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2004 Cit o � Ba n or y , , g - � � ��m ��e�ens�ve �►nnual �n�n�cial � � ,� Re ort p I I ��r �iscal Ye,ar June 30, 2�Q4� ; � -_ . �. , , ,�� .�� . ._ ..�q�j:,�� .� �1�I1�I' ^r '�I ... � ?� k y� : ' i . *� .� "� : �L I� � � r - �. . �`�:� �,, ^ 't-- » +�: .u�r � � t�nt:i�.ta � t � , �14� �,A� , " �{� '�',. i }�� '+`.��.n" ^ . ' ,r i I ��_ � � . _ � � V _ � � � � . ,� ,.� � ., � . ., , .j - �,� �.. -- . -- . . : ,. . i ._ . r "� - � ,,.,,,•••-� - .... I � � � _ __� t �� — �� I ,_ ,l� � i:::,��!��' � ,_ t a,,,��' � �,L L��,-�tu I��tn�'�^,�-�u��En�i3y� __ �.. � � ,y.. � - ... - < ��,::,. , y,�. � ;�� . �<a�. d, �,,,�. �`� x, �-� �,., , �.,. �-- . - � �;h � �` CITY OF BANGOR, MAINE � _:�; :�� Comprehensive Annuat Financial Report _ .�- For the Fiscal Year Ended ]une 30, 2004 :� X ; � � , �� o�. z,hh.s� ... � � '% {t 3a::: Prepared by: Debbie Cyr, Finance Director David Little, Tax Collector/Deputy Treasurer CITY OF BANGOR, MAINE Comprehensive Annual Financial Report Table of Contents For the Fiscal Year Ended 7une 30, 2004 INTRODUCTORY SECTION Paqe Letter of Transmittal I - 1 GFOA Certificate of Achievement I - 7 Organizational Chart I - 8 Listing of Principal Executive Officers I - 9 � , :. F 'u, FINANCIAL SECTION Report of Independent Auditors II - 1 Management's Discussion and Analysis II - 2 Basic Financial Statements: Exhibit Government-wide Financial Statements: Statement of Net Assets ° 1 II - 14 Statement of Activities � . , 2 II - 15 Fund Financial Statements: Balance Sheet - Governmental Funds 3 II - 16 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 4 II - 17 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 5 II - 18 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund 6 II - 19 Statement of Net Assets — Proprietary Funds 7 II - 20 Statement of Revenues, Expenses, and Changes in Net Assets — Proprietary Funds 8 II - 22 Statement of Cash Flows — Proprietary Funds 9 II - 23 Statement of Fiduciary Net Assets — Fiduciary Funds 10 II - 25 Notes to the Financial Statements II - 26 CITY OF BANGOR, MAINE Table of Contents, Continued Schedule Paae � Combining and Individual Fund Statements and Schedules: r Balance Sheet— General Fund A — 1 II - 49 Schedule of Revenues, Expenditures and Changes in Undesignated Fund Balance — Budget and Actual — Budgetary � Basis — General Fund A— 2 II - 50 Combining Balance Sheet— Nonmajor Governmental Funds B — 1 II - 54 Combining Statement of Revenues, Expenditures, and � Changes in Fund Balances — Nonmajor Governmental Funds B — 2 II - 55 Combining Balance Sheet— Nonmajor Special Revenue Funds B — 3 II - 56 ' Combining Statement of Revenues, Expenditures, and �_ , Changes in Fund Balances — Nonmajor Special Revenue Funds B — 4 II - 57 Combining Balance Sheet— Nonmajor Permanent Funds B — 5 II - 58 � Combining Statement of Revenues, Expenditures, and Changes in Fund Balances — Nonmajor Permanent Funds B — 6 II - 59 Schedules of Revenues, Expenditures and Encumbrances — Budget and Actual Budgetary Basis: Sewer Utility Enterprise Fund C — 1 II - 60 Airport Enterprise Fund C — 2 II - 61 ' Park Woods Enterprise Fund C — 3 II - 62 Parking Enterprise Fund C— 4 II - 63 Bass Park Enterprise Fund � C— 5 II - 64 Municipal Golf Course Enterprise Fund C — 6 II - 65 Economic Development Enterprise Fund C — 7 II - 66 , Capital Assets Used in the Operation of Governmental Funds: Schedule by Source D — 1 II - 67 Schedule by Function and Activity D — 2 II - 68 Schedule of Changes by Function and Activity D — 3 II - 69 Other Information: Assessed Valuation, Commitment and Collections E — 1 II - 70 Undesignated Fund Balance Sufficiency Calculation E — 2 II - 71 CITY OF BANGOR, MAINE Table of Contents, Continued STATISTICAL SECTION Tabie Pa4e Government-wide information: Government-wide Expenses by Function 1 III - 1 Government-wide Revenues 2 III - 2 Fund information: General Governmentai Expenditures by Function - Budgetary Basis 3 III - 3 General Governmental Revenues by Source - Budgetary Basis 4 III - 4 General Governmental Expenditures/Other Uses and Revenues/Other Sources - Budgetary Basis 5 III - 5 Property Tax Levies and Collections 6 III - 6 Assessed and Estimated Market Value of Property 7 III - 7 Property Tax Rate — Direct and Overlapping Governments 8 III - 8 Principal Taxpayers , 9 III - 9 Computation of Legal Debt Margin 10 III -10 Ratio of Net General Obligation Debt to Assessed Value and ` Net General Obligatian Debt Per Capita 11 III -11 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Tatal General Fund Expenditures 12 III -12 Computation of Direct and Overlapping Debt �•- 13 III -13 Demographic Statistics 14 III -14 Taxable Retail Sales 15 III -15 Residential and Commercial Building Permits and Bank Deposits 16 III -16 Miscellaneous Statistics 17 III -17 ,,. �� ' �. � � �� q �� ,: �` �Y � � ; �. �� -�� ` �� ; � ., ..: � . � 1k . �': �l. : S" .... �y�, �. ', Z E �; � . �E4� ., a � <3?J - ��h�'��`�� x��! � ;<.:i:..�`,�.L .,��` � ` ,��... ,� � � �R. :;: � �A,�"�, 1 `in ! 4 • � Introductory Section City of B�� O� 207/992-4260 fax 207/945-4446 aine debbie.cyr@bgrme.org www.bangormaine.gov FINANCE DEPARTMENT Deborah A. Cyr, Finance Director December 30, 2004 To the Honorable Chairman, Members of the Bangor City Council, and Citizens of Bangor In accordance with the requirements of both our City Charter and state statutes, the comprehensive annual financial report of the City of Bangor for the fiscal year ended June 30, 2004 is hereby submitted. This is the second year that the City's Finance Department has prepared this report using the new reporting requirements prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City of Bangor. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner that presents fairly the financial position and results of operations of the City of Bangor on a government wide and fund basis. The City is responsible for establishing and maintaining an internal control framework designed to ensure that the assets of the City are protected from loss, theft, and misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the costs of control should not exceed the benefits likely to be derived, and that the ' valuation of costs and benefits requires estimates and judgments by management. The City's financial statements have been audited by Runyon, Kersteen, Ouellette. The goal of the independent audit is to provide reasonable assurance ' that the financial statements are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting ' principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor's unqualified opinion is presented as the first component of the financial section of , this report. . 73 Harlow Street • Bangor, Maine 04401 I - 1 The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984, and the U.S. Office of Management � and Budget's Circular A-133, Audits of States, Local Government and Non-Profit Organizations. Information related to this single audit, including a schedule of federal financial assistance, findings, questioned costs, recommendations, and the independent auditor's reports on the internal control structure and compliance with applicable laws and regulations, are included in a separately issued single audit report. GASB requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of � Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and 5hould be read in conjunction with it. The City's MD&A can be found immediately following the independent auditor's report. Profile of the Government The City of Bangor is situated in eastern Maine, is the Penobscot County seat, and is the third most populous of Maine's 22 cities. 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. Bangor has become a major trade, ' distribution, service, and commercial center for the central, eastern, and northern portions of�the State. 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.properly, affairs, and government; to preserve the public peace, health, and safety; to establish personnel policies; to give effect to any vote of the City; and to authorize the issuance of debt. The Council adopts an annual budget and provides for an annual audit. The City Manager is the chief administrative officer of the City and is appointed by the Council, as are the Assessor, Solicitor, and Clerk. The current City Manager 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 three-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 tlie City Council an estimate of sums required for school purposes for the ensuing municipal year. The City Council makes a single gross I - 2 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 City provides a full range of municipal services including police and fire, highways and sanitation, health and welfare, parks and recreation, education, public transportation, planning, business and economic development, code enforcement and general administrative services. Bangor International Airport, . sanitary sewer services, the Bass Park Complex, parking, golf course, economic development, and a transitional housing complex are accounted for in the City's Enterprise Funds. The City's budgeting process is structured around its fiscal year, which begins on July 1st 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. The Council may modify recommended expenditures and the recommended tax levy. If the Council fails to adopt a 'budget by July ist, 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. The annual budget serves as the foundation for the City's financial planning and control and is prepared by fund, function and department: The City Manager may transfer resources within a department; however, transfers between departments, require Council action. Special Revenue Funds do not have legally adopted budgets, but have program budgets. Budgetary controls are maintained on other governmental funds through formal authorizations by the City Council and through grant agreements. All budgets are legally adopted by the City Council through the passage of an appropriation resolve. Factors Affecting Financial Condition Local economy. 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 ' I - 3 communication, banking, commercial, industrial, healthcare, and governmental sectors of the State. � Bangor has a stable and varied economic base. Major employers include a diversified mix of health care, educational, professional, retail, manufacturing, and governmental entities. For the fifth year running, Bangor's 2003 _ unemployment rate of 3.4% remained virtually unchanged and continues to be below both state and national 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 (downtown) have long established Bangor as the regional hub of the eight-county eastern Maine retail , market. Bangor's retail sector serves an extensive geographic area ranging from eastern Maine to the Canadian Maritimes with a population exceeding 3.1 million. With less than three percent of the State's population, Bangor's share of the State's retail sales has remained in excess of 7% since 1988 and stood at over 9% in 2003. Over the same period, Bangor's share of County sales has grown significantly, to just over 70%. Further evidence of continuing sustained growth is the change in the City's assessed value of real and personal property, which has increased on average 3% per annum for the�last ten years. Tax base growth coupled with the City's focus on controlling budgetary growth, has limited the increase in the City's tax rate to 1.3% from 1995 to 2004. 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. Long-term financial planning and major initiatives. The City prepares a five-year capital plan, that is updated at least biannually as part of the overall budget process. The plan identifies all anticipated capital investments as well as potential funding sources. Recently the City acquired the necessary property to construct a new police station. The current station was built in 1940 and has significant structural issues. It is anticipated that this project will cost approximately $8 million and will break ground in early 2005. Through the relocation of the station, two additional goals will be achieved: improved police visibility and the provision of additional space adjacent to the Maine Court System and County offices to allow for their future expansion. I - 4 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. Infrastructure development has begun in earnest, for which the City has been successful in obtaining partial funding from both State and Federal agencies. 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. In November 2003, a statewide referendum was approved that authorized installation of slot machines, also known as video lottery terminals (VLTs), at ' harness racing facilities in Maine after local voter approval. The City of Bangor is the only location in the State of Maine that has met this requirement. In response, the State has established a Gambling Advisory Board that is working toward licensing and regulating such facilities. The City has entered into a development agreement with Penn National Gaming to redevelop Bangor Raceway and a portion of the surrounding Bass Park property. At this time, Penn National Gaming anticipates breaking ground in 2005, with a 2006 opening date. Under the agreement, the City will receive a percentage of gross slot _ revenue as well as land lease payments and property taxes on new development. This may provide the necessary funding to construct a new arena in downtown Bangor to replace the Bangor Auditorium, which opened in Bass Park in 1954. Over the years, the City has invested significant resources and effort into improving our local environment and protecting our natural resources: In recent years, the City has performed environmental remediation work on the waterfront, a former gas works site, a former laundry/dry cleaning establishment, significant sewer system improvements and a project to direct all de-icing fluid used at Bangor International Airport directly to the treatment plant. In addition, the City continues to acquire property to expand the City forest as both an open space element and in an effort to protect wetlands and watersheds in the Bangor Mall area. During the coming year, the City will be adding a position to specifically address environmental compliance and training issues. The City is also working with all interested parties to resolve land use issues related to the Penjajawoc Marsh area adjacent to the Bangor Mall. Awards and Acknowledgements. 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 )une 30, 2003. This was the seventh consecutive year that the City 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 I - 5 financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to - the GFOA for consideration for another certificate. The preparation of this document would not have been possible without the hard work of all of the City's employees. Each one contributes on a daily basis, simply by carrying out the responsibilities of their positions. , Our sincerest thanks are once again extended to our Citizens and the Bangor - City Council for their continued support for our efforts to further develop the City's financial management and reporting capabilities. We hope that we have once again met their expectations. Respectfully submitted, �� Debbie Cyr Finance Director , I - 6 CITY OF BANGOR ORGANIZATIONAL CHART Revised (11-04) • • CITIZEN CITY CITIZEN COMMISSIONS COUNCIL BOARDS � SO ICITOR ASSESSING CITY CLERK MANAGER ANIMAL ELECTIONS CONTROL VOTER REGISTRATION FINANCE INFRASTRUCTURE AND GOVERNMENT ECONC'"� CTDEV. INTERNAT ONAL �ARK DEVELOPMENT SUPPORT OPERATIONS AIRPORT COMMUNITY CIVIC IAUDITING CODE POLICc �IRE HEALTH DEVELOPMENT CENTER ENFORCEMENT - AND DETECTIVE FIRE ��n��a�F ECONOMIC AUDITORIUM FIGHTING STATE ,TREASURY PLANNING GENERAL DEVELOPMENT PATROL FIRE RELIEF DOWNTOWN FAIR �— - PREVENTION RISK ENGINEERING ADMINISTRATION BUREAU NURSING PROGRAMS �MANAGEMEN - - SERVICES SERVICES PARKING ADMINISTRATION MANAGEMENT �INFORMATION' PUBLIC WORKS DENTAL SERVICES P.QRK� AND ADMINISTRAT�VE CLINIC RE�,REATlON --- SE�'✓o°��5 PURCHASING IHARBOR HUMAN GRANT PARKS RESOURCES PROGRAMS MAINTENANCE ' WASTEWATER LABOR TF3EATMENT RECREATION RELATIONS SEWER GOLF BAT MAINTENANCE COURSE COMMUNITY CONNECTOR FLEET MAINTENANCE CENTRAL SERVICES Certificate of Achievement for Excellence in Financial Reporting Presented to City of Bangor, Maine For its Comprehensive Annual Financial Report � for the Fiscal Year Ended June 30, 2003 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports(CAFRs)achieve the highest standards in government accounting and fmancial reporting. ��1GE 0�� 0�• � t a UIfIFDSfAlFS y W � � � ww',�, S President y'o�SF,�L?oO unc� ��`� Executive Director City of Bangor, Maine Elected Officials and Principal Administrative Officers ]une 30, 2004 City Council Daniel J: Tremble, Mayor Anne E. Allen John H. Cashwell III Peter R. D'Errico Frank J. Farrington , Geoffrey M. Gratwick Richard D. Greene Gerry G.M. Palmer City Staff .Edward A. Barrett, City Manager Benjamin F. Birch, City Assessor Gail E. Campbell, City Clerk Norman Heitmann, City Solictor Debbie Cyr, Finance Director School Committee Martha G. Newman, Chair Susan A. Carlisle James Cox Phyllis S. Guerette Phylllis M. Shubert, Vice Chair Christine Szal Ellen Tobin School Staff Robert Ervin, Superintendent of Schools Alan F. Kochis, Director of Business Services I - 9 Financial Section i i 1 1 1 1 F Ru vc�ov� `1'C-ersteev�. D�ellette Certified PublicAccountants and Business Consultants � Report of Tndependent Auditors City Council City of Bangor,Maine: We have audited the accompanying financial statements of the governmental activities,the business-type activities,each major fund,and the aggregate remaining fund information of the City of Bangor,Maine, I as of and for the year ended June 30,2004,which collectively comprise the City's basic fmancial statements as listed in the table of contents. These financial statements are the responsibility of the City of Bangor,Maine's management. Our responsibility is to express an opinion on these financial statements � based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and � disclosures in the financial statements. An audit also includes assessing the accounting principles used - and significant estimates made by management,as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis�for our opinions. In our opinion,the financial statements referred to above present fairly, in all maierial respects,the respective financial position of the governmental activities,the business-type activities,each major fund, and the aggregate remaining fund information of the City of Bangor,Maine,as of June 30,2004, and the respective changes in finanoial position and cash flows,where applicable,thereof and the respective budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. The Management's Discussion and Analysis, as listed in the table of contents,is not a required part of the basic financial statements but is supplementary