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2005 eITY OF Bf'�NGOR, Ml�IIyE eOMPREHEI�ISIVE f�Nl�lilP�i� Fll�lf�lyeif�i� REPORT FOR FISef�I, YE1�R Jl1NE 30, 2005 � < a.... - � � - - _ � ' �' �_ � - , _1 .--��:� ��- � � � � � � � �� , �� ' � - i � =,s , , i � I _ � I ; _ �� ___ ----��=— - __—,,, -._. _ __ -- :^' — i " - _ __-— — - — ' � - ---- ------ ' � ---- ---__ ° - _ i - . �— �-�----- . � —' ------ � �--- , - -- �� .� `�"'V��r f� . " " . _ . _.____._'_'"'__.._. � '�J, t��` �tl - ._+tau a+�+e�,_.�._u..w�..r...++a+++mv.�_..� _ t . _ . � -.. . . � .! .. . _ . ....:. . . ... . � ,` . J. - . _'. .. . . __. �n._t.:�� . . .. � � . � . Ban or aine ,�.c��M.9o� FROM' CO'VBR DEPKTS 77� DLCORATNL RA�.II'IGS OF 770: C1TY OF BAIYGOR. MAII�'S WATL'RFRWyT. FROWT C0�1ER MyD IIySERT PAGE Ptq7'OG[tAPNS TAKEIY BY Cf1ARl,� lrQ'I'C7�b1,. I -' , . �.. t _ �,;v�_ l. , . CITY OF BANGOR, MAINE '. � Comprehensive Annuai F,inanciai Report � ! �� . �� ; For the Fiscal Year�Ended �une 30, 2005 � , � 2i � � � � , �:.r�7..r _ ' � Prepared by: Debbie Cyr, Finance Director David Little, Tax Collector/Deputy Treasurer CITY OF BANGOR, MAINE Comprehensive Annual Financial Report Tabie of Contents �For the Fiscal Year Ended 7une 30, 2005 INTRODUCTORY SECTION Paae Letter of Transmittal I - 1 GFOA Certificate of Achievement � I - 7 Organizational Chart - I - 8 - � -. Listing of Principal Executive Officers ,� � � I - 9 ,..�-.. FINANCIAL SECTION � � '� � Report of Independent Auditors �� II - 1 �;� Management's Discussion and Analysis �� II - 2 , , Basic Financial Statements: -{�=�t} �"w� Exhibit ;;, �. Government-wide Financial Statements: ' Statement of Net Assets � ;: 1 II - 14 Statement of Activities � t!� ,� 2 II - 15 � Fund Financial Statements: ;z � Balance Sheet - Governmental Funds " i 3 II - 16 Statement of Revenues, Expenditures and Clianges 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�Fun"ds��`'� r � 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: 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 Governmentai�Funds �' B — 1 II - 54 Combining Statement of Revenues, Expenditures, and . Changes in Fund Balances— Nonmajor Governmentaf 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�Gnds B — 5 II - 58 Combining Statement of Revenues, Expenditures, and � Changes in Fund Balances— Nonmajor Permanent'.Funds 6 — 6 II - 59 _ , - �, . Schedules of Revenues, Expenditures and Encumbrances' Budget � and Actual Budgetary Basis: � �� ' Sewer Utility Enterprise Fund � �� I C — 1 II - 60 Airport Enterprise Fund � 1 C— 2 II - 61 Park Woods Enterprise Fund , � C— 3 II - 62 Parking Enterprise Fund '�; � C —4 II - 63 Bass Park Enterprise Fund ,-k I C — 5 II - 64 Municipal Golf Course Enterprise Fund -� I C — 6 II - 65 Economic Development Enterprise Fund � C — 7 II — 66 � � Fiduciary Funds: '� ' Statement of Change in Assets and Liabilities—�gency F nd D — 1 II— 67 � Capital Assets Used in the Operation of Governmental:-Funds:� Schedule of Changes by Function and Activity � - .� ; E — 1 II - 68 Other Information: Assessed Valuation, Commitment and Collections F — 1 II -.69 Undesignated Fund Batance 5ufficiency Calculation F— 2 II - 70 CITY OF BANGOR, MAINE Table of Contents, Continued STATISTICAL SECTION Table Pa4e Government-wide information: - Government-wide Expenses by Funcfion 1 III - 1 Govemment-wide Revenues : . 2 III - 2 Fund information: � General Governmental 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 Properry Tax Levies and Collections , 6 III - 6 Assessed and Estimated Market Value of Property �'� 7 III - 7 .,v= 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�Val e�and Net General Obligation Debt Per Capita ;� li III -11 Ratio of Annual Debt Service Expenditures for General �� Obligation Debt to Total General Fund Expenditures 'i 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�peposits 16 III -16 Miscellaneous Statistics ';� �� 17 III -17 � �._�� ; +s � u• �.� � �..��. r � e Il�ITiZODLIeTOiZY SEeTiOl�l 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 14, 2005 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, 2005 is hereby submitted. This is the third 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 •I B�ngor, Maine 04401 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 expenditures of federal awards, 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 should 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 the 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 ist and ends on the following June 30th. The Ciry 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 ]uly ist, the City Manager's proposed budget automatically becomes that fiscal year's budget. In either case, an appropriate properry 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, heaithcare, and governmental sectors ofthe 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. Bangor's 2004 unemployment rate of 4.3% 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 9% since 1999. 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 resulted in a reduction in the City's tax rate of 4.75% from 1996 to 2005. 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. The City has begun construction of 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. Through the relocation of the station, two additional goals will be achieved: improved police visibility and the provision of additional space adjacent to the Penobscot County ofFices to allow for its future expansion. 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. A majority of the infrastructure has been completed, for which the City has been successful in obtaining partial funding from both State and Federal I -4 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 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. The City has entered into a development agreement with Bangor Historic Track, a wholly owned subsidiary of Penn National Gaming, to redevelop Bangor Raceway and a portion of the surrounding Bass Park property. Penn National Gaming opened a temporary gaming facility containing 475 slot machines in November 2005 and anticipates breaking ground for the permanent facility in 2006. 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. In October 2005, the City established a special revenue fund to account for all such payments. In addition, the Council Order specifies that the primary use of the funds received will be to construct a new arena in 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, and a former laundry/dry cleaning establishment, and undertaken 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 past year, the City added a position to specifically address environmental compliance and training issues. The City also worked 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 June 30, 2004. This was the eighth 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 financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. I - 5 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 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, 2004 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 govemment accounting and financial reporting. � � �E�k � � �s _ �A1FS � � �,n„ r President y� $a[,�Y GlCliiO ';f�i'�r�;�� Executive Director r CITY OF BANGOR ORGANIZATIONAL CHART Revised (11-04) • • CITIZEN CITY CITIZEN COMMISSIONS COUNCIL BOARDS _� i� CITY ASSESSING CITY CITY j SOLICITOR CLERK - - -- ' MANAGER - ---- ANIMAL ELECTIONS CONTROL VOTER REGISTRATION - - _ - - - FINANCE INFRASTRUCTURE AND GOVERNMENT CONOM C DEv. �NTERNATIONAL PARK —� � DEVELOPMENT SUPPORT ' OPERATIONS AIRPORT - J COMMUNITY - CIVIC AUDITING I CODE POLICE FIRE HEALTH DEVELOPMENT CENTER ,ENFORCEMENT DETECTIVE FIRE WELFARE ECONOMIC AUDITORIUM FIGHTING TREASURY PLANNING; GENERAL DEVELOPMENT STATE PATROL FIRE RELIEF DOWNTOWN FAIR R KIS ENGINEERING PREVENTION PROGRAMS IMANAGEMEN - ADMINISTRATION BUREAU NURSING SERVICES pARKING SERVICES ADMINISTRATION MANAGEMENT INFORMATIOM PUBLIC WORKS DENTAL � SERVICES - CLINIC PARKS AND ADMIfVISTRATIVE RECREATION __ SERVICES PURCHASING� H�R HUMAN GRANT PARKS RESOURCES PROGRAMS MAINTENANCE WASTEWATER LABOR TREATMENT RECREATION ---- --- RELATIONS SEWER GOLF BAT MAINTENANCE COURSE COMMUNITY CONNECTOR FLEET MAINTENANCE CENTRAL SERVICES City of Bangor, Maine Elected Officials and Principal Administrative Officers 7une 30, 2005 City Council Frank]. Farrington, Mayor Anne E. Allen John H. Cashwell III Peter R. D'Errico Frank). Farrington Geoffrey M. Gratwick Richard D. Greene Susan Hawes Daniel J. Tremble City Staff Edward A. Barrett, City Manager Benjamin F. Birch, City'i4ssessor Gail E. Campbell, City Clerk Norman Heitmann, City Solictor Debbie C�rr, Finance Director School Committee Martha G. Newman, Chair Susan A. Carlisle James Cox � Phyllis S. Guerette Phyllis M. Shubert, Vice Chair Christine Szal Ellen Tobin �chool Staff Robert Ervin, Superintendent of Schools Alan F. Kochis, Director of Business Services I - 9 Fll�ll�l�lel�I� SEeTiOl�l �� JtY��NU/Y �y� �Gerstee�. ��-µ O1j[e�te�e Certified Public Accountants and Business Consultants . Independent Auditor's Report City Council City of Bangor,Maine We have audited the accompanying financial statements of the governmental activities,business-type activities,each major fund,and the aggregate remaining fund information of the City of Bangor,Maine as � of June 30,2005 and for the year then ended,which collectively comprise the City's basic financial statements as listed in the table of contents. These basic financial statements are the responsibility of the City of Bangor,Maine's management. Our responsibility is to express opinions 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 material respects,the respective financial position of the governmental activities,business-type activities,each major fund,and the aggregate remaining fund information of the City of Bangor,Maine,as of June 30,2005,and respective changes in financial posidon and cash flows,where applicable,thereof and the respective budgetary comparison for the General Fund for the yeaz then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards,we have also issued a report dated October 7,2005, on our consideration of the City of Bangor,Maine's internal control over financial reporting and our tests of its compliance with certain provisions of laws,regulations,contracts and grant agreements and other matters. The purpose of that report is to describe the scope of ow testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in conjuncrion with this report in considering the results of our audit. The ManagemenYs Discussion and Analysis,as listed in the table of contents,is not a required part of the basic financial statements but is supplementary information required by 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 infonnation and express no opinion on it. . City Council Page 2 . Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Bangor,Maine's basic financial statements. The introductory section,combining and individual fund financial statements and schedules,and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and,in our opinion,are fairly stated in all material respects in relation to the basic financial statements taken as a whole.The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, . accordingly,we express no opinion on them. 1.c�:�:�, a October 7,2005 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, 2005. In addition to comparative information from the government-wide statements, the City 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 $199.2 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 $21.3 million, a decrease of $2.3 million in comparison with the prior year. The decrease in fund balance is due to the planned use of $1.2 million from the General Fund's Undesignated Fund Balance and a reduction in unexpended bond proceeds available within the Capital Projects Fund. Approximately 77% of the total amount, or $16.5 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 unreserved/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 $6.2 million, or 8.4% 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 $1.8 million (15.8%) and $0.4 million (0.1%), respectively. The increase in governmental fund liabilities is due to an increase in interFund loans payable of $2.5 million, which is merely a timing issue associated with an increase in intergovernmental receivables, and a decrease of $1.0 million in accounts payable, due to the timing of invoices received in the prior year. The enterprise fund liabilities are virtually unchanged. . 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 financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements present the financial picture of the Ciry from the point of view of economic resources measurement and using the accrual basis of accounting, which is similar to II - 2 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 financial 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. , 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 II - 3 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 non-major 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). • Proprietary funds are used to account for essentially the same functions reported as business-type activities in the government-wide financial statements. Enterprise 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 of 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 financial 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 Totall 2005 2004 2005 2004 2005 2004 Current&otherassets 33,494,057 35,839,609 33,140,730 34,522,163 66,634,787 70,361,772 Capital assets, net 67,242,532 62,379,107 191,578,046 186,646,869 258,820,578 249,025,976 Totalassets 100,736,589 98,218,716 224,718,776 221,169,032 325,455,365 319,387,748 Long-term debt outstanding 63,316,604 65,222,279 47,682,467 48,831,169 110,999,071 114,053,448 Otherliabilities 10,923,005 11,075,095 4,359,887 3,023,041 15,282,892 14,098,136 Total liabilities 74,239,609 76,297,374 52,042,354 51,854,210 126,281,963 128,151,584 Net assets: Invested in: Capital assets, net of related debt 41,904,750 36,123,882 150,851,663 146,349,268 192,756,413 182,473,150 Restricted 513,851 510,433 - - 513,851 510,433 Unrestricted (15,921,621)�14,712,973) 21,824,759 22,965,554 5,903,138 8,252,581 Total net assets 26,496,980 21,921,342 172,676,422 169,314,822 199,173,402 u91,236,164 By far the largest portion of the City's net assets (97% or $192.7 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 Ciry'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 $5.9 million, the governmental activity portion shows a deficit of $15.9 million. This is primarily due to $27.9 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 fiscal 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 fiscal 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 of 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 2005 2004 2005 2004 2005 2004 Revenues Program Revenues Chargesforservices 13,444,768 12,435,549 21,011,412 21,018,131 34,456,180 33,453,680 Operating grants&contributions 25,899,908 24,743,028 - - 25,899,908 24,743,028 Capital grants&contributions 4,117,072 2,098,577 7,749,367 3,376,637 11,866,439 5,475,214 General Revenues Property and other taxes 45,113,317 44,603,255 - - 45,113,317 44,603,255 Grants and contributions not Restricted to specific programs 4,487,931 4,512,720 - - 4,487,931 4,512,720 Other 999,634 912,029 895,064 206,665 1,894,698 1,118,694 Total Revenues 94,062,630 89,305,158 29,655,843 24,601,433 123,718,473113,906,591 Expenses General government 6,435,386 6,487,572 - - 6,435,386 6,487,572 Public safety 12,478,326 12,066,567 - - 12,478,326 12,066,567 Health,welfare and recreation 4,000,249 3,606,827 - - 4,000,249 3,606,827 Public buildings and services 7,609,989 7,360,360 - - 7,609,989 7,360,360 Otheragencies 3,514,658 3,273,003 - - 3,514,658 3,273,003 Education 42,659,395 40,279,055 - - 42,659,395 40,279,055 - Unclassified 65,639 389,598 - - 65,639 389,598 Restricted grants 7,239,601 6,857,039 - - 7,239,601 6,857,039 Interest on debt 3,166,250 3,083,447 - - 3,166,250 3,083,447 Capital maintenance expenses 1,674,034 2,666,118 - - 1,674,034 2,666,118 Sewer Utility - - 5,859,588 5,751,710 5,859,588 5,751,710 - Airport , - - 16,368,681 15,060,963 16,368,681 15,060,963 Park Woods - - 598,854 531,986 598,854 531,986 Parking - - 1,425,508 1,431,983 1,425,508 1,431,983 Bass Park - - 1,889,215 1,935,653 1,889,215 1,935,653 Municipal Golf Course - - 592,323 626,739 592,323 626,739 Economic Development - - 397,881 338,795 397,881 338,795 . Total Expenses 88,843,527 86,069,586 27,132,050 25,677,829 115,975,577111,747,415 Excess(deficiency) before special items and transfers 5,219,103 3,235,572 2,523,793 (1,076,396) 7,742,896 2,159,176 Transfers (837,806) (948,416) 837,806 948,416 - - Change in net assets 4,381,297 2,287,156 3,361,599 (127,980) 7,742,896 2,159,176 II - 6 Governmental Activities The cost of all governmental activities was $88.8 million. As shown on the Statement of Activities, the amount of the total financed by the City's property taxpayers was $40.3, million or 45.4%. Those who directly benefit from the program provided $13.4 million in payments, and other governments and organizations subsidized certain activities with operating grants and contributions in the amount of $25.9 million. Capital grants and contributions accounted for $4.1 million. The City also received $10.3 million in other general revenues such as State Revenue Sharing, motor vehicle and boat excise taxes, homestead exemption, and interest earnings. Expenses and Program Revenues-Governmental Activities 45 40 35 � 30 � 25 I �E 20 .: 15 � 10 � O � R ❑Expenses O Revenues cc�c�,c� `�y�'`,pco`Qy'`ocy��a�c�cyo�p'�c�y C�,��\�,� ��P��JJc�L`�� ' �c�� c��d�,'c ��'�c�,c��cac _ . �� a. Jo�``�,�` � Q ��a Q� C� Total governmental activities expenses increased 3.2% over the prior year. The largest single increase was in the Education function. This increase was directly attributable to - increased wages and benefits, specifically health insurance. � II - 7 Revenues by Source-Governmental Activities 50�o io�o �ao ❑ChargesforServioes o , 4 � � ❑Operating Grants& Contributions ❑Capital Grants&Contributions ❑Properly Taxes 28% 00therGeneral 43 0 � ❑Unrestricted Grants& lo Contributions ❑Other Unrestricted Total governmental activities revenues increased 5.3%. 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 increased $2.0 million due to state and federal grants received in conjunction with infrastructure improvements along the waterfront. There was a slight increase in properly tax revenue due to continued growth in taxable valuation. In addition, the growth in the stock market was responsible for increased earnings on investments. Lastly, as State general assistance claims increase, so does the reimbursement from the State of Maine. . Business-type Activities Total expenses of business-type activities increased 5.6%, while total net assets increased by $3.4 million. The majority of both increases are attributable to the operation of the Airport. Expenses and Program Revenues- Business-type Activities 20 18 16 ,� 14 0 12 . �� 10 ❑Expenses � g ❑Revenues v 6 � 4 2 p - - �J�\� P��, ��y Q��c�, yQ�� J�� \°Q��c�. �s• Q�t� eP �� °� �,� c° �� • II - 8 Revenues by Source - Business-type Activities Unrestricted Investment Earnings 3% : pital Grants and Transfers Contributions - -- 3��0 Char9esforSeruices 25% �, 690�o BCharges for Services - ■Capital Grants and Contributions ❑Unrestricted Investment Earnings ❑Transfers Total business-type activities revenues increased by $5.1 million. This increase is attributable to additional capital grants and contributions and the continued upswing in the investment market. The increase in capital grants and contributions is not unexpected. The source of funding of Airport capital projects is cyclical in nature. In one year the majority may be provided by grants while the following year's may be primarily supported with local monies such as 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 Ciry'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 $21.3 million, a reduction over prior year's balance of $23.0 million. Approximately 77% of this total ($16.5 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 prior periods ($2.7 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 $10.7 million ($4.5 million of which has been designated by management for subsequent years' expenditures) and the II - 9 general fund's total fund balance was $13.1 million, which represents a $.7 million reduction from the prior year's balance of $13.8 million (prior to the Restatement of beginning fund balance). 