2014For the Fiscal Year Ended June 30, 2014
CITY OF BANGOR, MAINE
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2014
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, 2014
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 Supplemental Information II - 57
CITY OF BANGOR, MAINE Table of Contents, Continued
Schedule Page
Combining and Individual Fund Statements and Schedules:
Balance Sheet – General Fund A – 1 II - 58
Schedule of Revenues, Expenditures and Changes in Unassigned Fund Balance – Budget and Actual – Budgetary
Basis – General Fund A – 2 II - 59
Combining Balance Sheet – Nonmajor Governmental Funds B – 1 II - 63
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds B – 2 II - 64
Combining Balance Sheet – Nonmajor Special Revenue Funds B – 3 II - 65
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Special Revenue Funds B – 4 II - 66
Combining Balance Sheet – Nonmajor Permanent Funds B – 5 II - 67
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Permanent Funds B – 6 II - 68
Combining Statement of Net Position – Nonmajor Proprietary Funds C – 1 II - 69
Combining Statement of Revenues, Expenses and
Changes in Net Position – Nonmajor Proprietary Funds C – 2 II - 71
Combining Statement of Cash Flows - Nonmajor Proprietary Funds C – 3 II – 72
Schedules of Revenues, Expenditures and Encumbrances – Budget
and Actual Budgetary Basis:
Sewer Utility Enterprise Fund C – 4 II - 74
Airport Enterprise Fund C – 5 II - 75
Park Woods Enterprise Fund C – 6 II - 76
Parking Enterprise Fund C – 7 II - 77
Bass Park Enterprise Fund C – 8 II - 78
Municipal Golf Course Enterprise Fund C – 9 II - 79
Economic Development Enterprise Fund C – 10 II - 80
Stormwater Utility Enterprise Fund C – 11 II - 81
Fiduciary Funds:
Statement of Change in Assets and Liabilities – Agency Fund D – 1 II - 82
Capital Assets Used in the Operation of Governmental Funds:
Schedule of Changes by Function and Activity E – 1 II - 83
Other Information:
Assessed Valuation, Commitment and Collections F – 1 II - 84
Unassigned Fund Balance Sufficiency Calculation F – 2 II - 85
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
January 26, 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, 2014 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.
The City’s financial statements have been audited by Runyon Kersteen Ouellette.
The goal of the independent audit is to provide reasonable assurance that the
financial statements are free of material misstatement. The independent audit
involved examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor’s unmodified opinion is presented
as the first component of the financial section of this report.
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The City is required to undergo an annual single audit in conformity with the
provisions of the Single Audit Act of 1984 and the U.S. Office of Management and
Budget’s Circular A-133, Audits of States, Local Government and Non-Profit
Organizations. Information related to this single audit, including a schedule of
expenditures of federal awards, findings, questioned costs, recommendations, and
the independent auditor’s reports on the internal control structure and compliance
with applicable laws and regulations, 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 is situated in eastern Maine, is the Penobscot County seat, and is
the third most populous city in Maine. The City occupies approximately 35 square
miles on the western shore of the Penobscot River. Bangor was first settled in 1656,
incorporated as a town on February 25, 1791 and as a city on February 12, 1834.
Bangor is the major trade, distribution, service, and commercial center for the
central, eastern, and northern portions of the State.
The City operates under a Charter adopted in 1931 that provides for a Council-
Manager form of government. The City Council is composed of nine members who
are elected at large for three-year staggered terms. The Charter grants to the
Council all powers to enact, amend, or repeal rules, ordinances, and resolutions
relating to the City’s 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
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
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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. 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 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 is a service center community, as such it is a major
center for the communications, banking, commercial, industrial, healthcare, and
governmental sectors of the State, serving the economic, educational, recreational,
distribution, and health care needs of central, eastern, and northern Maine regions.
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 2014 unemployment rate of 5.4% continues to be
on par with or below both country and state rates of 6.1% and 5.5%, respectively.
Bangor is the largest retail market 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
2014, Bangor’s retail taxable sales were $1.63 billion, the highest within the State,
and represent 8.82% of total State retail taxable sales.
Further evidence of continuing sustained growth is the change in 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. While assessed value
has remained relatively flat since the economic downturn realized in FY 2011, the
City has seen modest to average increases in assessed value of 4.19% over the last
ten years. A stable tax base and the City’s focus on controlling budgetary growth
has resulted in a 5.67% reduction in its tax rate from 2005 to 2014, in spite of
significant state funding reductions and costs shifts.
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:
Ø Construction of the Cross Insurance Center, a 5,800 seat state of the art
arena and adjoining conference center;
Ø Redevelopment of nearly a mile of prime Penobscot River frontage extending
from the City’s downtown area to the Bass Park Complex, which provides a
significant regional entertainment and recreational area;
Ø Relocation of C&L Aerospace, which provides worldwide operators with
aircraft parts, service, maintenance, sales and leasing services;
Ø Revitalization of the City’s core downtown to encourage mixed use
development, including residential, commercial and cultural opportunities;
Ø 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.
Beginning in FY 2013, the City began to proactively address quality of life issues and
housing opportunities. Key initiatives to date include:
Ø Implementation of the west side neighborhood revitalization plan;
Ø Enactment of disruptive property ordinance and foreclosed property
registration program;
Ø Community engagement with residents through enhanced technology,
including a new website, mobile app and social media as well as
departmental outreach to address public safety concerns;
Ø Provided assistance to homeowners through CDBG funding including
expansion of two programs;
Ø Sustained commitment to academic excellence for all;
Ø Continued support of arts and culture.
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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, 2014 was 10.88% 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, 2013 for the eighteenth consecutive year. 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, 2014
City Council
Benjamin Sprague, Chair
Joseph Baldacci Patricia Blanchette
Pauline Civiello Nelson Durgin
James Gallant Gibran Graham
David Nealley Joshua Plourde
City Staff
Catherine M. Conlow, City Manager
Benjamin F. Birch, City Assessor
Lisa Goodwin, City Clerk
Norman Heitmann, City Solicitor
School Committee
Warren Caruso, Chair
Marc Eastman Phyllis Guerette
Susan Hawes Sarah Smiley
Christine Szal Jay Ye, Vice Chair
School Staff
Betsy Webb, Superintendent of Schools
FINANCIAL SECTION
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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, 2014,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.
II-2
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, 2014, 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 and the Schedules of Funding Progress, 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 combining and individual fund financial statements, 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.
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City Council
City of Bangor, Maine
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 January 26,
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.
January 26, 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, 2014. 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 of the City of Bangor exceeded its liabilities and deferred inflows at the close of
the most recent fiscal year by $199.7 million (net position).
At the close of fiscal year 2014, the City of Bangor’s governmental funds reported combined
ending fund balances of $26.0 million, which was in essence unchanged in total over the
prior year balance of $25.5 million. However, there were significant changes within
individual government funds. The reduction in the Arena Fund was expected as the final
construction costs for the Cross Insurance Center were incurred. The Capital Projects Fund
balance can vary significantly from year to year depending upon specific near term projects.
These decreases were offset by a $1.9 million increase in the General Fund ending fund
balance resulting from significant one time revenues related to permits and excise tax.
Approximately 73% of the total amount, or $19.0 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 $9.6 million, or 10.88% 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 funds were
relatively unchanged at $14.5 million or an increase of $200 thousand. Enterprise fund
liabilities decreased by $4.4 million (4.5%), primarily due to the repayment of interfund
loans and general obligation debt payables. Accounts payable balances can vary drastically
from year to year depending upon the timing of invoices received and/or the projects being
undertaken.
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
II - 5
private-sector companies. These statements present governmental activities and business-type
activities separately.
The statement of net position includes all of the City’s assets, liabilities and deferred inflows,
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
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2014 2013 2014 2013 2014 2013
Current & other assets 40,224,214 39,522,674 25,355,267 26,067,159 65,579,481 65,589,833
Capital assets, net of
accumulated depreciation 77,801,071 76,641,969 233,583,931 236,621,877 311,385,002 313,263,846
Total assets 118,025,285 116,164,643 258,939,198 262,689,036 376,964,483 378,853,679
Long-term debt outstanding 74,428,709 70,199,367 85,221,365 87,282,407 159,650,074 157,481,774
Other liabilities 6,941,010 6,637,178 5,463,473 4,978,188 12,404,483 11,615,366
Total liabilities 81,369,719 76,836,545 90,684,838 92,260,595 172,054,557 169,097,140
Deferred inflows of resources 5,200,850 5,082,840 - - 5,200,850 5,082,840
Total deferred inflows 5,200,850 5,082,840 - - 5,200,850 5,082,840
Net position:
Net investment in capital assets 49,674,874 54,540,288 159,871,743 165,548,784 209,546,617 220,089,072
Restricted 1,027,484 1,041,443 - - 1,027,484 1,041,443
Unrestricted (19,247,642) (21,336,473) 8,382,617 4,879,657 (10,865,025) (16,456,816)
Total net position 31,454,716 34,245,258 168,254,360 170,428,441 199,709,076 204,673,699
Governmental
Activities
Business-type
Activities Total
governmental funds is provided in the form of combining statements (Schedule B)
elsewhere in this report.
The City of Bangor adopts an annual budget for its General Fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with this
budget (Schedule A-2).
Proprietary funds are used to account for essentially the same functions reported as
business-type activities in the government-wide financial statements. Enterprise funds are
the only type of proprietary funds maintained by the City. The proprietary fund statements
provide the same type of information as the government-wide statements, only in more
detail.
The City maintains 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-56 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 $10.9 million, the governmental activities deficit of $19.3 million is
partially offset by the business type activities balance of $8.4 million. The governmental
activities deficit is primarily due to $23.1 million in outstanding pension obligation bonds.
Governmental activities net position decreased $2.8 million. The major component associated
with the decrease in governmental activities net position is the reduction in the Arena fund
associated with the construction costs of the Cross Insurance Center, net of the receipt of $2.0
million of revenues that result from the casino operation.
Business-type net position decreased $2.2 million. The decrease in net position is largely due to
the fact that user fees cannot absorb annual depreciation expense, due to the significant cost of
infrastructure, specifically within the Airport Fund. This was dampened by the fact that due to
the newly implemented stormwater utility fee and increased sewer user fees generated
approximately $1.1 million in additional revenues.
II - 8
2014*2013 2014 2013 2014 2013
Revenues
Program Revenues
Charges for services 17,634,792 17,728,344 26,221,323 23,460,843 43,856,115 41,189,187
Operating grants & contributions 34,600,320 31,901,386 - - 34,600,320 31,901,386
Capital grants & contributions 1,720,879 2,345,794 4,039,968 6,121,523 5,760,847 8,467,317
General Revenues
Property and other taxes 58,155,135 54,983,518 750,000 - 58,905,135 54,983,518
Grants and contributions not
restricted to specific programs 3,787,128 4,857,030 - - 3,787,128 4,857,030
Other 512,292 169,680 504,584 85,075 1,016,876 254,755
Total Revenues 116,410,546 111,985,752 31,515,875 29,667,441 147,926,421 141,653,193
Expenses
General government 7,110,075 4,733,021 - - 7,110,075 4,733,021
Public safety 18,050,107 17,864,294 - - 18,050,107 17,864,294
Health, community and recreation 9,586,571 9,298,196 - - 9,586,571 9,298,196
Public services 14,249,015 14,408,500 - - 14,249,015 14,408,500
Other agencies 6,799,934 4,630,915 - - 6,799,934 4,630,915
Education 50,594,050 50,145,937 - - 50,594,050 50,145,937
Arena development 500,566 2,201,200 - - 500,566 2,201,200
Community development 2,178,972 1,356,184 - - 2,178,972 1,356,184
Waterfront 272,857 381,437 - - 272,857 381,437
Public transportation 2,782,968 3,250,752 - - 2,782,968 3,250,752
Interest on debt 2,464,804 3,343,590 - - 2,464,804 3,343,590
Economic development (tif)1,440,452 1,334,470 - - 1,440,452 1,334,470
Sewer Utility - - 6,843,975 6,827,790 6,843,975 6,827,790
Airport - - 20,855,066 20,722,960 20,855,066 20,722,960
Park Woods - - 497,833 473,289 497,833 473,289
Stormwater Utility - - 149,590 - 149,590 -
Parking - - 925,595 972,327 925,595 972,327
Bass Park - - 6,317,039 3,314,865 6,317,039 3,314,865
Municipal Golf Course - - 643,323 687,317 643,323 687,317
Economic Development - - 628,252 586,140 628,252 586,140
Total Expenses 116,030,371 112,948,496 36,860,673 33,584,688 152,891,044 146,533,184
Excess (deficiency) before transfers 380,175 (962,744) (5,344,798) (3,917,247) (4,964,623) (4,879,991)
Transfers (3,170,717) (8,772,781) 3,170,717 8,772,781 - -
Change in net position (2,790,542) (9,735,525) (2,174,081) 4,855,534 (4,964,623) (4,879,991)
* - Beginning with 2014 certain departmental costs are reflected in General government expenses instead of other functional areas.
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 $116.0 million. As shown on the Statement of
Activities, the total amount financed by the property tax was $52.2 million, or 45% of expenses.
Those who directly benefit from an activity provided $17.6 million in payments. Other
governments and organizations subsidized certain activities with operating grants and
contributions in the amount of $34.6 million. Capital grants and contributions accounted for
$1.7 million. The City also received $10.2 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 increased $3.1 million over the prior year. Over the last
two fiscal years, the Community Development Block Grant program had realized significant
amounts of program income ($1 million), which were fully expended during FY 2014, thereby
increasing governmental activities expenses. In addition, the City received and expended
approximately $500 thousand of additional health and community services grant funding mainly
surrounding public health issues. As these grant funds are made available on a competitive
basis through the State of Maine, their continued existence is not guaranteed. As part of the FY
2014 budget, City employees did receive a cost of living adjustment of 1.5% and realized health
insurance increases of 10.62% which resulted in increased expenses of approximately $800
thousand.
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 $4.4 million, or 4.0%. The largest single
source of revenue continues to be the property tax, which increased $2.3 million. In addition,
the City realized one time increases in excise taxes and building permit fees of $800 thousand
and $690 thousand, respectively. Capital grants and contributions decreased $600 thousand
due to fewer Bangor Area Comprehensive Transportation System (BACTS) funding. BACTS is
the organization designated by federal and Maine state government to carry out transportation
planning in the Greater Bangor urbanized area. Operating grants and contributions increased
$2.7 million due to an increase of $1.1 million in State and Federal funding of education in FY
2014, increased draw on federal Community Development Block Grant funds in the amount of
$1.5 million, and increased health and community services public health grant funding of $900
thousand. In total, charges for services remained relatively flat with a decrease of $94
thousand.
Business-type Activities
Total business-type activities expenses increased $3.3 million compared to prior year levels. For
FY 2014, the City employees working in business-type activities did receive a 1.5% cost of living
adjustment and realized health insurance increases of 10.62%. Lastly, the most significant
increase in business-type activities expenses of $3 million is related to the operation of the
City’s new arena and conferences center, the Cross Insurance Center, which opened in
September 2013 and is reported within the Bass Park Fund.
Revenues by Source - Governmental Activities
30%1%
46%
5%3%0%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 $1.8 million or 6.1%, the decrease of $2.1
million in capital grants and contribution was related to the Airport capital grants which vary
year to year due to the biennial funding cycle. This decrease was more than offset by
increased revenues from the operations of the Cross Insurance Center of $2.2 million, gains on
the sale of two properties resulting in increased revenues of $800 thousand and $1.1 million of
increased sewer user fees and the implementation of a stormwater utility fee.
Revenues by Source - Business-type Activities
Transfers
9%
TIF
2%
Capital Grants and
Contributions
10%Unrestricted - Other
3%
Charges for Services
76%
Charges for Services
Capital Grants and
Contributions
TIF
Unrestricted - Other
Transfers
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 $26.0 million, an increase of $500 thousand over the prior year balance. While
overall ending fund balances remained stable, there were significant changes within individual
government funds. The reduction in the Arena Fund fund balance is related to the Cross
Insurance Center construction costs incurred in FY 2014. Annual changes in the Capital
Projects Fund fund balance are not unexpected as its balances are dependent upon the funding
and timing of specific near term projects. Decreases in other governmental fund fund balances
were offset by a $1.8 million increase in the General Fund ending fund balance owing to
significant one time revenues related to permits and excise tax. Of the ending balance of $26.0
million, approximately 73% of this total ($19.0 million) is either committed, assigned or
unassigned and is available for spending by formal action of the City Council and $3.7 million,
or 14.2%, 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 $17.0 million, a $1.8 million increase from the prior year’s balance of
$15.2 million. Generally, the overall increase in fund balance is related to one time permit fees
and automobile excise tax receipts, which in turn increased the municipal unassigned fund
balance by $1.9 million.
