2015CITY OF BANGOR, MAINE
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR JUNE 30, 2015
CITY OF BANGOR, MAINE
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2015
Prepared by:
Debbie Cyr, Finance Director
David Little, Tax Collector/Deputy Treasurer
CITY OF BANGOR, MAINE
Comprehensive Annual Financial Report Table of Contents
For the Fiscal Year Ended June 30, 2015
INTRODUCTORY SECTION Page
Letter of Transmittal I - 1
GFOA Certificate of Achievement I - 7
Organizational Chart I - 8
Elected Officials and Principal Administrative Officers I - 9
FINANCIAL SECTION
Report of Independent Auditors II - 1
Management’s Discussion and Analysis II - 4
Basic Financial Statements: Exhibit
Government-wide Financial Statements:
Statement of Net Position 1 II - 18
Statement of Activities 2 II - 19
Fund Financial Statements:
Balance Sheet - Governmental Funds 3 II - 20
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 4 II - 21
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to the Statement of Activities 5 II - 22
Statement of Revenues, Expenditures and Changes in
Unassigned Fund Balance - Budget and Actual - General Fund 6 II - 23 Statement of Net Position – Proprietary Funds 7 II - 24
Statement of Revenues, Expenses and Changes in
Net Position – Proprietary Funds 8 II - 26 Statement of Cash Flows – Proprietary Funds 9 II - 27
Statement of Fiduciary Net Position – Fiduciary Funds 10 II - 29
Notes to the Financial Statements II - 30
Required Supplementary Information
Schedule of Funding Progress – Retiree Healthcare Plan II – 60
Schedule of City’s Proportionate Share of Net Pension Liability II – 61
Schedule of City’s Contributions II – 62
CITY OF BANGOR, MAINE
Table of Contents, Continued
Schedule Page
Combining and Individual Fund Statements and Schedules: Balance Sheet – General Fund A – 1 II - 63
Schedule of Revenues, Expenditures and Changes in
Unassigned Fund Balance – Budget and Actual – Budgetary Basis – General Fund A – 2 II - 64
Combining Balance Sheet – Nonmajor Governmental Funds B – 1 II - 68
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds B – 2 II - 69
Combining Balance Sheet – Nonmajor Special Revenue Funds B – 3 II - 70
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Special Revenue Funds B – 4 II - 71
Combining Balance Sheet – Nonmajor Permanent Funds B – 5 II - 72
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Permanent Funds B – 6 II - 73
Combining Statement of Net Position – Nonmajor Proprietary Funds C – 1 II - 74
Combining Statement of Revenues, Expenses and
Changes in Net Position – Nonmajor Proprietary Funds C – 2 II - 76
Combining Statement of Cash Flows - Nonmajor Proprietary Funds C – 3 II – 77
Schedules of Revenues, Expenditures and Encumbrances – Budget
and Actual Budgetary Basis:
Sewer Utility Enterprise Fund C – 4 II - 79
Airport Enterprise Fund C – 5 II - 80
Park Woods Enterprise Fund C – 6 II - 81
Parking Enterprise Fund C – 7 II - 82
Bass Park Enterprise Fund C – 8 II - 83
Municipal Golf Course Enterprise Fund C – 9 II - 84
Economic Development Enterprise Fund C – 10 II - 85
Stormwater Utility Enterprise Fund C – 11 II - 86
Fiduciary Funds:
Statement of Change in Assets and Liabilities – Agency Fund D – 1 II - 87
Capital Assets Used in the Operation of Governmental Funds:
Schedule of Changes by Function and Activity E – 1 II - 88
Other Information:
Assessed Valuation, Commitment and Collections F – 1 II - 89
General Fund Unassigned Fund Balance Sufficiency Calculation F – 2 II - 90
CITY OF BANGOR, MAINE
Table of Contents, Continued
STATISTICAL SECTION
Table Page
Financial Trends: Net Position by Component 1 III – 1
Changes in Net Position 2 III – 2
Governmental Activities Tax Revenues by Source 3 III – 5 Fund Balances of Governmental Funds 4 III – 6
Changes in Fund Balances of Governmental Funds 5 III – 7
Revenue Capacity:
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 – 11
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
Operating Information:
Full-time Equivalent City Government Employees by Function 16 III – 18
Operating Indicators by Function 17 III – 19
Capital Asset Statistics by Function 18 III – 20
INTRODUCTORY SECTION
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FINANCE DEPARTMENT Deborah A. Cyr, Finance Director
(207)992-4260
fax (207)945-4446 debbie.cyr@bangormaine.gov
73 Harlow Street • Bangor, Maine 04401
December 23, 2015
To the Honorable Chair,
Members of the Bangor City Council, and
Citizens of Bangor
In accordance with the requirements of both our City Charter and state statutes, the
City of Bangor’s comprehensive annual financial report for the fiscal year ended June
30, 2015 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 City are protected from loss,
theft, and misuse and 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.
During 2015, the City implemented Governmental Accounting Standards Board
(GASB) Statement 68, Accounting and Financial Reporting for Pensions, to account
for the addition of the City’s proportionate share of the Maine Public Employees
Retirement System’s net pension liabilities and associated deferred inflows and
outflows.
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
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statement presentation. The independent auditor’s unmodified opinion is presented
as the first component of the financial section of this report.
The City is required to undergo an annual single audit in conformity with the
provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of
Management and Budget’s Circular A-133, Audits of States, Local Government and
Non-Profit Organizations. Information related to this single audit, including a
schedule of expenditures of federal awards, findings, questioned costs,
recommendations, and the independent auditor’s reports on the internal control
structure and compliance with applicable laws and regulations, is included in a
separately issued single audit report.
Governmental Accounting Standards Board (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, which occupies approximately 35 square miles on the western
shore of the Penobscot River, was first settled in 1656, incorporated as a town on
February 25, 1791 and as a city on February 12, 1834. The City of Bangor is the
third largest City in Maine, and serves as the County Seat for Penobscot County. As
a result, Bangor serves as the major trade, distribution, service, and commercial
center for the central, eastern, and northern portions of the State.
Bangor has operated under a Council-Manager Charter, since 1931. 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 City’s schools are governed by a seven-member School Committee. Its
members are elected at large to staggered three-year terms. By Charter, the School
Committee has all the powers and performs all the duties related to the care and
management of the public schools of the City. The Committee annually furnishes to
the City Council an estimate of sums required for school purposes for the ensuing
municipal year. The City Council makes a single gross appropriation for this
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purpose, which must be ratified by the voters of Bangor at a referendum held in
June prior to the start of the City’s fiscal year. Once approved, the expenditure of
this appropriation is under the direction and control of the School Committee. The
School Committee employs the Superintendent of Schools as its chief operating
officer.
The City provides a full range of municipal services including police and fire,
highways and sanitation, health and welfare, parks and recreation, education, public
transportation, planning, business and economic development, code enforcement,
and general administrative services which are accounted for in the City’s General
Fund. Additionally, the City of Bangor owns and operates the Bangor International
Airport, sanitary sewer services, storm water utility, the Bass Park Complex (Cross
Insurance Center), parking, golf course, economic development, and a transitional
housing complex (the housing complex operation was disposed of June 30, 2015)
which are accounted for in the City’s enterprise funds.
The City’s budgeting process is structured around its fiscal year, which begins on
July 1st and ends on the following June 30th. The City annually adopts budgets for
its General Fund and eight enterprise funds. The City Charter requires that the City
Manager submit a recommended budget to the Council by the second Monday in
April. The budget, which must be in balance, contains estimates of all non-tax
revenues and receipts expected to be received during the next fiscal year, the
expenditures necessary to support City operations, debt service requirements, and
the tax levy required to achieve balance between revenues and expenditures. The
Council may modify recommended expenditures and the recommended tax levy. If
the Council fails to adopt a budget by July 1st, the City Manager’s proposed budget
automatically becomes that fiscal year’s budget. In either case, an appropriate
property tax levy is established and filed with the City Assessor, who then sets the
necessary property tax rate.
The annual budget serves as the foundation for the City’s financial planning and
control and is prepared by fund, function, and department. The City Manager may
transfer resources within a department; however, transfers between departments
require Council action.
Special revenue funds do not have 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 appropriation resolves.
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Factors Affecting Financial Condition
Local Economy. The City of Bangor is recognized as the major service center in
northern and eastern Maine for communications, banking, commercial, industrial,
healthcare, and governmental sectors of the State. In addition, Bangor serves as
northern New England's economic link to the Canadian Maritimes and eastern
Quebec.
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 2015 unemployment rate of 4.6% continues to be
on par with or below both country and state rates of 5.3% and 4.7%, respectively.
Bangor serves as one of the largest retail markets in Maine. 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 hub of the six 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 is proportionally
higher. In FY 2015, Bangor’s retail taxable sales were $1.63 billion and represent
8.68% of total State retail taxable sales.
Further evidence of continuing sustained growth is the change can be measured by
the City’s assessed value of real and personal property. The annual increase in
assessed value is a combination of three factors: 1) market adjustments to existing
property, 2) new construction/additions, and 3) personal property depreciation.
Although assessed valuations have remained relatively flat since the FY 2011
economic downturn, the City has experienced a total increase in assessed valuations
over the past decade of 3.76%, which is comparatively moderate. Although the City
experienced moderate increases in assessed valuations, the City also realized
significant reductions in State funded Revenue Sharing and Aid to Education, which
resulted in reductions of 14.95% in non-tax revenues. As a result, the City
implemented a number of cost control measures, including work force reductions.
Despite the cost control measures, the reductions in revenues resulted in an overall
increase of 6.42% in the tax rate from 2006 to 2015. The City has estimated that
reductions of state funding caused the City tax rate to increase by $3.26.
The City is committed to preserving its viable economic base while creating new
opportunities for future residential and commercial growth. To achieve these
objectives, the City is proactive in supporting economic activity through planned
capital improvements, innovative financing, and aggressive marketing as well as
enhancing our citizens’ quality of life.
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Long-term financial planning and major initiatives. The City’s capital
improvement plan is an integral part of the annual budget process. A complete list
of near term improvements is submitted as part of the City Manager’s budget
submission for all City functions. The plan includes projects anticipated within the
coming one to two year period with an indication of how the City anticipates funding
the improvements. Certain improvements are longer term in nature and are
updated and reviewed via the City Council’s Committee structure on an as needed
basis.
The City has made significant investments in its operating and capital infrastructure
to support its economic base. Major areas of investment include:
Construction of the Cross Insurance Center, a 5,800 seat state of the art
arena and adjoining conference center;
$14 million reconstruction of Bangor International Airport’s domestic air
service terminal;
Expansion of C&L Aerospace, which provides worldwide operators with
aircraft parts, service, maintenance, sales and leasing services, which created
over 120 jobs in Bangor;
Revitalization of the City’s core downtown to encourage mixed use
development, including residential, commercial and cultural opportunities;
Improvements to our local environment and protection of natural resources,
the major emphasis being storm water management with the implementation
of a storm water utility in order to fund the associated costs.
The City is proactively addressing quality of life issues and housing opportunities.
Key initiatives to date include:
Implementation of the west side neighborhood revitalization plan;
Enactment of disruptive property ordinance and foreclosed property
registration program;
Provided assistance to homeowners through CDBG funding including
expansion of two programs;
Sustained commitment to academic excellence for all;
Continued support of arts and culture.
Finally, the City has taken measures to implement significant technology
improvements that will improve overall efficiency including the implementation of a
new financial system; upgrades to GIS mapping; implementation of a new website,
a mobile app and expanded presence on social media.
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Relevant Financial Policies. City policy prescribes uses for unassigned fund
balances. In general, unassigned fund balance is not to be used to fund any portion
of the on-going and routine year-to-year operating expenditures of the City. It is to
be used primarily to ensure adequate fund balances, to respond to unforeseen
emergencies, and to provide overall financial stability.
By Charter, the City is to maintain an unassigned fund balance of no more than
16.66% and no less than 8.33% of prior year expenditures and the Council has
determined that a reasonable target is 8.33%. Unassigned fund balance in the
General Fund as of June 30, 2015 was 10.86% of expenditures, net of debt service.
Awards and Acknowledgements. The Government Finance Officers Association
(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, 2014. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that
our current comprehensive annual financial report continues to meet the Certificate
of Achievement Program’s requirements, and we are submitting it to the GFOA for
consideration for another certificate.
The preparation of this document would not have been possible without the hard
work of all of the City’s employees. Each one contributes on a daily basis, simply by
carrying out the responsibilities of their positions.
Our sincerest thanks are once again extended to our citizens and the Bangor City
Council for their continued support for our efforts to further develop the City’s
financial management and reporting capabilities. We are confident that we have
once again met their expectations.
Respectfully submitted,
Debbie Cyr
Finance Director
CITYMANAGER
CITIZENSOFBANGOR
CITIZENCOMMISSIONS CITIZENBOARDS
CITYCLERK
CITYCOUNCIL
ASSESSINGCITYSOLICITOR
VOTER
REGISTRATION
ANIMALCONTROL
ELECTIONS
CITY OF BANGOR ORGANIZATIONAL CHART Revised (09-13)
FINANCE
AUDITING
TREASURY
RISK &ENVIRONMENTALMANAGEMENT
INFORMATIONSERVICES
PURCHASING
PUBLIC WORKS
SEWERMAINTENANCE
WASTEWATERTREATMENT
HARBOR
ENGINEERING
PLANNING
CODEENFORCEMENT
INFRASTRUCTURE AND
DEVELOPMENT SUPPORT
POLICE
DETECTIVE
PATROL
ADMINISTRATION
SERVICES
COMMUNITY &ECONOMIC DEV.
COMMUNITYDEVELOPMENT
ECONOMICDEVELOPMENT
DOWNTOWNPROGRAMS
PARKINGMANAGEMENT
BANGORINTERNATIONALAIRPORT
CROSS INSURANCE CENTER
STATEFAIR
BASS PARK
ADMINISTRATION
FIREPREVENTIONBUREAU
FIREFIGHTING
FIRE
LABORRELATIONS
ADMINISTRATIVESERVICES
HUMANRESOURCES
FLEETMAINTENANCE
BATCOMMUNITYCONNECTOR
CENTRALSERVICES
HEALTH ANDCOMMUNITYSERVICES
GOVERNMENT
OPERATIONS
PARKSMAINTENANCE
RECREATION
PARKS ANDRECREATION
GOLFCOURSE
RECORDS
BANGOR REGION PUBLIC HEALTH & WELLNESS DIVISION
HOUSING & COMMUNITY SERVICES DIVISION
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City of Bangor, Maine
Elected Officials and Principal Administrative Officers June 30, 2015
City Council
Nelson Durgin, Chair
Joseph Baldacci Patricia Blanchette
Pauline Civiello Sean Faircloth
Gibran Graham David Nealley
Joshua Plourde Benjamin Sprague
City Staff
Catherine M. Conlow, City Manager
Philip Drew, City Assessor
Lisa Goodwin, City Clerk
Norman Heitmann, City Solicitor
School Committee
Warren Caruso, Chair
Marc Eastman Susan Hawes
Sarah Smiley Susan Sorg
Marlene Susi Jay Ye, Vice Chair
School Staff
Betsy Webb, Superintendent of Schools
FINANCIAL SECTION
II-1
Certified Public Accountants and Business Consultants
Independent Auditor’s Report
City Council
City of Bangor, Maine:
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the discretely presented component unit, each major fund, and the aggregate remaining
fund information of the City of Bangor, Maine, as of and for the year ended June 30, 2015,and the
related notes to the financial statements,which collectively comprise the City’s basic financial
statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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City Council
City of Bangor, Maine
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City
of Bangor, Maine, as of June 30, 2015, and the respective changes in financial position and,where
applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the schedules of funding progress for the retiree’s health care plan, the
schedule of the City’s proportionate share of the net pension liability, and the schedule of City
contributions, as listed in the table of contents,be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Bangor, Maine’s basic financial statements. The introductory section,
combining and individual fund financial statements, other schedules, and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations,is also not a required part of the basic financial statements.
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City Council
City of Bangor, Maine
The combining and individual fund financial statements, the detailed budgetary comparison schedule,
the schedule of expenditures of federal awards, the other schedules and statistical section are the
responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been subjected
to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America.
In our opinion, the combining and individual fund financial statements and schedules are fairly stated,in
all material respects,in relation to the basic financial statements 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 do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 21,
2015, on our consideration of the City of Bangor, Maine’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City of Bangor, Maine’s internal control over financial reporting and compliance.
December 21, 2015
South Portland, Maine
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MANAGEMENT’S DISCUSSION AND ANALYSIS
Management of the City of Bangor offers this narrative overview and analysis of the financial
activities of the City for the fiscal year ended June 30, 2015. In addition to comparative
information from the government-wide statements, comparative data is also 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 and deferred outflows of the City of Bangor exceeded its liabilities and deferred
inflows at the close of the most recent fiscal year by $194.0 million (net position).
At the close of fiscal year 2015, the City of Bangor’s governmental funds reported combined
ending fund balances of $26.8 million, an increase of $.8 million over the prior year balance of $26.0 million. The increase is due wholly to excise tax receipts exceeding estimates
within the General Fund. All other governmental fund fund balances remained relatively
unchanged from prior year amounts. Approximately 76% of the total amount, or $20.3
million, is either committed, assigned or unassigned and is available for spending at the City Council’s discretion, if needed.
The City of Bangor has a fund balance policy. By Charter, the City is to maintain an
unassigned fund balance of no more than 16.66% and no less than 8.33% of prior year expenditures, net of debt service and the Council has determined that a reasonable target is
8.33%. At the end of the current fiscal year, unassigned fund balance for the General
Fund was $10.0 million, or 10.86% of the general fund expenditure base. The annual
calculation is included within the financial statements as Schedule F-2.
The total liabilities and deferred inflows of resources of the City’s governmental activities
decreased $3.4 million over the restated prior year balance. The decrease is primarily due
to a reduction in accounts payable, which can vary significantly due to the timing of invoices received and/or the projects being undertaken and a reduction in general obligation debt.
Enterprise fund liabilities and deferred inflows of resources remained relatively unchanged
increasing $116 thousand over the restated prior year balances.
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 - 5
The statement of net position includes all of the City’s assets, liabilities and deferred inflows and
outflows, with the difference between them reported as net position. Over time, increases or
decreases in net position 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 position changed during the most recent fiscal year. All changes in net position 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 are
accrued but not yet paid or collected but will result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused employee vacation leave).
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, Stormwater Utility, Parking, Golf Course, Economic Development, and the Park Woods Complex.
The government-wide financial statements can be found on pages II-18 to II-19 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City
of Bangor, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City
can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds are used to account for mostly 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, Arena 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. 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.
II - 6
2015 2014*2015 2014*2015 2014*
Current & other assets 40,071,698 40,224,214 26,939,311 25,355,267 67,011,009 65,579,481
Capital assets, net of
accumulated depreciation 78,323,398 77,801,071 230,272,012 232,829,008 308,595,410 310,630,079
Total assets 118,395,096 118,025,285 257,211,323 258,184,275 375,606,419 376,209,560
Deferred outflows of resources 1,872,874 1,265,932 249,572 163,996 2,122,446 1,429,928
Total deferred outflows 1,872,874 1,265,932 249,572 163,996 2,122,446 1,429,928
Long-term debt outstanding 76,883,732 82,430,912 86,022,899 86,907,493 162,906,631 169,338,405
Other liabilities 6,106,273 6,941,010 5,733,542 5,463,473 11,839,815 12,404,483
Total liabilities 82,990,005 89,371,922 91,756,441 92,370,966 174,746,446 181,742,888
Deferred inflows of resources 8,213,055 5,200,850 730,549 - 8,943,604 5,200,850
Total deferred inflows 8,213,055 5,200,850 730,549 - 8,943,604 5,200,850
Net position:
Net investment in capital assets 50,030,025 49,674,874 156,544,970 159,116,820 206,574,995 208,791,694
Restricted 1,028,381 1,027,484 - - 1,028,381 1,027,484
Unrestricted, as restated (21,993,496) (25,983,913) 8,428,935 6,860,485 (13,564,561) (19,123,428)
Total net position 29,064,910 24,718,445 164,973,905 165,977,305 194,038,815 190,695,750
* Restated - Refer to Note H
Governmental
Activities
Business-type
Activities Total
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 eight individual proprietary funds, of which the Sewer Utility, Airport, and
Bass Park Funds are considered to be major. Data from five other proprietary funds is
combined into a single aggregated presentation. Individual fund data for each of these
non-major proprietary funds is provided in the form of combining statements (Schedule C)
elsewhere in this report. 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 budgets (Schedule C4 – C11).
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. The
Fiduciary Statement of Net Position is included in this report as Exhibit 10.
Notes to the financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and fund financial
statements. The notes can be found on pages II-30 through II-59 of this report.
Government-wide Financial Analysis
The following is a condensed version of the Statement of Net Position.
II - 7
By far the largest portion of the City’s net position reflects its net 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 position refers to
those resources that are subject to external restrictions on how they may be used; such as
donor, legal or granting agency restrictions. While the remaining balance of unrestricted net
position has a deficit of $13.6 million, the governmental activities deficit of $22.0 million is
partially offset by the business type activities balance of $8.4 million. The governmental activities deficit is primarily due to $22.2 million in outstanding pension obligation bonds.
Governmental activities net position increased $4.3 million. The major components associated
with the increase in governmental activities net position is a reduction of the net pension liability and related deferred inflows of $915 thousand, excise tax receipts exceeding estimates
by $445 thousand, and $3.1 million in additional property tax revenue. During FY 15, the City
implemented GASB 68, Accounting and Financial Reporting for Pensions, to account for the addition of the City’s proportionate share of the Maine Public Employees Retirement System’s
net pension liabilities and associated deferred inflows and outflows.
Business-type net position decreased $1 million over FY 2014 restated net position. The
decrease in net position is largely due to the fact that user fees cannot absorb annual
depreciation expense, due to the significant costs of infrastructure, specifically within the Airport
Fund and Bass Park Fund. This impact was dampened by increased sewer user fees. Sewer
user fees have been adjusted annually to ensure adequate resources to fund improvements
required under a recently completed consent decree with the EPA (Refer to Note C).
II - 8
2015 2014 2015 2014 2015 2014
Revenues
Program Revenues
Charges for services 18,492,398 17,634,792 27,236,139 26,221,323 45,728,537 43,856,115
Operating grants & contributions 33,541,085 34,600,320 193,061 - 33,734,146 34,600,320
Capital grants & contributions 1,540,614 1,720,879 6,947,799 4,039,968 8,488,413 5,760,847
General Revenues
Property and other taxes 61,646,435 58,155,135 800,000 750,000 62,446,435 58,905,135
Grants and contributions not
restricted to specific programs 3,794,664 3,787,128 - - 3,794,664 3,787,128
Other 824,914 512,292 462,069 504,584 1,286,983 1,016,876
Total Revenues 119,840,110 116,410,546 35,639,068 31,515,875 155,479,178 147,926,421
Expenses
General government 6,871,396 7,110,075 - - 6,871,396 7,110,075
Public safety 17,933,525 18,050,107 - - 17,933,525 18,050,107
Health, community and recreation 9,692,379 9,586,571 - - 9,692,379 9,586,571
Public services 12,956,599 14,249,015 - - 12,956,599 14,249,015
Other agencies 4,638,805 6,799,934 - - 4,638,805 6,799,934
Education 52,297,774 50,594,050 - - 52,297,774 50,594,050
Arena development - 500,566 - - - 500,566
Community development 1,316,591 2,178,972 - - 1,316,591 2,178,972
Waterfront 360,004 272,857 - - 360,004 272,857
Public transportation 2,784,081 2,782,968 - - 2,784,081 2,782,968
Interest on debt 2,604,030 2,464,804 - - 2,604,030 2,464,804
Economic development (tif)1,568,811 1,440,452 - - 1,568,811 1,440,452
Sewer Utility - - 6,603,195 6,843,975 6,603,195 6,843,975
Airport - - 20,893,894 20,855,066 20,893,894 20,855,066
Park Woods - - 507,210 497,833 507,210 497,833
Stormwater Utility - - 241,082 149,590 241,082 149,590
Parking - - 978,658 925,595 978,658 925,595
Bass Park - - 7,855,957 6,317,039 7,855,957 6,317,039
Municipal Golf Course - - 849,164 643,323 849,164 643,323
Economic Development - - 698,294 628,252 698,294 628,252
Total Expenses 113,023,995 116,030,371 38,627,454 36,860,673 151,651,449 152,891,044
Excess (deficiency) before special
items and transfers 6,816,115 380,175 (2,988,386) (5,344,798) 3,827,729 (4,964,623)
Special Item - - (484,664) - (484,664) -
Transfers (2,469,650) (3,170,717) 2,469,650 3,170,717 - -
Change in net position 4,346,465 (2,790,542) (1,003,400) (2,174,081) 3,343,065 (4,964,623)
TotalActivities
Business-type
Activities
Governmental
Changes in Net Position
The following is a condensed version of the Statement of Activities.