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 $1.2 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 increased $3.4 million to a total of $172.7 million, including net asset deficits of $1.6 million in the Bass Park Fund and $200 thousand in the Parking Fund. The Airport Fund shows a significant increase in net assets for 2005, wholly attributable to an increase in capital grant funds. The Sewer, Municipal Golf Course, and Economic Development enterprise operations individually experienced increases in net assets ranging from $5 thousand to $77 thousand. Decreases in net assets were experienced by the Park Woods, Parking, and Bass Park Funds ranging from $124 thousand to $177 thousand. General Fund Budgetary Highlights � Differences between the original budget and the final amended budget are the result of $137 thousand in Federal Emergency Management Agency funds that were appropriated to cover costs associated with specific snow events. Capital Asset and Debt Administration Capital assets. As of June 30, 2005, the City of Bangor's investment in capital assets for its governmental and business-type activities amounts to $258.8 million (net of accumulated depreciation), an increase of $9.8 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 3.9% (a 7.8% increase for governmental activities and a 2.6% increase for business-type activities). Major capital asset events during the current fiscal year included the following; • Investment of$3.4 million in infrastructure on the City's waterfront . Improvements to local roads and sidewalks in the amount of $1.1 million through state and local funding sources • Replacement of municipal vehicles at a cost of .7 million, including a fire pumper truck • Upgrade of the City's BAT Community Connnector (public transit) Storage facility in the amount of$400 thousand • Continuation of the City's aggressive combined sewer overtlow program in the � amount of$1.8 million II - 10 • State, federal, local, and defense department funding to finance $6.5 million toward the reconstruction of runways, taxiways, perimeter roads, and ramps at Bangor International Airport • Additions and improvements to properties leased by Bangor International Airport. • Construction of a deicing fluid collection system and fuel truck containment area at Bangor International Airport in the amount of$1.3 million. Capital Assets (net of depreciation) Governmental Business-type Activities Activities Land and improvements 5,681,330 3,806,066 Buildings and improvements 31,770,249 16,512,143 Machinery and equipment 3,993,549 2,316,257 Vehicles 4,788,413 _ Infrastructure 7,236,169 42,407,911 Parking structures - 4,350,321 Aircraft operational assets - 114,101,322 Construction in process 13,772,822 8,084,026 Tota I 67,242,532 191,578,046 Additional information on the City's capital assets can be found in Note C, Detailed Notes on all funds, of this report. Debt Administration Bonded Debt Outstanding (in millions) $46.8 �Governmental Activities B Business-type Activities $59.4 At fiscal year end, the City had a total outstanding bonded debt of $106.2 million, a decrease of $2.7 million during the year. The decrease is due to $5.5 million in debt that was issued in June 2004 that was applied in 2005 to refund $5.3 million in debt issued in 1994. The City's general obligation debt maintained a '�AA�� rating from Standard & Poor's and a ��Aa3" rating from Moody's. II - 11 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 $279.2 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 2004 is 4.30%, which compares favorably to the State's rate of 4.60%. • 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. Beginning in late 2004 and continuing into early 2005, the Maine State Legislature completed work on a sweeping change that affects all levels of Maine's governments . Commonly referred to as LD 1, this legislation was crafted in response to several citizen initiated referendums that appeared on the statewide ballot in November 2004. At that time, voters approved a measure calling for the State to fund 55% of the total cost of local K-12 education. A second initiative that would have severely limited local revenues, while defeated by the voters, led many to conclude that Maine citizens were seeking appropriate limitations on Maine's overall state and local tax burden. LD 1 established a system designed to limit the increase in the municipal properly tax levy and spending on education while ramping up the State's share of education costs through the Essential Programs and Services funding model. The implementation of LD 1 complemented a number of long-standing objectives of officials of the City of Bangor including controlling the rate of increase in properly taxes and seeking additional State funding for the Bangor School Department. LD 1 ties the allowable increase in the municipal property tax levy to a defined growth factor. The growth factor combines the statewide ten-year real growth in total personal income and the local government's percentage increase in new taxable value. This combined factor is applied to the City's base municipal property tax levy to calculate the allowable increase in this levy. Once the allowable increase is calculated, it must be lowered to adjust for any net new state revenues (e.g., increases in State revenue sharing in excess of the allowable growth factor). The City followed the methodology set forth in LD 1 during the process of preparing and adopting its Fiscal Year 2006 budget. For Fiscal Year 2006, the City Council voted to increase the City's property tax levy limit as allowed by Statue to recognize a significant increase in State reimbursement for the General Assistance program. The size of this increase triggered the revenue offset provisions of LD 1, requiring a corresponding decrease in the City's tax levy. Since State II - 12 reimbursements for General Assistance must be spent on this program and given that General Assistance is a State mandate over which the City has limited to no contro�, management considers this levy limit increase to be a technical modification to the LD 1 requirements. All of which resulted in the passage of the municipal budget within the requirements of LD 1. LD 1 also implemented the Essential Program and Services Model for educational funding. This model sets forth a comprehensive methodology for computing the cost of providing essential educational programs to Maine's children. It also sets forth a schedule designed to increase the State's share of aid to education to 55% of Essential Programs and Services funding over a three-year period. This change resulted in the City receiving in excess of an additional $2 million in State School Aid. While the model recognizes what it considers essential programs and their appropriate funding level, the Bangor School Department has identified a number of programs that are either under- funded or not funded by this system. As a result, both the School Committee and tfl�e City Council took the necessary action to increase the limits imposed by LD 1 in order to appropriately fund such services and programs. The adopted Fiscal Year 2006 City and School Department budgets fully comply with all requirements of LD 1. In addition to the changes brought forth by LD 1, the State enacted several other measures to provide property tax relief to its residents. These include doubling the base homestead exemption on owner-occupied residential property to $13,000 and remov�ng the schedule for reducing the homestead exemption for residential properties valued in excess of $125,000. The State also expanded the so-called "Circuit Breaker Program" that provides property tax relief to low-income homeowners and renters. Management continues to track other areas of revenue and expenditure concerns. On the revenue side, we are focusing on flat rates of return on investments and the ab��lity 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 volatile. We anticipate . returning to near double-digit increases for employee health insurance and somewhat lower increases for commercial insurance coverage. We are also concerned with increases in energy costs and have begun implementing a series of short and long term efforts to reduce the City's energy use. Finally, 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 fees for both governmental and business-type activities are reviewed on an an�ual basis to ensure that fee structures are sufficient to cover the cost of providing such services. While many fees are adjusted annually for inflation, no significant increases 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 J - �ASIC FINANCIAL-STATEMENTS � � : � _ � � ��. - w�� i � -�--_ =�,� ,, �. _ ,�_, �tJ E [ �, 4 `'' , �� ,� ' � » ,�. ��; �,� _F i�l v � 7f M � -t;:.� '�. . , M1!'_,-�'� . T __. __ ; ( � � Exhibit 1 CITY OF BANGOR,MAINE Statement of Net Assets June 30,2005 Governmental Business-type Activities Activities Total ASSETS � Cash and cash equivalents $ 212,871 $ 215,455 $ 428,326 Investments 11,467,178 25,013,240 36,480,418 Receivables: Accounts (net of allowance of$684,712) 880,325 3,949,897 4,830,222 Intergovernmental 5,409,143 1,282,233 6,691,376 Taxes and liens receivable-prior years 931,254 - 931,254 Taxes receivable- current year 1,107,895 - 1,107,895 Deferred special assessments 30,i30 88,700 118,830 Due from water district - 292,935 292,935 Loans(net of allowance of$130,131) 5,768,672 2,343,506 8,112,178 Internal balances 1,948,355 (1,948,355) - Inventories 605,286 90,984 696,270 Prepaid items 44,121 99,526 143,647 Other assets �� 5,088,827 1,712,609 6,801,436 Non-depreciable capital assets 18,813,370 10,659,862 29,473,232 Depreciable capital assets,net 48,429,162 180,918,184 229,347,346 Total assets 100,736,589 224,718,776 325,455,365 LIABILITIES Accounts payable and other current liabilities 2,931,529 4,028,876 6,960,405 Accrued payroll 3,400,475 263,947 3,664,422 Uneamed revenues 4,591,001 67,064 4,658,065 Noncurrent liabilities Due within one year 4,424,954 4,221,470 8,646,424 Due in more than one year 58,891,650 43,459,374 102,351,024 Totalliabilities 74,239,609 52,040,731 126,280,340 NET ASSETS Invested in capital assets,net of related debt 41,904,750 150,851,663 192,756,413 Restricted for: Nonexpendable trust principal 513,851 - 513,851 Unrestricted (15,921,621) 21,824,759 5,903,138 � Total net assets $ 26,496,980 $ 172,676,422 $ 199,173,402 � See accompanying notes to financial statements. II- 14 Exhibit 2 CITY OF BANGOR,MAINE Statement of Ac6vities For the Fiscal Year Ended June 3Q 2005 � Net(expense)revenue and c6anges Prop,ram Revenues in net assets Operating Capital Primary Government , Charges for grants and grants and Governmental Business-type Functions/programs Ezpenses services contribu[ions contributions activi[ies activihes Totat Primary govemment: Govemmental acuvities: General govemment $ 6,435,386 $ 1,447,058 $ 10,260 $ - $ (4,978,068) $ - � (4,978,068) Publicsafery 12,478,326 1,908,000 18,925 - (]0,551,401) - (10,551,401) Health,welfareandrecreation 4,000,249 674,364 I,604,732 - (1,721,153) - (I,721,153) Public buildings and services 7,609,989 3,766,334 142,870 - (3,700,785) - (3,700,785) Otheragencies 3,i14,658 - 33,093 - (3,481,565) - (3,481,565) Education 42,659,395 4,549,286 18,968,042 - (19,142,067) - (19,(42,067) Unclassified 65,639 20,036 - - (45,603) - (45,603) Restrictedgrants 7,326,307 1,079,690 5,208,692 - (1,037,925) - (1,037,925) Interestondebt 3,166,250 - - - (3,166,250) - (3,I66,250) Capital mainteaaace ezpenses 1,674,034 4,117,072 2,443,038 2,443,038 Total govemmental activities 88,930,233 13,444,768 25,986,614 4,117,072 (45,381,779) (45,381,779) Business-type acGvities: Sewer Utility 5,859,588 5,970,615 - - - 11 I,027 I 1 I,027 Airport 16,368,681 11,527,061 - 7,749,367 - 2,907,747 2,907,747 Park Woods 598,854 3(0,389 - - - (288,465) (288,465) Pazking 1,425,508 943,990 - - - (481,518) (481,518) Bass Park 1,889,215 l,238,707 - - - (650,508) (650,508) Municipal Golf Course 592,323 586,956 - - - (5,367) (5,36� Economic Development 397,881 433,694 35,813 35,813 � Total business-type ac6vities - � 27,132,050 21,011,412 7,749,367 1,628,729 1,628,729 Total primary government $ 116,062,283 $ 84,456,180 $ 25,986,614 $ 11,866,439 (45,381,779) 1,628,729 (43,753,050) General revenues: Property taxes,levied for general purposes 40,302,810 - 80,302,810 Payment in lieu af taxes 186,500 - 186,500 Excise taxes 4,358,409 - 4,358,409 Franchise fees 265,598 - 265,598 Grants and contribudons not restricted to specific programs: Homesteadexempaon 748,180 - 748,180 Other State aid 22,034 - 22,034 Statc Revenue Sharing 3,717,7U - 3,717,717 Unrestricted investrnent eamings 519,225 895,064 1,414,289 Indirect cost c6arges � 472,056 - 472,056 Miscellaneous revenues 8,353 - 8,353 Transfers (837,806) 837,806 Total general revenues and transfers 49,763,076 1,732,870 51,495,946 Change in net assets 4,381,297 3,361,599 7,'I42,896 Net assets,beginning of year-Res[ated Note F 22,115,683 169,3(4,823 I91,430,506 Net assets,end of year $ 26,496,980 $ 172,676,422 $ 199,173,402 See accompanying no�es to frnaneial s�a�emen�s. ❑-IS Exhibit 3 CITY OF BANGOR,MAINE Balance Sheet Governmental Funds June 30,2005 Community Capital Other Total Development Projects Governmental Governmental General Block Grant Fund Funds Funds ASSETS Assets: Cash $ - $ 212,871 $ - $ - $ 212,871 , Investments 8,715,652 - - 2,751,526 11,467,178 Receivables: Taxes 2,039,149 - - - 2,039,149 Accounts(net of allowance of$268,6ll) 880,165 - - 160 880,325 Interfund loans 3,976,594 413,184 - 378,582 4,768,360 Intergovemmental 1,673,034 89,918 3,336,236 309,955 5,409,143 Loan(net of allowance of$130,131) 1,210,892 3,542,152 - 1,015,628 5,768,672 Deferred special assessments - - 30,130 - 30,130 Inventory,at cost 605,286 - - . - 605,286 Investment of unexpended bond proceeds - - 5,088,827 - 5,088,827 Prepaid items 42,948 1,173 - - 44,121 Totai assets $ 19,143,720 $ 4,259,298 $ 8,455,193 $ 4,455,851 $ 36,314,062 LIABILITIES AND FUND BALANCES Liabilities: Accountspayable $ 770,351 $ 7,792 $ 902,774 $ 7,021 $ 1,687,938 Accrued wages and benefits payable 3,400,475 - - - 3,400,475 Interfund loans payable - - 2,254,438 565,567 2,820,005 Uneamedrevenues 1,869,225 3,542,152 - 988,371 6,399,748 Due to rehabilitation recipients - 703,777 - 703,777 Interfund advance - - - - Total]iabilities 6,040,051 4,253,721 3,157,212 1,560,959 15,011,943 Fund balances: Reserved for: Encumbrances 951,462 56,806 1,639,027 16,998 2,664,293 � Prepaid items 42,948 - - - 42,948 Advances to other funds 1,432,689 - - - 1,432,689 Loans - - - 131,759 131,759 Nonexpendable hust principal - - - 513,851 513,851 Unreserved: Designated(Note n 4,524,375 -. - - 4,524,375 Undesignated,reported in: Genetal fund 6,152,195 - - - 6,152,195 Special revenue funds - (51,229) - 1,861,976 1,810,747 Capital projects funds - - 3,658,954 - 3,658,954 Permanent funds - - - 370,308 370,308 Total fund balances 13,103,669 5,577 5,297,981 2,894,892 21,302,119 Total liabilities and fund balances $ 19,143,720 $ 4,259,298 $ 8,455,193 $ 4,455,851 Amounts reported for govemmental activities in the statement of net assets are different because: Capital assets used in goveramental activities are not financial resources and,therefore,are not ' reported in the funds. 67,242,532 i Other long-term assets are not available to pay for current-period expenditure and,therefore, are deferred in the funds. 1,808,747 Long-term liabilities,including bonds payable,are not due and payable in the current period and,therefore,are not reported in the funds (63,856,418) Net assets of govemmental funds $ 26,496,980 See accompanying notes to financial statements. � II-16 Exhibit 4 CITY OF BANGOR,MAINE ' Statement of Revenues,Expenditures and C6anges in Fund Balances Governmental Funds For the Fiscal Year Ended June 30,2005 Commuoity Capital Other Total Development Projects Goveromental Goveromental General Block Grant Fund Funds Funds Revenues: Taxes $ 43,772,131 $ - $ - $ 1,172,407 $ 44,944,538 Intergovemmental 25,265,853 1,644,838 4,069,072 3,504,475 34,484,238 Licenses and permits 655,745 - - - 655,745 Charges for services 11,662,504 - - 498,069 12,160,573 Program income - 405,386 - 3,767 409,153 Revenue from use of money and property 1,017,736 26,172 58,104 153,947 1,255,959 Other 37,288 2,549 48,000 80,615 168,452 Total revenues 82,411,257 2,078,945 4,175,176 5,413,280 94,078,658 Expenditures: Current: General govemment 4,732,331 - - - 4,732,331 Public safety 12,352,418 - - - 12,352,418 Health,welfare and recreation 3,865,578 - - - 3,865,578 Public buildings and services 8,301,848 - - - 8,301,848 Other agencies 3,742,545 - - - 3,742,545 Education 43,887,274 - - - 43,887,274 Unclassified 2,042,912 - - - 2,042,912 Restrictedgrauts - 2,133,039 - 5,245,859 7,378,898 Capital outlay 402,139 - 8,279,633 - 8,681,772 Debt service 1,606,202 - ],701,282 - 3,307,484 Total expenditures 80 933 247 2 133 039 9 980 915 5 245 859 98 293 060 _ Excess(deficiency)of revenues over(under)expenditures ' 1 478 O10 (54 094) (5 805 739) 167 421 (4 214 402) Other financing sources(uses): � General obligation debt - - 2,650,000 - 2,650,000 Saleofassets 48,085 - 58,810 - ]06,895 Transfers to other funds (2,834,443) - (3,566) (293,041) (3,131,050) Transfers from other funds 47,892 - 2,244,071 1 281 2 293 244 Total other financing sources(uses) (2 738 466) - 4 949 315 (29]760) 1 919 089 Changes in fund balances (1,260,456) (54,094) (856,424) (124,339) (2,295,313) Fund balances,beginning of yeaz(Restated Note F) 14 364 125 59 671 6 154 405 3 019 231 23 59'1432 Fund balances,end of year $ 13,103,669 $ 5,577 $ 5,297,981 $ 2,894,892 $ 21,302,119 See aCcompanying notes to financial statements. 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, 2005 Net change in fund balances-total governmental funds (from Exhibit 4) $ (2,295,313) 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$7,361,595 exceeded depreciation expense of$2,399,628 in the current period. 4,961,967 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 62,324 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 repayments of$4,113,741 exceeded proceeds of$2,650,000. 1,463,741 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 governmental funds. 188,578 Change in net assets of governmental activities(see Exhibit 2) $ 4,381,297 ., See accompanying notes to�nancial statements. II- 18 Exhibit 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 30,2005 Variance with Final Budget Budgeted amounts Positive Original Final Actual (Negative) Revenues: Taxes $ 43,592,898 $ 43,592,898 $43,772,131 $ 179,233 Intergovernmental 20,355,086 20,492,527 21,560,713 1,068,186 Licenses and permits 409,450 409,450 655,745 246,295 Charges for services municipal 6,313,378 6,313,378 6,886,047 572,669 school 4,618,982 4,618,982 4,549,286 (69,696) Fines,forfeits and penalties 21,300 21,300 37,288 15,988 Revenue from use of money and property municipal 693,251 693,251 594,813 (98,438) � school - - - - Total revenues 76;004,345 76,141,786 78,056,023 1,914,237 Expenditures: Current: General govemment 4,036,515 4,072,015 4,047,665 24,350 Public safety 12,371,707 12,371,707 12,470,787 (99,080) Health,welfare and recreation 3,329,673 3,330,673 3,865,578 (534,905) Public buildings and services 8,028,809 8,165,250 8,300,731 (135,481) Other agencies 3,745,594 3,745,594 3,742,545 3,049 Education 40,746,213 43,358,296 40,328,847 3,029,449 Debt service 1,614,009 1,614,009 1,611,606 2,403 Unclassified 2,182,434 2,182,434 2,037,508 144,926 Total expenditures 76,054,954 78,839,978 76,405,267 2,434,711 Excess(deficiency)of revenues over expenditures (50,609) (2,698,192) 1,650,756 4,348,948 Other financing sources(uses): Appropriaton from designated fund balance .1;221,834 1,221,834 1,097,652 (124,182) Appropriation from undesignated fund balance 1,239,773 1,239,773 - (1,239,773) Appropriation to designated fund balance (50,000) (50,000) (50,000) - Sale of assets 11,000 11,000 38,488 27,488 Transfers to other funds (1,679,208) (1,680,708) (1,680,708) - Transfers from other funds 48,000 48,000 40,526 (7,474) Operaring transfers (740,790) (740,790) (740,790) - Total other financing sources(uses) 50,609 49,109 (1,294,832) (1,343,941) Net change in fund balance $ - $ (2,649,083) 355,924 $ 3,005,007 Undesignated fund balance,beginning of year 5,922,307 Change in balances carried (126 036) Undesignated fund balance,end of year $ 6,152,195 See accompanying notes to financial statements. II- 19 Exnibic 7 CITY OF BANGOR,MAINE Statement of Net Assets Proprietary Funds June 30,2005 Business-type Activities-Enterprise Funds Sewer Bass Monicipal Economic Utility AirpoA Park Parking Park Gol[ Development Tolals Fund Fand Woods Fund Fund Course Fund Currenlyear � ASSETS Cu'rent assets Cazh $ 35,165 $ 96,384 $ 2,492 $ I1,335 S 53,309 S 16,242 $ 528 $ 215,455 Inveshnents 2,525,642 8,795,151 - 304,786 - 839,882 357,505 12,822,966 Accountsreceivable 1,353,396 2,878,906 - 2,542 131,154 - - 4,365,998 Lessallowanceforuncollectibleaccounis (22,601) (366,390) - - (27,110) - - (416,101) Net accounis receivable 1,330,795 2,512,516 - 2,542 104,044 - - 3,949,897 Due from other govemments - 1,282,233 - - - - - 1,282,233 Due from water districl 292,935 - - - - - - 292,935 Ioventories,at cosl - 77,736 - - 13,248 - - 90,984 Prepaid items 38,880 33,575 - - 27,071 - - 99,526 Total current assets 4,223,417 I2,797,595 2,492 318,663 197,672 856,124 358,033 16,753,996 Noncurtent assets Capital Assets Land and improvements 683,865 - 295,025 - 828,921 1,431,040 1,440,071 4,678,922 Buildings and improvements 27,539,270 - 1,933,061 - 5,587,727 238,408 3,600,785 �38,899,251 Machinery and equipment 5,066,813 - 22,952 - 144,428 287,583 - 5,521,776 In6astructure 50,245,044 - - - - - - -50,245,044 Aircraft operational assets - 215,743,709 - - - - - 215,743,709 Parking structures - - - 9,968,268 - - - 9,968,268 Construction in process 2,702,036 4,091,640 - - - - 1,290,350 8,084,026 � 86,237,028 219,835,349 2,251,038 9,968,268 6,561,076 1,957,03t 6,331,206 333,I40,996 Lessaccumulateddeprecia6on (26,937,978) (101,642,387) (919,701) (5,617,947) (4,895,516) (1,080,130) (469,291) Q41,562,950) Net capital assets 59,299,050 118,192,962 1,331,337 4,35Q321 1,665,560 876,901 5,861,915 191,578,046 imestmenis - 12,190,274 - - - - - I2,19Q274 Loans receivable - 2,218,748 - - - - 124,758 2,343,506 Deferted special assessments 88,700 - - - - - - 88,700 � Investment of unexprnded bond proceeds - - - I 19,298 - - - I 19,298 Due from bond trustee �,453,791 - - - - - - 1,453,791 Deposits - - 15,000 . - - - - 15,000 Bond issuance costs(net of accumulated amortization of$290,542) 124,520 - - - - - - 124,520 Total assets 65,189,478 145,399,579 1,348,829 4,788,282 1,863,232 1,733,025 6,344,706 226,667,131 � , See accompanying notes to financial statements. Continued on next page � II-20 Ex6ibit 7(con't) CITY OF BANGOR,MAINE Statement of Net Assets Proprietary Funds June 30,2005 Business-type Activities-Enterprise Funds Sewer Bass Municipal Economic Utility Airport Park Parldug Park Golf Developmeot Totals Fund Fund Woods Fund Fund Course Fund Currentyear LIABILI77ES Current liabilities Accouutspayable 493,252 2,460,796 25,999 5,536 21,095 29,122 591,232 3,627,032 Acccued wages and beaefits payable 40,808 I76,894 2,050 5,998 22,457 15,740 - 263,947 Accrued interest 245,564 ' S7,759 - 42,911 19,915 - 33,144 399,293 Workers'compensation I5,101 ]06,153 - 3,040 4,742 - - 129,036 Unearnedreveuue - - - 42,401 24,663 - - 67,064 Interfundloans - - 80,000 - 1,651,355 - 217,000 1,948,355 General obligation debt payable 2,680,361 480,342 - 456,878 125,745 864 98,659 3,842,849 Deferred amount on refiwding (24,560) - - (21,649) - - - (46,209) Other liabilities - 551 2,000 - - - - 2,551 Total cwrent liabilities 3,450,526 3,282,495 110,049 535,115 1,869,972 45,726 940,035 10,233,918 Long-temi liabilities Workers'compensation 74,899 69,746 - 6,960 5,258 - - 156,863 General obligation debt payable 26,019,973 8,523,365 - 4,456,768 1,530,380 92,647 2,308,098 42,931,231 Deferred amount on tefundiug (53,098) - - (53,263) - - - (106,361) Accrued compensated absences 45,234 188,186 10,558 6,165 23,251 8,416 - 281,810 Other long-term liabilities 285,902 - 193,061 14,285 - - 493,248 Total long-term liabili4es 26,372,910 8,781,297 203,6I9 4,43Q915 1,558,889 101,063 2,308,098 43,756,791 Totalliabilities 29,823,436 12,063,792 3I3,668 4,966,030 3,428,861 146,789 3,248,133 53,990,709 NET ASSETS Iuvested iu capital assets,net of related debt 31,626,600 113,012,962 1,331,337 69,650 479,055 876,901 3,455,158 150,851,663 Unrestricted 3,739,442 20,322,825 (296,176) (247,398) (2,044,684) 709,335 (358,585) 21,824,759 Total netassets $ 35,366,042 $ 133,335,787 $ 1,035,161 $ (177,748) $ (],565,629) $ 1,586,236 $ 3,096,573 $ 172,676,422 See accompanying notes to ftnancial statements. Contiuued 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 30,2005 Business-type Activities-Enterprise Funds _ Sewer Bass Municipal Economic Utility Airport Park Parking Park Golf Development Totats Fund Fund Waods Fund Fund Course Fund Curtentyear Operating revenues Chazgesforsrniccs E 5,970,615 S 11,489,194 $ 310,389 E 943,990 E 1,238,707 5 586,956 S 304,470 $ 20,844,321 Operating cxpatsa Operating expensa otha than depreciationandamort'vation 3,195,199 9,720,828 509,"731 708,576 1,676,957 486,048 190,840 16,490,181 Depreciarionandamorti�ation 1,639,128 6,300,680 89,123 478,36I 137,496 98.507 110,895 8,854,210 Totaloperatingexprnsa 4,834,327 ''16,021,508 598,854 1,186,959 1,814.453 586,555 301,735 25,344,391 Operatingincome(loss) 1,136,288 (4,532,314) (286,465) (242,969) �(575,746) 401 2,735 (4,500,070) Nonoperating revrnue(expensa) Interest income 64,522 874,330 32 5,557 24 15,272 14,237 973,974 Unrealized lass on investmenis - (78,910) ' ' - - - (78,910) ]nterestezprnse (1,025,261) (347,173) ' (237,463) (74,762) (5.768) (96,146) (1.786,573) Grants/contributim�s raeived for capiW azsets - 7,749,367 - - - - - 7,749,367 Miscellaneous income(expense) - 37,867 (1,08� - 129,224 166,005 'fotalnonoperatingrevenue(expenses) (960,739) 8,235,461 32 (232,992) (74,736) 9,504 47,315 7,023,863 Net income(loss)beforc operating transfas 175,549 . 3,703,167 (288,433) (475,961) (650,484) 9,905 50,050 2,523,793 TransCers ro otha Ponds (100,000) - - Q0,849) - (5,292) - Q 16,141) Transfers from other funds I,500 164,601 314,006 473,640 - 953,947 Change in net asseB 77,049 3,703,167 (123,632) (172,804) (176,844) 4,613 50,050 3,361,599 NetAsse6,beginningoCyear(RestateANote� 35,288,993 129,632,620 1,158,793 (4,944) (1,388,785) 1,581,623 3,046,523 169,3I4,823 Net Assets end of year S 35,366,042 S 133a35,787 S 1,035,161 $ (177,748) $ p,565,629) S 1,586,236 S 3,096,573 S 172,676,422 See accompanying notes to f nancial statements. n-zz Exhibit 9 CITY OF BANGOR,MAINE Statement of Cash Flows-Proprietary Funds For the Fiscal Year Ended June 30,2005 Business-type Activities-Enterprise Funds Sewer Bass Munleipal Eeonomfe Utflity Airport Park Parkfng Park Col! Devetopment Fund Fund Woods Fund Fund Course Fund Totsl Cash ttows from operating activitics Cazhreceivedfromcustomers S 6,027,250 $ �5,050,562 S 310,389 $ 937,228 5 1,161,635 E 586,956 $ 304,470 S 24,378,490 Cash paid lo suppliers for goods and services (2,122,246) (3,077,458) (431,749) (594,988) (917,386) (212,820) (226,256) (7,582,903) Cashpaidtoempioyeesforsmices (1,143,359) (4,634,270) (71,162) (186,096) (766,377) (275,063) (7,276,327) Net cazh provided by(used in)operating activifia 2,761,645 7,I38,634 (192,522) ]56,144 (522,126) 99,073 76,214 9,SI9,260 Cash ilows fmm noncapi�al(nancing activities � Interfund loans(repaymenis) - (25,47'n 26,000 - 287,000 - (91.000) ]96,523 TransCers in 1,500 - 164,801 314,006 473,640 - - 953,947 Transfersout (100,000) (]0,649) (5,292) (116,141) Nel cu6 provided by(used in)noncapital financingaclivitia (98,500) (25,477) 192,801 303,157 760,640 (5,292) (9�,000) 1,036,329 Cash tlows from capitai and related financing activities Proceeds from general obligation bonds 2,650,000 2,315,000 - - - - 950,000 5,915,000 AcquisitionandconstructionofcapitalasseLs (1,775,235) (11,480,606) - - - (25,518) (648,015) (13,929,374) Principal paid on general obligation bonds (4,602,629) (346,474) - (2,067,262) Q22,462) (64'n 4,164 (7,135,310) fitcrat paid on gcneral obligativn bonds (1,055,405) (334,808) - (251,698) (76,454) (5,768) (91,323) (1,815,456) Procecds Gmn sale of equipment - 60,428 • - - - 129,224 �169,652 GraN monies raeived for capiul assets - 5,701,972 - - - - - 5,701,972 Investment of unexpended bond procceds (1;208,098) 1,748,579 540,481 Net cazh provided by(used in)capital and related financingactivities (5,991,367) (4�,084,488) (570,381) (198,916) (31,933) 344,050 (]0,533,035) Cazh Oows from investing activitia �� Netsala(purchues)ofinveslments 2,661,957 (3,768,74'n • (78,611) 1,5�0 (175,633) (357,505) (1,71�,029) Interes�on invahnenu 68,054 795,420 32 6,225 24 15,272 14,238 899,265 � Loan repaymenis 10,531 4,900 15,431 Net cazh provided by(used in)imating acrivities 2,730,011 (2,962,796) _ 32 (72,386) 1,534 (]60,361) (338,367) (802,333) Netinerease(decrease)incash (598,21I) 66,073 311 (183,46� 4t,130 (98,513) (7,103) (779,779) Cash,beginning ofyear 633,376 30,3I1 2,161 194,801 � 12,179 ll4,755 7,631 995,234 Cash,end of year $ 35,165 $ 96,384 S I,492 $ 11,334 $ 53�09 $ 16,2d2 S 528 $ 215,455 Scheduie otnoncazh invating,capital and financing azrivities: During Um yeaz,the Ai�port Fund had an unrealized loss on invatrnrntt in Ihe amount of$78,910. See accompanying notes to financial statements. Continued on next page II-23 Exhibit 9(con't) CITY OF BANGOR,MAINE Statement of Cash Flows-Proprietary Funds For the Fiscal Year Ended Juae 30,2005 Business-type Activities-Enterprise Funds Sewer Bass Municipal Economic Utflity Airport Park Parking Park Gol( Development Fund Fund Woods Fund Fund Course Fund Total Rxonciliation of operating incmne(loss)to ne� cash provided by(used in)operating activi[ies OperafingincomeQoss) . 3 1,136,288 $ (4,532,314) S (288.465) E (242,969) $ (575,74� S 401 S 2,735 E (4,500,070) - Adjusuncnts to reconcile operating income Qoss) V ro nn cash provided by(used in)operating activitia DeQreciation and amortiza6on 1,639,128 6,300,680 69,123 478,381 137.496 98,507 L0,895 8,854,210 Prmision for uncollectible accounts - 36,637 - - - - - 36,637 Changes in assets and liabilities: Qnerease)decreave in acwunts raeivabie 185,025 3,561,369 - (846) (38,836) - - 3,706,712 QnReasc)decreue in due from water dishicf (128,390) - - , - - - - Q 28,390) (Increase)decrease in invrntories - (7,106) - - (66) - - (��Z) (Innease)decrease in prepaid ilems (33,075) (9,966) - - 9 - - (43,032) Inereaze(decrease)in atco�mis payable (22,934) 1,804,781 3,296 (72,248) (9,93� 6,551 (33,416) 1,674,093 . Inerease(deaease)in imeamed revenue - - - (5,9t6) (39,236) - - (aa,152) - tncreazo(deaease)inothacurrentliabilitia (14,39'n (15,24'n 3,524 (258) 3,168 _ (6,386) - (29,576) Totaladjustrnenis 1,625,357 ll,671,146 95,943 399,113 53,618 98,672 75,479 14,019,330 Net cash provided by(used In)operatlng activitia S 2,761,645 $ 7,ll8,83G S (192,522) S 156,t44 $ (522,128) S 99,073 $ 78,214 $ 9,519,260 See accompanying notes m financinl s7arements. � ' Continued from previous page � [I-24 Exhibit 10 CITY OF BANGOR,MAINE Statement of Fiduciary Net Assets Fiduciary Funds June 30,2005 Agency Fund ASSETS Cash $ 145,769 Total assets $ 145,769 LIABILITIES Liabilities: Amounts held for others $ 145,769 Totalliabilities $ 145,769 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 ;' � _ Stewardship, Compliance and Accountability ---�- A Budgetary Information ' ` II - 31 B Reconciliation of Budgetary Basis Statements ' II - 32 C Excess of Expenditures Over Appropriations �.• II - 33 D Deficit Fund Equity -•�r�-- II - 33 r' Detailed Notes onlAll Funds � � ��-- . , �` ' ,' �� A Deposits and Investments ' ;� II - 34 B Properly Tax '' ;', ;i 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 L� `. II - 39 J Fund Balances c�} II - 43 � � ,r Other Information I A Risk Management u, ,; II - 44 B Tax Increment Fnancing Districts � �`':"-`�`' r II - 45 C Contingent Liabilities � � ' IT -46 D Retirement II - 46 E Landfill Closure and Postclosure Care Costs II - 48 F Restatement of Beginning Fund Equity II - 48 G Subsequent Events _ , • II -48 CITY OF BANGOR, MAINE Notes to Basic Financial Statements 7une 30, 2005 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 councii/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 inctude 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. Properly 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 thereafter to pay liabilities of the current period. For this purpose, the govemment 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 properly 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. F�cpenditure-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 governmental 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 Communiry 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 Financial Statements, 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 waiver 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: Fduciary 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 proprietary 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 government-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 fhese 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. City 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 represeritative 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 govemmental or business-type activities columns in the government-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 e�end 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 government 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 Operationaf '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 only if the liability is expected to be paid shortly after year end. 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, wheCher 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 specific 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 financial 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/expenditure� during the reporting period. Actual results could differ from those estimates. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITIf A. Budgetaty 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 BANGOR, 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 governmental funds. Encumbrances (i.e., purchase orders, contracts, and other commitments) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments have not be honored in the current year. For budgetary purposes, encumbrances are treated as expenditures within both governmental and proprietary fund types. On or before the second Monday in April, the City Manager submits to the City Council a proposed operating budget for the ensuing fiscal year. The Council holds public meetings and a final budget must be prepared and adopted no later than June 30th. Should the Council fail to adopt an operating budget on or before June 30th, by Charter, the budget proposed by the City Manager becomes effective. The budget is adopted at the department level through the passage of appropriation resolves. The City Manager may make transfers of appropriations within a department. Transfers between departments or additional appropriations require the approval of the City Council. The City Council made several supplementary budgetary appropriations throughout the year, none were material. 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: Deficiency of revenues over expenditures and other financing sources and uses(Budget) $355,924 Activity in designated fund balance (1,433,524) 2005 encumbrances 937,062 2004 encumbrances lapsed (8,231) 2004 encumbrances paid (�111.687) Excess of revenues and other financing sources over - expenditures and other uses(GAAP) � f1.260.4561 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 ACCOUNTABILITI(, CONTINUED Excess(deficiency)of revenues over expenditures and encumbrances: Sewer $ (4,271,272) Airport (143,650) Park Woods (17,429) Parking (2,241,020) Bass Park (264,350) Municipal Golf Course (20,837) Economic Development 45,853 �6.912,705) Nonoperating revenues classification (1,876,102) Investments at market value (155,731) Capital outlay 246,947 Capital projects (161,336) Cash basis to accrual basis adjustments (49,200) Contributed capital depreciation (4,783,547) Principal payments 7,143,638 2004 encumbrances 181,031 2003 encumbrances (65,394) Nonoperating expenses classification 1,932.329 Operating loss $ 4.500.070) C. Excess of Expenditures Over Appropriations The following General Fund departments were over-expended by the indicated dollar amounts; Council $1,778, Executive $11,087, City Clerk $ 18,529, Assessing $3,698, Insurance $5,210, Fire $129,499, Health and welfare $469,570, Parks and recreation $65,335, Public buildings and services $135,481. These over-expenditures were funded by receipt of revenues in excess of appropriation and under- expenditures within other General Fund departments. The Airport and Economic Development Funds were over-expended on a departmental basis by $701,180 and $82,360, respectively. These over-expenditures were funded by receipt of revenues in excess of appropriations. The Sewer and Parking Funds were over-expended on a departmental basis by $2,112,648 and $1,740,133, respectively primarily due to the timing of a payment associated with the retirement of previously issued general obligation bonds. The Park Woods and Bass Park Funds were over-expended on a departmental basis by $23,986 and $98,998 respectively, but were reasonable based upon the expected deficiencies within each fund. D. Deficit Fund Equity The Bass Park Enterprise Fund has a deficit fund equity of$1,565,629. 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$177,748 is temporary and will reverse itself in the upcoming year. II-33 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED N�TES ON ALL FUNDS A. Deposits and Investments The Ciry maintains a cash pool that is available for use by all funds. In addition, cash and investments are separately held by several of the funds. Custodial Credit Risk - Deposits Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may not be returned. The City does not have a policy with respect to custodial credit risk for deposit accounts. The City does maintain insurance coverage to protect up to $2,000,000 of deposits in addition to the $100,000 provided by the Federal Deposit Insurance Corporation (FDIC). As of June 30, 2005, $655,207 of the City's bank balances were exposed to custodial credit risk. At June 30, 2005, the City had the following investments and maturies: Maturity(years) Investment types Fair Value Not Applicable <1 1-5 6-10 Mutual Funds $ 17,524,824 $ 17,524,824 $ - $ - $ - US Treasuries 23,329,952 - 7,640,180 14,739,256 980,516 Common stock 727,641 727,641 - - - Gertificate of Deposit 50,000 50,000 - 50,000 - American Depository Receipts 30,547 30.547 - - - Totals 41.662.964 � 1�,333.012 7.640.180 � 14.789.256 $ 980.516 Interest Rate Risk The City's Investment Policy requires that, to the extent possible, the City will attempt to match investments with anticipated cash requirements. Unless matched to a specific cash flow, the City is not allowed to directly invest in securities maturing more than three years from the date of purchase. Credit Risk Maine statutes authorize the City to invest in obligations of the U.S. Treasury and U.S agencies, repurchase agreements and certain corporate stocks and bonds. As of)une 30, 2005, the City's investment in equities were rated by Moody's as follows: Investment type Rating Fair Value US Treasuries Aaa $ 20,599,338 Custodial Credit Risk- Investments For investments, custodial credit risk is the risk that, in the event of failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of the outside party. As of June 3.0, 2005, the City had no investments that were subject to custodial risk. The City's investment policy states that all security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a "delivery vs. payment"basis. Securities will be held by a third party custodian, or Trust Department, designated by the Treasurer and evidenced by safekeeping receipts. II-34 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED Concentration of Credit Risk The City's Investment Policy states that the City will diversify its investments by security type and institution. No more than 40% of the City's total investment portfolio will be invested in any combination of commercial paper and time certificates of deposit. B. ProperLy Tax Property taxes for the current year were levied July 8, 2004, 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, 2004 and March 15, 2005. Interest was charged at 6.50% 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 ]une 30, 2005 was as follows: Balance Balance June 30, June 30, 2004 Increases Decreases 2005 Governmental activities: Capital assets, not being depreciated: Land $ 5,040,548 - - 5,040,548 Construction in progress 13,952.891 6,959,446 7.139.515 13,772,822 , Total capital assets, not being depreciated 18,993,439 6,959,446 7,139,515 18,813,370 Capital assets, being depreciated: - Land improvements 1,873,39.5 - - 1,873,395 Buildings and improvements 46,828,230 1,237,734 - 48,065,964 Machinery and equipment 6,338,481 1,405,813 - 7,744,294 Vehicles 9,513,024 1,302,490 746,710 10,068,804 Infrastructure 11 517 457 3 595 627 - 15 113 084 Total capital assets being depreciated 76,070,587 7,541,664 746,710 82,865,541 Less accumulated depreciation for: Land improvements (1,170,236) (62,377) - (1,232,613) Buildings and improvements (15,371,009) (924,706) - (16,295,715) Machinery and equipment (3,315,289) (435,456) - (3,750,745) Vehicles (5,289,977) (638,582) (648,168) (5,280,391) Infrastructure (7 538,408) (338,507) - (7 876,915) Total accumulated depreciation (32,684,919) (2,399,628) (648,168) (34,436,379) Total capital assets bein4 depreciated,net 43,385.668 5,142,036 98,542 48.429,162 assets,net �62.379,107 12,101.482 7.238.057 67,242.53 II- 35 - , CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED Balance Balance June 30, June 30, 2004 Increases Decreases 2005 Business-type activities: Capital assets, not being depreciated: Land (Restated) $ 2,594,307 - 18,471 2,575,836 Construction in �roQress 6 270,512 7,770 340 5,956 826 8 084,026 Total canital assets, not bein4 depreciated 8 864,819 7 770 340 5 975 297 10,659,862 Business-type activities: Capital assets,being depreciated: Land improvements �... 2,103,086 - - 2,103,086 Buildings and improvements � 38,846,605 52,646 - 38,899,251 Machinery and equipment 5,414,481 107,295 - 5,521,776 Infrastructure 44,887,061 5,357,983 - 50,245,044 Airport operational assets(Restated) 209,292,043 6,474,227 22,561 215,743,709 Parkina structures 9 968 268 - - 9,968 268 Total capital assets being depreciated 310,511,544 11,992,151 22,561 322,481,134 Less accumulated depreciation for: Land improvements (786,441) (86,415) - (872,856) Buildings and improvements (21,161,571) (1,225,537) - (22,387,108) Machinery and equipment (2,938,736) (266,783) - (3,205,519) Infrastructure (7,361,472) (475,661) - (7,837,133) Aircraft operational assets (95,341,708) (6,300,679) - (101,642,387) Parkin4 structures 5 139 566 - ( , ) (478 381) (5 617,947� Total accumulated depreciation (132,729,494) (8,833,456) - (141,562,950) Total capital assets beina depreciated, net 177 782,050 3,158 695 22,561 180 918,184 usiness-tvne activiti a�i al a� ts.n �186.646.869 10.929.035 5.997.858 191.578 046 Depreciation expense was charged to functions/programs of the primary government as follows: Govemmental activities: General government $ 646,861 Public safety 292 352 Health, welfare and recreation 178,640 Public building and services 448,932 Ed'ucation 832 843 deureciation exoense—aovermm �tal activi �p �2 399 628 Business-type activities: Sewer Utility Fund $1,618,374 Airport Fund 6 300 679 Park Woods � 89,123 Parking Fund 478 381 Bass Park Fund 137,496 Municipal Golf Course 98,508 Economic Develooment Fund 110 895 deoreciation exoense—business activi i _ �8.833.45 II-36 CITIf OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED Construction commitments The government has active construction projects as of )une 30, 2005. The projects include reconstruction of runways, construction of additional infrastructure on the waterfront, continuation of the combined sewer overflow program, and the engineering associated with a new police station. D. Interfund Transactions Individual fund interfund receivable and payable transactions are described in the Summary of Significant Accounting Policies Note D. 2. As of June 30, 2005 the balances were as follows: Receivable Payable General Fund $ 3,976,594 $ - Community Development Block Grant 413,184 - Other HUD Funds 378,582 - Capital Fund - 2,254,438 Grant Fund _ 288�3�8 Other Special Revenue Funds _ 2��1gg Park Woods Fund - 80,000 Bass Park Fund - 1,651,355 Economic Development - 217.000 $_4J68.360 �4J68. 