2016 CITY OF
BANGOR
MAINE
COMPREHENSIVE
ANNUAL
FINANCIAL
REPORT
FOR
FISCAL
YEAR
JUNE 30, 2016
CITY OF BANGOR, MAINE
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2016
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, 2016
INTRODUCTORY SECTION Page
Letter of Transmittal I - 1
GFOA Certificate of Achievement I - 7
Organizational Chart I - 8
Elected Officials and Principal Administrative Officers I - 9
FINANCIAL SECTION
Report of Independent Auditors II - 1
Management’s Discussion and Analysis II - 4
Basic Financial Statements: Exhibit
Government-wide Financial Statements:
Statement of Net Position 1 II - 18
Statement of Activities 2 II - 19
Fund Financial Statements:
Balance Sheet - Governmental Funds 3 II - 20
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 4 II - 21
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds to the Statement of Activities 5 II - 22
Statement of Revenues, Expenditures and Changes in
Unassigned Fund Balance - Budget and Actual - General Fund 6 II - 23 Statement of Net Position – Proprietary Funds 7 II - 24
Statement of Revenues, Expenses and Changes in
Net Position – Proprietary Funds 8 II - 26 Statement of Cash Flows – Proprietary Funds 9 II - 27
Statement of Fiduciary Net Position – Fiduciary Funds 10 II - 29
Notes to the Financial Statements II - 30
Required Supplementary Information
Schedule of Funding Progress – Retiree Healthcare Plan II – 59
Schedule of City’s Proportionate Share of Net Pension Liability II – 60
Schedule of City’s Contributions II – 61
CITY OF BANGOR, MAINE
Table of Contents, Continued
Schedule Page
Combining and Individual Fund Financial Statements and Schedules: Balance Sheet – General Fund A – 1 II - 62
Schedule of Revenues, Expenditures and Changes in
Unassigned Fund Balance – Budget and Actual – Budgetary Basis – General Fund A – 2 II - 63
Combining Balance Sheet – Nonmajor Governmental Funds B – 1 II - 67
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds B – 2 II - 68
Combining Balance Sheet – Nonmajor Special Revenue Funds B – 3 II - 69
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Special Revenue Funds B – 4 II - 70
Combining Balance Sheet – Nonmajor Permanent Funds B – 5 II - 71
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Permanent Funds B – 6 II - 72
Combining Statement of Net Position – Nonmajor Proprietary Funds C – 1 II - 73
Combining Statement of Revenues, Expenses and
Changes in Net Position – Nonmajor Proprietary Funds C – 2 II - 75
Combining Statement of Cash Flows - Nonmajor Proprietary Funds C – 3 II - 76
Fiduciary Funds:
Statement of Changes in Assets and Liabilities – Agency Funds D – 1 II - 78
Capital Assets Used in the Operation of Governmental Funds:
Schedule of Changes by Function and Activity E – 1 II - 79
Other Information:
Assessed Valuation, Commitment and Collections F – 1 II - 80
General Fund Unassigned Fund Balance Sufficiency Calculation F – 2 II - 81
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
I - 1
FINANCE DEPARTMENT Deborah A. Cyr, Finance Director
(207)992-4260 fax (207)945-4446 debbie.cyr@bangormaine.gov
73 Harlow Street • Bangor, Maine 04401
December 28, 2016
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, 2016 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.
The City is required to undergo an annual single audit in conformity with the
provisions of the U.S. Office of Management and Budget’s Uniform Guidance.
Information related to this single audit, including a schedule of expenditures of
federal awards, findings, questioned costs, recommendations, and the independent
I - 2
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 the MD&A and should be read in
conjunction with it. The City’s MD&A can be found immediately following the
independent auditor’s report.
Profile of the Government
The City of Bangor, which occupies approximately 35 square miles on the western
shore of the Penobscot River, was first settled in 1656, incorporated as a town on
February 25, 1791 and as a city on February 12, 1834. The City of Bangor is the
third largest City in Maine, and serves as the County Seat for Penobscot County. As
a result, Bangor serves as the major trade, distribution, service, and commercial
center for the central, eastern, and northern portions of the State.
