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2006 CITY OF 6A�NGOR, MAINE COMPREHENSIVE ANNVAL FII�ANCIAL REPORT FOR FISCAL YEAR JUNE 30, 2006 - � , Q:.� r. ��o�+� -_ _ � , 1F � � �� '' � . .. . ��' ,�� ,: :r4 � - t . _ � ,�, �„ . � � _r � . � '�� .{j i�. f. ir ��. � ��` �" � �� II �,��' -��' t�� `�� , ,�. �. , , �,I� � � �, � �� .�� ' �.-. ; - ,,` . � — .i < , i '.•-� .�, � ! � � t ". � � � ` � ''� �'�� _ � ; �f �'. F` , , �,_�_ � � �" ►r � � � � ��or 1n��at101�A 1 �� _: _.�� ,�-� �_ � a� �,. � _ , � i__�:�A� k�,�.,� !t � ! �� .� - � , � �� , �_. �.. F .__ - -- �� -,�`�.�j _ E � 1 �'� �, � i y� , j - �".>. �'.� � � - ^�Y� S � _ I►.. . I i. � � � �r _.'; . � R t • .. � � _ .. -. ..._........ .. 5,. � • t '�. S/ '! � .�_...`�'.!-... �r�.�... . . � _ '. l - � y r, 1 �,c � 4;� .. �-� � � *� . . . . t 't' h'� / . -�'.�y� ?�y�,._.,.,. �.. .:.-u„i� `a � ��5;. •• � � . _ .IY• f'�7 L� �y,�� . . Y. ` �1� ':`_ ____ . � � �."--.:.., ;i�_.- ��,>. " ' ��i1'tr ' � � aq � �1 �� ' � � ' .� �� v � � .� I �. ' , ' W� . � � � ,. 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Comprehensive Annual Financial Report � . � �;�: . � . ;.-,: �Y ,� : For'tliqe.Fiscal Year Ended �une 30, 2006 , � ,: �� •. .4 ; , .`��a. - _ .:�. . ,'"� _�>s• •,,,� , � �� ' L�� ' !�`� ��.�.. � .�. .�n`.'�� y�r . \ �',y�� )� �E_,�.R .s• ,f%�� . � . �; �� . A Y«, . . . ...1. .K1 .. R . . � . � � Prepared by: � � Debbie C�rr, Finance Director David Little, Tax Coliector/Deputy Treasurer . CITY OF BANGOR, MAINE � Comprehensive Annual Financial Report � � Table of Contents For the Fiscal Year Ended June 30, 2006 � INTRODUCTORY SECTION � � . � Paae � Letter of Transmittal . I - 1 GFOA Certificate of Achievement . I _ � Organizational Chart I _ $ Listing of Principal Executive Officers � I _ 9 FINANCIAL SECTION � � —_ . � � � Report of Independent Auditors \\ II - 1 Management's Discussion and Analysis � - II _ Z ; . Basic Financial Statements;�, � Exhibit i � Government-wide Financial Statements: Statement of Net Assets 1 II - 15 Statement of Activities 2 II - 16 4. .:;, Fund Financial Statements: Balance Sheet - Governmental Funds � 3 II - 17 � Statement of Revenues, Expenditures and Changes in;F�'� Fund Balances -`'Governmental Funds 4 II - 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Funcl,6alances of Governmental Funds to the Statement of Activities 5 II - 19 Statement of Revenues, Expenditures, and Changes in - Fund Balance - Budget and Actual -General_Fund 6 II - 20 Statement of Net Assets — Proprietary Funds 7 II - 21 Statement of Revenues, Expenses, and Changes in Net Assets— Proprietary Funds � 8 II - 23 Statement of Cash Flows — Proprietary Funds � 9 � II - 24 � Statement of Fiduciary Net Assets — Fiduciary Funds � ip II _ 26 Notes to the Financial Statements . . II _ 2� CITY OF BANGOR, MAINE Table of Contents, Continued Schedule Paae Combining and Individual Fund Statements and Schedules: Balance Sheet—General Fund . A- 1 II- 50 Schedule of Revenues, Expenditures and Changes in Undesignated Fund Balance — Budget and Actual— Budgetary Basis—General Fund A—2 II- 51 Combining Balance�Sheet— Nonmajor Governmental Funds B- 1 II- 55 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances— Nonmajor Governmental Funds B—2 II - 56 Combining Balance Sheet— Nonmajor Special Revenue Funds., B —3 II - 57 Combining Statement of Revenues, Expenditures, and � Changes in Fund Balances—,Nonmajor Special Revenue Funds �� B—4 II -58 Combining Balance Sheet—,Nonmajor Permanent Funds ' B— 5 II - 59 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances— Nonmajor Permanent Funds B—6 II- 60 Schedules of Revenues, Expenditures and Encumbrances — Budget � and Actual Budgetary Basis: Sewer Utility Enterprise Fund C- 1 II - 61 Airport Enterprise Fund C —2 II - 62 Park Woods Enterprise Fund - - ' C—3 II - 63 . Parking Ente�prise Fund C—4 II - 64 Bass Park Enterprise Fund ___ C—5 II - 65 Municipal Golf Course Enterprise Fund " C—6 II - 66 Economic Development Enterprise Fund . �� C—7 II —67 Fiduciary Funds: . Statement of Change in Assets and Liabilities —Agency Fund D - 1 II —68 Capital Assets Used in the Operation of Governmental Funds: Schedule of Changes by Function and Activity E - 1 II - 69 Other Information: Assessed Valuation, Commitment and Collections F- 1 II - 70 Undesignated Fund Balance Sufficiency Calculation F—2 II - 71 � � CITY OF BANGOR, MAINE . - Table of Contents, Continued STATISTICAL SECTION � Table Paae Financial Trends: Net Assets by Component . 1 III - 1 Changes in Net Assets 2 III -2 Governmental Activities Tax Revenues by Source 3 III -5 Fund Balances of Governmental Funds 4 III -6 Changes in Funds Balances of Governmental Funds 5 III -7 Assessed Value and Estimated Actual Value of Taxable Property � 6 III-8 Property Tax Rate- Direct and Overlapping Governments 7 III-9 Principal Property Taxpayers �- " \ 8 III - 10 Property Tax Levies and Collections= �� 9 III - il Debt Capacity: � \'� � Ratios of Outstanding Debt�by Type � 10 III- 12 Ratio of Net General Obligation Debt to Assessed Value and Net Obligation Debt Per Capita ' 11 III- 13 Computation of Direct and Overlapping Debt . 12 III- 14 Legal Debt Margin Information 13 � III- 15 Demographic and Economic Information: Demographic and Economic Statistics :- 14 III- 16 Principal Employers �� `� 15 III - 17 Full-time Equivalent City Government Employees by Function 16 III - 18 Operating Indicators by Function ' s,;� � 17 III - 19 Capital Asset Statistics by'�Function �>;%' 18 III - 20 , '�, , ,\ _ \ . , INTRODUCTORY SECTION City of B�� O� 207/992-4260 fax 207/945-4446 aine debbie.cyr@bgrme.org www.bangormaine.gov FINANCE DEPARTMENT Deborah A.Cyr, Finance Director December 18, 2006 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 ]une 30, 2006 is hereby submitted. 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 Ciry are protected from loss, theft, and misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles (GAAP). The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the costs of control should not exceed the benefits likely to be derived and that the valuation of costs and benefits requires estimates and judgments by � management. The City's financial statements have been audited by Runyon, Kersteen, Ouellette. The goal of the independent audit is to provide reasonable assurance that the financial statements are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor's unqualified opinion is presented as the first component of the financial section of this report. 73 Harlow Street . Bangor, Maine 04401 I - 1 The City is required to undergo an annual single audit in conformity with the � provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget's Circular A-133, Audits of States, Local Government and Non-Profit , Organizations. Information related to this single audit, including a schedule of expenditures of federal awards, findings, questioned costs, recommendations, Y 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. J The City operates under a Charter adopted in 1931 that provides for a Council- Manager form of government. The City Council is composed of nine members � who are elected at large for three-year staggered terms. The Charter grants to the Council all powers to enact, amend, or repeal rules, ordinances, and , resolutions relating to the City's property, affairs, and government; to preserve the public peace, 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 mana.gement 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 incYuding 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 City annually adopts budgets � for its general fund and seven enterprise funds. The City Charter requires that the Ciky Manager submit a recommended budget to the Council by the second Monday in April. The budget, which must be in balanee, contains estimates of all � non-tax revenues and receipts expected to be received during the next fiscal year, the expenditures necessary to support City operations, debt service requirements, and the tax levy required to achieve balance between revenues and expenditures. The Council may modify recommended expenditures and the recommended tax levy. If the Council fails to adopt a budget by July ist, the City Manager's proposed budget automatically becomes that fiscal year's budget. In either case, an appropriate 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 depar�ments require Council action. Special Revenue Funds do not have legally adopted budgets but have program budgets. Budgetary controls are maintained on other governmental funds through formal authorizations by the City Council and through grant agreements. All budgets are legally adopted by the City Council through the passage of an appropriation resolve. Factors Affecting Financial Condition Local economy. The City is the economic, educational, recreational, � distribution, and health care center for the central, eastern, and northern Maine regions. Bangor also serves as northern New England's economic link to the Canadian Maritimes and Eastern Quebec. The City is a major center for the I - 3 communication, banking, commercial, industrial, healthcare, and governmental sectors of the State. Bangor has a stable and varied economic base. Major employers include a diversified mix of health care, educational, professional, retail, manufacturing, . and governmental entities. Bangor's 2005 unemployment rate of 4.7% continues to be below both county and state rates of 5.1%, 4.8%, respectively. 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 approximately 74%. Further evidence of continuing sustained growth is the change in the City's assessed value of real and personal property, which from 1991 to 2000 averaged 2.47% and in the last 6 years has averaged 6.58% per annum. Tax base , growth, the City's focus on controlling budgetary growth, and ramped up state funding of education costs in accordance with State Statute has resulted in a ' reduction in the City's tax rate of 10.9% from 1997 to 2006. 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. Unreserved, undesignated fund balance irr the general fund as of )une 30, 2006 was 9.78% of the expenditures, net of debt service. By Charter the City is required to ' maintain a balance between 5% and 10%, the Council has determined that a reasonable target is 7.5%. 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 is nearing completion of the 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 " I - 4 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 , 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. 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 faciliry containing 475 .s1ot 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 �hat 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, 2005. This was the ninth consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efFiciently organized comprehensive annual I - 5 financial report. This report must satisfy both generally accepted accounting . principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA for consideration for another certificate. The preparation of this document would not have been possible without the hard , work of all of the City's employ�es. 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 . � � � �--�-e-- . Debbie Cyr � Finance Director . ( I - 6 Certificate of Achievement for Excellence in Financial Reporting Presentedto , City of Bangor Maine For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2005 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to govemment units and public employee retirement systems whose comprehensive annual financial reports(CAFRs) achieve the highest standards in government accounting and fmancial reporting. -�1GE OPp \��/�'' ""'— � � ,�sT � . � �SU7FS� � � � s President �,�sr�r.�a. anc.w ��i'%� ' �� i Executive Director � I � i , � . � � r � � ; CITY OF BANGOR ORGANIZATIONAL CHART Revised (11-04) • , � . CITIZEN CITY CITIZEN ��MIVIISSIONS COUNCIL BOARDS SOLICITOR ASSESSING CITY CLERK MANAGER ANIMAL ELECTIONS CONTROL � VOTER REGISTRATION FINANCE INFRASTRUCTURE AND GOVERNMENT COMMUNITY& BANGOR BASS DEVELOPMENT SUPPORT OPERATIONS ECONOMIC DEV. INTERNATIONAL PARK AIRPORT COMMUNITY CIVIC AUDITING CODE POLICE FIRE HEALTH DEVELOPMENT CENTER ENFORCEMENT AND DETECTIVE FIRE WELFARE ECONOMIC AUDITORIUM FIGHTING STATE TREASURY PLANNING GENERAL DEVELOPMENT PATROL FIRE RELIEF DOWNTOWN FAIR RISK ENGINEERING PREVENTION PROGRAMS MANAGEMEN ADMINISTRATION BUREAU NURSING SERVICES ppRKING SERVICES ADMINISTRATION MANAGEMENT INFORMATION PUBLIC WORKS DENTAL SERVICES ADMINISTRATIVE CLINIC PARKS AND SERVICES RECREATION PURCHASING HARBOR HUMAN GRANT PARKS RESOURCES PROGRAMS MAINTENANCE WASTEWATER LABOR TREATMENT RECREATION RELATIONS GOLF MAINTENANCE COURSE COMMUNITY CONNECTOR FLEET MAINTENANCE CENTRAL SERVICES City of Bangor, Maine � Elected Officials and Principal Administrative Officers 7une 30, 2006 . CitYCouncil . . John H. Cashwell, Mayor . Anne E. Allen Peter R. D'Errico � . Frank J. Farrington 6eoffrey M. Gratwick Richard D. Greene �Susan M. Hawes � Gerry G.M. Palmer Richard I. Stone City Staff . Edward A. Barrett, City Manager � Benjamin F. Birch, City Assessor � � Patti Dubois, City Clerk Norman Heitmann, City Solictor School Committee ' Martha G. Newman, Chair Susan A. Carlisle James Cox Phyllis S. Guerette Phyllis M. Shubert, Vice Chair Christine Szal Ellen Tobin School Staff . Robert Ervin, Superintendent of Schools I - 9 FINANCIAL SECTION �v. RVf YVNOYI� tw�� . �Gersteevc �- otil��e�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 and for the year ended June 30,2006,which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Bangor, Maine's management. Our responsibility is to express opinions on these financia] 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 Gover�anient 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 res�ctive financial posirion of the governmental activities,business-type acrivities,each major fund,and the aggregate remaining fund information of the City of Bangor,Maine,as of June 30,2006, and respective changes in ftnancial positson and cash flows,where applicable,thereof and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. � In accordance with Government Auditing Sta�zdards,we have also issued our report dated October 6, . 2006,on ow consideration of the City of Bangor,Maine's internal control over financial reporting and our tests of its compliance with certain provisions of iaws,regulations,contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the intemal 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 assessing the results of our audit. The Management's Discussion and Analysis,as listed in the table of contents,is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures,whiah consisted principally of inquiries of management regarding the methods of ineasurement and presentation of the required supplementary information. However,we did not audit the information and express no opinion on it. City Council Page 2 . Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise fhe City of Bangor,Maine's basic financial statements. The introductory section,combining and individual nonmajor fund financial statements and schedules,and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor 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 and statistical sections 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. � - October 6,2006 South Portland,Maine MANAGEMENT'S DISCUSSION AND ANALYSIS Management of the City of Bangor offers this narrative overview and analysis of the � financial activities of the City of Bangor for the fiscal year ended June 30, 2006. In addition to comparative information from the government-wide statements, comparative data is presented on key information from 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 $20.3 million, a decrease of $1.0 million in comparison with the prior year. The decrease in fund balance is due to a reduction in unexpended bonds proceeds available within the Capital Projects Fund. Approximately 70% of the total amount, or $14.3 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% to 10% of current expenditures less debt service. At the end of the current fiscal year, unreserved undesignated fund balance for the general fund was $7.4 million, or 9.8% of the general fund expenditure base. The annual calculation is included within the financial statements as Schedule F-2. . The total liabilities of the City's governmental and enterprise funds decreased by $2.3 million (15.6%) and $2.9 million (5.3%), respectively. The change in �governmental fund liabilities is due to a decrease in interfund loans payable of $2.2 million, which reflects a timing issue associated with a decrease in intergovernmental receivables. The decrease in enterprise fund liabilities is due to principal repayments � exceeding new debt issued by $1.0 million and a decrease of$2.0 million in accounts payable due to the timing of invoices received in the prior year. 