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 2014 were significantly higher compared to the prior year, which was as expected as 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 funded during the year. While the FY 2014 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 an
additional $3.2 million towards the construction costs and annual debt service costs of the Cross
Insurance Center.
II - 13
The Capital Projects Fund varies significantly from year to year depending upon City Council
priorities and available funding opportunities. Total expenditures increased $3.3 million over
the prior year. Significant project costs incurred in FY 2014 include $2.5 to replace the Bangor
Public Library dome and $1.1 million to renovate Cameron Stadium, a multi-sport school based
facility.
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 decreased $2.1 million to a total of $168.3 million. With the exceptions of
decreased capital grants received by the Airport Fund and increased revenues resulted from the
newly opened Cross Insurance Center, increased sewer user fees and the implementation of a
stormwater utility fee, all other operating revenues and expenses remained relatively flat. The
overall decrease in net position is driven by the fact that depreciation expense within the Airport
and Sewer Funds significantly exceeds capital acquisitions.
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
$3.1 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 1.68%, or $1.6 million, municipal expenditures were under budget by
4.94%, or $4.9 million. Education expenditures were under budget by $4 million or 7.7% and
by statute, education balances must be segregated from municipal balances.
Capital Asset and Debt Administration
Capital assets. As of June 30, 2014, the City of Bangor’s investment in capital assets for its
governmental and business-type activities amounted to $311.4 million (net of accumulated
depreciation), a decrease of $1.9 million over the prior year. This investment includes land,
buildings, machinery and equipment, roads, runways, and sewer lines. Depreciation expense of
$16.0 million exceeded the City’s investment in capital assets for the current fiscal year of $14.7
million. Governmental activities invested $5.4 million, and business-type activities invested $9.3
million and depreciation expense was $4 million and $12 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 to
capitalize $1.2 million in rehabilitating and upgrading the City’s various school facilities.
These bonds were issued at a taxable rate with a federal interest rate subsidy under the
provisions of the American Recovery and Reinvestment Act.
The school department invested $1.1 million to replace aging electrical infrastructure and
bleachers at Cameron stadium, a multi-sport facility.
Construction of the Cross Insurance Center was completed in September 2013. During the
year, the City invested $2.6 million towards the total project cost of approximately $68.7
million.
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 $800 thousand and spent $1.8 million to
replace vehicles.
II - 14
The Airport Fund invested $5.3 million in operational assets at Bangor International Airport
including rental building improvements, runway system upgrades and domestic terminal
renovations. Nearly $2.4 million of this investment was funded through the Federal
Department of Transportation’s Airport Improvement Plan and an Economic Development
Administration grant.
Capital Assets (net of depreciation)
Governmental Business-type
Activities Activities
Land and improvements 12,118,627 4,950,664
Buildings and improvements 42,551,907 74,084,903
Machinery and equipment 1,938,218 3,138,666
Vehicles 6,911,867 -
Infrastructure 11,371,924 46,069,009
Parking structures - 2,690,740
Aircraft operational assets - 95,528,033
Construction in process 2,908,528 7,121,916
Total 77,801,071 233,583,931
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 $147.0 million, an increase
of $1.8 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.
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 $369.6 million,
an amount which is significantly in excess of existing general obligation debt.
Bonded Debt Outstanding (in millions)
$80.5 $66.5
Governmental Activities
Business-type Activities
II - 15
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-44 to II-
47 of this report.
Cross Insurance Center
For nearly thirty years, City Councils had actively worked to replace the City’s aging,
inadequately sized and equipped auditorium and civic center. Their long term goal and vision
came to its long awaited realization in September 2013, with the opening of a state-of-the-art
5,800 fixed seat arena and conference center, known as the Cross Insurance Center.
Just prior to its grand opening, the University of Maine Orono chose the facility as its home for
both its men’s and women’s basketball teams. As could be expected, the facility did experience
some growing pains initially, but by the end of the fiscal year the facility was operating more
effectively and as anticipated. During its first year of operations, the Cross Insurance Center
hosted 215 events ranging from trade and consumer shows, to banquets and meetings,
sporting events as well as musical and theatrical entertainment performances. The facility
grossed $7.5 million in revenues and played host to over 280,000 attendees. The facility has
spurned additional development in the construction of an adjacent 100+ room hotel, which is
expected to be completed in 2015. After a year of operations, the facility continues to garner
and build upon the support of promoters and is focused on enhancing conference and
convention bookings. The facility is expected to generate sufficient income to cover its
operating costs and the City expects to receive sufficient revenues from naming rights, Arena
Fund revenues and Downtown Tax Increment Financing District funds to pay the debt service
costs.
State of Maine Biennial Budget
The Governor recently released the proposed FY2016-2017 State Biennial budget. This
proposal once again proves challenging to Maine municipalities. The proposal contains
substantial changes that would have a significant negative impact on individual property owners
and municipalities alike.
The largest fiscal challenge will be the proposed elimination of revenue sharing in FY 2017.
Revenue sharing was established to share a portion of sales and income taxes generated by
municipally based economic activity in order to contribute to the increased operating and capital
costs necessary to support this municipal activity. Over the last seven fiscal years, the State
has transferred $310.2 million of revenue sharing funds to its General Fund. It is estimated
that had revenue sharing been maintained as proscribed by Statute, the City would have
received an additional $10.8 million over this period. The impact of these actions is especially
relevant to the City, as Bangor businesses generate the highest amount of retail sales tax in the
State of Maine. For FY 2014, Bangor generated $1.63 billion in taxable retail sales or $87.5
million in sales tax receipts alone. If the State complied with existing Statute, the City would be
entitled to in excess of $5 million in revenue sharing versus $2.0 million currently anticipated.
II - 16
To date, through cost containment measures, the City has absorbed the loss of $3 million in
revenue sharing funds. Should the elimination of revenue sharing be enacted, there will need
to be significant reductions in services and level of services offered.
Beginning with FY 2014, the State of Maine transferred a portion of teacher retirement costs to
the local school districts. Prior to that time, the State of Maine provided 100% of the
employer’s retirement contribution for teachers. While the shift is only for the normal cost
portion of the employer’s contribution and funding was added to the State Aid to Education
funding to offset the costs, this change in practice bears watching to ensure that other portions
of the costs are not shifted to the local school districts without additional state funding or a
reduction in existing state funding levels of education.
The largest challenge faced by all municipalities, but especially service centers such as Bangor,
is the incremental nature of federal and state budget decisions. At the State level, Legislative
changes are reviewed at the Committee level. While individual changes implemented over a
number of sessions, seem tolerable, the totality of these actions has resulted in a significant
municipal tax shift and there isn’t enough growth in the tax base to offset these actions. The
City has reduce/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. The estimated
tax shift of the legislative mandates with no funding and statutory funding not upheld by the
Legislature represents $3.77 of the City’s FY 2015 tax rate of $21.80.
In addition to monitoring legislative actions, city and school staff and elected officials will work
collaboratively with other municipalities and professional organizations and actively participate
in the upcoming legislative hearings.
Economic Factors and Next Year’s Budget and Rates
The unemployment rate for the City of Bangor in 2014 was 5.4%, which continues to be on
par with or below both the national and State rates of 6.1% and 5.5%, respectively.
While Bangor represents less than 3% of the state’s population, businesses within the City
generate the highest amount of retail sales tax within the State at 8.8% of the statewide
total.
Bangor has experienced a slowing in the rate of appreciation of existing homes. We project
that existing home values will remain flat or increase slightly in the coming year.
Value of commercial properties has begun to increase slightly after realizing significant
downward adjustments made in FY 2010 and remaining flat since.
Bangor businesses continue to reinvest in personal property. While not subject to local
taxation, the State reimburses each municipality on an annually declining percentage of the
calculated tax on the investment. BETE value (net of depreciation) for FY 2015 increased
$14.4 million, or 20%, for a total of $87 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
construction, major renovations to existing properties, or the subdivision of property less any
“net new state funding”. For Fiscal Year 2014, the City’s LD 1 tax levy limit was as follows:
II - 17
Prior Year Base Municipal Commitment $ 27,741,178
Growth Factor:4.47% Average Real Personal Income 1.05% Property Growth Factor 3.42%
Net New State Funds -
Municipal Commitment Limit $ 23,666,134
The Fiscal Year 2014 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 2014 and 2015 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 2015 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 2015 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 4.8% allowed the City
Council to provide a 2% 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
Exhibit 1
Component Unit
Governmental Business-type Bangor
Activities Activities Total Public Library
ASSETS
Cash and cash equivalents 18,468,814$ 3,151,404$ 21,620,218$ 3,538,662$
Investments 1,930,150 15,685,070 17,615,220 13,507,985
Receivables:
Accounts (net of allowance of
$465,108 and $705,000, respectively)912,174 6,150,012 7,062,186 748,958
Intergovernmental 4,281,493 982,902 5,264,395 -
Taxes and liens receivable - prior years 1,423,484 - 1,423,484 -
Taxes receivable - current year 1,342,476 - 1,342,476 -
Unearned special assessments 30,130 87,664 117,794 -
Loans 7,704,929 2,237,344 9,942,273 -
Internal balances 3,277,299 (3,277,299) - -
Inventories 748,711 292,018 1,040,729 -
Prepaid items 104,554 26,152 130,706 -
Other assets - 20,000 20,000 -
Non-depreciable capital assets 8,000,896 10,737,912 18,738,808 -
Depreciable capital assets, net 69,800,175 222,846,019 292,646,194 9,253,750
Total assets 118,025,285 258,939,198 376,964,483 27,049,355
LIABILITIES
Accounts payable and other current liabilities 2,769,045 5,283,433 8,052,478 206,906
Accrued wages and benefits payable 4,006,652 180,040 4,186,692 -
Unearned revenues 165,313 - 165,313 -
Noncurrent liabilities:
Due within one year 7,275,627 3,970,959 11,246,586 104,471
Due in more than one year 67,153,082 81,250,406 148,403,488 447,420
Total liabilities 81,369,719 90,684,838 172,054,557 758,797
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - loans 5,200,850 - 5,200,850 -
Total deferred inflows of resources 5,200,850 - 5,200,850 -
NET POSITION
Net investment in capital assets 49,674,874 159,871,743 209,546,617 8,831,161
Restricted for:
Nonexpendable trust principal 544,200 - 544,200 4,381,312
Expendable income 483,284 - 483,284 11,932,385
Unrestricted (19,247,642) 8,382,617 (10,865,025) 1,145,700
Total net position 31,454,716$ 168,254,360$ 199,709,076$ 26,290,558$
See accompanying notes to financial statements.
CITY OF BANGOR, MAINE
Statement of Net Position
June 30, 2014
Primary Government
II - 18
Exhibit 2
Operating Capital Component UnitCharges for grants and grants and Governmental Business-type BangorFunctions/programs Expenses services contributions contributions activities activities Total Public Library
Primary governmentGovernmental activities:
General government $7,110,075 2,764,659$ 3,151$ -$ (4,342,265)$ -$ (4,342,265)$ -$
Public safety 18,050,107 2,682,248 208,532 439,792 (14,719,535) - (14,719,535) - Health, community services and recreation 9,586,571 1,164,090 6,669,871 - (1,752,610) - (1,752,610) - Public services 14,249,015 3,758,666 - 459,920 (10,030,429) - (10,030,429) - Other agencies 6,799,934 46,882 - 789,984 (5,963,068) - (5,963,068) -
Education 50,594,050 3,446,006 24,576,067 - (22,571,977) - (22,571,977) -
Arena development 500,566 1960876 - - 1,460,310 - 1,460,310 - Community development 2,178,972 994,546 1,144,538 - (39,888) - (39,888) - Waterfront 272,857 - - - (272,857) - (272,857) - Public transportation 2,782,968 816,819 1,998,161 31,183 63,195 - 63,195 -
Economic development (tif)1,440,452 - - - (1,440,452) - (1,440,452) -
Interest on debt 2,464,804 - - - (2,464,804) - (2,464,804) - Total governmental activities 116,030,371 17,634,792 34,600,320 1,720,879 (62,074,380) - (62,074,380) - Business-type activities:
Sewer Utility 6,843,975 8,426,054 - - - 1,582,079 1,582,079 -
Airport 20,855,066 12,220,328 - 3,824,968 - (4,809,770) (4,809,770) - Park Woods 497,833 440,295 - - - (57,538) (57,538) - Stormwater Utility 149,590 359,029 - - - 209,439 209,439 - Parking 925,595 1,002,164 - - - 76,569.00 76,569 -
Bass Park 6,317,039 2,683,094 - 215,000 - (3,418,945) (3,418,945) -
Municipal Golf Course 643,323 575,020 - - - (68,303) (68,303) - Economic Development 628,252 515,339 - - - (112,913) (112,913) - Total business-type activities 36,860,673 26,221,323 - 4,039,968 - (6,599,382) (6,599,382) -
Total primary government $152,891,044 43,856,115$ 34,600,320$ 5,760,847$ (62,074,380) (6,599,382) (68,673,762) -
Component unitBangor Public Library $2,645,273 1,868,436 2,173,569 2,981,834 - - - 4,378,566$
General revenues: Property taxes, levied for general purposes 52,243,583 750,000 52,993,583 -
Payment in lieu of taxes 161,438 - 161,438 -
Excise taxes 5,400,100 - 5,400,100 - Franchise taxes 350,014 - 350,014 - Grants and contributions not restricted to specific programs: Homestead/BETE exemption 1,455,388 - 1,455,388 -
Other State aid 26,015 - 26,015 -
State Revenue Sharing 2,305,725 - 2,305,725 - Unrestricted investment earnings 510,429 504,584 1,015,013 153,792 Miscellaneous revenues 1,863 - 1,863 - Transfers (3,170,717) 3,170,717 - -
Total general revenues and transfers 59,283,838 4,425,301 63,709,139 153,792
Change in net position (2,790,542) (2,174,081) (4,964,623) 4,532,358
Net position, beginning of year (Restated see Other Information Note G)34,245,258 170,428,441 204,673,699 21,758,200
Net position, end of year 31,454,716$ 168,254,360$ 199,709,076$ 26,290,558$
See accompanying notes to financial statements.
Program Revenues in net position
Primary Government
Net (expense) revenue and changes
CITY OF BANGOR, MAINEStatement of ActivitiesFor the Fiscal Year Ended June 30, 2014
II - 19
Exhibit 3
CITY OF BANGOR, MAINEBalance Sheet
Governmental Funds June 30, 2014
Community Capital Other TotalDevelopmentArenaProjectsGovernmentalGovernmentalGeneralBlock Grant Fund Fund Funds Funds
ASSETSCash and cash equivalents 12,701,394$ 62,419$ 922,416$ 3,718,847$ 1,063,738$ 18,468,814$
Investments 50,000 - - 1,751,353 128,797 1,930,150 Receivables:
Taxes 2,765,960 - - - - 2,765,960 Accounts (net of allowance of $465,108)751,691 - 129,164 - 31,319 912,174
Interfund 3,455,129 - - - - 3,455,129 Intergovernmental 3,438,342 25,661 - 623,431 194,059 4,281,493
Loans/Notes 753,992 5,010,721 - - 1,940,216 7,704,929
Unearned special assessments - - - 30,130 - 30,130 Inventory, at cost 748,711 - - - - 748,711
Prepaid items 104,554 - - - - 104,554
Total assets 24,769,773$ 5,098,801$ 1,051,580$ 6,123,761$ 3,358,129$ 40,402,044$
LIABILITIES
Accounts payable 1,138,907$ 2,563$ 446$ 1,147,085$ 21,418$ 2,310,419$ Accrued wages and benefits payable 4,000,984 5,668 - - - 4,006,652
Interfund loans payable - - - - 177,830 177,830 Unearned revenues 36,919 50,096 - 78,298 - 165,313
Due to rehabilitation recipients - 33,029 - - - 33,029 Total liabilities 5,176,810 91,356 446 1,225,383 199,248 6,693,243
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - property taxes 2,557,443 - - - - 2,557,443
Unavailable revenues - loans - 5,010,720 - - 160,000 5,170,720 Unavailable revenues - special assessments - - - 30,130 - 30,130
Total deferred inflows of resources 2,557,443 5,010,720 - 30,130 160,000 7,758,293
FUND BALANCES (DEFICITS) (Note J)Nonspendable 2,753,765 - - - 544,200 3,297,965
Restricted 1,262,869 - - - 2,454,681 3,717,550
Committed 2,623 - 1,051,134 - - 1,053,757 Assigned 3,417,791 - - 4,868,248 - 8,286,039
Unassigned 9,598,472 (3,275) - - - 9,595,197 Total fund balances (deficits)17,035,520 (3,275) 1,051,134 4,868,248 2,998,881 25,950,508
Total liabilities, deferred inflows of resources and fund balances 24,769,773$ 5,098,801$ 1,051,580$ 6,123,761$ 3,358,129$
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.77,801,071
Unavailable revenues - property taxes are not available to pay for current-period expenditure and, therefore,
are deferred in the funds.2,557,443
Long-term liabilities, including bonds payable $66,518,975, accrued interest $425,597, compensated absences $2,672,339, self insurance liability $1,857,752, net OPEB obligation $2,466,252, bond premium $635,663, and
capital leases $277,728 are not due and payable in the current period and, therefore, are not reported in the funds.(74,854,306)
Net position of governmental funds 31,454,716$
See accompanying notes to financial statements.