Bangor has operated under a Council-Manager Charter, since 1931. The City Council
is composed of nine members who are elected at large for three-year staggered
terms. The Charter grants to the Council all powers to enact, amend, or repeal
rules, ordinances, and resolutions relating to the City’s property, affairs, and
government; to preserve the public peace, health, and safety; to establish personnel
policies; to give effect to any vote of the City; and to authorize the issuance of debt.
The Council adopts an annual budget and provides for an annual audit. The City
Manager is the chief administrative officer of the City and is appointed by the
Council, as are the Assessor, Solicitor, and Clerk.
The City’s schools are governed by a seven-member School Committee. Its
members are elected at large to staggered three-year terms. By Charter, the School
Committee has all the powers and performs all the duties related to the care and
management of the public schools of the City. The Committee annually furnishes to
the City Council an estimate of sums required for school purposes for the ensuing
municipal year. The City Council makes a single gross appropriation for this
purpose, which must be ratified by the voters of Bangor at a referendum held in
June prior to the start of the City’s fiscal year. Once approved, the expenditure of
this appropriation is under the direction and control of the School Committee. The
School Committee employs the Superintendent of Schools as its chief operating
officer.
The City provides a full range of municipal services including police and fire,
highways and sanitation, health and welfare, parks and recreation, education, public
transportation, planning, business and economic development, code enforcement,
I - 3
and general administrative services which are accounted for in the City’s General
Fund. Additionally, the City of Bangor owns and operates the Bangor International
Airport, sanitary sewer services, storm water utility, the Bass Park Complex (Cross
Insurance Center), parking, golf course, and economic development, which are
accounted for in the City’s enterprise funds.
The City’s budgeting process is structured around its fiscal year, which begins on
July 1st and ends on the following June 30th. The City annually adopts budgets for
its General Fund and seven enterprise funds. The City Charter requires that the City
Manager submit a recommended budget to the Council by the second Monday in
April. The budget, which must be in balance, contains estimates of all non-tax
revenues and receipts expected to be received during the next fiscal year, the
expenditures necessary to support City operations, debt service requirements, and
the tax levy required to achieve balance between revenues and expenditures. The
Council may modify recommended expenditures and the recommended tax levy. If
the Council fails to adopt a budget by July 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.
I - 4
Factors Affecting Financial Condition
Local Economy. The City of Bangor is recognized as the major service center in
northern and eastern Maine for communications, banking, commercial, industrial,
healthcare, and governmental sectors of the State. In addition, Bangor serves as
northern New England's economic link to the Canadian Maritimes and eastern
Quebec.
Bangor has a stable and varied economic base. Major employers include a
diversified mix of health care, educational, professional, retail, manufacturing, and
governmental entities. Bangor’s 2016 unemployment rate of 3.8% continues to be
on par with or below both country and state rates of 5.1% and 3.7%, respectively.
Bangor serves as one of the largest retail markets in Maine. The Bangor Mall,
Airport Mall, Broadway commercial center, Union Street commercial corridor, and
the Bangor Center Development District (downtown) have long established Bangor
as the hub of the six county eastern Maine retail market. Bangor's retail sector
serves an extensive geographic area ranging from eastern Maine to the Canadian
Maritimes, with a population exceeding 3.1 million. With less than three percent of
the State’s population, Bangor’s share of the State’s retail sales is proportionally
higher. In FY 2016, Bangor’s retail taxable sales were $1.36 billion and represent
6.6% of total State retail taxable sales.