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 City from the point of view of economic resources measurement and using the accrual basis of accounting, which is similar to that used by private-sector companies. These statements present governmental activities and business type activities separately. � II - 2 i I 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-15 to II-16 of this report. Fund �nancial 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 ten 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, racino fund, and capital projects fund, all of which are considered to be major funds. Data from the � other six governmental funds are combined into a single aggregated presentation. II - 3 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 �nancial 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-27 . through II-49 of this report. II -4 Government-wide Financial Analysis The following is a condensed version of the Statement of Net Assets. Governmental Business-type Activities Activities Total 2006 2005 2006 2005 2006 2005 Current&other assets 32,384,087 33,494,057 27,683,760 33,140,730 60,067,847 66,634,787 Capital assets, net 71,620,583 67,242,532 192,561,963 191,578,046 264,182,546 258,820,578 Totalassets 104,004,670 100,736,589 220,245,723 224,718,776 324,250,393 325,455,365 Long-term debt outstanding 64,772,239 63,316,604 46,788,985 47,682,467 111,561,224 110,999,071 Other liabilities 11,051,573 10,923,005 2,389,888 4,359,887 13,441,461 15,282,892 Total liabilities 75,823,812 74,239,609 49,178,873 52,042,354 125,002,685 126,281,963 Net assets: Invested in: Capital assets, net of related debt 44,381,677 41,904,750 153,375,606 150,851,663 197,757,283 192,756,413 � Restricted * 1,002,525 1,015,918 - - 1,002,525 1,015,918 Unrestricted * (17,203,344) (16,423,688) 17,691,244 21,824,759 487,900 5,401,071 Total net assets 28,180,858 26,496,980 171,066,850 172,676,422 199,247,708 199,173,402 *Certain amounts in 2005 have been reclassed to conform with 2006 presentation By far the largest portion of the City's net assets (99% or $197J million) reflects its investment in capital assets (i.e. land, buildings, machinery and equipment) less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens. Consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to satisfy these liabilities. Restricted net assets are those resources that are subject to external restrictions on how they may be used. While the remaining balance of unrestricted net assets is approximately $500 thousand, the governmental activity portion shows a deficit of $17.2 million. This is primarily due to $27.7 million in outstanding pension obligation bonds. 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 with the exception of the unrestricted governmental activities net assets. The same situation held true for the prior fiscal year. While total net assets remain relatively unchanged, there was a reversal of balances - between governmental and business-type activities. The decrease in business type activities is directly related to the cyclical nature of capital grants received while the increase in governmental activities is due to actual revenue outpacing estimates specifically in the areas of excise tax, state revenue sharing, and ambulance fees, combined with the introduction of the new racino fund. II - 5 Changes in Net Assets The following is a condensed version of the Statement of Activities. (*Certain amounts within 2005 have been reclassed to conform with 2006 presentation) Governmental Business-type Activities Activities Total 2006 2005* 2006 2005 2006 2005 Revenues Program Revenues Charges for services 15,607,246 13,444,768 21,989,212 21,011,412 37,596,458 34,456,180 Operating grants&contributions 29,577,430 25,899,908 - - 29,577,430 25,899,908 Capitalgrants'&contributions 3,788,485 4,117,072 2,581,874 7,749,367 6,370,359 11,866,439 General Revenues Property and other taxes 45,855,053 45;113,317 - - 45,855,053 45,113,317 Grants and contributions not Restricted to specific programs 4,773,082 4,487,931 - - 4,773,082 4,487,931 Other 731,967 999,634 635,454 895,064 1,367,421 1,894,698 TotalRevenues 100,333,263 94,062,630 25,206,540 29,655,843 125,539,803123,718,473 Expenses , General government 6,947,106 6,435,386 - - 6,947,106 6,435,386 Public safety 12,890,750 12,586,696 - - 12,890,750 12,586,696 Health, welfare and recreation 7,301,546 6,578,783 - � - 7,301,546 6,578,783 Public buildings and services 8,256,266 7,638,558 - - 8,256,266 7,638,558 Otheragencies � 3,610,935 3,514,658 - - 3,610,935 3,514,658 Education 45,522,795 43,065,873 - -. 45,522,795 43,065,873 Unclassified 947,025 190,840 - - 947,025 190,840 Community development 2,419,594 2,107,037 - - 2,419,594 2,107,037 Streets/sidewalks 2,911,131 - - - 2,911,131 - WaterFront 990,961 1,041,239 - - 990,961 1,041,239 Public transportation 1,798,968 1,391,962 - - 1,798,968 1,391,962 Interest on debt 3,098,248 3,166,250 - - 3,098,248 3,166,250 Tax increment financing 1,092,770 1,212,951 - - 1,092,770 1,212,951 Sewer Utility - - 5,818,127 5,859,588 5,818,127 5,859,588 Airport - - 16,947,056 16,368,681 16,947,056 16,368,681 Park Woods - - 540,207 598,854 540,207 598,854 Parking - - 1,322,138 1,425,508 1,322,138 1,425,508 Bass Park - - 1,918,111 1,889,215 1,918,111 1,889,215 Municipal Golf Course - - 647,499 592,323 647,499 592,323 Economic Development - - 484,264 397,881 484,264 397,881 Total Expenses 97 788,095 88,930,233 27,677,402 27,132,050 125,465,497116,062,283 Excess(deficiency) before transfers 2,545,168 5,219,103 (2,470,862) 2,523,793 74,306 7,742,896 Transfers (861,290) (837,806) 861,290 837,806 - - Change in net assets 1,683,878 4,381,297 (1,609,572) 3,361,599 74,306 7,742,896 II - 6 Governmental Activities The cost of all governmental activities was $97.8 million. As shown on the Statement of Activities, the total amount financed by the City's property taxpayers was $40.7, million or 41.6%. Those who directly benefit an activity provided $15.6 million in payments. Other governments and organizations subsidized certain activities with operating grants and contributions in the amount of $29.6 million. Capital grants and contributions accounted for $3.8 million. The City also received $10.7 million in other general revenues such as State Revenue Sharing, motor vehicle and boat excise taxes, homestead exemptions, and interest earnings. Expenses and Program Revenues- Governmental Activities 50 45 . 40 � 35 ; 0 30 ; = 25 � .� 20 c v 15 10 i I I I 5 � 0 � I , , �_� O Expenses �c�.��,� \`��`o� `�h�o��\�a�Q �,�y`ocw�o�� ,ow ■Revenues �F � �i ��a �c J� �y�, �� ,c �� O �o��J`o��y��c.�c�.�,``a Jc� c0 �a oy�. �y o � Q `co, ��'or �occ ,�<° cw�c �c�� J�a 2�a 'o�� ~ � � � � Q�\`a, �� Total governmental activities expenses increased 10% over the prior year. The largest single increase was in streets/sidewalks, which reflects the expensing of a number of - projects work completed with local and state funding. In addition, Education expenses increased by $2.5 million, or 5.8%, which can be attributed to increased wage, health insurance, and utility costs. Other governmental functions experienced a 2% cost of living wage adjustment, a 12% increase in health insurance premiums, and an 18% increase in utility costs (fuel oil, vehicle fuel, electricity). II - 7 Revenues by Source- Governmental Activities ,�% 5% 1% _ 15o�a ■Charges for Services � - - � ■Operating Grants& i Contributions � i..�� ❑Capital Grants&Contributions �. r ❑Property Taxes 40� 30% �Other General i ❑Unrestricted Grants& �a�o Contributions ■Other Unrestricted Total governmental activities revenues increased 6.7%. While the largest single source of revenue continues to be the property tax, it has decreased from 43% of total revenue in 2005 to 40% in 2006. Revenue resulting from services provided increases in two specific areas, ambulance fees and the newly created racino fund. However, the largest area of revenue growth is within the intergovernmental category. In 2006, the City received an additional $2 million in funding from the State as a result of the implementation of the Essential Program and Services Model for educational funding. The City was also the recipient of nearly $1 million in additional grant funds in support of health & welfare and public transportation related functions. Business-type Activities Total expenses of business-rype activities were virtually unchanged from the prior year, increasing a modest .2%, while absorbing expenditure increases similar to those seen in governmental activities. This smaller increase reflects the less labor intensive nature of these functions. Total net assets decreased by $1.6 million. Expenses and Program Revenues - Business-type Activities is _ _ _ _ _ _ _ _ 16 14 �, 12 c � 10 i Expenses � 8 � ■Revenues �- 6 4 • 2 , 0 '�`� c�� Qa� `c� a� �5� c�, J P.� y� Qa� �Q �oJ oQ� �� Q�� ,� O �� co �,o � II - 8 Revenues by Source - Business-type Activities Trensfers Capital Grants and 30�o Unrestricted Contributions Investment Earnings 10% 2% ■Charges for Services Charges for Services ■Capital Grants and 850�o Contributions ❑Transfers ❑Unrestricted Investment Earnings The revenues of total business-type activities decreased by $4.4 million. This decrease is attributable to an anticipated decrease in capital grants, and a reduction in the market vafue of investments. The source of funding for 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 through local sources such as passenger facility charges previously collected by the Airport. Financial Analysis of the Government's Funds Governmental funds. The focus of the Ciry'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 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 $20.3 million, a reduction over the prior year's balance of $21.3 million. Approximately 70% of this total ($14.3 million) constitutes unreserved fund balance that is available for spending at the City's discretion. The remainder is reserved, indicating that it is not available for new spending because it has already been committed for various purposes including liquidating prior period contracts and purchase orders ($3.9 million), reserving for potential non-repayment of interfund balances ($1.4 million), or set aside for a variety of other restricted purposes ($.7 million). The general fund is the chief operating fund of the City and is comprised of two major functions, education and municipal services. At the end of the fiscal year, the total unreserved fund balance of the general fund was $10.8 million ($3.4 million of which has been designated by management for subsequent years' expenditures). The general II - 9 fund's total fund balance was $13.0 million, a reduction from the prior year's balance of $13.1 million. By statute, the amount of education related fur�d balances are limited and must be segregated from municipal balances. In addition, the City is prohibited from transferring funds from the education function to municipal functions. While the general fund's total fund balance decreased $:1 million from the prior year, the education related balance decreased by $1.0 million, while the municipal portion increased by $.9 million. Over the last few years, the City has consistently held funds in excess of its 7.5% target. In order to bring our undesignated fund balance into a more acceptable range, the City appropriated $1.0 million during fiscal year 2007 to fund further environmental assessment of the Penobscot River and associated legal costs. Proprietary funds. Information on the City of Bangor's proprietary funds is similar to that found in the government-wide financial statements, but in more detail. The unrestricted net assets of the seven enterprise funds decreased $1.6 million to a total of $171.1 million, including a net asset deficit of $1.5 million in the Bass Park Fund and $200 thousand in the Parking Fund. The Airport Fund shows a significant decrease in net assets for 2006, wholly attributable to a decrease in capital grant funds. While Sewer and Bass Park operations experienced an increase in net assets of $360 and $31 thousand respectively, all other operations resulted in small deceases ranging from $26 to $69 thousand. General Fund Budgetary Highlights ' Differences between the original budget and the final amended budget were minimal. The City's commitment to budgetary integrity continue with actual revenues exceeding budgeted amounts by 2.9% or $2.3 million, while municipal expenditures were over budget by .1% or $600 thousand. The majority of our over expenditures were offset by additional revenues, specifically in the areas of general assista�nce and sanitation. Capital Asset and Debt Administration Capital assets. As of ]une 30, 2006, the City of Bangor's investment in capital assets for its governmental and business-type activities.amounted to $264.2 million (net of accumulated depreciation), an increase of $5.4 million over the prior year. This investm�ent 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 2.1% with a 6.5% increase for governmental activities and a .5% increase for business-type activities. Major capital asset events during the current fiscal year included the following; � • A $1.0 million investment in infrastructure on the City's waterfront • Initial construction of a new police station in the amount of$4.8 million • Replacing municipal vehicles at a cost of $1.5 million, including a public transit bus and an emergency command vehicle, whose costs were partially ofFset by $550 thousand in grant funds . II - 10 • Upgrading the City's BAT Community Connector (public transit) Storage facility in the amount of$400 thousand • Continuing the City's aggressive combined sewer overtlow control program in the amount of $1.5 million . Investing $3.2 million in operational assets at Bangor International Airport, including the upgrade and acquisition of property, constructing a deicing fluid collection system, and preliminary costs associated with a planned parking garage and snow removal equipment building. Capital Assets (net of depreciation) Governmental Business-type Activities Activities Land and improvements 9,643,191 4,783,418 Buildings and improvements 32,422,965 17,615,401 Machinery and equipment 3,950,581 2,142,948 Vehicles 5,639,808 _ Infrastructure 6,952,607 41,905,461 Parking structures - 3,871,940 Aircraft operational assets - 116,734,660 Construction in process 13,011,431 5,508,135 Tota l 71,620,583 192,561,963 Additional information on the City's capital assets can be found in Note C, Detailed Notes on all funds, of this report. Debt Administration At fiscal year end, the City had a total outstanding bonded debt of $106.8 million, an increase of $.6 million during the year. This increase is temporary in nature since $1.3 million of debt was issued in June 2006 in order to call $1.2 million of outstanding 1995 and 1996 bonds with principal payments due in September 2006. II - 11 Bonded Debt Outstanding (in millions) $45.8 �Governmental Activities ■Business-type Activities $61.0 The City's general obligation debt maintained a "AA-" rating from Standard & Poor's and a "Aa3" rating from Moody's. 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 $309.5 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 2005 is 4.7% and continues to compare favorably to the State's rate of 4.8%. • The City's share of retail sales remains in excess of 9% of total statewide sales and has grown to 74% of county sales while Bangor represents less than 3% of the state's population. • The increased in residential construction that the City began to experience in 2002 has persisted. Developers continue to construct new housing and develop new residential subdivisions without a need for the City to significantly improve infrastructure to accommodate this growth. Bangor is the only municipality in Maine that has met the requirements of state law that allow for the operation of slot machines at commercial harmess racing tracks. As a result, we now host Penn National Gaming which opened a "racino" at an interim location in the City in November 2005. Penn National plans to begin construction of its permanent facility in the spring of 2007. The location of such a facility in Bangor is seen as a potential means to provide income streams that can fund public projects that either should not or can not be borne by our taxpayers alone. The rents and state taxes received from the operation of the slot facility have been placed into a newly created Racino Fund. The primary purpose of this fund is to provide the necessary resources to construct a new arena in Bangor to replace the Bangor Auditorium which opened in Bass Park in 1954. In April 2006, The City received approval from the the Maine Department of Economic and Community Development for the creation of a Downtown Development Municipal Tax Increment Financing (TIF) District, encompassing our downtown area including the . waterfront. This district will enable the City to capture new real estate and personal II - 12 property taxes generated from development within the district and use the funds for a number of infrastructure projects within its boundaries, such as repairing and constructing, parking structures, investing in sidewalks and streetscape improvements, and recreational amenities. Beginning with fiscal year 2006, the City became subject to state statutory system (known as LD 1) that is designed to limit the increase in that portion of the tax levy that supports municipal functions. Generally the growth of the tax levy is limited to increases equal to the ten year percentage change in real statewide personal incomes plus taxes from property value resulting from new construction, major renovations to existing properties, or the subdivision of property. In addition, any ��net new state funding," defined as percentage increases in state support programs to municipalities in excess of the LD 1 limit, must be deducted from the allowable tax levy increase. LD 1 also increased the State's share of local education costs through the "Essential Programs and Services"funding model as a mechanism for controlling local school expenditures. The implementation of LD 1 complemented a number of the City's long-standing objectives, including controlling the rate of increase in property taxes and achieving proportionately greater State funding for the Bangor School Department. For Fiscal Year 2006, the City Council voted to increase the City's LD 1 property tax levy limit in order to recognize a significant increase in State reimbursement for the General Assistance program. Since State 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 control, management considers this levy limit increase to be a technical