II - 20
Exhibit 4
CITY OF BANGOR, MAINEStatement of Revenues, Expenditures and Changes in Fund BalancesGovernmental FundsFor the Fiscal Year Ended June 30, 2014 Community Capital Other TotalDevelopmentArenaProjectsGovernmentalGovernmentalGeneralBlock Grant Fund Fund Funds Funds
Revenues
Taxes $56,005,218 -$ -$ 1,328,575$ 814,460$ 58,148,253$
Intergovernmental 30,285,356 1,144,538 - 1,638,526 6,957,554 40,025,974
Licenses and permits 1,389,717 - - - - 1,389,717
Charges for services 11,970,430 - - - 811,606 12,782,036
Program income - 752,817 - - 12,325 765,142
Revenue from use of money and property 769,067 211 1,960,876 263,244 121,419 3,114,817
Other 27,263 1,851 - 52,223 75,322 156,659 Total revenues 100,447,051 1,899,417 1,960,876 3,282,568 8,792,686 116,382,598
ExpendituresCurrent:General government 5,172,972 - - - - 5,172,972 Public safety 16,409,651 - - - - 16,409,651 Health, community services and recreation 4,826,149 - - - - 4,826,149 Public services 10,052,683 - - - - 10,052,683 Other agencies 4,566,380 - - - - 4,566,380 Education 50,771,925 - - - - 50,771,925 Tax increment financing 632,364 - - - - 632,364 Unclassified 90,061 - 500,566 - - 590,627 Restricted grants - 2,155,171 - - 8,574,321 10,729,492 Capital outlay 64,768 - - 12,470,015 - 12,534,783
Debt service 5,102,600 - - 77,000 - 5,179,600
Total expenditures 97,689,553 2,155,171 500,566 12,547,015 8,574,321 121,466,626
Excess (deficiency) of revenues over (under) expenditures 2,757,498 (255,754) 1,460,310 (9,264,447) 218,365 (5,084,028)
Other financing sources (uses)
Issuance of debt - - - 8,369,000 - 8,369,000
Premium on debt issuance - - - 133,552 - 133,552
Sale of assets 106,930 - - 80,830 - 187,760
Transfers to other funds (1,090,500) - (3,170,717) (110,554) (35,000) (4,406,771)
Transfers from other funds 80,976 - - 1,105,500 49,578 1,236,054 Total other financing sources (uses)(902,594) - (3,170,717) 9,578,328.00 14,578 5,519,595
Changes in fund balances 1,854,904 (255,754) (1,710,407) 313,881 232,943 435,567
Fund balances, beginning of year 15,180,616 252,479 2,761,541 4,554,367 2,765,938 25,514,941
Fund balances (deficits), end of year $17,035,520 (3,275)$ 1,051,134$ 4,868,248$ 2,998,881$ 25,950,508$
See accompanying notes to financial statements.
II - 21
Exhibit 5CITY OF BANGOR, MAINE
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of ActivitiesFor the Fiscal Year Ended June 30, 2014
Net change in fund balances - total governmental funds (from Exhibit 4)435,567$
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 $5,369,647, exceeded
depreciation expense of $4,024,648 and loss on disposal of assets of $185,897.1,159,102
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 general obligation
bond proceeds of $8,369,000 exceeded principal payments of $4,577,592 and
$83,281 in general obligation bonds and capital leases, respectively.(3,708,127)
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
net OPEB obligation ($239,289), compensated absences ($411,279), accrued
interest ($48,402) and decrease unavailable revenues ($107,467), self insurance
liability ($125,166), and bond premium ($4,187).(677,084)
Change in net position of governmental activities (see Exhibit 2)(2,790,542)$
See accompanying notes to financial statements.
II - 22
Exhibit 6
CITY OF BANGOR, MAINE
Statement of Revenues, Expenditures and Changes in
Unassigned Fund Balance Budget and Actual
General FundFor the Fiscal Year Ended June 30, 2014
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Taxes 55,067,630$ 55,067,630$ 56,005,218$ 937,588$
Intergovernmental 26,744,242 26,751,989 26,700,013 (51,976)
Licenses and permits 677,759 677,759 1,389,717 711,958
Charges for services:
municipal 8,678,761 8,678,761 8,423,681 (255,080)
school 3,194,042 3,194,042 3,446,006 251,964
Fines, forfeits and penalties 32,000 32,000 27,263 (4,737)
Revenue from use of money and property
municipal 721,400 721,400 700,557 (20,843)
Total revenues 95,115,834 95,123,581 96,692,455 1,568,874
Expenditures
Current:
General government 5,055,090 5,055,673 4,982,683 72,990
Public safety 16,767,249 16,774,996 16,410,045 364,951
Health, community services and recreation 4,992,146 4,992,146 4,824,616 167,530
Public buildings and services 10,283,684 10,283,684 10,047,240 236,444
Other agencies 4,539,005 4,549,005 4,566,381 (17,376)
Education 48,483,537 51,609,961 47,581,964 4,027,997
Unclassified 756,814 756,814 722,425 34,389
Debt service 5,102,419 5,102,419 5,102,600 (181)
Total expenditures 95,979,944 99,124,698 94,237,954 4,886,744
Excess (deficiency) of revenues
over (under) expenditures (864,110) (4,001,117) 2,454,501 6,455,618
Other financing sources (uses)
Appropriation from restricted, committed
and assigned fund balances 1,480,760 1,480,760 68,339 (1,412,421)
Appropriation from unassigned fund balance 91,350 91,350 (288,450) (379,800)
Sale of assets 21,500 21,500 53,253 31,753
Contributions - - 485 485
Insurance settlements 23,500 23,500 53,192 29,692
Transfers to other funds (780,000) (780,000) (830,000) (50,000)
Transfers from other funds 27,000 27,000 21,113 (5,887)
Total other financing sources (uses)864,110 864,110 (922,068) (1,786,178)
Net change in fund balance -$ (3,137,007)$ 1,532,433 4,669,440$
Unassigned fund balance, beginning of year 7,727,014
Changes in fund balance classification in accordance with GAAP
Changes in balances carried 318,576
Inventory and prepaids (GASB 54)20,449
Unassigned fund balance, end of year 9,598,472$
See accompanying notes to financial statements.
Budgeted amounts
II - 23
Exhibit 7
CITY OF BANGOR, MAINE
Statement of Net Position
Proprietary Funds
June 30, 2014
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 930,036$ 16,746$ 1,288,938$ 915,684$ 3,151,404$
Investments - 8,176,246 - - 8,176,246
Interfund loans receivable 89,000 - - - 89,000
Accounts receivable 3,318,916 3,016,291 265,110 254,695 6,855,012
Less allowance for uncollectible accounts (45,000) (660,000) - - (705,000)
Net accounts receivable 3,273,916 2,356,291 265,110 254,695 6,150,012
Due from other governments - 982,902 - - 982,902
Inventories, at cost - 292,018 - - 292,018
Prepaid items 13,151 13,001 - - 26,152
Total current assets 4,306,103 11,837,204 1,554,048 1,170,379 18,867,734
Noncurrent assets
Capital Assets:
Land and improvements 683,865 - 579,157 5,524,242 6,787,264
Buildings and improvements 28,665,849 - 68,830,406 7,164,184 104,660,439
Machinery and equipment 5,950,856 - 2,020,234 328,811 8,299,901
Infrastructure 58,301,449 - - 683,189 58,984,638
Aircraft operational assets - 263,928,910 - - 263,928,910
Parking structures - - - 11,317,169 11,317,169
Construction in process - 7,009,247 112,669 - 7,121,916
93,602,019 270,938,157 71,542,466 25,017,595 461,100,237
Less accumulated depreciation (42,052,369) (168,400,877) (3,012,454) (14,050,606) (227,516,306)
Net capital assets 51,549,650 102,537,280 68,530,012 10,966,989 233,583,931
Investments 648,788 6,860,036 - - 7,508,824
Loans receivable - 747,001 - 1,490,343 2,237,344
Unearned special assessments 87,664 - - - 87,664
Deposits - - - 20,000 20,000
Total noncurrent assets 52,286,102 110,144,317 68,530,012 12,477,332 243,437,763
Total assets 56,592,205 121,981,521 70,084,060 13,647,711 262,305,497
See accompanying notes to financial statements.
Continued on next page
II - 24
Exhibit 7 (con't)
CITY OF BANGOR, MAINE
Statement of Net Position
Proprietary Funds
June 30, 2014
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
LIABILITIES
Current liabilities
Accounts payable 411,936 1,757,003 277,447 71,834 2,518,220
Accrued wages and benefits payable 35,459 127,382 - 17,199 180,040
Accrued interest 65,891 38,018 1,019,915 74,076 1,197,900
Workers' compensation 20,000 117,351 - 3,665 141,016
Interfund loans payable - 226,325 1,967,574 1,172,400 3,366,299
General obligation debt payable 1,383,712 396,586 1,037,386 554,795 3,372,479
Capital lease obligation payable - - 8,631 - 8,631
Accrued compensated absences 83,975 249,085 - 25,061 358,121
Other liabilities - 11,280 1,646,745 - 1,658,025
Total current liabilities 2,000,973 2,923,030 5,957,698 1,919,030 12,800,731
Long-term liabilities
Workers' compensation - 207,649 - 6,335 213,984
General obligation debt payable 10,848,460 7,206,957 53,323,080 5,684,547 77,063,044
Capital lease obligation - - 33,068 - 33,068
Accrued compensated absences 52,303 157,352 - 22,933 232,588
Net OPEB obligation 150,481 551,197 - 41,359 743,037
Other long-term liabilities 294,503 - 2,456,776 213,406 2,964,685
Total long-term liabilities 11,345,747 8,123,155 55,812,924 5,968,580 81,250,406
Total liabilities 13,346,720 11,046,185 61,770,622 7,887,610 94,051,137
NET POSITION
Net investment in capital assets 40,174,618 98,233,206 15,373,761 6,090,158 159,871,743
Unrestricted 3,070,867 12,702,130 (7,060,323) (330,057) 8,382,617
Total net position 43,245,485$ 110,935,336$ 8,313,438$ 5,760,101$ 168,254,360$
See accompanying notes to financial statements.
Continued from previous page
II - 25
Exhibit 8
CITY OF BANGOR, MAINE
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Fiscal Year Ended June 30, 2014
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
Operating revenues
Charges for services 8,422,958$ 12,220,328$ 2,683,094$ 2,891,847$ 26,218,227$
Total operating revenues 8,422,958 12,220,328 2,683,094 2,891,847 26,218,227
Operating expenses
Operating expenses other than
depreciation and amortization 4,760,209 12,466,736 2,853,348 2,010,319 22,090,612
Depreciation and amortization 1,750,496 8,062,412 1,574,826 618,307 12,006,041
Total operating expenses 6,510,705 20,529,148 4,428,174 2,628,626 34,096,653
Operating income (loss)1,912,253 (8,308,820) (1,745,080) 263,221 (7,878,426)
Nonoperating revenue (expenses)
Interest income 39,786 400,902 - 63,896 504,584
Interest expense (333,270) (325,918) (1,888,865) (215,967) (2,764,020)
Taxes (Downtown TIF)- - 750,000 - 750,000
Gain(loss) on sale of assets - 347,540 215,000 - 562,540
Miscellaneous income (expense)3,096 - - - 3,096
Total nonoperating revenue (expenses)(290,388) 422,524 (923,865) (152,071) (943,800)
Net income (loss) before grants/contributions and transfers 1,621,865 (7,886,296) (2,668,945) 111,150 (8,822,226)
Grants/contributions received for capital assets - 3,477,428 - - 3,477,428
Transfers from other funds - - 3,170,717 - 3,170,717
Change in net position 1,621,865 (4,408,868) 501,772 111,150 (2,174,081)
Net position, beginning of year (Restated Note G)41,623,620 115,344,204 7,811,666 5,648,951 170,428,441
Net position, end of year 43,245,485$ 110,935,336$ 8,313,438$ 5,760,101$ 168,254,360$
See accompanying notes to financial statements.
II - 26
Exhibit 9
CITY OF BANGOR, MAINE
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended June 30, 2014
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 7,688,604$ 13,157,567$ 4,120,582$ 2,662,803$ 27,629,556$
Cash paid to suppliers for goods and services (3,053,112) (5,205,597) (2,655,528) (1,385,792) (12,300,029)
Cash paid to employees for services (1,583,830) (6,608,536) (6,509) (595,509) (8,794,384)
Net cash provided by (used in) operating
activities 3,051,662 1,343,434 1,458,545 681,502 6,535,143
Cash flows from noncapital financing activities
Interfund loans (repayments)(310,995) (2,275,000) (445,000) 120,600 (2,910,395)
Taxes (Downtown TIF)- - 750,000 - 750,000
Transfers in - - 3,170,717 - 3,170,717
Net cash provided by (used in) noncapital
financing activities (310,995) (2,275,000) 3,475,717 120,600 1,010,322
Cash flows from capital and related financing activities
Proceeds from general obligation bonds 300,000 - - - 300,000
Acquisition and construction of capital assets (761,759) (6,565,222) (3,696,323) - (11,023,304)
Principal paid on general obligation bonds (1,532,904) (229,193) (54,828) (539,775) (2,356,700)
Interest paid on general obligation bonds (338,149) (323,770) (2,063,075) (218,661) (2,943,655)
Proceeds from sale of property 3,096 347,540 565,000 - 915,636
Grant/contribution monies received for capital assets - 3,192,619 - - 3,192,619
Net cash provided by (used in) capital and related
financing activities (2,329,716) (3,578,026) (5,249,226) (758,436) (11,915,404)
Cash flows from investing activities
Net sales (purchases) of investments (648,788) 8,646 - - (640,142)
Investment of unexpended bond proceeds 225,600 - - - 225,600
Interest on investments 39,799 400,902 - 90,153 530,854
Loan repayments - 186,159 - - 186,159
Net cash provided by (used in) investing activities (383,389) 595,707 - 90,153 302,471
Net increase (decrease) in cash 27,562 (3,913,885) (314,964) 133,819 (4,067,468)
Cash, beginning of year 902,474 3,930,631 1,603,902 781,865 7,218,872
Cash, end of year 930,036$ 16,746$ 1,288,938$ 915,684$ 3,151,404$
Schedule of noncash investing, capital and financing activities:
During the year, the Airport Fund had an unrealized gain on investments in the amount of $524,674.
During the year, the Bass Park Fund executed capital leases for capital assets in the amount of $52,837.
See accompanying notes to financial statements.
Continued on next page
II - 27
Exhibit 9 (con't)
CITY OF BANGOR, MAINE
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended June 30, 2014
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)1,912,253$ (8,308,820)$ (1,745,080)$ 263,221$ (7,878,426)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities
Depreciation and amortization 1,750,496 8,062,412 1,574,826 618,307 12,006,041
Allowance for uncollectible accounts - 141,647 (10,000) - 131,647
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (761,216) 937,239 (108,545) (229,044) (161,566)
(Increase) decrease in due from water district 26,863 - - - 26,863
(Increase) decrease in inventories - 30,417 - - 30,417
(Increase) decrease in prepaid items (2,604) (867) 17,980 - 14,509
Increase (decrease) in accounts payable 111,457 455,821 179,840 17,692 764,810
Increase (decrease) in unearned revenue - - 1,556,033 - 1,556,033
Increase (decrease) in other liabilities 14,413 25,585 (6,509) 11,326 44,815
Total adjustments 1,139,409 9,652,254 3,203,625 418,281 14,413,569
Net cash provided by (used in) operating activities 3,051,662$ 1,343,434$ 1,458,545$ 681,502$ 6,535,143$
See accompanying notes to financial statements.