Further evidence of continuing sustained growth is the change that can be
measured by the City’s assessed value of real and personal property. The annual
increase in assessed value is a combination of three factors: 1) market adjustments
to existing property, 2) new construction/additions, and 3) personal property
depreciation. Assessed valuations have remained relatively flat since the FY 2011
economic downturn. However, personal property enrolled in the Business
Equipment Tax Exempt program (BETE) have more than doubled since FY 2011, an
indication of continued commercial investment within the City. As the City’s
assessed valuation has remained flat, the City also realized significant reductions in
State-funded revenue sharing, aid to education and absorbed additional tax shifts
related to general assistance and Medicare/Medicaid. The City continues to
implement cost control measures wherever identified, including work force
reductions. Despite the cost control measures, the reductions in revenues and cost
shifts are the major contributing factor in the overall increase of 13.14% in the tax
rate from 2007 to 2016.
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.
I - 5
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:
$5.2 million invested in streets, sidewalks, traffic control, and other
infrastructure;
$14 million reconstruction of Bangor International Airport’s domestic air
service terminal;
Additional grant funding for further expansion of C&L Aerospace, which
provides worldwide operators with aircraft parts, service, maintenance, sales
and leasing services;
Continued investment in the City’s core downtown to encourage mixed use
development, including residential, commercial and cultural opportunities;
Improvements to our local environment and protection of natural resources,
including parks and open space, with the major emphasis being storm water
management with the implementation of a storm water utility in order to fund
the associated costs.
The City is proactively addressing quality of life issues and housing opportunities.
Key initiatives to date include:
Participation in the AARP age-friendly community initiative;
Proactive approaches to disruptive and foreclosed properties across
operational areas;
Provided assistance to homeowners and designated neighborhoods through
CDBG funding;
Leadership in the formation and operation of the Community Health
Leadership Board to address community drug and alcohol issues;
Sustained commitment to academic excellence for all;
Energy efficiency rebate program;
Continued support of arts and culture.
Finally, the City continues to implement significant technology and process
improvements to increase the overall organizational efficiency and enhance citizen
communication and engagement.
I - 6
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, 2016 was 12.17% 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, 2015. 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
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Bangor
Maine
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2015
Executive Director/CEO
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
I - 9
City of Bangor, Maine
Elected Officials and Principal Administrative Officers June 30, 2016
City Council
Sean Faircloth, Chair
Joseph Baldacci Nelson Durgin
Gibran Graham David Nealley
Sarah Nichols Joseph Perry
Joshua Plourde Benjamin Sprague
City Staff
Catherine M. Conlow, City Manager
Philip Drew, City Assessor
Lisa Goodwin, City Clerk
Norman Heitmann, City Solicitor
School Committee
Warren Caruso, Chair
Jennifer Degroff Brian Doore
Susan Hawes Susan Sorg
Marlene Susi Jay Ye, Vice Chair School Staff
Betsy Webb, Superintendent of Schools
FINANCIAL SECTION
II-1
Certified Public Accountants and Business Consultants
Independent Auditor’s Report
City Council
City of Bangor, Maine:
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the discretely presented component unit, each major fund, and the aggregate remaining
fund information of the City of Bangor, Maine, as of and for the year ended June 30, 2016,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, 2016, and the respective changes in financial position and,where
applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the schedules of funding progress for the retiree’s health care plan, the
schedule of the City’s proportionate share of the net pension liability, and the schedule of City
contributions, as listed in the table of contents,be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Bangor, Maine’s basic financial statements. The introductory section,
combining and individual fund financial statements, other schedules, and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements.
II-3
City Council
City of Bangor, Maine
The combining and individual fund financial statements and the other schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual fund financial statements and other
schedules are fairly stated,in all material respects,in relation to the basic financial statements as a
whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements,and accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 28,
2016, on our consideration of the City of Bangor, Maine’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering
the City of Bangor, Maine’s internal control over financial reporting and compliance.
December 28, 2016
South Portland, Maine
II - 4
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, 2016. In addition to comparative
information from the government-wide statements, comparative data is also presented on key
information from the fund financial statements. We encourage readers to consider the
information presented here in conjunction with additional information that is furnished in our letter of transmittal, which can be found on pages I-1 to I-6 of this report.
Financial Highlights
The assets and deferred outflows of the City of Bangor exceeded its liabilities and deferred
inflows at the close of the most recent fiscal year by $204.1 million (net position).