II - 9
Governmental Activities
The cost of all governmental activities was $113.0 million. As shown on the Statement of
Activities, the total amount financed by the property tax was $55.3 million, or 49% of expenses.
Those who directly benefit from an activity provided $18.5 million in payments. Other governments and organizations subsidized certain activities with operating grants and
contributions in the amount of $33.5 million. Capital grants and contributions accounted for
$1.5 million. The City also received $11 million in other general revenues such as state revenue
sharing, motor vehicle and boat excise taxes, homestead exemptions, and interest earnings.
Total governmental activities expenses decreased $3.0 million over the prior year. During FY 2014, the Community Development Block Grant program spent down a significant amount of
prior years accumulated program income, therefore FY 2015 expenses decreased by $862
thousand. FY 2014 other agencies expenses included one-time contributions to the Bangor
Public Library’s capital campaign, as a result FY 2015 expenses have decreased by $2.2 million.
Public services expenses decreased as resources were invested in capital assets additions such
as; Main Street, West Market Square and Court Street reconstructions, in lieu of street and
sidewalk maintenance. Lastly, as of July 1, 2014, the Southern Penobscot Regional Program for
Children with Exceptionalities (SPRPCE) transitioned to the Bangor School Department, which
accounts for the increase in education expenses. The SPRPCE was established by fourteen
school units to comply with US Public Law 94-142 that “guaranteed a free appropriate
education to each child with a disability”. During FY 2015, City employees did receive a cost of
living adjustment of 2% and realized health insurance increases of 6% which resulted in
approximately $208 thousand of increased expenses.
0
10
20
30
40
50
60
(in millions)General GovernmentPublic SafetyPublic ServicesHealth, Community & RecreationOther AgenciesEducationArena DevComm DevelopWaterfrontPublic TransportationEcon DevelopInterest on DebtExpenses and Program Revenues - Governmental Activities
Expenses
Revenues
II - 10
Total governmental activities’ revenues increased $3.4 million, or 2.9%. The largest single
source of revenue continues to be the property tax, which increased $3.1 million. In addition,
the City realized one time increases in excise taxes of $445 thousand. Capital grants and
contributions decreased $180 thousand due to less Homeland Security Grant funds utilized for
public safety purposes. Operating grants and contributions decreased $1.1 million due to lower
State and Federal funding of education. In total, charges for services increased $858 thousand.
Education charges for services increased $1.25 million, primarily due to the inclusion of the
SPRPCE program fees from sending school units. Building permits decreased $681 thousand as
FY 2014 included permit fees for a significant healthcare facility expansion.
Business-type Activities
Total business-type activities expenses increased $1.8 million compared to prior year levels. For
FY 2015, the City employees working in business-type activities did receive a cost of living
adjustment of 2% and realized health insurance increases of 6%. Lastly, the most significant
increase in business-type activities expenses of $1.5 million is related to the operation of the
City’s new arena and conferences center, the Cross Insurance Center, which was open for the
entirety of FY 2015 and is reported within the Bass Park Fund.
Revenues by Source - Governmental Activities
28%1%
47%
5%3%1%15%
Charges for Services
Operating Grants & Contributions
Capital Grants & Contributions
Property Taxes
Other General
Unrestricted Grants & Contributions
Other Unrestricted
II - 11
In total, business-type activities revenue increased $4.1 million or 13.1%, the $2.9 million
increase in capital grants and contribution was related to the Airport capital grants associated
with the domestic terminal renovation project. Charges for services increased $1 million due to both the Cross Insurance Center and the Stormwater Utility Fund being in operation for all of FY
2015.
Revenues by Source - Business-type Activities
TIF
2%
Capital Grants and
Contributions
18%Operating
Contributions
1%
Transfers
7%
Charges for Services
72%
Charges for Services
Operating Contributions
Capital Grants and
Contributions
Transfers
TIF
0
5
10
15
20
25
(in millions)Sewer UtilityAirportPark WoodsStormwaterParkingBass ParkGolf CourseEcon DevelopExpenses and Program Revenues - Business-type Activities
Expenses
Revenues
II - 12
Financial Analysis of the Government’s Funds
Governmental funds. The focus of the City’s governmental funds reporting is to provide
information on near-term inflows, outflows, and balances of spendable resources. Fund
balance is the measure of a governmental fund’s spendable resources. Governmental funds
report fund balances in one of five possible classifications. The nonspendable portion of fund
balance cannot be spent. Restricted fund balances are subject to externally enforceable legal restrictions. Committed fund balances are subject to limitations the City Council has imposed,
that are binding unless removed in the same manner. Assigned fund balances reflect the
intended use of resources. Unassigned fund balances are resources which have not been
classified in any other category. Only the General Fund can report a positive unassigned fund balance amount.
At fiscal year end, the City of Bangor’s governmental funds reported combined ending fund
balances of $26.8 million, an increase of $888 thousand over the prior year balance. The
increase is due wholly to excise tax receipts exceeding estimates by $1.2 million within the
General Fund. The majority of this increase was due to certain rental car agencies registering
significantly more vehicles in the City during FY 15. All other governmental fund fund balances
remained relatively unchanged from prior year amounts. Of the ending balance of $26.8
million, approximately 76% of this total ($20.3 million) is either committed, assigned or
unassigned and is available for spending by formal action of the City Council and $3.5 million,
or 13.1%, is restricted. The remainder is nonspendable, indicating that it is in the form of
nonspendable assets such as inventory, prepaid expenditures and allowance for advances made
to other funds.
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 General Fund’s
total fund balance was $18.2 million, a $1.2 million increase from the prior year’s balance of
$17.0 million. The overall increase in fund balance is related to additional automobile excise tax
receipts.
The Community Development Block Grant Fund accounts for the annual entitlement grant funds
received under the Housing and Community Development Act of 1974. Total expenditures for FY 2015 were significantly lower compared to the prior year, which was as expected as in FY
2014 the City had set aside funding for specific targeted areas including the west side
neighborhood revitalization, enhanced residential rehabilitation programs and specific economic
development projects, which were completed during the prior year. While the FY 2015 federal
funding amount remained relatively flat, it does represent a nearly 35% reduction since FY
2012.
The Arena Fund accounts for the allocation of slot and table game revenues received by the
City from the operation of the casino. The fund was established to finance the cost to replace
the aging Bangor Auditorium and Civic Center. During the year, the Arena provided $2.1 million
towards the annual debt service costs of the Cross Insurance Center.
The Capital Projects Fund varies significantly from year to year depending upon City Council
priorities and available funding opportunities. Total expenditures decreased $4.8 million over the prior year. Significant project costs incurred in FY 2014 included $2.5 to replace the Bangor
II - 13
Public Library dome, $1.1 million to renovate Cameron Stadium, a multi-sport school based
facility and $1 million of general school facilities improvements.
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 net position of the eight enterprise funds by decreased $1 million to $165.0 million versus the restated net FY 2014
net position of $166.0 million (See Note H – Restatement). The overall decrease in net position
is driven by the fact that depreciation expense within the Airport and Bass Park Funds
significantly exceeds capital acquisitions. The overall decrease is partially offset by increased
capital grants received by the Airport Fund and increased revenues resulted from an entire year
of operations for the Cross Insurance Center and sewer user fee increases, all other operating
revenues and expenses remained relatively flat. Of note, is the fact that the City sold the operation and assets for the Park Woods Fund on June 30, 2015 (Refer to Note G).
General Fund Budgetary Highlights
For budgetary financial statement purposes, all balances carried from the prior year are added
to the subsequent year’s total appropriation. This resulted in an overall budgetary increase of $2.8 million. There were minimal additional amendments to the originally adopted budget. The
City’s commitment to budgetary integrity continues, actual operating revenues ended the year
over budget estimates 3.46%, or $3.4 million, municipal expenditures were over budget by
0.60%, or $300 thousand. Education expenditures were under budget by $2.8 million or 5.4%
and by statute, education balances must be segregated from municipal balances.
Capital Asset and Debt Administration
Capital assets. As of June 30, 2015, the City of Bangor’s investment in capital assets for its
governmental and business-type activities amounted to $308.6 million (net of accumulated
depreciation), a decrease of $2.0 million over the prior year. This investment includes land,
buildings, machinery and equipment, roads, runways, and sewer lines. Depreciation expense of
$17.7 million exceeded the City’s investment in capital assets for the current fiscal year of $16.2
million. Governmental activities invested $4.7 million, and business-type activities invested
$11.5 million and depreciation expense was $4.1 million and $13.6 million, respectively.
Major capital asset events during the current fiscal year included the following;
The School Department utilized its allocation of Qualified School Construction Bonds and
operating funds to capitalize $845 thousand in rehabilitating and upgrading the City’s
various school facilities.
The School Department invested $400 thousand to upgrade its aging multi-sport facility,
Cameron stadium.
The City continues to invest in its core functions of infrastructure and vehicle replacements.
This year the City expanded its surface infrastructure with traffic enhancements and open
space infrastructure upgrades, which amounted to $2.3 million and spent $1.1 million to
replace vehicles.
The Airport Fund invested $8.7 million in operational assets at Bangor International Airport.
The Airport is in the midst of a $13.5 million dollar renovation of its domestic terminal
building. The project entails the reconfiguration of the entire first floor to better serve
passengers such as; new airline and rental car counters, a behind the wall in-line baggage
II - 14
screening, restrooms and overall aesthetic improvements. The project includes federal and
passenger facility charge funds and a $1.6 million local share. During FY 2015, $5.8 million
was invested in this project. In addition to the terminal project, the Airport invested nearly
$2.6 million in runway system upgrades which are funded through the Federal Department
of Transportation’s Airport Improvement Plan.
The Sewer Fund invested $2.8 million in sewer replacement and separation projects.
On June 30, 2015, the City sold the Park Woods Fund operation including its $2.3 million of
assets (Refer to Note G – Disposal of Operations).
Capital Assets (net of depreciation)
Governmental Business-type
Activities Activities
Land and improvements 11,625,021 4,802,820
Buildings and improvements 43,707,180 69,951,475
Machinery and equipment 1,685,481 3,052,690
Vehicles 7,364,090 -
Infrastructure 11,057,323 46,113,121
Parking structures - 2,437,150
Aircraft operational assets - 91,347,139
Construction in process 2,884,303 12,567,617
Total 78,323,398 230,272,012
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 $145.7 million, a decrease of
$1.3 million during the year.
The City’s general obligation debt obtained a “AA-” rating from Standard & Poor’s and a “Aa2” rating from Moody’s.
Bonded Debt Outstanding (in millions)
$81.2 $64.5
Governmental Activities
Business-type Activities
II - 15
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 $381.6 million,
an amount which is significantly in excess of existing general obligation debt.
In November 2012, residents approved a citizen-initiated Charter amendment to require voter ratification of certain debt issuances. Voter ratification will be required for individual projects in
excess of five one-hundredths of one percent of the City’s last certified State Valuation, that do
not meet certain exemptions such as streets, sewer, self-supporting enterprise funds,
refunding, etc.
Additional information on the City’s long-term debt can be found in Note I on pages II-45 to II-
48 of this report. Quality of Life
Bangor offers a diversity of experiences for our residents and visitors alike. The City serves as
the urban, commercial, healthcare, governmental service and cultural center of a large
geographic area. This diversity coupled with the City’s commitment to support core municipal services, academic excellence and arts and culture distinguishes it from surrounding
communities. While this activity has been beneficial to our citizens and the region, it presents
some additional social challenges for Bangor. Specifically, Bangor serves as the regional center
for medical care, social services and affordable housing. Unfortunately, significant reductions in
State GA funding, housing assistance, mental health treatments, and medical reimbursements
as well as Federal reductions in programs such as Community Development Block Grants have
created significant challenges for the City. Moreover, these reductions were implemented just as significant job losses were occurring throughout the region.
These challenges have led the City to be more proactive in its approach to dealing with issues
that have arisen. For example, a west side neighborhood was identified as needing strategic
investment to encourage and foster single occupancy ownership. Over the past few years the
City has expended $1 million on infrastructure improvements, such as sidewalks, parks and
streets, the acquisition and redevelopment of blighted housing stock as well as provided
opportunities for residents to invest in their own homes through loans and incentives for home
ownership. Additionally, the City implemented a disruptive property ordinance, which will allow
the City to work with landlords directly if tenants are causing disruptions in neighborhoods. A
foreclosed property registration program was established, which provides staff with access to the entities tasked with maintenance of properties during the foreclosure process to ensure
properties are properly maintained. Additionally, the City has been aggressive in identifying
blighted housing and removing them or getting them restored and sold. Lastly, the City has been at the center of a community group to address substance abuse issues. The group
includes all major healthcare providers in our area and has made great strides in educating,
working to standardize best practices, and promoting legislative changes on this issue.
Communication and Technology
Recognizing our role in providing service and information to our citizens, the City continues to invest in technology and undertake initiatives to enhance communications with our varied
constituents. We actively manage and update our own website, which integrates with our
service request and notification subscription system, developed our own mobile app, post to
II - 16
social media, and manage our own television channel, which broadcasts all City meetings and
provides information on City programs and services. The City Council and staff also attend
town hall forums and neighborhood meetings to get more feedback directly from residents. We
continually work to ensure that we are providing the information citizens want in the form that
best fits their need. During FY 2016, the City will be implementing an electronic content management (ECM) system. The project involves digitizing all our documents. This effort will
allow all City staff to access records on their own, thereby increasing efficiency, as well as
provide a public portal to allow direct access to the public.
Tax Shift
The largest challenge faced by all municipalities, but especially service centers such as Bangor,
is the incremental nature of Federal and State budget decisions. While individual changes
implemented over a number of sessions, seem tolerable, the totality of these actions has resulted in a significant tax shift to municipalities. These actions include State legislative
mandates to municipalities with no State funding such as; General Assistance, transfer of
normal costs of teacher retirement and MaineCare changes and caps, and Statutory funding not
upheld by the Legislature such as; funding of revenue sharing and aid to education. In the
most recent session, the Legislature took action to shift jail costs to County government, which
in turn is shifted to municipalities via the county tax mechanism.
The City has reduced/limited spending by limiting cost of living increases, reducing its
workforce, managing health care costs, participating in regional efforts, investing in energy
efficiency improvements and technology, as well as limiting its long term exposure by not
contributing to retiree health coverage and no longer offering a defined benefit pension plan for
new employees. The estimated tax shift of the legislative mandates with no funding and
statutory funding not upheld by the Legislature represents $3.76, or 17.2%, of the City’s FY
2015 tax rate of $21.80.
In addition to monitoring legislative actions, city and school staff and elected officials continue
to work collaboratively with other municipalities and professional organizations and actively participate in the State legislative process.
Economic Factors and Next Year’s Budget and Rates
The unemployment rate for the City of Bangor in 2015 was 4.6%, which continues to be
below both the national and State rates of 5.3% and 4.7%, respectively.
While Bangor represents less than 3% of the state’s population, businesses within the City
generate 8.7% of the State’s retail sales tax.
Residential valuations continue to increase slightly in the coming year.
Value of commercial properties also continues to increase slightly after realizing significant
downward adjustments in FY 2010.
Bangor businesses continue to reinvest in personal property. While not subject to local
taxation, the value of BETE property (net of depreciation) in FY 2016 increased $14.3
million, or 16.4%, for a total of $101.3 million.
The City is subject to a state statutory tax levy calculation system (known as LD 1). Generally,
the growth of the tax levy is limited to an increase equal to the ten year average percentage
change in real statewide personal income plus taxes from property value resulting from new
II - 17
Prior Year Base Municipal Commitment $ 28,996,160
Growth Factor:4.52%
Average Real Personal Income 1.09%
Property Growth Factor 3.43%
Net New State Funds -
Municipal Commitment Limit $ 24,815,095
construction, major renovations to existing properties, or the subdivision of property less any
“net new state funding”. For Fiscal Year 2015, the City’s LD 1 tax levy limit was as follows:
The Fiscal Year 2015 budget was within the statutory tax levy limit.
The State’s “Essential Programs and Services” model is a mechanism designed to allocate state
funding to local school units and to control local school expenditures. 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 result, both the School Committee and the City Council voted
to increase the educational spending limits for both Fiscal Year 2015 and 2016 in order to fund
such services and programs and their actions were approved, as required, via a local election.
In response to the continued uncertainty surrounding the national economy, management has
been closely tracking not only revenues and expenditures, but also foreclosure, liens,
unemployment rates, construction starts and related building permit levels, and the State of
Maine’s budgetary projections. The City continues to see only slight increases in foreclosure
and lien rates and will continue to monitor these levels and take steps to assist our tax/rate
payers in obtaining assistance wherever possible. Both residential and commercial construction
and permitting has begun to increase slightly. We continue to monitor key revenue areas such
as: flat investment yield curves, automobile excise taxes, property tax collection and State sales
and income tax collections that impact the City’s share of State Revenue Sharing. The fiscal
year 2016 budget reflects the City’s historical results for these revenue sources, and actual results to date appear to be on track with budgetary estimates. User fees for governmental and
business-type activities are reviewed on an annual basis to ensure that fee structures are
sufficient to cover service costs. Many fees are adjusted annually for inflation. For the Fiscal
Year 2016 budget, the City Council’s goal was to minimize any tax rate increase, continue to
recover from austere budget trends and increase operating efficiencies. As always, this goal
was challenging due to continued reductions in State and Federal funding, relatively flat non-
property tax revenue projections and assessed value. These challenges were partially offset by strategic reductions in staffing and a continued increase in BETE valuation. The afore
referenced actions coupled with a small increase in property taxes of 0.7% allowed the City
Council to provide a 1% cost of living increase to employees, maintain increased levels of
investment in infrastructure, as well as the practice of funding assigned fund balances for future
capital purchases on a current basis.
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 or via email to finance@bangormaine.gov.
BASIC FINANCIAL STATEMENTS
II - 18
Exhibit 1
Component Unit
Governmental Business-type Bangor
Activities Activities Total Public Library
ASSETS
Cash and cash equivalents 15,857,475$ 4,590,824$ 20,448,299$ 2,836,082$
Investments 2,501,185 15,152,191 17,653,376 13,140,284
Receivables:
Accounts (net of allowance of
$465,108 and $705,000, respectively)2,013,996 6,222,397 8,236,393 423,418
Intergovernmental 2,650,986 3,354,606 6,005,592 -
Taxes and liens - prior years 1,421,563 - 1,421,563 -
Taxes receivable - current year 1,911,526 - 1,911,526 -
Special assessments 30,130 87,664 117,794 -
Loans and notes 7,266,340 2,012,720 9,279,060 -
Internal balances 5,746,249 (5,746,249) - -
Inventories 542,476 241,628 784,104 -
Prepaid items 129,772 97,754 227,526 -
Other assets - 925,776 925,776 -
Non-depreciable capital assets 7,976,671 16,183,613 24,160,284 -
Depreciable capital assets, net 70,346,727 214,088,399 284,435,126 10,756,275
Total assets 118,395,096 257,211,323 375,606,419 27,156,059
DEFERRED OUTFLOWS OF RESOURCES
Net pension 1,872,874 249,572 2,122,446 -
Total deferred outflows of resources 1,872,874 249,572 2,122,446 -
LIABILITIES
Accounts payable and other current liabilities 1,799,617 4,485,364 6,284,981 519,872
Accrued wages and benefits payable 4,097,506 398,130 4,495,636 -
Unearned revenues 209,150 850,048 1,059,198 -
Noncurrent liabilities:
Due within one year 7,717,231 4,268,131 11,985,362 110,118
Due in more than one year 69,166,501 81,754,768 150,921,269 358,211
Total liabilities 82,990,005 91,756,441 174,746,446 988,201
DEFERRED INFLOWS OF RESOURCES
Deferred revenues - loans and assessments 4,962,453 - 4,962,453 -
Net pension 3,250,602 730,549 3,981,151 -
Total deferred inflows of resources 8,213,055 730,549 8,943,604 -
NET POSITION
Net investment in capital assets 50,030,025 156,544,970 206,574,995 10,437,216
Restricted for:
Nonexpendable trust principal 532,758 - 532,758 4,385,284
Expendable income 495,623 - 495,623 9,459,299
Unrestricted (21,993,496) 8,428,935 (13,564,561) 1,886,059
Total net position 29,064,910$ 164,973,905$ 194,038,815$ 26,167,858$
See accompanying notes to financial statements.
CITY OF BANGOR, MAINE
Statement of Net Position
June 30, 2015
Primary Government
II - 19
Exhibit 2
Operating Capital Component Unit
Charges for grants and grants and Governmental Business-type Bangor
Functions/programs Expenses services contributions contributions activities activities Total Public Library
Primary government
Governmental activities:
General government $6,871,396 2,493,428$ 2,860$ -$ (4,375,108)$ -$ (4,375,108)$ -$
Public safety 17,933,525 3,193,528 291,109 274,340 (14,174,548) - (14,174,548) -
Health, community services and recreation 9,692,379 1,118,582 6,475,405 - (2,098,392) - (2,098,392) -
Public services 12,956,599 3,904,548 4,500 - (9,047,551) - (9,047,551) -
Other agencies 4,638,805 - - 1,212,861 (3,425,944) - (3,425,944) -
Education 52,297,774 4,699,101 23,825,274 53,413 (23,719,986) - (23,719,986) -
Arena development - 1,952,929 - - 1,952,929 - 1,952,929 -
Community development 1,316,591 273,269 1,003,709 - (39,613) - (39,613) -
Waterfront 360,004 - - - (360,004) - (360,004) -
Public transportation 2,784,081 857,013 1,938,228 - 11,160 - 11,160 -
Economic development (tif)1,568,811 - - - (1,568,811) - (1,568,811) -
Interest on debt 2,604,030 - - - (2,604,030) - (2,604,030) -
Total governmental activities 113,023,995 18,492,398 33,541,085 1,540,614 (59,449,898) - (59,449,898) -
Business-type activities:
Sewer Utility 6,603,195 8,189,623 - - - 1,586,428 1,586,428 -
Airport 20,893,894 12,036,215 - 6,947,799 - (1,909,880) (1,909,880) -
Park Woods 507,210 459,905 193,061 - - 145,756 145,756 -
Stormwater Utility 241,082 1,088,119 - - - 847,037 847,037 -
Parking 978,658 1,022,305 - - - 43,647 43,647 -
Bass Park 7,855,957 3,239,457 - - - (4,616,500) (4,616,500) -
Municipal Golf Course 849,164 611,132 - - - (238,032) (238,032) -
Economic Development 698,294 589,383 - - - (108,911) (108,911) -
Total business-type activities 38,627,454 27,236,139 193,061 6,947,799 - (4,250,455) (4,250,455) -
Total primary government $151,651,449 45,728,537$ 33,734,146$ 8,488,413$ (59,449,898) (4,250,455) (63,700,353) -
Component unit
Bangor Public Library $2,719,719 29,370 2,043,548 343,213 - - - (303,588)$
General revenues:
Property taxes, levied for general purposes 55,303,613 800,000 56,103,613 -
Payment in lieu of taxes 156,417 - 156,417 -
Excise taxes 5,844,800 - 5,844,800 -
Franchise taxes 341,605 - 341,605 -
Grants and contributions not restricted to specific programs:
Homestead/BETE exemption 1,638,129 - 1,638,129 -
Other State aid 26,876 - 26,876 -
State Revenue Sharing 2,129,659 - 2,129,659 -
Unrestricted investment earnings 413,923 462,069 875,992 180,888
Miscellaneous revenues 410,991 - 410,991 -
Special Item - disposal of operation (see Note G)- (484,664) (484,664) -
Transfers (2,469,650) 2,469,650 - -
Total general revenues and transfers 63,796,363 3,247,055 67,043,418 180,888
Change in net position 4,346,465 (1,003,400) 3,343,065 (122,700)
Net position, beginning of year (Restated see Other Information Note H)24,718,445 165,977,305 190,695,750 26,290,558
Net position, end of year 29,064,910$ 164,973,905$ 194,038,815$ 26,167,858$
See accompanying notes to financial statements.