Continued from previous page
II - 28
Exhibit 10
CITY OF BANGOR, MAINE
Statement of Fiduciary Net Position
Fiduciary FundsJune 30, 2014
Agency
Fund
ASSETS
Cash and cash equivalents $120,448
Total assets $120,448
LIABILITIES
Amounts held for others $120,448
Total liabilities $120,448
See accompanying notes to financial statements.
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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 – 36
B Reconciliation of Budgetary Basis Statements II – 36
C Excess of Expenditures Over Appropriations II – 37
D Deficit Fund Equity II – 37
E Restricted Assets II – 37
Detailed Notes on All Funds
A Deposits and Investments II – 38
B Property Tax II – 39
C Capital Assets II – 39
D Interfund Transactions II – 41
E Due From Other Governments II – 42
F Leases II – 42
G Other Assets II – 43
H Unearned Revenue II – 43
I Long-Term Debt II – 44
J Fund Balances II – 48
K Net Position II – 49
Other Information
A Risk Management II – 49
B Tax Increment Financing Districts II – 50
C Contingent Liabilities II – 51
D Retirement II – 51
E Other Postemployment Benefits II – 53
F Subsequent Events II – 55
G Restatement II – 55
II - 30
CITY OF BANGOR, MAINE Notes to the Financial Statements June 30, 2014
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 61% of the operating financial support received by the Library during
the year ended June 30, 2014. 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, 2013 (most recent data available) the City
of Bangor’s share of the Joint Venture’s net assets was $5,839,499. 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
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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
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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.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather
than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the City’s proprietary fund are charges to customers for sales and services. Operating expenses include
the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
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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
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is included as part of
the capitalized value of the assets constructed.
Property, plant, and equipment of the primary government is depreciated using the straight-line method over the assets' estimated useful lives.
The range of useful lives used to compute depreciation are as follows:
Buildings 25 – 50 years
Equipment 5 – 20 years Infrastructure 10 – 50 years
Aircraft Operational 5 – 40 years
Parking Structures 10 – 20 years
5. Deferred Inflows/Outflows of Resources
In addition to assets and liabilities, the statement of financial position will sometimes report a separate
section for deferred outflows or inflows, respectively, of resources. Deferred outflows of resources
represent consumption of net position that applies to a future period(s) and therefore will not be
recognized as an expense/expenditure until then. The City has no items that qualify as deferred
outflows of resources. Deferred inflows of resources represent an acquisition of net position that
applies to future period(s) and therefore will not be recognized as revenue until that time. Due to
differences in the modified accrual basis of accounting, the City has one type of deferred inflow of
resources, unavailable revenue. 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.
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.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
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.
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. 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
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Excess of revenues over expenditures and
other financing sources and uses (Budget)1,532,433$
Activity in assigned fund balance (160,000)
2014 encumbrances 1,246,557
2013 encumbrances paid (757,097)
2013 encumbrances lapsed (6,989)
Excess of revenues and other financing sources
over expenditures and other uses (GAAP)1,854,904$
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 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 - 37
Excess (deficiency) of revenues over expenditures and encumbrances:Sewer (543,040)$
Airport (7,980,788)
Park Woods (56,986)
Parking (122,197)
Bass Park (1,366,456)
Municipal Golf Course (93,278)
Economic Development (254,998)
Stormwater Utility 135,306
(10,282,437) Nonoperating revenues classification (2,164,667)
Investments at market value (10,396)
Capital outlay (79,766)
Adjustments for accrual basis 598,075
Principal payments 2,367,838
2013 encumbrances (249,418)
Nonoperating expenses classification 1,942,345
Operating loss (7,878,426)$
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 $107,353, Legal $14,109, Insurance $1,012, Parks and Recreation $98,795, Fire $91,475 and
Other Agencies $19,999. These over-expenditures were funded by receipt of revenues in excess of
appropriations and under-expenditures within other General Fund departments.
The Economic Development Fund was over-expended by $6,972, due to increased utility costs
associated with vacant properties.
D. Deficit Fund Equity
The Park Woods Fund has a deficit net position of $32,035. The City is actively pursuing a sale of this
property, which would fund this deficit. The Stormwater Utility Fund has a deficit net position of
$1,002,383 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 $3,275 due to accrued expenses reimbursed in the subsequent year.
E. Restricted Assets
Donations received by the City whose use is limited are placed in the appropriate Special Revenue
fund, depending upon whether or not the principal can be expended. All changes in market value are added to the earnings, which is allowable by State Statute. As these amounts are invested in a note
receivable, there was no change in market value for fiscal year 2014.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
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Investment types Fair Value Not Applicable <1 1-5
Mutual Funds 10,818,573$ 10,818,573$ -$ -$ Repurchase Agreements 1,299,456 1,299,456 - -
US Treasuries 4,736,665 - 2,574,975 2,161,690
Common Stock 710,526 710,526 - -
Certificate of Deposit 50,000 - 50,000 -
Totals 17,615,220$ 12,828,555$ 2,624,975$ 2,161,690$
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, 2014, $0 of the City’s bank
balance of $21,986,613 was exposed to custodial credit risk because it was uninsured and
uncollateralized.
At June 30, 2014, 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 $1.00 per share and limit
assets of the fund to U.S. Treasury Obligations or Federal Instrumentality or Agency Securities; the
total investments in stock can not exceed 10% of the portfolio value and no more than 5% can be
invested in any one company.
Custodial Credit Risk - Investments For investments, custodial credit risk is the risk that, in the event of failure of the counterparty, the
City will not be able to recover the value of its investments or collateral securities that are in the
possession of the outside party. As of June 30, 2014, the City had no investments that were subject to custodial risk. The City’s investment policy states that all security transactions, including collateral for
repurchase agreements, entered into by the City shall be conducted on a “delivery vs. payment” basis.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
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Balance Balance
June 30, 2013 Increases Decreases June 30, 2014Governmental activities:
Capital assets, not being depreciated:
Land 5,092,368$ -$ -$ 5,092,368$
Construction in process 467,131 2,573,888 132,491 2,908,528
Total capital assets not being depreciated 5,559,499 2,573,888 132,491 8,000,896
Capital assets, being depreciated:
Land improvements 11,309,931 - - 11,309,931
Buildings and improvements 68,346,864 1,213,214 - 69,560,078
Machinery and equipment 11,310,645 267,161 - 11,577,806
Vehicles 17,373,004 1,266,432 1,026,155 17,613,281
Infrastructure 22,733,494 181,443 - 22,914,937
Total capital assets being depreciated 131,073,938 2,928,250 1,026,155 132,976,033
Less accumulated depreciation for:
Land improvements (3,789,373) (494,299) - (4,283,672)
Buildings and improvements (25,590,632) (1,417,539) - (27,008,171)
Machinery and equipment (9,056,117) (583,471) - (9,639,588) Vehicles (10,355,375) (1,186,297) (840,258) (10,701,414)
Infrastructure (11,199,971) (343,042) - (11,543,013)
Total accumulated depreciation (59,991,468) (4,024,648) (840,258) (63,175,858) Total capital assets being depreciated, net 71,082,470 (1,096,398) 185,897 69,800,175
Governmental activities capital assets, net 76,641,969$ 1,477,490$ 318,388$ 77,801,071$
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 9, 2013, 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 16, 2013 and March 18, 2014. 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, 2014 was as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 40
Balance Balance
June 30, 2013 Increases Decreases June 30, 2014
Business-type activities:Capital assets, not being depreciated:
Land 3,965,996$ -$ 350,000$ 3,615,996$
Construction in process 6,329,946 6,791,521 5,999,551 7,121,916
Total capital assets not being depreciated 10,295,942 6,791,521 6,349,551 10,737,912 Capital assets, being depreciated:
Land improvements 3,171,268 - - 3,171,268
Buildings and improvements 102,276,401 2,384,038 - 104,660,439
Machinery and equipment 7,863,744 436,157 - 8,299,901
Infrastructure 58,546,938 437,700 - 58,984,638 Airport operational assets 258,713,164 5,268,230 52,484 263,928,910
Parking structures 11,317,169 - - 11,317,169
Total capital assets being depreciated 441,888,684 8,526,125 52,484 450,362,325
Less accumulated depreciation for:Land improvements (1,765,462) (71,138) - (1,836,600)
Buildings and improvements (27,898,754) (2,676,782) - (30,575,536)
Machinery and equipment (4,826,202) (335,033) - (5,161,235)
Infrastructure (12,323,267) (592,362) - (12,915,629) Airport operational assets (160,390,949) (8,062,412) (52,484) (168,400,877)
Parking structures (8,358,115) (268,314) - (8,626,429)
Total accumulated depreciation (215,562,749) (12,006,041) (52,484) (227,516,306)
Total capital assets being depreciated, net 226,325,935 (3,479,916) - 222,846,019
Business-type activities capital assets, net 236,621,877$ 3,311,605$ 6,349,551$ 233,583,931$
Governmental Activities:
General government 1,511,813$
Public safety 862,286
Health, community services and recreation 81,663
Public building and services 475,381
Education 1,093,505
Total depreciation expense - governmental activities 4,024,648$
Business-type activities:
Sewer Utility Fund 1,750,496$
Airport Fund 8,062,412
Park Woods 89,123
Parking Fund 268,315
Bass Park Fund 1,574,826
Municipal Golf Course 76,371
Economic Development Fund 184,498
Total depreciation expense - business-type activities 12,006,041$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Depreciation expense was charged to functions/programs of the primary government as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 41
Receivable Payable
General Fund 3,455,129$ -$
Grant Fund - 177,830
Airport Fund - 226,325
Sewer Fund 89,000 -
Stormwater Utility Fund - 89,000
Park Woods Fund - 330,500
Bass Park Fund - 1,967,574
Economic Development - 752,900
3,544,129$ 3,544,129$
Transfers to Transfers from
General Fund 1,090,500$ 80,976$
Arena Fund 3,170,717 -
Dedicated Revenue Funds - 49,141
Capital Projects Fund 110,554 1,105,500
Other Nonmajor Permanent Funds 35,000 437
Bass Park Fund - 3,170,717
4,406,771$ 4,406,771$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Construction commitments
The government has active construction projects as of June 30, 2014. The projects include traffic flow
improvements, construction of a new athletic stadium, 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, 2014 the balances were as follows:
Individual fund transfers to and from other funds for the fiscal year ended June 30, 2014 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 - 42
Federal State of
Government Maine Other Total
General Fund 2,063,020$ 807,071$ 568,251$ 3,438,342$
Community Development 25,661 - - 25,661
Nonmajor Special Revenue Funds 188,686 5,373 - 194,059
Capital Projects Fund 439,528 183,903 - 623,431
Proprietary Funds 887,798 95,104 - 982,902
Fiscal year ending Economic
June 30,Airport Development
2015 1,900,913$ 384,845$
2016 1,288,534 336,266
2017 953,605 324,840
2018 838,745 296,404
2019 563,007 204,446
Subsequent to 2019 3,787,893 1,956,459
9,332,697$ 3,503,260$
Economic
Airport Development
Land 565,532$ 2,736,769$
Buildings 22,886,327 4,318,516
Less accumulated depreciation (15,770,204) (1,469,201)
Total 7,681,655$ 5,586,084$
DETAILED NOTES ON ALL FUNDS, CONTINUED
E. Due From Other Governments
Due from other governments is comprised of the following amounts at June 30, 2014:
Amounts due from Federal Government are comprised of operating and capital grants for all fund types. Of the General Fund’s $807,071 due from State of Maine, $349,989 represents school grant and
State agency billings, and $160,982 represents general assistance claims. Amounts owed to the
Capital Projects and Proprietary funds by the State of Maine are for capital grant purposes. Amounts due from other communities for tuition reimbursement to Bangor account for $399,844 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 2040 and 2035, respectively.
Minimum future rentals to be received on noncancelable leases as of June 30, 2014 are:
Minimum future rentals do not include contingent rentals, which may be received as stipulated in the
lease contracts. The Airport received $2,925,352 in contingent rentals in fiscal year 2014.
The carrying amounts of the leased assets are as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 43
Proprietary
Fund
Deposits 20,000$
Total 20,000$
Governmental Business-type
Fiscal Year ending June 30,Activities Activities
2015 95,572$ 10,074$
2016 95,572 10,074
2017 95,575 10,074
2018 - 10,074
2019 - 7,929
Subsequent to 2019 - 2,938
Total minimum lease payments 286,719 51,163
Less: amount representing interest (8,991) (9,464)
Present value of future minimum lease payments 277,728$ 41,699$
Governmental Business-type
Activities Activities
Machinery and equipment 514,581$ 52,837$
Less accumulated depreciation (154,374) (4,081)
Carrying value 360,207$ 48,756$
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 and, therefore, have been recorded at the present value of the future minimum lease payments. The following is an analysis of equipment leased under capital leases
as of June 30, 2014:
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, 2014:
G. Other Assets
Other assets are comprised of the following:
H. Unearned Revenue
General Fund, Community Development Block Grant and Capital Projects Fund unearned revenues
consist of $36,919, $50,096 and $78,298 in advance deposits, respectively.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 44
Bonds and notes payable at June 30, 2013 145,219,790$
Add: principal additions 8,669,000
Less: principal repayments 6,934,292
Bonds and notes payable at June 30, 2014 146,954,498$
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 $203,099,948. The following is a summary
of general obligation bond and note transactions of the City for the fiscal year ended June 30, 2014:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 45
Fiscal year Interest Business-type Total
Long-term debt of maturity rate City School Activities June 30, 2014
Combined sewer overflow 2017 3.52%- - 555,153 555,153
Tax increment financing note*2016 4.50%200,041 - - 200,041
Combined sewer overflow 2018 3.03%- - 586,854 586,854
Tax increment financing note*2018 4.50%80,830 - - 80,830
Maine Business Enterprise Park 2018 5.00%- - 73,935 73,935
Public improvements note*2020 4.50%375,015 - - 375,015
Pension obligation bonds 2026 3.06% - 6.45%21,757,695 1,390,190 4,662,115 27,810,000
Combined sewer overflow 2023 1.94%- - 1,456,213 1,456,213
Tax increment financing note*2015 2.50% - 4.00%17,180 - - 17,180
Briggs Building note 2023 4.50%- - 753,991 753,991
Refunding/public improvements - 2004 2024 2.50% - 4.80%210,000 - - 210,000
Combined sewer overflow 2025 1.41%- - 1,582,335 1,582,335
Public improvements - 2005 2025 3.50% - 4.30%155,000 - 50,000 205,000
Airport building sprinklers 2025 3.25% - 5.00%- - 115,000 115,000
Chancellor's property note 2026 5.00%- - 1,600,222 1,600,222
Public improvements/refunding 2026 4.00% - 4.20%888,969 - 91,031 980,000
Combined sewer overflow 2027 1.64%- - 1,372,666 1,372,666
Public improvements - 2007 2027 4.00%2,155,000 - - 2,155,000
Combined sewer overflow 2028 1.81%- - 1,473,375 1,473,375
Public improvements - 2009 2029 2.00% - 4.375%2,325,000 - - 2,325,000
ARRA - CWSRF 2029 0.00%- - 749,438 749,438
ARRA - CWSRF 2030 0.00%- - 388,250 388,250
Public improvements/refunding 2020 2.00% - 3.25%2,733,332 4,901,620 795,048 8,430,000
Public improvements/refunding 2021 2.00% - 3.25%1,419,624 - 3,140,376 4,560,000
Qualified school construction bond 2028 4.65%- 5,610,000 - 5,610,000
Refunding/public improvements 2022 2.00% - 2.25%2,013,604 1,808,910 1,172,486 4,995,000
Arena 2043 3.25% - 5.00%- - 53,800,000 53,800,000
Qualified school construction bond 2035 4.05%- 2,800,000 - 2,800,000
Refunding/public improvements 2032 2.00% - 4.00%7,307,965 - 1,417,035 8,725,000
Refunding/airport improvements 2033 .50% - 4.25%- - 4,300,000 4,300,000
Public Improvements 2034 2.00% - 4.00%7,169,000 1,200,000 300,000 8,669,000
Total bonds and notes payable 48,808,255$ 17,710,720$ 80,435,523$ 146,954,498$
* Notes aggregating $673,066 are held by the City's Airport Fund at fixed, taxable market rates of interest.