modification to the LD 1 requirements. In 2006, the State Legislature addressed this concern by exempting General Assistance reimbursements from the "net new state funding" deduction required by LD 1. As a result of these actions, the City's actions adopted municipal budget met the requirements of LD 1. For Fiscal Year 2007 and as required by LD 1, the City Council voted to increase the City's properly tax levy limit to recognize a "net new state funding" increase in Local Road Assistance. The City earmarks these state provided funds for its annual road paving capital program and not for day to day operations. Prior to July 1, 2006, the State legislature amended LD 1 to eliminate the local road assistance from the '�net new state funding" limitation; however, that amendment did not become efFective until after July 1, the date by which the City must adopt a budget for the year. The Council's vote to increase the tax levy limit insured that the City complied, both technically and in spirit, with the requirements of LD 1. LD 1 also implemented the Essential Programs 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 establishes a schedule designed to increase the State's share of total Essential Programs and Services costs to 55% over a four year period. Due to this change the City received approximately $2 million more in State School Aid for the fiscal year ending June 30, 2006. While the State's model recognizes what it considers to be 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 model. As a II - 13 result, both the School Committee and the City Council voted to increase the educational spending limits imposed by LD 1 in order to appropriately fund such services and programs for both Fiscal Year 2006 and 2007. Management continues to track other areas of revenue and expenditure concern. On the revenue side, we are focusing on flat rates of return on investments and the ability of automobile excise tax to keep pace with its recent trend of 4.5% average annual increases. As to expenses, insurance costs� have proven volatile. We anticipate returning to near double-digit cost increases for employee health insurance and somewhat lower increases for commercial liability insurance. We are also concerned about higher energy costs and are implementing a series of short and long term efforts to reduce the City's energy use. Finally, the City will be faced with increased debt , service in coming years due to the construction of a new police station. In the near term, we anticipate limiting the issuance of general obligation bonds for other projects in order to minimize the impact of debt service payments on our taxpayers. User fees for both governmental and business-type activities are reviewed on an annual basis to ensure that fee structures are sufficient to cover the cost of providing such services. Many fees are adjusted annually for inflation. In addition a 5% increase in sewer fees was enacted effective July 1, 2006. This is the first sewer fee increase since March 1996. 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 - 14 This page left intentionally blank II - 15 � BASIC FINANCIAL STATEMENTS � � . . . . - ::,; � _� � �� _ ��_ � . �� . . j - ` � �- ;.�� - , , .. � � , � , , � , . i . � � � ; : _ . �- _ � �.� . - � � 1 .,:-., �� .. . _ . . �„�,�,z , ` ' �-' ` ,✓f" . �i�� :; �� ' �� . ` j�� . - �( ` � . � i ;.� . . • e•' ,. �� _ �.�� y'`d'Y��.., ,..,,_ _�f ' • ,5��. � �Y��a,. � Y ��Y i #F .. ��£ I � ',ss ., . . � . , 4 Exhibit 1 - CITY OF BANGOR,MAINE Statement of Net Assets ' June 30,2006 �_ � ��4 � i Governmental Business-type ' Activities Activities Total ASSETS . � �� Cash and cash equivalents $ 864,471 $ � 63,893 $ 928,364 -� Investments 11,039,263 20,905,255 31,944,518, �� Receivables: � -` Accounts(net of allowance of $267,648 and$200,996,respectively) 855,256 4,302,092 5,157,348 3?� Intergovernmental 3,244,093 820,605 4,064,698 �� Taxes and liens receivable -prior years 920,285 - 920,285 �� i . Taxes receivable-current year 750,838 - 750,838 Deferred special assessments 30,130 88,700 118,830 Due from water district - 189,391 189,391 � Loans 7,744,229 2,207,984 9,952,213 � Intemal balances 1,935,255 (1,935,255) - Inventories 637,133 126,185 763,318 �� Prepaid items 37,757 102,995 140,752 ' �.. Other assets 4,325,377 811,915 5,137,292 Non-depreciable capital assets 18,051,979 9,135,937 27,187,916 � � Depreciable capital assets,net 53,568,604 183,426,026 236,994,630 '. Total assets 104,004,670 220,245,723 324,250,393 LIABILITIES � �, ;r-�: Accounts payable and other current liabilities 3,U79,420 1,999,897 5,079,317 Accrued payroll 3,594,767 281,471 3,876,238 I Unearned revenues 4,377,386 108,520 4,485,906 � � Noncurrent liabilities Due within one year 6,219,214 4,398,972 10,618,186 � Due in more than one year 58,553,025 42,390,013 100,943,038 T'otalliabilities 75,823,812 49,178,873 125,002,685 � � NET ASSETS ' � Invested in capital assets,net of related debt 44,381,677 153;375,606 197,757,283 __ Restricted for: f^ Nonexpendable trust principal 1,002,525 - 1,002,525 Unrestricted (17,203,344) 17,691,244 487,900 -- Total net assets $ 28,180,858. $ 171,066,850 $ 199,247,708 I. � See accompanying notes to financial statements. � II- l5 , - ~._' - ' -_ .. ��,_ � _ ;� ._. 't .�- .. ' / --- - � �. �f ' 4 _ Exhibit 2 C1TY OF BANGOR,MAINE � Statement of Activitles For the Fiscal Year Ended June 3Q 2006 Net(espeose)revenue and changes Program Revenues in net assets Operating Capital Primary Government Charges Cor grants and grants and Governmental Business-type Functions/programs Expenses services contributions con[ributions activities activities Total Primary govemment Governmental activities: Generalgovemment $ 6,947,I06 $ 1,672,854 S 27,387 $ 32,500 $ (5,214,365) $ - $ (5,2I4,365) Publicsafety 12,890,750 2,47(,220 70,605 1,252,595 (9,096,330) - (9,096,330) Health,welfare and recreadon 7,30I,546 756,207 4,645,985 - (1,899,354) - (I,899,354) Public buildings and urvices 8,256,266 4,076,981 18.779 - (4,160,506) - (4,160,506) Otha agencies 3,610,935 - - - (3,610,935) - (3,610,935) Fducation 45,522,795 � 4,561,352 21,616,639 - I85,190 (19,I59,614) - (19,I59,6I4) ' Unclassified 947,025 859,682 - - (87,343) - (87,343) Community development 2,419,594 672,459 2,090,316 - 343,l81 - 343,181 StreeWSidewalks 2,911,131 - - I,OI1,547 (I,899,584) - (1,899,584) Waterfront 990,961 - - 1,096,302 t05,341 - 105,341 Publictransportatiou 1,798,968 536,491 1,107,719 210,351 55,593 - 55,593 Tax inaement fmancing 1,092,770 - - - � (1.092,770) - Q,092,770) � Interest on debt 3 098 248 (3,098,248) (3,098,248) Total governmental activities 97 788 095 I S 607 246 29 577 430 3 788,485 (48,814,934) (48,814,934) Business-rype activities: SewerUtiliry 5,818,127 6,206,605 - - - 388,478 388,478 Airport 16,947,056 12,074,504 - 2,581,874 - (2,290,678) (2,290,678) Park Woods 540,207 287,452 - - - (252,755) (252,755) Pazking 1,322,138 963,697 - - - (358,441) (358,441) BassPark I,918,Ill t,460,931 - - - (457,180) (457,180) � MunicipalGolfCourse 647,499 604,365 - - - (43,134) (43,134) Econorttio Develo ment 484,264 391,658 - 92,606 92 606 Totalbusiness-typeactivities 2 677402 2I989212 2,581,874 - (3,106,316) (3,106,316) Total primary government $ 125,465,497 $ 37,596,458 $ 29,577,430 $ 6,370,359 (48,814,934) (3,106,316) (51,921,250) Generalrevenues: Property taxes,levied for general purposes 40,666,758 - 40,666,758 Payment in lieu of taxes 160,457 - 160,457 Excise ta�ces 4,752,852 - 4,752,852 Frane6isetaxes 274,986 - 274,986 Grants and contributions not restricted to specific programs: Homestead exemption 678,789 - 678,789 Other SUte aid 24,478 - 24,478 State Revenue Sharing 4,069,815 - 4,069.815 Unrestricted investment eaznings 699,417 635,454 t,334,871 Miscellaneous revenues 32,550 - 32,550 Transfers (86I,290) 861,290 � Total general revenues and aansfers 50,498,812 1,496,744 51,995,556 Changein netasseu I,683,878 (1,609,572) 74,306 Netassets beginning ofyear 26,496,980 172,676,422 199,173,402 Net assets,end of year S 28,18Q858 $ 171,066,850 5 199,2d7,708 - See accompanying notes!o f+nunciaf stuaeinents. II-l6 , � Exhibit 3 CITY OF BANGOR,MAINE Balance Sheet i Governmental Funds June30,2006 Community Capital Other Total � � Development Racino Projects Governmental Governmental ' General Block Grant Fund Fund Funds Funds �� ASSETS Assets , _ Cash $ 322,587 $ - $ 250,543 $ 163,894 $ 127,447 $ 864,47I Investments ]0,655,899 - - - 383,364 11,039,263 � Receivables: Taxes 1,671,122 - - - - 1,671,122 Accounts(net of allowance of$267,648) 855,256 - - - - 855,256 - Interfiind 2,264,233 - 149,808 - 144,090 2,558,131 ` Intergovernmental 1,478,059 341,583 106,302 1,048,851 269,298 3,244,093 Loans 1,173,291 3,997,562 - - 2,573,376 7,744,229 Deferred special assessments - - - 30,130 - 30,130 Inventory,at cost 637,133 - - - - 637,133 ' Investment of unexpended bond proceeds - - - 4,325,377 - 4,325,377 ' Prepaid items 36,299 1,458 - - - 37,757 Total assets $ 19,093,879 $ 4,340,603 S 506,653 $ 5,568,252 $ 3,497,575 $ 33,006,962 LIABILITIES AND FUND BALANCES Liabilities ` Accounu payable $ 863,973 $ I]0,069 $ - $ 1,482,353 $ 66,244 $ 2,522,639 � Accrued wages and benefits payable 3,594,767 - - - - 3,594,767 Interfund loans payable - 149,808 - - 473,068 622,876 � Unearned revenues 1,617,881 3,997,562 - - 296,120 5,91],563 ' Due to rehabilitation recipients - 13,605 - - - 13,605 ,�, Totalliabilities 6,076,621 4,271,044 - 1,482,353 835,432 12,665,450 Fund balances i Reserved for: Encumbrances 719,831 19,273 - 3,160,265 628 3,899,997 Prepaid items 36,299 - - - - 36,299 � Advances to other funds 1,432,689 - - - - 1,432,689 ` Nonexpendable trust principal - - - - 652,303 652,303 , Unreserved: Designated(Note n 3,43Q033 - - - - 3,430,033 Undesignated,reported in: i � Genenl fund 7,398,406 - - - - 7,398,406 Special revenue funds - 50,286 506,653 - 1,658,990 2,215,929 .. Capital pmjects funds - - - 925,634 - 925,634 , Permanent funds - - - - 350,222 350,222 '� Total fund balances 13,017,258 69,559 506,653 4,085,899 2,662,143 20,341,512 Total liabilities and fund balances $ 19,093,879 $ 4,340,603 $ 506,653 $ 5,568,252 $ 3,497,575 ,� Amounts reported for governmental acNviries in the statement of net assets are dif]'erent because: Capital assets used in governmental acrivities are not financial resources and,therefore,are not ` reported in the funds. 71,620,583 , � Other long-term assets are not available to pay for current-period expenditure and,therefore, � are deferred in the funds. 1,534,177 Long-term liabilities,including bonds payable,are not due and payable in the current period ; and,therefore,are not reported in the funds (65,3]5,414) , Net assets of govemmental funds $ 28,180,858 , See accompanying notes�o f nancial stalements. II-17 � Exhibit 4 � CITY OF BANGOR,MAINE � Statement of Revenues,Expendltures and Changes in Fund Balances Governmental Funds � Far the Fiscal Year Ended June 30,2006 Community . Capital Other Total Development Racina Projects Governmental Covernmental General Block Grant Fund Fund Funds Funds Rcvenues � � Taxes $. 44,790,189 $ - $ - S - $ 1,064,448 $ 45,854,637 Intergovemmental 27,995,989 2,b90,316 - 3,364,169 4,264,208 37,714,682 Licenses and permits 538,534 - - - - 538,534 � Charges for services 12,367,709 - - - 560,280 ' 12,927,989 Program income - 343,496 - - 319,773 663,269 .,� Revenue from use of money and property 1,288,744 19,688 829,288 142,403 69,689 2,349,812 Other 36,I95• 9,190 424,316 56,659 526,360 `� Total revenues 87,017,360 2,462,690 ' 829,288 3,93Q888 6,335,057 100,575,283 i i , Expenditures Current: General govcmment 4,642,935 - - - - 4,642,935 Public safety 12,852,119 - - - - I2,852,119 Health,welfare and recreation 4,084,948 - - - 4,084,948 - Public buildings and services 8,991,673 - - - - 8,991,673 Other agencies 3,838,458 ' - - - - 3,838,458 U Education 46,49d,735 - - - - 46,491,735 Unclassified 126,875 - 141,807 - - 268,682 � Restricted grants - 2,306,383 - - 6,041,950 8,348,333 Capital outlay 43Q551 - - 11,332,281 - 11,762,832 � Debt service 3,846,364 3,846,364 � � Total exDendimres 85 305 658 2 306 383 141,807 11,332,281 6,041,950 105,128,079 Excess(deficicncy)ofrevenuesover(under)expenditures 1 711 702 l56 307 687,481 (7,401,393) 293,107 (4,552,796) 1 ' Other financing sources(uses) General obligation deb[ - - - 4,333,000 - 4,333,000 Sale ofassets 120,479 - - - - 120,479 Transfers to other funds (2,20Q 163) (92,325) Q 80,828) (93,837) (531,984) (3,099,13'n � Transfers from other Cunds 281,571 - - 1,950,148 6,128 2,237,847 Total odier financing sources(uses) (1 798 113) (92 325) (I80,828) 6,189,311 (525,85� 3,592,I89 � Changesin fund balances , (86,411) 63,982 506,653 (1,212,082) (232,749) (960,60� Fmid balances beginning of year 13 103 669 5 577 - 5,297,981 2,894,892 21,302,119 ' Fund balances,end of year $ 13,017,258 S 69,559 5 506,653 $ 4,085,899 $ 2,662,14J S 20,341,512 See nccompnnying notes to financial smrements. . � I � I � i I � ' 1[-18 1 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 30,2006 � Net change in fund balances-total governmental funds (from Exhibit 4) $ (960,607) 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$7,076,441 exceeded depreciation expense of$2,698,390 in the current period. 4,378,051 ' ' , i Bond proceeds provide current financial resources to governmental funds,but issuing debt increases long-term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the � � governmental funds,but the repayment reduces long-term liabilities in the statement of net assets. This is the amount by which proceeds ' � of$4,333,000 exceeded repayments of$2,748,866. (1,584,134) 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. (149,432) Change in net assets of governmental activities(see Exhibit 2) $ 1,683,878 t. � See accompanying notes to financial statements. ' � ;'� . 1 . ' , , t � , II - 19 I Exhibit 6 r f CITY OF BANGOR,MAINE - Statement of Revenues,Expenditures and Changes in • Fund Balance Budget and Actual General Fund For the Fiscal Year Ended June 30,2006 Variance with � t Final Budget Budgeted amounts Positive ! Original Final Actual (Negative) Revenues • � � Taxes $ 43,931,087 $ 43,931,087 $ 44,790,189 $ 859,102 ' � Intergovernmental 22,736,879 22,759,199 23,442,508 683,309 Licenses and permits 451,900 451,900 538,534 86,634 , Charges for services municipal 7,012,610 7,012,610 7,631,324 618,714 - school 4,604,854 4,604,854 4,561,352 (43,502) ("- Fines,forfeits and penalties 28,650 28,650 36,195 7,545 Revenue from use of money and property �'" municipal 677,623 677,623 751,995 74,372 �'. Total revenues 79,443,603 79,465,923 81,752,097 2,286,174 , f > Expenditures Current: i General government 4,247,878 4,272,878 4,271,261 1,617 Public safety 12,954,483 12,954,483 12,937,340 17,143 Health,welfare and recreation 3,653,807 3,658,092 4,084,948 (426,856) Public buildings and services 8,928,557 8,946,592 9,023,632 (77,040) � Other agencies 3,837,851 3,837,851 3,833,458 4,393 Education 42,397,185 45,147,304 . 42,117,802 3,029,502 ; Debt service 3,845,676 3,845,676 3,846,364 (688) � Unclassified 108,987 108,987 131,875 (22,888) � Total expenditures 79,974,424 82,771,863 80,246,680 2,525,183 Excess(deficiency)of revenues � ovedunder expenditures (530,821) (3,305,940) 1,505,417 4,811,357 , Other financing sources(uses) Appropriaton from designated fund balance 1,727,053 1,727,053 562,639 (1,164,414) '. Appropriation from undesignated fund balance 475,818 475,818 - (475,818) •�. Appropriation to designated fund balance (475,818) (475,818) (475,818) - � � Sale of assets 22,743 22,743 46,074 23,331 Transfers to other funds (494,435) (494,435) (494,435) - Transfers from other funds 8,000 8,000 187,303 179,303 Operating transfers (732,540) (732,540) (732,540) - � _ � Total other financing sources(uses) 530,821 530,821 (906,777) (1,437,598) �� ' Net change in fund balance $ - $ (2,775,119) 598,640 $ 3,373,759 �� Undesignated fund balance,beginning ofyear - 6,152,195 Change in balances carried 647,571 , Undesignated fund balance,end of year $ 7,398,406 � See accompanying notes to financial statements. ' II-20 � Exhibit 7 � CITY OF BANGOR,MAINE � Statement of Net Assets � Proprietary Funds June 30,2006 • Susiness-type Activities-Enterprise Funds Sewer Bass Municipal Economic Utility Airport Park Parking Park Gol[ Development �Totab � Fund Fund Wood� Fund Fund Course Fund Currentyesr ' ASSETS Curtenl assets Cash $ 22,158 E 23,47t S 102 S 3,813 S 4,772 S 9,560 S 17 E 63,893 i Investrnents 1,497,302 7,527,352 - 353,719 - 853,482 - 10,23�,855 Accounts receivable , I,409,899 2,897,388 - 3,188 192,6t3 - - 4,503,088 � LessallowanceforunCollech'bleaccounts (22,601) (151,285) • - (27,110) - - (200,996) ,,�� Netaccountsreceivable 1,387,298 2,746,I03 - 3,188 165,503 - - 4,302,092 Due from other govemments - 820,605 • - - - . - 820,605 � Due hom waterdistrict 189,39] - - - - - - 189,391 Inventories,atcost ' - IlQl00 - - 16,085 - - 126,185 � Prepaid items 37,162 28,486 - - 37,347 - - - IO2,995 . � Totalcurtentazsets 3,133,311 11,256,117 102 360,720 223,707 863,042 i7 15,837,016 Noncurtent assets Capital Assetx . � Land and improvements 663,865 - 295,025 - 828,921 I,431,040 2,492,037 5,730,888 . Buildings and improvements 27,539,270 - 1,933,06I - 5,587,727 238,408 5,872,273 41,170,739 + Machineryandequipment 5,148,332 - 22,952 - 144,428 307,061 - 5,622,773 �.. lnhastrucNre 50,245,044 - - - - - - 50,245,044 � � Aircraft operarional azsets - 224,990,353 - - - - - 224,990,353 Parking strucNres - - - 9,968,268 - - - 9,966,268 � Construction in process 4,207,170 1,259,498 - - - 41,467 - 5,508,135 87,823,681 226,249,851 2,251,038 9,968,268 6,561,076 2,OI7,976 8,364,310 343,236,200 Less accumulated depreciaaon � (28,578,324) (108,255,693) (1,008,824) (6,096,328) (4,983,952) Q,180,229) (S10,887) (150,674,237) , Net capital assess 59,245,357 I17y94,158 1,242,2t4 3,871,940 1,577,124 837,747 7,793,423 192,561,963 � Investrnents - 10,673,400 - - - - - 10,673,400 Loans receivable - 2,088,520 - - - - I 19,464 2,207,984 I Deferred special assessments 88,700 - - - - - - 88.700 . Investrnentofunexpended bond proceeds - - - 98,605 - 594,343 - 693,148 Deposits - - 15,000 - - - - I5,000 ! c Bond issuance costs(net of accumulated amortizalion of$290,542) 103,767 - " - - - - 103,767 . Total noncunent azsets 59,437,824 130,756,078 1,257,214 3,970,745 1,577,124 1,432,090 7,912,887 206,343,962 ' Total assets � 62,571,135 142,012,195 1,257,316 4,331,465 I,800,831 2,295,I32 7,912,904 222,I80,976 ` See accompanying notes to financia!slatements. c �, 1 � � �� {, � Continued on next page . � [I-2i ` Exhibit 7(con't) � ' • ! CITY OF BANGOR,MAINE Statement of Net Assets , Proprietary Funds � June 30,2006 Business-type Activities-Enterprise Funds , Sewer Bass Municipal Economic ' Ut{lity Airport Park Parktng Park Golf Development Totals Fund Fund Woods FLnd Fund Course Fund Currentyear . � °� LIABILITIES Current liabilities Accounts payable 173,000 I,314,153 14,233 26,968 52,439 12,604 16,209 1,609,606 ('� Accrved wages and benefits payable 44,672 188,808 2,880 6,772 22,725 t5,614 - 281,47I + Accruedinterest 224,018 64,708 - 40,253 18,690 4,553 32,251 384,473 t . Worlers'compensation 15,101 113,462 - 3,465 5,219 - I37,247 Unearned rovenue - - - 36,484 72,036 - - 108,520 � Accrued compensated absences 51,586 220,385 12,310 5,956 28,898 9,202 - 328,337 � lnterfund loans - - 67,000 - 1,600,755 - 267,500 1,935,255 General obligation debt payable 2,691,692 495,337 - 451,888 131,003 31,655 169,702 3,97i,277 Jeferted amount on refunding Q9,907) - - (17,982) - - - (37,889) � Other liabilities - 3,518 2,000 - - - - 5,818 Totalcurtentliabilities 3,180,162 2,400,671 98,423 553,804 1,931,765 73,628 485,662 8,724>115 ''`► Long-tertn liabilities � Workers'compensation 74,899 62,437 - 6,535 4,781 - - 148,652 • General obligation debt payable 23,328,281 8,028,027 - 4,004,880 1,399,377 660,992 4,388,395 41,809,952 Deferred amount on refimding (33,19t) - - (35,281) - - - (68,472) Other tong-tetm liabilities 291,45t - 193,061 15,369 - - - 499,881 � � Total long-tertn liabilities 23,661,440 8,090,464 193,061 3,991,503 1,404,158 660,992 4,388,395 42,390,013 Totalliabilities 26,841,602 10,491,135 291,484 4,545,307 3,335,923 734,620 4,874,057 51,114,128 � / NET ASSETS Invested in capital assets,net of rclated debt 34,253,268 1 I3,259,159 1,242,214 41,527 S 12,023 832,090 3,235,326 153,375,607 Unrestricted 1,476,265 18,261,902 (276,382) (255,369) (2,047,115) 728,422 (196,479) . 