Program Revenues in net position
Primary Government
Net (expense) revenue and changes
CITY OF BANGOR, MAINE
Statement of Activities
For the Fiscal Year Ended June 30, 2015
II - 20
Exhibit 3
CITY OF BANGOR, MAINE
Balance Sheet
Governmental Funds June 30, 2015
Community Capital Other Total
Development Arena Projects Governmental Governmental
General Block Grant Fund Fund Funds Funds
ASSETS
Cash and cash equivalents 11,711,326$ 156,795$ 744,039$ 2,023,863$ 1,221,452$ 15,857,475$
Investments 50,000 - - 2,323,330 127,855 2,501,185
Receivables:
Taxes 3,333,089 - - - - 3,333,089
Accounts (net of allowance of $465,108)1,825,765 - 135,829 - 52,402 2,013,996
Interfund 5,768,579 - - - - 5,768,579
Intergovernmental 1,862,538 36,279 - 660,039 92,130 2,650,986
Loans and notes 684,336 4,772,323 - - 1,809,681 7,266,340
Unearned special assessments - - - 30,130 - 30,130
Inventory, at cost 542,476 - - - - 542,476
Prepaid items 129,772 - - - - 129,772
Total assets 25,907,881$ 4,965,397$ 879,868$ 5,037,362$ 3,303,520$ 40,094,028$
LIABILITIES
Accounts payable 1,026,306$ 51,990$ 8,597$ 190,008$ 32,076$ 1,308,977$
Accrued wages and benefits payable 4,091,659 5,847 - - - 4,097,506
Interfund loans payable - - - - 22,330 22,330
Unearned revenues - 49,831 - 159,319 - 209,150
Due to rehabilitation recipients - 96,085 - - - 96,085
Total liabilities 5,117,965 203,753 8,597 349,327 54,406 5,734,048
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - property taxes 2,559,119 - - - - 2,559,119
Unavailable revenues - loans - 4,772,323 - - 160,000 4,932,323
Unavailable revenues - special assessments - - - 30,130 - 30,130
Total deferred inflows of resources 2,559,119 4,772,323 - 30,130 160,000 7,521,572
FUND BALANCES (DEFICITS) (Note J)
Nonspendable 2,572,748 - - - 532,758 3,105,506
Restricted 909,284 - - - 2,556,356 3,465,640
Committed 110,933 - 871,271 - - 982,204
Assigned 4,642,727 - - 4,657,905 - 9,300,632
Unassigned 9,995,105 (10,679) - - - 9,984,426
Total fund balances (deficits)18,230,797 (10,679) 871,271 4,657,905 3,089,114 26,838,408
Total liabilities, deferred inflows of resources and fund balances 25,907,881$ 4,965,397$ 879,868$ 5,037,362$ 3,303,520$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds.78,323,398
Unavailable revenues - property taxes are not available to pay for current-period expenditures and, therefore,
are deferred in the funds.2,559,119
Long-term liabilities, including bonds payable $64,518,015, accrued interest $394,555, accrued compensated absences $2,625,542,
self insurance liability $2,021,088, net OPEB obligation $2,703,186, bond premium $629,383, capital leases $549,636 and
deferred inflows and outflows of net pension liability $5,214,610 are not due and payable in the current period and, therefore,
therefore, are not reported in the funds.(78,656,015)
Net position of governmental funds 29,064,910$
See accompanying notes to financial statements.
II - 21
Exhibit 4
CITY OF BANGOR, MAINE
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental FundsFor the Fiscal Year Ended June 30, 2015
Community Capital Other Total
Development Arena Projects Governmental Governmental
General Block Grant Fund Fund Funds Funds
Revenues
Taxes $59,468,512 -$ -$ 1,178,249$ 848,248$ 61,495,009$
Intergovernmental 29,323,747 950,425 - 1,442,201 6,847,077 38,563,450
Licenses and permits 831,968 - - - - 831,968
Charges for services 14,045,126 - - - 844,093 14,889,219
Program income - 235,172 - - 12,377 247,549
Revenue from use of money and property 739,052 - 1,952,929 110,575 80,979 2,883,535
Other 27,119 25,720 - 394,139 69,736 516,714
Total revenues 104,435,524 1,211,317 1,952,929 3,125,164 8,702,510 119,427,444
Expenditures
Current:
General government 5,391,279 - - - - 5,391,279
Public safety 16,994,567 - - - - 16,994,567
Health, community services and recreation 5,041,486 - - - - 5,041,486
Public services 10,704,017 - - - - 10,704,017
Other agencies 4,684,697 - - - - 4,684,697
Education 53,037,177 - - - - 53,037,177
Tax increment financing 724,347 - - - - 724,347
Unclassified 48,043 - 26,085 - - 74,128
Restricted grants - 1,218,721 - - 8,472,768 9,691,489
Capital outlay 570,654 - - 7,587,409 - 8,158,063
Debt service 5,537,031 - - 199,330 - 5,736,361
Total expenditures 102,733,298 1,218,721 26,085 7,786,739 8,472,768 120,237,611
Excess (deficiency) of revenues over (under) expenditures 1,702,226 (7,404) 1,926,844 (4,661,575) 229,742 (810,167)
Other financing sources (uses)
Issuance of debt 482,000 - - 3,120,000 - 3,602,000
Sale of assets 330,716 - - 235,001 - 565,717
Transfers to other funds (1,399,099) - (2,106,707) (53,243) (139,509) (3,698,558)
Transfers from other funds 79,434 - - 1,149,474 - 1,228,908
Total other financing sources (uses)(506,949) - (2,106,707) 4,451,232.00 (139,509) 1,698,067
Changes in fund balances 1,195,277 (7,404) (179,863) (210,343) 90,233 887,900
Fund balances (deficits), beginning of year 17,035,520 (3,275) 1,051,134 4,868,248 2,998,881 25,950,508
Fund balances (deficits), end of year $18,230,797 (10,679)$ 871,271$ 4,657,905$ 3,089,114$ 26,838,408$
See accompanying notes to financial statements.
II - 22
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, 2015
Net change in fund balances - total governmental funds (from Exhibit 4)887,900$
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 $4,736,682, exceeded
depreciation expense of $4,059,628 and loss on disposal of assets of $154,727.522,327
Financing proceeds provide current financial resources to governmental funds,
but issuing debt increases long-term liabilities in the statement of net position.
Repayment of bond and capital lease principal are expenditures in the
governmental funds, but the repayment reduces long-term liabilities in the
statement of net position. This is the amount by which principal payments
of $5,331,052 exceeded general obligation bond proceeds and
capital leases of $3,602,000.1,729,052
Some items reported in the statement of activities do not require
the use of current financial resources and, therefore, are not reported
in governmental fund statements. The differences are as follows: increase in
net OPEB obligation ($236,934), self insurance liability ($163,336), unavailable
revenues ($1,676) and decrease in accrued compensated absences ($46,797), accrued
interest ($31,042), net pension liability ($1,521,661) and bond premium ($6,280).1,207,186
Change in net position of governmental activities (see Exhibit 2)4,346,465$
See accompanying notes to financial statements.
II - 23
Exhibit 6
CITY OF BANGOR, MAINE
Statement of Revenues, Expenditures and Changes in
Unassigned Fund Balance - Budget and Actual
General Fund
For the Fiscal Year Ended June 30, 2015
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Taxes 58,156,191$ 58,156,191$ 59,468,512$ 1,312,321$
Intergovernmental 25,517,021 25,524,768 25,691,688 166,920
Licenses and permits 701,676 701,676 831,968 130,292
Charges for services:
municipal 8,798,082 8,798,082 9,102,048 303,966
school 3,231,881 3,231,881 4,699,051 1,467,170
Fines, forfeits and penalties 32,000 32,000 27,119 (4,881)
Revenue from use of money and property
municipal 696,850 696,850 684,833 (12,017)
Total revenues 97,133,701 97,141,448 100,505,219 3,363,771
Expenditures
Current:
General government 5,145,325 5,145,325 5,237,965 (92,640)
Public safety 17,302,501 17,310,248 16,987,739 322,509
Health, community services and recreation 4,939,212 4,939,212 5,045,987 (106,775)
Public buildings and services 10,319,342 10,319,342 10,703,629 (384,287)
Other agencies 4,650,182 4,652,805 4,684,697 (31,892)
Education 49,350,230 52,166,038 49,402,506 2,763,532
Unclassified 764,351 764,351 772,390 (8,039)
Debt service 5,536,850 5,536,850 5,537,031 (181)
Total expenditures 98,007,993 100,834,171 98,371,944 2,462,227
Excess (deficiency) of revenues
over (under) expenditures (874,292) (3,692,723) 2,133,275 5,825,998
Other financing sources (uses)
Appropriation from restricted, committed
and assigned fund balances 1,416,669 1,416,669 72,339 (1,344,330)
Appropriation from unassigned fund balance 19,123 19,123 (1,000,000) (1,019,123)
Sale of assets 29,000 29,000 43,809 14,809
Contributions - - 465 465
Insurance settlements 27,500 27,500 47,245 19,745
Transfers to other funds (645,000) (645,000) (1,002,124) (357,124)
Transfers from other funds 27,000 27,000 26,191 (809)
Total other financing sources (uses)874,292 874,292 (1,812,075) (2,686,367)
Net change in fund balance -$ (2,818,431)$ 321,200 3,139,631$
Unassigned fund balance, beginning of year 9,598,472
Changes in fund balance classification in accordance with GAAP
Changes in balances carried (105,584)
Inventory and prepaids (GASB 54)181,017
Unassigned fund balance, end of year 9,995,105$
See accompanying notes to financial statements.
Budgeted amounts
Continued on next page
II - 24
Exhibit 7
CITY OF BANGOR, MAINE
Statement of Net Position
Proprietary Funds
June 30, 2015
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
ASSETS
Current assets
Cash and cash equivalents 2,300,118$ 27,570$ 937,808$ 1,325,328$ 4,590,824$
Investments - 10,331,469 - - 10,331,469
Accounts receivable 3,556,599 2,755,395 215,547 399,856 6,927,397
Less allowance for uncollectible accounts (45,000) (660,000) - - (705,000)
Net accounts receivable 3,511,599 2,095,395 215,547 399,856 6,222,397
Due from other governments - 3,354,606 - - 3,354,606
Inventories, at cost - 199,673 41,955 - 241,628
Prepaid items 14,685 6,466 18,881 57,722 97,754
Total current assets 5,826,402 16,015,179 1,214,191 1,782,906 24,838,678
Noncurrent assets
Capital Assets:
Land and improvements 683,865 - 579,157 5,229,217 6,492,239
Buildings and improvements 28,665,849 - 68,958,075 5,299,620 102,923,544
Machinery and equipment 6,294,436 - 2,020,234 305,859 8,620,529
Infrastructure 58,947,698 - - 683,189 59,630,887
Aircraft operational assets - 268,808,921 - - 268,808,921
Parking structures - - - 11,320,359 11,320,359
Construction in process 1,799,935 10,767,682 - - 12,567,617
Total capital assets 96,391,783 279,576,603 71,557,466 22,838,244 470,364,096
Less accumulated depreciation (43,814,848) (177,461,782) (5,973,259) (12,842,195) (240,092,084)
Net capital assets 52,576,935 102,114,821 65,584,207 9,996,049 230,272,012
Investments - 4,820,722 - - 4,820,722
Loans receivable - 553,086 - 1,459,634 2,012,720
Unearned special assessments 87,664 - - - 87,664
Due from bond trustee 919,537 - - - 919,537
Deposits - - - 6,239 6,239
Total noncurrent assets 53,584,136 107,488,629 65,584,207 11,461,922 238,118,894
Total assets 59,410,538 123,503,808 66,798,398 13,244,828 262,957,572
DEFERRED OUTFLOWS OF RESOURCES
Net pension 64,304 175,936 - 9,332 249,572
Total deferred outflows of resources 64,304 175,936 - 9,332 249,572
See accompanying notes to financial statements.
Continued from previous page
II - 25
Exhibit 7 (con't)
CITY OF BANGOR, MAINE
Statement of Net Position
Proprietary Funds
June 30, 2015
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
LIABILITIES
Current liabilities
Accounts payable 544,165 2,258,160 372,939 137,347 3,312,611
Accrued wages and benefits payable 64,297 241,107 61,334 31,392 398,130
Accrued interest 58,753 47,587 999,920 66,494 1,172,754
Workers' compensation 20,000 118,490 - 2,081 140,571
Interfund loans payable - 2,790,775 2,097,574 857,900 5,746,249
General obligation debt payable 1,536,408 490,125 1,085,333 575,415 3,687,281
Capital lease obligation payable - - 3,871 - 3,871
Accrued compensated absences 73,250 258,478 - 13,968 345,696
Unearned revenue - - 850,048 - 850,048
Other liabilities - - 90,711 - 90,711
Total current liabilities 2,296,873 6,204,722 5,561,730 1,684,597 15,747,922
Long-term liabilities
Workers' compensation - 76,875 - 7,919 84,794
General obligation debt payable 11,812,052 8,316,832 52,237,747 5,109,132 77,475,763
Capital lease obligation payable - - 29,211 - 29,211
Accrued compensated absences 40,487 142,437 - 9,187 192,111
Net OPEB obligation 166,058 598,447 - 36,184 800,689
Net pension liability 148,956 474,490 - 26,191 649,637
Other long-term liabilities 156,498 - 2,366,065 - 2,522,563
Total long-term liabilities 12,324,051 9,609,081 54,633,023 5,188,613 81,754,768
Total liabilities 14,620,924 15,813,803 60,194,753 6,873,210 97,502,690
DEFERRED INFLOWS OF RESOURCES
Net pension 179,623 522,719 - 28,207 730,549
Total deferred inflows of resources 179,623 522,719 - 28,207 730,549
NET POSITION
Net investment in capital assets 40,050,242 97,422,263 13,481,863 5,590,602 156,544,970
Unrestricted 4,624,053 9,920,959 (6,878,218) 762,141 8,428,935
Total net position 44,674,295$ 107,343,222$ 6,603,645$ 6,352,743$ 164,973,905$
See accompanying notes to financial statements.
II - 26
Exhibit 8
CITY OF BANGOR, MAINE
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Fiscal Year Ended June 30, 2015
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
Operating revenues
Charges for services 8,185,341$ 12,036,215$ 3,239,457$ 3,770,844$ 27,231,857$
Total operating revenues 8,185,341 12,036,215 3,239,457 3,770,844 27,231,857
Operating expenses
Operating expenses other than
depreciation and amortization 4,528,633 12,253,022 2,964,137 2,506,203 22,251,995
Depreciation and amortization 1,762,479 8,305,982 2,960,805 570,274 13,599,540
Total operating expenses 6,291,112 20,559,004 5,924,942 3,076,477 35,851,535
Operating income (loss)1,894,229 (8,522,789) (2,685,485) 694,367 (8,619,678)
Nonoperating revenue (expenses)
Interest income 222,297 156,719 - 83,053 462,069
Interest expense (312,083) (334,890) (1,931,015) (197,931) (2,775,919)
Taxes (Downtown TIF)- - 800,000 - 800,000
Miscellaneous income (expense)4,282 - - - 4,282
Total nonoperating revenue (expenses)(85,504) (178,171) (1,131,015) (114,878) (1,509,568)
Net income (loss) before grants/contributions and transfers 1,808,725 (8,700,960) (3,816,500) 579,489 (10,129,246)
Grants/contributions received for capital assets - 6,947,799 - 193,061 7,140,860
Special items (Disposal of Operation See Note G)- - - (484,664) (484,664)
Transfers to other funds - - - (8,000) (8,000)
Transfers from other funds - - 2,106,707 370,943 2,477,650
Change in net position 1,808,725 (1,753,161) (1,709,793) 650,829 (1,003,400)
Net position, beginning of year (Restated See Note H)42,865,570 109,096,383 8,313,438 5,701,914 165,977,305
Net position, end of year 44,674,295$ 107,343,222$ 6,603,645$ 6,352,743$ 164,973,905$
See accompanying notes to financial statements.
Continued on next page
II - 27
Exhibit 9
CITY OF BANGOR, MAINE
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended June 30, 2015
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
Cash flows from operating activities
Cash received from customers 7,947,658$ 12,297,111$ 2,583,035$ 3,628,209$ 26,456,013$
Cash paid to suppliers for goods and services (3,031,026) (6,524,442) (2,868,147) (1,802,669) (14,226,284)
Cash paid to employees for services (1,652,045) (6,380,275) - (762,740) (8,795,060)
Net cash provided by (used in) operating
activities 3,264,587 (607,606) (285,112) 1,062,800 3,434,669
Cash flows from noncapital financing activities
Disposal of operations (See Note G)- - - (1,300,000) (1,300,000)
Interfund loans (repayments)89,000 2,564,450 130,000 (314,500) 2,468,950
Taxes (Downtown TIF)- - 800,000 - 800,000
Transfers in - - 2,106,707 370,943 2,477,650
Transfers out - - - (8,000) (8,000)
Net cash provided by (used in) noncapital
financing activities 89,000 2,564,450 3,036,707 (1,251,557) 4,438,600
Cash flows from capital and related financing activities
Proceeds from general obligation bonds 2,500,000 1,600,000 - - 4,100,000
Acquisition and construction of capital assets (2,598,397) (7,634,933) (23,617) (34,708) (10,291,655)
Principal paid on general obligation bonds (1,383,712) (396,586) (1,037,386) (554,795) (3,372,479)
Interest paid on general obligation bonds (319,221) (325,321) (2,041,722) (205,513) (2,891,777)
Proceeds from sale of property 4,282 - - 1,300,000 1,304,282
Grant/contribution monies received for capital assets - 4,576,095 - - 4,576,095
Net cash provided by (used in) capital and related
financing activities (1,797,048) (2,180,745) (3,102,725) 504,984 (6,575,534)
Cash flows from investing activities
Net sales (purchases) of investments 648,788 (115,909) - - 532,879
Investment of unexpended bond proceeds (919,537) - - - (919,537)
Interest on investments 84,292 156,719 - 93,417 334,428
Loan repayments - 193,915 - - 193,915
Net cash provided by (used in) investing activities (186,457) 234,725 - 93,417 141,685
Net increase (decrease) in cash 1,370,082 10,824 (351,130) 409,644 1,439,420
Cash, beginning of year 930,036 16,746 1,288,938 915,684 3,151,404
Cash, end of year 2,300,118$ 27,570$ 937,808$ 1,325,328$ 4,590,824$
Schedule of noncash investing, capital and financing activities:
During the year, the Airport Fund had an unrealized gain on investments in the amount of $346,714.
During the year, the Sewer Fund recognized $138,206 of interest income related to the expiration of an arbitrage redemption period.
During the year, a deferred rehabilitation loan in the amount of $193,061 within the Park Woods Funds was forgiven.
See accompanying notes to financial statements.
Continued from previous page
II - 28
Exhibit 9 (con't)
CITY OF BANGOR, MAINE
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended June 30, 2015
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)1,894,229$ (8,522,789)$ (2,685,485)$ 694,367$ (8,619,678)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities
Depreciation and amortization 1,762,479 8,305,982 2,960,805 570,274 13,599,540
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (237,683) 260,896 49,563 (145,161) (72,385)
(Increase) decrease in inventories - 92,345 (41,955) - 50,390
(Increase) decrease in prepaid items (1,534) 6,535 (18,881) (57,722) (71,602)
Increase (decrease) in accounts payable (59,138) (502,356) 95,492 16,223 (449,779)
Increase (decrease) in unearned revenue - - (705,985) - (705,985)
Increase (decrease) in other liabilities (93,766) (248,219) 61,334 (15,181) (295,832)
Total adjustments 1,370,358 7,915,183 2,400,373 368,433 12,054,347
Net cash provided by (used in) operating activities 3,264,587$ (607,606)$ (285,112)$ 1,062,800$ 3,434,669$
See accompanying notes to financial statements.
II - 29
Exhibit 10
CITY OF BANGOR, MAINE
Statement of Fiduciary Net Position
Fiduciary FundsJune 30, 2015
Agency
Fund
ASSETS
Cash and cash equivalents $139,525
Total assets $139,525
LIABILITIES
Amounts held for others $139,525
Total liabilities $139,525
See accompanying notes to financial statements.
INDEX OF NOTES TO THE FINANCIAL STATEMENTS
Note Page
Summary of Significant Accounting Policies
A Reporting Entity II – 30
B Government-wide and Fund Financial Statements II – 30
C Measurement Focus, Basis of Accounting and Basis of Presentation II – 31 D Assets, Liabilities, Deferred Inflows/Outflows and Equity II – 33
Stewardship, Compliance and Accountability
A Budgetary Information II – 37
B Reconciliation of Budgetary Basis Statements II – 37 C Excess of Expenditures Over Appropriations II – 38
D Deficit Fund Equity II – 38
E Restricted Assets II – 38
Detailed Notes on All Funds
A Deposits and Investments II – 39
B Property Tax II – 40
C Capital Assets II – 40 D Interfund Transactions II – 42 E Due From Other Governments II – 43
F Leases II – 43 G Other Assets II – 44 H Unearned Revenue II – 44
I Long-Term Debt II – 45 J Fund Balances II – 49
K Net Position II – 50
Other Information
A Risk Management II – 50 B Tax Increment Financing Districts II – 51
C Contingent Liabilities II – 52
D Retirement II – 52 E Other Postemployment Benefits II – 57
F Subsequent Events II – 58
G Disposal of Operations II – 58 H Restatement II – 59
II - 30
CITY OF BANGOR, MAINE Notes to the Financial Statements June 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Bangor was incorporated under the laws of the State of Maine in 1834 and operates under
a council/manager form of government. In evaluating how to define the reporting entity, for financial
reporting purposes, management has considered all potential component units. The criteria used to determine which entities, agencies, commissions, boards and authorities are part of the City’s
operations include how the budget is adopted, whether debt is secured by general obligation of the
City, the City’s duty to cover any deficits that may occur, and supervision over the accounting
functions.
The Bangor Public Library is a nonprofit organization which operates under the control of a nine
member Board of Trustees. The Bangor City Council appoints four members and the City of Bangor
Charter appoints a fifth member. The Board has the power to hire officers, approve the budget and
direct the operations of the Library. However, the Library is financially dependent upon the City in that
the City provides approximately 69% of the operating financial support received by the Library during
the year ended June 30, 2015. The City believes that the financial statements would be incomplete
without the inclusion of the Library as a discretely presented component unit. Complete financial
statements may be obtained from the Bangor Public Library, 145 Harlow Street, Bangor, ME 04401.
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
(PERC) and Bangor Hydro Electric Company. It was formed to pool resources of the Equity Charter
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, 2014 (most recent data available) the City
of Bangor’s share of the Joint Venture’s net position was $5,896,061. Complete financial statements
may be obtained from Municipal Review Committee, 395 State Street, Ellsworth, ME 04605.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the City. For the most part, the
effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support, as well as
from legally separate component units for which the City is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The City has elected not to allocate indirect costs among the
programs, functions and segments. Program revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported as general revenues.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
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. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as certain compensated absences and claims and
judgments, are recorded only when the payment is due.
Those revenues susceptible to accrual are property taxes, interest, and charges for services. Other
receipts and taxes become measurable and available when cash is received by the City and are
recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to
accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other grant requirements have been met.
The City reports the following major 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 Arena Fund accounts for the percentage of slot revenues received by the City from the
operation of the casino. Said funds will be used to fund a portion of the debt service related to the
construction of the Cross Insurance Center.
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.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
The City reports the following major proprietary funds:
The Sewer Utility fund accounts for the costs of construction and operation of the sewage
treatment plant, the City sewer system, and sewer operation activities, and is self-supported
through sewer user fees.
The Airport Fund accounts for the operation of Bangor International Airport. The principal
sources of revenues are landing fees and the sale of aviation fuel. Other revenue sources include lease payments for the use of terminal space and non-aviation industrial buildings.
The Bass Park Fund accounts for the operation of the Cross Insurance Center, a harness racing track and the 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.
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 account for assets the City holds for others in an agency capacity. They are
custodial in nature and do not present results of operations of the City or have a
measurement focus. Agency funds are accounted for using the accrual basis of accounting.
The City serves as an agent for various School Activity funds.
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.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the City’s proprietary fund are charges to customers for sales and services. Operating expenses include
the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as nonoperating revenues and expenses.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
D. Assets, Liabilities, Deferred Inflows/Outflows and Equity
1. Deposits and Investments
Cash includes amounts in demand deposits as well as short-term investments with a maturity date
within three months of the date acquired by the City.