60 Individual fund transfers to and from other funds for the fiscal year ended ]une 30, 2005 are co'mprised 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 ' $2,834,443 $ 47,892 Special Revenue Funds 227;580 1,269 Capital Projects Fund 3,566 2,244,071 Proprietary Funds 116,141 953,947 Permanent Funds b5.461 12 $�.247.iq1 '�_�4719 II-37 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED E. Due From Other Governments Due from other governments is comprised of the following amounts at June 30, 2005: Federal State of Government Maine Other Total General Fund $ 169,452 $ 1,185,814 $ 317,768 $ 1,673,034 Special Revenue Funds 399,873 - - 399,873 Capital Projeds Fund 2,164,645 1,171,591 - 3,336,236 Proprietary Funds 1,256,643 25,590 - 1,282,233 Of the General Fund's $1,185,814 due from State of Maine, $376,000 represents school grant and State agency billings, $422,918 is due from the Department of Transportation and $317,753 represents general assistance claims. Amounts due from other communities for tuition reimbursement to Bangor accounts for $165,000 of the Due from Other in the General Fund. 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, 2005 are: Fiscal year ending Economic June 30, Air ort Development 2006 $ 2,308,531 $ 286,316 2007 2,111,139 249,140 2008 2,007,728 213,772 2009 1,135,253 219,289 2010 811,689 224,591 Subsequent to 201U 5,884,840 , 2,011,871 14.059.180 $ 3.204.979 Minimum future rentals do not include contingent rentals, which may be received as stipulated in the lease contracts. The Airport received $1,489,561 in contingent rentals in fiscal year 2005. 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 $ 5,088,827 $ 119,298 Due from bond trustee - 1,453,791 Deposits - 15 000 Bond issuance costs (net of amortization) - 124,520 Total $ 5,088.827 $ 1,712.609 H. Deferred Revenue General Fund deferred revenue consists of $1,808,747 in deferred taxes and $60,478 of advance deposits. Community Development Block Grant and Other Governmental Funds deferred revenue of $3,542,152 and $988,371, respectively, represents future revenue equal to loans made pursuant to the Community Development, Urban Development Action Gcants 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 $67,064 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 addi'tion, 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 is $135,742,900. The following is a summary of general obligation bond and note transactions of the City for the fiscal year ended June 30, 2005: Bonds and notes payable at)une 30, 2004 $ 108,873,869 Add: principal additions 8,615,000 Less: principal repayments 11,295,562 Bonds and notes payable at June 30, 2005 106.193.307 II-39 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED Bonds and notes payable at June 30, 2005 are comprised of the following: Fiscal year Interest Govemmental activities Business-type Total of maturitv rate City School activities June 30.2005 Long-term debt: Public improvements-1988 2008 7.37%-8.60% $ - $ - $ 300,000$ 300,000 Treatment Plant 2011 7.00%-7.10% - - 7,600,000 7,600,000 Combined sewer overflow 2014 2.46% - - 838,800 838,800 Combined sewer overflow 2014 2.45% - - 893,700 893,700 Public improvements-1996 2016 5.05%-5.85% 400,000 - - 400,000 Combined sewer overflow 2017 3.52% - - 1,946,720 1,946,720 Tax increment financing note* 2016 6.00%-6.90% 735,000 - - 735,000 Public improvements—1996 2017 5.35%-6.50% 1,045,000 - - 1,045,000 Combined sewer overflow 2018 3.03% - - 1,711,745 1,711,745 Public improvements—1997 2018 4.875%-5.3% 2,472,570 2,625,000 1,262,430 6,360,000 Tax increment financing note* 2018 6.19% 231,000 - - 231,000 Pubfic improvement—1999 2019 4.20% 1,191,400 - 1,058,600 2,250,000 Maine Business Enter Park 2018 5.00% - - 195,865 195,865 Public improvements—2000 2020 5.25%-5.90% 1,190,269 - 1,289,731 2,480,000 Public improvements—2001 2021 4.25%-5.00% 1,110,000 195,000 3,500,000 4,805,000 State Revolving Renovation—School 2011 0.00% - 341,160 - 341,160 Public improvements note* 2012 6.25% 640,806 - - 640,806 Public improvements—2002 2022 3.50%-4.75% 4,006,000 3,825,000 1,564,000 9,395,000 Pension obligation bonds 2026 3.06%-6.45% 26,272,067 1,667,114 5,590,819 33,530,000 Refunding bonds 2024 3.06%-3.47% 635,078 2,760,081 5,094,841 8,490,000 Combined sewer overflow 2023 1.94% - - 2,734,129 2,734,129 State Revolving Renovation—School 2008 0.00% - 37,412 - 37,412 Public improvements note* 2012 2.50%-4.00% - - 233,206 233,206 Tax increment financing note* 2015 2.50%-4.00% 157,872 - - 157,872 Briggs Building note 2023 6.50% - - 1,210,892 1,210,892 Refunding/public improvements-2004 2023 2.50%-4.80% 3,755,750 1,475,650 3,783,600 9,015,000 Combined sewer overFlow 2024 1.41% - - 2,650,000 2,650,000 Public improvements-2005 2024 3.50%-4.30% 2,650,000 - 1,000,000 3,650,000 Airport building sprinklers 2024 3.25%-5.00% - - 2,315,000 2,315,000 Total bonds and notes payable 46.492.812 $12.926.417 $46.774.078 �1o6.193.307 *Five series of general obligation notes aggregating$1,997,884 are held by the Cit�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 management's intendon,should a put occur,to fund it by passing the note along to its Sewer Fund,where it will be converted to a three to five year fixed note with level debt service,albeit without a put option. Annual debt service requirements to� ma"furity for general obligation bonds and notes payable are as follows: Fiscal year ending Governmental Activities Business-Type Activities June 30. Principal Interest Princi al Interest 2006 $ 2,748,865 $ 3,098,249 $ 3,842,849 $ 1,748,494 2007 2,839,642 3,001,642 3,872,685 1,638,444 2008 2,938,587 2,892,790 3,900,310 1,508,275 2009 3,020,680 2,775,105 3,823,074 1,371,316 2010 2,951,581 2,648,854 3,815,553 1,234,769 2011-2015 14,178,890 11,248,628 13,577,781 4,403,351 2016-2020 13,561,358 7,562,657 7,989,350 2,477,306 2021-2025 14,019,528 3,662,780 5,312,572 913,122 2026-2027 3.160,098 203,828 639,904 41,272 Total 59,419,229 $ 37.094,533$ 46.774.078 $ 15,336.349 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, 2005, the statutory limit for the City was $279,202,500. The City's outstanding long-term debt of$106,193,307 at June 30, 2005 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, 2005, $1,603,900 and $3,661,1600 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 occurred in August 2004. The refunding was undertaken to reduce total future debt service payments by $145,013 over the next 7 years. The final maturity date of the original issue was not extended. 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, 2005, $2,000,000 remains authorized and unissued. The City expects to begin construction in the fall of 2005 and will issue the remaining bonds on as needed basis throughout the estimated eighteen month construction schedule. 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. As of June 30, 2005, $2,250,000 remains authorized and unissued. The City expects to issue the debt within the next fiscal year. Upon completion of the building, it will be leased to, used by or conveyed to the University of Maine System or an affiliate thereof.. II-41 CITI(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 City is contingently responsible for a proportionate share of the following overlapping debt as of)une 30, 2005: Percentage Debt Applicable City's Share Unit Outstanding to the City of Debt General obligation bonds $106,193,307 100.00% $106,193,307 Penobscot County 510,000 23.47% 119,697 106.703,307 $106,313.004 This results in a ratio of City and overlapping debt to April 1, 2004 assessed valuation of 5.69%. Changes in Long-term Liabilities Long-term liability activity for the year ended June 30, 2005, was as follows: Balance Balance Due within June 30. 2004 Additions Reductions ]une 30, 2005 one year Governmental activities: General obligation debt $60,879,479 2,650,000 4,110,250 59,419,229 2,748,865 Obligations under capital leases (Restated Note F) 3,491 - 3,491 - - Accrued compensated absences* 1,814,339 1,136,835 1,047,255 1,903,919 1,068,199 Lona-term obliaation for self insurance 2,330,629 314,313 651,486 1,993,456 607 890 Governmental activities lona-term liabilitiee �65.027.938 4.101.148 5.812.482 63.316.604 4,424.954 Business type activities: General obligation debt 47,994,39U 5;965,000 7,185,310 46,774,080 3,842,849 Accrued compensated absences 268,873 302,931 289,994 281,810 295,794 Long-term obligation for self insurance 285,899 43,232 43,232 285,899 129,036 Deferred amount on refunding (207,042) - (54,472) (152,570) (46,209) Other 489,049 4.199 - 493,248 - Business type activities lona-term liabilities � 48 831 169 6.315.362____7.464.064 47.682.467 4,221.47� *-The liquidation of compensated absences is fully covered within the General Fund II-42 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED 7. Fund Balances Permanent Funds As of June 30, 2005, the fund balances by purpose were as follows: Restricted Unrestricted Nonexpendable Permanent Trust Principal Funds � Cemetery $ 364,715 $ - Parks 14,538 96,746 City Missianary 16,511 51,734 ' Education 44,138 54,899 Aid for Aged Women 43,067 62,588 Other Purposes 30,882 104,341 Total nonmajor permanent funds 513.851 $ 370.308 Dedicated Revenue Funds - Special Revenue Funds As of June 30, 2005, t�he fund balances by purpose were as follows: , Dental Clinic $ 106,822 Preservation of Records 125 Adopt a Park 83,913 Park Woods Children 3,654 City Forest 134,940 BFD Imaging 6,721 Park Woods Complex 495,243 USS Maine Monument 12,856 Kenduskeag Stream Trail 4 Skate Park 205� �Tricentennial 561 Total dedicated revenue funds 845 0 4 II-43 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUPIDS, CONTINUED Designated Fund Balance Designated fund balance of the General Fund at )une 30, 2005 consists of amounts, which the City intends to use for the following purposes: Departmental balances carried forward $ 25,000 School department— regular 2,095,410 adult education 73,008 reading assessment 21,913 , special revenue 275,179 school lunch 63,427 trust and agency 221.183 Total balances carried 2,775,120 Accrued summer teacher payroll (2,446,124) Pooled equipment 592,027 Bus equipment 45,630 Fire equipment 28,673 Improvement 482,652 Self insurance 1,993,457 Cameron stadium 121,218 - Landfill closure 9,12� Cascade park maintenance 58,450 Demolition 1,291 � PEG capital suppoit $2,58$ Pickering Square development district 90,513 Parks & Rec Improvement (137,454) Amounts due from Bangor Nursing & Rehabilitation Center 217,811 Pension obligation bond savings 387,561 Arbitrage rebate 221,835 4,524.375 OTHER INFORMATION A. Risk Management The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions, injuries to employees, and natural disasters for which the City either carries commercial insurance or is self—insured. The City currently reports all of its risk management activities in the General and Proprietary Funds. Claims expenditure, liabilities and reserves are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. � II-44 l CTTY OF BANGOR, MAINE Notes to Financial Statements, Continued OTHER INFORMATION, CONTINUED The Ciry 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, 2005, 2004 and 2003. The City is self-insured for its workers' compensation liability. Reserves are actuarially determined each year to assure funding ` adequacy. In addition, the City purchases excess workers' compensation insurance to limit its financial - risk. At June 30, 2005, the amount of self-insurance liabilities was $2,279,355. This liability is the City's best estimate based on available information. Changes in the reported liabilities since July 1, 2003 resulted from the following: � Workers' All other self- � Compensation insured risks Total 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)uly 1, 2004 2,462,242 154,286 2,616,528 Incurred claims 355,797 - 355,797 Payments (650,232) (1,254) (651,486) Changes in estimates and other adjustments (96,205) 54,721 (41,484� Unpaid claims as of June 30, 2005 $ 2.071,602 $ 207,753 $ 2.279.355 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 properly tax revenues over staggered twenty year periods for the following purposes: B.I.A. Municipal Development District No 1 — Partially financed $27.5 million dollars of capital expenditures at manufacturing facilities leased by General Electric Company. Main Street Municipal Development District — Assisted Penobscot Development Limited Liability Company in financing the extraordinary costs of acquisition and environmental remediation of the former Gasworks site on Main Street, ultimately to provide land area necessary for the construction of a 54,000 square foot supermarket in a Community Development project area. Pickering Square 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 Potentia) Liability by the Federal Environmental Protection Agency (EPA) in connection with that agency's efforts to clean up a disposal site. The City is among approximately 500 potentially responsible parties. 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 City is a party to various other lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the City's counsel that resolution of these matters will not have a material adverse effect on the financial condition of the City. � 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 emplbyees 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. Fundin4 Policy — Plan members not covered by employment contracts are required to contribute 6.5% of their annual covered salary and the City is required to contribute either 8% or 10% depending upon the employee's classification. For fiscal year 2005 covered payroll was $7,993,267 and City � contributions were $685,775. For those plan members that have employment contracts, the City contributes at various rates from 8% - 15% of annual earnings. The covered payroll and City contributions for those employees with employment contracts approximated $514,960 and $56,843 respectively, in fiscal year 2005. 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 CITIf OF BANGOR, MAINE Notes to Financial 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. Funding 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, 2005, 2004, and 2003 were $692,119, $667,705, and $663,217 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 legislature. The Maine State Retirement System - provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The authority to establish and amend benefit provisions rests with the state legislature. The Maine State Retirement System issues a pub►icly available financial report that includes financial statements and required supplementary information for the Teacher's Group. That report may be obtained by writing to Maine State Retirement System, 46 State House Station, Augusta, Maine 04333-0046 or by calling 1-800-451-9800. � Funding Policy — Plan members are required to contribute 7.65% of their compensation to the retirement system. The same statute requires the State of Maine Department of Education, to contribute the employer contribution, which amounts to $3,698,033 (17.77%) for the fiscal year 2005. 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 17.77% 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 until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Social Security n 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 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 )une 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. Restatement of Beginning Fund Equity The beginning net assets for the Airport Fund and the Economic Development Fund were reduced and increased, respectively, by $314,558, to reflect a prior year sale of fixed assets. The beginning fund balance for the general fund was increased by $607,890 to properly classify amounts recorded for self-insurance claims. The beginning net assets for governmental activities was increased by $194,341 to reflect the extinguishment of capital leases in the prior year. G. SubsequentEvents On September 12, 2005, the City Council authorized the issuance of $6,568,831 in general obligation bonds for the purpose of funding; the construction of a police station, the City's annual fleet � replacement, continuation of the CSO program, replacement of Fire Station 6, construction of a new golf course maintenance building as well as several smaller projects. The City Charter requires maintaining the City's undesignated%unreserved fund balance at between 5% and 10% of the previous year's expenditures, net of debt service. As policy, the City has targeted 7.5% as a reasonable balance. At June 30, 2005, this balance exceeded the City policy of 7.5% by $657,292. 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 in the amount of $475,818 to fund further environmental assessment of the Penobscot river as well as legal costs. In October 2005, the City established a special revenue fund for the purposes of receipting and expending funds received due to the operation of a Racino in Bangor. Penn National Gaming began � operating a temporary facility in November 2005. The City began receiving payments in that same month. � II-48 GENERAL_FUND . The General Fund is used to account for resources traditionally associated with the government, which are not required legally or by sound financial management, to be accounted for in another fund. '�,`. ••ahyr- i1 � .L_:..i _�._ � �r� _.P` sv� ; ` t� I , I � �� :� C� .. �S} ,� � �] I ,� ' i). f t� �i � . � x :�] ,i �r � L ; J -L.J�yyl-�-➢,� � � y [ . , Schedule A-1 CITY OF BANGOR,MAINE Balance Sheet , General Fund June 30,2005 ASSETS , Cash $ - Investments 8,715,652 Receivables: Taxes . 