At the close of fiscal year 2016, the City of Bangor’s governmental funds reported combined
ending fund balances of $32.0 million, an increase of $5.2 million over the prior year balance of $26.8 million. The Capital Projects Fund fund balance increased by $2.5 million,
due to unexpended current refunding bond proceeds and Downtown TIF funds. Both were
expended and/or appropriated in FY 17. The General Fund fund balance increased by $3.4
million. General Fund revenues exceeded estimates by $3.3 million as follows; excise taxes $1.4 million, intergovernmental revenues $977 thousand, and charges for service $675
thousand. All other governmental fund fund balances remained relatively unchanged from
prior year amounts. Approximately 77% of the total amount, or $24.8 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. At the end of the current fiscal year, unassigned fund
balance for the General Fund was $11.3 million, or 12.17% of the general fund expenditure
base. The annual calculation is included within the financial statements as Schedule F-2.
The total liabilities and deferred inflows of resources of the City’s governmental activities
and enterprise funds decreased $2.6 million and $2.0 million, respectively. For
governmental activities, the decrease is wholly attributable to the reduction in the net
pension deferred inflows of resources, while the reduction in the enterprise funds is a result of principal payments on general obligation bonds exceeding proceeds by $2.5 million.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Bangor’s basic
financial statements. These statements consist of three components: government-wide
financial statements, fund financial statements, and notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements
present the financial picture of the City from the point of view of economic resources measurement and using the accrual basis of accounting, which is similar to that used by
private-sector companies. These statements present governmental activities and business-type
activities separately.
II - 5
The statement of net position includes all of the City’s assets, liabilities and deferred inflows and
outflows, with the difference between them reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the
City is improving or deteriorating.
The statement of activities presents information showing how the City’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that are
accrued but not yet paid or collected but will result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused employee vacation leave).
These statements are divided into two categories: governmental activities and business-type activities.
Governmental activities – Most of the City’s basic services are included here, such as the
general government, public safety, public works, health and welfare, education, and parks and recreation. These activities are principally supported by taxes and intergovernmental
revenues.
Business-type activities – Currently, the City operates the following business-type activities: Bangor International Airport, Sewer Utility, the Bass Park Complex, Stormwater Utility,
Parking, Golf Course, and Economic Development.
The government-wide financial statements can be found on pages II-18 to II-19 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The City
of Bangor, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary
funds.
Governmental funds are used to account for mostly the same functions reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements are reported
using an accounting method called modified accrual accounting that measures cash and all
other financial assets that can readily be converted to cash. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances provide a reconciliation to facilitate a comparison between
governmental funds and governmental activities.
The City of Bangor maintains ten individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement
of revenues, expenditures, and changes in fund balances for the General Fund, Community
Development Block Grant, Arena fund, and Capital Projects Fund, all of which are considered to be major funds. Data from the other six governmental funds are combined
into a single aggregated presentation. Individual fund data for each of these non-major
governmental funds is provided in the form of combining statements (Schedule B)
elsewhere in this report.
II - 6
2016 2015*2016 2015 2016 2015
Current & other assets 45,360,502$ 40,071,698$ 27,577,992$ 26,939,311$ 72,938,494$ 67,011,009$
Capital assets, net of
accumulated depreciation 75,420,521 78,323,398 230,444,082 230,272,012 305,864,603 308,595,410
Total assets 120,781,023 118,395,096 258,022,074 257,211,323 378,803,097 375,606,419
Deferred outflows of resources 3,633,929 1,872,874 802,922 249,572 4,436,851 2,122,446
Total deferred outflows 3,633,929 1,872,874 802,922 249,572 4,436,851 2,122,446
Long-term debt outstanding 76,604,213 76,883,732 84,529,953 86,022,899 161,134,166 162,906,631
Other liabilities 6,689,682 6,106,273 5,737,793 5,733,542 12,427,475 11,839,815
Total liabilities 83,293,895 82,990,005 90,267,746 91,756,441 173,561,641 174,746,446
Deferred inflows of resources 5,331,398 8,213,055 253,185 730,549 5,584,583 8,943,604
Total deferred inflows 5,331,398 8,213,055 253,185 730,549 5,584,583 8,943,604
Net position:
Net investment in capital assets 47,792,253 50,030,025 159,537,793 156,544,970 207,330,046 206,574,995
Restricted 4,045,808 4,494,021 - - 4,045,808 4,494,021
Unrestricted (16,048,402) (25,459,136) 8,766,272 8,428,935 (7,282,130) (17,030,201)
Total net position 35,789,659$ 29,064,910$ 168,304,065$ 164,973,905$ 204,093,724$ 194,038,815$
* Certain amounts have been reclassified to conform with 2016 presentation.