infortnation required by the accounting.principles generally accepted in the United States of America. We have applied certain limited procedures,which consisted principally of inquiries of management regarding the methods of ineasurement and presentation of the required supplementary information. However,we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the fmancial statements that collectively comprise the City of Bangor,Maine's basic fmancial statements. The combining statements and individual fund schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the � auditing procedures applied in the audit of the basic financial statements,and in our opinion, is fairly presented, in all material respects,in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic fmancial statements and,accordingly,we express no opinion�on them. � - City Council Page 2 In accordance with Government Auditing Standards,we have also issued a report dated November 24, 2004 on our consideration of the City of Bangor,Maine's internal control over fmancial reporting and on 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. ��, D November 24,.2004 � South Portland,Maine � MANAGEMENT'S DISCUSSION AND ANALYSIS Management of the City of Bangor offers readers of the financial statements this narrative overview and analysis of the financial activities of the City of Bangor for the fiscal year ended June 30, 2004. In addition to comparative information from the government-wide statements, the Ciry is presenting comparative data that is based on key information presented in the fund financial statements. We encourage readers to consider the information presented here in conjunction with additional information that is furnished in our letter of transmittal, which can be found on pages I-1 to I-6 of this report. Financial Highlights • The assets of the City of Bangor exceeded its liabilities at the close of the most recent fiscal year by $191.2 million (net assets). • As of the close of the current fiscal year, the City of Bangor's governmental funds reported combined ending fund balances of $23.0 million, a decrease of $1.6 million in comparison with the prior year. The decrease in fund balance is due to the planned use of$2.9 million from the General Fund's Undesignated Fund Balance and an increase in unexpended bond proceeds available for use in the ensuing year. Approximately 76% of the total amount, or $17.4 million is available for spending at the City's discretion (unreserved fund balance). • The City of Bangor has a fund balance policy. The City strives to maintain a general fund ureserved/undesignated fund balance of 5% - 10% of current expenditures less debt service. At the end of the current fiscal year, unreserved undesignated fund balance for the general fund was $5.9 million, or 8.41% of the general fund � expenditure base. The annual calculation is included within the financial statements as Schedule E-2. � . The total liabilities of the City's governmental and enterprise funds increased by $1.6 million (14.2%) and decreased by $1.7 million (3.0%), respectively. The increase in governmental fund liabilities is due to increases in accounts payable of $800 i thousand, which is merely a timing issue, accrued payroll of $375 thousand, due to , two additional days being accrued, and an increase of $350 thousand in deferred revenue, which is a result of a drop in property tax collection. The decrease in I enterprise fund liabilities is to due to the payment of prior year accounts payable . ', associated with an extensive runway reconstruction project at Bangor International Airport. 'i Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Bangor's basic financial statements. These statements consist of three components: government-wide financial statements, fund financial statements, and notes to the i financial statements. This report also contains other supplementary information in � addition to the basic financial statements themselves. II - 2 � Government-wide financial statements. The government-wide financial statements present the financial picture of the City from the point of view of economic resources measurement and using the accrual basis of accounting, which is similar to , that used by private-sector companies. These statements present governmental activities and business type activities separately. � The statement of net assets includes all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused employee vacation leaves). These statements are divided into two categories: governmental activities and business- type activities. • Governmental activities — Most of the City's basic services are included here, such as the general government, public safety, public works, health and welfare, education, � and parks and recreation. These activities are principally supported by taxes and intergovernmental revenues. • Business-type activities — Currently the City operates the following business-type activities: Bangor International Airport, Sewer Utility, the Bass Park Complex, Parking, Golf Course, Economic Development, and the Park Woods Complex. The government-wide financial statements can be found on pages II-14 to II-15 of this report. Fund fnancial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Bangor, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. • Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial � statements are reported using an� accounting method called modified accrual accounting, that measures cash and all other financial assets that can readily be converted to cash. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate a comparison between �governmental funds and governmental activities. II - 3 The City of Bangor maintains nine individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, community development block grant, and capital projects fund, all of which are considered to be major funds. Data from the other six governmental funds are combined into a single aggregated presentation. Individual , fund data for each of these nonmajor governmental funds is provided in the form of combining statements (Schedule B) elsewhere in this report. The City of Bangor adopts an annual budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget (Schedule A-2). I • Proprietary funds are used to account for essentially the same functions reported as business-type activities in the government-wide financial statements. Enterprise I funds are the only type of proprietary funds maintained by the City. The proprietary fund statements provide the same type of information as the government-wide statements, only in more detail. The City maintains seven individual proprietary funds, all of which are considered to be major. The City of Bangor adopts annual budgets for all its proprietary funds. Budgetary comparison statements have been provided for each proprietary fund to demonstrate compliance with budget (Schedule C1 — C7). • Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Its'statement of net assets is included in this report as Exhibit 10. Notes to the �inancial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages II-26 through II-48 of this report. II -4 Government-wide Financial Analysis The following is a condensed version of the Statement of Net Assets. Governmental Business-type Activities Activities Total 2004 2003 2004 2003 2004 2003 Current&otherassets 35,839,609 35,937,649 34,522,163 33,375,484 70,361,772 69,313,133 Capitalassets, net 62,379,107 55,837,902 186,646,869 189,735,099 249,025,976 245,573,001 Total assets 98,218,716 91,775,551 221,169,032 223,110,583 319,387,748 314,886,134 Long-term debt outstanding 65,222,279 62,268,172 48,831,169 48,615,099 114,053,448 110,883,271 Otherliabilities 11,075,095 9,873,193 3,023,041 5,052,682 14,098,136 14,925,876 Total liabilities 76,297,374 72,141,365 51,854,210 53,667,781 128,151,584 125,809,147 Net assets: Invested in: Capital assets, net of related debt 36,123,882 33,261,947 146,349,268 147,970,359 182,473,150 181,232,306 Restricted 510,433 507,743 - - 510,433 507,743 Unrestricted (14,712,973) (14,135,504) 22,965,554 21,472,443 8,252,581 7,336,939 Totalnetassets 21,921,342 19,634,186 169,314,822. 169,442,802 191,236,164 189,076,988 By far the largest portion of the City's net assets (95% or $182.5 million) reflects its investment in capital assets (i.e. land, buildings, machinery and equipment) less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens. Consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to satisfy these liabilities. Restricted net assets are those resources that are subject to external restrictions on how they may be used. While the remaining balance of unrestricted net assets is $8.3 million, the governmental activity portion shows a deficit of $14.7 million. This is primarily due to $28.1 million in outstanding pension obligation bonds. Although the City made all required contributions to the Maine State Retirement System's (MSRS) Participating Local District plan, an unfunded pension liability existed at the time MSRS created the Consolidated plan. Until fiscal year 2002, this liability was being paid to the MSRS over twenty eight years at a rate of 8%. In fscal year 2002, the City issued bonds to pay off the MSRS resulting in savings of$8.2 million over the life of the debt. At the end of the current fisca,l year, the City is able to report .positive balances in all three categories of net assets for the government as a whole, as well as for most its separate governmental and business-type activities. The exception being the unrestricted governmental activities net assets. The same situation held true for the prior fiscal year. II - 5 Changes in Net Assets The following is a condensed version of the Statement of Activities. Governmental Business-type Activities Activities Total 2004 2003 2004 2003 2004 2003 Revenues Program Revenues Chargesforservices 12,435,549 15,169,744 21,018,131 19,325,452 33,453,680 34,495,196 Operating grants&contributions 24,743,028 21,566,478 - - 24,743,028 21,566,478 Capital grants&contributions 2,098,577 3,814,705 3,376,637 11,274,222 5,475,214 11,274,222 General Revenues Property and othertaxes 44,603,255 42,128,366 - - 44,603,255 42,128,366 Grants and contributions not Restricted to specific programs 4,512,720 4,059,770 - - 4,512,720 4,059,770 Other 912,029 1,532,793 206,665 1,097,155 912,029 1,532,793 Total Revenues 89,305,158 88,271,856 24,601,433 31,696,829 113,906,591119,968,685 Expenses General government 6,487,572 6,060,687 - - 6,487,572 6,060,687 Public safety 12,066,567 11,114,804 - - 12,066,567 11,114,804 Health,welfare and recreation 3,606,827 3,340,989 - - 3,606,827 3,340,989 Public buildings and services 7,360,360 7,050,085 - - 7,360,360 7,050,085 Otheragencies 3,273,003 3,322,395 - - 3,273,003 3,322,395 Education 40,279,055 40,828,756 - - 40,279,055 40,828,756 Unclassified 389,598 2,044,069 - - 389,598 2,044,069 I Restricted grants 6,857,039 6,551,455 = = 6,857,039 6,551,455 Interest on debt 3,083,447 740,077 3,083,447 740,077 Capital maintenance expenses 2,666,118 1,824,489 - - 2,666,118 1,824,489 I Sewer Utility = = 5,751,710 5,744,275 5,751,710 5,744,275 Ai rport 15,060,963 14,489,128 15,060,963 14,489,128 Park Woods - - 531,986 449,873 531,986 449,873 � Parking - - 1,431,983 1,370,737 1,431,983 1,370,737 Bass Park - - 1,935,653 1,944,718 1,935,653 1,944,718 I Municipal Golf Course = = 626,739 575,408 626,739 575,408 Economic Development 338,795 271,047 338,795 271,047 Total Expenses 86,069,586 82,877,806 25,677,829 24,845,186 111,747,415107,722,992 I Excess(deficiency) before special items andtransfers 3,235,572 5,394,050 (1,076,396) 6,851,643 2,159,176 12,245,693 Transfers (948,416) (798,618) 948,416 798,618 - - Change in net assets 2,287,156 4,595,432 (127,980) 7,650,261 2,159,176 12,245,693 I I II - 6 Governmental Activities The cost of all governmental .activities was $86.1 million. As shown on the Statement of Activities, the amount of the total finance by the City's property taxpayers was $39.9, million or 46.3%. Those who directly benefit from the program provided $12.4 million in payments and other governments and organizations subsidized certain activities with operating grants and contributions in the amount of $24.7 million. Capital grants and contributions accounted for $2.1 million. The City also received $10.1 million in other general revenues such as State Revenue Sharing, motor vehicle and boat excise taxes, homestead exemption, and interest earnings. E�enses and Program Revenues - Governmental Activities 45 --- 40 , 35 `. .c. 30 ' 0 25 S � 20 , � 15 ; • 10 � 5 + O bcpenses � w �j c c � �, � ■Revenues � ��° �¢,'��.�a;�� .�;�o �. c'`� � c a�� P°'�c ao��a� C��o�� ° Q3�`co,y �r�� 'Jc �`'�� cc,� �c�� J\a�� ~c�'��ca . c� �c, � �a �'� r� � Q��a Q;� C� Total governmental activities expenses increased 3.8% over the prior year. The largest single increase was in the Public Safety function. This increased was caused by retroactive payments made to fire department. employees as a result of a contract settlement that was effective July 1, 2002. The increase in interest on debt is due to a change in financial statement presentation. For the current fiscal year, all interest paid for both the pension obligation bonds and education bonds are included as interest on debt. In prior years, these amounts were reflected in unclassified and education expense lines respectively. II - 7 Revenues by Source- Governmental Activities 0 50�o io�o �ao O Charges for Services ■Operating Grants& Contributions O Capital Grants&Contriburions O Property Taxes � 28% ■Other General 4 % O Unrestricted Grants& Contributions OOther Unrestricted Total governmental activities revenues increased 1%. Please note that the school department changed classification of certain revenues from charges for services to operating grants and contributions for financial statement purposes. Capital grants and contributions decreased due to a one-time $1.4 million private contribution received in the prior fiscal year for the purpose of constructing a new municipal aquatic facility. The increase in tax revenue is attributable to a $49.1 million increase in taxable valuation and continued growth in the receipt of excise taxes. Business-type Activities Total expenses of business-rype activities increased 3.6%. The majority of this increase is attributable to the operation of the Airport. Total net assets decreased by $128 thousand. The decrease is attributable to revenue reductions. Expenses and Program Revenues- Business-type Activities 16 14 12 � 10 0 g O Expenses � 6 6 Revenues 'v 4 2 0 J�'�� y �co, Q�� o�� F�c� ��` P � �� yh �� \o� Qa � ��, F�` c° �o � II - 8 Revenues by Source- Business-type Activities Unrestricted Investment Earnings Capital Grants and 1% Contributions Transfers 13% 4% --- _ _. _ _. __ -- -- ___------� ■Charges for Services Charges for ■Capital Grants and Services Contributions g2% O Unrestricted Investment Earnings O Transfers ----—J Total business-type activities revenues decreased by $7.1 million. This decrease is attributable to a reduction in capital grants and contributions and the continued historically low market for investments. The reduction in capital grants and contributions is not unexpected. In the prior year, the Airport undertook a significant project to reconstruct its runway that was heavily funded by the Federal Aviation Administration and Department of Defense. The funding of Airport capital projects is cyclical in nature, in that the majority of funding in one year is provided by grants, while the following year's primary funding may be from primarily from passenger facility charges previously collected by the Airport. Financial Analysis of the Government's Funds Governmental funds. The focus of the City's governmental funds reporting is to provide information on near-term inflows, outflows, and balances of expendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of the City's net resources available for spending at the end of the fiscal year. At fiscal year end, the City of Bangor's governmental funds reported combined ending fund balances of $23.0 million, a reduction over prior year's balance of $24.6 million. Approximately 76% of this total ($17.4 million) constitutes unreserved fund balance that is available for spending at the City's discretion. The remainder of fund balance is reserved, indicating that it is not available for new spending because it has already been committed for various purposes including: liquidating contracts and purchase orders of II - 9 prior periods ($3.0 million), as a reserve for potential non-repayment of interfund balances ($1.4 million), or for a variety of other restricted purposes ($.7 million). The general fund is the chief operating fund of the City. At the end of the fiscal year, the unreserved fund balance of the general fund was $11.2 million ($5.3 million of which has been designated by management for subsequent years' expenditures) and the general fund's total fund balance was $13.8 million, which represents a $3.5 million reduction from the prior year's balance of $17.3 million. Over the last few years, the City has consistently held funds in excess of its' 7.5% target. In order to bring the actual balance of undesignated fund balance into a more acceptable range, the City appropriated $3.0 million for capital improvement and community investment purposes during the year. Proprietary funds. The City of Bangor's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The unrestricted net assets of the seven enterprise funds remained relatively unchanged at $169.3 million, this includes a net asset deficit of $1.39 million in the Bass Park Fund, with the prior year total of$169.4 million. During the current year, the Airport, Park Woods, Parking, Bass Park, Municipal Golf Course, and Economic Development enterprise operations individually experienced a decrease in net assets ranging from $13 thousand to $223 thousand, while the increase in net assets for Sewer Utility operations was $510 thousand. General Fund Budgetary Highlights Differences between the original budget and the final amended budget can be briefly summarized as follows: $1.25 million was appropriated from the City's unreserved undesignated fund balance to provide funding for further environmental assessment of the Penobscot River as well as related legal costs and $.3 thousand in unanticipated revenue sharing funds were appropriated to purchase a fire engine. Capital Asset and Debt Administration Capital assets. As of June 30, 2004, the City of Bangor's investment in capital assets for its governmental and business-type activities amounts to $249.0 million (net of accumulated depreciation), an increase of $3.4 million over the prior year. This investment in capital assets includes land, buildings, machinery and equipment, roads, runways and sewer lines. The total increase in the City's investment in capital assets for the current fiscal year was 1.4% (an 11.8% increase for governmental activities and a 1.6% decrease for business-type activities). II - 10 Major capital asset events during the current fiscal year included the following; • Completion of a $1.7 million municipal aquatic center • Investment of $1.5 million in infrastructure on the Ciry's waterfront • Improvements to local roads in the amount of $1.5 million through state and local funding sources • Site acquisition and architectural costs of $1.1 million is support of the impending construction of a new police station • Continuation of the City's aggressive combined sewer overflow program in the amount of$1.8 million • State, federal, local, and defense department funding to finance $2.0 million toward the reconstruction of the runway at Bangor International Airport. Capital Asse� (net of depreciation) Governmental Business-type Activities Activities Land and improvements 5,743,707 4,608,195 Buildings and improvements 31,457,223 17,685,034 Machinery and equipment 3,023,192 2,463,944 Vehicles 4,223,045 _ Infrastructure 3,979,049 37,525,589 Parking structures ' 4,828,702 Aircraft operational assets - 114,264,893 Construction in process 13,952,891 6,270,512 Total 62,379,107 186,646,869 Additional information on the City's capital assets can be found in Note C, Detailed Notes on all funds, of this report. Debt Administration At fiscal year end, the City had a total outstanding bonded debt of $108.9 million, an increase of $3.4 million during the year. The increase is due to $5.5 million in debt that was issued in June 2004 that will be used to refund $5.3 million in debt issued in 1994. The repayment did not occur until August 2004; therefore both issues remained outstanding at year end. II - 11 Bonded Debt Outstanding (in miliions) $as.o O Governmental Activities ■Business-type Activities $60.9 The Ciry's general obligation debt maintained a "AA=� rating from Standard & Poor's and a "Aa3" rating from Moody's for general obligation debt. State statutes limit the amount of general obligation debt a governmental entity may issue to 15% of its total State assessed valuation. The current debt limit for the City is $261.2 million, an amount which is significantly in excess of existing general obligation . debt. Additional information on the City's long-term debt can be found in Note I on pages II- 39 to II-42 of this report. Economic Factors and Next Year's Budget and Rates • The unemployment rate for the City of Bangor for calendar year 2003 is 3.40%, which is comparable to the rate of 3.12% a year ago. This compares favorably to the State's rate of 5.0%. • The City's share of retail sales remains in excess of 9% of total statewide sales and 70% of county sales, while Bangor represents less than 3% of the state's population. • The increased supply of new residential lots that began in 2002 continues in the current fiscal year. Developers continue to construct new housing without a need for the City to significantly improve infrastructure to accommodate this growth. City of Bangor officials considered many factors when adopting the fiscal year 2005 budget. The primary objective was to keep the increase in property taxes to a minimum, given economic conditions and the on-going fiscal problems of the state. Since existing property valuation is adjusted annually to current market conditions, the Council focused on minimizing the individual properry tax bill. Therefore, the Council directed that the increase in the tax levy be limited to the increased taxes resulting from new value. By taking this approach, the Council was able to reduce the City's fiscal year 2005 mill rate to $22.05 per thousand, minimize the tax increases on existing homes, and maintain municipal services. While the so called "Palesky Tax Cap" referendum was defeated in November 2004, the issue of tax reform continues to be a priority in the State of Maine. The Governor is pushing to have legislation in place by the end of January that would significantly reduce the State's overall tax burden over the coming years. Central to that will be the minimization of real estate taxes paid by individual residents. Currently there are several proposals under review, nearly all of which involve some form of a tax cap at the II - 12 municipal level. Both the City Council and management are actively involved in this process at the State level. By focusing on the individual taxpayer and limiting municipal spending growth, the City has, through its actions, adopted an approach to property taxation similar to those under discussion. Management continues to track other areas of revenue and expense concerns as well. On the revenue side, our focus is on the continued low and flat rates of return on investments and the ability of automobile excise tax collections to keep pace with its recent trend of 4.5% average annual increases. As for expenses, insurance costs have proven the most volatile. We anticipate returning to double-digit increases at least for employee health insurance and somewhat lower increases for commercial insurance coverage. Lastly, due to the impending construction of a new police station, the City will be faced with increased debt service in coming years. We anticipate limiting the issuance of general obligation bonds for other projects in the near term in order to minimize the impact on the taxpayer. User rates for both governmental and business-type activities are reviewed on an annual basis to ensure that fee structures are sufficient to cover the cost to provide such services. While many fees are adjusted annually for inflation, no significant increases in user rates are projected at this time. Requests for Information This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City of Bangor's finances. Questions . concerning any of this information should be addressed to the Finance Director, City of Bangor, 73 Harlow Street, Bangor, ME 04401. II - 13 BASIC FINANCIAL STATEMENTS , , . � � � � . � . ; ,: � . , , ; j � ', Exhibit l CITY OF BANGOR,MAINE Statement of Net Assets June 30,2004 Governmental Business-type Activities Activities Total ASSETS Cash and cash equivalents $ 1,360,870 $ 995,234 $ 2,356,104 Investments 15,617,608 23,429,652 39,047,260 Receivables: Accounts(net of allowance of$273,920) 1,220,399 3,634,573 4,854,972 Intergovernmental 2,495,105 3,293,510 5,788,615 Taxes and liens receivable -prior years 829,807 - 829,807 Taxes receivable-current year 1,104,935 - 1,104,935 Deferred special assessments 30,130 89,358 119,488 Due from water district - � � 164,545 164,545 Loans(net of allowance of$130,131) 5,320,875 �� 2,469,680 7,790,555 Interrial balances 1,724,355 (1,724,355) - Inventories 636,231 83,812 720,043 Prepaid items 57,534 56,494 114,028 Other assets 5,441,760 2,029,660 7,471,420 Capital assets,net 62,379,107 186,646,869 249,025,976 Total assets 98,218,716 221,169,032 319,38�,748 LIABILITIES Accounts payable and other current liabilities 3,340,244 2,609,291 5,949,535 Accrued payroll 3,583,983 302,534 3,886,517 Deferred revenues 4,150,868 111,216 4,262,084 Noncurrent liabilities Due within one year 5,907,998 7,545,594 13,453,592 Due in more than one year 59,314,281 41,285,575 100,599,856 Totalliabilities ' 76.,297,374 51,854,210 128,151,584 NET ASSETS Invested in capital assets,net of related debt 36,123,882 146,349,268 182,473,150 Restricted for: . Nonexpendable trust principal 510,433 - 510,433 Unrestricted (14,712,973) 22,965,554 8,252,581 Total net assets $ 21,921,342 $ 169,314,822 $ 191,236,164 See accompanying notes to financial statements. II- 14 - - ' -- - � -- � Exhibit 2 CITY OF BANGOR,MAINE Statement of Activities For the Fiscal Year Ended June 30,2004 „ Net(expense)revenue and changes Pro¢ram Revenues in net assets Operating Capital Primary Government � � � Charges(or grants and grants and Governmental Business-type Functions/programs Expenses services contributions contributions activi[ies activities Total Primary govemment: Govemmental activiries: , General govemment $ 6,487,572 $ 1,103,382 $. 41,612 $ - $ (5,342,578) $ - S (5,342,578) , Publicsafety 12,066,567 1,923,804 36,837 - (t0,105,926) - (IQ(05,926) Health,welfare and recreadon 3,606,827 624,778 1,06I,652 - (1,920,397) ' - (I,920,397) Public buildings and services 7,360,360 3,537,702 64,743 - (3,757,915) - (3,757,915) O[heragencies 3,273,003 - 36,106 - (3,236,897) - (3,236,897) Education 40,279,055 3,857,798 19,223,512 - (17,197,745) - (17,197,745) Unclassified 389,598 19,7I9 - - (369,879) - (369,879) � � Restric[edgranu � 6,857,039 1,368,366. 4,278,566 - (1,2I0,107) - ((,210,107) Interest on debt 3,083,447 - - - (3,083,447) - (3,083,447) Capital maintenance expenses 2 666 118 - - 2 098,577 (567,541) (567,541) Total govemmental activides 86 069 586 12 435 549 24 743,028 2,098,577 (46,792,432) - (46,792,432) Business-rype activities: Sewer Uulity 5,751,710 6,281,870 - 53,536 - 583,696 583,696 Airport 15,060,963 11,398,518 - 3,323,101 - (339,344) (339,344) ParkWoods 531,986 279,588 - - - (252,398) (252,398) Parking 1,431,983 892,820 - - . - (539,163) (539,163) Bass Park 1,935,653 1,253,421 - - - (682,232) (682,232) Municipal Golf Course 626,739 595,852 - - - (30,887) (30,887) Economic Development 338 795 316 062 - - (22,733) (22,733) . Total business-type acuvi6es 25 677 829 21 O18 131 � 3 376 637 (I,283,061) (1,283,061) � � Total primary government $ 111,747,415 $ 33,453,680 $ 24,743,028 $ 5,475,214 (46,792,432) (1,283,061) (48,075,493) Generalrevenues: Property taxes,levied for general puiposes 39,936,976 - 39,936,976 Payment in lieu of taxes 135,000 - 135,000 Excise taxes 4,306,055 - 4,306,055 Franchise fees 225,224 - 225,224 Grants and contributions not restricted to specific programs: Homestead exemption 83I,535 - 831,535 Other Stau aid 27,233 - 27,233 Siate Revenue Sharing 3,653,952 - 3,653,952 Unrestrictedinvestrnenteamings 296,857 206,665 503,522 lndirectcostcharges 483,439 - 483,439 Miscellaneousrevrnues (31,733 - 131,733 Transfers (948,416) 948,416 - Totalgeneralrevenues and transfers 49,079,588 1,155,081 50,234,669 Changeinuetassets 2,287,156 (127,980) 2,159,176 � � � � Ne[assets beginning of year � 19,634,l86 I69,442,802 189,076,988 ' Net assets,end of year $ 21,921,342 $ 169,314,822 $ 191,236,164 � See accampanying notes to financial statemenrs. [I-15 � Exhibit 3 CITY OF BANGOR,MAINE Balance Sheet Governmental Funds June 30,2004 Community Capital Other Total Development Projects Governmentai Governmental �. General Block Grant Fund Funds Funds ASSETS Assets: Cash $ 477,548 $ 160,356 $ 694,918 $ 28>048 $ 1,360,870 Investmenu 12,862,264 - - 2,755,344 15,617,608 Receivables: Taxes 1,934,742 - - - 1,934,742 Accounts(net of allowance of$274,838) 1,007,795 - 187,584 25,020 1,220,399 Interfund loans 1,724,355 - - 329,252 2,053,607 Intergovernmental 1,382,122 95,912 751,629 265,442 2,495,105 '. Loan(net of allowance of$]30,131) 1,246,198 3,055,562 - 1,019,115 5,320,875 Deferred special assessments - - 30,130 - 30,i30 Inventory,at cost 636,231 - - - 636,23] Investrnent of bond pmceeds - - 5,441,760 - 5,441,760 Prepaid items 4,685 2,849 50,000 - 57,534 Total assets $ 21,275,940 $ 3,314,679 S 7,156,021 $ 4,422,221 $ 36,168,861 _ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 1,477,961 $ 162,282 $ 1,001,616 $ 81,880 $ 2,723,739 Accrued wages and benefits payable 3,583,983 - � - 3,583,983 Workers'compensation 607,890 - - - 607,890 Interfund loans payable - - - 329,252 329,252 Defenedrevenues 1,849,871 3,055,562 - 991,858 5,897,29] Due to rehabilitation recipients - 37,164 - - 37,164 Interfund advance - - - - - Totalliabilities 7,519,705 3,255,008 1,001,616 1,402,990 13,179,319 Fund balances: Reserved for: Encumbrances 1,134,318 - 1,892,605 16,998 3,043,921 Prepaid items 4,685 - 50,000 - 54,685 ' InterFund loans 1,432,689 - - - 1,432,689 __ Loans - - - 129,235 129,235 Nonexpendable trust principal - - - S 10,433 510,433 Unreserved: Designated 5,262,236 - - - 5,262,236 , . Undesignated,reported in: ' General fund 5,922,307 - - 5,922,307 Special revenue funds - 59,671 - 1,937,763 1,997,434 Capitalprojects.funds - - 4,211,800 - 4,211,800 Permanent funds - - - 424,802 424,802 Total fund balances 13,756,235 59,671 6,154,405 3,019,231 22,989,542 Total liabilities and fund balances $ 21,275,940 $ 3,314,679 $ 7,156,021 $ 4,422,221 Amounts reported for govemmental acrivities in the statement of net assets are different because: Capital assets used in governmental activides are not financial resources and,therefore,are not reported in the funds. 62,379,107 Other long-term assets are not available to pay for current-period expenditure and,therefore, , are deferred in the funds. 1,746,422 Long-term liabilities,including bonds payable,are not due and payable in the current period and,therefore,are not reported in the funds (65,193,729) Net assets of govemmental funds $ 21,921,342 See accompanying notes to financial statements. II-16 Exhibit 4 j CITY OF BANGOR,MAINE � Statement of Revenues,Expenditures and Changes in Fund Balances Governmental Fuods For the Fiscal Year Ended June 30,2004 Community Capital Other Total Development Projects Governmental Governmental General Block Grant Fund Funds Fuuds Revenues: Taxes $ 42,765,592 $ - $ - $ 1,315,415 $ 44,081,007 Intergovemmental 24,977,182 994,800 2,067,806 3,577,347 31,617,135 Licenses and permits 374,499 - - - 374,499 Chargesforservices ]0,585,424 - � - 450,163 11,035,587 Program income - 445,113 - 17,953 463,066 '` Revenue from use of money and property 976,850 33,742 92,530 59,674 1,162,796 Other 32,659 1,501 30,771 77,380 ]42,311 � Totalrevenues 79,712,206 1,475,156 2,191,107 5,497,932 88,876,401 Expenditures: Current: General govemment 4,619,401 - - - 4,619,401 Pablic safety 12,001,813 - - - 12,001,813 Health,welfare and recreation 3,480,885 - - - 3,480,885 _ Public buildings and services 8,180,067 - - - 8,180,067 Other agencies 3,501,038 - - - 3,501,038 � Education 42,134,253 - - - 42,134,253 Unclassified . 2,317,220 - _ _ 2,317,220 Restrictedgrants � - 1,470,071 - 5,434,115 6,904,186 Capital outlay 837,546 - 9,837,655 - ']0,675,201 Debt service 1,288,610 - - - 1,288,610 Total expenditures 78 360 833 1 470 071 9 837 655 5 434 115 95 ]02 674 Excess(deficiency)of revenues over(under)expenditures 1 351 373 5 O85 (7 646 548) 63 817 (6 226 273) Other financing sources(uses): General obligation debt - - 5,443,400 - � 5,443,400 Saleofassets 131,733 - - - 131,733 , Transfers to other funds (5,060,045) - (58,383) (251,020) (5,369,448) Transfers from other funds 65,217 - 4,317,]38 38,677 4,421,032 Total other financing sources(uses) (4 863 095) 9 702 155 (212 343) 4 626 717 Changes in fund balances (3,511,722) 5,085 2,055,607 (148,526) (1,599,556) Fund balances,beginning of year 17 267 957 54 586 4 098 798 3 16'7 757 24 589 098 • Fund balances,end of year $ . 13,756,235 $ 59,671 $ 6,154,405 $ 3,019,231 $ 22,989,542 See accompanying notes to financial statements. � I II-17 _ Exhibit 5 CITY OF BANGOR,MAINE , Reconciliation of the Statement of Revenues,Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Fiscal Year Ended June 30,2004 Net change in fund balances-total governmental funds(from Exhibit 4) $ (1,599,556) Amounts reported for governmental activities in the statement of ` � activities(Exhibit 2)are different because: � � Governmental funds report capital outlays as expenditures. However,in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. , This is the amount by which capital outlays of$8,757,062 exceeded depreciation expense of$2,215,857 in the current period. 6,541,205 Revenues in the statement of activities that do not provide current financial resouroes are not reported as revenues in the funds. 297,024 Bond proceeds and certain capital leases provide current financial � resources to governmental funds,but issuing debt increases long-term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the governmental funds,but the repayment reduces long-term liabilities in the statement of net assets. 'This is the amount by which proceeds of$5,443,400 exceeded repayments of$2,361,271. (3,082,129) . ' Some expenses reported in the statement of activities do not require ,- the use of current financial resources and,therefore, are not reported as expenditures in goveinmental funds. 130,612 Change in net assets of governmental activities(see Exhibit 2) $ 2,287,156 � See accompanying notes to financial statements. � '� , II- 18 ' Ezhibit 6 CITY OF BANGOR,MAINE Statement of Revenues,Expenditures and Changes in Fund Balance Budget and Actual General Fund For the Fiscal Year Ended June 30,2004 Variance with Final Budget Bud�eted amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 42,537,739 $ 42,537,739 $42,765,592 $ 227,853 Intergovemmental \ 20,217;836 20,582,111 21,394,938 812,827 Licenses and pernvts 388,550 388,550 374,499 (14,051) Charges for services • municipal 6,001,458 6;001,458 6;559,073 557,615 school 3,958,511 3,958,511 3,837,057 (121,454) Fines,forfeits and penalties 25,400 25,400 32,659 7,259 Revenue from use of money and property municipal 734,775 734,775 520,022 (214,753) school - - 20,741 20,74] Total revenues 73,864,269 74,228,544 75,504,581 1,276,037 Expenditures: � Current: Generalgovernment 4,098,934 4,122,364 4,132,399 (]0,035) � Publicsafety 11,687,209 11,687,209 12,100,770 (413,561) Health,welfare and recreation 3,139,727 3,139,727 3,480,419 (340,692) ' Public buildings and services 7,921,452 7,947,991 8,129,610 (181,619) Other agencies 3,465,890 3,515,890 3,508,154 7,736 Education 39,903,083 41,987,217 39,158,980 2,828,237 Debt service 1,664,346 1,614,009 1,611,606 2,403 Unclassified 1,682,882 1,733,219 ],694,293 38,926 Total expenditures 73,563,523 75,747,626 73,816 231 1 931,395 Excess(deficiency)of revenues over expenditures 300,746 (1,519 082) 1,688,350 3,207 432 Other financing sources(uses): Appropriaton from designated fund balance 1,254,015 1,254,015 657,447 (596,568) - Appropriation from undesignated fund balance - 2,965,571 - (2,965,571) Sale of assets 8,000 8,000 44,893 36,893 Transfers to other funds (716,301) (3,946,178) (3,946,178) - Transfers from other funds 48,000 48,000 44,520 (3,480) Operating transfers (894,460) (894 460) (894 460) - Total other financing sources(uses) (300,746) (565 052) (4,093 778) (3,528,726) Excess(deficiency)of revenues and other ! financing sowces over(under)expendiriues and other financing uses $. - $ (2,084,134) (2,405,428) $ (321,294) Undesignated fund balance,beginning of year 8,892,685 ' Change in balances carried (564,950) Undesignated fund balance,end of year . $ 5,922,307 See accompanying notes to financial statements. II- 19 Exhibit 7 CITY OF BANGOR,MAINE Statement of Net Assets Proprietary Funds June 30,2004 Business-type Activities-Enterprise Funds Sewer Bass Municipal Economic Utility Airport Park Parking Park Golf Development Totals Fund Fund Woods Fund Fund Coorse, Fund Carrentyear ASSETS Current assels Cash $ 633,376 $ 30,311 $ 2,181 $ 194,801 S 12,179 S I14,755 $ 7,631 S 995,234 � Investrnenis 5,433,292 3,575,637 - 226,175 - 664,248 - 9,899,352 Accounu receivable 1,538,421 2�81,602 - 1,696 92,318 - - 4,014,037 I.ess allowance for uncollectible accounts (22,601) (329,753) - - (27,110) - - (379,464) Netaccountsreceivable 1,515,820 2,051,849 - 1,696 65,208 - - 3,634,573 Due from other governments - 3,293,5 I0 • - - - - 3,293,510 .Due from water district 164,545 - � - - - � - . - 164,545 � Inventories,at cori - 70,630 - - 13,182 - - 83,812 Prepaid items � 5,805 23,609 - - 27,080 - - 56,494 Total curtent assets 7,752,838 9,045,546 2,181 422,672 117,649 779,003 7,631 18,127,520 Property Land and improvemenu 683,865 - 295,025 - 828,921 1,431,040 1,143,984 4,382,835 Buildingsandimprovements 27,486,624 - 1,933,061 - 5,587,727 238,408 3,600,785 38,846,605 Machinery and equipment 4,985,035 - 22,952 - 144,428 262,066 - 5,414,48i Infrastructure. 