2,039,149 Accounts (net of allowance of$268,611) 880,165 Interfund loans 3,976,594 Intergovernmental 1,673,034 Loans 1,210,892 Inventory,at cost 605,286 Prepaid items 42,948 Total assets $ 19,143,720 LIABILITIES AND FUND BALANCE Liabilities Accounts payable $ 770,351 Accrued wages and benefits payable 3,400,475 Unearned revenue 1,869,225 Total liabilities 6,040,051 Fund balance Reserved for: . Encumbrances 951,462 Prepaid items 42,948 Advances to other funds 1,432,689 Unreserved: , Designated(Note� 4,524,375 Undesignated 6,152,195 Total fund balance 13,103,669 Total liabilities and fund balance $ 19,143,720 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 30,2005 Balances Variance Carried 7/1/2004 Budget Actual Surplus Carried Revenues Taxes Real and personal property $ - $ 40,220,305 $ 40,302,810 $ 82,505 $ - Change in deferred property tax - - (62,324) (62,324) - Tax increment financing district - (1,172,407) (1,172,407) - - Payment in lieu of taxes - 186,500 186,500 - - Excise - 4,128,500 4,358,409 229,909 - Interest on delinquent taxes - 230,000 159,143 (70,857) - Total ta�ces - 43,592,898 43,772,131 179,233 - _ Intergovemmental State revenue sharing - 3,640,000 3,717,717 77,717 - School subsidy - 11,550,112 11,550,112 - - Other- municipal - 1,972,884 2,572,987 600,103 - school - 3,329,531 3,719,897 - 390,366 Total intergovernmental - 20,492,527 21,560,713 677,820 390,366 Otherrevenue Licenses and permits - 409,450 655,745 246,295 - Charges for service- municipal - 6,313,378 6,886,047 572,669 - school - 4,618,982 4,549,286 - (69,696) Fines,forfeits and penalties - 21,300 37,288 15,988 - Revenue from use of money and property- municipal - 693,251 594,813 (98,438) - school - _ _ _ _ Total other - 12,056,361 12,723,179 736,514 (69,696) Total revenues - 76,141,786 78,056,023 1,593,567 320,670 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, 2005 Balances Variance Carried 7/1/2004 Budget Actual Surplus Carried Expenditures General government Council - 43,359 45,137 (1,778) - Executive - 665,280 676,367 (11,087) - Human resources 25,000 104,400 88,275 16,125 25,000 City clerk - 383,942 402,471 (18,529) - Assessing - 338,549 342,247 (3,698) - Legal - 237,655 236,804 851 - Finance - 1,210,433 1,208,373 2,060 - Insurance - 124,000 129,210 (5,210) - Planning,econ dev,code enforcement 12,000 927,397 918,781 20,616 - Total general government 37,000 4,035,015 4,047,665 (650) 25,000 Public safety Police - 6,074,946 6,044,527 30,419 - Fire - 6,296,761 6,426,260 (129,499) - Total public safety - 12,371,707 12,470,787 (99,080) - Health,welfare and recreation Health and welfare - 2,164,761 2,634,331 (469,570) - Parks and recreation - 1,165,912 1,231,247 (65,335) - Total health,welfare and recreation - 3,330,673 3,865,578 (534;905) - Public buildings and services - 8,165,250 8,300,731 (135,481) - iI- 51 Schedule A-2 (con't) CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Changes in Undesignated Fund Balance-Budget and ActuaT-Budgetary Basis General Fund For the Fiscal Year Ended June 30,2005 Balances Variance Carried � 7/1/2004 Budget Actua! Surplus Carried Expenditwes,continued Other agencies � County tax - 1,931,434 1,931,434 - - „ Private school services - ]08,902 108,018 884 - Downtown Development District - 40,961 40,961 - - Public library - 1,353,207 1,353,207 - - Other agencies - 311,090 308,925 2,165 - Total other agencies - 3,745,594 3,742,545 3,049 - Education , Regular 2,024,147 34,746,700 34,336,403 - 2,434,444 Adult education 64,819 609,528 563,725 - 110;622 Schoollunch 55,947 1,143,072 1,108,729 - 90,290 Reading assessment 19,655 10,000 2,964 - 26,691 Special revenue 354,741 2,325,067 2,575,228 - 104,580 Trust and agency 92,774 1,911,846 1,741,798 - 262,822 Total education 2,612,083 40,746,213 40,328,847 - 3,029,449 Other appropriations Pensions and other fringe benefits - 1,732,465 1,692,014 40,451 - � Debt service - 1,708,669 1,606,202 ]02,467 - Tax increment financing payments - 355,309 350,898 4,411 - Contingency . _ _ _ _ Total other appropriations - 3,796,443 3,649,114 147,329 - Totai expenditures 2,649,083 76,190,895 76,405,267 (619,738) 3,054,449 Excess(deficiency)of revenues over expenditures (2,649,083) (49,109) 1,650,756 973,829 3,375,119 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 30,2005 Balances Variance Carried , 7/1/2004 Budget Actual Surplus Carried / Other financing sources(uses) Appropriaton from designated fund balance - 1,221,834 1,097,652 475,818 (600,000) Appropriation from undesignated fund balance - 1,239,773 - (1,239,773) - � Appropriation to designated fund balance - (50,000) (50,000) - - Sale of assets - 11,000 38,488 27,488 - Transfers to other funds - (1,680,708) (1,680,708) - - Transfers from other funds - 48,000 40,526 (7,474) - Operating transfers - (740,790) (740,790) - - Total other financing sources(uses) - 49,109 (1,294,832) (743,941) (600,000) Net change in fund balance $ (2,649,083) $ - $ 355,924 229,888 $ 2,775,119 Undesignated fund balance,beginning of year 5,922,307 Undesignated fund balance,end of year $ 6,152,195 II-53 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 of the downtown commercial core of the 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 _gcants that are legally restricted to expenditures allowable by the grantor agency:" �',I'��' Dedicated Revenue Funds - Accounts for amounts'��aised or donated to benefit various governmental programs such as; the Dental Clmic, 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 expenditures relating to the operation of the area transportation system �F 'i� , ;� � u II Permanent�Fund Permanent funds are used to report resources that are legally restricted to the extent that only eamings, not principal, may be u�sed �for�purposes that support the reporting government's programs. � -=- - .T � Schedule B-1 CITY OF BANGOR,MAINE Combining Balance Sheet Nonmajor Governmental Funds June 30,2005 Nonmajor Special Nonmajor TotalOther Revenue Permanent Governmental Funds Funds Funds ASSETS � Cash $ - $ - $ - Investments 1,762,865 988,661 2,751,526 Receivables: � Accounts � 160 - 160 Loans(net of allowance of$130,131) 988,371 27,257 1,015,628 Interfund loans 378,582 - 378,582 Intergovernmental 309,955 - 309,955 Total assets $ 3,439,933 $ 1,015,918 $ 4,455,851 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 7,021 $ - $ 7,021 Unearned revenue 988,371 - 988,371 Interfund loans 565,567 - 565,567 Total liabilities 1,560,959 - 1,560,959 Fund balances: ' Reserved for: Encumbrance 16,998 - 16,998 Loans - 131,759 131,759 Principal - 513,851 513,851 Unreserved,undesignated 1,861,976 370,308 2,232,284 Total fund balance 1,878,974 1,015,918 2,894,892 Total liabilities and fund balances $ 3,439,933 $ 1,015,918 $ 4,455,851 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 30,2005 Nonmajor Special Nonmajor TotalOther Revenue Permanent Governmental � Funds � Funds Funds Revenues: Taxes $ 1,172,407 $ - $ 1,172,407 Intergovernmental 3,504,475 - 3,504,475 Charges for services 498,069 - 498,069 Program income 3,767 - 3,767 Revenue from use of money and property 153,947 - 153,947 Other revenue 59,379 3,450 62,829 Interest revenue - 17,786 17,786 Total revenues 5,392,044 21,236 5,413,280 Expenditures: Current: Personnel 452,764 - 452,764 Equipment 4,712 - 4,712 Payments to beneficiaries 1,216,694 - � 1,216,694 Other 2,175,388 - 2,175,388 Bus operations 1,391,962 - 1,391,962 ' Program expenditures - 4,339 4,339 Total expenditures 5,241,520 4,339 5,245,859 Excess(deficiency)of revenues over(under) expenditures 150,524 16,897 167,421 , Other financing source`s(uses): Transfer to other funds (227,580) (65,461) (293,041) Transfer from other funds 1,269 12 1,281 Total other financing sources(uses) (226,311) (65,449) (291,760) Net change in fund balances (75,787) (48,552) (124,339) Fund balances,beginning of year 1,954,761 1,064,470 3,019,231 Fund balances,end of year $ 1,878,974 $ 1,015,918 S 2,894,892 II-55 Schedule B-3 CITY OF BANGOR,MAINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30,2005 Dedicated Other Grant Revenue Totals HUD Funds Fund Funds Other 2005 " ASSETS Cash $ - $ - $ - $ - f $ - , Investrnents - - 845,044 917,821 1,762,865 Receivables: Accounts - 160 - - 160 Loans(net of allowance of$130,131) 988,371 - - - 988,371 _ Interfond loans 378,582 - - - 378,582 Intergovemmental - 309,955 - - 309,955 Total assets $ 1,366,953 $ 310,115 $ 845,044 $ 917,821 S 3,439,933 LIABILITIES AND FUND BALANCES Liabiliries Accounts payable $ - $ 5,981 $ - $ 1,040 $ 7,021 Uneamed revenue 988,371 - - - 988,371 Interfund loans payable - 288,378 - , 277,189 565,567 Totalliabilities 988,371 294,359 - 278,229 1,560,959 Fund balances: Reserved for: Encumbrances - 16,998 / - - 16,998 Unreserved: Undesignated 378,582 (1,242) 845;044 639,592 1,861,976 Totalfundbalances 378,582 15,756 845,044 639,592 1,878,974 Total liabilities and fund balances $ 1,366,953 $ 310,115 $ 845,044 $ 917,821 $ 3,439,933 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 30,2005 IDedicated Other Grant Revenue Totals HUD Funds Fund Funds Other 2005 Revenues Taxes $ - $ - $ - $ 1,172,407 $ 1,172,407 Intergovernmental - 3,504,475 - - 3,504,475 Charges for services - 498,069 - - 498,069 Program income 3,767 - - - 3,767 Revenue from use of money and property 17,515 - 10,121 126,311 153,947 Contributions - - 37,946 21,433 59,379 Other - - - _ _ Total revenues 21,282 4,002,544 48,067 1,320,151 5,392,044 Expenditures Personnel - 452,764 - - 452,'764 Equipment - 4,712 - - 4,712 Payments to beneficiaries - - 4,263 1,212,431 1,216,694 Other - 2,159,090 - 16,298 2,175,388 _ Bus operarions - 1,391,962 - - 1,391,962 Total expenditures - 4,008,528 4,263 1,228,729 5,241,520 Excess(deficiency)of revenues over(under)expenditures 21,282 (5,984) 43,804 91,422 150,524 Other financing sources(uses) Transfers to other funds - - (197,712) (29,868) (227,580) Transfers from other funds - 1,145 - 124 1,269 � Total other financing souroes(uses) - 1,145 (197,712) (29,744) (226,311) Net change in fund balances 21,282 (4,839) (153,908) 61,678 (75,787) Fund balances,beginning of year 357,300 20,595 998;952 377,9i4 1,954,761 Fund balances,end of year $ 378,582 $ 15,756 $ 845,044 $ 639,592 $ 1,878,974 II- 57 Schedule B-5 CITY OF BANGOR,MAINE Combining Balance Sheet Nonmajor Permanent Funds June 30, 2005 Revolving Other Loan Funds Funds Totals ASSETS Investments $ 884,159 $ 104,502 $ 988,661 Loans receivable - 27,257 27,257 Total assets $ 884,159 $ 131,759 $ 1,015,918 LIABILITIES AND FUND BALANCES Liabilities: Totalliabilities $ - $ - $ - Fund balances: - Loans - 131,759 131,759 Principal 513,851 - 513,851 Unexpended income 370,308 - 370,308 Total fund balances 884,159 131,759 1,015,918 Total liabilities and and fund balances $ 884,159 $ 131,759 $ 1,015,918 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 30,2005 Revolving Other Loan � Funds Funds Totals Revenues: Investment income $ 11,283 $ 6,503 $ 17,786 Lot sales 3,450 - 3,450 _ Total revenues 14,733 6,503 21,236 Expenditures: Current: Payments to beneficiaries 360 3,000 3,360 Other miscellaneous - 979 979 Total expenditures 360 3,979 4,339 _ Other financing sources(uses): Transfer to other funds (65,461) - (65,461) Transfer from other funds 12 - 12 Total financing sources(uses) (65,449) - (65,449) Net change in fund balances (51,076) 2,524 (48,552) - Fund balances,beginning of year 935,235 129,235 1,Q64,470 Fund balances,�end of year $ 884,159 $ 131,759 $ 1,015,918 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 serv_ices to the general public financed or recovered primarily through user charges. The government has decided that periodic determination of net income is appropriate for accountability purposes. , Sewer Utility Fund — This fund accounts for tiie 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. �� r Airport Fund —This fund accounts for the operation of Bangor International Airport. The principal sources of revenues are landing.�fee's- and.:the sale of aviation fuel. Other revenue sources include lease payments for fhe use of terminal space and non-aviation industrial buildings. �� , ��# Park Woods — This fund accounts for the rentalJ of 160 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 operatio��of the City-owned parking lots and the Pickering Square garage. Revenue sources mclude monthly lease payments for parking spaces, hourly/daily parking fees� and fnes and waiver fees for parking violations. Certain of these facilities are ope'rated un'der a private management contract. . f�� ,� 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 pu'rposes. 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-Badgetary Basis Sewer Utility Fund-Enterprise Fund For the Fiscal Year Ended June 30,2005 Budget Actual Variance Revenues Charges for services $ 6,327,900 $ 6,023,893 $ (304,007) Operating transfer - - - Interest and other revenue 703,141 64,522 (638,619) Total revenues 7,031,041 6,088,415 (942,626) Expenditures and encumbrances Salaries 925,568 911,025 14,543 Fringe benefits 216,774 222,487 (5,713) Supplies and materials 828,138 865,212 (37,074) Contractual services 599,133 567,260 31,873 Interfund charges 537,003 567,448 (30,445) Miscellaneous 20,150 10,907 9,243 Debt service 3,724,131 5,725,367 (2,001,236) Depreciation 1,301,912 1,401,247 (99,335) Outlay 94,230 - 88,734 5,496 Credits - - - Total expenditures and encumbrances 8,247,039 10,359,687 (2,112,648) Excess(deficiency)of revenues over expenditures and encumbrances $ (1,215,998) $ (4,271,272) $ (3,055,274) II - 60 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 30,2005 Budget Actual Variance Revenues Charges for services $ 8,953,850 $11,527,062 $ 2,573,212 Operating transfer - _ _ Interest and other revenue 1,108,274 951,151 (157,123) Total revenues 10,062,124 12,478,213 2,416,089 Expenditures and encumbrances Salaries 3,784,516 3,972,482 (187,966) Fringe benefits 789,089 849,100 (60,011) Supplies and materials 1,530,100 1,863,863 (333,763) Contractual services 1,758,362 2,160,648 (402,286) Interfund charges 541,770 512,191 29,579 Miscellaneous i44,525 173,126 (28,601) Debt service 681,283 681,282 1 Depreciation 1,858,565 1,897,787 (39,222) Outlay 840,473 511,384 329,089 Credits (8,000) - (8,000) Total expenditures and encumbrances 11,920,683 12,621,863 (701,180) Excess (deficiency) of revenues over expenditures and encumbrances $ (1,858,559) $ (143,650) $ 1,714,909 II-61 Schedule C-3 CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis Park Wooc7s-Enterprise Fund For the Fiscal Year Ended June 30,2005 Budget Actual Variance Revenues Charges for services $ 296,142 $ 310,389 $ 14,247 Operating transfer 24,801 24,801 - Interest and other revenue - 32 32 Total revenues 320,943 335,222 14,279 Expenditures and encumbrances Salaries 59,493 60,896 (1,403) Fringe benefits 10,765 10,267 498 Supplies and materials 111,661 128,155 (16,494) Contractual services 130,315 139,076 (8,761) Interfund charges 4,725 4,725 - Miscellaneous - - - • Debt service - - - Depreciation 7,722 7,722 - Outlay 3,984 1,810 2,174 Credits - - - Total expenditures and encumbrances 328,665 352,651 (23,986) Excess(deficiency)of revenues over expenditures and encumbrances $ (7,722) $ (17,429) $ (9,707) 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 30,2005 Budget Actual Variance Revenues Charges for services $ 969,300 $ 936,987 $ (32,313) Operating transfer 312,650 312,650 - Interest and other revenue 3,000 5,557 2,557 Total revenues 1,284,950 1,255,194 (�9,756) Expenditures and encumbrances Salaries 151,874 152,773 (899) Fringe benefits 33,840 32,205 1,635 Supplies and materials 6,425 4,122 2,303 Contractual services 306,686 293,24� 13,439 Interfund charges 86,900 134,712 (47,812) Miscellaneous _ pebt service 681,045 2,308,960 (1,627,915) Depreciation 471,131 471,131 - Outlay 18,180 99,064 (80,884) Credits Total expenditures and encumbrances 1,756,081 3,496,214 (1,740,133) Excess(deficiency) of revenues over expenditures and encumbrances $ (471,131) $ (2,241,020) $ (1,769,889) 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 30,2005 Budget Actual Variance Revenues Charges for services $ 1,278,450 $ 1,237,957 $ (40,493) Operating transfer 458,640 458,640 - Interest and other revenue - 773 773 Total revenues 1,737,090 1,697,370 (39,720) Expenditures and encumbrances Salaries 625,154 646,634 (21,480) Fringe benefits 98,208 120,954 (22,746) Supplies and materials 249,400 260,738 (11,338) Contractual services 401,680 440,409 (38,729) Interfund charges 123,400 140,956 (17,556) ' Miscellaneous 50,000 56,515 (6,515) Debt service 199,248 198,916 332 Depreciation 123,180 103,822 19,358 Outlay - 324 (324) Credits (10,000) (7,548) (2,452) Total expenditures and encumbrances 1,860,270 1,961,720 (101,450) Excess(deficiency) of revenues over expenditures and encumbrances $ (123,180) $ (264,350) $ (141,170) II-64 Schedule C-6 CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis Municipal Golf Course-Enterprise Fund For the Fiscal Year Ended June 30,2005 Budget Actual Variance Revenues Charges for services $ 672,000 $ 586,956 $ (85,044) Operating transfer - - - Interest and other revenue 12,000 15,272 3,272 Total revenues � 684,000 602,228 (81,772) Expenditures and encumbrances Salaries 237,232 228,452 8,780 Fringe benefits 34,933 40,067 (5,134) Supplies and materials 58,496 66,326 (7,830) Contractual services 69,000 43,484 25,516 � Interfund charges 184,924 61,194 123,730 Miscellaneous - - _ Debt service 6,415 6,415 - Depreciation 98,050 97,952 98 Outlay 93,000 79,175 13,825 Credits - _ _ Total expenditures and encumbrances 782,050 623,065 158,985 Excess(deficiency)of revenues over expenditures and encumbrances $ (98,050) $ (20,837) $ 77,213 l 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, 2005 Budget Actual Variance Revenues Charges for services $ . 268,540 $ 304,470 $ 35,930 Operating transfer - - - Interest and other revenue 39,473 143,461 103,988 Total revenues 308,013 447,931 139,918 Expenditures and encumbrances Salaries - - - Fringe benefits - - - Supplies and materials 44,578 28,293 16,285 Contractual services 44,296 62,097 (17,801) Interfund charges - 3,209 (3,209) Miscellaneous 27,729 83,347 (55,618) Debt service 180,410 105,133 75,277 Depreciation 11,706 91,002 (79,296) Outlay 11,000 28,998 (17,998) Credits - - - Total expenditures and encumbrances 319,719 402,079 (82,360) Excess (deficiency) of revenues over expenditures and encumbrances $ (11,706) $ 45,853 $ 57,559 II-66 FI DUCIARY FU N DS Fiduciary Funds are used to report assets held in a trustee or agency capacity for others. Agency Funds— Agency Funds are used to account for situations where the City's role is purely custodial, such as the receipt, temporary,investment, and remittance of fiduciary resources to individuals, private organizations, or other:governments. � ; . _ � � � � z N��.� �� ' y � �f.��,� •`��aG.'�'� "_.l [^, I I_� !1 � � I 1 V i � � I � � W j� �� ', �� 5_� � �� ir � :�.:i •�'_ �.r�,�--�,,.r, i� � � 5chedule D-1 CITY OF BANGOR,MAINE Schedule of Change in Assets and Liabilities Agency Fund For the Fiscal Year Ended June 30,2005 Balance Balance July 1,2004 Additions Deletions July 1,2005 ASSETS American Folk Festival funds $ 71,060 1,900,279 1,825,570 145,769 Total assets $ 71,060 1,900,279 1,825,570 145,769 LIABILITIES Funds held for American Folk Festival $ 71,060 1,900,279 1,825,570 145,769 Totalliabilities $ 71,060 1,900,279 1,825,570 145,769 II-67 CAPITAL ASSETS USED � IN THE OPERATION` OF GOVERNMENTAL FUNDS � r_ ��_ w ' .` l ` - ;� ��.-�_ � �.. : ; � .,�� , ; _.�.._:��'� -.�- �=�:.�. : _ � _ � ! 1 ' � •, 5 �1 �� 1J I ,� � w + � �. �' i� u. i '�� t�j � � 17' I, ,E�;i •� ��,�.C��.y_-- - �.. .. _. . .. _. � 1 1 Schedule E-1 CITY OF BANGOR,MAINE Capital Assets Used in the Operation of Governmental Funds Schednle of Changes by Function and Activity For the Fiscal Year Ended June 30,2005 Balance Balance Function and Activity 2004 Additions Deletions 2005 General government Animal control $ 6,607 - 1,469 5,138 BAT community connector 1,513,051 29,646 148,506 1,394,191 Central service 39,290 38,460 41,213 36,537 City clerk - 27,774 14,581 13,193 City hall 345,892 26,953 18,990 353,855 Community and economic development 3,720,830 - 3,290 3,717,540 Engineering 41,631 41,631 43,713 39,549 Information services 522,510 621,934� 557,646 586,798 Legal 10,890 - 2,420 8,470 Motorpool 3,452,884 2,250,146 2,303,110 3,399,920 Other-unclassified 852,363 - 78,467 773,896 Total general government 10,505,948 3,036,544 3,213,405 10,329,087 Public safety Fire 2,026,713 622,604 511,872 2,137,445 Police 2,518,782 929,468 559,882 2,888,368 Total public safety 4,545,495 1,552,072 1,071,754 5,025,813 Health,welfare and recreation Health and welfare - - - - Parks and recreation 3,378,952 269,507 255,648 3,392,811 Total health,welfare and recreation 3,378,952 269,507 255,648 3,392,811 Public building and services Public works 15,317,997 9,193,887 4,264,033 20,247,851 Total public buildings and services 15,317,997 9,193,887 4,264,033 20,247,851 Education 28,630,715 449,100 832,845 28,246,970 � Total governmental fund capital assets $ 62,379,107 14,501,110 9,637,685 67,242,532 II-68 OTHER INFORMATION j � I • _ f. � ` r�..., � ��.� � . �-..✓^t � .. ,"i �V ?�,, � ..��,�r�. �� L; - -,'�r= :- .- - _ ,� _ �� ` i ;. i � � t`, ', �� J � � � `�� I �] M tt I I� �i�] �; i� �i] � ,�, � �: -�,_i� .r,.��-a. � - . _ � ' t Schedule F-1 CITY OF BANGOR,MAINE Assessed Valuation,Commitment and Collections For the Fiscal Year Ended June 30,2005 VALUATION Land and buildings $ 1,574,650,800 Land and buildings-Homestead exemption 33,907,200 Personal property 259,687,300 Total valuation $ 1,868,245,300 COMMITMENT Real estate and personal property(excludes Homestead exemption) $ 1,834,338,100 Tax rate 0.02205 Total commitment 40,447,155 ADD Supplemental taxes committed 27,029 40,474,184 LESS Collections 2005 39,206,172 Abatements 160,117 2005 taxes receivable at June 30,2005 $ 1,107,895 II- 69 _J Schedule F-2 CITY OF BANGOR,MAINE Undesignated Fund Balance Sufficiency Calculation For the Fiscal Year Ended June 30,2005 It is the policy of the City to maintain an undesignated fund balance approximately 7.5%of operating expenditures. The following table sets forth the calculation as to the sufficiency of the June 30,2005 undesignated fund balance. General Fund expenditures/uses(Schedule A-2) General government $ 4,047,665 Public safety 12 470 787 Health, welfare and recreation 3,865,578 Public buildings and services 8 300 731 Other agencies 3�742�545 Education 40,328,847 Other appropriations 3 649 114 Other uses,gross* 2�421�498 , , Gross expenditures and uses 78,826,765 General Fund debt service ** 5,561,392 Net expenditures and uses $73,265,373 Indicated undesignated fund balance @ 7.5% $ 5 494 903 , , Actual undesignated fund balance(Schedule A-2) $ 6 152 195 , , Actual undesignated fund balance as a percentage of net expenditures and uses g 400�0 Over(under) funded status $ 657,292 * excludes amounts appropriated frdm undesignated fund balance **excludes refunding payments II- 70 This page left intentionally blank STP�TISTIe1�I� SEeTiOl�l Table 1 CITY OF BANGOR,MAINE Government-wide Expenses by Function Last Ten Fiscal Years Health Public Interest on Capital Fiscai 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 2005 $ 6,435,386 12,478,326 4,000,249 7,609,989 3,514,658 42,659,395 65,639 7,326,307 3,166,250 1,674;034 88,930,233 Only three years have been presented because 2003 was the yeaz GASB Statement No.34 was implemented. Government-wide expenses include the following funds;General Fund,Special Revenue Funds,Capital Projects Fund and Permanent Funds. , , � 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 2005 $ 13,444,768 25,986,614 4,117,072 45,113,317 4,487,931 519,225 (357,397) 93,311,530 Only three years have been presented because 2003 was the year GASB Statement No. 34 was impiemented. Govemment-wide revenues include the following funds; General Fund, Special Revenue Funds, Capital Projects Fund and Permanent Funds. III-2 Table 3 CITY OF BANGOR,MAINE General Fund Expenditures by Function—Budgetary Basis* Last Ten Fiscal Years Fiscal General Public Health& Parks& Eubiic Debt Other Year Government Safety Welfare Recreadon Services Educadon Service Other** Agencies'** Total 1996 3,340,732 8,990,888 1,683,177 888,139 7,049,049 28,258,718 1,403,761 45,595 2,046,064 53,706,123 1997 3,378,392 9,723,034 1,805,734 887,122 6,842,469 28,934,989 ],364,213 75,238 2,196,959 55,208,150 1998 3,454,345 ]0,362,360 1,757,148 923,430 7,648,048 30,190,919 1,335,405 389,805 2,231,591 58,293,051 1999 3,371,246 10,326,120 1,705,099 945,953 7,321,657 31,926,707 ],340,136 ]31,515 2,391,962 59,460,695 2000 3,481,542 9,527,935 1,652,971 971,887 7,073,693 33,181,363 ],214,661 1,545,415 2,500,460 61,149,927 � 2001 3,737,126 ]0,252,977 1,736,958 979,569 7,108,393 34,277,778 1,197,835 ],828,634 3,533,309 64,652,569 2002 3,818,335 ]0,802,401 1,822,104 ],053,472 7,359,810 37,860,069 866,860 28,670,847 2,953,707 95,207,605 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 2005 4,047,665 12,470,787 2,634,331 1,231,247 8,300,731 40,328,847 1,606,202 2,042,912 3,742,545 76,405,267 t 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 County 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 F5sca1 Real Personal Total Tax govern- & for &For- Money& Year Property Property Excise Revenues meotal Permits Services feitures Property Total 1996 27,340,204 3,545,267 2,754,819 33,640,290 13,803,107 324,639 6,940,083 26,569 1,066,083 55,800,771 1997 27,036,650 3,748,446 2,926,858 33,711,954 14,322,698 372,003 7,138,210 42,350 924,742 56,511,957 1998 27,750,306 4,224,568 3,095,072 35,069,946 16,233,583 433,449 7,529,144 28,193 546,229 59,840,544 1999 27,484,400 4,487,895 3,266,421 35,238;716 17,733,946 499,483 7,879,418 , 24,813 600,085 61,976,461 2000 28,498,443 4,945,754 3,592,979 37,037,176 18,936,166 393,354 8,147,181 19,178 933,427 65,466,482 2001 29,474,793 5,280,324 3,749,219 38,504,336 19,114,860 392,778 8,914,248 15,106 1,187,296 68,128,624 2002 30,767,352 5,796,498 3,935,924 40,499,774 19,580;491 298,665 9,755,012 28,009 980,442 7t,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 10,396,130 32,659 540,763 75,504,581 2005 33,684,663 5,729,059 4,358,409 43,772,131 21,560,713 655,745 ]1,435,333 37,288 594,813 78,056,023 • Amounts appear in Schedule A-2. III-4 Table 5 CITY OF BANGUR,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 of Revenues/Other iations to Operating General Fund fatlons from Transfers Total General Fund Sources Over Fiscal Fund Transfers Total Expenditures Fund In&Other Other Revenues Expenditures/ Year Balance Out&Other Other Uses &Ot6er Uses Balance Sources Sources &Other Sources Other Uses 1996 - 1,871,914 1,871,914 56,285,90! 