State statutes authorize the City to invest in obligations of the U. S. Treasury, commercial paper,
corporate bonds and repurchase agreements. City policy prohibits the investment in so-called “derivative instruments”.
Investments are reported at fair value. Income earned from the investment of pooled cash is allocated
to various funds based upon the average cash balance allocated to the fund.
2. Interfund Receivables and Payables
Activity between funds that are 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 are offset by nonspendable fund balance accounts in applicable governmental
funds to indicate that they are not available for appropriation and are not expendable, available
financial resources.
3. Inventories and Prepaid Items
Inventories consist of expendable supplies held for consumption and are valued at cost using the
weighted average method. The cost of inventories are recognized as expenditures/expenses when
consumed rather than when purchased.
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, sewer mains 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 City as
assets with an initial, individual cost of more than $10,000 for machinery/equipment/vehicles, $25,000 for
land/buildings and improvements and $100,000 for infrastructure and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
The costs of normal repairs and maintenance that do not add to the value of the asset or materially
extend asset lives are not capitalized.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Major outlays for capital assets and improvements are capitalized as projects are constructed. If material,
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. Deferred Inflows/Outflows of Resources
In addition to assets and liabilities, the statement of net position will sometimes report separate
sections for deferred outflows or inflows, respectively, of resources.
Deferred outflows of resources represent a consumption of net position that applies to a future
period(s) and therefore will not be recognized as an expense/expenditure until then. The deferred
outflows of resources relate to the net pension liability, which include the City’s contributions
subsequent to the measurement date, and are recognized as a reduction of the net pension liability in
the subsequent year. They also include changes in assumptions, differences between expected and
actual experience, and changes in proportion and differences between City contributions and
proportionate share of contributions, which are deferred and amortized over the average expected
service lives of active an inactive members in the plan.
Deferred inflows of resources represent an acquisition of net position that applies to a future period(s)
and therefore will not be recognized as revenue until that time. The City has two types of deferred
inflows; those related to unavailable revenues and the net pension liability. Deferred inflows
categorized as unavailable revenues are due to differences in the modified accrual basis of accounting.
There are three sources of unavailable revenue; property taxes, community development loans and
special assessments. These amounts are considered unavailable and recognized as an inflow of
resources (revenue) in the period that the amounts become available. The net pension liability
deferred inflows include the differences between expected and actual experience and changes in
proportion and differences between City contributions and proportionate share of contributions, which
are deferred and amortized over the average expected remaining service lives of active and inactive
members in the plan. They also include the net difference between project and actual earnings on
pension plan investments, which is deferred and amortized over a five-year period.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
6. 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. 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 position.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-
line method. Bonds payable are reported net of the applicable bond premium or discount, if material.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
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.
8. Fund Equity
In the fund financial statements, governmental funds report fund balances in one of five possible
classifications. Classification is based primarily on the extent to which the City is bound to honor
constraints on the specific purposes for which the funds can be spent. The categories are as follows:
Nonspendable fund balance cannot be spent.
Restricted fund balances are subject to externally enforceable legal restrictions.
Committed fund balances are subject to limitations the City Council has imposed, that are binding
unless removed or modified by the passage of a Council Order.
Assigned fund balances reflect the intended use of the resources. The City Council adopted a
comprehensive fund balance policy which authorized itself and the Finance Director and City
Manager, within defined limits, with the authority to assign fund balances.
Unassigned fund balances are resources which have not been classified in any other category.
Only the General Fund can report a positive unassigned fund balance amount.
Should there be multiple sources of funding available for a particular purpose, it is the City’s policy to
expend currently budgeted resources first, then use other sources in the order of restricted, then
committed, then assigned, then unassigned amounts.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
9. 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. 10. Pensions
For purposes of measuring the net pension liability (MePers liability), deferred outflows of resources
and deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the Maine Public Employees Retirement System Consolidated Plan for Participating Local Districts (PLD Plan) and Maine Public Employees Retirement System State Employee
and Teacher Plan (SET Plan) and additions to/deductions from the Plan’s fiduciary net position have
been determined on the same basis as they are reported by the Plans. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
11. 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.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 37
Excess of revenues over expenditures and
other financing sources and uses (Budget)321,200$
Activity in assigned fund balance 848,197
2015 encumbrances 1,273,041
2014 encumbrances paid (1,229,516)
2014 encumbrances lapsed (17,645)
Excess of revenues and other financing sources
over expenditures and other uses (GAAP)1,195,277$
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.
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 in assigned fund balance and
do not constitute expenditures or liabilities because the commitments have not been honored in the
current year. For budgetary purposes, encumbrances are treated as expenditures within both
governmental and proprietary fund types.
On or before the second Monday in April, the City Manager submits to the City Council a proposed
operating budget for the ensuing fiscal year. The Council holds public meetings and a final budget
must be prepared and adopted no later than June 30th. Should the Council fail to adopt an operating
budget on or before June 30th, by Charter, the budget proposed by the City Manager becomes
effective.
The budget is adopted at the department level through the passage of appropriation resolves. The City Manager may make transfers of appropriations within a department. Transfers between
departments or additional appropriations require the approval of the City Council. The City Council
made several supplementary budgetary appropriations throughout the year, none of which 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 Unassigned Fund Balance—Budget and Actual—Budgetary Basis to the amounts on the Statement of Revenues, Expenditures, and Changes in Fund Balances, Governmental
Funds:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 38
Excess (deficiency) of revenues over expenditures and encumbrances:
Sewer 386,626$
Airport (8,559,949)
Park Woods (66,778) Parking (189,453)
Bass Park (2,881,502)
Municipal Golf Course (264,126)
Economic Development (329,925) Stormwater Utility 529,201
(11,375,906)
Nonoperating revenues classification (1,578,560)
Investments at market value 177,960 Capital outlay (514,904)
Adjustments for accrual basis 464,481
Principal payments 3,381,094
Nonoperating expenses classification 826,157
Operating loss (8,619,678)$
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY, CONTINUED
The following schedule reconciles the amounts on the enterprise funds’ Schedules of Revenues,
Expenditures and Encumbrances—Budget and Actual—Budgetary Basis to the amount on the
Combined Statement of Revenues, Expenses, and Changes in Net Position:
C. Excess of Expenditures Over Appropriations
The following General Fund departments were over-expended by the indicated dollar amounts;
Executive $193,643, Legal $2,050, Finance $18,690, Insurance $1,287, Fire $201,176, Health and
Community Services $44,553, Parks and Recreation $62,222, Public Buildings and Services $384,287,
Other Agencies $34,089 and Tax Increment Financing Payments $35,703. These over-expenditures
were funded by receipt of revenues in excess of appropriations and under-expenditures within other
General Fund departments.
The Airport Fund was over-expended by $991,863, due to increased utility costs and depreciation
expense exceeding budget. Bass Park Fund was over-expended by $1,110,381, due to depreciation
expense exceeding budget and the Park Woods Funds was over-expended by $91,508 due to
increased maintenance in advance of the sale of the property (Refer to Note G – Disposal of
Operations).
D. Deficit Fund Equity
The Stormwater Utility Fund has a deficit net position of $163,346 as a result of the transfer of
outstanding debt related to stormwater improvements. The deficit will be funded in subsequent years
through the collection of fees. The Community Development Block Grant Fund has a deficit fund equity of $10,679 due to accrued expenses reimbursed in the subsequent year.
E. Restricted Assets
Donations received by the City whose use is limited are placed in the appropriate Special Revenue
fund, depending upon whether or not the principal can be expended. All changes in market value are added to the earnings, which is allowable by State Statute. As these amounts are invested in a note
receivable, there was no change in market value for fiscal year 2015.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 39
Investment types Rating Fair Value Not Applicable <1 1-5 6-10
Mutual Funds 11,905,809$ 11,905,809$ -$ -$ -$ Repurchase Agreements 407,808 407,808 - - -
US Treasuries AA 4,618,311 - - 3,596,593 1,021,718
Corporate Bonds A, BBB 202,411 - - 202,411 -
Common Stock 469,037 469,037 - - -
Certificate of Deposit 50,000 - 50,000 - -
Totals 17,653,376$ 12,782,654$ 50,000$ 3,799,004$ 1,021,718$
Maturity (years)
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 maintained certain accounts whose balances were fully covered, for other accounts in which
the balance exceeded the $250,000 provided by the Federal Deposit Insurance Corporation (FDIC),
pledged collateral securities were held in the City’s name. As of June 30, 2015, $139,557 of the City’s
bank balance of $22,013,956 was exposed to custodial credit risk because it was uninsured and
uncollateralized.
At June 30, 2015, the City had the following investments and maturities:
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
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
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. In accordance with City policy,
investments in certificates of deposits must be F.D.I.C. insured and any excess of the amounts covered
by insurance must be collateralized in accordance with Title 30-A, Section 5706 of the Maine Revised
Statutes; investments in mutual funds must be “no load” (which means no commission or fee shall be
charged on the purchase or sale), have a constant daily net asset value of $1.00 per share and limit
assets of the fund to U.S. Treasury Obligations or Federal Instrumentality or Agency Securities; the
total investments in stock can not exceed 10% of the portfolio value and no more than 5% can be
invested in any one company.
Custodial Credit Risk - Investments For investments, custodial credit risk is the risk that, in the event of failure of the counterparty, the
City will not be able to recover the value of its investments or collateral securities that are in the
possession of the outside party. As of June 30, 2015, the City had no investments that were subject to custodial risk. The City’s investment policy states that all security transactions, including collateral for
repurchase agreements, entered into by the City shall be conducted on a “delivery vs. payment” basis.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 40
Balance Balance
June 30, 2014 Increases Decreases June 30, 2015Governmental activities:
Capital assets, not being depreciated:
Land 5,092,368$ -$ -$ 5,092,368$
Construction in process 2,908,528 3,055,616 3,079,841 2,884,303
Total capital assets not being depreciated 8,000,896 3,055,616 3,079,841 7,976,671
Capital assets, being depreciated:Land improvements 11,309,931 - - 11,309,931
Buildings and improvements 69,560,078 2,616,906 - 72,176,984
Machinery and equipment 11,577,806 273,716 - 11,851,522 Vehicles 17,613,281 1,840,285 615,561 18,838,005
Infrastructure 22,914,937 30,000 - 22,944,937
Total capital assets being depreciated 132,976,033 4,760,907 615,561 137,121,379 Less accumulated depreciation for:
Land improvements (4,283,672) (493,606) - (4,777,278)
Buildings and improvements (27,008,171) (1,461,633) - (28,469,804) Machinery and equipment (9,639,588) (526,453) - (10,166,041)
Vehicles (10,701,414) (1,233,335) (460,834) (11,473,915)
Infrastructure (11,543,013) (344,601) - (11,887,614) Total accumulated depreciation (63,175,858) (4,059,628) (460,834) (66,774,652)
Total capital assets being depreciated, net 69,800,175 701,279 154,727 70,346,727 Governmental activities capital assets, net 77,801,071$ 3,756,895$ 3,234,568$ 78,323,398$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Securities will be held by a third party custodian, or trust department, designated by the Treasurer and
evidenced by safekeeping receipts.
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 8, 2014, on the assessed value listed as of the
prior April 1 for all real and personal property located in the City. Assessed values are periodically established by the City's Assessor at 100% of assumed market value. Taxes were due in two
installments: September 15, 2014 and March 16, 2015. Interest was charged at 7.00% on all taxes
unpaid as of the due date.
Property taxes levied during the year were recorded as receivables at the time the levy was made.
The receivables collected during the year and in the first sixty days following the end of the fiscal year
have been recorded as revenues. The remaining receivables have been recorded as deferred inflows.
Tax liens are placed on real property within twelve months following the tax commitment date if taxes
are delinquent. The City has the authority to foreclose on property eighteen months after the filing of
the lien if the tax liens and associated costs remain unpaid.
C. Capital Assets
Capital asset activity for the year ended June 30, 2015 was as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 41
Balance Balance
6/30/2014 *Increases Decreases June 30, 2015
Business-type activities:Capital assets, not being depreciated:
Land 3,615,996$ -$ -$ 3,615,996$
Construction in process 7,121,916 10,421,152 4,975,451 12,567,617
Total capital assets not being depreciated 10,737,912 10,421,152 4,975,451 16,183,613
Capital assets, being depreciated:Land improvements 3,171,268 - 295,025 2,876,243
Buildings and improvements 104,660,439 196,166 1,933,061 102,923,544
Machinery and equipment 8,299,901 343,580 22,952 8,620,529
Infrastructure 58,984,638 646,249 - 59,630,887 Airport operational assets 263,928,910 4,880,011 - 268,808,921
Parking structures 11,317,169 15,500 12,310 11,320,359
Total capital assets being depreciated 450,362,325 6,081,506 2,263,348 454,180,483
Less accumulated depreciation for:
Land improvements (1,836,600) (65,237) (212,418) (1,689,419) Buildings and improvements (30,575,536) (3,927,538) (1,531,005) (32,972,069)
Machinery and equipment (5,161,235) (429,556) (22,952) (5,567,839)
Infrastructure (12,915,629) (602,137) - (13,517,766)
Airport operational assets (169,155,800) (8,305,982) - (177,461,782)
Parking structures (8,626,429) (269,090) (12,310) (8,883,209) Total accumulated depreciation (228,271,229) (13,599,540) (1,778,685) (240,092,084)
Total capital assets being depreciated, net 222,091,096 (7,518,034) 484,663 214,088,399
Business-type activities capital assets, net 232,829,008$ 2,903,118$ 5,460,114$ 230,272,012$
Governmental Activities:
General government 1,492,694$
Public safety 846,076
Health, community services and recreation 85,812
Public services 491,371
Education 1,143,675
Total depreciation expense - governmental activities 4,059,628$
Business-type activities:
Sewer Utility Fund 1,762,479$
Airport Fund 8,305,982
Park Woods 44,562
Parking Fund 269,089
Bass Park Fund 2,960,805
Municipal Golf Course 70,755
Economic Development Fund 185,868
Total depreciation expense - business-type activities 13,599,540$
DETAILED NOTES ON ALL FUNDS, CONTINUED
* - As Restated (See Note H) Depreciation expense was charged to functions/programs of the primary government as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 42
Receivable Payable
General Fund 5,768,579$ -$
Grant Fund - 22,330
Airport Fund - 2,790,775
Bass Park Fund - 2,097,574
Economic Development - 857,900
5,768,579$ 5,768,579$
Transfers to Transfers from
General Fund 1,399,099$ 79,434$
Arena Fund 2,106,707 -
Dedicated Revenue Funds 96,509 -
Other Nonmajor Special Revenue Funds 8,000 -
Capital Projects Fund 53,243 1,149,474
Other Nonmajor Permanent Funds 35,000 -
Bass Park Fund - 2,106,707
Park Woods Fund - 370,943
Stormwater Utility Fund 8,000 -
3,706,558$ 3,706,558$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Construction commitments
The government has active construction projects as of June 30, 2015. The projects include traffic flow
improvements, reconstruction of runways, terminal redesign and renovations, and continuation of the
combined sewer overflow program. D. Interfund Transactions
Individual fund interfund receivable and payable transactions are described in the Summary of
Significant Accounting Policies Note D. 2. As of June 30, 2015 the balances were as follows:
Individual fund transfers to and from other funds for the fiscal year ended June 30, 2015 are
comprised primarily of transfers from fund balances to fund capital projects and to provide operating
subsidies to certain proprietary funds.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 43
Federal State of
Government Maine Other Total
General Fund 195,207$ 1,376,979$ 290,352$ 1,862,538$
Community Development 36,279 - - 36,279
Nonmajor Special Revenue Funds 86,871 5,259 - 92,130
Capital Projects Fund 566,325 93,714 - 660,039
Airport Fund 3,093,860 260,746 - 3,354,606
Fiscal year ending Economic
June 30,Airport Development
2016 1,810,042$ 641,273$
2017 1,022,171 1,289,718
2018 904,191 368,342
2019 706,762 368,905
2020 504,482 357,117
Subsequent to 2020 4,154,690 3,879,168
9,102,338$ 6,904,523$
Economic
Airport Development
Land 565,532$ 2,736,769$
Buildings 22,886,327 4,387,013
Less accumulated depreciation (16,876,554) (1,618,524)
Total 6,575,305$ 5,505,258$
DETAILED NOTES ON ALL FUNDS, CONTINUED
E. Due From Other Governments
Due from other governments is comprised of the following amounts at June 30, 2015:
Amounts due from Federal Government are comprised of operating and capital grants for all fund types. Of the General Fund’s $1,376,979 due from State of Maine, $692,547 represents school grant
and State agency billings, and $343,794 represents general assistance claims. Amounts owed to the
Capital Projects and the Airport Funds by the State of Maine are for capital grant purposes. Amounts due from other communities for tuition reimbursement to Bangor account for $252,262 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 2048 and 2035, respectively.
Minimum future rentals to be received on noncancelable leases as of June 30, 2015 are:
Minimum future rentals do not include contingent rentals, which may be received as stipulated in the
lease contracts. The Airport received $1,878,231 in contingent rentals in fiscal year 2015.
The carrying amounts of the leased assets are as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 44
Sewer Utility Economic
Fund Development Fund
Due from bond trustee 919,537$ -$
Deposits - 6,239
Total 919,537$ 6,239$
Governmental Business-type
Fiscal Year ending June 30,Activities Activities
2016 215,972$ 4,288$
2017 215,972 10,074
2018 120,403 10,074
2019 25,527 7,929
2020 - 2,938
Total minimum lease payments 577,874 35,303
Less: amount representing interest (28,238) (2,221)
Present value of future minimum lease payments 549,636$ 33,082$
Governmental Business-type
Activities Activities
Machinery and equipment 630,581$ 52,837$
Less accumulated depreciation (268,890) (12,242)
Carrying value 361,691$ 40,595$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Capital Leases
The City entered into several leases for financing the acquisition of heavy equipment and office
equipment. These lease agreements qualify as capital leases for accounting purposes whereas they
contain a bargain purchase option. Leased equipment below the City’s capitalization policy has not been capitalized. The following is an analysis of the carrying value of the leased capitalized equipment
as of June 30, 2015:
The following is a schedule of the future minimum lease payments under these capital leases, and the
present value of the net minimum lease payments at June 30, 2015:
G. Other Assets
Other assets are comprised of the following:
H. Unearned Revenue
Community Development Block Grant and Capital Projects Fund unearned revenues consist of $49,831
and $159,319 in advance deposits, respectively. Bass Park Fund unearned revenues consist of $850,048 in advance sales.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 45
Bonds and notes payable at June 30, 2014 146,954,498$
Add: principal additions 7,220,000
Less: principal repayments 8,493,439
Bonds and notes payable at June 30, 2015 145,681,059$
DETAILED NOTES ON ALL FUNDS, CONTINUED
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 $203,409,948. The following is a summary
of general obligation bond and note transactions of the City for the fiscal year ended June 30, 2015:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 46
Fiscal year Interest Business-type Total
Long-term debt of maturity rate City School Activities June 30, 2015
Combined sewer overflow 2017 3.52%- - 376,142 376,142
Tax increment financing note*2016 4.50%102,246 - - 102,246
Combined sewer overflow 2018 3.03%- - 446,023 446,023
Tax increment financing note*2018 4.50%59,006 - - 59,006
Maine Business Enterprise Park 2018 5.00%- - 56,781 56,781
Public improvements note*2020 4.50%334,874 - - 334,874
Pension obligation bonds 2026 3.06% - 6.45%20,827,464 1,332,819 4,469,717 26,630,000
Combined sewer overflow 2023 1.94%- - 1,304,471 1,304,471
Briggs building note 2023 4.50%- - 684,336 684,336
Combined sewer overflow 2025 1.41%- - 1,451,904 1,451,904
Chancellor's property note 2026 5.00%- - 1,499,687 1,499,687
Public improvements/refunding 2026 4.00% - 4.20%584,313 - 60,687 645,000
Combined sewer overflow 2027 1.64%- - 1,277,072 1,277,072
Public improvements - 2007 2027 4.00%1,955,000 - - 1,955,000
Combined sewer overflow 2028 1.81%- - 1,379,961 1,379,961
Public improvements - 2009 2029 2.00% - 4.375%2,170,000 - - 2,170,000
ARRA - CWSRF 2029 0.00%- - 678,236 678,236
ARRA - CWSRF 2030 0.00%- - 385,320 385,320
Public improvements/refunding 2020 2.00% - 3.25%2,190,407 4,010,692 603,901 6,805,000
Public improvements/refunding 2021 2.00% - 3.25%1,212,141 - 2,722,859 3,935,000
Qualified school construction bond 2028 4.65%- 5,610,000 - 5,610,000
Refunding/public improvements 2022 2.00% - 2.25%1,745,782 1,568,316 1,020,902 4,335,000
Arena 2043 3.25% - 5.00%- - 52,820,000 52,820,000
Qualified school construction bond 2035 4.05%- 2,800,000 - 2,800,000
Refunding/public improvements 2032 2.00% - 4.00%6,999,955 - 1,390,045 8,390,000
Refunding/airport improvements 2033 .50% - 4.25%- - 4,150,000 4,150,000
Public improvements 2034 2.00% - 4.00%6,755,000 1,140,000 285,000 8,180,000
Combined sewer overflow 2034 0.10%- - 2,500,000 2,500,000
Public improvements 2030 2.00% - 2.75%2,720,000 400,000 - 3,120,000
Airport improvements 2035 3.00% - 3.65%- - 1,600,000 1,600,000
Total bonds and notes payable 47,656,188$ 16,861,827$ 81,163,044$ 145,681,059$
* Notes aggregating $496,126 are held by the City's Airport Fund at fixed, taxable market rates of interest.
Governmental Activities
Fiscal year ending
June 30,Principal Interest Principal Interest
2016 5,462,687$ 2,377,121$ 3,687,281$ 2,804,524$
2017 5,429,002 2,207,871 3,799,825 2,689,405
2018 5,368,808 2,001,667 3,736,937 2,569,783
2019 4,943,052 1,808,103 3,528,012 2,442,751
2020 5,015,641 1,613,032 3,636,504 2,314,653
2021-2025 20,966,037 5,164,763 17,013,742 9,542,037
2026-2030 13,457,788 1,336,483 12,726,050 6,066,351
2031-2035 1,165,000 166,688 12,379,693 5,122,471
2036-2040 2,710,000 - 12,190,000 3,594,187
2041-2043 - - 8,465,000 516,900
Total 64,518,015$ 16,675,728$ 81,163,044$ 37,663,062$
Governmental Activities Business-type Activities
DETAILED NOTES ON ALL FUNDS, CONTINUED
Bonds and notes payable at June 30, 2015 are comprised of the following:
Annual debt service requirements to maturity for general obligation bonds and notes payable are as
follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 47
DETAILED NOTES ON ALL FUNDS, CONTINUED
Legal Debt Margin
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, 2015, the statutory limit for the City was
$381,555,000. The City’s outstanding long-term debt of $145,681,059 at June 30, 2015 was within the statutory limit.
Advance Refunding
In prior years, the City defeased general obligation bonds by placing the proceeds of the new bonds in
an irrevocable trust account to provide for all future debt service payments on the old bonds.
Accordingly, the trust account assets and the liability for the defeased bonds are not included in the
City’s financial statements. At June 30, 2015, $1,370,000 of defeased bonds remain outstanding.
Authorized and Unissued
On November 26, 2007, the City Council authorized the issuance of up to $600,000 in general
obligation bonds for the purpose of renovating and rehabilitating property located at 103 Texas
Avenue. As of June 30, 2015, $155,000 remains authorized and unissued. The City expects to issue
the debt within the next twenty four months.