44,887,061 - - - - - - - 44,887.061 Aircraftaperationalassets - 209,606,601 - - - - - 209,606,601 Parking sVucmres - - - 9,968,268 - - - 9,968,268 Construction in process 6,081,551 146,961 - - - - 42,000 6,27Q512 84,124,136 209,753,562 2,251,038 9,968,268 6,561,076 1,931,514 4,786,769 319,376,363 Lessaccumulateddepreciation (25,319,604) (95,341,708) (830,578) (5,139,56� (4,758,020) (981,623) (358,395) (132,729,494) � - Net property,plant and equipment 58,804,532 114,411,854 1,420,460 4,828,702 1,803,056 949,891 4,428,374 186,646,869 Noncurrent assets Invesfinents - 13,530,300 - - - - - 13,530,300 Loans receivable - 2,340,022 - - . - - 129,658 2,469,680 Deferted special assessments 89,358 - - - - - - 89,358 Investrnenlolbond proceeds - - - 1,867,877 1,510 - - 1,869,387 DeposiLs - � - � I5,000 - - - - I5,000 Bond issuance costs(net of accumulated � amortization of$269,789) 145,273 - - - - - - 145,273 Totai assets 66,792,001 139,327,722 1,437,641 7,119,251 1,922,215 1,728,894 4,565,663 222,893,387 See accompanying notes to f:nancial statements. Continued on nact page II-20 Exhibit 7(con't) CITY OF BANGOR,MAINE Statement of Net Assets Proprietary Funds Juue 30,2004 Business-type Activities-Enterprise Funds Sewer Bass Municipal Economic Utility Airport Park Parldng Park Golf Development Totals Fund Fund Woods Fund Fund Course Fund Currentyear LIABILI7'IES Current liabilities Accounis payable 178,529 1,718,011 22,703 77,784 31,032 22,571 44,784 2,095,414 Accrued wages and benefits payable 50,656 198,179 3,048 7,117 21,248 22,286 - 302,534 Accrued interest 304,890 45,394 - 82,436 21,607 - 28,321 482,648 ` Workers'compensation 15,101 95,91I - 2,591 3,735 - - 117,338 Deferred revenue - - - 48,317 62,899 - - 111,216 Interfund loans - - _ 52,000 - 1,364,355 - 308,000 1,724,355 General obligation debt payable 4,602,630 346,474 - 2,067,262 122,462 647 45,837 7,185,312 Deferted amount on re(unding (29,182) - - (25,291) - - - (54,473) Other liabilities - 28,291 - 2,938 - - 31,229 Total current liabilities 5,122,624 2,432,260 77,�51 2,260,216 1,630,276 45,504 426,942 11,995,573 Long-tertn liabilities , Workers'compensation 74,899 79,988 - 7,409 6,265 - - 168,561 General obligation debt payable 26,050,333 6,688,707 - 4,913,646 1,656,125 93,511 1,406,756 40,809,078 Deferred amount on tefundiug (77,658) - - (74,911) - - - (152,569) Accrved compensated absences 50,440 179,589 8,036 4,218 18,334 8,256 - 268,873 Other long-tertn liabilities 282,3�1 - 193,061 13,617 - - - 489,049 Total long-term liabilities 26,380,385 6,948,284 201,097 4,863,979 1,680,724 101,767 1,406,756 41,582,992 Totalliabilities 31,503,009 9,380,544 278,848 7,124,195 3,311,000 147,271 1,833,698 53,578,565 NET ASSETS Invested in capital assets,net of related debt 29,186,569 111,226,854 1,420,460 92,372 497,341 949,891 2,975,781 146,349,268 , Unrestricted 6,102,423 18,720,324 (261,667) (97,316) (1,886,126) 631,732 (243,816) 22,965,554 Tatal net assets $ 35,288,992 $ 129,947,178 $ 1,158,793 $ (4,944) $ (1,388,785) $ 1,581,623 $ 2,731,965 $ 169,314,822 See accompanying notes to financial statements. Continued from previous page II-21 Exhibit 8 CITY OF BANGOR,MAINE Statement of Revenues,Expenses and Changes in Net Assets Proprietary Funds For the.Fiscal Year Ended June 30,2004 Business-type Activities-Enterprise Funds � Sewer Bass Municipal Economic . � . Utility Airport . Park Parking Park Golf Development Totals Fund Fund Woods Fand Fund Course Fund Currentyear Operating menues � � Chargaforservicu � $ 6,281,870 $ 71,2ll,290 S 279,588 $ 892,820 $ 1,253,42I $ 595,852 $ 316,062 $ 2Q830,903 Operating e�cpenses � Operating expenses otha than . . depraiation and amortizalion 2,986,843 8,763,120 442,863 659,427 1,678,742 522,742 142�27I , 15,196,008 Depraiationandamorti�tion 1,598,795 5,947,518 89,123 476,381 176,175 98,22� 110,895 8,499,108 ToWoperatingexpenses 4,585,638 14,710,638 531,986 1,137,808 1,854,917 620,963 253,166 23,695,116 � Operatinginwme(loss) 1,696,232 (3,499,348) .(252,398) (244,988) (601,496) (25,111) 62,896 (2,864,213) , Nonoperating revenue(expenscs) Interatincome � 66,911 341,884 ("IS) 4,548 (15) 9,OS8 9,995 432,I03 Unrealized toss on invutrnents . - (225,438) - - - - - (225,438) � � lnterestexpense (1,166,072) (350,325) - (293,942) (80,736) (5,776) (85.629) (1,982,480) Granrslcontributions received for capiul acsas 53,536 3,323,101 .- . - - - - 3,376,637 � 187,228 - ' (233) 186,995 . Misallaneous income(exprnse) - - - . Total nonoperating revrnue(expenses) (1,045,825) 3,276,450 (78) (289,62� (80,751) 3,282 (75,634) 1,787,817 Netincome(Ioss)beforeoperatingtransfers 650,407 (222,898) (252,476) (534,61� (682,247) (21,829) (12,738) (1,076,396) Transfers to other funds (I40,270) - - - - - - (140,270) Transfas from otha funds 131,226 437,656 519,804 1,088,686 Changeinnetassets ' S10,137 (222,898) (121,250) (96,959) (162,443) (21,829) (12,738) (127,980) NetAssets,beginningofyear 34,778,855 130,170,076 1,280,043 92,015 (1,226,342) 1,603,452 2,744,703 169,442,802 1Vet Assets,end of year S 35,288,991 $ 129,947,178 S 1,158,793 S (4,944) S (1,388,785) $ 1,581,623 S 2,731,965 S 169,314,822 See accompanying notes to financial statements. n-zz Exhibit 9 CITY OF BANGOR,MAINE . Statement of Cash Flows-Proprietary Funds For the Fiscal Year Ended June 30,2004 Business-type Activities-Enterprise Funds Sewer Bass Municipal Economfc Utility Afrport Park Parking Park Golf Development , Fund Fund Woods Fund Fund Course FLnd Total Cuh Ilows Gom opera�ing acOvities • Cash rcceived from customers $ 6,335,969 5 ll,080,479 $ 279,588 S �688,920 S 1,299,266 S 595,852 £ 316,062 $ 20,796,136 . Cazhpaid�osuppliersfrngoodsandservices (1,954,22'n (3,970,917) (367,552) (424,571) (894,251) (231,103) (121,679 ) (7>964,300) , Cash paid to employea for services (1,112,412) (4,464,545) (68,921) (167,078) (760,658) (27Q254) (6,863,868) , Ne�cash provided by(used in)operating ac�ivities 3,269,330 2,625,017 (]56,685) 297,271 (355,643) 94,495 194,363 5,967,966 Cazh Oows Gom noncipital financing activities , � Imedimd loans(rcpaymenls) - 25,477 26,000 - . (35,000) - 160,000 176,477 7'ransfers in - - 131,226 437,656 519.804 - - 1,088,686 � Trans(ers om (140,270) - (140,270) . � Net cuh provided by(used in)noncapital � � � � financing aaivitia (140,270) 25,477 157,226 437,656 484,804 160,000 1,124,893 � - Cazh Ilows 6om capital and related financing activities � . Praeeds(rom gcneral obligation bonds .2,118,850 - - 1,664,750 - - - 3,783,600 Acquisition and conswction o(capital asseGs (2,269,830) (5,336,759) - - - (IS,588) (42,000) (7,664,177) Principal paid on general obligation bonds (2,SI2,63'n (333,1�8) - (433,215) (126,737) (445) (237,659) (3,643,271 ) Interal pnid on general obliga�ion bonds (I,I56,756) (361,559) - (265,150) (76,786) (5,776) (83.758) (1,949,785) Proceeds from sale o(equipment - � 209,6p6 _ - . _ - 209,808 � Grant moniesreceived for capital assets 100,576 3,214,945 - - - - � - 3,315,523 Investrnentofbondpracedt 2,I24,60b - (],630,93� 493,669 . Nei cazh provided by(used in)capiml and rolated � financingactivilies (1,595,189) (2,606,743) - (664,552) (202,923) (21,809 ) (363,417) (5,454,633) Cazh Oows Crom investing aztivities � Nelsales(purchases)ofinvestments (1,647,365) (1,018,798) - 110,9I0 I2,678 19,916 - � (2,522,659) Interes�on imatmrnLs 68,545 ll 6,446 (78) 4,748 - (14) 9,058 9,995 208,700 Loan repaymrnts 619,200 183,857 4,898 807,955 Net cash provided by(ustA in)investing aclivities (959,620) (7(8,495) (78) 115,658 12,664 28,974 14,893 (1,506,004) Net increase(decrease)in cazh 574,251 (674,744) 263 ]86,033 (61,098) I01,660 5,859 I32,224 Cash,beginning ofyear 59,125 705,055 1,918 8,766 73,277 13,095 1,772 863,010 Cash,end of year $ 633J76 $ 30,311 ; 2,181 $ 194,601 $ ]2,179 S 114,755 S 7,631 $ 995,234 . Schedule o(noncash invating,capital and financing aztivities: . � During the year,the Airpon Fund had an unrealized loss on inveshnents in Ihe amount o(5225,438. _ � See accompanying notes to financial statements. . Continued on nex�page � � I1-23 Exhibit 9(con't) CITY OF BANGOR,MAINE Statement of Cash Flows-Proprietary Funds For the Fiscal Year Ended June 30,2004 Business-type Activities-Enterprise Funds' Sewer � Bass Municipai Economic Utllity Airport Park Parking Park Golf Development � � Fund Fund Woods Fund Fund Course Fund Total Raonciliation oCopaating income(loss)ro net � cash provided by(used'm)operating acrivities Operatingincome(loss) E 1,696,232 $ (3,499,348) S (252,398) E (244,988) E (601,496) $ (25,111) f 62,896 E (2,864,213) Adjustmrnts to'xoncile operating income(laas)- � to net cash provided by(used in)operating - , activiues Depreciation and amortization 1.598,795 5.947,518 � 89,123 478,381 176.175 98.221 110,895 8,499,108 Provision tor�mcollechble accountt - 127,216 - - � - - - ' 127,216 Changes in azsets and liabilities: � . (Increase)dareaseinaccountsreceivable 103,692 (130,811) - 2,017 , 7,420 - • (17,682) Qnaease)decreaze in due from water distria (49,593) - - - - - - (49,593) � ([ncrease)dareaze in inventories - (4,180) - - (1,128) - - (5,308) � ([ncrease)dxrcaze in prepaid items (ssa) i,zov - - »,��s - - ».�so Increase(decrease)in accounts payabk (94,644) 200,043 6,469 66,OS7 11,229 15,991 ' 2o,S92 225,777 [naease(deaeau)in deCerred revrnue - - - (5,917) 38,424 - , 32,507 � [ncrease(decrease)in other current liabilities 15,682 (I6,630) (79) 1,721 (3,642) 5,394 � 2,446 Totaladjuttrnents 1,573,098 6,124,365 95,513 542,259 245,853 �19,606 131,487 8,832,181 Net cash provided by(used in)operatlng activitles S 3,269,330 S 1,625,017 $ (156,88� $ 297,271 S (355,643) $ 9Cy095 $ 194�87 S Sy67,968 See aaompanying notes to financiaf smtements. Continued 6om previovs page � D-24 Exhibit 10 CITY OF BANGOR,MAINE Statement of Fiduciary Net Assets Fiduciary Funds June 30,2004 Agency Fund ASSETS Cash $ 9,645 Total assets - $ 9,645 LIABILITIES Liabilities: Amounts held for others $ 9,645 Total liabilities $ 9,645 � See accompanying notes to financial statements. , II-25 This page left intentionally blank � INDEX OF NOTES TO FINANCIAL STATEMENTS Summary of Significant Accounting Policies Note � Paae � A Reporting Entity II — 26 B Government-wide and Fund Financial Statements II — 26 C Measurement Focus, Basis of Accounting and Basis of Presentation II — 26 D Assets, Liabilities and Equity II — 29 Stewacdship,Compliance and Accountability , f: A Budgetary Information II— 31 B Reconciliation �ofi 8udgetary Basis Statements II — 32 C Excess of Expenditures Over Appropriations II— 33 D Deficit Fund Equity , . - II — 33 �s - . Detailed Notes on All Funds A Deposits and Investments � . � II -34- B Property Tax � , � � II - 35 C Capital Assets ' ' ' � . II- 35 - D Interfund Transactions � II— 37 E Due From Other Governments II — 37 F Leases . II—38 G Other Assets II —39 H Deferred Revenue II —39 I Long-Term Debt: II —39 7 Fund Balances II —43 Other Information A Risk Management . II —44 B Tax Increment Financing.Districts II —45 C Contingent Liabilities II—46 D Retirement II —46 E Landfill Closure and Postclosure Care Costs II —48 F Subsequent Events II —48 CITY OF BANGOR, MAINE Notes to Basic Financial Statements 7une 30, 2004 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Bangor was incorporated under the laws of the State of Maine in 1834 and operates under a council/manager form of government. In evaluating how to define the reporting entity, for financial reporting purposes, management has considered all potential component units. The criteria used to determine which entities, agencies, commissions, boards and authorities are part of the City's operations include how the budget is adopted, whether debt is secured by general obligation of the City, the• City's duty to cover any deficits that may occur, and supervision over the accounting functions. Based upon all pertinent facts derived from the analysis of the above criteria, it was determined that no additional entities should be included as part of these financial statements. B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the City. For the most part,�.the effect of interFund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The City has elected not to allocate indirect costs among the programs, functions and segments. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. II-26 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafiter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as certain compensated absences and claims and judgments, are recorded only when the payment is due. Those revenues susceptible to accrual are property taxes, interest, and charges for services. Other _ receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. . . The City reports the following major govern'mental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Community Development Block Grant Fund accounts for federal grants obtained and expended under the Housing and Community Development Act of 1974, as amended, for the development of viable urban communities. The Capital Projects Fund accounts for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary or fiduciary funds. The City reports the following major proprietary funds: The Sewer Utility fund accounts for the costs of construction and operation of the sewage treatment plant, the City sewer system, and sewer operation activities, and is self-supported through sewer user fees. The Airport Fund accounts for the operation of Bangor International Airport. The principal sources of revenues are landing fees and the sale of aviation fuel. Other revenue sources include lease payments for the use of terminal space and non-aviation industrial buildings. II-27 CITY OF BANGOR, MAINE Notes to Financiai 5tatements, Continued SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED The Park Woods Fund accounts for the rental of 60 units of surplus housing received from the federal government pursuant to the McKinney Homeless Assistance Act. The principal source of revenue is rental income. The Parking Fund accounts for the operation of the City-owned parking lots and the Pickering Square garage. Revenue sources include monthly lease payments for parking spaces, hourly/daily parking fees and fines and waive�' fees for parking violations. Certain of these facilities are operated under a private management contract. The Bass Park 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 facility is named after the Bass family, which bequeathed the property to the City for recreational purposes. The Municipal Golf Course Fund accounts for.the operation of a 27 hole municipal golf course. Principal revenue sources are season memberships and daily greens fees. The Economic Development 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. Additionally, the City reports the following fund type: Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others. The City's fiduciary funds include the following fund type: Agency funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. The funds are used to account for assets that the City holds for others in an agency capacity. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprieta .ry fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to the same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of interFund activity has been eliminated from the govemment-wide financial statements. Exceptions to this general rule are charges between the City's public services function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. II-28 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's proprietary fund are charges to customers for sales and services. Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues � and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. D. Assets, Liabilities and Equity 1. Deposits and Investments Cash includes amounts in demand deposits as well as short-term investments with a maturity date within three months of the date acquired by the City. State statutes authorize the City to invest in obligations of the U. S. Treasury, commercial paper, corporate bonds and repurchase agreements. Ciry policy prohibits the investment in so-called "derivative instruments". Investments are reported at fair value. Income earned from the investment of pooled cash is allocated to various funds based upon the average cash balance allocated to the fund. 2. interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either"interfund loans" (i.e. current portion of interfund loans) or "advances to/from other funds" (i.e. the non-current portion of interFund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as��internal balances". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. 3. Inventories and Prepaid Items Inventories consist of expendable supplies held for consumption and are valued at cost. Under the consumption method, the costs of inventory items are recognized as expenditures/expenses when II-29 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED used. The consumption method does not require a reserve for inventory and the City has chosen not to have such a reserve. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 4. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the govemment-wide financial statements. Capital assets are defined by the City as assets with an initial; individual cost of more than $10,000 for machinery/equipment/vehicles, $25,000 for land/buildings and improvements and $100,000 for infrastructure and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair.market value at the date of donation. The costs of normal repairs and maintenance that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the primary govemment is depreciated using the straight line method over the assets' estimated useful lives. The range of useful lives used to compute depreciation are as follows: Buildings 25— 50 years Equipment 5— 20 years Infrastructure 10— 50 years Aircraft Operational 5—40 years Parking Structures 10— 20 years 5. Compensated Absences Accumulated vacation or compensatory time .or vested sick leave of governmental funds that is expected to be liquidated with .expendable available resources is reported as an expenditure in respective fund financial statements. All accumulated leave, including that which is not expected to be liquidated with expendable available financial resources, is reported in the government-wide financial statements. Accumulated leave of Enterprise Funds is recorded as an expense and liability of the respective fund as the benefits accrue to employees. No liability is recorded for non-accumulating rights to receive sick pay benefits. II-30 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED 6. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs if material to basic financial statements, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. � 7: Fund Equity � � In the fund financial statements, governmental funds report reservations of fund balance for .amounts that are not available for appropriation or are legally `restricted by outside parties for use for a specifc purpose. Designated fund balances represent tentative plans for future use of financial resources. 8. Allowance for Uncollectible Accounts and Loans Allowances for uncollectible accounts are maintained for all types of receivables, which historically experience uncollectible accounts. Allowances for uncollectible loans are established when the City determines its ability to collect the outstanding loan balance has been impaired. 9. Use of Estimates Preparation of the City's financia► statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent items at the date of the financial statements and the reported amounts of revenues and expenses/expenditures during the reporting period. Actual results could differ from those estimates. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY , A. Budgetary information Budgets are prepared on a modified accrual basis of accounting, with the exception of depreciation within the enterprise funds. Budgets for the General Fund and enterprise funds are formally adopted each year through the passage of an appropriation resolve. Budgets for special revenue and capital projects funds have adopted project-length budgets. Unencumbered appropriations lapse at fiscal year end. II- 31 CITY OF BAI�GOR, MAINE Notes to Financial Statements, Continued STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY,CONTINUED Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting is employed in govemmental 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 commitrnents have not be honored in the current year. For budgetary purposes, encumbrances are treated as expenditures within both govemmental and proprietary fund types. On or before the second Monday in April, the �ty 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 becames 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 Cty Council . made several supplementary budgetary appropriations throughout the year, only two of which were material. The City Council appropriated $1,250,000 from the City's undesignated fund balance to fund further environmental assessment of the Penobscot River as well as legal costs (refer to Note C. Contingent Liabilities, of the Detailed Notes for further information) and $285,000 in unanticipated Revenue Sharing funds to purchase a fire engine. B. Reconciliation of Budgetary Basis Statements The following schedule reconciles the General Fund amounts on the Statement of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual--Budgetary Basis to the amounts on the Statement of Revenues, Expenditures, and Changes in Fund Balances, Governmental Funds: Defidency of revenues over expenditures and other financing sources and uses(Budget) $(2,405,428) Activity in designated fund balance (987,6b5) 2004 encumbrances 1,119,918 2003 encumbrances lapsed (8.038) 2003 encumbrances paid (1.230,509) Excess of revenues and other financing souroes over expenditures and other uses(GAAP) � (3.511J22) 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: II-32 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY, CONTINUED Excess(deficiency)of revenues over expenditures and encumbrances: Sewer $ (1,037,099) Airport 598,506 Park Woods (27,636) Parking (404,420) Bass Park (219,376) Municipal Golf Course (35,753) Economic Development (283 670,� 1 (1,409,448) Nonoperating revenues classification (1,540,749) Investments at market value (225,438) Capital outlay 227,849 Cepital projects (283,223) Cash basis to accrual basis adjustments (1,000 413) Contributed capital depreciation (4,552,872) Principal payments 3,643,271 2004 encumbrances 267,778 2003 encumbrances (27,335) Nonoperating expenses classification . . 2 036,367 Operating loss $ 2.864.Z13) C. Excess of Expenditures Over Appropriations The following General Fund departments were over-expended by the indicated dollar amounts; Council $13,551, Executive $69,582, Assessing $4,971, Legal $1,006, Finance $12,436, Insurance $11,863, Fire $460,555, Health and welfare $308;492, Parks and recreation $32,200, Public buildings and services $181,619, Debt Service $2,571. These over-expenditures were funded by receipt of revenues in excess of appropriation and under-expenditures within otlier General Fund departments. The Sewer and Airport Funds were over-expended on a departmental basis by $1,213 and $370,099, respectively. These over-expenditures were funded by receipt of revenues in excess of appropriations. The Park Woods Fund was over-expended on a departmental basis by $4,180. The deficit was caused by higher than expected maintenance needs. The Bass Park Fund was over-expended on a departmental basis by $60,014. The majority of the deficit was caused by higher than anticipated costs for increased repairs and police services. The Economic Development Fund was over-expended on a departmental basis by $38,438. This deficit is wholly attributable to depreciation expense. D. Deficit Fund Equity The Bass Park Enterprise Fund has a deficit fund equity of$1,388,785. The City Council has ` determined that the facility will either be closed or replaced in the near future. It is anticipated that the Parking Fund deficit of$4,944 is temporary and will reverse itself in the upcoming year. II-33 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS A. Deposits and Investments At year-end, the City's carrying amount of deposits was $2,350,549 and the bank balance was $2,429,861. Of the bank balance, $2,267,639 was covered by federal depository and Travelers insurance or by collateral held by the City in its name, the remaining $162,222 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 yearend: (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. At year end, the City's investments consisted of the following: Carrying Category Value 1 2 3 U.S. Government and agencies $25,082,561 - $25,082,561 - Common stock 573,465 - 573,465 - Commercial paper 996,179 - 996,179 - 26,652,205 - 26,652,205 - Certificate of deposit 50,000 Mutual Funds(1) 19,632,812 - - - Total investments � 46.335.017 - �26.652.205 - (1) Mutual funds and the certificate of deposit are not classified in any of the three above categories because they are not evidenced by securities that exist in physical or book entry form 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 $ 2,365,749 Investments 39,047,260 Investment of bond proceeds(other assets) 7,311.147 48,724,156 Less: Pending items (38,590� 48.685.566 Carrying amount of deposits 2,350,549 Carrying amount of investments 46,335.017 48.685.566 II-34 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED B. Property Tax Property taxes for the current year were levied July 15, 2003, on the assessed value listed as of the prior April 1 for all real and personal property located in the City. Assessed values are periodically established by the City's Assessor at 100% of assumed market value. Taxes were due in two installments: September 15, 2003 and March 15, 2004. Interest was charged at 7.00% on all taxes unpaid as of the due date. Property taxes levied during the year were recorded as receivables at the time the levy was made. The receivables collected during the year and in the first sixty days following the end of the fiscal year have been recorded as revenues. The remaining receivables have been recorded as deferred revenues. Tax liens are placed on real property within twelve months following the tax commitment date if taxes are delinquent. The City has the authority to foreclose on property eighteen months after the filing of the lien if the tax liens and associated costs remain unpaid. C. Capital Assets Capital asset activity for the year ended June 30, 2004 was as follows: Balance Balance ]une 30, June 30, 2003 � Increases Decreases 2004 Governmental activities: Capital assets, not being depreciated: Land $ 5,040,548 - - 5,040,548 Construction in �roQress 12,245,877 7 973 210 6,266 196 13�952,891 Total ca�ital assets,not beina depreciated 17.286,425 7,973,210 6,266 196 18,993 439 Capital assets, being depreciated: Land improvements 1,437,811 435,584 - 1,873,395 Buildings and improvements 40,988,600 5,839,630 - 46,828,230 Machinery and equipment 5,864,091 474,390 - 6,338,481 Vehicles 9,513,024 - - 9,513,024 Infrastrudure 11 217 013 300 444 - 11 517 457 Total capital assets being depreciated 69,020,539 7,050,048 - 76,070,587 Less accumulated depreciation for: Land improvements (1,115,393) (54,843) - (1,170,236) Buildings and improvements (14,512,967) (858,042) - (15,371,009) Machinery and equipment (2,869,188) (446,101) - (3,315,289) Vehicles (4,660,451) (629,526) - (5,289,977) Infrastructure (7,311 063) (227 345) - (7 538 408� Total accumulated depreciation (30,469,062) (2,215,857) - (32,684,919) Total ca�ital assets beina depreciated, net 38,551,477 4 834,191 - 43,385 668 . �Governmental activities caoital acePte=net �55.837.9�2 12.807.40� 6.266.196 62_379_l07 II-35 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED Balance Balance June 30, June 30, 2003 Increases Decreases 2004 Business-type activities: Capital assets, not being depreciated: Land $ 2,279,749 - - 2,279,749 Construction in proQress 15,991,924 4,401,971 14,123,383 6,270,512 Total capital assets, not beinq depreciated 18.271,673 4,401,971 14,123,383 8,550,261 Business-type activities: Capital assets, being depreciated: Land improvements 2,103,086 - - 2,103,086 Buildings and improvements 38,846,605 - - 38,846,605 Machinery and equipment 5,185,392 229,089 - 5,414,481 Infrastructure 44,887,061 - - 44,887,061 Airport operational assets 194,747,713 14,881,468 22,580 209,606,601 Parking structures 9,968,268 - - 9,968.268 Total capital assets being depreciated 295,738,125 15,110,557 22,580 310,826,102 Less accumulated depreciation for: Land improvements � (700,026) (74,614) - (774,640) Buildings and improvements (19,898,407) (1,263,164) - (21,161,571) Machinery and equipment (2,684,728) (265,809) - (2,950,537) Infrastructure ,.- .. (6,912,601) (448,871) - (7,361,472) Aircraft operational assets (89,417,752) (5,923,956) - (95,341,708) Parking structures (4 661.185) (478,381) - (5,139,566) Total accumulated depreciation � (124,274,699) (8,454,795) - (132,729,494) Total capital assets being depreciated, net 171.463,426 6,655,762 22,580 178:096,608 assets,net �189.735,099 11.057.733 14.145.963 186.646,869 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 659,239 Public safety 255,671 Health,welfare and recreation 175,118 Public building and services 323,786 Education 802,043 —aovernmental activities $2.215 Business-type activities: Sewer Utility Fund $1,578,043 Airport Fund 5,923,957 Park Woods 89,123 Parking Fund 478,381 Bass Park Fund 179,175 Municipal Golf Course 98,221 Economic Development Fund 110,895 Total denreciation exnense—business activities �8T454,Z9� II-36 CITI(OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED Construction commitments The government has active construction projects as of June 30, 2004. The projects inciude reconstruction of runways, construction of additional infrastructure on the waterfront, continuation of the combined sewer overtlow program, and the engineering associated with a new police station. D. Interfund Transactions Individual fund interfund receivable and payable transactions are deseribed in the Summary of Significant Accounting Poticies Note D. 2. As of June 30, 2004 the balances were as follows: . Receivable Payable General Fund $ 1,724,355 $ - Other HUD Funds 329,252 - Grant Fund - 171,710 Other Special Revenue Funds - 157,542 Park Woods Fund - 52,000 Bass Park Fund - 1,364,355 Economic Development - 308,000 $._2,.SZ5�,607 $2.053.607 Individual fund transfers to and from other funds for the fiscal year ended June 30, 2004 are comprised primarily of transfers from fund balances to fund capital projects and to provide operating subsidies to certain proprietary funds. Transfers to Transfer from General Fund $ 5,060,045 . $ 65,217 Special Revenue Funds 164,520 33,244 Capital Projects Fund 58,383 4,317,138 Proprietary Funds 140,270 1,088,686 Permanent Funds 86,500 5.433 5.509J18 � 5.509J1 E. Due From Other Governments Due from other governments is comprised of the following amounts at]une 30, 2004: Federal State of Government Maine Other Total General Fund $ 16,815 $ 1,165,545 $ 199;762 $ 1,382,122 Special Revenue Funds 350,054 11,300 - 361,354 Capital Projects Fund 751,629 - - 751,629 Proprietary Funds 3,206,460 87,050 - 3,293,510 Of the General Fund's $1,165,545 due from State of Maine, $658,965 represents school grant and State agency billings, $392,223 is due from the Department of Transportation and $47,363 represents general assistance claims. Amounts due from other communities for tuition reimbursement to Bangor accounts for $148,093 of the Due from Other in the General Fund. II-37 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED F. Leases Operating Leases The Airport and Economic Development Proprietary Funds are the lessors of various buildings and land parcels under operating leases expiring in various years through 2039 and 2034, respectively. Minimum future rentals to be received on noncancelable leases as of June 30, 2004 are: Fiscal year ending Economic June 30, Air ort Development 2005 $ 2,281,753 $ 301,555 2006 2,000,013 286,316 2007 1,828,319 249,140 2008 1,790,466 213,772 2009 939,354 219,289 - Subsequent to 2009 6 377 437 2,236,462 $ 15.217.342 $ 3.506,534 Minimum future rentals do not include contingent rentals, which may be received as stipulated in the lease contracts. The Airport received $1,507,794 in contingent rentals in fiscal year 2004. Capital Leases , The General Fund has entered into lease agreements as lessee for financing the acquisition of copiers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum leases payments as of the inception date. 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, 2004. Fiscal year ending ' June 30, General Fund 2005 $ 74,948 2006 71,457 2007 71,457 Minimum lease payments 217,862 Less: interest 20,031 Present value of minimum lease payments 19� II-38 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED G. Other Assets Other assets are comprised of the following: Capital Proprietary Projects Fund Fund Investment of bond proceeds $ 5,441,760 $ 1,869,387 Deposits . . - 15,000 Bond issuance costs (net of amortization) - 145.273 Total $ 5.441.760 $ 2.029.660 H. Deferred Revenue General Fund deferred revenue consists of $1,746,423 in deferred taxes and $103,448 of advance deposits. Community Development Block Grant and Other Governmental Funds deferred revenue of $3,055,562 and $991,858, respectively, represents future revenue equal to loans made pursuant to the Cornmunity 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. Proprietary Funds deferred revenue of $111,216 represents advance deposits. I. Long-Term Debt General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital additions. General obligation bonds have been issued for both governmental and business-type activities. These bonds are reported in the proprietary funds if they are expected .to be repaid from proprietary fund revenues. In addition, general obligation bonds have been issued to refund general obligation bonds and extinguish an existing retirement liability. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bonds. The original amount of general obligation bonds issued in prior years was $137,163,400. The following is a summary of general obligation bond and note transactions of the City for the fiscal year ended June 30, 2004: Bonds and notes payable at June 30, 2003 $ 105,523,084 Add: principal additions 9,227,000 Less: principal repayments 5,$76,215 Bonds and notes payable at June 30, 2004 108.873.869 II-39 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED . Bonds and notes payable at]une 30, 2004 are comprised of the following: Flscal year Interest Govemmental activities Business-type Total of maturitv rate Citv School activities ]une 30.2004 Long-term debt: Public improvements-1988 2008 7.37%-8.60% $ - $ - $ 400,000$ 400,000 Treatment Plant 2011 7.00%-7.10% - - 8,550,000 8,550,000 Combined sewer overfiow 2014 2.46% - - 932,000 932,000 Combined sewer overflow 2014 2.45% - - 993,000 993,000 Refunding bonds 2011 2.35%-5.20% 206,453 1,752,895 4,415,652 6,375,000 Public improvements-1996 2016 5.05%-5.85% 470,000 - - 470,000 Combined sewer overflow 2017 3.52% - - 2,081,408 2,081,408 Tax increment financing note* 2016 6.00%-6.90% 770,000 - - 770,000 Public improvements—1996 2017 5.35%-6.50% 1,105,000 - - 1,105,000 Combined sewer overflow 2018 3.03% - - 1,823,563 1,823,563 Public improvements—1997 2018 4.875%-5.3% 2,608,280 2,765,000 1,331,720 6,705,000 Tax increment financing note* 2018 6.19% 241,000 - - 241,000 Public improvement-1999 2019 4.20% 1,295,900 - 1,134,100 2,430,000 Maine Business Enter Park 2018 5.00% - - 206,396 206,396 Public improvements—2000 2020 5.25%-5.90% 1,262,010 - 1,352,990 2,615,000 Public improvements—2001 2021 4.25%-5.00% 1,199,000 223,000 3,648,000 5,070,000 . State Revolving Renovation—School 2011 0.00% - 398,020 - 398,020• Public improvements note* 201z 6.25% 661,715 - - 661,715 Public improvements—2002 2022 3.50%-4.75% 4,290,000 4,050,000 1,645,000 9,985,000 Pension obligation bonds 2026 3.06%-6.45% 26,461,811 1,678,661 5,629,528 33,770,000 Refunding bonds 2024 3.06%-3.47% 680,078 3,095,078 5,689,844 9,465,000 Combined sewer overflow 2023 1.94% - - 2,867,775 2,867,775 State Revolving Renovation—School 2008 0.00% - 49,882 - 49,882 Public improvements note* 2012 2.50%-4.00% - - 263,616 263,616 Tax increment finandng note* 2015 2.50%-4.00% 172,296 - - 172,296 Briggs Building note 2023 6.50% - - 1,246,198 1,246,198 Refunding/Pubiic Improvements-2004 2023 2.50%-4.80% _ 3 967,750 1,475.650 3,783.600 9.227,000 Total bonds and notes payable 45.391.293 �15.488.186 �47.994.390 �108.87 ,$�,Q * Fve series of general obligation notes aggregating$2,108,627 are held by the City's Airport Fund at fixed,taxable 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 managemenYs intention,should a put occur,to fund it by passing the note along to its Sewer Fund,where it will be converted to a tt�ree 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 Governmental Activities Business-Type Activities June 30, Principal Interest .Principal Interest 2005 $ 4,110,250$ 3,120,028 $ 7,185,313 $ 1,809,006 2006 2,593,865 3,005,199 3,563,130 1,600,178 2007 2,684,642 2,910,142 3,590,838 1,475,700 2008 2,783,587 2,806,715 3,616,293 1,352,772 2009 2,865,680 2,694,455 3,541,845 1,223,035 2010-2014 13,659,270 11,605,518 14,310,061 4,306,983 2015-2019 13,032,241 8,133,605 6,705,631 2,398,206 2020-2024 13,112,494 4,412,600 4,258,729 1,015,234 2025-2027 6,037,450 593,244 1,222,550 120,126 Total 60.879.479 $ 39,281.506$47,994.390 $ 15.301,240 II-40 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, 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, 2004, the statutory limit for the City was $261,240,000. The City's outstanding long-term debt of $108,873,869 at June 30, 2004 was within the statutory limit. Advance and Current 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, 2004, $1,919,400 and $4,315,600 of the governmental and business-type activities, respectively, are considered defeased. Within the Proprietary Funds the advance refunding transaction gave rise to a deferred amount on refunding. The deferred amount on refunding is being amortized over the remaining life of the original bonds. In June 2004, the City issued $5,470,000 of general obligation bonds for a current refunding of a 1994 issue in the amount of $5,330,000. The refunding payment did not occur until August 2004. As of June 30, 2004 both issues remain outstanding. The refunding was undertaken to reduce total future debt service payments over the next 7 years. The final maturity date of the original issue was not e�ended. Authorized and Unissued On April 26, 2004, the City Council authorized the issuance of up to $7,000,000 in general obligations bonds for the purpose of constructing a new Police Station. As of June 30, 2004, $4,000,000 remains authorized and unissued. The City expects to begin construction in the spring of 2005 and will issue the remaining bonds on as needed basis throughout the estimated eighteen month construction schedule. On May 10, 2004, the City Council authorized the issuance of up to $2,650,000 in general obligations bonds. The proceeds from which will provide funds to finance eligible combined sewer overtlow projects through the State Revolving Loan Fund Program administered jointly by the Maine Municipal Bond Bank and the State of Maine. On June 28, 2004, the City Council authorized the issuance of up to $3,250,000 in general obligation bonds for the purpose of renovating, rehabilitating, reconstructing, improving and upgrading the Grants Building. It is anticipated that upon completion the building will be leased to, used by or conveyed to the University of Maine System or an affiliate thereof. II-41 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED Overlapping Debt In addition to the bonds and notes payable, the Ciry is contingently responsible for a proportionate share of the following overlapping debt as of June 30, 2004: Percentage Debt Applicable City's Share Unit Outstanding to the City of Debt General obligation bonds $108,873,869 . 