689,909 76,249 766,158 56,363,761 77,gGp 1997 - 2,360,375 2,360,375 56,066,498 1,249,:123 377,448 ],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 4,303,240 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) 2005 50,000 2,421,498 2,471,498 78,876,765 1,097,652 79,014 1,176,666 79,232,689 355,924 * Amounts appear in Schedule A-2. III-5 Table 6 CITY OF BANGOR,MAINE Property Taz Levies and Collections Last Ten Fiscal Years %of Outstanding Ratfo of %of Delinquent Total Total Tax Current Year Current Year Fiscal Gross Tax Abate- Net Tax Current Net Levy Tax Tax Collection Delinquent Delinquencies Year Levy ments Levy Collections Collected Collections Collections to Net Levy Taxes to Net Levy 1996 31,084,237 341,860 30,742,377 29,297,048 95.30% 1,469,986 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% 1,543,779 32,349,404 ]0035% 1,429,914 4.44% 1999 32,611,689 145,123 32,466,566 31,084,751 95.74°/a 1,503,187 32,587,938 ]0037% 1,381,815 4.26% 2000 34,069,975 246,152 33,823,823 32,809,377 97.00% 719,683 33,529,060 99.13% 1,014,446 3.00% 2001 35,283,733 258,412 35,025,321 33,930,930 96:88% 1,565,244 35,496,174 ]01.34% 1,094,391 3.12% 2002 36,893,245 208,211 36,685,034 35,633,029 97.13% 1,655,407 37,288,436 101.64% 1,052,005 2.87% 2003 39,081,183 311,677 38,769,506 37,785,056 97.46% 1,506,817 39,291,873 101.35% 984,450 2.54% 2004 39,866,850 172,868 39,693,982 38,589,047 97.22% 1,154,693 39,743,740 ]00.13% 1,104,935 2.78% 2005 40,474,184 160,117 40,314,067 39,206,172 97.25% 1,310,311 40,516,483 100.50% 1,107,895 2.75% 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 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 1,219,950,500 188,488,2U0 1,408,438,700 1.53% 2000 1,267,153,100 208,423,500 1,475,576,600 4.77% 2001 1,314,964,400 222,823,400 1,537,787,800 4.22% 2002 1,346,728,900 241,682,200 1,588,411,100 3.29% 2003 1,412,798,100 278,430,40U 1,691,228,500 6.47°/a 2004 1,471,773,600 268,555,6D0 1,740,329,200 2.90% 2005 1,608,558,000 259,687,340 1,868,245,300 7.35% * It is City policy to assess at 100%of estimated mazket 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 Ta� Year Government Service Education County (Mill)Rate 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 2005 8.2 1.18 11.59 1.08 22.05 � , III- 8 i Table 9 CITY OF BANGOR,MAINE Principal Taxpayers June 30,2005 Assessed %of Total Cumulative Taxpayer Business Value Taa Base % BANMAK Associates Shopping mall $ 54,054,100 3.11% 3.11% General Electric* Steam turbine manufacturer 43,956,100 2.53% 5.44% Paradign Development LLC Utility 24,450,900 1.40% 6.84% Bangor Savings Bank Financial institution 16,867,900 0.97% 8.02% Eastern Maine Healthcare Medical institution 16,073,000 0.92% 8.94% QV Realty Trust Real estate interests 13,226,100 0.76% 9.70% May Department Stores Retailer 11,855,800 0.68% 10.38% Airport Mall Associates Shopping mall 11,659,800 0.67% 11.05% Cabrel Company Real estate interests 11,635,200 0.67% 11.72% Campanelli Investments Shopping center 9,026,100 0.52% 12.01% Totals $212,805,000 * Net of$53,170,400 of tax increment financing assets. III-9 Table 10 �. CITY OF BANGOR,MAINE Computation of Legal Debt Margin June 30,2005 Total State Valuation $ 1,861,350,000 Debt Limitation: 15% of State Valuation $ 279,202,500 Debt Applicable to Debt Limitarion: Bonded General Obligation Debt Legal Maximum As a Percent of Dollar � State Purpose Percentage Amount Amount Maximum Valuation Municipal 7.50% $ 139,601,250 $ 64,566,55'7 46.25% 3.47% School 10.00% 186,135,000 12,926,417 6.94% 0.69% Sewer 7.50% 139,601,250 28,700,333 20.56% 1.54°/a Total Bonded Debt Applicable to Debt Limit: $ 106,193,307 38.03% 5.71% Margin for Additional Borrowing: $ 173,009,193 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 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% 883.78 2000 31,311 i,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% 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 2005 31,595 1,868,245,300 65,988,998 3.53°/a 2,088.59 '` Source:Maine Department of Human Services(1991 through 1994),Maine Deparhnent of Human Services,Maine State Planning Office and City of Bangor(1995 through 2000)and U.S.Census Bureau(2001 through 2005). °* Net Bonded General Obligation Debt Consists of all non-self supporting general obligation debt,and � excludes all Sewer Utility debt of$28,700,334,Airport debt of$9,003,707,Golf Course debt of$93,5 i l and Economic Development debt of$2,406,757. III -11 Table 12 � CITY OF BANGOR,MAINE Ratio of Annual Debt Service Ezpenditures for General Obligation Debt to Total General Fund Ezpenditures Last Ten Fiscal Years Ratio of Debt Debt Service Expenditures Total Service To Fiscal General Fund General Fund Year Principal Interest Total Expenditures* Expenditures 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 5.39% 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% 2005 2,489,646 3,071,746 5,561,392 *** 76,405,267 7.28% * Budget basis,Schedule A-2 ** 2002 General Fund Expenditures have been reduce by the one time payment to the MSRS totaling$27,641,053 *** Debt service exludes$1,668,886 in refunding payments ) � III-12 Table 13 CITY OF BANGOR,MAINE Computation of Direct and Overlapping Debt June 30,2005 Percentage Amount Total Debt Applicable Applicable Outstanding to Bangor to Bangor Direct Debt City of Bangor General Obligation Bonds $ 106,193,307 100.00% $ 106,193,307 Overlapping Debt Penobscot County 510,000 23.47% 119,697 Total Debt $ 106,703,307 $ 106,313,004 III-13 Table 14 CITY OF BANGOR,MAINE Demographic Statistics Last Ten Calendar Years Median Public Unemploy- Fiscal I3ousehold Median School ment Year Population * Income* Age* Enrollment** Rate*** 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% 2004 31,595 29,740 36.1 4,006 4.30% * Source: U.S. Census ** Source: Bangor School Depariment *** Souice: Bureau of Labor Statistics III -14 Table 15 CITY OF BANGOR,MAINE Taxable Retail Sales(000's) Last Ten Calendar Years Tagable Retail Sales in: Bangor as Percent of Calendar City of Penobscot State of Year Bangor County Maine County State 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% 933% 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% 2004 1,499,734 2,134,202 16,096,203 70.27% 9.32% 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* 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 41,1343 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 9,637.9 191 18,888.9 487 28,526.8 780,101.0 2001 746,553.2 841,857.9 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 2004 878,0753 990,170.0 1,868,245.3 314 13,915.1 175 29,998.8 489 43,913:9 1,847,581.0 * Source:Maine Bureau Financial Institutions III-16 Table 17 CITY OF BANGOR,MAINE Miscellaneous Statistics June 30,2005 City Employees Public Education Full time 483 Number of schools 10 Part Time 426 Number of teachers 361 Number of students 3,989 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 57 Number of vehicles 20 Number of calls for service 23,945 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 483,776 Registered borrowers 37,352 Annual circulation 451,248 + III-17 This page left intentionally blank INTERNET REPORT ID:195880 3/7/2006 OMB No.0348-0057 �. FORM SF-.SACi U.S.DEPT.OF COMM.—Econ.and Stat.Admin.—U.S.CENSUS BUREAU (5-2004) ACTING AS COLLECT�NG AGENT FOR Data Collectian Form for Reporting on OFFICE OF MANAGEMENT AND BUDGET AUDITS OF STATES, LOCAL GOVERNMENTS,AND NON-PROFIT ORGANIZATIONS for Fiscal Year Ending Dates in 2004, 2005, or 2006 ' Complete this form, as required by OMB Circular A-133, "Audits � Federal Audit Ciearinghouse of States, Local Governments, and Non-Profit Organizations.° y�, ` 1201 E. 10th Street Jeffersonville, IN 47132 �Q GENERAL INFORMATION (To be completed by auditee, except for Items 4 and 7) 1. Fiscal period ending date for this submission 2. Type of Circular A-133 audit Month Day Year 06 / 30 /2005 Fiscal Period End Dates Must 1�Single audit 2❑ Program-specific audit Be In 2004,2005, or 2006 3. Audit period covered � 4. FEDERAL Date received by GOVERNMENT Federal clearinghouse 1 � Annual 2❑ Biennial a❑ Other - Months USE ONLY 5. Auditee Identification Numbers a. Primary Employer ldentification Number(EIN) b. Are multiple EINs covered in this report? 1 ❑Yes 2�No 0 1 - 6 0 0 0 0 2 0 c. If Part I, Item 5b= "Yes,"complete Part I, Item 5c on the continuation sheet on Page 4. d. Data Universal Numbering System (DUNS) Number e. Are multiple DUNS covered in this report? 1 ❑Yes 2�No 0 7 - 1 7 3 - 9 6 9 2 f. If Part I, Item 5e="Yes,"complete Part I, Item 5f on the continuation sheet on Page 4. 6. AUDITEE INFORMATION 7. AUDITOR INFORMATION (To be completed by auditor) a. Auditee name a. Auditor name ' CITY OF BANGOR RUNYON KERSTEEN OUELLETTE b. Auditee address (Number and street) b. Auditor address (Number and street) 73 HARLOW STREET 20 LONG CREEK DRIVE City City BANGOR SOUTH PORTLAND State ZIP+4 Code State ZIP+4 Code ME 0 4 4 0 1 ME 0 4 1 0 6 c. Auditee contact c.Auditor contact Name Name DEBBIE CYR ROGER LEBREUX Title Title FINANCE DIRECTOR PRINCIPAL d. Auditee contact telephone d. Auditor contact telephone 207 945 — 4400 207 773 — 2986 e. Auditee contact FAX e.Auditor contact FAX 207 772 — 3361 f. Auditee contact E-mail f. Auditor contact E-mail RLEBREUX@RKO-CPAS.COM g.AUDITEE CERTIFICATION STATEMENT-This is to 9. AUDITOR STATEMENT-The data elements and certify that,to the best of my knowledge and belief,the auditee information included in this form are limited to those prescribed has: (1)engaged an auditor to perform an audit in accordance by OMB Circular A-133.The information included in Parts II and with the provisions of OMB Circular A-133 for the period III of the form,except for Part III,Items 7,8,and 9a-9f,was described in Part I, Items 1 and 3; (2)the auditor has completed transferred from the auditor's report(s)for the period described such audit and presented a signed audit report which states that in Part I, Items 1 and 3,and is not a substitute for such the audit was conducted in accordance with the provisions of the reports.The auditor has not performed any auditing procedures Circular;and, (3)the information included in Parts 1,11,and 111 since the date of the auditor's report(s).A copy of the reporting of this data collection form is accurate and complete. I declare package required by OMB Circular A-133,which includes the that the foregoing is true and correct. complete auditor's report(s),is available in its entirety from the Signature of certifying official Date auditee at the address provided in Part I of this form.As Month Day Year required by OMB Circular A-133,the information in Parts 11 and 111 of this form was entered in this form by the auditor based on information included in the reporting package.The Printed Name of certifying official auditor has not performed any additional auditing procedures in connection with the completion of this form. Printed Title of certifying official Signature of auditor Date Month Day Year �u�a.�� 3 / � / INTERN�T REPORT ID:195880 3/7/2006 Primary EIN: 0 1 — 6 0 0 0 0 2 0 FINANCIAL STATEMENTS (To be comp►eted by auditorJ 1 . Type of audit report Mark either: 1 ❑X Unqualified opinion OR any combination of: 2 ❑ Qualified opinion s❑ Adverse opinion a❑Disclaimer of opinion 2. Is a "going concern" expianatory paragraph included in the audit report? 1 �Yes 2❑X No 3. Is a reportable condition disclosed? i X❑Yes 2❑No—SKIP to ltem 5 4. Is any reportable condition reported as a material weakness? 1 ❑Yes 2❑x No 5. Is a material noncompliance disclosed? 1 ❑Yes 2�No � FEDERAL PROGRAMS (To be completed by auditorj 1. Does the auditor's report include a statement that the auditee's financial statements include departments, agencies, or other organizational units expending$500,000 or more in Federal awards that have separate A-133 audits which are not included in this audit? (AICPA Audit Guide, Chapter 12) 1 ❑Yes 2❑X No 2. What is the dollar threshold to distinguish Type A and Type B programs? $ 645,104 (OMB Circular A-133§_.520(b)) 3. Did the auditee qualify as a low-risk auditee? (§_.530) 1 X❑Yes 2❑No 4. Is a reportable condition disclosed for any major program? (§_.510(a)(1)) i ❑X Yes 2❑No—SKIP to Item 6 5. Is any reportable condition reported as a material weakness? (§_.510(a)(1)) 1 ❑Yes 2 X❑No 6. Are any known questioned costs reported? (§_.510(a)(3) or(4)) 1 �Yes 2 0 No 7. Were Prior Audit Findings related to direct funding shown in the Summary Schedule of Prior Audit Findings? (§_.315(b)) 1 ❑Yes 2�No 8. Indicate which Federal agency(ies) have current year audit findings related to direct funding or prior audit findings shown in the Summary Schedule of Prior Audit Findings related to direct funding. (Mark(X)aU that app/y or None) sa❑ U.S. Agency for Inter- aa❑ Federal Emergency as❑ National Aeronautics and ss❑ Social Security national Development Management Agency Space Administration Administration io❑ Agriculture ss❑ General Services Administration as❑ National Archives and is❑ U.S. Department zs❑ Appalachian Regional ss❑ Health and Human Services Records Administration of State Commission 9�❑ Homeland Security os❑ National Endowment for 20❑ Transportation 11 ❑ Commerce ia❑ Housing and Urban the Arts 2i ❑ Treasury sa❑ Corporation for National Development os❑ National Endowment for 82❑ United States and Community Service o3❑ Institute of Museum and the Humanities Information Agency 12❑ Defense Library Services a�❑ National Science �❑ Veterans Affairs sa❑ Education 1s❑ Interior Foundation o�❑ Office of National Drug oo�x None si ❑ Energy is❑ Justice Control Policy ❑ Other—Specify: ss❑ Environmental i�❑ Labor 5s❑ Small Business Protection Agency os❑ Legal Services Corporation Administration �� Each agency identified is required to receive a copy of the reporting package. ln addition, one copy each of the reporting package is required for.• •the Federal Audit Clearinghouse archives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . � •and, if not marked above,the Federal cognizant agency . . . . . . . . . . . . . . . . . . . . . . . . . . . ❑ Count total number of boxes marked above and submit this number of reporting packages . . . . 0 Pag@ 2 - FORM SF-SAC(5-2004) INTERNET REPORT ID: 195880 3/7/2006 (Page 3-#1 of 4) Primary EIN: � 1 — 6 0 0 0 0 2 0 � � �� FEDERAL PROGRAMS-Continued � � D 9. FEDERAL AWARQS EXPENDED DURING FISCAL YEAR 10. AUDIT FINDINGS NCFDA Number Research Major program g Federal and Name of Federal Amount Direct Type(s) of Audit find'ing � Agency i Extension 2 develop- program expended award Major If of audpe compliance reference Prefix� ment program p requirement(s)4 number(s)5 re ort 3 �a I b �� d� �e) (f) (9) (h) (a) (b) � 1 ❑Yes 1 �Yes 1 ❑Yes y I 4 � .218 2�NO COMMUNITY DEVELOPMENT BLOCK GRANTS $ 2,132,331 .00 2�NO 2�NO O N/A � � 1 ❑Yes 1 �Yes 1 �Yes 1 � 4 � ,246 2�NO EDI SPECIAL PROJECTS � 1,164,948.00 2�NO 2 Q NO U O N/A I 1 � 4 i .235 1 �Yes � �Yes 1 ❑Yes 2�NO SUPPORTIVE HOUSING � 'I69,641 .00 2❑NO 2�NO O N/A � � i i ❑Yes 1 �Yes 1 �Yes 1 � 4 � ,238 2�NO SHELTER PLUS CARE � 428,139.00 2❑NO 2�NO O N/A � � 1 �Yes 1 6 � 7�o � �Yes i ❑Yes I I • 2�NO COPS PROGRAM � 25,31 O .00 2�NO 2�NO O N/A � � i 1 ❑Yes 1 �Yes 1 ❑Yes 1 � 6 I .592 2�NO LOCAL LAW ENFORCEMENT BLOCK GRANT $ 4,712 .00 2�NO 2�NO O N/A � � i �Yes 1 �Yes 1 ❑Yes 1 � 6 � ,523 2� �Jp JUVENILE ACCOUNTABILITY INCENTIVE BLOCK GRANT $ 15,555 .00 2 0 NO 2�NO O N/A I � 1 ❑Yes 1 �Yes 1 ❑Yes 2 � O � .106 2� NO AIRPORT IMPROVEMENT PLAN � 2,067,058 .00 2�NO 2�NO O N/A I i i ❑Yes 1 �Yes i p Yes 2 � O I .930 2�NO SMALL COMMUNITY AIR SERVICE DEVELOPMENT $ 72�756 .00 2❑NO 2�NO O N/A i i ❑Yes TRANSPORTATION&COMMUNITY SERVICE i �Yes 1 �Yes 2 I 0 � .205 2�NO pRESERVATION $ 495,372 .�Q 2�NO 2�NO 0 N/Q TOTAL FEDERAL AWARDS EXPENDED �F ADDIT/ONAL LINES ARE NEEDED, PLEASE PHOTOCOPY � 21,503,472 .00 TH1S PAGE,ATTACH ADDIT/ONAL PAGES TO TNE FORM, AND SEE/NSTRUCTIONS f See Appendix 1 of instructions for valid Federal Agency two-digit prefixes. 20r other identifying number when the Catalog of Federal Domestic Assistance(CFDA)number is not available. (See Instructrons) 3 If major program is marked "Yes,"enter only o n e letter(U=Unqualified opinion,Q=C�ualified opinion,A=Adverse opinion,D=Disclaimer of opinion)corresponding to the type of audit report in the adjacent box. If major program is marked"No,"leave the type of audit report box blank. 4 Enter the letter(s)of all type(s)of compliance requirement(s)that apply to audit findings(i.e.,noncompliance,reportable conditions(including material weaknesses),questioned costs,fraud,and other items reported under§_.510(a))reported for each Federal program. A. Activities allowed or unallowed E. Eligibility I. Procurement and suspension L. Reporting B. Allowable costs/cost principles F. Equipment and real property management and debarment M. Subrecipient monitoring � C. Cash management G. Matching, level of effort, earmarking J. Program income N. Special tests and provisions � D. Davis—Bacon Act H. Period of availability of Federal funds K. Real property acquisition and O. None W5 N/A for NONE relocation assistance P. Other INTERNET REPORT ID:195880 3/7/2006 (Page 3-#2 of 4) Primary EIN: � � — 6 0 0 0 0 2 0 T � ��(�]] FEDERAL PROGRAMS-Continued � � � 9. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 10. AUDIT FINDINGS �, CFDA Number Research Major program g Federal and Name of Federal Amount Direct Type(s) of Audit finding ' Agency � Extension 2 develop- ro ram ex ended award Major �f yes,type compliance reference Prenxt � ment p g p program of audit requirement(s)4 number(s)5 � report 3 a) (b) (�) (d) (e) (f) (9) (h) (a) (b) i 10 Yes 1 �Yes 1 ❑Yes 1 I 1 � ,300 2�NO ECONOMIC DEVELOPMENT ADMINISTRATION $ 747,285 .00 2❑NO 2�NO O N/A � � � �Yes 1 ❑Yes 1 �Yes � I O � ,557 2�NO WOMAN,INFANT AND CHILDREN � 1,S6�,S77.00 2�NO 2❑NO U O N/A I i i ❑Yes 1 ❑Yes 1 ❑Yes 'I I O I ,550 2�(�Jp FOOD DISTRIBUTION-FOOD DONATION PROGRAM $ 54,040 .00 2�NO 2�NO O N/A � i i ❑Yes 1 ❑Yes 1 ❑Yes 1 � 0 � ,553 2�(�p SCHOOL BREAKFAST PROGRAM � 54,520.�� 2�NO 2�NO O N/A � i 1 ❑Yes 1 ❑Yes 1 ❑Yes 1 � � � ,555 p Q(�f O SCHOOL LUNCH PROGRAM $ 406,753 .�Q 2 0 NO 2❑X NO O N/A � � 1 ❑Yes i i ❑Yes i ❑Yes 9 � 7 I ,004 2❑X NO STATE DOMESTIC PREPAREDNESS $ 359,542 .00 2❑X NO 2❑X NO O N/A � i 1 ❑Yes 1 ❑Yes 1 ❑Yes 9 � 7 � ,036 2�NO PUBLIC ASSISTANCE $ 236,168 .00 2 Q NO 2�NO O NJA I � � �Yes 1 ❑Yes 1 ❑Yes 6 � 6 � .458 2�NO COMBINED SEWER OVERFLOW � 1,770,763 .00 2�NO 2�NO O N/A I i i ❑Yes 1 ❑Yes 1 ❑Yes 9 � 3 I .994 2� NO BANGOR CHILDRENS DENTAL CLINIC � 220,051 .00 2�NO 2�NO O N/A i i O Yes i ❑Yes 1 ❑Yes 9 I 3 � .118 2� NO HIV PREVENTION&EDUCATION $ ],884 .�Q 2�NO 2�NO 0 N/A TOTAL FEDERAL AWARDS EXPENDED fFADDITfONAL LINES ARE NEEDED, PLEASE PHOTOCOPY $ 21,503,472 .00 THlS PAGE,ATTACH ADDITIONAL PAGES TO THE FORM, AND SEE lNSTRUCTIONS �See Appendix 1 of instructions for valid Federal Agency two-digit prefixes. 20r other identifying number when the Catalog of Federal Domestic Assistance (CFDA)number is not available. (See lnstructions) 3 If major program is marked"Yes,"enter only o n e letter(U=Unqualified opinion,Q=Qualified opinion,A=Adverse opinion,D=Disclaimer of opinion)corresponding to the type of audit report in the adjacent box. If major program is marked "No,"leave the#ype of audit report box blank. 