17,691,244 � Total net asse4s $ 35,729,533 $ 131,521,061 T 965,832 5 (213,842) S (1,535,092) S 1,560,512 S 3,038,847 $ 171,066,851 ,` See accompanying notes to financ�al statements. 1 � " , �.r r� � 1 /� ( ! Continued from previous page II-22 Exhibit 8 � CITY OF BANGOR,MAINE - � Statement ot Revenues,Expenses and Changes in Net Assets � Proprietary Fuods - For the Fiscal Year Ended June 30,2006 Business-type Activities-Enterprise Funds , Sewer Basa Municipal Economic - Utility Airport Park Parking Park Colf Development TolaB r" Fund Fund Woods Fund Fund Course Fund Curtmtyear � Opaating revrnua 1 ChargesCmsmices $ 6,206,605 S 11,996,990 $� 287,452 5 963,697 S 1,460,931 E 604,365 S 330,840 5 21,850,880 � Operating expensa , Operating expenses other�han � depraiation and amortiralion 3,208,494 9,924.970 451,084 626,261. 1,758,275 537,I01 209,Si7 16,715,702 !! Depreciation and amorti7ation �,661,100 6,613,306 89,123 478,381 88,436 100,099 151,371 9,181,816 �� Totaloperztingexpensa 4,869,594 16,538,276 540,207 1,�04,642 1,846,711 637,200 360,868 25,897,Si8 � S � Operating income(loss) 1,337,011 (A,541,286) (252,755) (140,945) (385,780) (32,835) (30,046) (4,046,638) � Nonoperzting revrnue(expenta) Interatincome 75,375 475,951 417 12,079 1,142 35,610 34,880 635,454 7 \ Interestexprnse (948,533) (406.780) - (217.496) (71.400) (10,299) Q23,376) (1.779,864) Misccllaneous income(expense) 77,514 60,818 I38,332 ' � Toulnonopaatingrevrnue(upensa) (873,IS8) 144,685 417 (205,417) (70.256) 25,311 (27,678) (1,006,09g) � � Na income Qoss)beFore grants/contributions and vans(ers 463,653 (4,396,601) (252,338) (346,362) (456,038) (7,524) (57,726) (5,052,73� � Grantslcontributions received fw capital a5sets - 2,581,874 - - - - - 2,581,874 �, Transferstoo�herfunds Q00�62) - - - (1.19'n (18,200) - (119.759) . 7rensCers Crom othcr funds 183,009 310,268 467,772 981,049 Changeinnelaue�s 363,491 (1,8I4,72� (69,329) (36,094) 30,537 (25,724) (57,726) (1,609,572) � , Net Assets,beginning ofytar 35,366,042 133,335,787 1,035,161 (177,748) (1,565,629) 1,586,236� 3,096,573 172,676,422 Net Assets,end of year S 35,729,573 S 131,521,060 S 965,632 S (213,842) 4 (I,S75,092) S 1,560,512 S 3,038,847 S 171,066,850 See accompanying notes!o fnancinl statements. , 1 r.. � ,' '•J �M� � y 4 - � ,t-23 , � Exhibit 9 i � CITY OF BANGOR,MAINE Statement of Cash Flows-Proprietary Funds , - For the Fiscal Year Ended June 30,2006 Business-type Activities-Enterprise Funds Sewer Bau Munlcipal Economic � Otllity Airport Park Parking Park Golf Devetopment � � Fund Fund Woods �Fund Fund Course Fund Total ' Cazh(lows(rom opereting attivilies Cash received trom tustomas S 6,J53,646 S 13,693,704 5 287,452 S 957,134 8 1,446,845 S 604,365 E 330,840 E 23,773,986 � ' � Cazh paid�o suppliers for goods and services (1,990,421) (6,570�61) (386,578) (412,1�9) (946,210) (260.748) (202.67� (10.769,313) . CuM1 paid to cmployees(or services Q,201,10� (4,946,310) (73,690) (192,145) (787,919) (292,211) - � (7,493,381) - Nd cazh provided by(usal in)opera�ing �.,` activities 3.062.119 2.376,633 (172,816) 352,870 (287,284) 51,406 128,164 5.511,292 Cash Ilows Gom nonwpital fnancing aciivi�ies . � . � ' Inlafund loans(repaymrnts) ' - (13,000) - (50,600) - 50,500 (13,100) - i ' Transfcrs in • - I83.009 310,266 487.772 - - 98I.049 � 'TransCers out (100,362) (1.197) (18,200) - Q 19.759) . � Net cazh provided by(used in)noncapitai financing ectivitia (100,i62) 170,009 310,268 435,975 (18,200) 50,500 848,190 � Cazh Ilows Crom capilal and rcla�cd financing aclivilia � Praeeds from general obliga�ion bonds • - - - - 600,000 2.250,000 2,650,000 � Atquisition and constructionofcapital auets (1,911939) (6,164,24'n - - - . (60,945) (2,603,925) (10,741.056) � � Principal paid on genttal obligation bond5 (2,680,361) (480,341) - (456,878) (125,745) (864) � (98,660) (3,642,849) Interat paid on generzl obligation bonda (943,519) (401,831) - (198,505) (72,625) (5,74� (124,269) (1,748,495) ' � � Praads from sale oCequipmrnt , � - 77,514 - - - � - - 77,514 � Grant monies rcceived fm capitat auets - 1,128.306 - • - - - � 1,128,306 i ' Invatment of unexpended bond procecds 2,011 j43 - 20,493 (594,343) 1,431,493 . Net cash provided by(used in)capital and related � financing activi�ia (3,526,47� (5,640,599) - (634,890) (196,370) (61,898) (576,854) (10,839,08"n � � Cash ilows from invesring activitia � i 1 ��. Nel sales(purchasa)of investments 470,788 2,903,843 - (48,933) - (13,600) 357,505 3,669,603 Interat on invatmrn�s 80,924 475,952 417 11,163 1,142 3S,6I0 34,880 642,086 r� ' Loan repayments - I 1,058 - - 5,294 16,352 � � Nel cash provided by(used in)invating aztivitia 551,712 3,390,853 417 (35.770) 1,I42 22,010 397,679 4,328,043 � Net incrcate(decreaze)in cuh (13,00'� (72,9U) . (2,390) (7,522) (48,537) (6,682)- (511) (151,562) \ I Cazh,beginning of year 35,165 96,384 2,492 I 1,335 53,709 16,242 528 215,455 � Cash,end o(year S 22,ISB S 23,471 $ 102 $ 3,813 $ d,772 $ 9,560 $ 17 S 67,893 i , � Schcdule oCnoncash invating,capital and financing activi�ia: ' During the year,�he Airyon Fund had an unrealized loss on invaunents in the amount of 5485,443. � � See accompanying notes to finnneial statements. ,..,i r ' _ ' � Y Continued on'nexl page � II-24 � Exhibit 9(con't) CITY OF BANGOR,MAINE Statement of Cash Flows-Proprietary Funds ' For the Fiscal Year Ended June 30,Z006 Business-type Activities-Enterprise Funds Sewer � Bass Municipal Economic Utility Atrport Pnrk Parking Park Golf Development V Fund Fund Woods Fund Fund Course Fund To�al . Reconciliation of opera6ng income(loss)to net cash provided by(used in)operating activitia� . 'S � Opera[ingincomeQoss) S I,337,O1t S (4,541,286) 5 (252,755) S Q40,945) S (385J80) E (32,63� E (30,048) 5 (4,096,638) , Adj�tmrnis lo reconcile opaating incmne(loss) to net cash provided by(used in)operating � � • � attivilies � ��' 1 Deprccia[ionandaznortiaoon 1,661,100 , 6,613,306 89,123 476,381 88,436 100,099 ISt,371 9,181,816 ` Provision frn uncolixlible account5 - (215,105) - - - - - (215,I05) Changes in asseu and liabilides: ' .� ' (lncreue)decreasein accounts receivable (56,503) 1,896,714 - (646) (61,459) - - I,778,I06 (Inaease)decrease in due from water district 103,544 • - - - - - I03,544 ' (Increase)decrease in inventoria - (32,364) - - (2,837) - - (75,201) 1^ (Increate)decrease in prepaid items 1,718 5,089 - - (10,276) - - (3,469) � � � Increase(dareaze)inazwwtspayable 5,034 (1,396,070) (11,76� 21,432 31,344 (16,518) 6,841 (1,359,703) t Increase(decreue)in wearned revenue - - - (5,917) 47,373 - - 41,456 I ' Increase(decrea5e)in olha current lia6ililia 10,215 46,549 2,582 565 5,915 660 66,486 - t. Total adjusunrnLs 1,725,108 6,918,119 79939 493,615 98,496 84,241 158,212 9,557.930 � Net cash provided by(used in)operatlng actlWdes� S 3,062,ll9 3 2,376,83) S (172,81� f J52,870 $ (287,284) S 51,006 S 128,164 S 5,511,292 � i See aaompanying notes to financial srarvments. I, � n '� i l fL � � 7� , \� �,_, f� /� \ � t \ _ \ Conlinued lrom previous page ❑-25 ( `�^ Exhibit 1� CITY OF BANGOR,MAINE '� Statement of Fiduciary Net Assets Fiduciary Funds � June 30,2006 i Agency -� Fund � ASSETS Casli . $ ' 115,760 ' .� Total assets $ 115,760 , �,. . , LIABILITIES Liabilities: , - Amounts held for others $ 115,760 � Totalliabilities $ 115,760 See accompanying notes to financial statements. �, , ! r-. � r ' � t -, '� � J � I i II-26 ,-.. v This page left intentionally blank , � ' ^ 4 L + f 1 � � ( � .^1 , 1 � / 1 , � � � � � _ _ •h ' INDEX OF NOTES TO FINANCIAL STATEMENTS Summary of Significant Accounting Policies Note Pacte , A Reporting Entity II — 27�• � B Government-wide and Fund Financial Statements II — 27 C Measurement Focus, Basis of Accounting and Basis of Presentation II — 28 D Assets, Liabilities and Equity , - - -- _ II — 30 / � Stewardship, Compliance and Accountability ,-� , A Budgetary Information - II — 32 ._- B Reconciliation of Budgetary Basis Statements II — 33 - C Excess of Expenditures Over Appropriations II — 34 D Deficit Fund Equity , II — 34 E Restricted Assets ;� II — 34 � Detailed Notes on All Funds .` A Deposits and Invest�ments , II—35 B Property Tax `�, II—36 �. ' C Capital Assets � II—36 D Interfund Transactions, II— 38. E Due From Other Governments II — 39 F Leases II — 39 G Other Assets II —40 � H Unearned Revenue II —40 I Long-Term Debt _ II—40 � J Fund Balances II —44 � Other Information ' A Risk Management II —45 B Tax Increment Financing Districts. II —46 C Contingent Liabilities � II—47 D Retirement II—47 E Landfill Closure and Postclosure Care Costs II —49 � � Subsequent Events II —49 �, CTTY OF BANGOR, MAINE ' � � Notes to Basic Financiai Statements � . 7une 30, 2006 , SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES • i�� ' A. Reporting Entity - r The City of Bangor was incorporated under the laws of the State of Maine in 1834 and operates under � t � a council/manager form of government. In evaluating,how to define the reporting entity, for financial � reporting purposes, management has considered all potentiai component units. The criteria used to - � determine which entities, agencies, commissions, boards and authorities are part of the City's . � operations include how the budget is adopted, whether debt is secured by general obligation of the � City, the City's duty to cover any deficits that may occur, and supervision oVer the accounting ' functions. Based upon all pertinent facts derived from the analysis of the above criteria, it was 1 , determined that no additional entities should be included as part of these financial statements. . �, ! The City of Bangor is a member of the Joint Venture of the Equity Charter Municipalities of Municipal � � Review Committee, Inc (Joint Venture). The Joint Venture is an organization that resulted from a -- contractual arrangement between certain member municipalities, Penobscot Energy Recovery Company ��r (PERC) and Bangor Hydro Electric Company. It was formed to pool resources.of the Equity Charter �`p Municipalities for the long-term goal of handling the disposal.of their present and'projected volumes of non-hazardous municipal solid waste. As of December 31, 2005 (most recent data available) the City of Bangor's share of the Joint Venture's net assets was $5,832,563. Compete financial statements may � be obtained from Municipal Review Committee, 40 Harlow Street, Bangor, ME 04401. ,-� B. Government-wide and Fund Financial Statements � . �� The govemment-wide financial statements (i.e., the statement of net assets and the statement of %`'' activities) report information on all of the nonfiduciary activities of the City. For the most part, the I , 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 e^, 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 r-� 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. . _, II-27 ' � CITY OF BANGOR, MAINE � Notes to Financiai Statements, Contiinued . . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED � C. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement " focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for I 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. 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 _ ' government considers revenues to be available if they are collected within 60 days of the end of the .� current fiscal period. F�cpenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as certain compensated absences and claims and � judgments, are recorded only when the payment is due. � ' Those revenues susceptible to accrual are property taxes, interest, and charges for services. Other , receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that time. � Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to � accrual criteria are met. 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 Community Development Act of 1974, as amended, for the development of " � viable urban communities. The Racino Fund accounts for the percentage of slot revenues received by the City from the ' operation of the Racino. Said funds will be used to replace the Bangor Auditorium. I The Capital Projects Fund accounts for the acquisition of capital 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. � � II=28 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued _ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED - � 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. � 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 Ciry. Its purpose is to promote economic growth within the City. The principal � source of revenue is rental income. � Additionally, the City reports the following fund type: ;' Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others. The City's fiduciary funds include the following fund type: � Agency funds are custodial in nature and do not present results of operations or have a ` measurement focus. Agency funds are accounted for using the accrual basis of accounting. The funds are used to account for assets that the City holds for others in an agency " capacity. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and 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 these charges would distort the direct costs � and program revenues reported for the various functions concerned. II-29 � 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 fior 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 i 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 j�� "derivative instruments". Investments are reported at fair value. Income earned from the investment of pooled cash is allocated to various funds based upon the average cash balance allocated to the fund. 2. Interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either"interfund loans" (i.e. current portion of interfund loans) - or "advances to/from other funds" (i.e. the non-current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as"internal balances". ( Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for ," appropriation and are not expendable available financial resources. r. , 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-30 CITY OF BANGOR, MAINE " Notes to Financial Statements, Continued I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED - � . � used. The consumption method does not require a reserve for inventory and the City has chosen not to have such a reserve. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. - 4. Capital Assets � Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, � � sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Ciry as assets � with an initial, individual cost of more than $10,000 for machinery/equipment/vehicles, $25,000 for land/buildings and improvements and $100,000 for infrastructure and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. , The costs of normal repairs and maintenance that do not add to the value of the asset or materially " extend assets lives are not capitalized. , Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of ' the capitalized value of the assets constructed. Property, plant, and equipment of the primary 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 Operational 5 — 40 years Parking Structures 10 — 20 years 5. Compensated Absences � Accumulated vacation or compensatory time or vested sick leave of governmental funds that is � expected to be liquidated with expendable available resources is reported as an expenditure in respective fund financial statements only if the liability has matured, for example, as a result of � employee resignations and retirements. 