On August 8, 2011, the City Council authorized the issuance of up to $2,000,000 in general obligation
bonds to provide funding for remediation of the Penobscot River. As of June 30, 2015, no debt for this
purpose had been issued. The City will continue to monitor when and if the debt will be issued. Overlapping Debt
In addition to the bonds and notes payable, the City may be contingently responsible for a proportionate share of overlapping debt. Overlapping debt is debt issued by a separate entity that
shares the same tax base as the City of Bangor. As of June 30, 2015, Penobscot County had no debt
outstanding.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 48
Balance Balance Due within
6/30/2014**Additions Reductions June 30, 2015 one year
Governmental activities:
General obligation debt 66,518,975$ 3,120,000$ 5,120,960$ 64,518,015$ 5,462,687$
Accrued compensated absences*2,672,339 1,575,539 1,622,336 2,625,542 1,311,679
Capital leases 277,728 482,000 210,092 549,636 202,101
Bond premium 635,663 - 6,280 629,383 62,101
Net OPEB obligation*2,466,252 433,477 196,543 2,703,186 -
Net pension liability**8,002,203 - 4,165,321 3,836,882 -
Self insurance liability 1,857,752 536,601 373,265 2,021,088 678,663
Governmental activities
long-term liabilities 82,430,912$ 6,147,617$ 11,694,797$ 76,883,732$ 7,717,231$
Business-type activities:
General obligation debt 80,435,523$ 4,100,000$ 3,372,479$ 81,163,044$ 3,687,281$
Accrued compensated absences*590,709 527,635 580,537 537,807 345,696
Capital leases 41,699 - 8,617 33,082 3,871
Net OPEB obligation*743,037 122,204 64,552 800,689 -
Net pension liability**1,686,127 - 1,036,490 649,637 -
Self insurance liability 355,000 49,355 178,990 225,365 140,571
Other 3,055,397 - 442,122 2,613,275 90,712
Business-type activities
long-term liabilities 86,907,492$ 4,799,194$ 5,683,787$ 86,022,899$ 4,268,131$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2015, was as follows:
* - The liquidation of compensated absences and net OPEB obligation is fully covered within the General Fund and individual proprietary funds.
** - As Restated (See Note H)
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 49
As of June 30, 2015, fund balances components consisted of the following:
Nonspendable Restricted Committed Assigned
General Fund:
Advances to other funds 1,900,500$ -$ -$ -$
Inventory and prepaid items 672,248 - - -
PEG capital support - 19,803 - -
School Department
Regular - 468,621 - -
Adult education - 22,502 - -
General evening - 74,646 - -
Reading assessment - 247 - -
Special revenue - 66,287 - -
School lunch - 3,753 - -
Trust and agency - 253,425 - -
Cultural Commission/Econ Develop - - 110,933 -
Subsequent year expenditures - - - 15,987
Pooled equipment reserve - - - 319,203
Bus equipment reserve - - - 246,930
Fire equipment reserve - - - 217,237
Self insurance reserve - - - 2,021,088
Improvement reserve - - - 1,229,752
Demolition reserve - - - 52,560 Benefit reserve - - - 524,777
Parks & Recreation reserve - - - 15,193
Subtotal 2,572,748 909,284 110,933 4,642,727
Arena Fund - - 871,271 -
Capital Projects Fund:
Capital project funds - - - 4,657,905
Subtotal - - - 4,657,905
Other Governmental Funds:
Nonexpendable trust principal 532,758 - - -
Nonmajor Special Revenue Funds
Infrastructure - 427,473 - -
Public Safety - 168,496 - -
Transportation - 208,151 - -
Economic Develop - 585,045 - -
Parks - 513,046 - -
Health - 106,930 - -
Other Municipal - 51,592 - -
Nonmajor Permanent Funds
Cemetery - 113,062 - -
Missionary - 86,065 - -
Education - 106,542 - -
Other Municipal - 189,954 - -
Subtotal 532,758 2,556,356 - -
Total 3,105,506$ 3,465,640$ 982,204$ 9,300,632$
DETAILED NOTES ON ALL FUNDS, CONTINUED
J. Fund Balances
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 50
Governmental Business-type
Capital assets 145,098,050$ 470,364,096$
Accumulated depreciation (66,774,652) (240,092,084)
Bonds payable (64,518,015) (81,163,044)
Capital leases (549,636) (33,082)
Non capital related bonds payable 34,808,420 9,925,860
Non capital related capital leases 271,911 -
Premium on long term debt (629,383) (2,456,776)
Unspent bond proceeds 2,323,330 -
Net investment in capital assets 50,030,025$ 156,544,970$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Encumbrances at year end were $1,286,138 for General Fund, $29,290 for Community Development
Block Grant Fund, $2,487,575 for Capital Projects Fund, $7,537,421 for Airport Fund and $985,014 for Sewer Utility Fund.
K. Net Position
Net position represents the difference between assets and deferred inflows and liabilities and deferred
outflows. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of bonds and capital leases payable and adding back any unspent
proceeds. Net position is reported as restricted when there are limitations imposed on their use either
through the enabling legislations adopted by the City of through external restrictions imposed by
creditors, grantors or laws or regulations of other governments. The City’s net investment in capital
assets was calculated as follows at June 30, 2015:
OTHER INFORMATION
A. Risk Management
The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of
assets, errors and omissions, injuries to employees, and natural disasters for which the City either
carries commercial insurance or is self–insured. The City currently reports all of its risk management
activities in the General and Proprietary Funds. Claims expenditure, liabilities and reserves are
reported when it is probable that a loss has occurred and the amount of the loss can be reasonably
estimated. These losses include an estimate of claims that have been incurred but not reported.
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, 2015, 2014 and 2013.
The City is self-insured for its workers’ compensation liability. Reserves are actuarially determined
each year to assure funding adequacy. In addition, the City purchases excess workers’ compensation insurance to limit its financial risk. At June 30, 2015, the amount of self-insurance liabilities was
$2,246,453. This liability is the City’s best estimate based on available information.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 51
Workers'All other self-
Compensation insured risks Total
Unpaid claims as of July 1, 2013 2,024,926$ 312,992$ 2,337,918$
Incurred claims 533,535 - 533,535
Payments (718,917) - (718,917)
Changes in estimates and other adjustments 59,851 365 60,216
Unpaid claims as of July 1, 2014 1,899,395 313,357 2,212,752
Incurred claims 361,719 - 361,719
Payments (552,255) - (552,255)
Changes in estimates and other adjustments 224,731 (494) 224,237
Unpaid claims as of July 1, 2015 1,933,590$ 312,863$ 2,246,453$
OTHER INFORMATION, CONTINUED
Changes in the reported liabilities since July 1, 2013 resulted from the following:
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.
Hammond Street Courtyard Municipal Development District - Assisted Hammond Street Courtyard LP
with the rehabilitation and reuse of the former Bangor Furniture store and office buildings.
Downtown Municipal Development District – To partially finance in excess of $70 million dollars of
infrastructure improvements within the boundaries of the district.
Penjajawoc Marsh/Mall Area Traffic Infrastructure District – To partially finance traffic infrastructure
improvements in the Bangor Mall area and environmental improvement projects in the Penjajawoc
Marsh/Bangor Mall area.
Maine Hall Affordable Housing Development District – To partially fund conversion of the former
Bangor Seminary property into affordable housing units.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 52
OTHER INFORMATION, CONTINUED
C. Contingent Liabilities
In 2002, the City filed suit against Citizens Communication Company (Citizens), a potentially responsible party to force cleanup of contamination of the Penobscot River bottom due to the inability
to reach settlement. In July 2007, the City reached a settlement agreement with Citizens, whereby the
City received $7.625 million to be held in escrow and applied to the cost of remediation. A Consent
Decree has been negotiated with the Department of Environmental Protection (DEP) for the
remediation the first phase of which has been completed. The City continues to work with State and
Federal agencies to negotiate an agreement for the remainder of the remediation.
In 1991, the City entered into a consent decree with the Federal Environmental Protection Agency
(EPA) in regards to wastewater discharge. The City complied with and completed the projects and
plans as originally identified in the 1991 decree. As anticipated, the City has entered into a second
consent decree with the EPA to undertake the following additional remedial measures; Capacity
Management Operations and Maintenance Program (CMOM) Corrective Action plan, Sewer System
Asset Management Preventive Maintenance and Sewer Maintenance Improvement Plan (MIP),
Municipal Separate Storm Sewer System (MS4), Combined Sewer Overflow Controls, Phase II
Combined Sewer Overflow (CSO) Long-term Control Plan (LTCP), including associated reporting. A
complete copy of the Consent Decree is available Wastewater Treatment Plant page of the City’s
website www.bangormaine.gov.
GLP Capital LP and HC Bangor, LLC filed an appeal of the April 1, 2014 assessed value of real estate
associated with Hollywood Casino with the Maine Board of Property Tax Review. The appeal to reduce
the assessed value from $98,178,100 to $61,380,000 was initially denied by the City’s Board of
Assessment Review in August 2015. The City will hire outside Counsel, specializing in gaming property assessments to defend its position at the Maine Board of Property Tax Review. At this time, the timing
of the appeal and the potential impact can not be reasonably determined.
The City is a party to various other lawsuits. Although the outcome of these lawsuits is not presently
determinable, it is the opinion of the City’s counsel that resolution of these matters will not have a
material adverse effect on the financial condition of the City. D. Retirement
The City of Bangor provides retirement pensions for its employees through a number of vehicles,
including a defined contribution plan, defined benefit pension plan and social security.
Defined Contribution Plan
Description of the Plan - The City provides pension benefits for certain employees through a 401(a)
defined contribution plan administered by ICMA/RC. In addition, certain full-time 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. The authority to establish and amend plan provisions or requirements rests with the City.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 53
OTHER INFORMATION, CONTINUED
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 2015 covered payroll was $17,569,991 and City
contributions were $1,515,539. For those plan members that have employment contracts, the City
contributes at various rates from 10% - 15% of annual earnings. The covered payroll and City contributions for those employees with employment contracts were $475,631 and $55,053
respectively, in fiscal year 2015.
Defined Benefit Pension Plan
Description of the Plan – For certain employees the City contributes to the Maine Public Employees
Retirement System Consolidated Plan for Local Participating Districts (PLD Plan) and Maine Public
Employees Retirement System State Employee and Teacher Plan (SET Plan), cost sharing multiple-
employer defined benefit pension plans, administered by the Maine Public Employers Retirement
System (MPERS). Benefit terms are established in Maine statute. MPERS issues a publicly available
financial report that can be obtained at www.mainepers.org.
Benefits Provided – The PLD and SET Plans provide defined retirement benefits based on members’
average final compensation and service credit earned as of retirement. Vesting (i.e. eligibility for
benefits upon reaching qualification) occurs upon the earning of five years of credit service. In some
cases, vesting occurs on the earning of one year of service credit immediately preceding retirement at
or after normal retirement age. For PLD members, normal retirement age is 60 or 20 or 25 years of
service for certain public safety employees. For SETP members, normal retirement age is 60, 62 or 65.
The normal retirement age is determined by whether a member had certain creditable service
requirements on specific dates, as established by statute. The monthly benefit of members who retire before normal retirement age by virtue of having at least 25 years of service credit is reduced by a
statutorily prescribed factor for each year of age that a member is below his/her normal age at
retirement. MPERS also provides disability and death benefits, which are established by contract under applicable statutory provisions (PLD Plan) or by statute (SET Plan).
Contributions – Employee contribution rates are defined by law of Board rule and depend on the terms
of the plan under which an employee is covered. Employer contributions are determined by actuarial
valuations. The contractually required contribution rates actuarially determined as an amount that,
when combined with employee contributions, is expected to finance the costs of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability.
PLD Plan – Employees are required to contribute 7% of their annual pay. The City’s
contractually requirement contribution rate for the year June 30, 2015 ranged from 7.8% -
13.40% depending on the applicable benefit structure. The City’s contributions to the pension
plan were $807,117 for the year ended June 30, 2015.
SET Plan – Maine statute requires the State to contribute a portion of the City’s contractually
required contributions. Employees are required to contribute 7.65% of their annual pay. The
City’s contractually required contribution rate for the year ended June 30, 2015 was 15.68% of
annual payroll of which 2.65% of payroll was required from the City and 13.03% was required
from the State. Contributions to the pension plan from the City were $668,126 for the year
ended June 30, 2015.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 54
OTHER INFORMATION, CONTINUED
Pension Liabilities, Expense and Deferred Outflows and Inflows of Resources – The net pension
liabilities were measured as of June 30, 2014, and the total pension liabilities used to calculate the net
pension liabilities were determined by actuarial valuations as of that date, The City’s proportion of the net pension liabilities were based on projections of the City’s long-term share of contributions to the
pension plans relative to the projected contributions of all participating local districts (PLD Plan) and of
all participating School Administrative Units and the State (SET Plan), actuarially determined.
PLD Plan – At June 30, 2015, the City’s reported liability of its proportionate share of the net
pension liability was $3,475,288. At June 30, 2014, the City’s proportion of the PLD plan was
2.2584%.
SET Plan – At June 30, 2015, the City’s reported liability of its proportionate share of the net
pension liability was reduced to reflect the State support provided to the City. The amount
recognized by the City as its proportionate share of the net pension liability, the related State
support, and the total portion of the net pension liability associated with the City were as
follows:
City’s proportionate share of the net pension liability $1,011,232
State’s proportionate share of the net pension liability $22,516,392
Total $23,527,624
At June 30, 2014, the City’s proportion of the SET Plan was .0936%.
For the year ended June 30, 2015, the City recognized pension expense of ($554,014) for the PLD Plan
and $3,401,227 and revenue of $3,285,152 for support provided by the State for the SET Plan. At June
30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred
Outflows of Inflows of Resources Resources
Differences between expected and
actual experience $327,292 $3,371
Changes of assumptions 46,428 -
Net difference between projected and actual
earnings on pension plan investments - 3,298,975
Changes in proportion and differences
between City contributions and
proportionate share of contributions 273,483 678,805
City contributions subsequent to the
measurement date 1,475,243 -
Total $ 2,122,446 $ 3,981,151
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 55
OTHER INFORMATION, CONTINUED
$1,475,243 is reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension liabilities in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended June 30:
2016 ($794,799)
2017 (794,799)
2018 (919,604)
2019 (824,746)
Actuarial assumptions - The total pension liability in the June 30, 2014 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement: PLD Plan SET Plan
Inflation 3.5% 3.5%
Salary Increases, per year 3.5% to 9.5% 3.5% to 13.5%
Investment return, per annum, compounded annually 7.25% 7.125%
Cost of living benefit increases, per annum 3.12% 2.55%
Mortality rates were based on the RP2000 Combined Mortality Table projected forward to 2015 using
Scale AA.
The actuarial assumptions used in the June 30, 2014 valuation were based on the results of an
actuarial experience study for the period July 1, 2005 to June 30, 2010.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the pension
plan’s target asset allocation as of June 30, 2014 are summarized in the following table:
Long-Term Expected
Asset Class Target Allocation Real Rate of Return
US equities 20% 2.5%
Non-US equities 20% 5.5%
Private equity 10% 7.6%
Real estate 10% 3.7%
Infrastructure 10% 4.0%
Hard assets 5% 4.8%
Fixed income 25% 0.0%
Total 100%
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 56
OTHER INFORMATION, CONTINUED
Discount rate - The discount rate used to measure the total pension liability was 7.25% for the PLD
Plan and 7.125% for the SET Plan. The projection of cash flows used to determine the discount rates assumed that employee contributions will be made at the current contribution rate and that
contributions from participating local districts will be made at contractually required rates, actuarially
determined. Based on these assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liabilities.
Sensitivity of the City’s proportionate share of the net pension liabilities to changes in the discount rate
- The following presents the City’s proportionate share of the net pension liability calculated using the
discount rate of 7.25% for the PLD Plan and 7.125% for the SET Plan, as well as what the City’s
proportionate share of the net pension liability would be if it were calculated using a discount rate that
is 1-percentage-point lower (6.25% for PLD Plan and 6.125% for SET Plan) or 1 percentage-point
higher (8.25% for PLD Plan and 8.125% for SET Plan) than the current rate:
1% Current 1%
Decrease Discount Rate Increase
(6.25%) (7.25%) (8.25%)
PLD Plan $ 10,841,873 $ 3,475,288 ($ 2,682,262)
1% Current 1%
Decrease Discount Rate Increase
(6.125%) (7.125%) (8.125%)
SET Plan $ 1,936,927 $ 1,011,232 $ 236,637
Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net position
is available in the separately issued MPERS financial report.
Payables to the pension plan - None as of June 30, 2015.
Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue (IRC) Section 457. The plan permits participating employees to defer a portion of their salary
until future years. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency.
Social Security
The City does not have a section 218 agreement to provide full social security coverage to its
employees. The City does provide full social security coverage to part-time, seasonal and temporary
employees under the Omnibus Budget Reconciliation Act of 1990, and Internal Revenue Service
regulations, which became effective July 1, 1991.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 57
Annual required contribution (ARC)604,811$
Amortization adjustment to ARC (185,593)
Interest on net OPEB obligation 128,372
Annual OPEB cost 547,590$
June 30, 2013 June 30, 2014 June 30, 2015
Annual OPEB cost 557,850$ 550,729$ 547,590$
City contributions (274,117) (235,369) (253,004)
Increase in net OPEB obligation 283,733 315,360 294,586
Net OPEB obligation, beginning of year 2,610,196 2,893,929 3,209,289
Net OPEB obligation, end of year 2,893,929$ 3,209,289$ 3,503,875$
Percentage contributed 49.14%42.74%46.20%
Governmental Business-type Total
Activities Activities June 30, 2015
Actuarial accrued liability (AAL)5,310,515$ 1,525,576$ 6,836,091$
Actuarial value of plan assets - - -
Unfunded actuarial accrued liability (UAAL)5,310,515$ 1,525,576$ 6,836,091$
Covered payroll 16,550,206$ 4,754,453$ 21,304,659$
UAAL as a percentage of covered payroll 32.09%
OTHER INFORMATION, CONTINUED
E. Other Postemployment Benefits
Description of the Plan - The City sponsors a single-employer post-retirement benefit plan providing
health insurance to retiring employees through CIGNA. CIGNA issues a publicly available financial
report that may be obtained through their website www.cigna.com. Full- time City employees age 50
or older and covered under the active medical plan are eligible to participate. Retirees that are
designated in a plan pay 100% of the coverage premium. A Medicare Supplement plan is available for
eligible retirees. For retirees without Medicare, coverage is available without a Medicare offset.
Funding Policy and Annual OPEB Cost - GASB Statement 45 does not mandate the prefunding of
postemployment benefits liability. The City currently plans to fund these benefits on a pay-as-you-go
basis. No assets have been segregated and restricted to provide postemployment benefits. The annual
required contribution (ARC), an actuarial determined rate, represents a level of funding that, if paid on
an ongoing basis, is projected to cover normal cost each year and amortize unfunded actuarial
liabilities over a period not to exceed thirty years. The following table represents the OPEB costs for
the year and the annual required contribution:
Funding Status and Funding Progress – The City’s annual OPEB cost, the net OPEB obligation and the
percentage of annual OPEB cost contributed to the plan for the years ending June 30, 2013, 2014 and 2015 are as follows:
The unfunded actuarial accrued liability as a percentage of covered payroll for June 30, 2015 is as
follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 58
OTHER INFORMATION, CONTINUED
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events in the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are
compared to past expectations and new estimates are made about the future. The required schedule
of funding progress presented as required supplementary information provides multiyear trend information (only six years available) that shows whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Actuarial methods and assumptions – Projections of benefits are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits in force at
the valuation date and the pattern of sharing benefit costs between the City and plan members at that
point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that
are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of
plan assets. Significant methods and assumptions were as follows:
Actuarial valuation date 06/30/15
Actuarial cost method Projected unit credit cost method
Amortization method Level dollar
Amortization period 30 years - open
Actuarial assumptions:
Inflation rate 3.0%
Investment rate of return 4.0%
Payroll growth 3.0%
Healthcare cost trend rate 9.0% - 5.0%
Post retirement benefit increases 0.0% - retirees pay 100% of premium
F. Subsequent Events
On August 10, 2015 the City Council authorized the issuance of up to $1,739,000 in general obligation
bonds for the purpose of funding street and sidewalk work, bus replacement, the City’s annual
fleet/equipment replacement and WWTP infrastructure improvements. Under a separate Order, the
Council also authorized a loan up to $3,870,000 from the Maine Municipal Bond Bank State Revolving
Fund to finance sewer infrastructure improvements.
G. Disposal of Operations
In June 2015, the City sold the assets comprising the Park Woods Enterprise fund to Bangor Housing
Authority for the price of $1.3 million. In order, to facilitate the sale, the City paid $1.3 million to the
United States Government to abrograte the deed restrictions on the property. As a result the City
recognized a loss of $484,664 on the sale as a special item.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 59
Sewer Nonmajor
Governmental Utility Airport Proprietary
Activities Fund Fund Funds
Net position, beginning of year 31,454,716$ 43,245,485$ 110,935,336$ 2,291,505$
Net pension liability, 2014 (6,736,271) (379,915) (1,084,030) (58,187)
Net prior year depreciation adjustment - - (754,923) -
Net position, beginning of year, restated 24,718,445$ 42,865,570$ 109,096,383$ 2,233,318$
Airport
Fund
Airport operational assets, accumulated depreciation, beginning of year (168,400,877)$
Additional depreciation expense (754,923)
Airport operational assets, accumulated depreciation, beginning of year, restated (169,155,800)$
Governmental Business-type
Activities Activities
Net pension liability, beginning of year -$ -$
Net pension liability, 2014 8,002,203 1,686,127
Net pension liability, beginning of year, restated 8,002,203$ 1,686,127$
OTHER INFORMATION, CONTINUED
H. Restatement
The beginning of year, net position for Governmental Activities, the Sewer Utility Fund, Airport Fund,
Parking Fund and Municipal Golf Course Fund has been restated. The restatement was due to the
implementation of GASB 68, Accounting and Financial Reporting for Pensions, to account for the addition of the City’s proportionate share of the net pension liability and deferred outflows of the City’s
contributions subsequent to the measurement date.
In addition, the beginning of year, net position for the Airport Fund has been restated to reflect prior
year depreciation expenses. A number of capital assets were found to be under depreciated due to
calculation discrepancies.
The beginning of year, accumulated depreciation for Airport operational assets has been restated. The
restatement was due to properly reflect depreciation for capital assets that were found to be under
depreciated in prior years due to calculation discrepancies.
The beginning of year, Changes in Long-term Liabilities, net pension liability, for Governmental
Activities and Business-type Activities has been restated. The restatement was due to the
implementation of GASB 68, Accounting and Financial Reporting for Pensions, to account for the
addition of the City’s proportionate share of the net pension liability and deferred outflows of the City’s
contributions subsequent to the measurement date.
II - 60
2009 2010 2011 2012 2013*2014 2015
Actuarial Valuation Date 7/1/2008 7/1/2008 1/1/2011 1/1/2011 6/30/2013 6/30/2014 6/30/2015
Governmental activities:Actuarial value of assets -$ -$ -$ -$ -$ -$ -$ Actuarial accrued liability (AAL)8,488,427 8,488,427 3,407,638 3,430,307 5,284,045 5,213,644 5,310,515
Unfunded actuarial accrued liability (UAAL)8,488,427$ 8,488,427$ 3,407,638$ 3,430,307$ 5,284,045$ 5,213,644$ 5,310,515$
Funded ratio 0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Covered payroll 16,257,319$ 17,224,485$ 17,369,969$ 17,175,024$ 16,901,784$ 16,098,456$ 16,550,206$
Business-type activities:Actuarial value of assets -$ - - -$ - -$ -$
Actuarial accrued liability (AAL)2,710,336 2,710,336 1,095,160 1,072,491 1,587,047 1,657,448 1,525,576
Unfunded actuarial accrued liability (UAAL)2,710,336$ 2,710,336$ 1,095,160$ 1,072,491$ 1,587,047$ 1,657,448$ 1,525,576$
Funded ratio 0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Covered payroll 5,190,927$ 5,439,647$ 5,582,428$ 5,369,798$ 5,053,806$ 5,117,794$ 4,754,453$
Primary government:
Actuarial value of assets -$ -$ -$ -$ -$ -$ -$
Actuarial accrued liability (AAL)11,198,763 11,198,763 4,502,798 4,502,798 6,871,092 6,871,092 6,836,091
Unfunded actuarial accrued liability (UAAL)11,198,763$ 11,198,763$ 4,502,798$ 4,502,798$ 6,871,092$ 6,871,092$ 6,836,091$
Funded ratio 0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Covered payroll 21,448,246$ 22,664,132$ 22,952,397$ 22,544,822$ 21,955,590$ 21,216,250$ 21,304,659$
UAAL as a percentage of covered payroll 52.21%49.41%19.62%19.97%31.30%32.39%32.09%
Only seven years have been presented because 2009 was the year GASB Statement 45 was implemented.
* - restated to reflect the reduction in liability resulting from the City discontinuing employment of all employees in the Bass Park Fund.