4 Enter the letter(s)of all type(s)of compliance requirement(s)that apply to audit findings(i.e.,noncompliance,reportable conditions(including material weaknesses),questioned costs,fraud,and other items reported under§_.510(a))reported for each Federal program. A. Activities allowed or unallowed E. Eligibility I. Procurement and suspension L. Reporting B. Allowable costs/cost principles F. Equipment and real property management and debarment M. Subrecipient monitoring � C. Cash management G. Matching, level of effort, earmarking J. Program income N. Special tests and provisions cn D. Davis—Bacon Act H. Period of availability of Federal funds K. Real property acquisition and O. None �D 5 N/A for NONE relocation assistance W P, Other INTERNET REPORT iD: 195880 3/7/2006 (Page 3-#3 of 4) Primary EIN: 0 1 — 6 0 0 0 0 2 0 T ° �� FEDERAL PROGRAMS-Continued � � � � D 9. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 10. AUDIT FINDINGS N CFDA Number Research Major program g Federal and Name of Federal Amount Direct Type(s) of Audit findin � Agency i Extension z develop- program expended award Major If of audte compliance referenceg Pr af;x� � b (>nt program report 3 requirement(s)4 number(s)5 �d} �e� (f) (9) (h) (a) (b) � � ❑Yes 1 ❑Yes 1 �Yes J I 3 � ,J77 2�NO STDMIV CLINICAL AND EPIDEMIOLOGIC SERVICES $ 133,7SJ.00 2�NO 2�NO O N/A � � 1 O Yes 9 I 3 � ,268 � ❑Yes i ❑Yes � 2�NO IMMUNIZATION PROGRAM NURSING $ 79,776.00 2�NO 2�NO O N/A I 8 � 4 i .002 1 �Yes 1❑Yes i ❑Yes 2�NO ADULT BASIC EDUCATION � 6Z,1S3 .00 2�NO 2�NO O N/A � � 1 ❑Yes 1 ❑Yes i �Yes 8 � 4 � ,010 2� No TITLE IA $ 1,163,707.00 2�NO 2 0 No U O N/A � 1 ❑Yes � i � ❑Yes 1 ❑Yes 8 � 4 i •298 2�No TITLE V $ 92,830.00 2�No z�No O N/A � i 1 ❑Yes 1 ❑Yes 1 ❑Yes 8 � 4 I ,318 2�X NO TITLE IID-ED TECHNOLOGY � 76,152 .00 2 Q NO 2❑X NO O N/A I � 1 ❑Yes 1 ❑Yes � 0 Yes 8 I 4 I •027 2� NO SPECIAL EDUCATION GRANTS TO STATES $ $57,834 .00 2 0 NO 2�NO U P 2005-2 � � 1 ❑Yes 8 � 4 � .367 2� No TITLE IIA 1 ❑Yes � ❑Yes $ 270,235 .00 2�No 2�No O N/A I i 1 ❑Yes � ❑Yes 1 �Yes 8 � 4 I ,173 2�nJp PRESCHOOL � 16,886.�� 2�NO 2�NO U � N/A i 10 Yes 1 ❑Yes � �Yes 8 I 4 � ,086 2�NO DRUG FREE SCHOOLS AND COMMUNITIES $ 19,351 .00 2�No 2�No O N/A TOTAL FEDERAL AWARDS EXPENDED �FADDIT/ONAL LINES ARE NEEDED, PLEASE PHOTOCOPY $ 21,503,472 .00 THIS PAGE,ATTACH ADD/T/ONAL PAGES TO THE FORM, AND SEE INSTRUCTIONS �See Appendix 1 of instructions for valid Federal Agency two-digit prefixes. 2 Or other identifying number when the Catalog of Federal Domestic Assistance (CFDA)number is not available. (See Instructions) , 3 If major program is marked"Yes,"enter only o n e letter(U= Unqualified opinion,Q=Qualified opinion,A=Adverse opinion,D=Disclaimer of opinion)corresponding to the type of audit report in the adjacent box. If major program is marked"No,"leave the type of audit report box blank. 4 Enter the letter(s)of all type(s)of compliance requirement(s)that apply to audit findings(i.e.,noncompliance, reportable conditions(including material weaknesses),questioned costs,fraud,and other items reported under§_.510(a)}reported for each Federal program. A. Activities allowed or unallowed E. Eligibility I. Procurement and suspension L. Reporting B. Allowable costs/cost principles F. Equipment and real property management and debarment M. Subrecipient monitoring � C. Cash management G. Matching, level of effort, earmarking J. Program income N. Special tests and provisions � D. Davis—Bacon Act H. Period of availability of Federal funds K. Real property acquisition and O. None �D 5 N/A for NONE relocation assistance W P. Other INTERNET REPORT ID: 195880 3R/2006 (Page 3-#4 of 4) Primary EIN: � 1 — 6 0 0 0 0 2 0 T 3 �� FEDERAL PROGRAMS-Continued � � 9. FEDERAL AWARDS EXPENDED DURING FISCAL YEAR 10. AUDIT FINDINGS �, CFDA Number Research Major program g Federal and Name of Federal Amount Direct �f Type(s) of Audit finding � Agency � Extension 2 develop- pro ram ex ended award Major Yes,type compliance reference Prefixr � ment g p program of audit requirement(s)4 number(s)5 � report 3 (a (b (�) (d) (e) (f) (9) (h) (a) (b) i � ❑Yes � ❑Yes � �Yes 2 I 0 � ,507 2�NO DOT-OPERATING � 1,809,305 .00 2� NO 2 0 NO U O N/A � � 10 Yes � ❑Yes 1 ❑Yes 2 � 0 � ,509 2�NO DOT-RTAP � S,QQ$ .�Q 2�(�f0 2�NO 0 N/Q � 10 Yes i 1 ❑Yes 1 ❑Yes 1 I 2 � .4�� 2�NO NATIONAL GUARD MILITARY PROJECTS $ 4,6�S�72y .00 2�NO 2�NO O N/A � � � �Yes 1 ❑Yes 1 ❑Yes � � 2�No $ .00 2�No 2❑No � � � 0 Yes 1 ❑Yes 1 ❑Yes � i . 2�No $ .00 2❑No 2❑No � � � ❑Yes � � � ❑Yes 1 ❑Yes i ' 2�N° $ .00 2❑No 2❑No � i 1 ❑Yes 1 ❑Yes 1 ❑Yes � � 20No $ .00 2�No 2�No I � 1 ❑Yes 1 �Yes 1 ❑Yes I � i ' 2� N° $ .00 2❑No 20No I i 1 �Yes 1 ❑Yes i ❑Yes I � . 20No $ .00 2ONo 2�No � � 1 �Yes 1 ❑Yes 1 ❑Yes � 2 0 No � $ .00 2❑No zDNo TOTAL FEDERAL AWARDS EXPENDED rFao�irioNAc uNEs aRE NEEOEo, PLEASE PHOTOCOPY $ 2y,503,472 .00 THIS PAGE,ATTACH ADDITlONAL PAGES TO THE FORM, AND SEE/NSTRUCTIONS f See Appendix 1 of instructions for valid Federal Agency two-digit prefixes. 20r other identifying number when the Catalog of Federal Domestic Assistance(CFDA) number is not available.(See lnstructions) 3 If major program is marked "Yes,"enter only o n e letter(U=Unqualified opinion,Q=Qualified opinion,A=Adverse opinion,D=Disclaimer of opinion)corresponding to the type of audit report in the adjacent box. If major program is marked°No,"leave the type of audit report box blank. 4 Enter the letter(s)of all type(s)of compliance requirement(s)that apply to audit findings(i.e.,noncompliance, reportable conditions(including material weaknesses),questioned costs,fraud,and other items reported under§_.510(a)) reported for each Federal program. A. Activities allowed or unallowed _ E. Eligibility I. Procurement and suspension L. Reporting B. Allowable costs/cost principles F. Equipment and real property management and debarment M. Subrecipient monitoring � C. Cash management G. Matching, Ievel of effort, earmarking J, Program income N. Special tests and provisions � D. Davis—Bacon Act H. Period of availability of Federal funds K. Real property acquisition and O. None �D 5N/A for NONE relocation assistance W P. Other �• - � �� - ee eseeeee : �� _ _ . . - . . .- . .. . -. -.. . . . . -. ... o�eee��m��e�� e��v�eee��e��m��e��e��t� o��e��m��e��e��v��e��e� ��m��e��e�� o��e��m��e��e��v��e��e�� m��e��e�� o��e��m��e��e��o��e��e� ��m��e��e�� o��e��m��e��e��o��e��e� ��m��e��e�� o��e��m��e��e��o��e��e� ��m��e��e�� o��e��m��e��e��o��e�� e��m��e��e�� o��e��m��e��o��e��e ��m��e��e�� o��e��m��e��e��o��e��e� ��m��e��e�� m��e��m��e��e��m��e��e� � m��e��m��e��e��m��e��e� ��m��e��e�� m��e��e�� m��e��m��e��e��m��e��e�� m��e��e�� m��e��m��e��e��m��e��e�� m��e��e�� m��e��m��e��e��m��e��e�� m��e��m��e��e��m��e��e� ��m��e��e�� m��e��m��e��e��m��e��e� ��m��e��e�� m��e��m��e��e��m��e��e ��m��e��e�� m��e��e�� m��e��m��e��e��m��e��e�� m��e��e�� m��e��m��e��e��m��e��e�� m��e��e�� m��e��m��e��e��m��e��e�� . . s�m��e��e�� ... . • . . . . .. .• . . . .. . . .. . . �} � � CITY OF BANGOR,MAINE Reports Required by Government Auditing Standards and OMB Circular A-133 June 30,2005 , CITY OF BANGOR,MAINE Reports Required by GovernrrzentAuditing Standards . and OMB Circular A-133 June 30,2005 R� Pa�e Report on Compliance and on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with GovernmentAicditing Stc�ndar�ls 1_� Report on Compliance with Requirements Applicable to Each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133 3-4 Schedule of Expenditures of Federal Awards 5-� Notes to Schedule of Expenditures of Federal Awards g Report on Compliance with Requirements Applicable to fhe Passenger Facility Charge Program, Internal Control over Compliance and Schedule of Expenditures of Passenger Facility Charges 9-10 Schedule of Expenditures of Passenger Facility Charges 11 Schedule of Findings and Questioned Costs: Section I-Summary of Auditor's Results 12 Section II-Findings Required to be Reported Under G�vernmentAa�cliting Stanclarcls i3 Section III-Findings and Questioned Costs for Federal Awards 14 Section IV- Status of Prior Year Findings and Questioned Costs 15 - 16 Jz�vc�avti � �Gersteev� du etlette Certified Public Accountants and Business Consultants REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City Council City of Bangor,Maine We have audited the financial statements of the governmental activities,business-type activities, each major fund, and the aggregate remaining fund information of the City of Bangar,Maine as of and for the year ended June 30, 2005, which col:lectively comprise the City of Bangor's basic financial statements and have issued our report thereon dated October 7, 2005. We conducted our audit in accardance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Aaa�liting Stan�lards, issued by the Comptroller General of the United States. Intemal Control Over Financial Reporting In planning and perfornung our audit, we considered the City of Bangor's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation fhat we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over �nancial reporting that, in our judgment,could adversely affect the City of Bangor's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. A reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item#2005-1. A material weakness is a reportable condition in which fhe design or operation of one or more of the internal co�trol components does not reduce to a relatively 1ow level fhe risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements beinb audited may occur and not be detected within a timely period by employees in the normal course of perfarming their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose a11 matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. . � REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS, CONTINUED Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Bangor's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements,noncompliance with which could have a direct and material effect on the determination of financial statement arnounts. However,providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Goverrcrrcent Auditing Standar�ls. We noted other matters involving the internal control over financial reporting that we have reported to the management of the City in a separate letter dated October 7,2005. This report is intended solely for the information and use of the City Councii, School Board, management and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specific parties. I.�.��, �� October 7, 2005 South Portland,Maine 2 J�uvc�ovc �Gersteevc D�cetlette Certified Public Accountants and Business Consultants REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 City Council City of Bangor,Maine Comp]iance We have audited the compliance of the City of Bangor with the types of compliance requirements described in the U. S. Oftice of Mana�ement and Budget(OMB) CircularA-133 Compliance Sccpplerrcent that are applicable to each of its major federa] prob ams for the year ended June 30, 2005. The City of Bangor's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City of Bangor's management. Our responsibility is to express an opinion on the City of Bangor's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to�nancial audits contained in Goverrcrrcent Auclitircg Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States,Local Governments, and Non-profit Organizations. Those standards and OMB Circutar A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes exarnining, on a test basis,evidence about the City of Bangor's compliance with those requirements and performin�such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City of Bangor's comptiance with those requirements. In our opinion, the City of Bangor complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2005. Internal Control Over Com�liance The management of the City of Bangor is responsible for establishing and maintaining effective internal contro] over compliance with requirements of laws,regulations,contracts,and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with requirements that could have a direct and material effect on a major federal prob am in order to determine our auditing procedures for the purpose oFexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. . b REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133,CONTINUED We noted a certain matter involving the internal contro] over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to signi�cant deficiencies in the desib or operation of the interna] control over compliance that, in our judgment,could adversely affect the City of Bangor's ability to administer a major federa]program in accordance with the applicable requirements of laws, regulations;contracts, and grants. The reportable condition is described in the accompanying schedule of findings and questioned costs as items #2005-2. A material weakness is a reportable condition in which the desib or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with the applicable requirements of laws, regulations,contracts,and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance woutd not necessarily disclose all matters in the internal controls that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Bangor as of and for the year ended June 30, 2005, and have issued our report thereon dated October 7, 2005. Our audit was performed for the purpose of forming opinions on the financial statements that collectively.comprise the City of Bangor's basic financial statements. The accompanying Schedule of Expenditures of Federa] Awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is 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 stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended for the information and use of the City Council, School Board, management and federa] awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specific parties. 0 October 7, 2005 South Portland,Maine 4 CITY OF BANGOR,MAINE Schedule of Expenditures of Federal Awards For year ended June 30,2005 ' Pass- Federal tl�rough/ CFDA Award grantor Beginning Revenue Ending Federal Awards number amount number balance Federal State Other Transfers Expenditures balance Received Directiv Department of Housing and Urban Development: Conununity Development Block Grants: B-02-MG23-0004 14.218 $ 1,292,000 N/A 266,716 575,113 - - - 182,107 659.722 B-03-MG23-0004 14.218 1,275,000 N/A (277,101) 1,069,724 - 79,763 - 872,391 - B-04-MC-23-0004 14.218 1,252,000 N/A - - - 354,339 - 1,077,833 (723,494) EDI Special Projects: B-0t-SP-ME-0265(7616) 14.246 997,800 N/A - 916,423 - - - 916,423 - B-04-SP-ME-0310(7616) 14.246 248,525 N/A - 248,525 - - - 248,525 - Supportive Housing: MEOlB30-1003(8711) ]4.235 118,422 N/A - 59,211 - - - 59,211 - ME O1B30-1005(8718) 14.235 18,600 N/A - J 8,600 - - 18,600 - MEO1B30-1003(8719) 14.235 72,678 N/A - 72,67g - _ _ �2�6�g _ MEO1B30-]002(8730) 14.235 19,152 N/A - 19,152 - - - 19,152 - Shelter Plus Care: MEOlC90-]001 TRA(8713) 14.238 254,640 N/A - 75,982 - - - 75,982 - ME O l C00-1001 TRA(8712) 14.238 259,200 N/A - 48,587 - - - 48,587 - MEO1C00-1003PRA(8716) 14.238 53,400 N/A - ]9,895 - - - 19,895 - ME O1C40-]O10 TRA(8714) 14.238 170,268 N/A - 34,056 - - - 34,056 - ME O1C30-1009 TRA(8714) 14.238 147,300 N/A - 73,394 - - - 73,394 - ME O1C90-1002 TRA(3715) 14.238 804,540 N/A - 162,913 - - - ]62,913 - ME O1C90-1007 PRA(8716) 14.238 56,448 N/A - 13,312 - - - 13,312 - Total Department of Housing and Urban Development (]0 385) 3 407 565 - 4�4 107 - 3 895 059 (6�772) Department of Justice: Cops Homeland Security Overtime Program 16.710 28,705 20030MWX0017 - ]8,925 - 6,307 - 25,232 - Cops Interoperable Commwiication Tech Program 16.710 448,674 2004INWX0010 - 2,309 - 769 - 3,078 - Local L.aw Enforcement Block Grant 16.592 29,895 2002-LB-BX-1.136 17,757 - - - - - 17,757 Local Law Enforcement Block Grant 16.592 23,167 2003-LB-BX-1018 6,309 - - - - 4,712 ],597 Local L.aw Enforcement Block Grant 16.592 10,306 2004-LB-BX-1373 - ]0,306 - 1,145 - - 11,451 Juvenile Accountability Incentive Block Grant ]6.523 4l 980 G1003199 (1 I) 6 731 - 8 835 - 15 555 - Total Department of J ustice 24 O55 38.271 - 17 056 - 48 577 'i0 805 Department of Transportation: Airport Improvement Plan: ' 3-23-0005-35 20.106 4,501,268 N/A 178,939 16Q646 12,910 29,185 - 202,741 178,939 3-23-0005-36 20.106 134,710 N/A - 5,086 283 283 - 5,652 - 3-23-0005-38 20.106 541,071 N/A - 51.556 1,357 1,358 - 54,27] - 3-23-0005-39 20.106 1,387,220 N/A (1,146) 840,462 22,102 21,002 - 882,420 - 3-23-0005-40 20.106 1,420,649 N/A - 855,654 22,517 31,850 - 910,021 - 3-23-0005-41 20.106 307.853 N/A - 11,356 299 298 - 1(,953 - Small Conununity Air Service Development Pilot Proo am 20.930 310,000 N/A - 45,384 ]6,317 11,055 - 72,756 - Federal Highway Administration- Transportation&Community Service Preservation(7609) 20.205 562,460 O1 ME01 - 495,372 - - - 495 372 - Total Department of Transportadon 177 793 2 465,516 75 785 95 0�1 - 2 635 186 178 939 Department of Commerce,Economic Development Administi•ation 11.300 1,200,000 01-01-07673 - 448 371 - 298 914 - 747 285 - 5 CITY OF BANGOR,MAINE Schedule of Expenditures of Federal Awards,Continued For year ended June 30,2005 Pass- Federal through/ CFDA Award grantor Beginning Revenue Ending Federal Awards number amount numUer balance Federal State Other Transfers Expenditures balance Pass Throuth Department of Agriculture,passed through Maine Department of Human Services: Women,Infant and Children-Admin: WIC 04-02 10.557 891,972 N/A - 157,187 - - - 157,187 - WIC OS-02 ]0.557 430,251 N/A - 297,752 - - - 297,752 - Women,Infant and Children-Food: WIC 04-02 ]0.557 ],903,267 N/A - 452,919 - - - 452,919 - WIC OS-02 ]0.557 1,567,994 N/A - 954,019 - - - 954,0]9 - Passed through Maine Department of Education: Food Distribution-Food Donation Program 10.550 N/A Ol3-6134-OS - 54,040 - - - 54,040 - School Breakfast Program 7 0.553 N/A 013-7127-OS - 54,520 - - - 54,520 - School L�nch Program 10.555 N/A O13-7728-OS - 406,753 - - - 406,753 - Total Department of Agriculture - 2,377,190 - - - 2,377,190 - Department of Homeland Security,Office of Domestic Preparedness,passed through the Maine Emergency ivlanagement Agency: State Domestic Preparedness(7706) 97.004 437,000 N/A $ l 18,867 145,487 - - - 264,354 - State Domestic Preparedness(7909) 97.004 487,984 N/A - 95,188 - - - 95,]88 - Public Assistance 97.036 178,753 N/A - 178,753 - 57,415 - 236,168 - Total Department of Homeland Securiry 118,867 419,428 - 57,415 - 595,710 - Environmental Protection Agency,passed through the State Revolving Loan Fund Program: CombinedSewerOverflow 66.458 2,650,000 N/A - ],770,763 - - - ],770,763 - Department of Health&Human Services,passed through Bureau of Health: Bangor Children's Dental Clinic 93.994 15,354 BH OS-078 - 15,354 - 204,697 - 220,051 - HIV Prevention&Education 93.118 15,969 BH 04-208 965 l 1,533 - - - 7,884 4,614 STD/HIV Clinical and Epidemiologic Services 93.977 ]47,405 BH 04-208 (6,939) ]06,459 - 19,803 - 133,789 (]4,466) Immunization Program Nursing 93.268 10,000 BH 04-249 295 5,000 - 21,532 - 39,040 (12,213) Immunization Program Nursing 93.268 ]0,000 BH OS-]83 - 5,000 - 60,179 - 40,736 24,443 Total Department of Health&Human Services (5,679) ]43,346 - 306,21] - 441,500 2,378 ,.� 6 CITY OF BANGOR,MAINE Schedule of Expenditares of Federal Awards,Continued ,`: For year ended June 30,2005 Pass- Federal through/ _ CFDA Award grantor Beginning Revenue Ending Federal Awards numUer amount number balance Federal State Other Transfers Ex enditures balance Pass Throueh,Continued Department of Education,passed through the Maine Department of Education: Adult Basic Education 84.002 17,824 013-OSA-6296-642 - 17,824 - - - 17,824 - Adult Basic Education 84.002 44,329 O]3-OSA-6297-642 - 44,329 - - - 44,329 - Title 1 A 84.010 l,105,278 O]3-OSA-6334-132 263,903 1,105,278 - - - 1,163,707 205,474 Title V 84.298 24,276 013-OSA-1072-662 28,567 24,276 - - 46,222 92,830 6,235 Tide IID-Ed Technology 84.318 38,865 013-OSA-1006-072 2,152 38,865 - - 40,135 76,152 5,000 Special Education-Grants to Local States 84.027 815,255 013-OSA-6317-122 48,528 815,255 - - - 857,834 5,949 Title IIA 84.367 334,432 O]3-OSA-1138-112 2,827 334,432 - - (67,008) 270,235 16 Preschoo]Local Entitlement 84.173 15,507 07 3-OSA-6241-023 l,379 l 5,507 - - - l 6,886 - Passed through the Maine Department of Su6stance Abuse: Drug Free Schools and Communities 84.086 38 447 N/A 253 38 447 (19 349) ]9 351 To[al Department of EducaUon 'i47 609 2 434 21� 2 559 148 222 674 Urban Mass Transportapon Assistance,passed through Maine Department of Transportation: Operating 20.507 TBD TBD - 486,854 72,831 827,249 - 1,386,934 PIN 10390.00 20.507 473,814 ME 90-X-130 - 182,000 - 232,37] - 414,371 PIN 11915.40 20.507 374,898 ME90-X-135 - 6,400 - ],600 - 8,000 RTAP 20.509 4,028 ME l 8-X-036 - 2,27g _ _ _ 2 2�g _ RTAP 20.509 2,750 ME]8-X-037 - 2,750 - - - 2,750 - Total Urban Mass Transportation Assistance - 680 282 72 8'il 1 06] 22o 1 814 333 Department of Defense,passed through Maine Air National Guard: National Guard Military Projects 12.401 8 703,25] DAHA-1 17-02-2-2101 - 4 6]8 610 - 4 618 721 (1 1]) Total Federal Awards 652,260 18,803,555 148,616 2,269,954 - 21,503,472 370,913 7 CITY OF BANGOR,MAINE , ,; Notes to Schedule of Expenditures of Federal Awards June 30,2005 PURPOSE OF THE SCHEDULE Office of Management and Budget(OMB) Circular A-1 33, Audits of States,Local Governments and Non-profit Organizations, requires a Schedule of Expenditures of Federal Awards showing total expenditures for each federal award program as identified in the Catalog of Federal Domestic Assistance(CFDA). SIGNIFICANT ACCOUNTING POLIC�S A. Reporting Entity -The accompanying schedule includes all federal award programs of the City of Bangor for the fiscal year ended June 30, 2005. The reporting entity is defined in Notes to Basic Financial Statements of the City of Bangor. B. Basis of Presentation-The information in the accompanying Schedule of Expenditures of Federal Awards is presented in accordance with OMB Circular A-133. 