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. �� 7 II-31 r 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-Iine method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as , deferred charges and amortized over the term of the related debt. � In the fund financial statements, governmental fund types recognize bond premiums and discounts, as _ well as bond issuance costs, during the current period. The face amount of debt is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while ' discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not ,-� withheld from the actual debt proceeds received, are reported as debt service expenditures. � 7. Fund Equity � In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a 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/expenditures during the reporting period. Actual results could differ from those estimates. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY , � A. Budgetary Information � � Budgets are prepared on a modified accrual basis of accounting, with the exception of depreciation � within the enterprise funds. Budgets for the General Fund and enterprise funds are formally adopted � each year through the passage of an appropriation resolve. Budgets for special revenue and capital projects funds have adopted project-length budgets. Unencumbered appropriations lapse at fiscal year ' end. II-32 � CITY OF BANGOR, MAINE Notes to Financiai 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 30�', by Charter, the budget proposed by the City Manager becomes effective. The budget is adopted at the department level through the passage of appropriation resolves. The City Manager may make transfers of appropriations within a department. Transfers between �_ departments or additional appropriations require the approval of the City Council. The City Council , made several supplementary budgetary appropriations throughout the year, 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: Excess of revenues over expenditures and other financing sources and uses(Budget) $ 598,640 , - Activity in designated fund balance (453,420) � 2006 encumbrances 705,431 2005 encumbrances lapsed (16,123) 2005 encumbrances paid (920,939) " Deficiency of revenues and other financing sources over expenditures and other uses(GAAP) (86•4111 ' ' 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 Net Assets: . '` J . r � II-33 � � CITY OF BANGOR, MAINE Notes to Financial Statements, Continued � STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY, CONTINUED Excess(deficiency)of revenues over expenditures and encumbrances: Sewer $ (2,085,180) - Airport (4,496,485) , Park Woods (136,993) ' Parking (461,879) Bass Park (90,597) Municipal Golf Course . (40,727) �. Economic Development � (259.321� �7.571,182) Nonoperating revenues classification (1,652,828) ` Investments at market value (225,438) ' Capital outlay 232,026 Capital projects (141,882) Cash basis to accrual basis adjustments (133,561) � Contributed capital depreciation (237,881) Principal payments 3,842,850 � 2006 encumbrances 57,388 .,� 2005 encumbrances (40,358) Nonoperating expenses classification 1,824.228 Operating loss $ 4"046•638) C. Excess of Expenditures Over Appropriations , - The following General Fund departments were over-expended by the indicated dollar amounts; Executive $44,256, City Clerk $ 13,209, Assessing $4,665, Police $25,899, Fire $53,958, Health and � welfare $372,902, Parks and recreation $53,954, Public buildings and services $77,040 and Tax f- increment financing payments $51,631. These over-expenditures were funded by receipt of revenues in excess of appropriation and under-expenditures within other General Fund departments. - The Economic Development Fund was over-expended on a departmental basis by $155,457. This over- expenditure was funded, in part, by receipt of revenues in excess of appropriations. The Park Woods ' and Bass Park Funds were over-expended on a departmental basis by $39,637 and $56,195 , 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 $1,535,092. The City Council has ' determined that the facility will either be closed or replaced in the near future. � With continued review of parking usage and fees it is anticipated that the Parking Fund deficit of ' $213,842 will at the least stabilize over the coming years. ' �, E. Restricted Assets Donations received by the City whose use in limited are placed in the appropriate Special Revenue fund, depending upon whether or not the principal can be expended. All changes in market value are ' � added to the earnings, which is allowable by State Statute. As these amounts are invested in a note _ , receivable, there was no change in market value for fiscal year 2006. II-34 CITY OF BANGOR, MAINE ` Notes to Financial Statements, Continued � ._ DETAILED NOTES ON ALL FUNDS A. Deposits and Investments The City 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 $3,500,000 of deposits in addition to the � $100,000 provided by the Federal Deposit Insurance Corporation (FDIC). As of June 30, 2006, $203,408 of the City's bank balance of$4,024,381 was exposed to custodial credit risk because it was � uninsured and uncollateralized. At June 30, 2006, the City had the following investments and maturies: Maturity(years) • ` Investment types Fair Value Not Applicable <1 1-5 6-10 � Mutual Funds $ 15,157,999 $ 15,157,999 $ - $ - $ - US Treasuries 21,017,123 - 10,765,049 9,772,347 479,727 Common stock 737,921 737,921 - - - Certificate of Deposit 50,000 50.000 - - 50,000 Totals 36.963.043 15.945.92 $ 10:765:049 �9.772.347 .7 7 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 June 30, 2006, the City's investment in equities were rated by Standard and Poor's as follows: � _ Investment type Rating Fair Value Mutual Funds Not Rated $ 15,157,999 1 - US Treasuries AAA 21,017,123 , Common stock Not Rated 737,921 Certificate of Deposit Not Rated 50,000 � - 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 parly. As of June 30, 2006, 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 parly custodian, or Trust Department, designated by the Treasurer and evidenced by safekeeping receipts. ' II-35 , � 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. Property Tax . Property taxes for the current year were levied July 7, 2005, 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 iri two ' installments: September 15, 2005 and March 15, 2006. Interest was charged at 7.75% 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 activiry for the year ended June 30, 2006 was as follows: Balance Balance • June 30, June 30, 2005 Increases Decreases 2006 - ` Governmental activities: Capital assets,not being depreciated: + Land $ 5;040,548 - - 5,040,548 �� Construction in proqress 13.772,822 8,457,114 9,218.505 13,011,431 V Total capital assets, not beina depreciated 18,813,370 8,457,114 9,218.505 18,051,979 , Capital assets,being depreciated: � Land improvements 1,873,395 4,123,982 - 5,997,377 , Buildings and improvements 48,065,964 1,608,592 - 49,674,556 Machinery and equipment 7,744,294 531,850 - 8,276,144 Vehicles 10,068,804 1,661,337 382,756 11,347,385 Infrastrudure 15 113 084 - 15 113 084 � Total capital assets being depreciated 82,865,541 7,925,761 382,756 90,408,546 Less accumulated depreciation for: Land improvements (1,232,613) (162,121) - (1,394,734) Buildings and improvements (16,295,715) (955,876) - (17,251,591) x Machinery and equipment (3,750,745) (574,818) - (4,325,563) Vehicles (5,280,391) (722,013) (294,827) (5,707,577) � Infrastructure (7 876.915� (283,562) - (8.160,477� Total accumulated depreciation (34,436,379) (2,698,390) (294,827) (36,839,942) Total capital assets beina depreciated, net 48,429,162 5,227�371 87.929 53 568 604 � . Governmental activities c�oital assets.net �67,242.532 13.684.485 9.306.434 71.620.583 � � II-36 � CITY OF BANGOR, MAINE Notes to Financial5tatements, Continued , DETAILED NOTES ON ALL FUNDS, CONTINUED � E. Due From Other Governments - Due from other governments is comprised of the following amounts at ]une 30, 2006: Federal State of �- � Government Maine Other Total General Fund $ - $ 1,321,154. $ 156,905 $ 1,478,059 Special Revenue Funds 578,711 32,170 . - 610,881 Racino Fund - 106,302 - 106,302 Capital Projects Fund - i,048,851 - 1,048,851 Proprietary Funds 804,807 15,798� - 8Z0,605 Of the General Fund's $1,321,154 due from State of Maine, $525,364 represents school grant and � � State agency billings, $551,133 is due from the Department of Transportation and $237,036 represents general assistance claims. Amounts due from other communities for tuition reimbursement to Bangor accounts for $80,406 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, 2006 are: Fiscal year ending Economic June 30. Airport Development � 2007 $ 2,466,899 $ 249,140 2008 2,317,539 213,772 2009 1,393,694 219,289 ^. 2010 1,120,412 224,591 , �. 2011 861,446 224,591 Subsequent to 2011 5,566,294 1,787,275 �" � � 13,726.284 $ 2.918.658 ' Minimum future rentals do not include contingent rentals, which may be received as stipulated in the , , lease contracts. The Airport received $1,516,212 in contingent rentals in fiscal year 2006. The carrying amounts of the leased assets are as follows: � ; Economic Airport Development ^ Land $ 565,901 $ 2,492,037 Buildings 28,365,271 5,872,273 Less accumulated depreciation (1,162,864) (570,887� ^ Total 27J68,308 $ 7J93.423 II-39 '� 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 $ 4,325,377 $ 693,148 � Deposits - 15,000 Bond issuance costs (net of amortization) - 103,767 � Total $ 4.325,377 $ 811.915 , H. Unearned Revenue General Fund unearned revenue consists of $1,534,177 in deferred taxes and $83,704 of advance � deposits. Community Development Block Grant and Other Governmental Funds unearned revenue of , $3,997,562 and $296,120, respectively, represents future revenue equal to loans made pursuant to the Community Development, Urban Development Action Grants and Economic Incentive Revolving Loan � Fund. Under the terms of these grants, loans made are recognized as an expenditure in the Special Revenue Fund when they occur. Further, in accordance with regulations governing such funds, the repayments of such loans are considered program income as received and are available to the recipient for additional use within the program. Proprietary Funds unearned revenue of $108,520 represents advance deposits. . I. Long-Term Debt ' General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major � capital additions. General obligation bonds have been issued for both governmental and business-type - , activities. These bonds are reported in the proprietary funds if they are expected to be repaid from ; , proprietary fund revenues. In addition, general obligation bonds have been issued to refund general � obligation bonds and extinguish an existing retirement liability. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bonds. The original amount of general obligation bonds issued is $142,925,900. The following is a summary of general obligation bond and note transactions of the City for the fscal year ended June 30, 2006: Bonds and notes payable at June 30, 2005 $ 106,193,307 Add: principal additions 7,183,000 Less: principal repayments 6,591,715 Bonds and notes payable at June 30, 2006 106.784.592 II-40 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED Bonds and notes payable at June 30, 2006 are comprised of the following: Fscal year Interest Govemmental activities Business-type Total of maturitv rate Citv School activities ]une 30.2006 Long-term debt: . , Public improvements- 1988 2008 7.37%-8.60% $ - $ - $ 200,000$ 200,000 Treatment Plant 2011 7.00%-7.10% - - 6,650,000 6,650,000 Combined sewer overflow 2014 2.46% - - 745,600 745,600 Combined sewer overflow 2014 2.45% - - 794,400 794,400 � Public improvements- 1996 2016 5.05%-5.85% 350,000 - - 350,000 . � Combined sewer overFlow 2017 3.52% - - 1,808,618 1,808,618 � Tax increment financing note* 2016 6.00%-6.90% 695,000 - - 695,000 Pubiic improvements—1996 2017 5.35%-6.50% 975,000 - _ - 975,000 , Combined sewer overFlow 2018 3.03% - - 1,597,639 1,597,639 Public improvements—1997 2018 4.875%-5.3% 2,333,550 2,475,000 1,191,450 6,000,000 Tax increment financing note* 2018 6.19% 220,000 - - 220,000 Pubiic improvement—19.99 2019 4.20% 1,086,900 - 983,100 2,070,000 � Maine Business Enter Park 2018 5.00% - - 184,807 184,807 Public improvements—2000 2020 5.25%-5.90% 1,115,262 - 1,224,738 2,340,000 Public improvements—2001 2021 4.25%-5.00% 1,022,000 166,000 3,347,000 4,535,000 State Revolving Renovation—School 2011 0.00% - 284,300 - 284,300 Public improvements note* 2012 6.25% 618,590 - - 618,590 Public improvements—2002 2022 3.50%-4.75% 3,722,000 3,600,000 1,483,000 8,805,000 Pension obligaUon bonds 2026 3.06%-6.45% 26,019,152 1,651,705 5,539,143 33,210,000 Refunding bonds 2024 3.06%-3.47% 589,760 2,419,764 4,490,476 7,500,000 Combined sewer overflow 2023 1.94% - - 2,598,999 2,598,999 State Revolving Renovation—School 2008 0.00% - 24,942 - 24,942 Public improvements note* 2012 2.50%-4.00% - - 202,036 202,036 Tax increment financing note* 2015 2.50%-4.00% 143,088 - - 143,088 Briggs Building note 2023 6.50% - - 1,173,291 1,173,291 Refunding/public improvements-2004 2023 2.50%-4.80% 3,512,850 1,150,500 3,031,650 7,695,000 Combined sewer overFlow 2024 1.41% - - 2,540,282 2,540,282 Public improvements-2005 • 2024 3.50%-4.30% 2,495,000 - 950,000 3,445,000 Airport building sprinklers 2024 3.25%-5.00% - - 2,195,000 2,195,000 Chancellor's property note 2025 5.00% - - 2,250,000 2,250,000 Public improvements/refunding 2025 4.00%-4.20% 4,333.000 - 600,000 4,933,000 , Total bonds and notes payable 49.231.152 �11.772.211 �45.781.229 3106.784.59 *Five series of general obligation notes aggregating$1,878,714 are held by the City's Airport Fund at fixed,taxable market rates of interest. These notes are structured with a put feature,which,upon certain precedent conditions,allows the Airport to present them for redemption to the City's General Fund. It is managemenYs intention,should a put occur,to fund it by passing the note along to its Sewer Fund,where it will be converted to a three to five year fixed note with level debt service,albeit without a put option. � Annual debt service requirements to maturity for general obligation 6onds and notes payable are as i follows: Fiscal year ending Governmental Activities Business-Type Activities June 30, Principal Interest Princi al Interest 2007 $ 4,237,095 $ 3,082,695 $ 3,971,277. $ 1,768,678 2008 3,123,243 2,989,606 4,002,102 1,640,004 2009 3,210,336 2,866,055 3,928,438 1,498,258 2010 3,138,237 2,733,997 3,927,669 1,356,746 2011 2,971,863 2,605,986 3,677,864 1,220,496 2012-2016 15,149,713 10,864,276 12,353,945 4,432,980 2017-2021 14,079,236 6,987,205 8,406,802 2,473,541 2022-2026 15,093,640 2,863,669 5,513,132 796,847 � Total 61,003.363 $ 34.993.489$ 45,781.229 $ 15.187.550 II-41 � 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, 2006, the statutory limit for the. City was $309,495,000. The City's outstanding long-term debt of$106,784,592 at.lune 30, 2006 was within the � statutory limit. . Advance and Current Refunding _� In prior years, the City defeased certain general obligation bonds which reduced debt service payments � in governmental and business-type funds by $408,000 and $302,000, respectively. This transaction placed the proceeds of the new bonds in an irrevocable trust to provide for all future debt service '' payments on the old bonds. The trust account assets and the liability for the defeased bonds are not included in the City's financial statements. At June 30, 2006, $1,288,400 and $3,006,600 of the governmental and business-type activities, respectively, are considered defeased. Within the Proprietary Funds the advance refunding transaction gave rise to a deferred amount on refunding. The deferred amount on refunding is being amortized over the remaining life of the original bonds. . In June 2006, the City issued $1,265,000 of general obligation bonds for a current refunding of its' 1995 and 1996 issues in the amount of$1,215,000. The refunding payment occurred in August 2006. The refunding was undertaken to reduce total future debt service payments by $54,355 over the next 10 years. The final maturity date of the original issue was not extended. Authorized and Unissued � On September 26, 2005, the City Council authorized the issuance of up to $6,868,831 in general � obligations bonds for�.various purposes. As of June 30, 2006, $5,400,000.remains authorized and unissued. The unissued amount is comprised of the following projects; $1,900,000 for construction, ` � - demolition , engineering and furniture & fixtures associated with the police stations, $2,000,000 for the ` annual combined sewer overFlow program, and $1,500,000 for the construction, demolition, engineering and furnishing of Fire Station 6. � On March 27, 2006, the City Council authorized the issuance of up to $455,000 in general obligation � bonds for the purpose of renovating and rehabilitating.property located at 103 Texas Avenue. As of ` June 30, 2006, $255,000 remains authorized and unissued. The City expects to issue the debt within ,; the next fiscal year. i' . II-42 CITI( OF BANGOR, MAINE � Notes to Financial Statements, Continued DETAILED NOTES ON ALL FUNDS, CONTINUED ' Designated Fund Balance � Designated fund balance of the General Fund at June 3U, 2006 consists of amounts, which the City intends to use for the following purposes: Departmental balances carried forward $ 107,211 � � School department— regular 1,492,013 adult education 118,703 � reading assessment 21,183 ._ special revenue 139,107 school lunch 44,741 - trust and agency 204,589 F � Total balances carried 2,127,547 Accrued summer teacher payroll �2�`�46�89�) -- , Pooled equipment 375,083 Bus equipment 44,064 Fire equipment 119,489 �- ? Improvement 436,876 , I Self insurance 1,830,418 Cameron stadium 126,574 i Landfill closure 9,531 Cascade park maintenance - 61,032 Demolition � 1,348 � PEG capital support 105,507 � Pickering Square development district 90,513 Parks & Rec Improvement (191,161) ;--� Amounts due from Bangor Nursing & Rehabilitation Center 217,811 � Pension obligation bond savings 290,661 Arbitrage rebate 231,637 � $ 3.430.