100.00% $108,873,869 Penobscot County 765,000 23.57% 180,310 109,638.869 $109.054,179 This results in a ratio of City and overlapping debt to April 1, 2003 assessed valuation of 6.27%. Changes in Long-term Liabilities Long-term liability activity for the year ended June 30, 2004, was as follows: Balance Balance Due within ]une 30,2003 Additions Reductions )une 30. 2004 one year Governmental activities: General obligation debt $ 57,669,023 5,443,400 2,232,944 60,879,479 4,110,250 Obligations under capital leases 326,159 - 128,327 197,832 65,095 Accrued compensated absences 1,759,562 1,312,096 1,257,319 1,814,339 1,124,763 Long-term obligation for self insurance 2,513,428 273,211 456,010 2,330,629 607,890 Governmental activities lona-term liabilities S 62,268.172 7.028.707 4.074.600 65.222.279 5.907.998 Business type activities: General obligation debt 47,854,061 3,783,600 3,643,271 47,994,390 7,185,312 Accrued compensated absences 257,883 347,940 336,950 268,873 297,417 Long-term obligation for self insurance 285,899 40,470 40,470 285,899 117,338 Deferred amount on refunding (269,756) - (62,714) (207,042) (54,473) Other 487 012 2 037 - 489 049 - Business type activities lona-term liabilities S 48.615.099 4.174.047 3,957,�977 48_831.169 7.545.594 II-42 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED J. Fund Balances Permanent Funds As of June 30, 2004, the fund balances by purpose were as foilows: Restricted Unrestricted Nonexpendable Permanent , Trust Princi�al Funds Cemetery $ 361,265 $ 30,319 Parks 14,538 125,582 City Missionary 16,511 49,825 Education 44,138 53,749 Aid for Aged Women 43,067 61,362 Other Purposes 30,914 103,965 Total nonmajor permanent funds $ 510,433 � $ 424,802 � Dedicated Revenue Funds-Special Revenue Funds As of]une 30, 2004, the fund balances by purpose were as follows: Dental Clinic $ 108,604 Preservation of Records 124 Adopt a Park 82,309 Park Woods Children 2,886 City Forest 126,812 BFD Imaging 7,749 Park Woods Complex 653,968 US5 Maine Monument 12,707 Kenduskeag Stream Trail 350 Skate Park 2,8$9 Tricentennial 554 Total expendable trusts 952 II-43 CITY OF BANGOR, MAINE Not�s to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED Designated Fund Balance _ Designated fund balance of the General �und at June 30, 2004 consists of amounts, which the City intends to use for the following purposes: Departmental balances carried forward $ 37,000 School department— regular 2,024,147 ad(�It education �,819 reading assessment , 19,655 special revenue 354,741 school lunch 55,947 trust and agency 92•774 Total balances carried 2.649,083 Accrued summer teacher payroll (2,392,268) Pooled equipment 944,617 � � Bus equipment �. 24,806 Fre equipment 40,452 Improvement 551,230 Self insurance 1,722,740 Cameron stadium 118,429 Landfill closure . 8,917 Cascade park maintenance 57,107 Demolition 1,2� PEG capital support 62,570 Pickering Square development district 90,513 MSRS Consolidated Plan 551,500 Parks& Rec Improvement (8�,922) Amounts due from Bangor Nursing &Rehabilitation Cente� 217,811 Pension obligation bond savings 484,461 Arbitrage rebate 216,926 5.262.236 OTHER INFORMATION A. Risk Management The City is exposed to various risks of loss related to torts, theft of, damage to and destrvction of assets, errors and omissions, injuries to employees, and natural disasters for which the City either carries commercial insurance or is self—insured. The City currently reports all of its risk management activities in the General and Proprietary Funds. Claims expenditure, liabilifies and reserves are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably esamated. These losses include an estimate of claims that have been incurred but not reported. II-44 � CITY OF BANGOR, MAINE Notes to Financial Statements, Continued OTHER INFORMATION, CONTINUED 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, 2004, 2003 and 2002. The City is self-insured for its workers' compensation liability. Reserves are actuarially determined each year to assure funding adequacy. In addifion, the City purchases excess workers' compensation insurance to limit its financial risk. At June 30, 2004, the amount of self-insurance liabilities was $2,616,528. . This liability is the City's best estimate based on available information. Changes in the reported liabilities since July 1, 2002 resulted from the following: � Workers' All other self- Compensation insured risks Total Unpaid claims as of July 1, 2002 $ 2,914,900 $ 16,975 $ 2,931,875 Incurred claims 154,363 - 154,363 Payments (333,745) (651) (334,396) Changes in estimates and other adjustments 36,386 11,099 47,485 Unpaid claims as of July 1, 2003 2,771,904 27,423 2,799,327 Incurred claims 177,957 - 177,957 � Payments (455,604) (406) (456,010) Changes in estimates and other adjustments (32,015) 127,269 95,254 Unpaid claims as of June 30, 2004 2.462.242 $ 154.286 $ 2,616.528 B. Tax Increment Financing Districts The City has established tax increment financing districts, all of which dedicate a portion of the incremental increase in real estate and/or personal property tax revenues over staggered twenty year periods for the following purposes: B..I.A. Municipal Development District No. 1 — Partially financed $27.5 million dollars of capital expenditures at manufacturing facilities leased by General Electric Company. Main Street Municipal Development District — Assisted Penobscot Development Limited Liability Company in financing the extraordinary costs of acquisition and environmental remediation of the former Gaswor.ks 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. Pickerinq Square Municipal Development District — Assisted Realty Resources Chartered in a major redevelopment project that converted the former Freese's department store building into affordable housing units. II-45 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued OTHER INFORMATION, CONTINUED C. Contingent Liabilities In February 1998, the City was served Notification of Potential Liabiliry 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. At this time, the group is in the process of � implementing the remedy for the ofF-site area and continue to negotiate with the EPA for the final remedy of the on-site area. The parties hope to have a decision on their technical impracticability waiver by the end of 2005, with implementation in 2006. At this point it is not possible to estimate the cost of designing and implementing the final remedy. In 2002, the City filed suit against a potentially responsible party to force cleanup of contamination of the Penobscot River bottom due to the inability to reach settlement. The matter is now pending in the U.S. District Court. The Ciry is a party to various other lawsuits. Although the outcome of these lawsuits is not presently determinable, it is �the opinion of the City's counsel that resolution of these matters will not have a , material adverse effect on the financial condition of the City. D. Retirement The City of Bangor provides retirement pensions for its employees through a number of vehicles, including a defined contribution plan, defined benefit pension plan and social security. Defined Contribution Plan Description of the Plan - The City provides pension benefits for certain employees through a 401(a) defined contribution plan administered by ICMA/RC. In addition certain full-time employees are covered through both a 401 (a) and 457 Deferred Compensation Plans (DCP) also administered by ' ICMA/RC. In a DCP, benefits depend solely on amounts contributed to the plan plus investment earnings. Covered employees are eligible to participate and are fully vested from the date of employment. Funding Policv— 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 2004 covered payroll was $7,081,753 and City contributions were $609,181. For those plan members that have employment contracts, the City contributes at various rates from 8% - 15% of annual earnings. The covered payroll and Ciry contributions for those employees with employment contracts approximated $502,518 and $55,411 respectively, in fiscal year 2004. Defined Benefit Pension Plan Description of the Plan —The City contributes to the Maine State Retirement System Consolidated Plan, a cost sharing multiple-employer retirement system established by the Maine State legislature. The Maine State Retirement System provides retirement and disability benefits, annual cost-of-living II-46 CITY OF BANGOR, MAINE Notes to Financiai Statements, Continued OTHER INFORMATION, CONTINUED � 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. � Fundin4 Policy— Plan members are required to contribute 6.5% of their annual covered salary and the -- ,City is required to contribute an actuarially determined rate. The current rate ranges from 2.80% to � 6.50% of annual covered payroll. The contribution rates of plan members and the City are established and may be amended by the Maine State Retirement System Board of Trustees. The City's contributions to the Maine State Retirement System Consolidated Plan for the years ended June 30, 2004, Z003 and 2002 were $667,705, $663,217, and $693,220 respectively, equal to the required contributions for each year. �� Teachers Group � Description of the Plan - All school teachers, plus other qualified educators, participate in the Maine State Retirement System's teacher group. The teacher's group is a cost-sharing plan with a special � ` funding situation, established by the Maine State legFslature. The Maine State Retirement System provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to E plan members and beneficiaries. The authority to establish and amend benefit pro.visions 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. 1 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. Funding Policx — 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 $3,545,777 (17.62%) for the fiscal year 2004: This amount has been reported as an intergovernmental revenue and education expenditure in the GAAP basis financial statements. There is no contribution required by the school department except for federally funded teachers, for which they contributed 17.62% of their compensation. This cost is charged to the applicable grant. Deferred Compensation Plan The City ofFers its employees a deferred compensation plan created in accordance with Internal Revenue (IRC) Section 457. The plan permits participating employees to defer a portion of their salary - � u�til future years. The deferred compensation is not available to employees until termination, , retirement, death, or unforeseeable emergency. � Social Security The City does not have a section 218 agreement to provide full social security coverage to its � - employees. The City does provide full social security coverage to part-time, seasonal and temporary , II-47 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued f OTHER INFORMATION, CONTINUED �� employees under the Omnibus Budget Reconciliation Act of 1990, and Internal Revenue Service regulations, which became effective July 1, 1991. E. Landfill Closure and Postclosure Care Costs � Closure of the City's Kittredge Road landfill was completed during the fiscal year ended June 30, 2000. �__ � Potential postclosure costs have been deemed immaterial, and therefore no liability for these amounts has been accrued. All necessary postclosure costs will be funded from the annual operating budget. �~ F. Subsequent Events On August 23, 2004, the City Council authorized the issuance of $650,000 in general obligation bonds for the purpose of funding the City's annual fleet replacement. �� In December 2004, the City settled a Resource Conservation and Recovery Act enforcement action brought by the U.S. EPA concerning the City's alleged non-compliance with hazardous waste and wastewater discharge management laws. The settlement requires the Ciry to remain in compliance with such laws, complete an environmentally beneficial project involving converting the City's diesel- � powered equipment to bio-diesel, investigate and possibly re-route various drainage systems in City- owned buildings, investigate potential fuel containment at the tank farm and fuel distribution system at Bangor International Airport, and pay a fine of $59,568. The City is now in full compliance with the Complaint and Order. -. 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, 2004, this balance exceeded the City policy of 7.5% by � $639,529. 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 funds to fund further environmental assessment of the Penobscot river as well as legal costs, $125,000 for storm water II related improvements, and $50,000 to increase the City's self-insurance reserve. � ' II-48 , _ GENERAL FUND ' The General Fund is used to account for resources traditionally associated with the government, which are not r�quired legally or by sound financial management, to be accounted for in-another,fund. _ • ; � ,: , � , � � � i , . ' �y . ' . � � � . 1 Schedule A-1 CITY OF BANGOR,MAINE Balance Sheet General Fund � , _ June 30,2004 � ASSETS , Cash $ 477,548 Investments 12,862,264 �� Receivables: Taxes 1,934,742 _ Accounts(net of allowance of$273,920) 1,007,795 , Interfund loans 1,724,355 � Intergovemmental 1,382,122 � Loans 1,246,198 Inventory, at cost 636,231 `� Prepaid items 4,685 - Total assets $ 21,275,940 �� LIABILITIES AND FUND BALANCE Liabilities ; i Accounts payable $ 1,477,961 Accrued wages and benefits payable 3,583,983 ` Workers'compensation 607,890 r"' Deferred revenue 1,849,871 � Total liabilities 7,519,705 Fund balance ' Reserved for: Encumbrances 1,134,318 i Prepaid items 4,685 Interfund loans 1,432,689 � Unreserved: Designated 5,262,236 Undesignated 5,922,307 ; Total fund balance 13,756,235 � Total liabilities and fund balance $ 21,275,940 , � II-49 Schedule A-2 CITY OF BANGOR,MAINE Schedule.of Revenues,Expenditures and Changes in Undesignated � Fund Balance-Budget and Actual-Budgetary Basis ' General Fund � For the Fiscal Year Ended June 30,2004 � Balances Variance � Carried � 7/1/2003 Budget Actual Surplus Carried Revenues . " ` Taxes Real and personal property $ - $ 39,564,654 $ 39,727,173 $ 162,519 $ - Change in deferred property tax - - (297,024) (297,024) - ,- Taxincrementfinancingdistrict - (1,315,415) (1,3]5,415) - - - Payment in lieu of taxes - 135,000 135,000 - - Excise - 3,903,500 4,306,055 402,555 - y Intereston delinquenttaxes � - 250,000 . 209,803 (40,197) - Total taxes - 42,537,739 42,765,592 227,853 - Intergovernmental � State revenue sharing - 3,433,460 3,653,952 220,492 - School subsidy - 11,466,272 1 i,466,272 - - - Other- municipal - 1,952,044 2,063,251 111,207 - school - 3,730,335 4,211,463 - 481,128 Total intergovemmental - 20,582,111 21,394,938 331,699 481,128 Otherrevenue Licenses and permits - 388,550 374,499 (14,051) - Charges for service- municipal - 6,001,458 6,559,073 557,615 - � school - 3,958,511 3,837,057 - (121,454) Fines,fodeits and penalties - 25,400 32,659 7,259 - ' Revenue from use of money and property- municipal - 734,775 520,022 (214,753) - school - - 20,741 - 20,741 Total other 11,108,694 11;344,051 336,070 (100,713) Total revenues - 74,228,544 75,504,581 895,622 380,415 II- 50 Schedule A-2 (con't) � CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Changes in Undesignated Fund Balance-Budget and Actual-Budgetary Basis General Fund � For the Fiscal Year Ended June 30,2004 �-�� Balances Variance Carried ?/1/2003 Budget Actual Surplus Carried Expenditures General govemment Council - 32,600 46,151 (13,551) - { Executive - 682,020 751,602 (69,582) - i Human resources - 113,724 83,663 5,061 25,000 , City clerk - 385,243 374,344 10,899 - � Assessing - 322,849 327,820 (4,971) - t Legal - 231,070 232,076 (1,006) - Finance - 1,217,875 1,230,311 (12,436) - Insurance - ]09,153 121,016 (11,863) - Planning,econ dev,code enforcement � - 1,027,830 965,416 50,414 12,000 Total general government - 4,122,364 4,132,399 (47,035) 37,000 Public safety Police - 5,767,425 5,720,431 46,994 = � Fire - 5,919,784 6,380,339 (460,555) - Total public safety - 11,687,209 12,100,770 (413,561) - Health,welfare and recreation - Health and welfare - 2,026,315 2,334,807 (308,492) - Parks and recreation - 1,113,412 1,145,612 (32,200) - , Total health,welfare and recreation - 3,139,727 3,480,419 (340,692) - Public buildings and services - 7,947,991 8,129,610 (181,619) - � , II-51 Schedule A-2(con't) � CITY OF BANGOR,MA1NE Schedule of Revenues,Expenditures and Changes in Undesignated Fund Balance-Budget and Actual-Budgetary Basis ' General Fund � For the Fiscal Year Ended June 30,2004. Balances Variance Carried 7/1/2003 Budget Actual Surplus Carried 1,.