Governmental Activities
Fiscal year ending
June 30,Principal Interest Principal Interest
2015 5,120,781$ 2,484,297$ 3,372,479$ 2,861,605$
2016 5,237,687 2,307,519 3,483,464 2,751,701
2017 5,204,002 2,136,271 3,595,825 2,634,691
2018 5,143,808 1,934,967 3,532,872 2,517,593
2019 4,718,052 1,745,903 3,323,824 2,393,085
2020-2024 20,559,493 5,945,604 16,254,724 10,000,511
2025-2029 16,370,152 1,243,883 12,716,647 6,957,528
2030-2034 1,450,000 161,738 11,295,688 5,061,866
2035-2039 2,715,000 - 11,785,000 3,182,613
2040-2043 - - 11,075,000 901,175
Total 66,518,975$ 17,960,182$ 80,435,523$ 39,262,368$
Governmental Activities Business-type Activities
DETAILED NOTES ON ALL FUNDS, CONTINUED
Bonds and notes payable at June 30, 2014 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 - 46
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, 2014, the statutory limit for the City was
$369,637,500. The City’s outstanding long-term debt of $146,954,498 at June 30, 2014 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, 2014, $4,415,000 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, 2014, $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, 2014, no debt for this
purpose had been issued. The City will continue to monitor when and if the debt will be issued.
On May 28, 2014, the City Council authorized the issuance of up to $250,000 in general obligations
bonds to provide funding for the regional school program building renovations. The City expects to issue the debt within the next twelve months.
Overlapping Debt
In addition to the bonds and notes payable, the City may be contingently responsible for a
proportionate share of overlapping debt. Overlapping debt is debt issued by a separate entity that
shares the same tax base as the City of Bangor. As of June 30, 2014, Penobscot County had no debt
outstanding.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 47
June 30, 2013 Additions Reductions June 30, 2014 one year
Governmental activities:
General obligation debt 62,727,567$ 8,369,000$ 4,577,592$ 66,518,975$ 5,120,781$
Accrued compensated absences*2,261,060 2,044,224 1,632,945 2,672,339 1,445,363
Capital leases 361,009 - 83,281 277,728 90,476
Bond premium 639,850 - 4,187 635,663 6,280
Net OPEB obligation*2,226,963 417,882 178,593 2,466,252 -
Long-term obligation for self insurance 1,982,918 512,921 638,087 1,857,752 612,727
Governmental activities
long-term liabilities 70,199,367$ 11,344,027$ 7,114,685$ 74,428,709$ 7,275,627$
Business-type activities:
General obligation debt 82,492,223$ 300,000$ 2,356,700$ 80,435,523$ 3,372,479$
Accrued compensated absences*535,262 554,290 498,843 590,709 358,121
Capital leases - 52,837 11,138 41,699 8,631
Net OPEB obligation*666,966 132,847 56,776 743,037 -
Long-term obligation for self insurance 355,000 - - 355,000 141,016
Other 3,232,956 - 177,559 3,055,397 90,712
Business-type activities
long-term liabilities 87,282,407$ 1,039,974$ 3,101,016$ 85,221,365$ 3,970,959$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2014, was as follows:
* - The liquidation of compensated absences and net OPEB obligation is fully covered within the General Fund and individual proprietary funds.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 48
As of June 30, 2014, fund balances components consisted of the following:
Nonspendable Restricted Committed Assigned
General Fund:
Advances to other funds 1,900,500$ -$ -$ -$
Inventory and prepaid items 853,265 - - -
PEG capital support - 23,769 - -
Arbitrage - 265,088 - -
School Department
Regular - 571,279 - -
Adult education - 24,275 - -
General evening - 33,310 - -
Reading assessment - 247 - -
Special revenue - 61,400 - -
School lunch - 116,213 - -
Trust and agency - 167,288 - -
Cultural Commission/Econ Develop - - 2,623 -
Subsequent year expenditures - - - 31,347
Pooled equipment reserve - - - 318,739
Bus equipment reserve - - - 46,835
Fire equipment reserve - - - 107,821
Self insurance reserve - - - 1,857,302
Improvement reserve - - - 422,739
Cameron Stadium reserve - - - 218
Demolition reserve - - - 52,483
Benefit reserve - - - 565,114
Parks & Recreation reserve - - - 15,193
Subtotal 2,753,765 1,262,869 2,623 3,417,791
Arena Fund - - 1,051,134 -
Capital Projects Fund:
Capital project funds - - - 4,868,248
Subtotal - - - 4,868,248
Other Governmental Funds:
Nonexpendable trust principal 544,200 - - -
Nonmajor Special Revenue Funds - 1,971,397 - -
Nonmajor Permanent Funds - 483,284 - -
Subtotal 544,200 2,454,681 - -
Total 3,297,965$ 3,717,550$ 1,053,757$ 8,286,039$
DETAILED NOTES ON ALL FUNDS, CONTINUED
J. Fund Balances
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 49
Governmental Business-type
Capital assets 140,976,929$ 461,100,237$
Accumulated depreciation (63,175,858) (227,516,306)
Bonds payable (66,518,975) (80,435,523)
Capital leases (277,728) (41,699)
Non capital related bonds payable 36,969,265 9,201,596
Premium on long term debt (635,663) (2,547,488)
Unspent bond proceeds 2,336,904 110,926
Net invested in capital assets 49,674,874$ 159,871,743$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Encumbrances at year end were $1,246,557 for General Fund, $1,713,684 for Capital Projects Fund,
$2,465,482 for Airport Fund, $1,697,787 for Sewer Utility Fund and $376 for nonmajor proprietary funds.
K. Net Position
Net position represents the difference between assets and liabilities. 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, 2014:
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, 2014, 2013 and 2012.
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, 2014, the amount of self-insurance liabilities was
$2,212,302. This liability is the City’s best estimate based on available information.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 50
Workers'All other self-
Compensation insured risks Total
Unpaid claims as of July 1, 2012 2,117,326$ 312,520$ 2,429,846$
Incurred claims 94,250 - 94,250
Payments (842,868) - (842,868)
Changes in estimates and other adjustments 656,218 472 656,690
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$
OTHER INFORMATION, CONTINUED
Changes in the reported liabilities since July 1, 2012 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.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 51
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. The EPA has indicated that the City will now need to
undertake additional projects related to long term control and asset management plans, and a capacity
management operations and maintenance program. The City has not yet entered into any agreement
with the EPA, but has begun work on the areas identified to date by the EPA.
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.
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 2014 covered payroll was $16,739,257 and City
contributions were $1,436,492. 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 $480,810 and $55,372
respectively, in fiscal year 2014.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 52
OTHER INFORMATION, CONTINUED
Defined Benefit Pension Plan
Description of the Plan – The City contributes to the Maine Public Employees Retirement consolidated
plan, a cost sharing multiple-employer retirement system established by the Maine State legislature.
The Maine Public Employees Retirement System provides retirement and disability benefits, annual
cost-of-living adjustments, and death benefits to plan members and beneficiaries. The authority to
establish and amend benefit provisions rests with the state legislature. The Maine Public Employees
Retirement System issues a publicly available financial report that includes financial statements and
required supplementary information for the Consolidated Plan. That report may be obtained by writing
to Maine Public Employees Retirement, 46 State House Station, Augusta, Maine 04333-0046 or by
calling 1-800-451-9800.
Funding Policy – Plan members are required to contribute 6.5% of their annual covered salary and the
City is required to contribute an actuarially determined rate. The current rate ranges from 6.50% to
12.80% of annual covered payroll. The contribution rates of plan members and the City are
established and may be amended by the Maine Public Employees Retirement System Board of
Trustees. The City’s contributions to the Maine Public Employees Retirement System Consolidated Plan
for the years ended June 30, 2014, 2013, and 2012 were $956,294, $936,700, and $942,629
respectively, equal to the required contributions for each year.
Teachers’ Group
Description of the Plan - All school teachers, plus other qualified educators, participate in the Maine
Public Employees Retirement System's teacher group. The teacher’s group is a cost-sharing plan with
a special funding situation, established by the Maine State legislature. The Maine Public Employees Retirement System provides retirement and disability benefits, annual cost-of-living adjustments, and
death benefits to plan members and beneficiaries. The authority to establish and amend benefit
provisions rests with the state legislature. The Maine Public Employees Retirement System issues a publicly available financial report that includes financial statements and required supplementary
information for the Teacher’s Group. That report may be obtained by writing to Maine Public
Employees Retirement System, 46 State House Station, Augusta, Maine 04333-0046 or by calling 1-800-451-9800.
Funding Policy – Plan members are required to contribute 7.65% of their compensation to the
retirement system. The State of Maine Department of Education is required to contribute the
unfunded actuarial portion of the employer contribution rate (13.03%) and the health and benefits
component (2.33%) for a total of 15.36%, which amounts to $3,585,343 for fiscal year 2014. This
amount has been reported as an intergovernmental revenue and education expenditure in the GAAP
basis financial statements. The school department is required to contribute the normal cost of the
employer contribution which amounts to 2.65% of their compensation. The school department is
required to contribute the entire amount of the employer contribution for federally funded teachers, for
which they contributed 18.48% of their compensation. This cost is charged to the applicable grant.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 53
Annual required contribution (ARC)604,390$
Amortization adjustment to ARC (169,418)
Interest on net OPEB obligation 115,757
Annual OPEB cost 550,729$
OTHER INFORMATION, CONTINUED
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.
E. Other Postemployment Benefits
Governmental Accounting Standards Board (GASB) Statement 45, Accounting and Financial Reporting
by Employers for Postemployment Benefits Other Than Pensions requires that the long-term cost of
retirement health care and obligations for other postemployment benefits (OPEB) be determined on an
actuarial basis and reported similar to pension plans.
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:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 54
June 30, 2012 June 30, 2013 June 30, 2014
Annual OPEB cost 344,143$ 557,850$ 550,729$
City contributions (57,070) (274,117) (235,369)
Increase in net OPEB obligation 287,073 283,733 315,360
Net OPEB obligation, beginning of year 2,323,123 2,610,196 2,893,929
Net OPEB obligation, end of year 2,610,196$ 2,893,929$ 3,209,289$
Percentage contributed 16.58%49.14%42.74%
Governmental Business-type Total
Activities Activities June 30, 2013
Actuarial accrued liability (AAL)5,213,644$ 1,657,448$ 6,871,092$
Actuarial value of plan assets - - -
Unfunded actuarial accrued liability (UAAL)5,213,644$ 1,657,448$ 6,871,092$
Covered payroll 16,098,456$ 5,117,794$ 21,216,250$
UAAL as a percentage of covered payroll 32.39%
OTHER INFORMATION, CONTINUED
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, 2012, 2013 and 2014 are as follows:
The unfunded actuarial accrued liability as a percentage of covered payroll for June 30, 2014 is as
follows:
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 06/30/13 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
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 55
OTHER INFORMATION, CONTINUED
F. Subsequent Events
On August 11, 2014 the City Council authorized the issuance of up to $2,720,000 in general obligation
bonds for the purpose of funding street and sidewalk work, parks & recreation infrastructure and
equipment, the City’s annual fleet/equipment replacement and fire station improvements.
On November 10, 2014, the City Council authorized the issuance of up to $150,000 in general
obligation bonds for the purpose of regional school program building renovations.
On December 19, 2014 the City issued $2,500,000 in 20 year general obligation bonds for the purpose
of funding sewer infrastructure improvements. The bonds were issued through the Maine Municipal
Bond Bank’s Clean Water State Revolving Loan Fund at an interest rate of .10%.
G. Restatement
The beginning of year, net position for the Stormwater and Airport funds were restated. The
restatement was due to the transfer of stormwater project related debt being transferred to the
Stormwater Utility fund. Until the creation of the fund, this debt was being paid by the Airport fund.
Net position for the Airport Fund as of June 30, 2014 has been restated as follows:
Net position, beginning of year $114,132,382
Transfer of general obligation bonds 1,211,822
Net position, beginning of year, as restated $115,344,204
Net position for the Stormwater Utility Fund as of June 30, 2014 has been restated as follows:
Net position, beginning of year $ -
Transfer of general obligation bonds (1,211,822)
Net position, as restated $(1,211,822)
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 56
OTHER INFORMATION, CONTINUED
The 2013 actuarial accrued liability (AAL) and covered payroll balances for business-type activities were
restated on the Required Supplemental Information, Schedule of Funding Progress. The restatements were due to the City discontinuing employment for all employees in the Bass Park Fund.
2013 Actuarial accrued liability (AAL) $1,671,709 Reduction due to position eliminations (84,662)
2013 Actuarial accrued liability (AAL), as restated $1,587,047
2013 Covered payroll $5,347,204
Reduction due to position eliminations (293,398)
2013 Covered payroll, as restated $5,053,806
The Bangor Public Library, a component unit of the City of Bangor, restated its financial statements for
the year ended June 30, 2013, to reflect additional contributed income and increased construction in
progress in the amount of $447,227. The amount of the restatement is reflective of payments made
by the City of Bangor in the prior year related to the repairs of the facility’s dome.
2009 2010 2011 2012 2013*2014
Actuarial Valuation Date 7/1/2008 7/1/2008 1/1/2011 1/1/2011 6/30/2013 6/30/2013Governmental activities:
Actuarial value of assets -$ -$ -$ -$ -$ -$ Actuarial accrued liability (AAL)8,488,427 8,488,427 3,407,638 3,430,307 5,284,045 5,213,644 Unfunded actuarial accrued liability (UAAL)8,488,427$ 8,488,427$ 3,407,638$ 3,430,307$ 5,284,045$ 5,213,644$ Funded ratio 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$
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 Unfunded actuarial accrued liability (UAAL)2,710,336$ 2,710,336$ 1,095,160$ 1,072,491$ 1,587,047$ 1,657,448$
Funded ratio 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$
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 Unfunded actuarial accrued liability (UAAL)11,198,763$ 11,198,763$ 4,502,798$ 4,502,798$ 6,871,092.00$ 6,871,092$ Funded ratio 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$
UAAL as a percentage of covered payroll 52.21%49.41%19.62%19.97%31.30%32.39%
Only six 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, MAINERequired Supplemental Information
Schedule of Funding Progress - Retiree Healthcare Plan
For the Fiscal Year Ended June 30, 2014
II - 57
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.