� � � 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 Ciry 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. � ,y � � ;� II-45 � . �i CITY OF BANGOR, MAINE Notes to Financial Statements, Continued OTHER INFORMATION, CONTINUED The City purchases coverage under a number of commercially available insurance policies such as; . commercial general liability, auto, property damage and crime and dishonesty, each with limits and deductibles deemed prudent given the risks, cost of coverage and' the City's ability to fund certain � types of losses. For those claims covered by commercial insurance, the amount of settlements has not � exceeded the coverage for the years ended June 30, 2006, 2005 and 2004. The City is self-insured for its workers' compensation liability. Reserves are actuarially determiined each year to assure funding adequacy. In addition, the City purchases excess workers'compensation insurance to limit its financial risk. At ]une 30, 2006, the amount of self-insurance liabilities was $2,116,317. This liability is the City's best estimate based on available information. Changes in the reported liabilities since July 1, 2004 resulted from the following: Workers' All other self- Compensation insured risks Total Unpaid claims as of July 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 July 1, 2005 2,071,602 207,753 2,279,355 Incurred claims 109,458 - 109,458 , Payments (596,737) (2,554) (599,291) Changes in estimates and other adjustments 317,630 9,165 326,795 , . Unpaid claims as of June 30, 2006 1,901,953 $ 214.364 $ 2.116,317 B. Tax Increment Financing Districts -, � The City has established tax increment financing districts, all of which dedicate a portion of the incremental increase in real estate and/or personal property tax revenues over staggered twenty year , periods for the following purposes: � B.I.A. Municipal Development District No. 1 — Partially financed $27.5 million dollars of capital , expenditures at manufacturing facilities leased by General Electric Company. Main Street Municipal Development District — Assisted Penobscot Development Limited Liability Company in financing the extraordinary costs of acquisition and environmental remediation of the former 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. � Downtown Municipal Development District — To partially finance in excess of $70 million dollars of infrastructure improvements within the boundries of the district. II-46 CITY OF BANGOR, MAINE � Notes to Financiai Statements, Continued OTHER INFORMATION, CONTINUED � C. Contingent Liabilities In February 1998, the City was served Notification of Potential Liability by the Federal Environmental Protection Agency (EPA) in connection with that agency's efforts to clean up a disposal site. The City is among approximately 500 potentially responsible parties. 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 EPA'is expected to issue its second Record of Decision for the site by the end of 2006. It is expected that a final settlement will occur during 2007. At this point it is not possible to estimate the cost of designing and implementing the final remedy. , In 2002, the Ciry filed suit against a potentially responsible party to force cleanup of contamination of the Penobscot River bottom due to the inability to reach settlement. In September of 2005, the U.S. District Court issued an Order finding that the City is responsible for 40% of the remediation costs. In the absence of a settlement, the nature and cost of the remediation, which could range from $6 - $14 million, will be determined during in the upcoming year. 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. Reti rement The City of Bangor provides retirement pensions for its employees through a number of yehicles, i including a defined contribution plan, defined benefit pension plan and social security. Defined Contribution Plan . Description of the Plan - The City provides pension benefits for certain employees through a 401(a) defined contribution plan administered by ICMA/RC. In addition certain full-time employees are -- covered through both a 401 (a) and 457 Deferred Compensation Plans (DCP) also administered by � ICMA/RC. In a DCP, benefits depend solely on amounts contributed to the plan plus investment earnings. Covered employees are eligible to participate and are fully vested from the date of employment. Funding 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 2006 covered payroll was $8,424,406 and City contributions�were $720,407. 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 $525,928 and $57,851 respectively, in fiscal year 2006. i II-47 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued � OTHER INFORMATION, CONTINUED , Defined Benefit Pension Plan Description of the Plan —The City contributes to the Maine State Retirement System Consolidated Plan, � a cost sharing multiple-employer retirement system established by the Maine State legislature. The Maine State Retirement System provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The authority to establish and �- amend benefit provisions rests with the state legislature. The Maine State Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for the Consolidated Plan. That report may be obtained by writing to Maine State — Retirement, 46 State House Station, Augusta, Maine 04333-0046 or by calling 1-800-451-9800. - Fundin4 Policx— 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 P�an for the years ended June 30, 2006, 2005, and 2004 were $701,017, $692,119, and $667,705 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 publicly available financial report _ that includes financial statements and required supplementary information for the Teacher's Group. That report may be obtained by writing to Maine State Retirement System, 46 State House Station, Augusta, Maine 04333-0046 or by calling 1-800-451-9800. Fundin4 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 $4,553,481 (19.15%) for the fiscal year 2006. 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 19.15% 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. ' II-48 CITY OF BANGOR, MAINE Notes to Financial Statements, Continued OTHER INFORMATION, CONTINUED Social Security The City does not have a section 218 agreement to provide full social security coverage to its II employees. The City does provide full social security coverage to part-time, seasonal and temporary employees under the Omnibus Budget Reconciliation Act of 1990, and Internal Revenue Service regulations, which became efFective )uly 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. Subsequent Events � On August 14, 2006, the City Council authorized the issuance of $655,000 in general obligation bonds for the purpose of funding the City's annual fleet replacement. 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, 2006, this balance exceeded the Ciry policy of 7.5% by $1,722,351. 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$1,000,000 to fund further environmental assessment of the Penobscot river as well as legal costs. � ; II-49 � � , � � GENERAL FUND The General Fund is used to account for resources traditionally associated with the government, which are not required''legally o�by sound financial management, to be accounted for in another fund:�`�'r �� _ i��'" �� '�. �,�'� :; ', � �_ , a�`'': �r; / `� ' - - � . . � � , _ r . . , �: 4, ��.,e c - 1. , �' � _ . '� � � �� /- � � � . ��. .#� � ,� �, . �, a , — < \ `i''Pr� ,, � � A0�'�: ,, . . .'i>' • •�,, , \ '�� '�l_:�. .A� ��Y YJ�B ' � >_a..... � �y`[�, '7�'f � .`_ .y� .t' ` . � a .S ' � �„F'�� _ . ' I � Schedule A-1 - � - -1 CITY OF BANGOR,MAINE , Balance Sheet General�nd � � June 30,2006 � AS5ETS � � ��I Cash $ 322,587 - Investments 10,655,899 - � Receivables: � Taxes 1,671,122 Accounts(net of allowance of$267;648) 855,256 ' � Interfund loans 2,264,233 �._ Intergovernmental 1,478,059 Loans 1,173,291 'i Inventory, at cost � 637,133 -t Prepaid items 36,299 � Total.assets $ 19,093,879 ` I LIABILITIES AND FUND BALANCE _i Liabilities Accounts payable $ 863,973 ' Accrued wages and benefits payable 3,594,767 � Unearned revenue 1,617,881 Totalliabilities 6,076,621 { � } Fund balance ' � Reserved for: � Encumbrances 719,831 Prepaid itiems 36,299 � Advances to other funds 1,432,689 � Unreserved: Designated(Note� 3,430,033 Undesignated 7,398,406 Total fund balance 13,017,258 + Total liabilities and fund balance $.19,093,879 . - � � , -� . ' , II-50 I 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 30,2006 Balances Variance Carried 7/1/2005 Budget Actual Surplus Carried Revenues Taxes , Real and personal property $ - $ 40,428,424 $ 40,481,718 $ 53,294 $ - Change in deferred property ta�c - - 274,570 274,570 - Tax increment financing district - (1,132,337) (1,064,448) 67,889 - � Payment in lieu of taxes - 156,500 160,457 3,957 - Excise' - 4,278,500 4,752,852 474,352 - Interest on delinquent taxes - 200,000 185,040 (14,960) - Total taxes - 43,931,087 44,790,189 859,102 - Intergovemmental ' � State revenue sharing - 3,900,000 4,069,815 169,815 - School subsidy - 13,507,418 13,507,418 - - ` Other- municipal - 1,994,792 2,309,535 314,743 - school - 3,356,989 3,555,740 - 198,751 Total intergovemmental - 22,759,199 23,442,508 484,558 198,751 Other revenue _ Licenses and permits - 451,900 538,534 86,634 - Charges for service- municipal - 7,012,610 7,631,324 618,714 - � school - 4,604,854 4,561,352 - (43,502) Fines,forfeits and penalties - 28,650 36,195 7,545 - Revenue from use of money and property- municipal - 677,623 751,995 74,372 - Total other - 12,775,637 13,519,400 787,265 (43,502) Totalrevenues - 79,465,923 81,752,097 2,130,925 155,249 r � TT_ S1 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 30,2006 Balances Variance Carried � 7!1/2005 Budget Actual Surplus Carried Expenditures General government Council - 46,723 42,223 4,500 - Executive - 606,195 650,451 (44,256) - Human resources 25,000 94,646 ]01,895 11,340 6,411 City clerk - 403,819 417,028 (13,209) - Assessing - 354,972 359,637 (4,665) - Legal - 280,128 272,868 7,260 - Finance - 1,361,086 1,360,801 285 - Insurance - 133,920 132,033 1,887 - Planning,econ dev,code enforcement - 966,389 934,325 32,064 - Total general govemment 25,000 4,247,878 4,271,261 (4,794) 6,411 I Public safety Police - 6,272,541 6,298,440 (25,899) - Fire - 6,681,942 6,638,900 (53,958) 97,000 Total public safety - 12,954,483 12,937,340 (79,857) 97,000 Health,welfare and recreation � Health andwelfare - 2,408,569 2,781,471 (372,902) - Parks and recreation - 1,249,523 1,303,477 (53,954) - Total health,welfare and recreation - 3,658,092 4,084,948 (426,856) - Public buildings and services - 8,946,592 9,023,632 (77,040) - � � 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, 2006 Balances Variance Carried 7/1/2005 Budget Actual Surplus Carried• Expenditures,continued Other agencies Countytax - 2,116,355 2,116,355 - - Downtown Development District - 46,314 46,314 - _ Public library - 1,412,477 1,412,477 - - Otheragencies - 262,705 258,312 593 3,800 Total other agencies - 3,837,851 3,833,458 593 3,800 Education Regular 2,095,409 36,394,952 36,068,718 - 2,421,643 Adult education 73,008 636,852 528,903 - 180,957 � Schoollunch 63,427 1,180,432 1,128,651 - 115,208 � Reading assessment 21,913 ]0,000 729 - 31,184 Special revenue 275,179 2,372,051 2,652,059 - (4,829) Trust and agency 221,183 1,802,898 1,738,742 - 285,339 Total education 2,750,119 42,397,185 42,117,802 - 3,029,502 Other appropriations Pensions and other fringe benefits - 1,776,237 1,748,513 27,724 - Debt service - 1,820,315 1,8F9,984 331 - Tax increment financing payments - 358,111 409,742 (51,631) - Total other appropriations - 3,954,663 3,978,239 (23,576) - Total expenditures 2,775,119 79,996,744 80,246,680 (611,530) 3,136,713 Excess(deficiency)of revenues over/under expenditures (2,775,119) (530,821) 1,505,417 1,519,395 3,291,962. � II- 53 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 30,2006 Balances Variance Carried 7/1/2005 Budget Actual Surplus Carried Other financing sources(uses) Appropriaton from designated fund balance - 1,727,053 562,639 - (1,164,414) Appropriation from undesignated fund balance - 475,818 - (475,818) - Appropriation to designated fund balance - (475,818) (475,818) - - Sale of assets - 22,743 46,074 23,331 - Transfers to other funds - (494,435) (494,435) - - Transfers from other funds - 8,000 187,303 179,303 - Operating transfers - (732,540) (732,540) - - Total other financing sources(uses) - 530,821 (906,777) (273,184) (1,164,414) Net change in fund balance $ (2,775,119) $ - $ 598,640 1,246,211 $ 2,127,548 Undesignated fund balance,beginning of year 6,152,195 , Undesignated fund balance,end of year $ 7,398,406 II - 54 NONMA.70R 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) feder-al 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. � j 'l Grant Fund — Accounts for federal and state grants that are legally restricted to expenditures allowable by the grantor agency. , r f Dedicated Revenue Funds - Accounts for amounts raised or donated to benefit various � governmental prqgrams such as; the Dental Clinic, local parks, City forest and Park Woods complex. �` :;, , , Other Funds—Accounts for funds helcl'to be used in future eriods sucfi as tax financin . . P 9 . - district repayments�and other community funds for capital expenditures relating to the operation of the area.\ransportation system =:��' . ,. ; _- , �� , _ `�, Permanent Fund Permanent funds are used to report__resources that-are legally restricted to the extent that only eamings, not principal, may be used for purposes that support the reporting government's programs. Schedule B-1 GITY OF BANGOR,MAINE Combining Balance Sheet Nonma;jor Governmental Funds ' June 30,2006 Nonmajor Special Nonmajor TotalOther Revenue Permanent Governmental Funds Funds Funds ASSETS ' Cash $ 127,447 $ - $ 127,447 Investments 276,467 106,897 383,364 Receivables: Loans 1,677,748 895,628 2,573,376 Interfund loans 144,090 - 144;090 � Intergovernmental . 269,298 - 269,298 Total assets $ 2,495,050 $ 1,002,525 $ 3,497,575 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 66,244 $ - $ 66,244 , ; Unearned revenue 296,120 - 296,120 Interfund loans 473,068 - 473,068 ; Total iiabilities 835,432 - 835,432 . ; Fund balances Reserved for: � � Encumbrance 628 - 628 Principal - 652,303 652,303 Unreserved,undesignated � 1,658,990 350,222 2,009,212 I Total fund balances 1,659,618 1,002,525 2,662,143 � Total liabilities and fund balances $ 2,495,050 $ 1,002,525 $ 3,497,575 . , � I '� II-55 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 30,2006 Nonmajor Special Nonmajor TotalOther Revenue Permanent Governmental Funds Funds Funds Revenues Taxes $ 1,064,448 $ - $ 1,064,448 Intergovernmental 4,264,208 - 4,264,208 Charges for services 560,280 - 560,280 Program income 319,773 - 319,773 Revenue from use of money and property 53,117 - 53,117 Other revenue 53,209 3,450 56,659 Interest revenue - 16,572 16,572 Tofal revenues 6,315,035 20,022 6,335,057 Expenditures Current: Personnel 435,342 - 435,342 Equipment 33,320 - 33,320 Payments to beneficiaries 1,229,778 - 1,229,778 Other 2,695,526 - 2,695,526 Bus operations 1,644,210 - 1,644,210 ' Program expenditures - 3,774 3,774 Total expenditures 6,038,176 3,774 6,041,950 Excess(deficiency)bf reveriues over(under)expenditures 276,859 16,248 293,107 Other financing sources (uses) Transfer to other funds (501,484) (30,500) (531,984) Transfer from other funds 5,269 859 6,128 Total other financing sources(uses) (496,215) (29,641) (525,856) Net change in fund balances (219,356) (13,393) (232,749) . Fund balances,beginning of year 1,878,974 1,015,918 2,894,892 Fund balances,end of year $ 1,659,618 $ 1,002;525 $ 2,662,143 II - 56 Schedule B-3 CITY OF BANGOR,MAINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30,2006 Dedicated Other Grant Revenue Totals HUD Funds Fund Funds Other 2006 ASSETS . � Cash $ 127,447 $ - $ - $ - 127,447 Investments - - - 276,467 276,467 Receivables: Loans 296,120 - 699,585 682,043 1,677,748 Interfund loans 144,090 - - - 144,090 Intergovemmental - 269,298 - - 269,298 Total assets $ 567,657 $ 269,298 $ 699,585 S 958,510 $ 2,495,050 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ - $ 64,734 $ - $ 1,510 $ 66,244 Uneamed revenue 296,120 - - - 296,120 Interfund loans payable - 144,090 - 328,978 473,068 Totalliabilities 296,120 208,824 - 330,488 835,432 Fund balances Reserved for: Encumbrances - 628 - - 628 Unreserved: Undesignated 271,537 59,846 699,585 628,022 1,658,990 Total fund balances 271,537 60,474 699,585 628,022 ],659,618 Total liabilities and fund balances $ 567,657 $ 269,298 $ 699,585 $ 958,510 $ 2,495,050 II-57 - Schedule B-0 CITY OF BANGOR,MAINE Combining Statement of Revenues,Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Fiscal Year Ended June 30,2006 . Dedicated Other Grant Revenue Totals HUD Funds Fund Funds Other 2006 Revenues Taxes • $ - $ - $ - $ 1,064,448 $ 1,064,448 Intergovemmental - 4,264;208 - - 4,264,208 Charges for services - 560,280 - - 560,280 Program income 319,773 - - - 319,773 Revenue from use of money and property ]0,267 - 8,678 34,172 53,]17 Contributions - - - 40,775 12,434 53,209 Total revenues 330,040 4,824,488 49,453 i,111,054 6,315,035 Expenditures Personnel - 435,342 - - 435,342 Equipment - 33,320 - - 33,320 Payments to beneficiaries 135,609 - 697 1,093,472 1,229,778 Other 1,476 2,671,898 - 22,152 2,695,526 Bus operations - 1,644,210 - - 1,644,210 Total expenditures 137,085 4,784,770 697 1,115,624 6,038,176 Excess(deficiency)of revenues over(under)expenditures 192,955 39,718 48,756 (4,570) 276,859 Other financing sources(uses) Transfers to otherfunds (300,000) - (194,484) (7,000) (501,484) Transfers from other funds - 5,000 269 - 5,269 Total other financing sources(uses) (300,000) 5,000 (194,215) (7,000) (496,215) Net change in fund balances (107,045) 44,718 (145,459) (11,570) (219,356) Fund balances,beginning of year 378,582 15,756 845,044 639,592 1,878,974 Fund balances,end of year $ 271,537 $ 60,474 $ 699,585 $ 628,022 $ 1,659,618 II-58 Schedule B-5 CITY OF BANGOR,MAINE Combining Balance Sheet Nonmajor Permanent Funds June 30,2006 Revolving Other Loan Funds Funds Totals ASSETS Investments $ - $ 106,897 $ 106,897 Loans receivable 868,371 27,257 895,628 Total assets $ . 