Fiscal Year
CITY OF BANGOR, MAINE
Required Supplementary Information
Schedule of Funding Progress - Retiree Healthcare Plan
For the Fiscal Year Ended June 30, 2015
II - 61
CITY OF BANGOR, MAINE
Required Supplementary Information
Schedule of City's Proportionate Share of the Net Pension Liability
Maine Public Employees Retirement System Consolidated Plan (PLD) and State Employee and Teacher Plan (SET)Last 10 Fiscal Years*
2015
PLD Plan
Proportion of the net pension liability 2.2584%
Proportionate share of the net pension liability 3,475,288
Covered-employee payroll 9,799,964
Proportion share of the net pension liability
as a percentage of its covered-employee payroll 35.46%
Plan fidicuiary net position as a percentage of
the total pension liability 94.10%
SET Plan
Proportion of the net pension liability 0.0936%
City's proportionate share of the net pension liability 1,011,232$
State's proportionate share of the net pension liability 22,516,392
Total 23,527,624
Covered-employee payroll 25,212,217
Proportion share of the net pension liability
as a percentage of its covered-employee payroll 4.01%
Plan fidicuiary net position as a percentage of
the total pension liability 83.91%
* The amounts presented for each fiscal year were determined as of the prior fiscal year. As 2015 is the first year of implementation, prior
years data is not available.
II - 62
CITY OF BANGOR, MAINE
Required Supplementary Information
Schedule of City's Contributions
Maine Public Employees Retirement System Consolidated Plan (PLD) and State Employee and Teacher Plan (SET)Last 10 Fiscal Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
PLD Plan
Contractually Required Contributions 479,766 486,678 492,537 468,553 474,008 584,306 724,134 769,519 782,913 807,117
Contributions in relation to the
contractually required contribution 479,766 486,678 492,537 468,553 474,008 584,306 724,134 769,519 782,913 807,117
Contribution deficiency (excess)- - - - - - - - - -
Covered-employee payroll 15,129,401 15,026,926 15,210,573 14,618,061 14,731,041 14,777,273 13,201,233 11,867,248 10,645,005 9,799,964
Contributions as a percentage of
covered-employee payroll 3.17%3.24%3.24%3.21%3.22%3.95%5.49%6.48%7.35%8.24%
SET Plan*
Contractually required contributions - - - - - - - - 647,014 668,126
Contributions in relation to the
contractually required contribution - - - - - - - - 647,014 668,126
Contribution deficiency (excess)- - - - - - - - - -
Covered-employee payroll - - - - - - - - 24,415,639 25,212,217
Contributions as a percentage of
covered-employee payroll - - - - - - - - 2.65%2.65%
* - Until FY 2014, all employer contributions for the SET Plan were paid by the State of Maine
Notes to Required Supplementary Information
Change of benefit terms None
Changes of assumptions The SETP changed the discount rate from 7.25% in the 2013 valuation to 7.125% in the 2014 valuation.
GENERAL FUND
The General Fund is used to account for resources traditionally associated with the government, which are not required legally or by sound financial management, to be
accounted for in another fund.
II - 63
Schedule A-1
CITY OF BANGOR, MAINE
Balance Sheet
General FundJune 30, 2015
ASSETS
Cash and cash equivalents 11,711,326$
Investments 50,000
Receivables:
Taxes 3,333,089
Accounts (net of allowance of $465,108)1,825,765
Interfund 5,768,579
Intergovernmental 1,862,538
Loans 684,336
Inventory, at cost 542,476
Prepaid items 129,772
Total assets 25,907,881
LIABILITIES
Accounts payable 1,026,306$
Accrued wages and benefits payable 4,091,659
Total liabilities 5,117,965
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - property taxes 2,559,119
Total deferred inflows of resources 2,559,119
FUND BALANCES
Nonspendable 2,572,748
Restricted 909,284
Committed 110,933
Assigned 4,642,727
Unassigned 9,995,105
Total fund balance 18,230,797
Total liabilities, deferred inflows of
resources and fund balances 25,907,881$
II - 64
Schedule A-2
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General Fund
For the Fiscal Year Ended June 30, 2015
Balances Variance
Carried
7/1/2014 Budget Actual Surplus Carried
Revenues
Taxes
Real and personal property -$ 55,587,290$ 55,729,217$ 33,191$ 108,736$
Change in unavailable property tax - - (1,676) (1,676) -
Tax increment financing district - (2,452,099) (2,452,098) 1 -
Payment in lieu of taxes - 150,000 156,417 6,417 -
Excise - 4,671,000 5,844,800 1,173,800 -
Interest on delinquent taxes - 200,000 191,852 (8,148) -
Total taxes - 58,156,191 59,468,512 1,203,585 108,736
Intergovernmental
State revenue sharing - 2,033,162 2,129,659 96,497 -
School subsidy - 15,958,047 15,823,247 - (134,800)
Other -
municipal - 3,198,270 3,368,813 170,543 -
school - 4,335,289 4,369,969 - 34,680
Total intergovernmental - 25,524,768 25,691,688 267,040 (100,120)
Other revenue
Licenses and permits - 701,676 831,968 130,292 -
Charges for service -
municipal - 8,798,082 9,102,048 303,966 -
school - 3,231,881 4,699,051 - 1,467,170
Fines, forfeits and penalties - 32,000 27,119 (4,881) -
Revenue from use of money and property -
municipal - 696,850 684,833 (12,017) -
Total other - 13,460,489 15,345,019 417,360 1,467,170
Total revenues - 97,141,448 100,505,219 1,887,985 1,475,786
II - 65
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General FundFor the Fiscal Year Ended June 30, 2015
Balances Variance
Carried
7/1/2014 Budget Actual Surplus Carried
Expenditures
General government
Council - 30,018 29,058 960 -
Executive - 962,408 1,156,051 (193,643) -
Human resources - 129,005 97,784 31,221 -
City clerk - 393,129 325,385 67,744 -
Assessing - 358,275 352,046 6,229 -
Legal - 279,901 281,951 (2,050) -
Finance - 1,610,816 1,629,506 (18,690) -
Insurance - 165,700 166,987 (1,287) -
Planning, econ dev, code enforcement - 1,216,073 1,199,197 16,876 -
Total general government - 5,145,325 5,237,965 (92,640) -
Public safety
Police - 8,771,851 8,248,166 523,685 -
Fire - 8,538,397 8,739,573 (201,176) -
Total public safety - 17,310,248 16,987,739 322,509 -
Health, community services and recreation
Health and community services - 3,076,618 3,121,171 (44,553) -
Parks and recreation - 1,862,594 1,924,816 (62,222) -
Total health, commun. serv and rec.- 4,939,212 5,045,987 (106,775) -
Public buildings and services - 10,319,342 10,703,629 (384,287) -
II - 66
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General Fund
For the Fiscal Year Ended June 30, 2015
Balances Variance
Carried
7/1/2014 Budget Actual Surplus Carried
Expenditures, continued
Other agencies
County tax - 3,091,839 3,091,839 - -
Downtown Development District - 57,000 57,000 - -
Public library - 1,400,395 1,400,395 - -
Other agencies 2,623 100,948 135,463 (34,089) 2,197
Total other agencies 2,623 4,650,182 4,684,697 (34,089) 2,197
Education
Regular instruction - 19,386,737 18,966,271 - 420,466
Special education - 6,673,332 6,646,471 - 26,861
Instructional support - 3,671,154 3,528,748 - 142,406
System administration - 1,081,943 1,055,042 - 26,901
CTE instruction - 465,000 456,973 - 8,027
School administration - 2,382,753 2,286,854 - 95,899
Facilities maintenance - 4,588,356 4,580,917 - 7,439
Transportation - 1,900,000 1,736,422 - 163,578
Other instruction - 1,353,543 1,227,358 - 126,185
Debt service - 1,569,877 1,564,655 - 5,222
Contingency & other - 74,865 66,261 - 8,604
Regular 2,413,076 43,147,560 42,115,972 - 3,444,664
Adult education 57,585 606,732 561,289 - 103,028
School lunch 116,213 1,436,587 1,502,377 - 50,423
Special revenue 61,647 3,047,986 2,914,307 - 195,326
Trust and agency 167,287 1,111,365 2,308,561 - (1,029,909)
Total education 2,815,808 49,350,230 49,402,506 - 2,763,532
Other appropriations
Pensions and other fringe benefits - 2,200,737 2,182,153 18,584 -
Debt service - 3,118,297 3,109,398 8,899 -
Tax increment financing payments - 982,167 1,017,870 (35,703) -
Total other appropriations - 6,301,201 6,309,421 (8,220) -
Total expenditures 2,818,431 98,015,740 98,371,944 (303,502) 2,765,729
Excess (deficiency) of revenues
over/under expenditures (2,818,431) (874,292) 2,133,275 1,584,483 4,241,515
II - 67
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General FundFor the Fiscal Year Ended June 30, 2015
Balances Variance
Carried
7/1/2014 Budget Actual Surplus Carried
Other financing sources (uses)
Appropriation from restricted, committed
and assigned fund balances - 1,416,669 72,339 (26,830) (1,317,500)
Appropriation from unassigned fund balance - 19,123 - (19,123) -
Appropriation to assigned fund balances - - (1,000,000) (1,000,000) -
Sale of assets - 29,000 43,809 14,809 -
Contributions - - 465 465 -
Insurance Settlements - 27,500 47,245 19,745 -
Transfers to other funds - (645,000) (1,002,124) (357,124) -
Transfers from other funds - 27,000 26,191 (809) -
Total other financing sources (uses)- 874,292 (1,812,075) (1,368,867) (1,317,500)
Net change in unassigned fund balance (2,818,431)$ -$ 321,200$ 215,616$ 2,924,015$
Unassigned fund balance, beginning of year 9,598,472
Changes in amounts required to be shown as nonspendable fund balance
Inventory and prepaids 181,017
Unassigned fund balance, end of year 9,995,105$
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally
restricted to expenditures for particular purposes.
Other HUD Funds – This is used to account for 1) federal grants obtained and expended
under the Housing and Community Development Act of 1974, as amended, for the
redevelopment of the downtown commercial core of the City and 2) low interest loans to
businesses within the City of Bangor for establishment, expansion or redevelopment
purposes.
Grant Fund – Accounts for federal and state grants that are legally restricted to
expenditures allowable by the grantor agency.
Dedicated Revenue Funds - Accounts for amounts raised or donated to benefit various governmental programs such as; the Dental Clinic, local parks, City forest and Park
Woods complex.
Other Funds – Accounts for funds held to be used in future periods such as tax financing district repayments and other community funds for capital expenditures relating to the
operation of the area transportation system.
Permanent Fund
Permanent funds are used to report resources that are legally restricted to the extent
that only earnings, not principal, may be used for purposes that support the reporting
government’s programs.
II - 68
Schedule B-1
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Governmental FundsJune 30, 2015
Nonmajor
Special Nonmajor Total Other
Revenue Permanent Governmental
Funds Funds Funds
ASSETS
Cash and cash equivalents $1,221,452 -$ 1,221,452$
Investments - 127,855 127,855
Receivables:
Accounts 52,402 - 52,402
Loans and notes 909,155 900,526 1,809,681
Intergovernmental 92,130 - 92,130
Total assets $2,275,139 1,028,381$ 3,303,520$
LIABILITIES
Accounts payable $32,076 -$ 32,076$
Interfund loans payable 22,330 - 22,330
Total liabilities 54,406 - 54,406
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - loans 160,000 - 160,000
Total deferred inflows of resources 160,000 - 160,000
FUND BALANCES
Nonspendable - 532,758 532,758
Restricted 2,060,733 495,623 2,556,356
Total fund balances 2,060,733 1,028,381 3,089,114
Total liabilities, deferred inflows of
resources and fund balances $2,275,139 1,028,381$ 3,303,520$
II - 69
Schedule B-2
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental FundsFor the Fiscal Year Ended June 30, 2015
Nonmajor
Special Nonmajor Total Other
Revenue Permanent Governmental
Funds Funds Funds
Revenues
Taxes $848,248 -$ 848,248$
Intergovernmental 6,847,077 - 6,847,077
Charges for services 844,093 - 844,093
Program income 12,377 - 12,377
Revenue from use of money and property 47,468 - 47,468
Other revenue 65,236 4,500 69,736
Interest revenue - 33,511 33,511
Total revenues 8,664,499 38,011 8,702,510
Expenditures
Current:
Personnel 1,155,043 - 1,155,043
Payments to beneficiaries 844,474 - 844,474
Other 3,687,588 - 3,687,588
Bus operations 2,783,549 - 2,783,549
Program expenditures - 2,114 2,114
Total expenditures 8,470,654 2,114 8,472,768
Excess of revenues over expenditures 193,845 35,897 229,742
Other financing uses
Transfers to other funds (104,509) (35,000) (139,509)
Total other financing uses (104,509) (35,000) (139,509)
Net change in fund balances 89,336 897 90,233
Fund balances, beginning of year 1,971,397 1,027,484 2,998,881
Fund balances, end of year $2,060,733 1,028,381$ 3,089,114$
II - 70
Schedule B-3
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2015
Dedicated
Other Grant Revenue
HUD Funds Fund Funds Other Totals
ASSETS
Cash and cash equivalents 372,983$ 3,092$ 481,302 364,075$ 1,221,452$
Receivables:
Accounts - 52,402 - - 52,402
Loans and notes 160,000 - 260,036 489,119 909,155
Intergovernmental - 92,130 - - 92,130
Total assets 532,983$ 147,624$ 741,338$ 853,194$ 2,275,139$
LIABILITIES
Accounts payable -$ 18,364$ -$ 13,712$ 32,076$
Interfund loans payable - 22,330 - - 22,330
Total liabilities - 40,694 - 13,712 54,406
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - loans 160,000 - - - 160,000
Total deferred inflows of resources 160,000 - - - 160,000
FUND BALANCES
Restricted 372,983 106,930 741,338 839,482 2,060,733
Total fund balances 372,983 106,930 741,338 839,482 2,060,733
Total liabilities, deferred inflows of
resources and fund balances 532,983$ 147,624$ 741,338$ 853,194$ 2,275,139$
II - 71
Schedule B-4
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Fiscal Year Ended June 30, 2015
Dedicated
Other Grant Revenue
HUD Funds Fund Funds Other Totals
Revenues
Taxes -$ -$ -$ 848,248$ 848,248$
Intergovernmental - 6,847,077 - - 6,847,077
Charges for services - 844,093 - - 844,093
Program income 12,377 - - - 12,377
Revenue from use of money and property - - 28,200 19,268 47,468
Contributions - - 416 64,820 65,236
Total revenues 12,377 7,691,170 28,616 932,336 8,664,499
Expenditures
Current:
Personnel - 1,155,043 - - 1,155,043
Payments to beneficiaries - - 10 844,464 844,474
Other - 3,687,588 - - 3,687,588
Bus operations - 2,783,549 - - 2,783,549
Total expenditures - 7,626,180 10 844,464 8,470,654
Excess of revenues
over expenditures 12,377 64,990 28,606 87,872 193,845
Other financing uses
Transfers to other funds - - (96,509) (8,000) (104,509)
Total other financing uses - - (96,509) (8,000) (104,509)
Net change in fund balances 12,377 64,990 (67,903) 79,872 89,336
Fund balances, beginning of year 360,606 41,940 809,241 759,610 1,971,397
Fund balances, end of year 372,983$ 106,930$ 741,338$ 839,482$ 2,060,733$
II - 72
Schedule B-5
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Permanent FundsJune 30, 2015
Revolving
Other Loan
Funds Funds Totals
ASSETS
Investments -$ 127,855$ 127,855$
Loans receivable 900,526 - 900,526
Total assets 900,526 127,855$ 1,028,381$
LIABILITIES AND
FUND BALANCES
Liabilities -$ -$ -$
Total liabilities - - -
Fund balances
Nonspendable 404,903 127,855 532,758
Restricted 495,623 - 495,623
Total fund balances 900,526 127,855 1,028,381
Total liabilities and and fund balances 900,526$ 127,855$ 1,028,381$
II - 73
Schedule B-6
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Permanent FundsFor the Fiscal Year Ended June 30, 2015
Revolving
Other Loan
Funds Funds Totals
Revenues
Investment income $32,453 1,058$ 33,511$
Lot sales 4,500 - 4,500
Total revenues 36,953 1,058 38,011
Expenditures
Current:
Payments to beneficiaries 114 2,000 2,114
Total expenditures 114 2,000 2,114
Excess (deficiency) of revenues
over (under) expenditures 36,839 (942) 35,897
Other financing uses
Transfer to other funds (35,000) - (35,000)
Total other financing uses (35,000) - (35,000)
Net change in fund balances 1,839 (942) 897
Fund balances, beginning of year 898,687 128,797 1,027,484
Fund balances, end of year $900,526 127,855$ 1,028,381$
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises. The intent of the government is to have
the costs of providing goods or services to the general public financed or recovered
primarily through user charges. The government has decided that periodic
determination of net income is appropriate for accountability purposes.
In addition to the major funds reported in Summary of Significant Accounting Policies,
Note C the City has the following nonmajor enterprise funds:
Park Woods – This 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.
Stormwater Utility – This fund assesses property owners a fee based on the amount of impervious surface to fund the costs associated with stormwater management.
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.
Parking Fund – This fund accounts for the operation of the City-owned parking lots and
the Pickering Square garage. Revenue sources include monthly lease payments for
parking spaces, hourly/daily parking fees, and fines and waiver fees for parking
violations. Certain of these facilities are operated under a private management contract.
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.
Continued on next page
II - 74
Schedule C-1
CITY OF BANGOR, MAINE
Combining Statement of Net Position
Nonmajor Proprietary Funds
June 30, 2015
Business-type Activities - Enterprise Funds
Economic Municipal Total
Park Stormwater Development Parking Golf Nonmajor
Woods Utility Fund Fund Course Proprietary Funds
ASSETS
Current assets
Cash and cash equivalents 12,380$ 534,728$ 2,368$ 462,255$ 313,597$ 1,325,328$
Accounts receivable 2,526 376,726 19,065 1,539 - 399,856
Net accounts receivable 2,526 376,726 19,065 1,539 - 399,856
Prepaid items - - - 57,722 - 57,722
Total current assets 14,906 911,454 21,433 521,516 313,597 1,782,906
Noncurrent assets
Capital Assets:
Land and improvements - - 3,634,485 - 1,594,732 5,229,217
Buildings and improvements - - 4,387,013 - 912,607 5,299,620
Machinery and equipment - - - - 305,859 305,859
Infrastructure - - 683,189 - - 683,189
Parking structures - - - 11,320,359 - 11,320,359
Total capital assets - - 8,704,687 11,320,359 2,813,198 22,838,244
Less accumulated depreciation - - (2,052,431) (8,883,208) (1,906,556) (12,842,195)
Net capital assets - - 6,652,256 2,437,151 906,642 9,996,049
Loans receivable - - 1,459,634 - - 1,459,634
Deposits - - 6,239 - - 6,239
Total noncurrent assets - - 8,118,129 2,437,151 906,642 11,461,922
Total assets 14,906 911,454 8,139,562 2,958,667 1,220,239 13,244,828
DEFERRED OUTFLOWS OF RESOURCES
Net pension - - - 3,667 5,665 9,332
Total deferred outflows of resources - - - 3,667 5,665 9,332
Continued from previous page
II - 75
Schedule C-1 (con't)
CITY OF BANGOR, MAINE
Combining Statement of Net Position
Nonmajor Proprietary Funds
June 30, 2015
Business-type Activities - Enterprise Funds
Economic Municipal Total
Park Stormwater Development Parking Golf Nonmajor
Woods Utility Fund Fund Course Proprietary Funds
LIABILITIES
Current liabilities
Accounts payable 12,372 7,563 49,290 43,778 24,344 137,347
Accrued wages and benefits payable 2,534 3,681 - 7,140 18,037 31,392
Accrued interest - - 54,167 10,503 1,824 66,494
Workers' compensation - - - 2,081 - 2,081
Interfund loans payable - - 857,900 - - 857,900
General obligation debt payable - 74,133 247,648 218,879 34,755 575,415
Accrued compensated absences - - - 8,910 5,058 13,968
Total current liabilities 14,906 85,377 1,209,005 291,291 84,018 1,684,597
Long-term liabilities
Workers' compensation - - - 7,919 - 7,919
General obligation debt payable - 989,423 2,474,409 1,280,812 364,488 5,109,132
Accrued compensated absences - - - 1,823 7,364 9,187
Net OPEB obligation - - - 12,162 24,022 36,184
Net pension liability - - - 8,519 17,672 26,191
Total long-term liabilities - 989,423 2,474,409 1,311,235 413,546 5,188,613
Total liabilities 14,906 1,074,800 3,683,414 1,602,526 497,564 6,873,210
DEFERRED INFLOWS OF RESOURCES
Net pension - - - 10,257 17,950 28,207
Total deferred inflows of resources - - - 10,257 17,950 28,207
NET POSITION
Net investment in capital assets - - 3,930,199 1,078,244 582,159 5,590,602
Unrestricted - (163,346) 525,949 271,307 128,231 762,141
Total net position -$ (163,346)$ 4,456,148$ 1,349,551$ 710,390$ 6,352,743$
II - 76
Schedule C-2
Economic Municipal Total
Park Stormwater Development Parking Golf Nonmajor
Woods Utility Fund Fund Course Proprietary Funds
Operating revenues
Charges for services 459,905$ 1,088,119$ 589,383$ 1,022,305$ 611,132$ 3,770,844$
Operating expenses
Operating expenses other than
depreciation and amortization 462,648 241,082 381,623 659,094 761,756 2,506,203
Depreciation and amortization 44,562 - 185,868 269,089 70,755 570,274
Total operating expenses 507,210 241,082 567,491 928,183 832,511 3,076,477
Operating income (loss)(47,305) 847,037 21,892 94,122 (221,379) 694,367
Nonoperating revenue (expenses)
Interest income - - 62,045 20,581 427 83,053
Interest expense - - (130,803) (50,475) (16,653) (197,931)
Total nonoperating revenue (expenses)- - (68,758) (29,894) (16,226) (114,878)
Net income (loss) before grants/contributions and transfers (47,305) 847,037 (46,866) 64,228 (237,605) 579,489
Grants/contributions received for capital assets 193,061 - - - - 193,061
Special items (Disposal of Operation See Note G)(484,664) - - - - (484,664)
Transfers to other funds - (8,000) - - - (8,000)
Transfers from other funds 370,943 - - - - 370,943
Change in net position 32,035 839,037 (46,866) 64,228 (237,605) 650,829
Net position, beginning of year (Restated See Note H)(32,035) (1,002,383) 4,503,014 1,285,323 947,995 5,701,914
Net position, end of year -$ (163,346)$ 4,456,148$ 1,349,551$ 710,390$ 6,352,743$
Business-type Activities - Enterprise Funds
Nonmajor Proprietary Funds
For the Fiscal Year Ended June 30, 2015
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenses and Changes in Net Position
Continued on next page
II - 77
Schedule C-3
Economic Municipal Total
Park Stormwater Development Parking Golf Nonmajor
Woods Utility Fund Fund Course Proprietary Funds
Cash flows from operating activities
Cash received from customers 459,905$ 948,212$ 587,138$ 1,021,822$ 611,132$ 3,628,209$
Cash paid to suppliers for goods and services (468,177) (164,155) (389,562) (341,645) (439,130) (1,802,669)
Cash paid to employees for services (20,268) (79,329) - (334,585) (328,558) (762,740)
Net cash provided by (used in)
operating activities (28,540) 704,728 197,576 345,592 (156,556) 1,062,800
Cash flows from noncapital financing activities
Disposal of operations (See Note G)(1,300,000) - - - - (1,300,000)
Interfund loans (repayments)(330,500) (89,000) 105,000 - - (314,500)
Transfers in 370,943 - - - - 370,943
Transfers out - (8,000) - - - (8,000)
Net cash provided by (used in)
noncapital financing activities (1,259,557) (97,000) 105,000 - - (1,251,557)
Cash flows from capital and related financing activities
Acquisition and construction of capital assets - - (19,208) (15,500) - (34,708)
Principal paid on general obligation bonds - (74,133) (238,594) (207,766) (34,302) (554,795)
Interest paid on general obligation bonds - - (135,235) (51,562) (18,716) (205,513)
Proceeds from sale of property 1,300,000 - - - - 1,300,000
Net cash provided by (used in) capital
and related financing activities 1,300,000 (74,133) (393,037) (274,828) (53,018) 504,984
Cash flows from investing activities
Interest on investments - - 92,754 236 427 93,417
Net cash provided by investing activities - - 92,754 236 427 93,417
Net increase (decrease) in cash 11,903 533,595 2,293 71,000 (209,147) 409,644
Cash, beginning of year 477 1,133 75 391,255 522,744 915,684
Cash, end of year 12,380$ 534,728$ 2,368$ 462,255$ 313,597$ 1,325,328$
During the year, a deferred rehabilitation loan in the amount of $193,061 within the Park Woods Fund was forgiven.