Schedule A-1
CITY OF BANGOR, MAINE
Balance Sheet
General FundJune 30, 2014
ASSETS
Cash and cash equivalents 12,701,394$
Investments 50,000
Receivables:
Taxes 2,765,960
Accounts (net of allowance of $465,108)751,691
Interfund 3,455,129
Intergovernmental 3,438,342
Loans 753,992
Inventory, at cost 748,711
Prepaid items 104,554
Total assets 24,769,773
LIABILITIES
Accounts payable 1,138,907$
Accrued wages and benefits payable 4,000,984
Unearned revenue 36,919
Total liabilities 5,176,810
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - property taxes 2,557,443
Total deferred inflows of resources 2,557,443
FUND BALANCES
Nonspendable 2,753,765
Restricted 1,262,869
Committed 2,623
Assigned 3,417,791
Unassigned 9,598,472
Total fund balance 17,035,520
Total liabilities, deferred inflows ofresources and fund balances 24,769,773$
II - 58
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, 2014
Balances Variance
Carried
7/1/2013 Budget Actual Surplus Carried
Revenues
Taxes
Real and personal property -$ 52,745,345$ 52,654,263$ (91,082)$ -$
Change in unavailable property tax - - 107,467 107,467 -
Tax increment financing district - (2,553,715) (2,553,715) - -
Payment in lieu of taxes - 150,000 161,438 11,438 -
Excise - 4,526,000 5,400,100 874,100 -
Interest on delinquent taxes - 200,000 235,665 35,665 -
Total taxes - 55,067,630 56,005,218 937,588 -
Intergovernmental
State revenue sharing - 2,369,000 2,305,725 (63,275) -
School subsidy - 17,160,944 16,970,557 - (190,387)
Other -
municipal - 3,340,533 3,403,564 63,031 -
school - 3,881,512 4,020,167 - 138,655
Total intergovernmental - 26,751,989 26,700,013 (244) (51,732)
Other revenue
Licenses and permits - 677,759 1,389,717 711,958 -
Charges for service -
municipal - 8,678,761 8,423,681 (255,080) -
school - 3,194,042 3,446,006 - 251,964
Fines, forfeits and penalties - 32,000 27,263 (4,737) -
Revenue from use of money and property -
municipal - 721,400 700,557 (20,843) -
Total other - 13,303,962 13,987,224 431,298 251,964
Total revenues - 95,123,581 96,692,455 1,368,642 200,232
II - 59
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, 2014
Balances Variance
Carried
7/1/2013 Budget Actual Surplus Carried
Expenditures
General government
Council - 30,484 30,203 281 -
Executive - 983,418 1,090,771 (107,353) -
Human resources - 120,256 99,703 20,553 -
City clerk - 365,685 351,919 13,766 -
Assessing - 347,035 338,604 8,431 -
Legal - 272,022 286,131 (14,109) -
Finance - 1,589,545 1,530,944 58,601 -
Insurance - 155,000 156,012 (1,012) -
Planning, econ dev, code enforcement 10,000 1,182,228 1,098,396 93,832 -
Total general government 10,000 5,045,673 4,982,683 72,990 -
Public safety
Police - 8,471,546 8,015,120 456,426 -
Fire - 8,303,450 8,394,925 (91,475) -
Total public safety - 16,774,996 16,410,045 364,951 -
Health, community services and recreation
Health and community services - 3,223,990 2,957,665 266,325 -
Parks and recreation - 1,768,156 1,866,951 (98,795) -
Total health, commun. serv and rec.- 4,992,146 4,824,616 167,530 -
Public buildings and services - 10,283,684 10,047,240 236,444 -
II - 60
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, 2014
Balances Variance
Carried
7/1/2013 Budget Actual Surplus Carried
Expenditures, continued
Other agencies
County tax - 3,010,874 3,020,874 (10,000) -
Downtown Development District - 55,542 55,542 - -
Public library - 1,401,481 1,401,481 - -
Other agencies 583 80,525 88,484 (9,999) 2,623
Total other agencies 583 4,548,422 4,566,381 (19,999) 2,623
Education
Regular 2,630,261 42,802,562 41,948,140 - 3,484,683
Adult education 97,600 508,170 448,113 - 157,657
School lunch 179,746 1,416,772 1,398,588 - 197,930
Special revenue 23,370 2,637,133 2,657,813 - 2,690
Trust and agency 195,447 1,118,900 1,129,310 - 185,037
Total education 3,126,424 48,483,537 47,581,964 - 4,027,997
Other appropriations
Pensions and other fringe benefits - 2,206,898 2,149,269 57,629 -
Debt service - 2,754,485 2,753,492 993 -
Tax increment financing payments - 897,850 922,264 (24,414) -
Total other appropriations - 5,859,233 5,825,025 34,208 -
Total expenditures 3,137,007 95,987,691 94,237,954 856,124 4,030,620
Excess (deficiency) of revenues
over/under expenditures (3,137,007) (864,110) 2,454,501 2,224,766 4,230,852
II - 61
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, 2014
Balances Variance
Carried
7/1/2013 Budget Actual Surplus Carried
Other financing sources (uses)
Appropriation from restricted, committed
and assigned fund balances - 1,480,760 68,339 - (1,412,421)
Appropriation from unassigned fund balance - 91,350 - (91,350) -
Appropriation to assigned fund balances - - (288,450) (288,450) -
Sale of assets - 21,500 53,253 31,753 -
Contributions - - 485 485 -
Insurance Settlements - 23,500 53,192 29,692 -
Transfers to other funds - (780,000) (830,000) (50,000) -
Transfers from other funds - 27,000 21,113 (5,887) -
Total other financing sources (uses)- 864,110 (922,068) (373,757) (1,412,421)
Net change in unassigned fund balance (3,137,007)$ -$ 1,532,433$ 1,851,009 2,818,431$
Unassigned fund balance, beginning of year 7,727,014
Changes in amounts required to be shown as nonspendable fund balance
Inventory and prepaids 20,449
Unassigned fund balance, end of year 9,598,472$
II - 62
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.
Schedule B-1
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Governmental FundsJune 30, 2014
Nonmajor
Special Nonmajor Total Other
Revenue Permanent Governmental
Funds Funds Funds
ASSETS
Cash and cash equivalents $1,063,738 -$ 1,063,738$
Investments - 128,797 128,797
Receivables:
Accounts 31,319 - 31,319
Loans /Notes 1,041,529 898,687 1,940,216
Intergovernmental 194,059 - 194,059
Total assets $2,330,645 1,027,484$ 3,358,129$
LIABILITIES
Accounts payable $21,418 -$ 21,418$
Interfund loans payable 177,830 - 177,830
Total liabilities 199,248 - 199,248
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - loans 160,000 - 160,000
Total deferred inflows of resources 160,000 - 160,000
FUND BALANCES
Nonspendable - 544,200 544,200
Restricted 1,971,397 483,284 2,454,681
Total fund balances 1,971,397 1,027,484 2,998,881
Total liabilities, deferred inflows of
resources and fund balances $2,330,645 1,027,484$ 3,358,129$
II - 63
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, 2014
Nonmajor
Special Nonmajor Total Other
Revenue Permanent Governmental
Funds Funds Funds
Revenues
Taxes $814,460 -$ 814,460$
Intergovernmental 6,957,554 - 6,957,554
Charges for services 811,606 - 811,606
Program income 12,325 - 12,325
Revenue from use of money and property 77,769 - 77,769
Other revenue 70,522 4,800 75,322
Interest revenue - 43,650 43,650
Total revenues 8,744,236 48,450 8,792,686
Expenditures
Current:
Personnel 1,179,851 - 1,179,851
Payments to beneficiaries 824,991 - 824,991
Other 3,739,966 - 3,739,966
Bus operations 2,801,667 - 2,801,667
Program expenditures - 27,846 27,846
Total expenditures 8,546,475 27,846 8,574,321
Excess of revenues over expenditures 197,761 20,604 218,365
Other financing sources (uses)
Transfers to other funds - (35,000) (35,000)
Transfers from other funds 49,141 437 49,578
Total other financing sources (uses)49,141 (34,563) 14,578
Net change in fund balances 246,902 (13,959) 232,943
Fund balances, beginning of year 1,724,495 1,041,443 2,765,938
Fund balances, end of year $1,971,397 1,027,484$ 2,998,881$
II - 64
Schedule B-3
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Special Revenue FundsJune 30, 2014
Dedicated
Other Grant Revenue
HUD Funds Fund Funds Other Totals
ASSETS
Cash and cash equivalents 360,606$ 7,969$ 480,602 214,561$ 1,063,738$
Receivables:
Accounts - 31,319 - - 31,319
Loans/Notes 160,000 - 328,639 552,890 1,041,529
Intergovernmental - 194,059 - - 194,059
Total assets 520,606$ 233,347$ 809,241$ 767,451$ 2,330,645$
LIABILITIES
Accounts payable -$ 13,577$ -$ 7,841$ 21,418$
Interfund loans payable - 177,830 - - 177,830
Total liabilities - 191,407 - 7,841 199,248
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - loans 160,000 - - - 160,000
Total deferred inflows of resources 160,000 - - - 160,000
FUND BALANCES
Restricted 360,606 41,940 809,241 759,610 1,971,397
Total fund balances 360,606 41,940 809,241 759,610 1,971,397
Total liabilities, deferred inflows of
resources and fund balances 520,606$ 233,347$ 809,241$ 767,451$ 2,330,645$
II - 65
Schedule B-4
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue FundsFor the Fiscal Year Ended June 30, 2014
Dedicated
Other Grant Revenue
HUD Funds Fund Funds Other Totals
Revenues
Taxes -$ -$ -$ 814,460$ 814,460$
Intergovernmental - 6,957,554 - - 6,957,554
Charges for services - 811,606 - - 811,606
Program income 12,325 - - - 12,325
Revenue from use of money and property - - 58,480 19,289 77,769
Contributions - - 6,535 63,987 70,522
Total revenues 12,325 7,769,160 65,015 897,736 8,744,236
Expenditures
Current:
Personnel - 1,179,851 - - 1,179,851
Payments to beneficiaries - - 5,873 819,118 824,991
Other - 3,739,966 - - 3,739,966
Bus operations - 2,801,667 - - 2,801,667
Total expenditures - 7,721,484 5,873 819,118 8,546,475
Excess (deficiency) of revenues
over (under) expenditures 12,325 47,676 59,142 78,618 197,761
Other financing sources
Transfers from other funds - - 49,141 - 49,141
Total other financing sources (uses)- - 49,141 - 49,141
Net change in fund balances 12,325 47,676 108,283 78,618 246,902
Fund balances, beginning of year 348,281 (5,736) 700,958 680,992 1,724,495
Fund balances, end of year 360,606$ 41,940$ 809,241$ 759,610$ 1,971,397$
II - 66
Schedule B-5
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Permanent FundsJune 30, 2014
Revolving
Other Loan
Funds Funds Totals
ASSETS
Investments -$ 128,797$ 128,797$
Loans receivable 898,687 - 898,687
Total assets 898,687 128,797$ 1,027,484$
LIABILITIES AND
FUND BALANCES
Liabilities -$ -$ -$
Total liabilities -$ -$ -$
Fund balances
Nonspendable 415,403 128,797 544,200
Restricted 483,284 - 483,284
Total fund balances 898,687 128,797 1,027,484
Total liabilities and and fund balances 898,687$ 128,797$ 1,027,484$
II - 67
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, 2014
Revolving
Other Loan
Funds Funds Totals
Revenues
Investment income $36,423 7,227$ 43,650$
Lot sales 4,800 - 4,800
Total revenues 41,223 7,227 48,450
Expenditures
Current:
Payments to beneficiaries 89 27,757 27,846
Total expenditures 89 27,757 27,846
Excess (deficiency) of revenues
over (under) expenditures 41,134 (20,530) 20,604
Other financing sources (uses)
Transfer to other funds (35,000) - (35,000)
Transfer from other funds 437 - 437
Total other financing source (uses)(34,563) - (34,563)
Net change in fund balances 6,571 (20,530) (13,959)
Fund balances, beginning of year 892,116 149,327 1,041,443
Fund balances, end of year $898,687 128,797$ 1,027,484$
II - 68
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.
Schedule C-1
CITY OF BANGOR, MAINE
Combining Statement of Net Position
Nonmajor Proprietary Funds
June 30, 2014
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 477$ 1,133$ 75$ 391,255$ 522,744$ 915,684$
Accounts receivable - 236,819 16,820 1,056 - 254,695
Total current assets 477 237,952 16,895 392,311 522,744 1,170,379
Noncurrent assets
Capital Assets:
Land and improvements 295,025 - 3,634,485 - 1,594,732 5,524,242
Buildings and improvements 1,933,061 - 4,318,516 - 912,607 7,164,184
Machinery and equipment 22,952 - - - 305,859 328,811
Infrastructure - - 683,189 - - 683,189
Parking structures - - - 11,317,169 - 11,317,169
2,251,038 - 8,636,190 11,317,169 2,813,198 25,017,595
Less accumulated depreciation (1,721,812) - (1,866,564) (8,626,429) (1,835,801) (14,050,606)
Net capital assets 529,226 - 6,769,626 2,690,740 977,397 10,966,989
Loans receivable - - 1,490,343 - - 1,490,343
Deposits 20,000 - - - - 20,000
Total noncurrent assets 549,226 - 8,259,969 2,690,740 977,397 12,477,332
Total assets 549,703 237,952 8,276,864 3,083,051 1,500,141 13,647,711
Continued on next page
II - 69
Schedule C-1 (con't)
CITY OF BANGOR, MAINE
Combining Statement of Net Position
Nonmajor Proprietary Funds
June 30, 2014
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 36,718 11,758 1,700 1,586 20,072 71,834
Accrued wages and benefits payable 1,986 1,888 - 3,356 9,969 17,199
Accrued interest - - 58,599 11,590 3,887 74,076
Workers' compensation - - - 3,665 - 3,665
Interfund loans payable 330,500 89,000 752,900 - - 1,172,400
General obligation debt payable - 74,133 238,595 207,765 34,302 554,795
Accrued compensated absences 4,379 - - 8,743 11,939 25,061
Total current liabilities 373,583 176,779 1,051,794 236,705 80,169 1,919,030
Long-term liabilities
Workers' compensation - - - 6,335 - 6,335
General obligation debt payable - 1,063,556 2,722,056 1,499,692 399,243 5,684,547
Accrued compensated absences 7,003 - - 1,390 14,540 22,933
Net OPEB obligation 8,091 - - 11,575 21,693 41,359
Other long-term liabilities 193,061 - - 20,345 - 213,406
Total long-term liabilities 208,155 1,063,556 2,722,056 1,539,337 435,476 5,968,580
Total liabilities 581,738 1,240,335 3,773,850 1,776,042 515,645 7,887,610
NET POSITION
Net investment in capital assets 529,226 - 3,808,975 1,130,127 621,830 6,090,158
Unrestricted (561,261) (1,002,383) 694,039 176,882 362,666 (330,057)
Total net position (32,035)$ (1,002,383)$ 4,503,014$ 1,307,009$ 984,496$ 5,760,101$
Continued from previous page
II - 70
Schedule C-2
Economic Municipal Total
Park Stormwater Development Parking Golf Nonmajor
Woods Utility Fund Fund Course Proprietary Funds
Operating revenues
Charges for services 440,295$ 359,029$ 515,339$ 1,002,164$ 575,020$ 2,891,847$
Operating expenses
Operating expenses other than
depreciation and amortization 408,710 149,590 302,100 602,503 547,416 2,010,319
Depreciation and amortization 89,123 - 184,498 268,315 76,371 618,307
Total operating expenses 497,833 149,590 486,598 870,818 623,787 2,628,626
Operating income (loss)(57,538) 209,439 28,741 131,346 (48,767) 263,221
Nonoperating revenue (expenses)
Interest income - - 63,572 - 324 63,896
Interest expense - - (141,654) (54,777) (19,536) (215,967)
Total nonoperating revenue (expenses)- - (78,082) (54,777) (19,212) (152,071)
Net income (loss) before grants/contributions and transfers (57,538) 209,439 (49,341) 76,569 (67,979) 111,150
Grants/contributions received for capital assets - - - - - -
Change in net position (57,538) 209,439 (49,341) 76,569 (67,979) 111,150
Net position, beginning of year (Restated See Note H)25,503 (1,211,822) 4,552,355 1,230,440 1,052,475 5,648,951
Net position, end of year (32,035)$ (1,002,383)$ 4,503,014$ 1,307,009$ 984,496$ 5,760,101$
Business-type Activities - Enterprise Funds
Nonmajor Proprietary FundsFor the Fiscal Year Ended June 30, 2014
CITY OF BANGOR, MAINECombining Statement of Revenues, Expenses and Changes in Net Position
II - 71
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 441,555$ 122,210$ 521,854$ 1,002,164$ 575,020$ 2,662,803$
Cash paid to suppliers for goods and services (358,761) (62,427) (309,394) (434,623) (220,587) (1,385,792)
Cash paid to employees for services (42,257) (73,517) - (165,063) (314,672) (595,509)
Net cash provided by (used in)
operating activities 40,537 (13,734) 212,460 402,478 39,761 681,502
Cash flows from noncapital financing activities
Interfund loans (repayments)(40,500) 89,000 72,100 - - 120,600
Net cash (used in) noncapital
financing activities (40,500) 89,000 72,100 - - 120,600
Cash flows from capital and related financing activities
Principal paid on general obligation bonds - (74,133) (231,207) (199,818) (34,617) (539,775)
Interest paid on general obligation bonds - - (143,025) (55,807) (19,829) (218,661)
Net cash (used in) capital and related
financing activities - (74,133) (374,232) (255,625) (54,446) (758,436)
Cash flows from investing activities
Interest on investments - - 89,712 117 324 90,153
Net cash provided by investing activities - - 89,712 117 324 90,153
Net increase (decrease) in cash 37 1,133 40 146,970 (14,361) 133,819
Cash, beginning of year 440 - 35 244,285 537,105 781,865
Cash, end of year 477$ 1,133$ 75$ 391,255$ 522,744$ 915,684$
For the Fiscal Year Ended June 30, 2014
Business-type Activities - Enterprise Funds
CITY OF BANGOR, MAINECombining Statement of Cash Flows - Nonmajor Proprietary Funds
Continued on next page
II - 72
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 operating activities
Operating income (loss)(57,538)$ 209,439$ 28,741$ 131,346$ (48,767)$ 263,221$
Adjustments to reconcile operating income (loss)
to net cash provided by operating
activities
Depreciation and amortization 89,123 - 184,498 268,315 76,371 618,307