868,371 $ 134,154 $ 1,002,525 LIABILITIES AND FUND BALANCES Liabilities Totalliabilities $ - $ _ $ _ Fund balances Principal 518,149 134,154 652,303 Unexpended income 350,222 - 350,222 Total fund balances 868,371 134,154 1,002,525 Total liabilities and and fund balances $ 868,371 $ 134,154 $ 1,002,525 II- 59 � 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 30,2006 Revolving Other Loan Funds Funds Totals Revenues Investment income $ 10,767 . $ 5,805 $ 16,572 Lot sales 3,450 - 3,450 Total revenues 14,217 5,805 20,022 Expenditures Current: Payments to beneficiaries 364 2,400 2,764 Other miscellaneous - 1,010 1,010 Total expenditures 364 3,410 3,774 � Other financing sources(uses) Transfer to other funds (30,500) - (30,500) Transfer from other funds 859 - 859 Total financing sources(uses) (29,641) - (29,641) Net change in fund balances (15,788) 2,395 (13,393) Fund balances,beginning of year 884,159 131,759 1,015,918 Fund balances, end of year $ 868,371 $ 134,154 $ 1,002,525 II- 60 � This page left intentionaliy blank , ENTERPRISE FUNDS Enterprise Funds are used to account for opera�ons that are financed and operated in a manner similar to private business enterprises. The intent of the government is to have the costs of providing goods or services to the general public financed or recovered ' primarily through user charges. The government has decided that periodic determination of net income is appropriate for accountability purposes. _ --- �-� Sewer Utility Fund — This fund-accounts for the costs of co�truction and operation of the Sewage Treatment Plf t, the City sewer system, and sewer�operation activities, and is self—supported through sewer user fees. � , Airport Fund —This fu�d accounts for the o eration of Ban or Internationa) Air ort. The p 9 p principal sources of'revenues are landing fees and the sale' of aviation fuel. Other revenue sources include lease payments for the use of terminal space and non-aviation industrial buildings. Park Woods — Thi�s fund accounts for the rental of 60 units of surplus housing received�• from the federal govemment pursuant to the McKinney Homeless Assistance Act. The principal source of��evenue is rental.income. _ ; Parking Fund —.This fund accounts'for the operation of;th�e City-owned parking lots and the Pickering Square, garage. Revenue sources°include monthly lease payments for parking spaces, hourly/daily parking'��fees;� and;;,fines and waiver fees for parking violations. Certain of these facilities are operated under a private management contract. ' Bass Park Fund —This fund acco.unts for fihe operation of the Bangor auditorium, Bangor Civic Center, and Bangor State'Fair._ Principal _sources of revenue are admissions, concession sales, and rentals. The fund is named after the Bass. family, which bequeathed the property to the City for recreational purposes. Municipal Golf Course —This fund accounts for the operation of a 27 hole municipal golf course. Principal revenue sources are season memberships and daily green fees. Economic Development Fund—This fund accounts for the operation and development of . properties acquired by the City. Its purpose is to promote economic growth within the � City. The principal source of revenue is rental income. - � Schedule C 1 CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis ' Sewer Utility Fund-Enterprise Fund � For the Fiscal Year Ended June 30,2006 Variance Positive Budget Actual (Negative) Revenues . ' Charges for services $ 6,135,900 $ 6,188,273 $ 52,373 Interest and other revenue 1,161,599 75,375 (1,086,224) Total revenues 7,297,499 6,263,648 (1,033,851) Expenditures and encumbrances Salaries 955,368 955,633 (265) Fringe benefits 259,843 249,337 10,506 � Supplies and materials 1,016,292 860,630 155,662 Contractual services 614,971 597,420 17,551 Interfund charges 521,291 549,806 (28,515) ' Miscellaneous 17,700 11,513 6,187 Debt service � 3,705,089 3,661,111 43,978 � Depreciation 1,598,795 1,423,218 175,577 Outlay 206,945 40,160 166,785 Total expenditures and encumbrances 8,896,294 8,348,828 547,466 � Excess(deficiency)of revenues over/under ' expenditures and encumbrances $ (1,598,795) $ (2,085,180) $ (486,385) ' � I II-61 Schedule G2 CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances Budget and Actuat-Budgetary Basis Airport Fund-Enterprise Fund For the Fiscal Year Ended June 30,2006 Variance Positive Budget Actual (Negative) Revenues Charges for services $ 11,034,550 $ 12,074,504 $ 1,039,954 Interest and other revenue 636,228 1,003;758 367,530 Total revenues 11,670,778 13,078,262 1,407,484 Expenditures and encumbrances Salaries 4,174,174 4,144,343 29,831 Fringe benefits 934,954 813,881 121,073 Supplies and materials 1,734,050 2,064,399 (330,349) Contractual services 1,931,380 1,701,134 230,246 Interfund charges 582,900 700,160 (117,260) Miscellaneous 86,800 136,111 (49,311) Debt service 882,299 882,173 126 Depreciation 6,228,000 6,613,306 (385,306) Outlay 1,267,400 545,519 721,881 Credits (8,000) (26,279) 18,279 Total expenditures and encumbrances 17,813,957 17,574,747 239,210 Excess(deficiency) of revenues over/under Ex� expenditures and encumbrances and encumbrances $ (6,143,179) $ (4,496,485) $ 1,646,694 II - 62 Schedule C-3 CITY OF BANGOR,MAINE Schedule of Revenues,Expenditures and Encumbrances Budget and Actual-Budgetary Basis Park Woods-Enterprise Fund For the Fiscal Year Ended June 30,2006 Variance Positive Budget Actual (Negative) Revenues . � Charges for services $ 296,102 $ 287,452 $ (8,650) Operating transfer 28,009 28,009 - Interest and other revenue - 417 417 Total revenues 324,111 315,878 (8,233) Expenditures and encumbrances Salaries 61,990 63,156 (1,166) Fringe benefits 11,991 11,364 627 Supplies and materials 114,750 138,279 (23,529) Contractual services 130,560 144,915 (14,355) Interfund charges 4,570 5,689 (1,119) Miscellaneous - 50 (50) Depreciation 89,123 89,123 - Outlay 250 295 (45) Total expenditures and encumbrances 413,234 452,871 (39,637) Excess (deficiency) of revenues over/under expenditures and encumbrances $ (89,123) $ (136,993) $ (47,870) II-63 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 30,2006 Variance Positive Budget Actual (Negative) Revenues Charges for services $ 958,000 $ 957,781 $ (219) Operating transfer 310,268 310,268 - Interest and other revenue - 7,806 7,806 Total revenues 1,268,268 1,275,855 7,587 Expenditures and encumbrances Salaries 153,374 158,689 (5,315) Fringe benefits 36,547 34,230 2,317 Supplies and materials 6,450 4,257 2,193 Contractual services 326,970 317,954 9,016 Interfund charges 88,000 86,705 1,295 Debt service 655,383 655,383 - Depreciation 478,381 478,381 - Outlay 1,544 2,135 (591) Total expenditures and encumbrances 1,746,649 1,737,734 8,915 Excess(de�ciency)of revenues over/under expenditures and encumbrances $ (478,381) $ (461,879) $ 16,502 II - 64 Schedule GS 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 30,2006 Variance Positive Budget Actual (Negative) Revenues Charges for services $ 1,320,300 $ 1,460,931 $ 140,631 � Operating transfer 452,772 452,772 - � Interest and other revenue - 1,142 1,142 Total revenues 1,773,072 1,914,845 141,773 Expenditures and encumbrances Salaries 640,028 653,085 (13,057) Fringe benefits - 125,061 135,101 (10,040) Supplies and materials 249,200 315,160 (65,960) Contractual services 380,870 404,465 (23,595) Interfund charges 125,525 150,429 (24,904) Miscellaneous 65,000 59,929 5,071 Debt service 197,388 198,837 (1,449) Depreciation 176,175 88,436 87,739 Credits (10,000) - (10,000) Total expenditures and encumbrances 1,949,247 2,005,442 (56,195) Excess (deficiency) of revenues over/under Ex� expenditures and encumbrances and encumbrances $ (176,175) $ (90,597) $ 85,578 II-65 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 30,2006 , Variance � Positive Budget Actual (Negative) Revenues � Charges for services $ 663,000 $ 604,365 $ (58,635) Interest and other revenue 12,000 35,610 23,610 Total revenues 675,000 639,975 (35,025� Expenditures and encumbrances Salaries 243,374 248,490 (5,116) Fringe benefits 44,210 43,595 615 Supplies and materials 62,340 72,773 (10,433) Contractual services 71,500 54,934 16,566 Interfund charges 150,966 6I,801 89,165 Debt service 6,610 6,610 - Depreciation 98,221 100,099 (1,878) Outlay 96,000 92,400 3,600 Total expenditures and encumbrances 773,221 680,702 92,519 Excess (deficiency) of revenues over expenditures Ex� and encumbrances $ (98,221) $ (40,727) $ 57,494 expenditures and encumbrances II-66 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 30,2006 Variance , Positive Budget Actual (Negative) Revenues Charges for services $ 240,993 $ 331,541 $ 90,548 Interest and other revenue 48,473 39,473 (9,000) Total revenues 289,466 371,014 81,548 Expenditures and encumbrances Supplies and materials 29,311 31,167 (1,856) Contractual services 44,330 145,656 (101,326) Interfund charges - 2,903 (2,903) Miscellaneous 2,415 2,338 77 Debt service 222,927 222,929 (2) Depreciation 110,895 151,371 (40,476) Outlay 65,000 73,971 (8,971) Total expenditures and encumbrances 474,878 630,335 (155,457) Excess (deficiency)of revenues over expenditures and encumbrances $ (185,412) $ (259,321) $ (73,909) Excess(deficiency)of revenues over/under expenditures and encumbrances II- 67 FIDUCIARY FU N DS � . Fiduciary Funds are used to report assets held in a trustee or agency capacity for others. Agency Funds —Agency �unds 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. /-� '.� � � _ _ _ \ . � � � � ; �` � � �, ` ti ` , : 1 , _ / ;," :` �,, ,. ,, , . ,, �, '�. - ., , . Schedule D-1 � CITY OF BANGOR,MAINE Statement of Change in Assets and Liabilities Agency Fund For the Fiscal Year Ended June 30,2006 . Balance � Balance � July 1,2005.. Additions Deletions June 30,2006 ASSETS � American.Folk Festival funds $ 145,769 598,751 . 722,293 22,227 �, Bangor Area Stormwater Group - 5,734 - 5,734 School ActivityFunds - 358,091 .270,292 87,799 Total assets $ 145,769 962,576 992,585 115,760 ' LIABILITIES � , Funds held for American Folk Fesrival $ �145,769 598,751 722,293 22,227 Funds held for Bangor Area Stormwater Group - 5,734 - 5,734 Funds held for School Activity Funds - 358,091 270,292 87,799 ' Totalliabilities $ 145,769 962,576 992,585 115,760 ' � I II-68 CAPITAL ASSETS USED IN THE OPERATION � � OF GOVERNMENTAL FUNDS t. �� '� �� '��: . :;� r,, � �� :� , � f ; ; � � . � .. , �: . '� �. � -� - . R� �!r �'4 ` � .... . . . ,1 L�... i. . .. ' 1p . t / j� � v:x" F�� .<i �,�� :1;- :� �� : .,� . �;�� "�: `� � » �..'+�^�1 �` j �e ,, ..... � �':..�. � �.��'� ��.,,*6'`� .�r T x �:- ,. Schedule E-1 CITY OF BANGOR,MAINE Capital Assets Used in the Operation of Governmental Funds (net of accumulated depreciation) Schedule of Changes by Function and Activity For the Fiscal Year Euded June30,2006 Balance Balance Function and Activity 2005 Additions Deletions 2006 General govemment Animal control $ 5,138 . $ - $ 1,469 $ 3,669 BAT community connector 1,394,191 � 257,425 598,722 1,052,894 Central service 36,537 - 3,846 32,691 City clerk 13,193 30,604 1,389 42,408 City hall 353,855 195,066 34,635 514,286 Community and economic development 3,717,540 5,229,548 4,230,371 4,716,717 Engineering 39,549 29,910 17,410 52,049 Information services 586,798 45,411 87,904 544,305 Legal 8,470 - 2,420 6,050 Motor pool 3,399,920 1,057,489 552,976 3,904,433 Other-unclassified 773,896 - 74,525 699,371 Total general government 10,329,087 6,845,453 .5,605,667 11,568,873 Public safety Fire 2,137,445 1,061,038 542,246 2,656,237 Police 2,888,368 5,273,697 550,019 7,612,046 Total public safety 5,025;813 6,334,735 1,092,265 10,268,283 Health,welfare and recreation Health and welfare _ _ _ _ Parks and recreation 3,392,811 - 555,881 2,836,930 Total health,welfare and recreation 3;392,811 - 555,881 2,836,930 Public building and services Public works 20,247,851 � 2,326,028 3,556,822 19,017,057 Total public buildings and services 20,247,851 2,326,028 3,556,822 19,017,057 Education 28,246,970 876,659 1,194,189 27,929,440 Total governmental fund capital assets $ 67,242,532 $16,382,875 $ 12,004,824 $71,620,583 II-69 OTHER INF�RMATION � _ - - __ . _� - , � , . , / `� ,� I ; ; ,��- 4` , 'ti . ; ; .. . ..P�f//� � . `, � - , \ . -- . - .- /%=� ` \ .! ..\ .. ' . � •\ � Schedule F-1 CITY OF BANGOR,MAINE Assessed Valuation,Commitment and Collections For the Fiscal Year Ended June 30,2006 VALUATION Land and buildings $ 1,738,U78,800 Land and buildings-Homestead exemption 67,372,300 Personal property 254,225,800 Total valuation $ 2,059,676,900 • COMMITMENT Real estate and personal property(excludes Homestead exemption) $ 1,992,304,600 Tax rate OA2040 Total commitment 40,643,014 � ADD Supplemental taxes committed 456,976 I 41,099,990 LESS Collections 2006 39,716,755 Abatements 632,397 2006 taxes receivable at June 30,2006 $ 750,838 . i II- 70 Schedule F-2 CITY OF BANGOR,MAINE Undesignated Fund Balance Sufficiency Calculation For the Fiscal Year Ended June 30,2006 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 30,2006 undesignated fund balance. General Fund expenditures/uses(Schedule A-2) General government $ 4,271,261 Public safety 12 937 340 , , Health, welfare and recreation 4,084,948 Public buildings and services 9,023,632 Other agencies 3,833,458 Education 42,117,802 Other appropriations 3,978,239 Other uses,gross* 1,226,975 Gross expenditures and uses 81,473,655 General Fund debt service 5,792,919 Net expenditures and uses $75,680,736 Indicated undesignated fund balance @ 7.5% $ 5,676,055 Actual undesignated fund balance(Schedule A-2) $ 7,398,406 Actual undesignated fund balance as a percentage of net expenditures and uses 9_78% Over(under) funded status $ 1,722,351 * excludes amounts appropriated from undesignated fund balance II- 71 This page left intentionally blank STATISTICAL SECTION Table 1 CITY OF BANGOR,MAINE Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 Govemmental activities: Invested in capital assets,net of related debt $ 33,261,947 $ 36,123,882 $ 41,904,750 $ 44,381,677 . Restricted 507,743 510,433 513,851 1,002,525 ' Unresficted (14,135,504) (14,712,973) (15,921,621) (17,203,344) Total govemmental activities net assets 19,634,186 21,921,342 26,496,980 28,180,858 Business-type activities: Invested in capital�assets,net of related debt 147,970,359 146,349,268 150,851,b63 153,375,606 . Restricted _ _ _ _ Unrestricted 21,472,443 22,965,554 21,824,759 17,691,244 Total business-type activities net assets 169,442,802 169,314,822 172,676,422 171,066,850 Primary government: � Invested in capital assets,net of related debt 181,232,306 182,473,I50 192,756,413 197,757,283 Restricted 507,743 510,433 513,851 1,002,525 Unrestricted 7,336,939 8,252,581 5,903,138 487,900 Total primary government net assets $ 189,076,988 $ 191,236,164 $ 199,173,402 $199,247,708 Only four years have been presented because 2003 was the year GASB Statement No.34 was implemented. . III�: 1 Table 2 CITY OF BANGOR,MAINE Changes in Net Assets Last Ten Fiscal Years � (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 Expenses Governmental activities: General government $ 6,060,687 $ 6,487,572 $ 6,435,386 $ 6,947,106 � Public safety 11,114,804 12,066,567 12,478,326 12,890,750 Health,welfare and.recreation 3,340,989 3,606,827 4,000,249 7,301,546 Public building and services 7,050,085 7,360,360 7,609,989 8,256,266 Other agencies 3,322,395 3,273,003 3,514,658 3,610,935 � Education 40,828,756 40,279,055 42,659,395 45,522,795 Unclassified 2,044,069 389,598 65,639 947,025 Restircted grants* 6,551,455 6,857,039 7,326,307 - Community development* - - - 2,419,594 Streets/Sidewalks* - - - 2,911,131 Waterfront* - - - 990,961 Public transportation* - - - 1,798,968 Tax increment financing* - - - 1,092,770 Interest on debt 740,077 3,083,447 3,166,250 3,098,248 � Capital maintenance expenses* 1,824,489 2,666,118 1,674,034 - Total governmental activities expenses 82,877,806 86,069,586 88,930,233 97;788,095 Business-type activities: SewerUtility 5,744,275 5,751,710 5,859,588 5,818,127 Airport 14,489,128 15,060,963 16,368,681 16,947,056 Park Woods 449,873 531,986 598,854 540,207 Parking 1,370,737 1,431,983 1,425,508 1,322,138 Bass Park 1,944,718 1,935,653 1,889,215 1,918,111 Muncipal Golf Course 575,408 626,739 592,323 647,499 Economic Development 271,047 338,795 397,881 484,264 Total business-type activities expenses 24,845,186 25,677,829 27,132,050 27,677,402 Total primary govemment expenses $ 107,722,992 $ 111,747,415 $ 116,062,283 $125,465,497 Only four years have been presented because 2003 was the year GASB Statement No.34 was implemented. * -Amounts previsouly reported as restricted grants and capital maintenance expenses have been classified � into new functions beginning in 2006. III-2 �`�� Table 2(con't) CITY OF BANGOR,MAINE Changes in Net Assets Last Ten Fiscal Years - (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 Program Revenues