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,'135 . 1,902,000 1,204,688 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 2002 15,928,325 693,220 34,453,845 * 1,047,700 35,501,545 *Includes payoff to Maine State Retirement System of$33,168,939 III-16 � Table 17 CITY OF BANGOR,MAINE Public School Enrollment Last Ten School Years School Other Total Year K-3 45 6-8 9-12 Enrollment Enrollment 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 2002 1,149 625 899 1,389 254 4,316 Source: Bangor School Committee � III-17 " Table 18 CITY OF BANGOR,MAINE Educational Attainment;Persons Age 25 and Over Calendar 2000* Penobscot State of Bangor County Maine Less than ninth grade 5.1% 5.1% 5.4% Ninth to twelfth grade,no diploma 9.2% 9.2% 9.2% High school, including equivalency 38.4% 38.4% 36.2% Some college 19.2% 19.2% 19.0% Associate's degree 7.8% 7.8% 7.4% Bachelor's degree 12.9% 12.9% 14.9% Graduate/professional degree 7.4% 7.4% 7.9% * Latest data available Source:U.S.Census Bureau III-18 � Table 19 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 Wholesalel Insurance Year Employment Goods Goods Construction Utilities Retail Trade Real Estate Services Government 1992 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 13,340 1,540 13,970 11,590 1994 50,300 1,800 2,580 1,710 2,940 13,580 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 i,969 3,007 13,707 1,834 15,935 11,617 1998 53,480 1,956 2,395 2,018 3,080 13,977 1,852 16,434 11,768 1999 55,450 2,060 2,390 2,290 3,400 14,000 1,970 17,980 11,360 2000 57,910 2,I80 2,470 2,270 3,766 14,650 2,180 18,382 12,035 2001 58,570 2,110 2,280 2,340 4,090 14,730 2,170 19,040 11,840 Source:Maine State Depardnent of Labor III-i9 Table 20 CTTY OF BANGOR,MAINE Employment Data Last Ten Calendar Years Calendar Year Labor Force Employment Number Percentage 1992 17,464 16,288 1,1�6 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 16,847 630 3.60% 1999 17,916 17,381 535 2.99% 2000 18,408 17,884 524. 2.85% 2001 18,477 17,921 556 3.01% Source:Bureau of Labor Statistics IiI-20 Table 21 CI3'Y OF BANGOR,MAINE Major Employer,Bangor and Bangor MSA Calendar 2001 Rank Employer Description Employees Location 1 Eastern Maine Medical Center Regional health care center 2,805 Bangor 2 University of Maine Mai�campus,state 2,241 Orono university system 3 City of Bangor Municipal government 1,520 Bangor 4 Bangor Mall Shopping complex 1,350 Bangor 5 St. Joseph's Hospital Health care center 830 Bangor 6 Webber Energy Co. Fuel wholesaler/distributor 750 Bangor 7 Acadia Hospital Residential substance abuse 670 Bangor treatment facility 8 Georgia Pacific Corp. Pulp and tissue producer 603 Old Town 9 Shop& Save Supermarkets Grocery chain 600 Bangor 10 General Electric Corp. Turbine manufacturer 567 Bangor 11 Microdyne Call center 460 Orono 12 Community Health&Counseling Community social service 408 Bangor Services provider 13 Eastern Fine Paper Paper producer 380 Brewer 14 United States Post Office Postal service 350 Bangor 15 Bangor Mental Health Institute Regional residential mental 350 Bangor health center 16 Irving Oil Corp. Fuel wholesaler/distributor 350 Bangor 17 Lemforder Corp. Auto parts dealer 350 Brewer 18 Bangor Publishing Company Newspaper publisher 336 Bangor 19 R.H.Foster Fuel wholesaler/distributor 318 Hampden 20 Bangor Savings Bank Banking/financial services 305 Bangor III-21 Table 22 CITY OF BANGOR,MAINE Residential and Commercial 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* 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 2001 248 4,291.7 198 21,175.2 446 25,466.9 827,173.0 * Source:Maine Bureau of Banking III-22 Table 23 CITY OF BANGOR,MAINE Ten Largest Current Construction Project§ June 30,2002 Estimated Completion Value Rank Project Description Date (000's) 1 Ganneston Construction Addition April,2004 $ 3,300.0 2 NECA Realty Group New construction March,2003 2,116.8 3 Broadway Veterinary Clinic New construction October,2002 598.8 4 Gregory Lovely Addition June,2003 589.7 5 University of Maine Credit Union Addition December,2002 520.0 6 Monitor Builders Inc. Addition Aa�gust, 2002 474.4 7 Automatic Distributors Addition December,2002 350.0 8 State of Maine DEP New construction June,2003 240.9 9 Husson College Addition August, 2003 233.3 - 10 Spectrum Resources New construction August,2002 225.0 Total $ 8,648.9 III-23 Table 24 CITY OF BANGOR,MAINE Various Demographic Data 2000 Census Age Distribution Household Income Owner Occupied Nousing Values Age Category Number Percent Category : Nurober Percent Category Number Percent <24 10,594 33.66% <$I5,000 3,432 24.98% <$50,000 265 5.53% 25-34 4,611 14.65% $15,000-$24,999 2,307 16.79% $50,000-$99,999 2,843 59.29% 35-44 4,921 15.64% $25,000-$34,999 2,138 15.56% $]00,000-$149,999 1,120 2336% 45-54 4,361 13.86% $35,000-$49,999 2,069 15.06% $150,000-$199,999 323 6.74% 55-64 2,555 8.I 1% $50,000-$74,999 1,925 14.01% $200,000-$299,999 203 4.23% >64 4,431 14.08% >$75,000 1,867 13.60.% >$300,OOU 41 0:85% Total 31,473 100.00% 13,738 l 00.00% 4,795 100.00% Median 36 $ 29,740 $ 87,300 Source: U.S.Census Bureau III-24 Table 25 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 1992 670,388 1,178,162 9,336,655 56.90% 7.18% 1993 712,294 1,217,741 9,815,702 58.49% 7.26% 1994 725,513 1,241,600 10,162,703 58.43% 7.14% 1995 731,195 1,269,502 10,414,283 57.60% 7.02% 1996 784;965 1,333,801 10,915,108 58.85% 7.19% 1997 1,020,875 1,473,461 11,323,937 69.28% 9.02% 1998 1,087,277 1,573,243 12,311,991 69.11% 8.83% 1999 1,215,497 1,738,263 13,453,367 69.93% 9.03%. 2000 1,300,292 1,849,715 13,939,682 7030% 9.33% 2001 1,296,936 1;847,194 14,169,119 70.21% 9.15% Source:Maine State Planning Office and Maine Bureau of Taxation III-25 � Table 26 CITY OF BANGOR,MAINE Miscellaneous Data Jane 30,2002 City Employees Full time 502 Part Time 261 Public Education Number of schools 10 Number of teachers 375 Number of students 4,316 Police Protection Number of officers 76 Number of civilian employees 14 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 25 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 1 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 459,000 III-26