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 1,260 (236,819) 6,515 - - (229,044)
Increase (decrease) in accounts payable 7,323 11,758 (7,294) 1,277 4,628 17,692
Increase (decrease) in unearned revenue - - - - - -
Increase (decrease) in other liabilities 369 1,888 - 1,540 7,529 11,326
Total adjustments 98,075 (223,173) 183,719 271,132 88,528 418,281
Net cash provided by (used in)
operating activities 40,537$ (13,734)$ 212,460$ 402,478$ 39,761$ 681,502$
Business-type Activities - Enterprise Funds
CITY OF BANGOR, MAINE
Combining Statement of Cash Flows - Nonmajor Proprietary Funds
For the Fiscal Year Ended June 30, 2014
Continued from previous page
II - 73
Schedule C-4
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Sewer Utility Fund - Enterprise FundFor the Fiscal Year Ended June 30, 2014
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 7,975,494$ 7,664,776$ (310,718)$
Interest and other revenue 35,000 42,882 7,882
Total revenues 8,010,494 7,707,658 (302,836)
Expenditures and encumbrances
Salaries 1,305,764 1,212,477 93,287
Fringe benefits 415,993 358,613 57,380
Supplies and materials 482,965 330,194 152,771
Contractual services 1,526,068 1,188,135 337,933
Utilites 828,180 745,554 82,626
Interfund charges 910,280 517,925 392,355
Miscellaneous 27,795 17,053 10,742
Debt service 1,897,491 1,871,053 26,438
Depreciation 1,691,486 1,750,496 (59,010)
Outlay 463,970 259,198 204,772
Total expenditures and encumbrances 9,549,992 8,250,698 1,299,294
Deficiency of revenues underexpenditures and encumbrances (1,539,498)$ (543,040)$ 996,458$
II - 74
Schedule C-5
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Airport Fund - Enterprise FundFor the Fiscal Year Ended June 30, 2014
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 13,746,112$ 12,567,868$ (1,178,244)$
Interest and other revenue 817,595 591,906 (225,689)
Total revenues 14,563,707 13,159,774 (1,403,933)
Expenditures and encumbrances
Salaries 5,544,489 5,153,917 390,572
Fringe benefits 1,494,392 1,401,499 92,893
Supplies and materials 905,700 791,704 113,996
Contractual services 2,515,620 2,484,526 31,094
Utilities 1,478,869 1,713,761 (234,892)
Interfund charges 744,256 689,710 54,546
Miscellaneous 167,853 88,219 79,634
Debt service 740,379 552,963 187,416
Depreciation 7,550,000 8,062,412 (512,412)
Outlay 810,000 201,851 608,149
Total expenditures and encumbrances 21,951,558 21,140,562 810,996
Deficiency of revenues underexpenditures and encumbrances (7,387,851)$ (7,980,788)$ (592,937)$
II - 75
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, 2014
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 452,800$ 440,295$ (12,505)$
Total revenues 452,800 440,295 (12,505)
Expenditures and encumbrances
Salaries 48,313 29,048 19,265
Fringe benefits 25,035 13,025 12,010
Supplies and materials 450 528 (78)
Contractual services 163,323 124,562 38,761
Utilities 207,000 230,499 (23,499)
Interfund charges 190 50 140
Miscellaneous 7,600 10,446 (2,846)
Depreciation 89,123 89,123 -
Total expenditures and encumbrances 541,034 497,281 43,753
Deficiency of revenues underexpenditures and encumbrances (88,234)$ (56,986)$ 31,248$
II - 76
Schedule C-7
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Parking Fund - Enterprise FundFor the Fiscal Year Ended June 30, 2014
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 1,011,507$ 1,002,164$ (9,343)$
Total revenues 1,011,507 1,002,164 (9,343)
Expenditures and encumbrances
Salaries 179,945 134,603 45,342
Fringe benefits 52,039 29,919 22,120
Supplies and materials 6,450 3,615 2,835
Contractual services 398,522 345,681 52,841
Utilities 7,274 - 7,274
Interfund charges 85,770 86,423 (653)
Miscellaneous - 180 (180)
Debt service 255,625 255,625 -
Depreciation 270,000 268,315 1,685
Outlay 26,500 - 26,500
Total expenditures and encumbrances 1,282,125 1,124,361 157,764
Deficiency of revenues underexpenditures and encumbrances (270,618)$ (122,197)$ 148,421$
II - 77
Schedule C-8
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Bass Park Fund - Enterprise Fund
For the Fiscal Year Ended June 30, 2014
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 4,485,954$ 4,445,997$ (39,957)$
Downtown TIF 750,000 750,000 -
Total revenues 5,235,954 5,195,997 (39,957)
Expenditures and encumbrances
Cross Insurance Center operations 3,014,620 2,753,004 261,616
Owner costs 45,000 116,721 (71,721)
Debt service 2,117,903 2,117,902 1
Depreciation 1,710,000 1,574,826 135,174
Total expenditures and encumbrances 6,887,523 6,562,453 325,070
Deficiency of revenues under
expenditures and encumbrances (1,651,569)$ (1,366,456)$ 285,113$
II - 78
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, 2014
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 665,500$ 575,020$ (90,480)$
Interest and other revenue 1,500 324 (1,176)
Total revenues 667,000 575,344 (91,656)
Expenditures and encumbrances
Salaries 304,058 270,525 33,533
Fringe benefits 44,626 42,065 2,561
Supplies and materials 60,050 65,334 (5,284)
Contractual services 50,400 50,679 (279)
Utilities 68,458 51,246 17,212
Interfund charges 60,849 57,876 2,973
Miscellaneous - 80 (80)
Debt service 53,553 54,446 (893)
Depreciation 82,112 76,371 5,741
Outlay 25,000 - 25,000
Total expenditures and encumbrances 749,106 668,622 80,484
Deficiency of revenues under
expenditures and encumbrances (82,106)$ (93,278)$ (11,172)$
II - 79
Schedule C-10
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Encumbrances
Budget and Actual - Budgetary Basis
Economic Development Fund - Enterprise Fund
For the Fiscal Year Ended June 30, 2014
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 426,123$ 515,339$ 89,216$
Interest and other revenue 90,507 90,494 (13)
Total revenues 516,630 605,833 89,203
Expenditures and encumbrances
Contractual services 188,150 174,859 13,291
Utilities 96,060 125,531 (29,471)
Interfund charges - 1,115 (1,115)
Miscellaneous 1,537 595 942
Debt service 378,614 374,233 4,381
Depreciation 184,498 184,498 -
Outlay 5,000 - 5,000
Total expenditures and encumbrances 853,859 860,831 (6,972)
Deficiency of revenues under
expenditures and encumbrances (337,229) (254,998)$ 82,231$
II - 80
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, 2014
Variance
Positive
Budget Actual (Negative)
Revenues
Charges for services 1,050,784$ 359,029$ (691,755)$
Interest and other revenue 105,006 - (105,006)
Total revenues 1,155,790 359,029 (796,761)
Expenditures and encumbrances
Salaries 57,033 58,759 (1,726)
Fringe benefits 16,698 16,646 52
Supplies and materials 4,150 - 4,150
Contractual services 231,800 58,481 173,319
Interfund charges 336,139 526 335,613
Miscellaneous 2,080 2,029 51
Debt service 78,140 77,840 300
Outlay 429,750 9,442 420,308
Total expenditures and encumbrances 1,155,790 223,723 932,067
Excess (deficiency) of revenues over (under)
expenditures and encumbrances -$ 135,306$ 135,306$
II - 81
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.
Schedule D-1
CITY OF BANGOR, MAINE
Statement of Changes in Assets and Liabilities
Agency Fund
For the Fiscal Year Ended June 30, 2014
Balance Balance
July 1, 2013 Additions Deletions June 30, 2014
ASSETS
Cash:
Bangor Area Stormwater Group 18,260$ 29,014$ 47,274$ -$
School Activity Funds 118,261 206,556 204,369 120,448
Total assets 136,521$ 235,570$ 251,643$ 120,448$
LIABILITIES
Funds held for others:
Bangor Area Stormwater Group 18,260$ 29,014$ 47,274$ -$
School Activity Funds 118,261 206,556 204,369 120,448
Total liabilities 136,521$ 235,570$ 251,643$ 120,448$
II - 82
CAPITAL ASSETS USED
IN THE OPERATION
OF GOVERNMENTAL FUNDS
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, 2014
Balance Balance
Function and Activity 2013 Additions Deletions 2014
General government
BAT community connector 2,315,767$ -$ 271,374$ 2,044,393$
Central service 13,565 16,000 5,467 24,098
City hall 595,630 - 24,181 571,449
Community and economic development 10,345,330 - 441,488 9,903,842
Engineering 25,041 - 6,921 18,120
Information services 225,424 150,492 180,765 195,151
Motor pool 3,745,854 722,810 834,207 3,634,457
Other - unclassified 182,058 - 65,798 116,260
Total general government 17,448,669 889,302 1,830,201 16,507,770
Public safety
Fire 5,071,673 727,945 472,071 5,327,547
Police 10,096,955 165,438 390,215 9,872,178
Total public safety 15,168,628 893,383 862,286 15,199,725
Health, community services and recreation
Parks and recreation 2,061,822 492,929 81,663 2,473,088
Total health, community services and recreation 2,061,822 492,929 81,663 2,473,088
Public building and services
Public works 12,969,341 724,034 475,381 13,217,994
Total public buildings and services 12,969,341 724,034 475,381 13,217,994
Education 28,993,509 2,502,490 1,093,505 30,402,494
Total governmental fund capital assets 76,641,969$ 5,502,138$ 4,343,036$ 77,801,071$
II - 83
OTHER INFORMATION
Schedule F-1
CITY OF BANGOR, MAINE
Assessed Valuation, Commitment and Collections
For the Fiscal Year Ended June 30, 2014
VALUATION
Land and buildings 2,306,517,400$
Land and buildings - Homestead exemption 52,765,500
Personal property 244,302,800
Personal property - BETE exemption 72,600,700
Total valuation 2,676,186,400$
COMMITMENT
Real estate, personal property (excludes Homestead and BETE exemptions)2,550,820,200$
Tax rate 0.02080
Total commitment 53,057,060
ADD
Supplemental taxes committed 20,933
53,077,993
LESS
Collections 2014 51,692,178
Abatements 43,339
2014 taxes receivable at June 30, 2014 1,342,476$
II - 84
Schedule F-2
CITY OF BANGOR, MAINE
General Fund Unassigned Fund Balance Sufficiency Calculation
For the Fiscal Year Ended June 30, 2014
It is the policy of the City to maintain a General Fund unassigned fund balance approximately
8.33% of operating expenditures. The following table sets forth the calculation as to the
sufficiency of the June 30, 2014 General Fund unassigned fund balance.
General Fund expenditures/uses ( Schedule A-2)
General government 4,982,683$
Public safety 16,410,045
Health, community services and recreation 4,824,616
Public buildings and services 10,047,240
Other agencies 4,566,381
Education 47,581,964
Other appropriations 5,825,025
Other uses, gross*830,000
Gross expenditures and uses 95,067,954
General Fund debt service 6,861,825
Net expenditures and uses 88,206,129$
Indicated unassigned fund balance @ 8.33%7,347,571$
Actual unassigned fund balance (Schedule A-2)9,598,472$
Actual unassigned fund balance as a percentage
of net expenditures and uses 10.88%
Over (under) funded status 2,250,901$
* excludes amounts appropriated from unassigned fund balance
II - 85
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.
Table 1
Fiscal Year
2011 2012 2013 2014
Governmental activities:Net investment in capital assets 40,176,260$ 67,253,588$ 54,540,288$ 49,674,874$
Restricted 1,019,806 1,039,248 1,041,443 1,027,484
Unrestricted 262,217 (24,620,719) (21,336,473) (19,247,642)
Total governmental activities net position 41,458,283 43,672,117 34,245,258 31,454,716
Business-type activities:
Net investment in capital assets 155,344,528 152,749,709 165,548,784 159,871,743
Unrestricted 15,549,352 12,823,198 4,879,657 8,382,617
Total business-type activities net position 170,893,880 165,572,907 170,428,441 168,254,360
Primary government:
Net investment in capital assets 195,520,788 220,003,297 220,089,072 209,546,617
Restricted 1,019,806 1,039,248 1,041,443 1,027,484
Unrestricted 15,811,569 (11,797,521) (16,456,816) (10,865,025)
Total primary government net position 212,352,163$ 209,245,024$ 204,673,699$ 199,709,076$
Only four years have been presented because 2011 was the year GASB Statement No. 54 was implemented.
(accrual basis of accounting)
Last Ten Fiscal Years
Net Position by Component
CITY OF BANGOR, MAINE
III - 1
Table 2
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Expenses
Governmental activities:
General government 6,435,386$ 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$
Public safety 12,478,326 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 Health, community services and recreation 4,000,249 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
Public services**7,609,989 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
Other agencies 3,514,658 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
Education 42,659,395 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
Unclassified 65,639 947,025 1,136 - - - - - - - Restricted grants*7,326,307 - - - - - - - - -
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
Waterfront - 990,961 399,015 1,754,281 9,252,263 79,911 1,439,065 606,249 381,437 272,857
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 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
Interest on debt 3,166,250 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
Capital maintenance expenses*1,674,034 - - - - - - - - -
Total governmental activities expenses 88,930,233 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
Business-type activities:
Sewer Utility 5,859,588 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
Airport 16,368,681 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
Park Woods 598,854 540,207 678,867 678,867 590,250 529,610 496,478 533,671 473,289 497,833
Stormwater Utility - - - - - - - - - 149,590 Parking 1,425,508 1,322,138 1,438,125 1,438,125 1,374,909 1,402,922 1,206,989 995,631 972,327 925,595
Bass Park 1,889,215 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
Municipal Golf Course 592,323 647,499 695,969 695,969 745,339 733,380 664,311 671,113 687,317 643,323
Economic Development 397,881 484,264 695,851 695,851 712,195 634,764 618,980 615,816 586,140 628,252
Total business-type activities expenses 27,132,050 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
Total primary government expenses 116,062,283$ 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$
* - Amounts previously reported as restricted grants and capital maintenance expenses have been classified
into new functions beginning in 2006.** - Amounts previously reported as infrastructure have been reclassified as public services to conform with current year presentation.
(accrual basis of accounting)Last Ten Fiscal YearsChanges in Net Position
CITY OF BANGOR, MAINE
Continued on next page
III - 2
Table 2 (con't)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Program Revenues
Governmental activities:
Charges for services
General government 1,447,058$ 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$ Public safety 1,908,000 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
Health, community services and recreation 674,364 756,207 681,583 771,254 768,450 836,689 928,307 1,048,707 1,139,382 1,164,090
Public services 3,766,334 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
Other agencies - - - 22,243 22,068 - 20,248 103,560 - 46,882
Education 4,549,286 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 Unclassified 20,036.00 859,682 61,128.00 - - - - - - -
Restricted grants*1,079,690 - - - - - - - - -
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
Community development - 672,459 658,141 297,394 301,019 332,295 323,494 588,587 474,013 994,546
Public transportation - 536,491 659,960 809,531 944,804 923,433 1,025,080 1,023,717 1,045,793 816,819 Tax increment financing - - - - 1,711 - - - - -
Operating grants and contributions 25,986,614 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
Capital grants and contributions 4,117,072 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
Total governmental activities program revenues 43,548,454 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
Business-type activities:
Charges for services
Sewer Utility 5,970,615 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
Airport 11,527,061 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
Park Woods 310,389 287,452 340,494 340,494 369,478 371,832 372,715 397,426 417,407 440,295 Stormwater Utility - - - - - - - - - 359,029
Parking 943,990 963,697 1,001,697 1,001,697 997,111 1,050,579 1,057,710 1,012,109 960,947 1,002,164
Bass Park 1,238,707 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
Municipal Golf Course 586,956 604,365 655,834 655,834 608,930 658,053 643,501 628,869 592,825 575,020
Economic Development 433,694 391,658 422,716 422,716 569,549 507,867 585,785 409,486 462,033 515,339 Capital grants and contributions 7,749,367 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
Total business-type activities program revenues 28,760,779 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
Total primary government program revenues 72,309,233$ 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$
* - Amounts previously reported as restricted grants have been classified into new functions beginning in 2006.