1. Pursuant to OMB Circular A-133,federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, Loans, loan guarantees, property, interest subsidies,insurance or direct appropriations: 2. Major-OMB Circular A-1.33 establishes the level of expenditures or expenses to be used in defining major federal award programs. Major prob ams for the City of Bangar are identified in the summary of auditor's results in the Schedule of Findings and Questioned Costs. C. Basis of Accounting-The information presented in the Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting, which.is consistent with the reporting in the City's fimd financial statements. 8 . �- , jzu vi�av� � �Gersteevc O�l etlette Certified Public Accountants and Business Consultants REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE PASSENGER FACILITY CHARGE PROGRAM,INTERNAL CONTROL OVER COMPLIANCE AND SCHEDULE OF EXPENDITURES OF PASSENGER FACILITY CHARGES City Council City of Ban�or,Maine Com l�p 'ance We have audited the compliance of the City of Bangor with the compliance requirements described in the Pa,csenger Fcrcility Charge Aaadit Guide for Ptr.blic Agencies, issued by the Federal Aviation Administration (Guide),for its passenger facility charge program for the year ended June 30, 2005. Compliance with the requirements of laws and regulations applicable to its passenger facility charge program is the responsibility of the City of Bangor's management. Our responsibility is to express an opinion on the City of Bangor's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Covern�nent Aucliting Stanclards, issued by the Comptroller General of the United States; and the Guide. Those standards and the Guide require that we plan and perforrn the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material effect on the passenger facility charge program occurred. An audit includes examining,on a test basis, evidence about the City of Bangor's compliance with those requirements and perfor►ning such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City of Bangor's compliance with those requirements. In our opinion, the City of Bangor complied, in all material respects, with the requirements referred to above that are applicable to its passenger facility charge program for the year ended June 30, 2005. Internal Control Over Compliance The management of the City of Bangor is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws and regulations applicable to the passenger facility charge program. In planning and performing our audit, we considered the City of Bangor's internal control over compliance with requirements that could have a direct and material effect on the passenger facility charge program in order to determine our auditing procedures for fhe purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with the Guide. « REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO THE PASSENGER FACILITY CHARGE PROGRAM,INTERNAL CONTROL OVER COMPLIANCE AND SCHEDULE OF EXPENDITURES OF PASSENGER FACILITY CHARGES, CONTINUED Our consideration ofi the intemal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the desib or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of]aws and regulations that would be material in relation to the passenger facility charge program being audited may occur and not be detected. within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. Schedule of Ex�enditures of PassenCer Facilitv Char�es We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Bangor as of and for the year ended June 30, 2005, and have issued our report thereon dated October 7, 2005. Our audit was performed for the purpose of forming opinions on the basic financial statements taken as a whole. The accompanying schedule of expenditures of passenger facility charges is presented for purposes of additional analysis as speci�ed in the Guide and is 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 �nanciai statements and, in our opinion,is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of the City Council,management, and the Federal Aviation Administration and is not intended to be and should not be used by anyone other than these specified parties. I�� October 7, 2005 South Portland,Maine 10 CITY OF BANGOR,MAINE Schedule of Expenditures of Passenger Facility Charges For the Year and Each Quarter Within the Year Ended June 30,2005 Memorandum Memorandum Only Only Cumulative Quarter Ended Quarter Ended Cumulative Approved Amounts Total September 30, Decem6er 31, Quarter Ended Quarter Ended Year Ended Totals Impose and Use June 30,2004 2004 2004 March 31,2005 June 30,2005 June 30,2005 June 30,2005 95-QI-C-00-BGR(as amended) Passenger facility charge revenue and interest $ 8,961,006 5,093,662 177,752 772,759 145,I35 182,736 678,382 5 772 044 Expenditures: Reconstruct Domestic Terminal Apron-Soufh 2,301,222 2,301,222 - - - - - 2,301,222 Reconstruct Domestic Terminal Apron-North 1,070,596 937,451 - - - - - 937,45] Reconstruct International Terminal Apron-North 3,464,415 - - - - _ _ _ Reconstruct Commuter Apron Area 2,124,773 - - - - - _ _ Total expenditures $ 8,961,006 3,238,673 - - - - - 3,238,673 ll CITY OF BANGOR,MAINE � Schedule of Findings and Questioned Costs June 30,2005 Section I-Summary of Auditor's Results Firtancial Staterrte►tts Type of auditor's report issued: Unqualified Internal control over financial reportin�: Material weaknesses identified? no Reportable conditions identified not considered to be a material weakness? yes Noncompliance material to financial statements noted? no Federal Awards Internal Control over majar programs: Material weaknesses identified? no Reportable conditions identified not considered to be material weaknesses? yes Type of auditor's report issued on compliance for major prob ams: Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Section .510(a)? no Identification of major programs tested: CFDA Numbers Name of Federal Program or Cluster 10.557 WIC-Nutrition Pro�ram 20.500-20.507 1VIDOT—Capital and operatin�Assistance 84.010 Title lA 14.246 EDI Special Projects 84.027. 84.173 Special Education—Grants to States Dollar threshold used to distinguish between Type A and Type B programs: $645,104 Auditee qualified as low-risk auditee? yes 12 � CITY OF BANGOR,MAINE Schedule of Findings and Questioned Costs,Continued Section II- Findings Required to be Reported Under Government Auditing Stana(ards . REPORTABLE CONDITION #2005 - 1 - Sewer Svstem Controls (Reneated) Controls at the sewer utility are potentially weakened because of the utility's relationship with the Bangor Water District, which is a separate, non-City entity. The problem arises because the water and sewer utilities share many aspects of billing and collection. Specifically, sewer bills are based upon water usaae data, as provided by the water districts; water and sewer bills are rnailed together; sewer payments may be made at, among other places, the Water District; and the Water District's billing and payment software, which is incompatible with the City's general accounting software, is also employed by the sewer utility. As a result, a number of problems arise. First, where payments are made at the Water District, City funds remain outside the City control for the period of time between their receipt from customers and the forwarding of payment to the City. This, combined with the increased handling of the City assets introduces the potentia] for diversion of City property by non-City employees. Second,the flow of funds between the two utilities and their timing often results in the "float" of relatively]arge amounts due the City. Third,the incompatibility of systems between the sewer utility and the rest of City government makes timely tracking of sewer utility performance dif�cult. Further, it makes reconcilement increasingly important and time consuming. We recommend the City review its relationship with the water utility to correct these cash handling and accounting deficiencies. � • 13 � CITY OF SANGOR,MAINE � Schedule of Findings and Questioned Costs,Continued Section III-Findings and Questioned Costs For Federal Awards REPORTABLE CONDITION #2005 -2- Emnlovee Semi-annual Certification for Title lA and Snecial Education - Grants to States Our test work revealed that currently the School Department does not require semi-annual certifications of employees paid 100%through the Title lA and Special Education -Grants to States programs. The A-133 Compliance Supplement states that "An employee whose compensation is funded so.lely from a Single Cost Objective must furnish a semi-annual certification that he/she has been engaged solely in activities s«pported by the applicable source in accordance with OMB Circular A-87, Attachment B paragraph 11.h.3". We recommend that certificates be distributed semiannually and be signed by the employee or supervisory official having first hand knowledge of the work performed by the employee. 14 CITY OF BANGOR,MAINE Status of Prior Year Findings and Questioned Costs Section IV—Findings Required to be Reported Under Goverrtment Audi.ting Standards #2004- 1 -Sewer Svstem Controls � Controls at the sewer utility are potentially weakened because of the utility's relationsh:ip with the Bangor Water District, which is a separate, non-City entity. The problem arises because the water and sewer utilities share many aspects of billing and collection. Specifically, sewer bills are based upon water usage data, as provided by the water districts; water and sewer bills are mailed together; sewer payments may be made at, among other places,the Water District; and the Water District's billing and payment software, which is incompatible with the City's general accounting software, is also employed by the sewer utility. As a result, a number of problems arise. First, where payments are made at the Water District,City funds remain outside the City control for the period of time between their receipt from customers and the forwarding of payment to the City. Th:is, combined with the.i.ncreased handling of the City assets introduces the potential for diversion of City property by non-City employees. Second,the flow of funds between the two util.ities and their timi.ng often results in the "float"of relatively large amounts due the City. Third, the incompatibility of systems between the sewer utility and the rest of City government makes timely tracking of sewer utility performance difficult. Further,it makes reconcilement increasingly important and time consuming. We recommend the City review its relationship with the water utility to correct these cash haadling and accounting deficiencies. Status— See current year findings required to be reported under GovernmentAcuiiting Stundards#2005-1. l.5 , . CITY OF BANGOR,MAINE Status of Prior Year Findings and Questioned Costs Section IV-Findings and Questioned Costs for Federal Awards NONE 1 16 ' � �rT a�B,�� a,X , . . . . . . , „ Financial Overview Key Performance Indicators Presented by: General Fund Assets i RogerLebreux RUNYON KERSTEEN OUELLETTE Recently,the City of Bangor completed the 14,000 financial audit process.The School Department •. ;.`,,:��, is part of the City and has been included in the ,:;�.;��, City's financial statements. �,;, We are pleased to report that the City received 12,000 ,r:,," ..'. an unqualified opinion,which means the financial statements are fairly stated in ali material respects. 10,000 Further,the City reported no material weakness with its internal controls. The remainder of this publication is dedicated to 8,000 providing you with the financial results for fiscal year 2005. We hope you find this information useful and 6,000 � understandable. Finally,we wish to express our appreciation to all those who were so helpful to us during the 4,000 audit process. It truly is a pleasure working with �:� � your staff. 2,000 INStDE _ , _ . Cas�� Investmants fromother � . Assets receivable otherfunds gov't s 2. Liabililies and Fund 1-:yuity 3. Revenues Tahle o zooa a�a i2.es2 1,935 2,sso i.�2a 4. Expenditures Table ■2oos - 8,71s 2,o3s 2,553 3,977 5. Collcctions 6. Tax Rates 7. Fund Balance An�1y,i. SUMMARY OF SIGNIFICANT CHANGES 8. Unrestiicted Net Asset.-F.ntrrpri:� Funds 9. un��s��c�d rv�c A,��cs-s��.��:,�,d • Cash and investments decreased overall by approximately Airport and Comparative $4,625M. Collection Rates 10. Comparative Bud��rt R<�u��. •Outstanding taxes and liens increased slightly. I I. Revenues and Ex�nditurc,Charis 12. Debt Per Capita and Conclusion •Accounts receivable and due from other governments increased by approximately$163K. jzt�s� ov� -�� `1�ers�een � Duellette �'�tt,fBa�9or1 � �rr a�� a,� � � GENERAL FUND LIABILITIES SUMMARY OF SIGNIFICANT CHANGES 4,000 3,500 •The most significant liability, accrued wages, decreased by 3,000 approximately$184K in FY 05'. Accrued wages and benefits 2,500 represents payroll earned in June of 2005, but paid in July of 2005. 2,000 - • Deferred revenue represents taxes 1,500 still unpaid 60 days after the end of ,.�.`�' the year. These amounts are not t,000 _ ,�� recognized as revenues in the 500 I current year. The balance stayed consistent over last ear as did the Y _ _ the property tax collection rate. Accts Accrued Deferred Workers payable w ages revenue comp ins •Accounts payable decreased by approximately$708K. ■2004 1,478 3,584 1,850 608 ■2005 770 3,400 1,869 - •Workers comp liability is no longer accrued in the generai fund due to a change in accounting standards. GENERAL FUND EQUITY �,000 SUMMARY OF SIGNIFICANT s,000 CHANGES 5,000 • Reserve fund balance decreased 4,000 by$145K. Reserves include $1,433M for long-term advances to 3,000 other funds and $951 K for outstanding encumbrances. 2,000 � • City undesignated fund balance 1,000 increased by$230K. � Reserved Designated Qty �signated Undesignated • School fund balances increased by School Qty $72K on a GAAP basis. �2004 2,572 5,005 257 5,922 •A full detail of designated fund ■2005 2,427 4,195 329 6,152 balances can be found on page II-44 of the financial statements. fZ u n. an -�� 1Cers�een � D�,ellette �'�t�i ofBan9or,Z � �rT a�B� a� � � GENERAL FUND REVENUES II ii � , , i i i � Tc�xes 43,592,898 43,772,131 179,233 Licenses and permits 409,450 655,745 246,295 Iritergovernmerzt�il 20,492,527 21,560,713 1,068,186 Charges for services 10,932,360 11,435,333 502,973 Fees nnd firies 21,300 37,288 15,988 Investrrteyzt earni�lgs 59,000 79,014 20,014 Other 693,251 594,813 (98,438) Use of sirr��l�rs 2,411,607 1,047,652 (1,363,955) Totul revejuce 78,612,393 79,182,689 570,296 SUMMARY OF SIGNIFICANT CHANGES • Tax revenue exceeded the budget because excise tax collections were higher then anticipated. • Licenses and permits exceed the budget due to building permit revenues received for a few large projects. • Intergovernmental revenues exceeded the budget due to higher then expected general assistance and Medicaid receipts. • Charges for services exceeded budget due to higher then expected solid waste disposal fees, ambulance fees and outside assignments for the police department. • The variance in use of surplus is due to the budgeted use of undesignated fund balance of $1,240M and prior year school carryover amount, which is used for budgetary purposes but not reported as revenue. f2t�n oh ��•� `K-ers�een --�� D�,ellette-�� t�vfBa��yor3 Gl"7" a��,��-� a� � � GENERAL �UND EXPENDITURES II i i „ . i i i GPnernl ��overriment 4,035,015 4,047,665 (12,650) Pr�blic birildings & services 8,165,250 8,300,731 (135,481) He�tltll, tivel f'are, recreation 3,330,673 3,865,578 (534,905) P�tblic sn feh� 12,371,707 12,470,787 (99,080) Educati�yi 40,746,213 40,328,847 417,366 In,surcincP nncl fringe 1,732,465 1,692,014 40,451 Other crgencie,s 3,745,594 3,742,545 3,049 Debt service 1,708,669 1,606,202 102,467 TIF pc�ti�n�Pftts 355,309 350,898 4,4ll Oper�rtiit�� trnn,sfers 2,421,498 2,421,498 - 'I'otal expeitditr�res 7�,612,393 7�,826,765 (214,372) SUMMARY OF SIGNIFICANT CHANGES • Public buildings & services were over budget due to unexpected sanitation tipping fees. This was offset by additional revenues from 3�d party haulers. • Health and welfare was over budget due to an unexpected increase in need. This was offset by additional state revenues discussed on the previous page. • Education expenditures were under budget due lower then expected special education costs and health insurance premium increases, as well as not completing budgeted capital improvements. Jeun o�. -l�� `K-er5�een -� Duellette-�� '�t��f&a�r�or� � �rr a�8� a� � � PROPERTY TAX COLLECTION RATES _ _ 102.00°'0 100.00°o 98.00°0 96.00°0 — 94.00°0 92.00°b - — 90.00°-0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 ■All years 100.0840 100.03% 100.40% 100.37°0 99.13% 101.34% 101.64% 101.35% 100.13% 100.50% ■Current years 95.35% 94.98°�0 95.60% 95.70°�6 97.00°-0 96.90% 97.13°/o 97.46% 97.22% 9725% OBSERVATIONS • Tax collections of current taxes have remained relatively stable over the last five years. • In 9 of the last 10 years, total tax collections have exceeded the commitment. This means that collections of liens has been successful. Je�vc. on �..�- `1�ers�een -�� Ouellette-�� '-itt,afBa�r9vTf � �rry� a�B� a� � � PR�PERTY TAX RATES 2a.00 -- - ---- 23 50 I I 23.G0 � 22.SC I i 22.00 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 ❑ 23.15 22.90 23.35 23.80 23.70 23.45 23.75 23.60 23.35 22.05 OBSERVATIONS • Tax rates in Bangor have remained relatively stable over the past ten years. Jer�n o�. ��'�� `K-ers�een ��+� D�,ellette-�� '-itt�fBa��9ar6 Gl"T ' 4�'�,��;� a� � � FUND BALAMCE ANALYSIS 1996 - 2005 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 ❑Reserved 201 2,107 2,429 3,389 2,908 2,315 2,205 2,693 2,572 2,427 ❑Designated 4,025 2,129 2,659 3,535 3,789 5,152 6,121 5,683 5,262 4,524 ❑Undesignated 4,371 3,658 3,945 4,242 7,079 7,870 9,292 8,893 5,922 6,152 OBSERVATIONS • Bangor's Reserved fund balances and C)esignated fund balances changed significantly from 1996 to 1997 due to a reclassification of Due from Other Funds. A detail of designated balances can be found on page II-44 of the financial statements. • Undesignated fund balance remains reasonable at$6,152M in 2005. i�t��. o v�. -��T- `K,ers�eev� -�� Duellette-�` �'ttJ ofBa��9ar T � �rr a�B,�►-� a,� � � UNRESTRICTED NE�T ASSETS - ENTERPRISE FUNDS i,000 500 - _, (500) �I ; - (1,000) 'I (1,500) (2,000) (2,500) 2003 2004 2005 ❑ Park Woods (230) (262) (296) 0 Parking Fund (77) (97) (247) ■Bass Park (1,776) (1,886) (2,045) ❑Golf Course 571 632 709 ■ Economic Dev. (62) (244) (359) OBSERVATIONS • Of the seven enterprise funds operated by the City, Bass Park is the only fund that has a significant deficit. Addressing this shortfall has become a major thrust of the City's management. This chart includes the five smaller enterprise funds. The next chart includes the Sewer and Airport funds. �2t+ht o�. -�� `K�ers�een ��+� ONellette�� 'ztJ vfBa�9or� � �rT a�B� a,� � � UNRESTRICTED NET ASSETS SEWER AND AIRPORT FUNDS 25,000 20,000 15,000 10,000 6,000 �:�: 2003 2004 70U� �Sewer Fund 6,367 Fi,102 3,739 ■Airport 16,679 18,720 20,323 TAX COLLECTIONS COMPARED TO OTHER CITIES ,oo�io OBSERVATIONS 99% • Bangor's tax 98°�0 collection rate is consistent with g�o�o cities in Maine of similar size. 96% 95% 94% 93% 92% 1999 2000 2001 2002 2003 2004 2005 � Bangor 95.70% 97.00% 96.90% 97.13�0 97.46% 9722% 97.25% o Lew iston 94.47% 95.18% 95.55% 95.91 0 96.95% 97.64% 97.80% 0 Augusta 95.23% 95.35% 96.09% 96.43% 96.�4% 97.06% 97.55% � Portland 98.55°/ 98.53% 98.07% 98.86% 98.60% 98.60% 99.10% � Biddef ord 96.39% 97.28% 97.00% 97.47% 97.84% 95.26% 94.67% Ru v�ti o� 1Gers�een �� D�,ellette�� tt�,fBa�9or? Gl7" a�"8,��-�Y' 4� � � UNDESIGNATED FUND BALANCE AS A % OF BUDGET COMPARED TO OTHER CITIES 2o°io 15% 10% - - — ,:�: 5% �.s3°io �.3s°io 0% I ---- 2uo� 0 Bangor ■ Augusta ■ Portland 0 Biddeford ■ Lewiston DEBT SERVICE AS A % OF BUDGET COMPARED TO OTHER CITIES 14°/ 12°/ � • 10°/ 8°/ 6°/ 6.80% 4% 5.17% 20� 0% 2005 ❑ Bangor ■ Augusta ■ Portland ❑ Biddeford ■ Lewiston J�N�. an -�� n�� Ot�ellette �'�t�fBa�9or10 Gr7" a�8,��:� a�' � � 2005 REVENUES ANQ EXPENDITURES - GENERAL FUND REVENUES Investment earnings Other Fees and Fines � 10o�o 0.75% Use of Surplus Charges for 0.05%� 1.32% services 14.44°/a Taxes Intergovernmental 55.28% 27.23% ; Lic. & Permits 0.83% EXPENDITURES Education 51.16% Insurance and —J�` fringe - 2.15% Public Safety� �,� �,;�,�, i 15.82% h��°' ' ° — �er agencies x "�"; � �..>� . 4.75% Health,welfare & / Debt service recreation —� TlFpayments 2•04% 4.90% Public buildin�a & 0.45% services General Operating transfers 10.53% gavernment 3.07% 5.13% J�r�n on -�'—� `l�ers�een -�� D�,ellette-�� '�t��ofBan9or11 ! i ' � ' � . . . . . • �� ,�� • � � � � � � � � � �� •�� •• •�� •�• ��• �� • �� •�� e •.. .: ,,: .. ,.. �� - . �� . : . :. ._. ._. . ... ._ .. _. . .. FIN L WORDS This presentation is inten ed as a tool to assist the City Council and management in under tanding its financial operating results. The information contained in this publication should be read:�ip conjunction with the au 'ted financial staC�tnent�and related disclosures and s ould not be used for any other purposes without he expressed consent of RUNYON ERSTEEN OUELLETTE Please contact us a 207-773-2986 or 1-800-486-1784 20 Long Creek 've,South Portland,ME 04106 . l .