� Expenditures,continued Other agencies , County tax - 1,781,440 1,781,440 - - Private school services = ]60,082 158,748 1,334 - Downtown Development Disfict - 40,581 40,581 - - � Public library - 1,303,207 1,303,207 - - �- Other agencies - 230,580 224,178 6,402 - Total other agencies - 3,515,890 3,508,154 7,736 - Education Regulaz 1,552,756 34,021,669 33,385,335 - 2,189,090 Adulteducation 44,134 655,903 568,48Q. - 131,557 � Schoollunch 71,152 1,157,250 1,093,427 - 134,975 Reading assessment 24,956 45,000 ]0,143 - . 59,813 Special revenue 258,254 2,222,107 2,368,364 - 111,997 Trust and agency - 132,882 1,801,154 � 1,733,231 - 200,805 Total education 2,084,134 39,903,083 39,158,980 - 2,828,237 Other appropriations :.� Pensions and other fringe benefits - 1,677,882 1,640,445 37,437 - ` Debt service - 1,286,039 1,288,610 (2,571) - .. Tax increment financing payments - 378,307 376,844 1,463 - Contingency - 5,000 - 5,000 - Total other appropriations - 3,347,228 3,305,899 41,329 - Total expenditures 2,084,134 73,663,492 73,816,231 (933,842) 2,865,237 Excess(deficiency)of revenues over expenditures (2,084,134) 565,052 1,688,350 (38,220) 3,245,652 - II-52 Schedule A-2 (con't) � CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Changes in Undesignated Fund Balance-Budget and Actual-Budgetary Basis General Fund ' For the Fiscal Year Ended June 30,2004 ;: Balances Variance Carried � 7/1/2003 Budget Actual Surplus Carried Other financing sources(uses) l' Appropriaton from designated fund balance - 1,254,015 657,447 - (596,568) � Appropriaton to designated fund balance - - - - - Appropriation from undesignated fund balance - 2,965,571 - (2,965,571) - Sale of assets - 8,000 44,893 36,893 - Transfers to other funds - (3,946,178) (3,946,178) - - Transfers from other funds - 48,000 44,520 (3,480) - , Operating transfers - (894,460) (894,460) - - Total other financing sources(uses) - (565,052) (4,093,778) (2,932,158) (596,568) �� i Excess(deficiency)of revenues over expenditures and other financing sources and uses $ (2,084,134) $ - $ (2,405,428) (2,970,378) $ 2,649,084 ' Undesignated fund balance,beginning of year 8,892,685 Undesignated fund balance,end of year $ 5,922,307 � �,.. � 4, � i , II-53 i ''\ � NONMA.�OR GOVERNMENTAL FUNDS . Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. �. Other HUD Funds —This is used to account for 1) federal grants obtained and expended under the Housing and' Community Development Act of 1974, as amended, for the , redevelopment ofi the downtown commercial core of tFie City and 2) low interest loans to businesses within,_the City of Bangor for establishment, expansion or redevelopment -- purposes. , �;.; . - Grant Fund. — Accounts for federal and state grants that are legally restricted to . expenditures allowable by the grantor agency. � . � Dedicated Revenue Funds - Accounts for amounts raised or donated to benefit various governmental programs ,such as; the Dental Clinic, local parks, City forest and Park �Woods complex. . Other Funds—Accounts for funds held to be used in future periods such as tax financing , district repayments and other community funds for capital expenses relating to the operation of the area transportation system Permanent Fund � Permanent funds are used to report resources that are legally restricted to the extent _ that only earnings, not principal, may be used for purposes that support the reporting governmenYs programs. - �' Schedule B-1 � CITY OF BANGOR,MAINE Combining Balance Sheet Nonmajor Governmental Funds June 30,2004 . Nonmajor ,� Special Nonmajor TotalOther , Revenue Permanent Governmental Funds Funds Funds ASSETS � Cash $ " 28,048 $ - $ 28,048 , Investments 1,718,131 1,037,213 2,755,344 Receivables: Accounts 25,020 - 25,020 Loans(net of allowance of$130,131) 991,858 27,257 1,019,115 Interfund loans 329,252 - 329,252 � Intergovernmental 265,442 - 265,442 , Total assets � $ 3,357,751 $ 1,064,470 $ 4,422,221 �� LIABILITIES AND FUND BALANCES . Liabilities: Accounts payable $ 81,880 $ - $ 81,880 Deferred revenue 991,858 - 991,858 � Interfund loans 329,252 - 329,252 Total liabiliries 1,402,990 - 1,402,990 Fund balances: Reserved for: Encumbrance 16,998 - 16,998 , Loans - 129,235 _ 129,235 �� Principal - 510,433 510,433 � Unreserved,undesignated 1,937,763 424,802 2,362,565 Total fund balance 1,954,761 1,064,470 3,019,231 Total liabilities and fund balances $ 3,357,751 $ 1,064,470 $ 4,422,221 � � - � . � r II-54 Schedule B-2 , CITY OF BANGOR,MAINE Combining Statement of Revenues,Expenditures and Changes in Fund Balances Nonmajor Governmental Funds � For the Fiscal Year Ended June 30,2004 , Nonmajor Special Nonmajor Total Other . Revenue Permanent Governmental Funds Funds Funds Revenues: � Taxes $ 1,315,415 $ - $ 1,315,415 � Intergovernmental 3,577,347 - 3,577,347 Charges for services 450,163 - 450,163 � Program income 17,953 - 17,953 Revenue from use of money and property 59,674 - 59,674 � Other revenue 64,254 2,700 66,954 Interest revenue - 10,426 10,426 Total revenues 5,484,806 13,126 5,497,932 Expenditures: Current: ' Personnel 435,283 - 435,283 � Equipment 14,830 - 14,830 Payments to beneficiaries 1,378,660 - 1,378,660 Other 2,396,826 - 2,396,826 Bus operations 1,199,666 - 1,199,666 � ` Program expenditures - 8,850 8,850 ) Total expenditures 5,425,265 8,850 5,434,115 Excess (deficiency) of revenues over(under)expenditures 59,541 4,276 63,817 Other financing sources(uses): Transfer to other funds (164,520) (86,500) (251,020) Transfer from other funds 33,244 5,433 38,677 ` Total other financing sources (uses) (131,276) (81,067) (212,343) Excess (deficiency)of revenues and other financing sources over(under) , expenditures and other financing uses (71,735) . (76,791) (148,526) Fund balances,beginning of year 2,026,496 1,141,261 3,167,757 � Fund balances, end of year $ 1,954,761 $ 1,064,470 $ 3,019,231 II-55 Schedule B-3 CITY OF BANGOR,MAINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30,2004 Dedicated Other Grant Revenue Totals HUD Funds Fund Funds Other 2004 ASSETS ' Cash $ 28,048 $ - $ - $ - $ 28,048 � i Investments - - 998,952 719,179 1,718,131 Receivables: Accounts - 5,820 - 19,200 25,020 Loans(net ofallowance of$130,131) 991,858 - - - 991,858 Intedund loans 329,252 - - - 329,252 � Intergovemmental - 265,442 - - 265,442 Total assets $ 1,349,158 $ 271,262 $ 998,952 $ 738,379 $ 3,357,751 i LIABILITIES AND FUND EQUITY Liabilities Accounts payable $ - $ 78,957 $ - $ 2,923 $ 81,880 Deferred revenue 991,858 - - - 991,858 � Interfund loans payable - 171,710 - 157,542 329,252 Totalliabilities 991,858 250,667 - 160,465 1,402,990 Fund equity � � Reserved for: Encumbrances - 16,998 - - 16,998 Unreserved: ' Undesignated ' 357,300 3,597 998,952 577,914 1,937,763 Total fund equity 357,300 20,595 998,952 . 577,914 1,954,761 i �; Total liabilities and fund equity $ 1,349,158 $ 271,262 $ 998,952 $ 738,379 $ 3,357,751 ' II-56 Schedule B-4 CITY OF BANGOR,MAINE Combining Statement of Revenues,Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds �� For the Fiscal Year Ended June 30,2004 ,� _ Dedicated Other Grant Revenue Totals HUD Funds Fund Funds Other 2004 . Revenues , Taxes $ - $ - $ - $ 1,315,415 $ 1,315,415 Intergovernmental - 3,577,347 - - 3,577,347 Chargesforservices - 450,163 - - 450,163 , Program income 17,953 - - - 17,953 , Revenue from use ofmoney and property - - 35,300 24,374 59,674 Contributions - - 14,153 50,101 64,254 `� Other - - - - - Total revenues 17,953 4,027,510 49,453 1,389,890 5,484,806 • Expenditures . Personnel - 435,283 - - 435,283 Equipment - 14,830 - - 14,830 Payments to beneficiaries - - 3,958 1,374,702 1,378,660 � Other 1,813 2,377,519 - 17,494 2,396,826 Bus operations - 1,199,666 - - 1,199,666 Total expendimres 1,813 4,027,298 3,958 1,392,196 5,425,265 Excess(deficiency)of revenues over(under)expenditures 16,140 212 45,495 (2,306) 59,541 Other financing sources(uses) Transfers to other funds - - (138,746) (25,774) (164,520) Transfers from other funds - 2,574 15,719 14,951 33,244 Total other financing sources(uses) - 2,574 (123,027) (10,823) (131,276) Excess(deficiency)of revenues over(under) expenditures and other financing I sources and uses 16,140 2,786 (77,532) (13,129) (71,735) Fund balances,beginning of year 341,160 17,809 1,076,484 591,043 2,026,496 � Fund balances,end of year $ 357,300 $ 20,595 $ 998,952 $ 577,914 $ 1,954,761 II-57 Schedule B-5 CITY OF BANGOR,MAINE , Combining Balance Sheet Nonmajor Permanent Funds June 30, 2004 ' Revolving , Other Loan Funds Funds Totals ASSETS , Investments $ 935,235 $ 101,978 $ 1;037,213 � Loans receivable - 27,257 27,257 Total assets $ 935,235 $ 129,235 $ 1,064,470 LIABILITIES AND " FUND BALANCES Liabilities: �� Totalliabilities $ - $ - $ - Fund balances: � Loans - 129,235 129,235 Principal 510,433 - 510,433 Unexpended income 424,802 - 424,802 Total fund balances 935,235 129,235 1,064,470 Total liabilities and and fund balances $ 935,235 $ 129,235 $ 1,064,470 ` I . � II- 58 � Schedule B-6 CITY OF BANGOR,MAINE Combining Statement of Revenues,Expenditures and Changes in Fund Balances � � Nonmajor Permanent Funds - For the Fiscal Year Ended June 30,2004 Revolving � Other Loan Funds Funds Totals Revenues: ; Investment income $ 6,047 $ ' 4;379 $ 10,426 _ Lot sales 2,700 - 2,700 Total revenues 8,747 4,379 13,126 � Expenditures: � � Current: Loss on sale of investments - 4,137 4,137 Payments to beneficiaries � . 746 . 3,000 3,746 ' Other miscellaneous - 967 967 Total expenditures 746 $,104 8,850 Other financing sources (uses): Transfer to other funds (86,500) - (86,500) Transfer from other funds 5,433 - 5,433 Total financing sources(uses) (81,067) - (81,067) ' Excess(deficiency)of revenues and other financing sources _ over(under)expenditures and other financing uses (73,066) (3,725) (76,791) Fund balances,beginning of year 1,008,301 132,960 1,141,261 Fund balances,end of year $ 935,235 $ 129,235 $ 1,064,470 , ` II- 59 This page left intentionally blank �_ � _ , , ENTERPRISE FUNDS ` Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the government is to have the costs of providing goods or services to the general public financed or recovered � primarily through user charges. The government has decided that periodic determination of net incorne•is appropriate for accountability purposes. ��' Sewer Utility Fund — This fund accounts for the costs of construction and operation of the Sewage Treatment Pfant, the City sewer system, and sewer operation activities, and is self—supported through sewer user fees. � , s } Airport Fund�'This fund accounts for the operation of Bangor Internationat Airport. The . principal sources of revenues are landing fees and the sale of aviation fuel. Other � revenue sources include'lease payments for the use of termi�al space and non-aviation industrial buildings, � ; , , � . . . . r • Park Woods-Tl�is fund accounts for the rental of 60 units of surplus housing received from the federal government pursuant to the McKinney Homeless Assistance Act. The _ principal source.of revenue is rental income. Parking Fund —:This fund accounts for the operation of the City-owned parking lots and the Pickering Square garage. Revenue sources include monthly lease payments for parking spaces; hourly/daily parking fees, and fines and waiver fees for parking violations. Certain of these facilities are operated under a private management contract. 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 C-1 CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances � Budget and Actual-Budgetary Basis � Sewer Utility Fund-Enterprise Fund For the Fiscal Year Ended June 30,2004 Budget Actual Variance ' Revenues Charges for services $ 6,343,240 $ 6,362,377 $ 19,137 Operating transfer - - - Interest and other revenue 530,071 685,911 155,840 � Total revenues 6,873,311 7,048,288 174,977 - Expenditures and encumbrances Salaries 902,745 897,581 5,164 Fringe benefits 197,334 200,459 (3,125) ` Supplies arid materials 759,321 792,273 (32,952) , Contractual services 547,590 541,779 5,811 Interfund charges .512,932 485,105 27,827 Miscellaneous 25,550 26,673 (1,123) Debt service 3,702,373 3,743,911 (41,538) Depreciation 1,266,510 1,360,914 (94,404) Outlay 169,819 36,692 133,127 Credits - - - Total expenditures and encumbrances 8,084,174 8,085,387 (1,213) Excess(deficiency) of revenues over expenditures and encumbrances $ (1,210,863) $ (1,037,099) $ 173,764 ' � II-60 i Schedule G2 CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances ' � Budget and Actual-Budgetary Basis Airport Fund-Enterprise Fund For the Fiscal Year Ended June 30,2004 � ' Budget Actual Variance Revenues ' Charges for services $ 8,461,609 $ 11,398,517 $ 2,936,908 Operating transfer - - - ` � Interest and other revenue 1,069,362 866,100 (203,262) _ Total revenues 9,530,971 12,264,617 2,733,646 - ! Expenditures and encumbrances Salaries 3,713,221 3,777,604 (64,383) � Fringe benefits 721,754 711,842 9,912 Supplies and materials 1,439,133 1,516,503 (77,370) Contractual services . 1,724,060 ..1,831,910 (107,850) ' Interfund charges � 496,766 487,655 9,111 Miscellaneous 161,326 262,847 (101,521) Debt service 694,737 694,737 - Depreciation 1,858,565 1,789,076 69,489 Outlay 493,450 601,307 (107,857) Credits (7,000) (7,370) 370 Total expenditures and encumbrances 11,296,012 11,666,111 (370,099) ' ' Excess(deficiency)of revenues over expenditures and encumbrances $ (1,765,041) $ 598,506 $2,363,547 , " II- 61 . Schedule C-3 CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances , Budget and Actual-Budgetary Basis ' Park Woods-Enterprise Fund For the Fiscal Year Ended June 30,2004 Budget Actual Variance � Revenues Charges for services $ 293,166 $ 277,789 $ (15,377) Operating transfer 23,668 23,668 - Interest and other revenue - (78) (78) Tota]revenues 316,834 301,379 (15,455) Expenditures and encumbrances � Salaries 58,040 58,009 31 " Fringe benefits 9,909 10,269 (360) Supplies and materials 116,970 108,455 8,515 - Contractual services 128,165 140,081 (11,916) Interfund charges 3,750 4,479 (729) Miscellaneous - - - Debt service - - - Depreciation 8,001 7,722 279 Outlay - - - Credits - - - _ Total expenditures and encumbrances 324,83$ 329,015 (4,180) Deficiency of revenues over expenditures and encumbrances $ (8,001) $ (27,636) $ (19,635) �ti II-62 Schedule C-4 . CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances ' � Budget and Actual-Budgetary Basis Parking Fund-Enterprise Fund For the Fiscal Year Ended June 30,2004 i Budget Actual Variance -. Revenues � Charges for services $ 842,260 $ 886,904 $ 44,644 Operating transfer 437,656 437,656 - Interest and other revenue 1,500 4,548 3,048 _ Total revenues 1,281,416 1,329,108 47,692 Expenditures and encumbrances - Salaries 146,335 139,080 7,255 � Fringe benefits 30,558 28,571 1,987 Supplies and materials 6,775 5,194 1,581 Contractual services 258,400 302,676 (44;276) . Interfund charges 84,700 80,316 4,384 Miscellaneous - - - Debt service 699,866 698,365 - 1,501 � Depreciation 455,858 471,131 (15,273) Outlay 54,782 8,195 46,587 Credits - - - Total expenditures and encumbrances 1,737,274 1,733,528 3,746 � Excess(deficiency)of revenues over expenditures and encumbrances $ (455,858) $ (404,420) $ 51,438 i . II-63 Schedule C-5 CITY OF_BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis Bass Park Fund-Enterprise Fund , For the Fiscal Year Ended June 30,2004 Budget Actual Variance i Revenues Charges for services $ 1,261,250 $ 1,253,421 $ (7,829) , Operating transfer 487,304 487,304 - Interest and other reyenue - (76) (76) Total revenues 1,748,554 1,740,649 (7,905) Expenditures and encumbrances Salaries 612,031 645,936 (33,905) , Fringe benefits 105,426 109,323 (3,897) - Supplies and materials 238,675 254,583 (15,908) Contractual services 423,624 415,102 8,522 Interfund charges 106,375 1.59,862 (53,487) Miscellaneous 65,000 69,132 (4,132) Debt service . 202,923 202,923 - , Depreciation 151,457 108,833 42,624 Outlay 4,500 4,331 169 Credits (10,000) (10,000) - � Total expenditures and encumbrances 1,900,011 1,960,025 (60,014) Defciency of revenues over expenditures and encumbrances $ (151,457) $ (219,376) $ (67,919) II-64 Schedule C-6 . CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances f Budget and Actual-Budgetary Basis Municipal Golf Course-Enterprise Fund For the Fiscal Year Ended June 30,2004 Budget Actual Variance Revenues Charges for services $ 686,000 $ 595,852 $ (90,148) Operating transfer - - - Interest and other revenue 13,000 9,058 (3,942) Total revenues 699,000 604,910 (94,090) Expenditures and encumbrances Salaries 223,732 236,027 (12,295) _ Fringe benefits 40,109 38,069 2,040 Supplies and materials 57,149 63,183 (6,034) , Contractual services 66,800 68,620 (1,820) Interfund charges 217,989 54,473 163,516 Miscellaneous - - - Debt service 6,221 6,221 . - Depreciation 125,000 97,666 27,334 Outlay 87,000 76,404 10,596 Credits - - - Total expenditures and encumbrances 824,000 640,663 183,337 � Excess (deficiency) of revenues over expenditures and encumbrances $ (125,000) $ (35,753) $ 89,247 „ i , II-65 Schedule C-7 CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis Economic Development Fund-Enterprise Fund For the Fiscal Year Ended June 30,2004 Budget Actual Variance Revenues Charges for services $ 350,629 $ 316,062 $ (34,567) Operating transfer - - - Interest and other revenue 208,954 9,995 (198,959) Total revenues 559,583 326,057 (233,526) Expenditures and encumbrances Salaries - - - � Fringe benefits - - - Supplies and materials 9,295 22,736 (13,441) Contractual services 39,537 57,554 (18,017) Interfnnd charges 3,800 623 3,177 Miscellaneous 2,630 2,573 57 Debt service 341,546 321,417 20,129 Depreciation 11,706 110,895 (99,189) - Outlay 162,775 93,929 68,846 Credits - - - Total expenditures and encumbrances 571,289 609,727 (38,438) Deficiency of revenues over expenditures 1 and encumbrances $ (11,706) $ (283,670) $ (271,964) � II-66 - � CAPITAL ASSETS USED �� IN THE OPERATION . . OF GOVERNMENTAL FUNDS � � �� g � ^� .� x� �``�� fd r' �'��.;��r^ � -�.�`�.F°'� � � n`�,4 1 �c �"# � s ��.� 0,. �� '� �<� .�' � , � "'..""� • � �a ;�� .�<., „��' � . � � �� $� s , �� Y.� '� �$.� � fi'OE�'S � %'a.^�, t . � � �'� 6/, .., '3 �Y � . , J�4 ::. �� ,Y �� ' ,. 8� i ��y's� '^� �� ...� � ,�� . -- � �° � " apg�d'�'E� . �' � .. . .. "s•��'�•„ �, ' i .. , . . .�" . , � � , ` �g, . ; z - 4 , �$•„ ��_ ''� ,� �>,4 i� z� � � .s�: � 4 r�: � '� s s � , �' � € �.�R°!i <�� ",.� �%�, q �e� n � � � �� , �� , �°' i r: f a,� : � • " z . �g � , � �� ' �,� ''a � ��:a, �,�� S; � ��` � �� , � ', ^ �,: �� ,� ,�.� � ��,, E' � �� ` ,�, '. �, .. � . 4n , �.. �" ,.s��` Eua a�� y .x�.� x,� ,� � � . _ � °` � �'�.a�� ,�',� -,'�S � �` �txa ';^�..-'°: � �"� �'r � . . 'h -s -. vF;.� . �, T7 r ,.,,�' '��y ��,p� °e*e �..