For the Fiscal Year Ended June 30, 2015
Business-type Activities - Enterprise Funds
CITY OF BANGOR, MAINE
Combining Statement of Cash Flows - Nonmajor Proprietary Funds
Continued from previous page
II - 78
Schedule C-3 (con't)
Economic Municipal Total
Park Stormwater Development Parking Golf Nonmajor
Woods Utility Fund Fund Course Proprietary Funds
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)(47,305)$ 847,037$ 21,892$ 94,122$ (221,379)$ 694,367$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in)
operating activities
Depreciation and amortization 44,562 - 185,868 269,089 70,755 570,274
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (2,526) (139,907) (2,245) (483) - (145,161)
(Increase) decrease in prepaid items - (57,722) - (57,722)
Increase (decrease) in accounts payable (24,346) (4,195) (1,700) 42,192 4,272 16,223
Increase (decrease) in other liabilities 1,075 1,793 (6,239) (1,606) (10,204) (15,181)
Total adjustments 18,765 (142,309) 175,684 251,470 64,823 368,433
Net cash provided by (used in)
operating activities (28,540)$ 704,728$ 197,576$ 345,592$ (156,556)$ 1,062,800$
Business-type Activities - Enterprise Funds
CITY OF BANGOR, MAINE
Combining Statement of Cash Flows - Nonmajor Proprietary Funds
For the Fiscal Year Ended June 30, 2015
II - 79
Schedule C-4
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Sewer Utility Enterprise FundFor the Fiscal Year Ended June 30, 2015
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 7,795,400$ 8,233,353$ 437,953$
Interest and other revenue 40,000 84,070 44,070
Total revenues 7,835,400 8,317,423 482,023
Expenditures and encumbrances
Salaries 1,311,700 1,282,479 29,221
Fringe benefits 460,343 398,403 61,940
Supplies and materials 427,701 321,874 105,827
Contractual services 1,472,031 1,313,028 159,003
Utilites 747,910 678,293 69,617
Interfund charges 1,054,170 408,141 646,029
Miscellaneous 59,185 37,183 22,002
Debt service 1,818,406 1,702,933 115,473
Depreciation 1,725,450 1,762,479 (37,029)
Outlay 339,200 25,984 313,216
Total expenditures and encumbrances 9,416,096 7,930,797 1,485,299
Excess (deficiency) of revenues over(under) expenditures and encumbrances (1,580,696)$ 386,626$ 1,967,322$
II - 80
Schedule C-5
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Airport Enterprise FundFor the Fiscal Year Ended June 30, 2015
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 11,939,643$ 12,036,215$ 96,572$
Interest and other revenue 770,226 509,537 (260,689)
Total revenues 12,709,869 12,545,752 (164,117)
Expenditures and encumbrances
Salaries 4,665,647 4,942,393 (276,746)
Fringe benefits 1,558,840 1,421,971 136,869
Supplies and materials 747,125 648,653 98,472
Contractual services 2,314,928 2,426,974 (112,046)
Utilities 1,364,266 1,652,873 (288,607)
Interfund charges 748,970 682,165 66,805
Miscellaneous 142,653 79,504 63,149
Debt service 720,356 721,907 (1,551)
Depreciation 7,550,000 8,305,982 (755,982)
Outlay 301,053 223,279 77,774
Total expenditures and encumbrances 20,113,838 21,105,701 (991,863)
Deficiency of revenues underexpenditures and encumbrances (7,403,969)$ (8,559,949)$ (1,155,980)$
II - 81
Schedule C-6
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Park Woods Enterprise FundFor the Fiscal Year Ended June 30, 2015
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 452,800$ 459,905$ 7,105$
Total revenues 452,800 459,905 7,105
Expenditures and encumbrances
Salaries 12,866 12,918 (52)
Fringe benefits 5,930 5,372 558
Supplies and materials 450 72 378
Contractual services 99,656 191,406 (91,750)
Utilities 219,500 259,206 (39,706)
Interfund charges 50 - 50
Miscellaneous 7,600 13,147 (5,547)
Depreciation 89,123 44,562 44,561
Total expenditures and encumbrances 435,175 526,683 (91,508)
Deficiency of revenues underexpenditures and encumbrances 17,625$ (66,778)$ (84,403)$
II - 82
Schedule C-7
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Parking Enterprise FundFor the Fiscal Year Ended June 30, 2015
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 971,585$ 1,002,143$ 30,558$
Total revenues 971,585 1,002,143 30,558
Expenditures and encumbrances
Salaries 335,633 301,670 33,963
Fringe benefits 47,792 28,931 18,861
Supplies and materials 9,233 7,768 1,465
Contractual services 131,600 128,772 2,828
Utilities 55,897 43,447 12,450
Interfund charges 82,050 109,629 (27,579)
Miscellaneous 80 100 (20)
Debt service 259,328 259,327 1
Depreciation 268,080 269,089 (1,009)
Outlay 45,445 42,863 2,582
Total expenditures and encumbrances 1,235,138 1,191,596 43,542
Deficiency of revenues underexpenditures and encumbrances (263,553)$ (189,453)$ 74,100$
II - 83
Schedule C-8
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Bass Park Enterprise Fund
For the Fiscal Year Ended June 30, 2015
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 5,420,496$ 5,331,165$ (89,331)$
Downtown TIF 800,000 800,000 -
Total revenues 6,220,496 6,131,165 (89,331)
Expenditures and encumbrances
Cross Insurance Center operations 3,028,179 2,872,640 155,539
Owner costs 85,000 100,114 (15,114)
Debt service 3,079,107 3,079,108 (1)
Depreciation 1,710,000 2,960,805 (1,250,805)
Total expenditures and encumbrances 7,902,286 9,012,667 (1,110,381)
Deficiency of revenues under
expenditures and encumbrances (1,681,790)$ (2,881,502)$ (1,199,712)$
II - 84
Schedule C-9
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, 2015
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 649,400$ 611,132$ (38,268)$
Interest and other revenue 700 427 (273)
Total revenues 650,100 611,559 (38,541)
Expenditures and encumbrances
Salaries 302,789 264,672 38,117
Fringe benefits 50,620 43,839 6,781
Supplies and materials 60,050 65,655 (5,605)
Contractual services 50,400 50,346 54
Utilities 71,816 64,264 7,552
Interfund charges 61,400 67,786 (6,386)
Debt service 53,019 53,018 1
Depreciation 80,711 70,755 9,956
Outlay 195,350 195,350 -
Total expenditures and encumbrances 926,155 875,685 50,470
Deficiency of revenues under
expenditures and encumbrances (276,055)$ (264,126)$ 11,929$
II - 85
Schedule C-10
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Economic Development Enterprise Fund
For the Fiscal Year Ended June 30, 2015
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 776,995$ 589,384$ (187,611)$
Interest and other revenue 90,507 90,507 -
Total revenues 867,502 679,891 (187,611)
Expenditures and encumbrances
Contractual services 206,082 202,383 3,699
Utilities 73,998 111,102 (37,104)
Miscellaneous 23,944 14,670 9,274
Debt service 374,476 373,829 647
Depreciation 184,500 185,868 (1,368)
Outlay 186,500 121,964 64,536
Total expenditures and encumbrances 1,049,500 1,009,816 39,684
Deficiency of revenues under
expenditures and encumbrances (181,998) (329,925)$ (147,927)$
II - 86
Schedule C-11
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Stormwater Utility Enterprise Fund
For the Fiscal Year Ended June 30, 2015
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 1,098,302$ 852,416$ (245,886)$
Total revenues 1,098,302 852,416 (245,886)
Expenditures and encumbrances
Salaries 63,561 63,228 333
Fringe benefits 19,099 17,894 1,205
Supplies and materials 3,850 9,415 (5,565)
Contractual services 206,947 131,497 75,450
Interfund charges 317,825 8,289 309,536
Miscellaneous 2,080 2,490 (410)
Debt service 74,840 77,840 (3,000)
Outlay 410,100 12,562 397,538
Total expenditures and encumbrances 1,098,302 323,215 775,087
Excess of revenues over
expenditures and encumbrances -$ 529,201$ 529,201$
FIDUCIARY FUNDS
Fiduciary Funds are used to report assets held in a trustee or agency capacity for others.
Agency Funds – Agency Funds are used to account for situations where the City’s role is
purely custodial, such as the receipt, temporary investment, and remittance of fiduciary
resources to individuals, private organizations, or other governments.
II - 87
Schedule D-1
CITY OF BANGOR, MAINE
Statement of Changes in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended June 30, 2015
Balance Balance
July 1, 2014 Additions Deletions June 30, 2015
ASSETS
Cash:
School Activity Funds 120,448$ 223,106$ 204,029$ 139,525$
Total assets 120,448$ 223,106$ 204,029$ 139,525$
LIABILITIES
Funds held for others:
School Activity Funds 120,448$ 223,106$ 204,029$ 139,525$
Total liabilities 120,448$ 223,106$ 204,029$ 139,525$
CAPITAL ASSETS USED
IN THE OPERATION
OF GOVERNMENTAL FUNDS
II - 88
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 Ended June 30, 2015
Balance Balance
Function and Activity 2014 Additions Deletions 2015
General government
BAT community connector 2,044,393$ -$ 269,892$ 1,774,501$
Central service 24,098 - 4,344 19,754
City hall 571,449 - 23,891 547,558
Community and economic development 9,903,842 - 441,488 9,462,354
Engineering 18,120 - 6,921 11,199
Information services 195,151 - 41,951 153,200
Motor pool 3,634,457 645,219 793,136 3,486,540
Other - unclassified 116,260 - 65,798 50,462
Total general government 16,507,770 645,219 1,647,421 15,505,568
Public safety
Fire 5,327,547 885,505 1,135,700 5,077,352
Police 9,872,178 18,999 374,767 9,516,410
Total public safety 15,199,725 904,504 1,510,467 14,593,762
Health, community services and recreation
Parks and recreation 2,473,088 853,765 85,812 3,241,041
Total health, community services and recreation 2,473,088 853,765 85,812 3,241,041
Public building and services
Public works 13,217,994 1,901,326 491,371 14,627,949
Total public buildings and services 13,217,994 1,901,326 491,371 14,627,949
Education 30,402,494 3,511,709 3,559,125 30,355,078
Total governmental fund capital assets 77,801,071$ 7,816,523$ 7,294,196$ 78,323,398$
OTHER INFORMATION
II - 89
Schedule F-1
CITY OF BANGOR, MAINE
Assessed Valuation, Commitment and Collections
For the Fiscal Year Ended June 30, 2015
VALUATION
Land and buildings 2,322,253,300$
Land and buildings - Homestead exemption 51,753,000
Personal property 239,021,300
Personal property - BETE exemption 86,984,900
Total valuation 2,700,012,500$
COMMITMENT
Real estate, personal property (excludes Homestead and BETE exemptions)2,561,274,600$
Tax rate 0.02180
Total commitment 55,835,786
ADD
Supplemental taxes committed 67,275
55,903,061
LESS
Collections 2015 53,708,753
Abatements 282,782
2015 taxes receivable at June 30, 2015 1,911,526$
II - 90
Schedule F-2
CITY OF BANGOR, MAINE
General Fund Unassigned Fund Balance Sufficiency Calculation
For the Fiscal Year Ended June 30, 2015
The City Charter states that the City Council shall target an a General Fund unassigned fund balance
of no more than 16.66% of operating expenditures. The target balance is established at 8.33%
of the last year's General Fund operating expenditures. The following table sets forth the calculation
as of June 30, 2015.
General Fund expenditures/uses ( Schedule A-2)
General government 5,237,965$
Public safety 16,987,739
Health, community services and recreation 5,045,987
Public buildings and services 10,703,629
Other agencies 4,684,697
Education 49,402,506
Other appropriations 6,309,421
Other uses, gross*1,002,124
Gross expenditures and uses 99,374,068
General Fund debt service 7,365,101
Net expenditures and uses 92,008,967$
Indicated unassigned fund balance @ 8.33%7,664,347$
Actual unassigned fund balance (Schedule A-2)9,995,105$
Actual unassigned fund balance as a percentage
of net expenditures and uses 10.86%
* excludes amounts appropriated from unassigned fund balance
STATISTICAL SECTION
This part of the City of Bangor’s comprehensive annual financial report presents
detailed information as a context for understanding what the information in the
financial statements, note disclosures and required supplementary information
says about the government’s overall financial health.
Page
Financial Trends III - 1
The schedules contain trend information to help the reader
understand how the City’s financial performance and well-being
have changed over time.
Revenue Capacity III - 8
These schedules contain information to help the reader assess the
City’s most significant local revenue source, the property tax.
Debt Capacity III - 12
These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the
ability to issue additional debt in the future.
Demographic and Economic Information III - 16
These schedules offer demographic and economic indicators to help
the reader understand the environment within which the City’s
financial activities take place.
Operating Information III - 18
These schedules contain service and infrastructure data to help the
reader understand how the information in the City’s financial report
relates to the services the City provides and the activities it
performs.
III - 1
Table 1
Fiscal Year
2011 2012 2013 2014*2015
Governmental activities:
Net investment in capital assets 40,176,260$ 67,253,588$ 54,540,288$ 49,674,874$ 50,030,025$
Restricted 1,019,806 1,039,248 1,041,443 1,027,484 1,028,381
Unrestricted 262,217 (24,620,719) (21,336,473) (25,983,913) (21,993,496)
Total governmental activities net position 41,458,283 43,672,117 34,245,258 24,718,445 29,064,910
Business-type activities:
Net investment in capital assets 155,344,528 152,749,709 165,548,784 159,116,820 156,544,970
Unrestricted 15,549,352 12,823,198 4,879,657 6,860,485 8,428,935
Total business-type activities net position 170,893,880 165,572,907 170,428,441 165,977,305 164,973,905
Primary government:
Net investment in capital assets 195,520,788 220,003,297 220,089,072 208,791,694 206,574,995
Restricted 1,019,806 1,039,248 1,041,443 1,027,484 1,028,381
Unrestricted 15,811,569 (11,797,521) (16,456,816) (19,123,428) (13,564,561)
Total primary government net position 212,352,163$ 209,245,024$ 204,673,699$ 190,695,750$ 194,038,815$
Only five years have been presented because 2011 was the year GASB Statement No. 54 was implemented.
* As Restated (See Note H)
(accrual basis of accounting)Last Ten Fiscal Years
Net Position by Component
CITY OF BANGOR, MAINE
Continued on next page
III - 2
Table 2
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Expenses
Governmental activities:
General government 6,947,106$ 7,052,860$ 8,744,549$ 7,868,247$ 8,279,943$ 9,223,718$ 4,490,599$ 4,733,021$ 7,110,075$ 6,871,396$
Public safety 12,890,750 13,756,962 14,945,855 15,671,645 16,898,374 17,018,427 18,016,430 17,864,294 18,050,107 17,933,525
Health, community services and recreation 7,301,546 7,348,875 8,413,205 9,168,870 9,331,784 9,523,225 8,455,977 9,298,196 9,586,571 9,692,379
Public services*11,167,397 11,544,128 10,501,253 11,812,548 16,380,337 12,413,601 15,399,933 14,408,500 14,249,015 12,956,599
Other agencies 3,610,935 3,787,970 4,829,547 4,580,661 4,658,904 4,479,888 4,209,428 4,630,915 6,799,934 4,638,805
Education 45,522,795 46,106,647 47,537,197 54,294,824 52,763,860 50,986,350 51,223,806 50,145,937 50,594,050 52,297,774
Unclassified 947,025 1,136 - - - - - - - -
Arena development - 417,030 41,091 51,332 39,075 61,334 536,251 2,201,200 500,566 -
Community development 2,419,594 1,865,026 2,156,241 912,992 1,506,038 1,542,975 1,152,289 1,356,184 2,178,972 1,316,591
Waterfront 990,961 399,015 1,754,281 9,252,263 79,911 1,439,065 606,249 381,437 272,857 360,004
Public transportation 1,798,968 1,841,516 2,118,374 3,042,434 2,792,904 1,701,112 3,276,780 3,250,752 2,782,968 2,784,081
Economic development (tif)1,092,770 1,101,078 1,066,192 1,114,112 1,630,081 1,383,662 1,502,503 1,334,470 1,440,452 1,568,811
Interest on debt 3,098,248 1,952,612 3,206,764 2,651,599 2,555,839 2,151,172 2,710,135 3,343,590 2,464,804 2,604,030
Total governmental activities expenses 97,788,095 97,174,855 105,314,549 120,421,527 116,917,050 111,924,529 111,580,380 112,948,496 116,030,371 113,023,995
Business-type activities:
Sewer Utility 5,818,127 6,052,420 6,052,419 6,197,277 6,253,436 6,202,202 6,758,495 6,827,790 6,843,975 6,603,195
Airport 16,947,056 18,645,140 19,641,953 19,934,243 20,532,553 20,458,552 20,752,350 20,722,960 20,855,066 20,893,894
Park Woods 540,207 678,867 678,867 590,250 529,610 496,478 533,671 473,289 497,833 507,210
Stormwater Utility - - - - - - - - 149,590 241,082
Parking 1,322,138 1,438,125 1,438,125 1,374,909 1,402,922 1,206,989 995,631 972,327 925,595 978,658
Bass Park 1,918,111 1,993,205 1,993,205 1,851,914 1,923,073 2,075,644 1,919,301 3,314,865 6,317,039 7,855,957
Municipal Golf Course 647,499 695,969 695,969 745,339 733,380 664,311 671,113 687,317 643,323 849,164
Economic Development 484,264 695,851 695,851 712,195 634,764 618,980 615,816 586,140 628,252 698,294
Total business-type activities expenses 27,677,402 30,199,577 31,196,389 31,406,127 32,009,738 31,723,156 32,246,377 33,584,688 36,860,673 38,627,454
Total primary government expenses 125,465,497$ 127,374,432$ 136,510,938$ 151,827,654$ 148,926,788$ 143,647,685$ 143,826,757$ 146,533,184$ 152,891,044$ 151,651,449$
* - Amounts previously reported as infrastructure have been reclassified as public services to conform with current year presentation.
(accrual basis of accounting)Last Ten Fiscal Years
Changes in Net Position
CITY OF BANGOR, MAINE
Continued on next page
III - 3
Table 2 (con't)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Program Revenues
Governmental activities:
Charges for services
General government 1,672,854$ 2,334,040$ 2,282,374$ 1,869,711$ 2,386,637$ 2,070,189$ 2,501,326$ 2,214,675$ 2,764,659$ 2,493,428$
Public safety 2,471,220 2,182,680 2,439,831 3,010,167 2,401,930 3,289,153 2,681,152 3,418,686 2,682,248 3,193,528
Health, community services and recreation 756,207 681,583 771,254 768,450 836,689 928,307 1,048,707 1,139,382 1,164,090 1,118,582
Public services 4,076,981 3,871,412 4,127,341 3,807,886 3,954,116 3,922,847 4,002,973 3,520,517 3,758,666 3,904,548
Other agencies - - 22,243 22,068 - 20,248 103,560 - 46,882 -
Education 4,561,352 4,408,431 4,539,787 4,386,457 4,533,041 5,165,261 3,806,614 3,835,409 3,446,006 4,699,101
Unclassified 859,682 61,128 - - - - - - - -
Arena development - 1,630,360 1,689,657 2,205,771 2,380,158 2,331,584 2,434,915 2,079,869 1,960,876 1,952,929
Community development 672,459 658,141 297,394 301,019 332,295 323,494 588,587 474,013 994,546 273,269
Public transportation 536,491 659,960 809,531 944,804 923,433 1,025,080 1,023,717 1,045,793 816,819 857,013
Tax increment financing - - - 1,711 - - - - - -
Operating grants and contributions 29,577,430 30,534,706 41,370,518 34,155,649 35,683,710 35,604,940 33,137,275 31,901,386 34,600,320 33,541,085
Capital grants and contributions 3,788,485 2,604,652 2,119,150 2,068,478 6,578,917 4,935,614 3,725,432 2,345,794 1,720,879 1,540,614
Total governmental activities program revenues 48,973,161 49,627,093 60,469,080 53,542,171 60,010,926 59,616,717 55,054,258 51,975,524 53,955,991 53,574,097
Business-type activities:
Charges for services
Sewer Utility 6,206,605 6,663,408 6,745,112 7,537,879 7,288,499 7,340,935 7,320,469 7,708,101 8,426,054 8,189,623
Airport 12,074,504 13,555,003 14,475,879 13,953,287 13,767,394 13,080,217 12,540,347 12,069,935 12,220,328 12,036,215
Park Woods 287,452 340,494 340,494 369,478 371,832 372,715 397,426 417,407 440,295 459,905
Stormwater Utility - - - - - - - - 359,029 1,088,119
Parking 963,697 1,001,697 1,001,697 997,111 1,050,579 1,057,710 1,012,109 960,947 1,002,164 1,022,305
Bass Park 1,460,931 1,426,599 1,426,599 1,253,236 1,382,947 1,276,869 1,304,384 1,249,595 2,683,094 3,239,457
Municipal Golf Course 604,365 655,834 655,834 608,930 658,053 643,501 628,869 592,825 575,020 611,132
Economic Development 391,658 422,716 422,716 569,549 507,867 585,785 409,486 462,033 515,339 589,383
Operating grants and contributions - - - - - - - - - 193,061
Capital grants and contributions 2,581,874 4,377,242 3,426,732 4,113,557 8,684,860 3,717,755 2,351,779 6,121,523 4,039,968 6,947,799
Total business-type activities program revenues 24,571,086 28,442,993 28,495,063 29,403,027 33,712,031 28,075,487 25,964,869 29,582,366 30,261,291 34,376,999
Total primary government program revenues 73,544,247$ 78,070,086$ 88,964,143$ 82,945,198$ 93,722,957$ 87,692,204$ 81,019,127$ 81,557,890$ 84,217,282$ 87,951,096$
(accrual basis of accounting)Last Ten Fiscal Years
Changes in Net Position
CITY OF BANGOR, MAINE
Continued from previous page
III - 4
Table 2 (con't)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Net (expense)/revenue
Governmental activities (48,814,934)$ (47,547,762)$ (44,845,469)$ (66,879,356)$ (56,906,124)$ (52,307,812)$ (56,526,122)$ (60,972,972)$ (62,074,380)$ (59,449,898)$
Business-type activities (3,106,316) (1,756,584) (2,701,326) (2,003,100) 1,702,293 (3,647,669) (6,281,508) (4,002,322) (6,599,382) (4,250,455)
Total primary government expense (51,921,250) (49,304,346) (47,546,795) (68,882,456) (55,203,831) (55,955,481) (62,807,630) (64,975,294) (68,673,762) (63,700,353)
General revenues and other changes in net position
Governmental activities:
Property taxes 40,666,758 41,702,775 43,775,938 46,977,792 48,182,455 48,027,330 48,520,390 49,930,989 52,243,583 55,303,613
Payment in lieu of taxes 160,457 145,000 122,510 141,595 117,770 161,879 156,629 95,620 161,438 156,417
Excise taxes 4,752,852 4,668,614 4,641,320 4,752,005 4,694,936 4,515,752 4,596,947 4,594,821 5,400,100 5,844,800
Franchise taxes 274,986 296,566 300,768 322,526 348,163 367,672 372,542 362,088 350,014 341,605
Unrestricted grants and contributions 4,773,082 4,968,217 5,520,774 5,260,439 4,999,567 4,859,811 4,963,161 4,857,030 3,787,128 3,794,664
Unrestricted investment earnings 699,417 1,183,796 1,274,939 874,824 673,295 565,326 530,631 57,620 510,429 413,923
Miscellaneous 32,550 260,733 161,439 93,967 135,849 92,379 16,698 112,060 1,863 410,991
Transfers (861,290) (871,864) (539,088) (739,179) 761,103 (637,898) (417,042) (8,772,781) (3,170,717) (2,469,650)
Total governmental activities 50,498,812 52,353,837 55,258,600 57,683,969 59,913,138 57,952,251 58,739,956 51,237,447 59,283,838 63,796,363
Business-type activities:
Property taxes - - - - - - - - 750,000 800,000
Unrestricted investment earnings 635,454 1,346,799 1,326,787 1,025,098 1,035,753 752,891 543,493 345,932 504,584 462,069
Gain/loss on sale of asset - - - - - - - (260,857) - -
Special Item - - - - - - - - - (484,664)
Transfers 861,290 539,088 539,088 739,179 (761,103) 637,898 417,042 8,772,781 3,170,717 2,469,650
Total business-type activities 1,496,744 1,885,887 1,865,875 1,764,277 274,650 1,390,789 960,535 8,857,856 4,425,301 3,247,055
Total primary government 51,995,556 54,239,724 57,124,475 59,448,246 60,187,788 59,343,040 59,700,491 60,095,303 63,709,139 67,043,418
Change in net position
Governmental activities 1,683,878 4,806,075 10,413,131 (9,195,387) 3,007,014 5,644,439 2,213,834 (9,735,525) (2,790,542) 4,346,465
Business-type activities (1,609,572) 129,303 (835,451) (238,823) 1,976,943 (2,256,880) (5,320,973) 4,855,534 (2,174,081) (1,003,400)
Total primary government 74,306$ 4,935,378$ 9,577,680$ (9,434,210)$ 4,983,957$ 3,387,559$ (3,107,139)$ (4,879,991)$ (4,964,623)$ 3,343,065$
Changes in Net Position
CITY OF BANGOR, MAINE
(accrual basis of accounting)
Last Ten Fiscal Years
III - 5
Table 3
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Tax Revenues
Property taxes 40,666,758$ 41,702,775$ 43,775,938$ 46,977,792$ 48,182,455$ 48,027,330$ 48,520,390$ 49,930,989$ 52,243,583$ 55,303,613$
Excise taxes 4,752,852 4,668,614 4,641,320 4,752,005 4,694,936 4,515,752 4,596,947 4,594,821 5,400,100 5,844,800
Franchise taxes 274,986 296,566 300,768 322,526 348,163 367,672 372,542 362,088 350,014 341,605
Total tax revenues 45,694,596$ 46,667,955$ 48,718,026$ 52,052,323$ 53,225,554$ 52,910,754$ 53,489,879$ 54,887,898$ 57,993,697$ 61,490,018$
CITY OF BANGOR, MAINE
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
(accrual basis of accounting)
III - 6
Table 4
Fiscal Year
2011 2012 2013 2014 2015
General Fund:
Nonspendable
Advances to other funds 1,900,500$ 1,900,500$ 1,900,500$ 1,900,500$ 1,900,500$
Inventory and prepaid items 963,770 860,187 873,714 853,265 672,248
Restricted
Education purposes 1,213,508 936,158 186,871 974,012 889,481
Municipal purposes 405,119 349,362 288,519 288,857 19,803
Committed - municipal purposes 19,033 373,753 10,583 2,623 110,933
Assigned
Encumbrances 1,389,501 1,548,268 777,788 31,347 15,987
Municipal purposes 3,115,199 3,240,838 3,415,627 3,386,444 4,626,740
Unassigned 8,017,940 7,563,658 7,727,014 9,598,472 9,995,105
Total general fund 17,024,570$ 16,772,724$ 15,180,616$ 17,035,520$ 18,230,797$
All other governmental funds:
Nonspendable
Permanent Fund Principal 608,710$ 588,515$ 574,492$ 544,200$ 532,758$
Restricted
Community Development Block Grant 346,605 415,956 252,479 - -
Penobscot River 759 759 - - -
Nonmajor Special Revenue Funds 1,637,362 1,862,992 1,730,231 1,971,397 2,060,733
Nonmajor Permanent Funds 410,337 449,974 466,951 483,284 495,623
Committed
Arena Fund 6,690,287 - 2,761,541 1,051,134 871,271
Assigned
Capital Project Fund 826,179 - 4,426,655 4,868,248 4,657,905
Capital Project Fund Encumbrances - 1,853,043 127,712 - -
Unassigned
Community Development Block Grant - - - (3,275) (10,679)
Arena Fund - (4,603,950) - - -
Capital Project Fund (537) - - - -
Nonmajor Special Revenue Funds (12,257) (4,584) (5,736) - -
Total all other governmental funds 10,507,445$ 562,705$ 10,334,325$ 8,914,988$ 8,607,611$
Only five years have been reported because 2011 was the year GASB 54 was implemented.