(accrual basis of accounting)Last Ten Fiscal YearsChanges in Net Position
CITY OF BANGOR, MAINE
Continued on next page
III - 3
Table 2 (con't)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Net (expense)/revenueGovernmental activities (45,381,779)$ (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)$ Business-type activities 1,628,729 (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)
Total primary government expense (43,753,050) (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)
General revenues and other changes in net positionGovernmental activities:Property taxes 40,302,810 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 Payment in lieu of taxes 186,500 160,457 145,000 122,510 141,595 117,770 161,879 156,629 95,620 161,438 Excise taxes 4,358,409 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 Franchise taxes 265,598 274,986 296,566 300,768 322,526 348,163 367,672 372,542 362,088 350,014 Unrestricted grants and contributions 4,487,931 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 Unrestricted investment earnings 519,225 699,417 1,183,796 1,274,939 874,824 673,295 565,326 530,631 57,620 510,429 Indirect cost charges 472,056 - - - - - - - - - Miscellaneous 8,353 32,550 260,733 161,439 93,967 135,849 92,379 16,698 112,060 1,863 Transfers (837,806) (861,290) (871,864) (539,088) (739,179) 761,103 (637,898) (417,042) (8,772,781) (3,170,717) Total governmental activities 49,763,076 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
Business-type activities:Property taxes - - - - - - - - - 750,000 Unrestricted investment earnings 895,064 635,454 1,346,799 1,326,787 1,025,098 1,035,753 752,891 543,493 345,932 504,584 Gain/loss on sale of asset - - - - - - - - (260,857) - Transfers 837,806 861,290 539,088 539,088 739,179 (761,103) 637,898 417,042 8,772,781 3,170,717 Total business-type activities 1,732,870 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
Total primary government 51,495,946 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
Change in net positionGovernmental activities 4,381,297 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) Business-type activities 3,361,599 (1,609,572) 129,303 (835,451) (238,823) 1,976,943 (2,256,880) (5,320,973) 4,855,534 (2,174,081)
Total primary government 7,742,896$ 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)$
Changes in Net PositionCITY OF BANGOR, MAINE
(accrual basis of accounting)Last Ten Fiscal Years
Continued from previous pageIII - 4
Table 3
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Tax Revenues
Property taxes 40,302,810$ 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$ Excise taxes 4,358,409 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 Franchise taxes 265,598 274,986 296,566 300,768 322,526 348,163 367,672 372,542 362,088 350,014
Total tax revenues 44,926,817$ 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$
CITY OF BANGOR, MAINE
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years(accrual basis of accounting)
III - 5
Table 4
Fiscal Year
2011 2012 2013 2014
General Fund:
Nonspendable
Advances to other funds 1,900,500$ 1,900,500$ 1,900,500$ 1,900,500$
Inventory and prepaid items 963,770 860,187 873,714 853,265
Restricted
Education purposes 1,213,508 936,158 186,871 974,012
Municipal purposes 405,119 349,362 288,519 288,857
Committed - municipal purposes 19,033 373,753 10,583 2,623
Assigned
Encumbrances 1,389,501 1,548,268 777,788 31,347
Municipal purposes 3,115,199 3,240,838 3,415,627 3,386,444
Unassigned 8,017,940 7,563,658 7,727,014 9,598,472 Total general fund 17,024,570$ 16,772,724$ 15,180,616$ 17,035,520$
All other governmental funds:
Nonspendable
Permanent Fund Principal 608,710$ 588,515$ 574,492$ 544,200$
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
Nonmajor Permanent Funds 410,337 449,974 466,951 483,284
Committed
Arena Fund 6,690,287 - 2,761,541 1,051,134
Assigned
Capital Project Fund 826,179 - 4,426,655 4,868,248
Capital Project Fund Encumbrances - 1,853,043 127,712 -
Unassigned
Community Development Block Grant - - - (3,275)
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$
Only four years have been reported because 2011 was the year GASB 54 was implemented.
(modified accrual basis of accounting)Last Ten Fiscal YearsFund Balances of Governmental Funds
CITY OF BANGOR, MAINE
III - 6
Table 5
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenues:
Taxes:
Property taxes 40,586,129$ 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$
Excise taxes 4,358,409 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
Total tax revenues 44,944,538 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
Intergovernmental 34,484,238 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
Licenses and permits 655,745 538,534 982,879 956,965 644,621 633,339 601,202 948,267 576,559 1,389,717
Charges for services 12,160,573 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
Program income 409,153 663,269 657,987 296,325 288,677 329,800 314,203 575,460 462,380 765,142
Revenue from money and property 1,255,959 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
Other 168,452 526,360 279,261 7,691,463 428,220 1,108,213 279,426 561,118 165,686 156,659
Total revenues 94,078,658 100,575,283 102,730,339 115,795,574 111,636,860 118,783,487 118,086,495 113,543,950 111,981,352 116,382,598
Expenditures:
General government**4,732,331 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
Public safety 12,352,418 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
Health, community services and recreation 3,865,578 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
Public buildings and services 8,301,848 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
Other agencies 3,514,658 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
Education 42,228,691 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
Tax increment financing - - - - 215,483 432,033 165,133 524,013 550,308 632,364
Unclassified 65,639 263,702 597,262 166,994 63,115 54,451 118,216 260,685 2,323,972 590,627
Restricted grants 7,282,380 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
Capital outlay*8,681,772 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
Debt service
Principal 4,110,250 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
Interest 3,120,028 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
Other charges 37,467 5,070 4,850 299 6,000 61,952 45,988 - - -
Total expenditures 98,293,060 105,128,079 105,494,409 107,803,445 117,915,974 136,109,989 120,178,741 154,067,144 138,988,201 121,466,626
Excess (deficiency) of revenues over (under) expenditures (4,214,402) (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)
Other financing sources/(uses)
Issuance of debt 2,650,000 4,333,000 3,555,000 - 3,100,000 3,100,000 2,086,100 30,659,143 10,378,985 8,369,000
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 106,895 120,479 320,034 161,439 104,620 135,849 117,558 84,507 186,709 187,760
Transfers to other funds (3,131,050) (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)
Transfers from other funds 2,293,244 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
Total other financing sources 1,919,089 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
Net change in fund balances (2,295,313)$ (960,607)$ 239,100$ 7,614,480$ 3,278,255$ (3,732,910)$ (526,486)$ (10,196,586)$ (28,242,720)$ 435,567$
Debt service as a percentage of noncapital expenditures 8.22%6.08%7.74%4.26%4.00%11.14%5.52%7.97%19.35%4.46%
* - 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 - 7
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
2005 990,170,000 618,388,000 259,687,300 1,868,245,300 20.97
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
*It is City policy to assess at 100% of estimated actual value.
¹Personal Property consists of machinery and equipment.
Real Property
III - 8
Table 7
CITY OF BANGOR, MAINE
Property Tax Rate - Direct and Overlapping Governments
Last Ten Fiscal Years
General General Total
Fiscal City Fund Debt Direct Penobscot Total Tax/
Year Government Service Education Tax Rate County (Mill) Rate
2005 8.20 1.18 11.59 20.97 1.08 22.05
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
III - 9
Table 8
CITY OF BANGOR, MAINE
Principal Property Taxpayers *Current Year and Nine Years Ago
2014 2005
Assessed % of Total Assessed % of Total
Taxpayer Business Value Rank Tax Base Value Rank Tax Base
GLP Capital L.P.Gaming 92,856,800$ 1 3.57%- -
General Electric Manufacturer 61,780,400 2 2.37%43,956,100$ 2 2.53%
Bangor Mall LLC Shopping mall 60,182,800 3 2.31%- -
Emera Maine Utility 40,649,300 4 1.56%- -
HC Bangor LLC Gaming 21,880,000 5 0.84%- -
Wal Mart Stores Retailer 21,741,000 6 0.84%- -
Bangor Gas Company LLC Utility 18,220,500 7 0.70%- -
GM Realty of Bangor LLC Real estate interests 16,511,400 8 0.63%- -
QV Realty Trust Real estate interests 16,383,900 9 0.63%13,226,100 6 0.76%
Harvest Sunbury Village Retirement Living 15,370,500 10 0.59%- -
BANMAK Associates Shopping mall - - 54,054,100 1 3.11%
Bangor Hydro Electric Utility - - 24,450,900 3 1.40%
Bangor Savings Bank Commercial bank - - 16,867,900 4 0.97%
Eastern Maine Healthcare Medical institution - - 16,073,000 5 0.92%
May Department Stores Retailer - - 11,855,800 7 0.68%
Airport Mall Associates Shopping mall - - 11,659,800 8 0.67%
Cabrel Company Real estate interests - - 11,635,200 9 0.67%
Campanelli Investments Shopping center - - 9,026,100 10 0.52%
Totals 365,576,600$ 14.04%212,805,000$ 12.23%
*Source - City of Bangor Tax Commitment.
III - 10
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
2005 40,474,184 160,117 40,314,067 39,206,172 97.25%1,067,434 40,273,606 99.90%
2006 41,099,990 632,397 40,467,593 39,716,755 98.14%685,216 40,401,971 99.84%
2007 41,990,985 269,636 41,721,349 40,819,923 97.84%842,618 41,662,541 99.86%
2008 44,082,476 341,521 43,740,955 42,847,656 97.96%822,535 43,670,191 99.84%
2009 47,235,370 275,489 46,959,881 45,688,356 97.29%1,163,573 46,851,929 99.77%
2010 48,719,847 588,817 48,131,030 46,205,428 96.00%1,745,935 47,951,363 99.63%
2011 48,362,646 168,932 48,193,714 46,857,606 97.23%1,145,565 48,003,171 99.60%
2012 48,529,834 175,844 48,353,990 47,025,587 97.25%1,073,862 48,099,449 99.47%
2013 49,713,855 134,598 49,579,257 48,276,445 97.37%753,547 49,029,992 98.89%
2014 53,077,993 43,339 53,034,654 51,692,178 97.47%- 51,692,178 97.47%
Collected within the
Fiscal Year of the Levy
CITY OF BANGOR, MAINE
Property Tax Levies and CollectionsLast Ten Fiscal Years
III - 11
Table 10
CITY OF BANGOR, MAINE
Ratios of Outstanding Debt by TypeLast Ten Fiscal Years
Business-type ActivitiesGeneral General Total
Fiscal Obligation Capital Obligation Capital Primary Per Assessed Per PersonalYearBonds/Notes Leases Bonds Leases Government Capita*Value Income*
2005 $59,419,229 - 46,774,080 - 106,193,309 3,412.49 5.68%11.47%
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 $66,518,975 277,728 80,435,523 41,699 147,273,925 4,507.51 5.66%12.84%
*Source: U.S. Census Bureau.
Governmental Activities Ratio of Net Bonded Debt
III - 12
Table 11
CITY OF BANGOR, MAINE
Ratio of Net General Obligation Debt to Assessed Value and
Net General Obligation Debt Per Capita
Last Ten Fiscal Years
Fiscal Assessed Net Bonded Assessed Per
Year Population*Value GO Debt**Value Capita
2005 31,119 1,868,245,300 65,988,998 3.53%2,120.54
2006 31,054 2,059,676,900 66,990,510 3.25%2,157.23
2007 31,749 2,224,048,600 65,725,523 2.96%2,070.16
2008 31,262 2,406,088,800 61,824,071 2.57%1,977.61
2009 31,329 2,544,915,800 60,937,500 2.39%1,945.08
2010 31,450 2,626,761,500 65,369,337 2.49%2,078.52
2011 33,039 2,571,695,000 59,310,719 2.31%1,795.17
2012 33,000 2,576,995,000 81,392,299 3.16%2,466.43
2013 32,963 2,582,230,800 62,727,567 2.43%1,902.97
2014 32,673 2,603,585,700 66,518,975 2.55%2,035.90
*Source: U.S. Census Bureau.
**Net Bonded General Obligation Debt Consists of all non-self supporting general obligation debt.
Ratio of Net Bonded Debt
III - 13
Table 12
CITY OF BANGOR, MAINE
Computation of Direct and Overlapping Debt
June 30, 2014
Percentage Amount
Total Debt Applicable Applicable
Outstanding to Bangor to Bangor
Direct Debt
City of Bangor
General Obligation Bonds 146,954,498$ 100.00%146,954,498$
Overlapping Debt
Penobscot County*-$ -$
Total Debt 146,954,498$ 146,954,498$
* The percentage of overlapping Penobscot County debt is calculated based on the overall
percent of Bangor valuation of total county valuation.
III - 14
Table 13
Total Net Debt Legal Percentage of
Fiscal Debt Applicable to Debt Net Debt to
Year Limit Limit Margin Debt Limit
2005 $279,202,500 106,193,307 173,009,193 38.03%
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 $369,637,500 146,954,498 222,683,002 39.76%
Total State Valuation 2,464,250,000$
Debt Limitation: 15 % of State Valuation 369,637,500
Debt Applicable to Debt Limitation:
General Obligation Bonds:
Municipal 117,011,611
School 17,710,716
Sewer 12,232,171
Total debt applicable to limit 146,954,498
Legal Debt margin 222,683,002$
CITY OF BANGOR, MAINE
Legal Debt Margin InformationLast Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2014
III - 15
Table 14
CITY OF BANGOR, MAINE
Demographic and Economic StatisticsLast Ten Fiscal Years
Median Per Public Unemploy-
Fiscal Household Capita Median School ment
Year Population *Income*Income*Age*Enrollment**Rate ***
2005 31,119 29,740 19,295 36.1 3,989 4.50%
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%
*Source: U.S. Census.
**Source: Bangor School Department.
***Source: Maine Bureau of Labor Statistics.
III - 16
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
Cianbro Corporation Throughout
WalMart Throughout
500-999 Bangor Savings Bank Bangor 500-999 St. Joseph Hospital Bangor
LL Bean Bangor Webber Energy Co Bangor
Microdyne Orono Microdyne Orono
Acadia Hospital Bangor General Electric Corp Bangor
Verso Corp Paper Mill Bucksport Shop & Save Supermarkets Throughout
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 2003
III - 17
Table 16
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function
General government 100 100 100 100 100 100 100 99 97 92
Public safety
Police 93 93 93 93 93 97 97 96 96 96
Fire 91 91 91 91 91 95 95 95 95 91
Health, community services and recreation 49 49 49 49 49 49 47 49 48 46
Public building and services 83 83 81 81 82 82 81 78 78 76
Education 571 573 562 618 618 621 610 580 580 592
Sewer Utility 21 21 21 21 21 21 21 24 24 24
Airport 77 78 83 89 90 86 87 88 93 77
Park Woods 2 2 2 2 2 2 2 2 2 1
Parking 3 3 3 3 3 3 3 3 3 3
Bass Park 9 9 9 7 8 8 7 6 5 -
Municipal Golf Course 3 3 3 9 3 3 3 3 3 3
Totals 1,102 1,105 1,097 1,163 1,160 1,167 1,153 1,123 1,124 1,101
* 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
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Table 17CITY OF BANGOR, MAINE
Operating Indicators by Function*Last Ten Calendar Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
FunctionCode enforcement
Building permits 514 537 550 485 501 427 518 405 453 433
Certificates of occupancy 341 432 446 430 440 341 448 350 361 395
Sign permits 107 115 116 118 103 90 96 70 69 82
Police
Calls for service 23,945 27,052 28,157 32,392 34,329 32,351 30,167 31,640 33,740 36,153
Fire
Calls for service 7,805 7,492 7,992 7,477 7,990 7,357 8,000 9,020 9,044 9,031
Sewer
Treated flow (billions of gallons)2.75 4.23 3.62 3.21 3.89 3.55 2.81 3.10 2.68 2.69
Biosolids (cubic yards)9,280 9,348 9,775 10,043 10,561 10,509 9,046 9,422 8,095 8,757
* Source - City of Bangor Departmental records.
III - 19
Table 18
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function
Public safety
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Vehicles 57 51 52 47 50 54 54 50 48 43
Fire:
Stations 3 3 3 3 3 3 3 3 3 3
Vehicles 20 24 27 28 27 25 25 26 26 26
Public works
Streets (miles)422 422 422 427 429 429 429 431 431 431
Sidewalks (miles)99.6 99.6 99.6 99.6 99.6 99.6 101.4 101.7 101.7 101.7
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 44 47 49
* Source - City of Bangor Departmental records.
CITY OF BANGOR, MAINE
Capital Asset Statistics by Function*
Last Ten Fiscal Years
Fiscal Year
III - 20