Governmental activities: ' Charges for services General government $ 934,540 $ 1,103,382 $ 1,447,058 $ 1,672,854 Public safety 1,446,942 1,923,804 1,908,000 2,471,220 Health,welfare and recreation 647,709 624,778 674,364 756,207 Public buildings and services 3,043,886 3,537,702 3,766,334 4,076,981 Education 3,742,385 3,857,798 4,549,286 4,561,352 Unclassified 26,830 19,719 20,036 859,682 � Restricted grants 5,392,472 1,368,366 1,079,690 - Community development - - - 672,459 Public transportation - - - 536,491 Operating grants and contriburions 21,566,478 24,743,028 25,986,614 29,577,430 Capital grants and contributions 3,814,705 2,098,577 4,117,072 3,788,485 Total governmental activities program revenues 40,615,947 39,277,154 43,548,454 48,973,161 Business-type activities: Charges for services Sewer Utility 6,569,790 6,281,870 5,970,615 6,206,605 Airport 9,291,513 11,398,518 11,527,061 12,074,504 Park Woods 283,052 279,588 310,389 287,452 Parking 807,645 892,820 943,990 963,697 Bass Park 1,362,054 1,253,421 1,238,707 1,460,931 Municipal Golf Course 623,233 595,852 586,956 604,365 Economic Development 388,165 316,062 433,694 391,658 Capital grants and contributions 11,274,222 3,376,637 7,749,367 2,581,874 Total business-type activities program revenues 30,599,674 24,394,768 28,760,779 24,571,086 Total primary government program revenues $ 71,215,621 $ 63,671,922 $ 72,309,233 $73,544,247 Only four years have been presented because 2003 was the year GASB Statement No.34 was implemented. III-3 Table 2(con't) CITY OF BANGOR,MAINE Changes in Net Assets � Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 Net(expense)/revenue Governmental activities - $ (42,261,859) $ (46,792,432) $ (45,381,779) $(48,814,934) Business-type activities 5,754,488 (1,283,061) 1,628,729 (3,106,316) Total primary government expense (36,507,371) (48,075,493) (43,753,050) (51,921,250) General revenues and other changes in net assets Governmental activities: Property taxes 37,624,392 39,936,976 40,302,810 40,666,758 Payment in lieu of taxes 113,575 135,000 186,500 160,457 Excise taxes 4,091,505 4,306,055 4,358,409 4,752,852 Franchise taxes 233,874 225,224 265,598 274,986 Unrestricted grants and confibutions 4,059,770 4,512,720 4,487,931 4,773,082 Unrestricted investment earnings 377,113 296,857 519,225 699,417 Indirect cost charges 557,165 483,439 472,056 - Miscellaneous 598,515 131,733 8,353 32,550 Transfers (798,618) (948,416) (837,806) (861,290) Total governmental activities 46,857,291 49,079,588 49,763,076 50,498,812 Business-type activities: Unrestricted investment earnings 1,097,155 206,665 895,064 635,454 Transfers 798,618 948,416 837,806 861,290 Total business-type activities 1,895,773 1,155,081 1,732,870 1,496,744 Total primary govemment 48,753,064 50,234,669 51,495,946 51,995,556 Change in net assets Governmental activities 4,595,432 2,287,156 4,381,297 ],683,878 Business-type activities 7,650,261 (127,980) 3,361,599 (1,609,572) Total primary government $ 12,245,693 $ 2,159,176 $ 7,742,896 $ 74,306 Only four years have been presented because 2003 was the year GASB Statement No.34 was implemented. III-4 Table 3 CITY OF BANGOR,MAINE Governmental Activities Tax Revenues By Source Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 Tax Revenues Property taxes $ 37,624,392 $ 39,936,976 $ 40,302,810 $ 40,666,758 Excise taxes 4,091,505 4,306,055 4,358,409 4,752,852 Franchise taxes 233,874 225,224 265,598 274,986 Total tax revenues $ 41,949,771 $ 44,468,255 $ 44,926,817 $ 45,694,596 Only four years have been presented because 2003 was the year GASB Statement No.34 was implemented. III-5 • Table 4 CITY OF BANGOR,MAINE Fund Balances of Governmental Funds Last Ten Fiscal Years (moditied accrual basis of accounting) Fiscal Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 General Fund: Reserved $ 207,440 $ 2,428,610 $ 3,388,936 $ 2,907,605 $ 2,314,524 $ 2,204,855 $ 2,692,524 $ 2,571,692 $ 2,571,692 $ 2,188,819 Unreserved 7,686,795 6 603,821 7,777,318 10,868,363 13 022,113 15,412,411 14,575,433 11,184,543 11,184,543 10,828,439 Total general fund $ �,894,235 $ 9,032,431 $ 11,166,254 $ 13,775,968 $ 15,336,637 $ 17,617,266 $ 17,267,957 $ 13,756,235 $ 13 756 235 $13 017 258 All other governmeotal funds: Reserved $ 1,363,744 $ 1,086,210 $ 967,921 $ 969,162 $ 1,143,738 $ 1,836,653 $ 5,229,243 $ 2,599,271 $ 2,599,271 $ 3,832,469 Unreserved,reported in Speciai revenue funds (87,381) 9,276 (259,601) (315,560) (346,598) 1,029,775 2,080,184 1,997,434 1,997,434 2,215,929 Capital projects funds 1,260,018 1,524,200 968,763 1,173,695 538,858 4,622,212 (488,844) 4,211,800 4,211,800 925,634 Permanent funds 441,518 465,780 555,634 864,739 812,694 539,666 500,558 424,802 424,802 350,222 Total a(1 other govemmental funds $ 2,977,899 $ 3,085,466 $ 2,232,717 $ 2,692,036 $ 2,148,692 $ 8,028,306 $ 7,321,141 $ 9,233,307 $ 9,233,307 $ 7,324,254 III-6 Table 5 CITY OF BANGOR,MAINE Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 Revenues: Taxes: Propertytaxes $ 39,261,141 $ 39,774,952 $ 40,586,129 $ 41,101,785 Excise taxes 4,091,505 4,306,055 4,358,409 4,752,852 Tota]tax revenues 43,352,646 44,081,007 44,944,538 45,854,637 Intergovernmental 30,627,927 31,617,135 34,484,238 37,714,682 Licenses and permits 409,842 374,499 655,745 538,534 Charges for services 10,151,637 11,035,587 12,160,573 12,927,989 Program income 583,569 463,066 409,153 663,269 Revenue from money and property 1,420,582 1,162,796 1,255,959 2,349,812 Other 1,612,518 142,311 168,452 526,360 Total revenues 88,158,721 88,876,401 94,078,658 100,575,283 Expenditures: General government 4,223,670 4,619,401 4,732,331 4,642,935 Public safety 11,018,419 12,001,813 12,352,418 12,852,119 Health,welfare and recreation 3,230,938 3,480,885 3,865,578 4,084,948 Public buildings and services 7,876,895 8,180,067 8,301,848 8,991,673 Other agencies 3,157,861 3,273,003 3,514,658 3,610,935 Education 39,428,576 40,341,426 42,228,691 44,817,879 Unclassified 327,812 389,598 65,639 263,702 Restricted grants 6,510,909 6,822,298 7,282,380 8,248,872 Capital outlay 8,794,651 10,675,201 8,681,772 11,762,832. Debt service Principal 5,730,088 2,232,944 4,110,250 2,748,866 Interest 3,299,332 3,080,468 3,120,028 3,098,248 Other charges 10,028 5,570 37,467 5,070 Total expenditures 93,609,179 95,102,674 98,293,060 105,128,079 Deficiency of revenues over expenditures (5,450,458) (6,226,273) (4,214,402) (4,552,796) Other financing sources/(uses) General obliation debt 4,397,511 5,443,400 2,650,000 4,333,000 Sale of assets 232,259 131,773 106,895 120,479 Transfers to other funds (3,663,860) (5,369,448) (3,131,050) (3,099,137) Transfers from other funds 2,865,242 4,421,032 2,293,244 2,237,847 Totai other financing sources 3,831,152 4,626,757 1,919,089 3,592,189 Net change in fund balances $ (1,619,306) $ (1,599,516) $ (2,295,313) $ (960,607) Debt service as a percentage of noncapital expenditures 11.17% 6.30% 8.27% 6.08% Only four years have been presented because 2003 was the year GASB Statement No.34 was implemented. III-7 Table 6 CITY OF BANGOR,MAINE Assessed Value and Estimated Actual Value of Taxable Property* Last Ten Fiscal Years Real Property Total Taxable Total Fiscal Estimated Estimated Personal Assessed Direct Year Residential Commercial Property' Value Taz Rate 1997 722,635,700 484,321,200 � 156,506,600 1,363,463,500 22.02 1998 735,200,500 475,214,200 176,756,000 1,387,170,700 22.49 1999 746,472,500 473,478,000 188,488,200 1,408,438,700 22.g8 2000 782,055,600 485,097,500 208,423,500 1,475,576,600 22.79 2001 815,027,500 499,936,900 222,823,400 1,537,787,800 22.54 2002 841,857,900 504,871,000 241,682,200 1,588,411,100 22.78 2003 896,351,100 516,447,000 278,430,400 1,691,228,500 22.52 2004 922,374,500 549,399,100 268,555,600 1,740,329,200 22.27 2005 990,170,000 618,388,000 259,657,300 1,868,245,300 20.97 2006 1,091,628,800 713,822,300 254,225,800 2,059,676,900 19.31 * It is City policy to assess at 100%of estimated actual value. � Personal Property consists of machinery and equipment III-8 Table 7 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 1997 9.61 1.08 11.33 0.88 22.90 1998 9.64 1.28 11.57 0.86 23.35 1999 9.67 1.10 12.11 0.92 23.80 2000 9.73 0.97 12.09 0.91 23.70 2001 9.64 1.01 11.89 0.91 23.45 2002 9.81 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 8.20 1.18 11.59 1.08 22.05 2006 7.97 1.14 10.20 1.09 20.40 • III- 9 � Table 8 CITY OF BANGOR,MAINE Principal Property Taxpayers June 30,2006 2006 1997 Assessed %of Total Assessed %of Total Taxpayer Business Value Rank Tax Base Value Rank Tax Base General Electric Manufacturer $ 90,470,700 1 4.39% $ 49,429,000 1 3.63% BANMAK Associates Shopping mall 52,486,200 2 2.55% 38,659,600 2 . 2.84% Paradign Development LLG Utility 28,818,600 3 1.40% 21,608,000 3 1.58% Bangor Savings Bank Financial institution 17,119,800 4 0.83% 8,940,300 8 0.66°/a QV Realty Trust Real estate interests 13,286,100 5 0.65% - _ Eastern Maine Healthcare Medical institution 12,566,900 6 0.61% - _ May Department Stores Retailer 11,787,800 7 0.57% - _ Cabrel Company Real estate interests I 1,634,800 8 0.56% 8,575,100 10 0.63% Airport Mall Associates Shopping mall 10,987,200 9 0.53% 12,044,500 6 0.88% Bangor Retirement Retirement living 9,650,300 10 0.47% - _ Wal Mart Stores Retailer - - 15,860,200 4 1.16% Webber Oil Company Fuel distributor - - 12,860,100 5 0.94% Erin,Inc Hotels/motels - - 10,699,500 7 0.78% Fleet Bank of Maine Commercial bank - - 8,911,800 9 0.65% Totals $258,808,400 12.57% $ 187,588,100 13.76% . III- 10 Table 9 CITY OF BANGOR,MAINE Property Tax Levies and Collections Last Ten Fiscal Years %of Outstanding Ratio of %of Del[nquent Total Totai Tax Current Year Cu�rent Year Fiscal Gross Tax Abate- Net Ta�c Current Net Levy Tax Tax Collection Delinquent Delinquencies Year Levy ments Levy Coliections Coltected Coltections Collections to Net Levy Taaces to Net Levy 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 I45,123 32,466,566 31,084,751 95.74% 1,503,187 32,587,938 100.37% 1,381,815 4.26% 2000 34,069,975 246,152 33,823,823 32,809,37� 99.00% 719,683 33,529,060 99.13% 1,014,446 3.00% 2001 35,283,733 258,412 35,025,321 33,930,930 96.88% 1,565,244 35,496,174 10134% 1,094,391 3.12% 2002 36,893,245 208,211 36,685,034 35,633,029 97.13% 1,655,407 37,288,436 101.64% 1,052,005 2.87% 2003 39,081,183 311,677 38,769,506 37,785,056 97.46% 1,506,817 39,291,873 10135% 984,450 2.54% 2004 39�866�850 172�868 39�693>982 38�589,047 97.22% 1,154�693 39,743�740 100.13% 1�104,935 2.78% 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% 2006 41,099,990 632,397 40,467,593 39,716,755 98.14% 1,327,356 41,044,111 ]01.42% 750,838 1.86% III- 11 Table 10 CITY OF BANGOR,MAINE Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Business-Type Activities General General Total Fiscal Obligation Capital Obligation Revenue Primary Per Year Bonds Leases Bonds Bonds Government Capita* 1997 $ 19,688,747 387,498 39,342,533 5,365,000 64,783,778 2,058.00 1998 $ 22,188,559 287,274 39,206,893 5,160,000 66,842,726 2,146.94 1999 $ 21,254,395 352,735 41,636,421 4,940,000 68,183,551 2,214.97 2000 $ 21,909,832 293,503 38,018,202 4,710,000 64,931,537 2,073.76 2001 $ 22,806,350 223,910 37,931,078 4,465,000 65,426,338 2,078.81 2002 $ 59,135,992 150,353 42,386,491 4,205,000 105,877,836 3,351.09 2003 $ 57,669,023 326,159 47,854,061 - 105,849,243 3,355.93 2004 $ 60,879,479 3,491 47,994,390 - 108,877,360 3,450.95 2005 $ 59,419,229 - 46,774,080 - 106,193,309 3,361.08 2006 $ 61,003,363 - 45,781,229 - 106,784,592 3,436.46 * Source:Maine Department of Human Services(1991 through 1994),Maine Department of Human Services,Maine State Planning Office and City of Bangor(1995 through 2000)and U.S.Census Bureau(2001 through 2006). � III- 12 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 1997 31,479 1,363,463;500 25,763,268 1.89% 818.43 1998 31,134 1,387,170,700 28,261,855 2.04% 907.75 1999 30,783 1,408,438,700 27,205,258 1.93% 883.78 2000 31,311 1,475,576,600 27,713,328 1.88% 885.10 2001 31,473 1,537,787,800 30,434,229 1.98% 966.99 2002 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% 2,088.59 2006 31,074 2,059,676,900 66,990,510 3.25% 2,155.84 * Source:Maine Department of Human Services(1991 through 1994),Maine Department of Human Services,Maine State P►anning Office and City of Bangor(1995 through 2000)and U.S.Census Bureau(2001 through 2006). ** Net Bonded General Obligation Debt Consists of all non-self supporting general obligation debt,and excludes all Sewer Utility debt of$26,019,973,Airport debt of$8,523,365,Golf Course debt of$692,647 and Economic Development debt of$4,558,097. III- 13 Table 12 CITY OF BANGOR,MAINE Computation of Direct and Overlapping Debt June 30,2006 Percentage Amount Total Debt Applicable Applicable Outstanding to Bangor to Bangor Direct Debt City of Bangor General Obligation Bonds $106,784,592 100.00% $ 106,784,592 Overlapping Debt Penobscot County 263,415 23.64% 62,271 Total Debt $ 107,048,007 $ 106,846,863 III- 14 Table 13 CITY OF BANGOR,MAINE Legal Debt Margin Information Last Ten Fiscal Years Total Net Debt Legal Percentage of Fiscal,. Debt Applicable to Debt Net Debt to Year Limit Limit Margin Debt Limit 1997 $ 199,635,000 59,031,280 140,603,720 29.57% . 1998 $ 208,852,500 61,395,452 147,457,048 29.40% 1999 $ 212,692,500 62,890,816 149,801,684 29.57% 2000 $ 215,017,500 59,928,034 155,089,466 27.87% 2001 $ 225,630,000 64,737,428 160,892,572 28.69% 2002 $ 240,937,500 101,522,483 139,415,017 42.14% 2003 $ 241,387,500 105,523,084 135,864,416 43.72% 2004 $ 261,240,000 108,873,869 152,366,131 41.68% 2005 $ 279,202,500 106,193,307 173,009,193 38.03% 2006 $ 309,495,000 106,784,592 202,710,408 34.50% Legal Debt Margin Calculation for Fiscal Year 2006 Total State Valuation $2,063,300,000 Debt Limitation: 15 %of State Valuation 309,495,000 Debt Applicable to Debt Limitation: General Obligation Bonds: Municipal 68 992 409 , > School 11,772,211 Sewer 26,019,972 Total debt applicable to limit 106,784,592 Legal Debt margin $ 202,710,408 III - 15 Table 14 CITY OF BANGOR,MAINE Demographic and Economic Statistics Last Ten Fiscal Years Median Public Unemploy- Fiscal Household Median School ment Year Population* Income* Age* Enrollment** Rate*** 1997 31,479 Data not Data not 4,408 4.80% available available 1998 31,134 Data not Data not 4,377 3.60% available available 1999 30,783 Data not Data not 4,410 2.99% available available 2000 31,311 Datanot Datanot 4,281 2.$5% available available 2001 31,473 Data not Data not . 4,316 3.01% available available 2002 31,595 29,740 36.1 4,205 3.12% 2003 31,541 29,740 36.1 4,019 3.40% 2004 31,550 29,740 36.1 4,006 4.30% 2005 31,595 29,740 36.1 3,989 4.50% 2006 31,074 29,740 36.1 3,962 4.40% * Source: U.S.Census ** Source: Bangor School Department *** Source: Bureau of Labor Statistics III- 16 Table 15 CITY OF BANGOR,MAINE Principal Employers June 30,2006 2006 1997 Employees Employer Location Em�loyees Employer Location 1000-4000 Eastern Maine Medical Center Bangor 1000-4000 Eastern Maine Medical Center Bangor � Bangor Mall Bangor Bangor Mall Bangor University of Maine Orono University of Maine Orono City of Bangor Bangor 500-999 City of Bangor Bangor Shop& Save Supermarkets Throughout Fort James Paper Corp Old Town 500-999 Bangor Savings Bank Bangor St.Joseph Hospital Bangor General Electric Corp Bangor Community Health/Counseling Bangor Microdyne Orono Shop&Save Supermarkets Throughout Acadia Hospital Bangor Bangor Mental Health Institute Bangor St.Joseph Hospital Bangor 250-499 General Electric Corp Bangor III- 17 Table 16 CITY OF BANGOR,MAINE . Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years Full-time Equivalent Employees as of June 30th 1997 1998 1999 2000 2001 2002 2003 2004 Z005 2006 Function General government 89 87 86 90 92 93 91 90 87 88 Public safety Police 79 79 81 79 85 86 89 86 87 89 Fire 98 94 98 98 97 95 95 97 96 97 Health,welfare and recreation 78 76 71 78 33 34 33 31 31 32 Public building and services 66 69 66 62 63 66 68 67 64 68 Education 575 571 568 580 583 574 574 561 571 573 Sewer Utility 24 24 24 24 23 23 23 23 23 23 Airport 69 75 73 75 76 82 72 73 75 76 Park Woods 3 3 3 3 3 3 3 3 3 3 Parking 3 3 3 1 1 2 2 2 2 2 Bass Park 8 9 9 10 10 9 9 8 9 9 Municipal Golf Course 3 3 3 3 3 3 3 3 3 3 Economic Development 1 2 2 2 2 3 2 3 3 3 Totals 1,096 1,095 1,087 1,105 1,071 1,073 1,064 1,047 1,054 1,066 III- 18 Table 17 CITY OF BANGOR,MAINE • Operating Indicators by Function Last Ten Calendar Years Calendar Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Function Code enforcement Building permiu Unavailable Unavailable 565 509 494 471 474 522 514 537 Certificates of occupancy Unavailable Unavailable 476 388 354 295 358 342 341 432 Sign permits Unavailable Unavailable 126 120 129 85 96 98 107 115 Police Calis for service Unavailable Unavailable Unavailable Unavailable Unavailable Unavailable 22,213 24,407 23,945 27,052 Fire Calls for service Unavailable Unavailable Unavailable Unavailable Unavailable Unavailable 7,528 7,470 7,805 7,492 Sewer Treated flow(billions of gallons) 3.59 2.65 2.95 3.02 3.04 2.63 3.14 3.42 2.75 4.23 Biosolids(cubic yards) Unavailable 8,594 9,184 8,519 8,272 8,683 8,308 9,379 9,280 9,348 . III- 19 . Table 18 CITY OF BANGOR,MAINE Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year 2003 2004 2005 2006 Function Public safety Police: Stations 1 1 1 1 Vehicles � 42 56 57 51 Fire: Stations 3 3 3 3 Vehicles 25 20 20 24 Public works Streets (miles) 422 422 422 422 Sidewalks(miles) 99.6 99.6 99.6 99.6 Parks and recreation Parks 29 29 29 29 Parks acreage 950 950 950 950 Public swimming pools 1 2 2 2 Public golf courses 1.5 1.5 1.5 1.5 Indoor ice arena 1 1 1 1 Semi-pro baseball stadium 1 1 1 1 Sewer Treatment plants 1 1 1 1 Pump stations 5 5 5 5 Miles of sanitary sewers 103 103 103 103 Miles of combined sewers 44 44 44 44 Only four years have been presented because 2003 was the year GASB Statement No.34 was implemented. III-20 ,