(modified accrual basis of accounting)
Last Ten Fiscal Years
Fund Balances of Governmental Funds
CITY OF BANGOR, MAINE
III - 7
Table 5
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenues:
Taxes:
Property taxes 41,101,785$ 42,145,912$ 43,767,914$ 47,113,576$ 48,284,733$ 48,371,202$ 48,688,270$ 50,004,619$ 52,748,153$ 55,650,209$
Excise taxes 4,752,852 4,668,614 4,641,320 4,752,005 4,694,936 4,515,752 4,596,947 4,594,821 5,400,100 5,844,800
Total tax revenues 45,854,637 46,814,526 48,409,234 51,865,581 52,979,669 52,886,954 53,285,217 54,599,440 58,148,253 61,495,009
Intergovernmental 37,714,682 37,774,922 41,345,956 41,123,520 46,211,718 45,304,160 40,536,525 39,029,824 40,025,974 38,563,450
Licenses and permits 538,534 982,879 956,965 644,621 633,339 601,202 948,267 576,559 1,389,717 831,968
Charges for services 12,927,989 12,598,776 13,283,275 13,449,587 13,655,764 15,226,575 13,594,482 14,079,514 12,782,036 14,889,219
Program income 663,269 657,987 296,325 288,677 329,800 314,203 575,460 462,380 765,142 247,549
Revenue from use of money and property 2,349,812 3,621,988 3,812,356 3,836,654 3,864,984 3,473,975 4,042,881 3,067,949 3,114,817 2,883,535
Other 526,360 279,261 7,691,463 428,220 1,108,213 279,426 561,118 165,686 156,659 516,714
Total revenues 100,575,283 102,730,339 115,795,574 111,636,860 118,783,487 118,086,495 113,543,950 111,981,352 116,382,598 119,427,444
Expenditures:
General government**4,642,935 4,736,885 5,122,152 5,103,378 5,422,805 4,858,721 5,390,049 5,612,408 5,172,972 5,391,279
Public safety 12,852,119 13,476,656 14,162,638 14,400,420 15,287,575 15,800,938 16,028,180 16,209,402 16,409,651 16,994,567
Health, community services and recreation 4,084,948 4,086,513 4,305,709 4,414,673 4,720,477 5,584,184 5,383,295 4,945,994 4,826,149 5,041,486
Public services 8,991,673 9,363,365 9,906,759 10,048,539 10,055,161 10,196,576 9,842,829 9,835,549 10,052,683 10,704,017
Other agencies 3,610,935 3,783,720 4,227,552 4,294,283 4,291,329 4,747,617 4,409,545 4,382,776 4,566,380 4,684,697
Education 44,817,879 45,224,974 48,293,846 50,380,309 51,590,324 51,391,657 50,159,407 49,880,770 50,771,925 53,037,177
Tax increment financing - - - 215,483 432,033 165,133 524,013 550,308 632,364 724,347
Unclassified 263,702 597,262 166,994 63,115 54,451 118,216 260,685 2,323,972 590,627 74,128
Restricted grants 8,248,872 7,787,297 9,098,706 8,360,660 8,479,740 8,232,148 7,414,001 9,202,815 10,729,492 9,691,489
Capital outlay*11,762,832 9,100,357 8,038,242 16,118,777 20,818,168 12,799,978 45,478,235 10,213,552 12,534,783 8,158,063
Debt service
Principal 2,748,866 4,237,096 2,044,428 2,136,415 12,423,331 3,862,188 6,996,892 22,907,595 3,222,253 3,685,728
Interest 3,098,248 3,095,434 2,436,120 2,373,922 2,472,643 2,375,397 2,180,013 2,923,060 1,957,347 2,050,633
Other charges 5,070 4,850 299 6,000 61,952 45,988 - - -
Total expenditures 105,128,079 105,494,409 107,803,445 117,915,974 136,109,989 120,178,741 154,067,144 138,988,201 121,466,626 120,237,611
Excess (deficiency) of revenues over (under) expenditures (4,552,796) (2,764,070) 7,992,129 (6,279,114) (17,326,502) (2,092,246) (40,523,194) (27,006,849) (5,084,028) (810,167)
Other financing sources/(uses)
Issuance of debt 4,333,000 3,555,000 - 3,100,000 3,100,000 2,086,100 30,659,143 10,378,985 8,369,000 3,602,000
Capital leases - - - - - - - 456,581 - -
Payment to escrow agent - - - - - - - (4,233,486) - -
Premium on debt issuance - - - - - - - 748,121 133,552 -
Financing proceeds - - - 7,091,928 9,596,640 - - - - -
Sale of assets 120,479 320,034 161,439 104,620 135,849 117,558 84,507 186,709 187,760 565,717
Transfers to other funds (3,099,137) (3,300,247) (2,690,305) (2,865,418) (1,789,024) (2,015,003) (1,861,301) (9,783,007) (4,406,771) (3,698,558)
Transfers from other funds 2,237,847 2,428,383 2,151,217 2,126,239 2,550,127 1,377,105 1,444,259 1,010,226 1,236,054 1,228,908
Total other financing sources 3,592,189 3,003,170 (377,649) 9,557,369 13,593,592 1,565,760 30,326,608 (1,235,871) 5,519,595 1,698,067
Net change in fund balances (960,607)$ 239,100$ 7,614,480$ 3,278,255$ (3,732,910)$ (526,486)$ (10,196,586)$ (28,242,720)$ 435,567$ 887,900$
Debt service as a percentage of noncapital expenditures 6.08%7.74%4.26%4.00%11.14%5.52%7.97%19.35%4.46%4.95%
* - Capital outlays under the modified accrual basis differ from Capital outlays on the statement of activities due to capitalization thresholds and
budgetary requirements.
** - Beginning with 2014, certain departmental costs are reflected in General government expenditures instead of other functional areas.
CITY OF BANGOR, MAINE
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
III - 8
Table 6
CITY OF BANGOR, MAINE
Assessed Value and Estimated Actual Value of Taxable Property*
Last Ten Fiscal Years
Total Taxable Total
Fiscal Estimated Estimated Personal Assessed Direct
Year Residential Commercial Property¹Value Tax Rate
2006 1,091,628,800 713,822,300 254,225,800 2,059,676,900 19.31
2007 1,178,745,758 785,599,342 259,703,500 2,224,048,600 18.33
2008 1,275,227,064 875,870,136 254,991,600 2,406,088,800 17.74
2009 1,219,093,120 1,081,082,580 244,740,100 2,544,915,800 17.99
2010 1,255,964,001 1,113,779,399 257,018,100 2,626,761,500 17.98
2011 1,227,148,219 1,088,225,781 256,321,000 2,571,695,000 18.09
2012 1,234,270,253 1,094,541,547 248,183,200 2,576,995,000 18.00
2013 1,238,325,124 1,098,137,376 245,768,300 2,582,230,800 18.47
2014 1,250,419,936 1,108,862,964 244,302,800 2,603,585,700 19.56
2015 1,258,223,338 1,115,782,962 239,021,300 2,613,027,600 20.54
*It is City policy to assess at 100% of estimated actual value.
¹Personal Property consists of machinery and equipment.
Real Property
III - 9
Table 7
CITY OF BANGOR, MAINE
Property Tax Rate - Direct and Overlapping GovernmentsLast Ten Fiscal Years
General General Total
Fiscal City Fund Debt Direct Penobscot Total Tax/
Year Government Service Education Tax Rate County (Mill) Rate
2006 7.97 1.14 10.20 19.31 1.09 20.40
2007 7.79 1.18 9.36 18.33 1.07 19.40
2008 7.69 1.18 8.87 17.74 1.06 18.80
2009 8.12 1.16 8.71 17.99 1.06 19.05
2010 8.01 1.27 8.70 17.98 1.07 19.05
2011 7.94 1.40 8.75 18.09 1.11 19.20
2012 7.75 1.42 8.83 18.00 1.20 19.20
2013 8.08 1.41 8.98 18.47 1.18 19.65
2014 8.67 1.48 9.41 19.56 1.24 20.80
2015 8.89 1.65 10.00 20.54 1.26 21.80
III - 10
Table 8
CITY OF BANGOR, MAINE
Principal Property Taxpayers *Current Year and Nine Years Ago
2015 2006
Assessed % of Total Assessed % of Total
Taxpayer Business Value Rank Tax Base Value Rank Tax Base
GLP Capital L.P.Gaming 92,061,400$ 1 3.52%- -
Bangor Mall LLC Shopping mall 61,727,400 2 2.36%- -
General Electric Manufacturer 59,633,100 3 2.28%90,470,700$ 1 4.39%
Emera Maine Utility 41,820,000 4 1.60%- -
Walmart Stores Retailer 21,828,300 5 0.84%- -
HC Bangor LLC Gaming 20,439,300 6 0.78%- -
Bangor Gas Company LLC Utility 20,338,400 7 0.78%- -
GM Realty of Bangor LLC Real estate interests 17,017,900 8 0.65%- -
QV Realty Trust Real estate interests 16,569,400 9 0.63%13,286,100 5 0.65%
Winterfell Sunbury Retirement Living 15,326,100 10 0.59%- -
BANMAK Associates Shopping mall - - 52,486,200 2 2.55%
Bangor Hydro Electric Utility - - 28,818,600 3 1.40%
Bangor Savings Bank Commercial bank - - 17,119,800 4 0.83%
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 - - 11,634,800 8 0.56%
Airport Mall Associates Shopping mall - - 10,987,200 9 0.53%
Bangor Retirement Retirement Living - - 9,650,300 10 0.47%
Totals 366,761,300$ 14.03%258,808,400$ 12.56%
*Source - City of Bangor Tax Commitment.
III - 11
Table 9
% of
Subsequent Total Total Tax
Fiscal Gross Tax Abate-Net Tax % of Year Tax Collection
Year Levy ments Levy Amount Net Levy Collections Collections to Net Levy
2006 41,099,990 632,397 40,467,593 39,716,755 98.14%691,472 40,408,227 99.85%
2007 41,990,985 269,636 41,721,349 40,819,923 97.84%848,932 41,668,855 99.87%
2008 44,082,476 341,521 43,740,955 42,847,656 97.96%828,512 43,676,168 99.85%
2009 47,235,370 275,489 46,959,881 45,688,356 97.29%1,176,204 46,864,560 99.80%
2010 48,719,847 588,817 48,131,030 46,205,428 96.00%1,760,906 47,966,334 99.66%
2011 48,362,646 168,932 48,193,714 46,857,606 97.23%1,165,612 48,023,218 99.65%
2012 48,529,834 175,844 48,353,990 47,025,587 97.25%1,142,854 48,168,441 99.62%
2013 49,713,855 134,598 49,579,257 48,276,445 97.37%1,097,675 49,374,120 99.59%
2014 53,077,993 43,339 53,034,654 51,692,178 97.47%767,996 52,460,174 98.92%
2015 55,903,061 282,782 55,620,279 53,708,753 96.56%- 53,708,753 96.56%
Collected within the
Fiscal Year of the Levy
CITY OF BANGOR, MAINE
Property Tax Levies and CollectionsLast Ten Fiscal Years
III - 12
Table 10
CITY OF BANGOR, MAINE
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-type Activities
General General Total
Fiscal Obligation Capital Obligation Capital Primary Per Assessed Per Personal
Year Bonds/Notes Leases Bonds Leases Government Capita*Value Income*
2006 $61,003,363 - 45,781,229 - 106,784,592 3,438.67 5.18%11.56%
2007 $60,321,264 - 43,809,953 - 104,131,217 3,279.83 4.68%11.03%
2008 $56,998,022 - 41,722,545 - 98,720,567 3,157.85 4.10%10.62%
2009 $56,687,684 7,091,928 37,623,522 - 101,403,134 3,236.72 3.98%10.88%
2010 $61,689,447 - 34,956,548 - 96,645,995 3,073.00 3.68%10.33%
2011 $58,455,666 - 31,985,337 - 90,441,003 2,737.40 3.52%7.06%
2012 $80,674,158 - 28,707,990 - 109,382,148 3,314.61 4.24%9.47%
2013 $62,727,567 361,009 82,492,223 - 145,580,799 4,416.49 5.64%11.71%
2014 $67,154,638 277,728 82,983,011 41,699 150,457,076 4,604.94 5.78%13.12%
2015 $65,147,398 549,636 83,619,820 33,082 149,349,936 4,585.79 5.72%12.64%
*Source: U.S. Census Bureau.
Governmental Activities
Ratio of Net Bonded Debt
III - 13
Table 11
CITY OF BANGOR, MAINE
Ratio of Net General Obligation Debt to Assessed Value and
Net General Obligation Debt Per Capita
Last Ten Fiscal Years
Fiscal Assessed Net Bonded Assessed Per
Year Population*Value GO Debt Value Capita
2006 31,054 2,059,676,900 106,784,592 5.18%3,438.67
2007 31,749 2,224,048,600 104,131,217 4.68%3,279.83
2008 31,262 2,406,088,800 98,720,567 4.10%3,157.85
2009 31,329 2,544,915,800 94,311,206 3.71%3,010.35
2010 31,450 2,626,761,500 96,645,995 3.68%3,073.00
2011 33,039 2,571,695,000 90,441,003 3.52%2,737.40
2012 33,000 2,576,995,000 109,382,148 4.24%3,314.61
2013 32,963 2,582,230,800 145,219,790 5.62%4,405.54
2014 32,673 2,603,585,700 150,137,649 5.77%4,595.16
2015 32,568 2,613,027,600 148,767,218 5.69%4,567.90
*Source: U.S. Census Bureau.
Ratio of Net Bonded Debt
III - 14
Table 12
CITY OF BANGOR, MAINE
Computation of Direct and Overlapping Debt
June 30, 2015
Percentage Amount
Total Debt Applicable Applicable
Outstanding to Bangor to Bangor
Direct Debt
City of Bangor
General Obligation Bonds 148,767,218$ 100.00%148,767,218$
Capital Leases 582,718 100.00%582,718
Overlapping Debt
Penobscot County*-$ -$
Total Debt 149,349,936$ 149,349,936$
* The percentage of overlapping Penobscot County debt is calculated based on the overall
percent of Bangor valuation of total county valuation.
III - 15
Table 13
Total Net Debt Legal Percentage of
Fiscal Debt Applicable to Debt Net Debt to
Year Limit Limit Margin Debt Limit
2006 $309,495,000 106,784,592 202,710,408 34.50%
2007 $332,092,500 104,131,217 227,961,283 31.36%
2008 $353,737,500 98,720,567 255,016,933 27.91%
2009 $356,670,000 94,311,206 262,358,794 26.44%
2010 $365,400,000 96,645,995 268,754,005 26.45%
2011 $369,997,500 90,441,003 279,556,497 24.44%
2012 $368,467,500 109,382,148 259,085,352 29.69%
2013 $369,300,000 145,219,790 224,080,210 39.32%
2014 $369,637,500 146,954,498 222,683,002 39.76%
2015 $381,555,000 145,681,059 235,873,941 38.18%
Total State Valuation 2,543,700,000$
Debt Limitation: 15 % of State Valuation 381,555,000
Debt Applicable to Debt Limitation:
General Obligation Bonds:
Municipal 115,470,772
School 16,861,827
Sewer 13,348,460
Total debt applicable to limit 145,681,059
Legal Debt margin 235,873,941$
CITY OF BANGOR, MAINE
Legal Debt Margin InformationLast Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2015
III - 16
Table 14
CITY OF BANGOR, MAINE
Demographic and Economic Statistics
Last Ten Fiscal Years
Median Per Public Unemploy-
Fiscal Household Capita Median School ment
Year Population *Income*Income*Age*Enrollment**Rate ***
2006 31,054 29,740 19,295 36.1 3,962 4.40%
2007 31,749 29,740 19,295 36.1 3,913 4.40%
2008 31,262 29,740 19,295 36.1 3,886 5.10%
2009 31,329 29,740 19,295 36.1 3,878 7.80%
2010 31,450 29,740 19,295 36.1 3,821 8.10%
2011 33,039 38,775 25,344 36.7 3,830 7.50%
2012 33,000 34,993 25,344 37.5 3,819 7.10%
2013 32,963 37,707 24,945 36.8 3,875 6.70%
2014 32,673 35,107 23,791 36.5 3,810 5.40%
2015 32,568 36,272 23,977 35.9 3,765 4.60%
*Source: U.S. Census.
**Source: Bangor School Department.
***Source: Maine Bureau of Labor Statistics.
III - 17
Table 15
CITY OF BANGOR, MAINE
Principal Employers *
Calendar Year and Nine Years Ago
Employees Employer Location Employees 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 City of Bangor Bangor
Hannaford Supermarkets Throughout Shop & Save Supermarkets Throughout
Cianbro Corporation Throughout
WalMart Throughout
500-999 Bangor Savings Bank Bangor 500-999 Bangor Savings Bank Bangor
LL Bean Bangor General Electric Corp Bangor
Microdyne Orono Microdyne Orono
Acadia Hospital Bangor Acadia Hospital Bangor
Verso Corp Paper Mill Bucksport St. Joseph Hospital Bangor
St. Joseph Hospital Bangor
Community Health & Counseling Bangor
* Source - Bangor, Maine Community & Economic Profile Report - 2012 represents the latest data available.
Published by City of Bangor Community and Economic Development Department.
2012 2006
III - 18
Table 16
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Function
General government 100 100 100 100 100 100 99 97 92 103
Public safety
Police 93 93 93 93 97 97 96 96 96 93
Fire 91 91 91 91 95 95 95 95 91 87
Health, community services and recreation 49 49 49 49 49 47 49 48 46 41
Public building and services 83 81 81 82 82 81 78 78 76 63
Education 573 562 618 618 621 610 580 580 568 578
Sewer Utility 21 21 21 21 21 21 24 24 24 24
Airport 78 83 89 90 86 87 88 93 77 85
Park Woods 2 2 2 2 2 2 2 2 1 -
Parking 3 3 3 3 3 3 3 3 3 3
Bass Park 9 9 7 8 8 7 6 5 - -
Municipal Golf Course 3 3 9 3 3 3 3 3 3 3
Totals 1,105 1,097 1,163 1,160 1,167 1,153 1,123 1,124 1,077 1,080
* Source - City of Bangor Human Resource Department, excludes temporary, seasonal and on-call employees.
CITY OF BANGOR, MAINE
Full-time Equivalent City Government Employees by Function*
Last Ten Fiscal Years
III - 19
Table 17
CITY OF BANGOR, MAINE
Operating Indicators by Function*
Last Ten Calendar Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function
Code enforcement
Building permits 537 550 485 501 427 518 405 453 433 454
Certificates of occupancy 432 446 430 440 341 448 350 361 395 452
Sign permits 115 116 118 103 90 96 70 69 82 83
Police
Calls for service 27,052 28,157 32,392 34,329 32,351 30,167 31,640 33,740 36,153 36,967
Fire
Calls for service 7,492 7,992 7,477 7,990 7,357 8,000 9,020 9,044 9,031 9,292
Sewer
Treated flow (billions of gallons)4.23 3.62 3.21 3.89 3.55 2.81 3.10 2.68 2.69 3.20
Biosolids (cubic yards)9,348 9,775 10,043 10,561 10,509 9,046 9,422 8,095 8,757 8,079
* Source - City of Bangor Departmental records.
III - 20
Table 18
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Function
Public safety
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Vehicles 51 52 47 50 54 54 50 48 43 61
Fire:
Stations 3 3 3 3 3 3 3 3 3 3
Vehicles 24 27 28 27 25 25 26 26 26 26
Public works
Streets (miles)422 422 427 429 429 429 431 431 431 431
Sidewalks (miles)99.6 99.6 99.6 99.6 99.6 101.4 101.7 101.7 101.7 101.7
Parks and recreation
Parks 29 29 29 29 29 29 29 29 29 29
Parks acreage 950 950 950 950 950 950 950 950 950 950
Public swimming pools 2 2 2 2 2 2 2 2 2 2
Public golf courses 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
Indoor ice arena 1 1 1 1 1 1 1 1 1 1
Semi-pro baseball stadium 1 1 1 1 1 1 1 1 1 1
Sewer
Treatment plants 1 1 1 1 1 1 1 1 1 1
Pump stations 5 5 5 5 5 5 5 5 5 5
Miles of sanitary sewers 103 103 103 103 103 103 103 103 103 103
Miles of combined sewers 44 44 44 44 44 44 44 47 49 49
* Source - City of Bangor Departmental records.
CITY OF BANGOR, MAINE
Capital Asset Statistics by Function*
Last Ten Fiscal Years
Fiscal Year