�� d� ,�a`t�` ��d �s, -w , , . �, e. � ., <� �� . ��,.y,� ��. * . �'�, � � ''�7d � � b� �`� •`y - ,�`` � . -... �r�'� ��s. �'�� eF�� =x�'� �, �?' e e;�a3'- :,1`' � S, �a�,�':;>�`�,�a*"R'' ,�t, � .� r�� .a, �;�� _ '�,• �' y=�;.•,�f� "�, v ' :w _ E Yii: . _ . Schedule D-1 CITY..OF BANGOR,MA1NE Capital Assets Used in the Operation of Governmental Funds Schedule by Source June 30,2004 Governmental funds capital assets: ' Land $ 3,843,025 School Land 1,900,682 Buildings , 5,224,543 School buildings 26,232,678 Vehicles � 4,223,047 Machinery and equipment 2,779,773 School equipment 243,419 Infrastructure 3,979,049 Construction in progress 13,952,891 Total governmental fund capital assets $ 62,379,107 __ Investments in governmental funds assets by source: General Fund $ 62,379,107 Total governmental fund capital assets $ 62,379,107 - II-67 t � � SChQdUI¢D-Z CITY OF BANGOR,MAINE Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activity June 30,2004 Construction Function and Activity Land Buildings Vehicles Equipment Infrastructure in Process Total General government: Animal control $ - - 6,607 - - - 6,607 BAT community connector - - 1,483,405 - - 29,646 1,513,051 Central service - - ' - 830 - 38,460 39,290 Cityhall - 311,483 - 28,610 - 5,799 345,892 Community and economic development 3,564,560 156,270 - - - - 3,720,830 Engineering - - - - - 41,631 41,631 Information services - - - 72,706 - 449,804 522,510 �ga� - - - 10,890 - - 10,890 Motorpool - 43,437 1,881,254 172,908 - 1,355,285 3,452,884 Other-unclassified - - - 852,363 - - 852,363 Total general govemment 3,564,560 511,190 3,371,266 1,138,307 - 1,920,625 . 10,505,948 Public safety Fire - 994,640 664,322 367,751 - - 2,026,713 Police 21,750 676,936 77,539 232,475 - 1,510,082 2,518,782 Total public safety 21,750 1,671,576 741,861 600,226 - 1,510,082 4,545,495 Health,welfare and recreation Health and welfare - - - - - - - Parks and recreation 256,715 2,280,196 7,480 569,051 - 265,510 3,378,952 Total health,welfare and recreation 256,715 2,280,196 ' 7,480 569,051 - 265,510 3,378,952 Public building and services Pubiic works - 761,581 102,440 472,189 3,979,049 10,002,738 15,317,997 Total public buildings and services - 761,581 102,440 472,189 3,979,049 10,002,738 15,317,997 Education 1,900,682 26,232,678 - 243,419 - 253,936 28,630,715 Total governmental fund capital assets $ 5,743,707 31,457,221 4,223,047 3,023,192 3,979,049 13,952,891 62,379,107 II-68 Schedule D-3 CITY OF BANGOR,MAINE Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity For the Fiscal Year Ended June 30,2004 Balance Balance Function and Activity 2003 Additions Deletions 2004 General government Animal control $ 8,076 - 1,469 6,607 BAT community connector 1,630,429 - 117,378 1,513,051 Central service 2,490 38,460 1,660 39,290 City hall 349,126 117,353 120,587 345,892 , Community and economic development 3,724,120 - 3,290 3,'720,830 Engineering - 41,631 - 41,631 Information services 333,709 245,877 57,076 522,510 Legal 13,310 - 2,420 10,890 Motor pool 3,086,810 760,525 394,451 3,452,884 Other-unclassified 954,220 - 101,857 852,363 Total general government 10,102,290 1,203,846 800,188 10,505,948 � Public safety Fire 2,141,283 298,366 412,936 2,026,713 Police 1,267,953 1,344,154 93,325 2,518,782 Total public safety 3,409,236 1,642,520 506,261 4,545,495 Health,welfare and recreation Health and welfare 2,336 - 2,336 - Parks aind recreation 3,282,561 956,520 860,129 3,378,952 Total health,welfare and recreation 3,284,897 956,520 862,465 3,378,952 Public building and services Public works 10,626,715 5,521,312 830,030 15,317,997 Total public buildings and services 10,626,715 5,521,312 830,030 15,317,997 Education 28,414,764 5,721,037 5,505,086 28,630,715 Total governmental fund capital assets $55,837,902 15,045,235 8,504,030 62,379,107 II-69 , ,�a � OTHER INFORMATION ;��§�:.: f��, � ' r � ��k Y ... � ; � � g �, �' � ��.� �� 4 � � . . 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''• • . , ' . y Schedule E-1 CITY OF BANGOR,MAINE Assessed Valuation,Commitment and Collections For the Fiscal Year Ended June 30,2004 VALUATION Land and buildings $ 1,436,271,200 Land and buildings-Homestead exemption 35,502,400 Personal property 268,555,600 � Total valuation $ 1,740,329,200 COMMITMENT Real es�ate and personal property(excludes Homestead exemption) $ 1,704,826,800 Tax rate 0.02335 Total commitment 39,807,706 ADD � � Supplemental taxes committed 59,144 � 39,866,850 LESS Collections 2004 38,589,047 Abatements 172,868 2004 taxes receivable at June 30,2004 $ 1,104,935 � II-70 Schedule E-2 CITY OF BANGOR,MA1NE Undesignated Fund Balance Sufficiency Calculation For the Fiscal Year Ended June 30,2004 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 suf�ciency of the June 30, 2U04 undesignated fund balance. General Fund expenditures/uses ( Schedule A-2) General government $ 4,132,399 Public safety 12,100,770 • Health,welfare and recreation _ 3,480,419 Public buildings and services 8,129,610 Other agencies 3,508,154 Education 39,158,980 Other appropriations 3,305,899 Other uses, gross* 1,934,221 Gross expenditures and uses � 75,750,452 - General Fund debt service 5,313,412 Net expenditures and uses $70,437,040 Indicated undesignated fund balance @ 7.5% $ 5,282,778 Actual undesignated fund balance(Schedule A-2) $ 5,922,307 ' Actual undesignated fund balance as a percentage of net expenditures and uses 8.41% Over(under) funded status $ 639,529 * excludes amounts appropriated from undesignated fund balance II-71 This page left intentionally blank Statistical Section � Table 1 � CITY OF BANGOR,MAINE Government-wide Expenses by Function Last Ten Fiscal Years Health Public Interest on Capital Fiscat General Public welfare and buildings Other Restricted long-term maintenance Year government safety recreation and services agencies Education Unclassified grants debt expenses Total 2003 $ 6,060,687 11,114,804 3,340,989 7,050,085 3,322,395 40,828,756 . 2,044,069 6,551,455 740,077 1,824,489 82,877,806 2004 $ 6,487,572 12,066,567 3,606,827 7,360,360 3,273,003 40,279,055 389,598 6,857,039 3,083,447 2,666,118 86,069,586 Only two years have been presented because 2003 was the year GASB Statement No.34 was implemented. III- 1 Table 2 CITY OF BANGOR,MAINE Government-wide Revenues Last Ten Fiscal Years Program Revenues General Revenues Operating Capital Grants and Charges Grants Grants Contributions not Unrestricted - Fiscal for and and Restricted to Investment Year Services Contributions Contributions Taxes Specific Programs Earnings Miscellaneous Total 2003 $ 15,169,774. 21,566,478 3,814,705 42,128,366 4,059,770 377,113 357,062 87,473,268 2004 $ 12,435,549 24,743,028 2,098,577 44,603,255 4,512,720 296,857 (333,244) 88,356,742 Only two years have been presented because 2003 was the year GASB Statement No. 34 was implemented. III-2 Table 3 CITY OF BANGOR,MAINE General Fund Expenditures by Function--Budgetary Basis* Last Ten Fiscal Years Fiscal General Public Health& Parks& Pubiic Debt Other _Year Government Safety Welfare Recreation Services Educallon Service Other** Agencies*'�* Total 1995 3,243,405 9,233,995 2,455,303 97Q084 6,720,880 27,999,220 1,641,046 ]SQ474 1,999,580 54,413,987 1996 3,340,732 8,990,888 1,683,177 888,139 7,049,049 28,258,718 1,403,761 45,595 2,046,064 53,706,123 ]997 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 30,19Q919 1,335,405 389,805 2,231,59] 58,293,051 1999 3,371,246 zl'0,326,120 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 1,053,472 7,359,810 37,860,069 866,860 28,670,847 2,953,707 95,207,605 2003 3,992,860 11,104,269 2,090,476 1,081,713 7,919,573 41,455,729 1,611,606 2,211,125 3,311,873 74,779,224 2004 4,132,399 12,100,770 2,334,807 1,145,612 8,129,610 39,158,980 1,288,610 2,017,289 3,508,154 73,816,231 * Amounts appear in Schedule A-2. *'" "Other"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 Counry taxes and support to,among other the Bangor Public Library, local private schools and the Bangor Conventions and Visitors Bureau. III-3 Table 4 CITY OF BANGOR,MAINE General Fund Revenues by Source--Budgetary Basis* Last Ten Fiscal Years Inter- Licenses C6arges Fines Use of Fiscal Real Personal Total Tax govern- & for &For- Money& Year Property Property Excise Revenues mental Permits Services feitures Property Total 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 ]996 27,340,204 3,545,267 2,754,819 33,640,290 13,803,107 324,639 6,94Q083 26,569 ],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' S,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 40,499,774 19,580,491 298,665 9,755,012 28,009 980,442 71,142,393 2003 31,277,657 6,579,434 4,091,505 41,948,596 20,508,789 409,842 9,575,973 9,707 766,574 73,219,481 2004 32,147,058 6,312,479 4,306,055 42,765,592 21,394,938 374,499 ]0,396,130 32,659 540,763 75,504,581 * Amounts appear in Schedule A-2. III-4 Table 5 CITY OF BANGOR,MAINE General Fund Expenditures/Other Uses and Revenues%Other Sources--Budgetary Basis* Last Ten Fiscal Years Other Uses Other Sources Excess(Deficiency) Appropr- Total Appropr- Operating Total otRevenues/Other iatlons to Operating Geoeral Fund iatlons from Transters Total General Fund Sources Over Fiscal Fund Transfers Total Expenditures Fund In&Other Other Revenues Expenditures/ Year Balance Out&Other Other Uses &Other Uses Balance Sources Sources &Ot6er Sources Other Uses 1995 - 865,462 865,462 54;079,791 260,000 28,770 288,770 55,401,113 1,321,322 1996 - 1,871,914 1,871,914 56,285,901 689,909 76,249 766,158 56,363,761 77,860 1997 - 2,360,375 2,360,375 56,066,498 1,249,123 377,448 1,626,571 57,427,342 1,360,844 1998 - 1,528,803 1,528,803 56,736,953 333,731 357,459 691,190 57,203,147 466,194 1999 - 1,640,914 1,640,914 59,933,965 362,286 77,903 440,189 60,280,733 346,768 2000 240,000 1,803,724 2,043,724 61,504,419 21,550 71,682 93,232 62,069,693 565,274 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 2,776,318 97,983,923 82,147 28,454,275 28,536,422 99,678,815 1,694,892 2003 - 3,038,463 3,038,463 77,817,687 431,636 3,871,604 �7,303,240 77,522,721 (294,966) 2004 - 4,840,638 4,840,638 78,656,869 657,447 89,413 746,860 76,251,441 (2,405,428) � * Amounts appear in Schedule A-2. ' III-5 Table 6 CITY OF BANGOR,MAINE Properly Tax Levies and Collections Last Teu Fiscal Years %of Outstauding RBtio of %of Delinquent Total Total Taa Current Year Current Year Fiscal Gross Taa Abate- Net Taa Current Net l,evy Taa Taa Collection Delinquent Delinquencies Year Levy ments Levy Collections Collected Collections Collections to Net Levy Taaes to NeYI.evy 1995 30,305,921 323,102 29,982,819 28,250,549 94.22% 1,680,210 29,930,759 99.83% d,732,270 5.78% , 1996 31,084,237 341,860 30,742,377 29,297,048 9530% 7,469,986 30,767,034 100.08% 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% ],543,779 32,349,404 ]0035% 1,429,914 4.44% 1999 32,611,,689 t45,123 32,466,566 31,084,751 95.74% 1,503,187 32,587,938 10037% 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 37,288,436 701.64% 1,052,005 2.87% 2003 39,081,183 311,677 38,769,506 37,785,056 97.46% 1,506,817 39,291,873 10135% 984,450 2.54% 2004 39,866,850 172,868 39,693,982 38,589,047 97.22% 1,154,693 39,743,740 100.13% 1,104,935 2.78% � III-6 Table 7 CITY OF BANGOR,MAINE Assessed and Estimated Market Value of Property* Last Ten Fiscal Years Fiscal Real Personal Year Property Property Total % Change 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 1,346,72$,900 241,682,200 1,588,411,100 3.29% 2003 1,412,798,100 278,430,400 1,691,228,500 6.47% 2004 1,471,773,600 268,555,600 1,740,329,200 2.90% * It is City policy to assess at 100%of estimated market value. III-7 Table 8 CITY OF BANGOR,MAINE Property Tax Rate-Direct and Overlapping Governments Last Ten Fiscal Years General General Fiscal City Fund Debt Penobscot Total Tax/ Year Government Service Education County (Mill)Rate 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 1.1 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 9.81 0.73 12.24 0.97 23.75 2003 9.51 0.74 12.27 1.08 23.60 2004 9.26 0.79 12.22 1.08 23.35 III- 8 Table 9 CITY OF BANGOR,MAINE Principal Taxpayers June 30,2004 Assessed % of Total Cumulative Taxpayer Business Value Tax Base % BANMAK Associates Shopping mall $ 49,103,600 2.82% 2.82% . General Electric* Steam turbine manufacturer 45,663,800 2.62% 5.44% Bangor Hydro-Electric Utility 28,447,200 1.63% 7.07% Bangor Savings Bank Financial institution 16,593,500 0.95% 8.02% Eastern Maine Healthcare Medical institution 16,027,900 0.92% 8.94% QV Realty Trust Real estate interests 11,930,300 0.69% 9.63% May Department Stores Retailer 10,783,200 0.62% 10.25% Cabrel Company Real estate interests 10,702,700 0.61% 10.86% Airport Mall Associates Shopping mall 10,492,800 0.60% 11.46% Sams Real Estate Trust - Retailer 9,622,100 0.55% 12.01% Totals $209,367,100 * Net of$59,493,650 of tax increment financing assets. � III-9 Table 10 CITY OF BANGOR,MAINE Computation of Legal Debt Margin June 30,2004 Total State Valuation $ 1,741,600,000 Debt Limitation: 15%of State Valuation $ 261,240,000 Debt Applicable to Debt Limitation: Bonded General Obligation Debt Legal Maximum As a Percent of Dollar State Purpose Percentage Amount Amount Maximum Valuation Municipal 7.50% $ 130,620,000 $ 62,732,720 48.03% 3.60% School 10.00% 174,160,000 15,488,186 8.89% 0.89% Sewer 7.50% 130,620,000 30,652,963 23.47% 1.76% Total Bonded Debt Applicable to Debt Limit: $ 108,873,869 41.68% 6.25% Margin for Additional Borrowing: $ 152,366,131 ' III- 10 Table 11 CITY OF BANGOR,MAINE Ratio of Net General Obligation Debt to Assessed Value and Net General Obligation Debt Per Capita Last Ten Fiscal Years Ratio of Net Bonded Debt � Fiscal Assessed Net Bonded To Assessed Per Year Population* Value GO Debt** Value Capita 1995 32,570 1,305,791,000 24,198,270 1.85% 742.96 1996 31,849 1,340;976,800 24,937,760 1.86% 783.00 1997 31,479 1,363,463,500 25,763,268 1.89% 818.43 1998 31,134 1,387,170,700 28,261,855 2.04% 907.75 1999 30,783 1,408,438,700 27,205,258 1.93°/a 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 31,595 1,588,411,100 66,818,681 4.21°/a 2,114.85 2003 31,541 1,691,228,500 65,323,120 3.86% 2,071.05 2004 31,550 1,740,329,200 69,638,974 4.00% 2,207.26 * 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 U.S.Census Bureau(2001 through 2004). ** Net Bonded General Obligarion Debt Consists of all non-self supporting general obligation debt,and ezcludes all Sewer Utility debt of$30,652,963,Airport debt of$7,035,181,Golf Course debt of$94,158 and Economic Development debt of$1,452,593. , III-11 Table 12 CITY OF BANGOR,MAINE Ratio of Annual Debt Service Egpenditnres for General Obligation Debt to Total General Fund Eapenditures Last Ten Fiscal Years Ratio of Debt Debt Service Ez enditures Total Service To Fiscal General Fund General Fund Year Principal Interest Total. Ezpenditures* Ezpenditnres 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% 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 64,652,569 539% 2002 1,707,483 1,686,455 3,393,938 67,566,552 ** 5.02% 2003 2,053,480 3,292,171 5,345,651 74,779,224 7.15% 2004 2,232,944 3,080,468 5,313,412 73,816,231 7.20% • Budget basis,Schedule A-2 ss 2002 General Fund Expenditures have been reduce by the one time payment to the MSRS total'mg$27,G41,053 III-12 Table 13 CITY OF BANGOR,MAINE Computation of Direct and Overlapping Debt June 30,2004 Percentage Amount Total Debt Applicable Applicable Outstanding to Bangor to Bangor Direct Debt City of Bangor General Obligation Bonds $ 108,873,869 100.00% $ 108,873,869 Overlapping Debt Penobscot County 765,000 23.57% 180,310 Total Debt $ 109,638,869 $ 109,054,179 III-13 Table 14 CITY OF BANGOR,MAINE Demographic Statistics Last Ten Calendar Years Median Public Unemploy- Fiscal Household Median School ment Year Population * Income* Age* Enrollment** Rate *** 1994 32,570 Data not Data not 4,303 7.47% available available 1995 31,849 Data not Data not. 4,257 5.72% available , available 1996 31,479 Data not Data not 4,394 4.52% available available 1997 31,134 Data not Data not 4,408 4.80% available available 1998 30,783 Data not Data not 4,377 3.60% available available 1999 31,311 Data not Data not 4,410 2.99% � available• available 2000 31,473 29,740 36.1 4,281 2.85% 2001 31,595 29,740 36.1 4,316 3.01% 2002 31,541 29,740 36.1 4,205 3.12% 2003 31,550 29,740 36.1 4,019 3.40% * Source: U.S.Census ** Source: Bangor School Departrnent *** Source: Bureau of Labor Statistics III-14 Table 15 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 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 70.30% 9.33% 2001 1,296,936 1,847,194 14,169,119 70.21% 9.15% - 2002 1,364,873 1,930,534 14,619,785 70.70% 9.34% 2003 1,444,699 2,033,711 15,289,113 71.04% 9.45% Source:Maine State Planning Office and Maine Bureau of Taxation � III-15 Table 16 CITY OF BANGOR,MAINE Residential and Commercial Building Permits and Bank Deposits (Dollar Amounts in Thousands) . Last Ten Calendar Years Property Value Building Permits Residential Non-Residential Totals Calendar Estimated Estimated Bank Year Commercial Residential . Total Units Value Units Value Units Value Deposits* 1994 613,721.8 692,069.2 1,305,791.0 289 4,019.7 274 21,068.0 563 25,087.7 705,589.0 1995 630,259.1 710,717.7 1,340,976.8 279 3,203.0 198 17,392.7 477 20,595.7 749,352.0 , 1996 640,827.8 722,635.7 1,363,463.5 283 4,013.8 192 18,773.8 , 475 22,787.6 762,181.0 1997 651,970.2 735,200.5 1,387,170.7 303 2,966.9 222 29,368.5 525 32,335.4 792,341.8 1998 661,966.2 746,472.5 1,408,438.7 284 3,149.7 223 37,984.6 507 41,134.3 808,188.7 1999 693,521.0 782,055.6 1,475,576.6 269 7,252.0 220 24,772.6 489 32,024.6 799,166:0 2000 722,760.3 815,027.5 1,537,787.8 296 9,637.9 �91 18,888.9 487 28,526.8 780,101.0 2001 746,553.2 841,85'7.9 1,588,411.1 248 4,291.7, 198 21,175.2 446 25,466.9 . 827;173.0 2002 794,877.4 896,351.1 1,691,228.5 277 5,076.1 199 25,313.9 476 30,390.0 DatallotAvailable \ 2003 817,954.7 922,374.5 1,740,329.2 310 9,616.5 38 25,046.3 348 34,662.8 1,601,465.0 * Source:Maine Bureau Financial Institudons III-16 Table 17 CITY OF BANGOR,MAINE Miscellaneous Statistics. June 30,2004 City Employees Public Education J Full time 484 Number of schools 10 Part Time 431 Number of teachers 366 Number of students 4,006 Police Protection Fire Protection Number of officers 75 Number of firefighters 93 Number of civilian'employees 17 Number of civilian employees 5 Number of stations 1 Number of stations 3 � Number of vehicles 56 Number of vehicles 20 Number of calls for service 24,407 Number of calls for service 9,800 Number of training facilities . 1 ISO fire protection rating 2 Parks and Recreation Sewers � . � Number of parks 29 Miles of sanitary sewers 103. � Number of play areas 10 Miles of combined sewers 44 Acres of park land 950 Miles of interceptor sewers 9 Indoor ice arena 1 Treatment plant 1 Semi-pro baseball stadium 1 Pump stations 5 Public golf courses 1.5 Combined sewer overflow locations 12 Public swimming pools 2 Storage tanks 3 Football stadium 1 Recreation center 1 � Public Library Number of branches 1 Number of volumes 476,712 Registered borrowers 41,889 Annual circulation 452,808 III-17 This page left intentionally blank . � ^