Governmental
Activities
Business-type
Activities Total
The City of Bangor adopts an annual budget for its General Fund. A budgetary comparison
statement has been provided for the General Fund to demonstrate compliance with this
budget (Schedule A-2).
Proprietary funds are used to account for essentially the same functions reported as
business-type activities in the government-wide financial statements. Enterprise funds are the only type of proprietary funds maintained by the City. The proprietary fund statements
provide the same type of information as the government-wide statements, only in more
detail.
The City maintains seven individual proprietary funds, of which the Sewer Utility, Airport,
and Bass Park Funds are considered to be major. Data from four 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.
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.
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 $7.3 million, the governmental activities deficit of $16.0 million is
partially offset by the business type activities balance of $8.8 million. The governmental
activities deficit is primarily due to $21.0 million in outstanding pension obligation bonds.
Governmental activities net position increased $6.7 million. The major components associated
with the increase in governmental activities net position is a reduction of the net pension
liability and related deferred inflows of $1.9 million and increases in operating and capital grants contributions and general tax revenues of $2.8 million and $1.2 million, respectively.
Business-type net position increased $3.3 million over FY 2015 net position. The increase in net position is largely due to a $1.8 million increase in capital grants and contributions received by
the Airport Fund for the domestic terminal renovation and runway projects. Sewer user fees
continue to be adjusted annually to ensure adequate resources to fund improvements required
under a recently completed consent decree with the EPA (Refer to Note C), this rate increase
contributed $794 thousand towards the net position increase. The Stormwater Fund completed
its second full year of operations, providing an accumulation of resources to undertake
stormwater management projects on a pay as you go basis. Its operation resulted in a $432
thousand increase to net position.
II - 8
2016 2015 2016 2015 2016 2015
Revenues
Program Revenues
Charges for services 18,157,571$ 18,492,398$ 28,366,080$ 27,236,139$ 46,523,651$ 45,728,537$
Operating grants & contributions 34,838,496 33,541,085 - 193,061 34,838,496 33,734,146
Capital grants & contributions 3,064,312 1,540,614 8,776,331 6,947,799 11,840,643 8,488,413
General Revenues
Property and other taxes 62,865,431 61,646,435 1,000,000 800,000 63,865,431 62,446,435
Grants and contributions not
restricted to specific programs 4,173,167 3,794,664 - - 4,173,167 3,794,664
Other 668,099 824,914 420,951 462,069 1,089,050 1,286,983
Total Revenues 123,767,076 119,840,110 38,563,362 35,639,068 162,330,438 155,479,178
Expenses
General government 6,588,238 6,871,396 - - 6,588,238 6,871,396
Public safety 18,107,357 17,933,525 - - 18,107,357 17,933,525
Health, community and recreation 10,112,526 9,692,379 - - 10,112,526 9,692,379
Public services 15,409,518 12,956,599 - - 15,409,518 12,956,599
Other agencies 4,528,591 4,638,805 - - 4,528,591 4,638,805
Education 51,901,230 52,297,774 - - 51,901,230 52,297,774
Arena development 136 - - - 136 -
Community development 1,592,047 1,316,591 - - 1,592,047 1,316,591
Waterfront 331,622 360,004 - - 331,622 360,004
Public transportation 3,166,692 2,784,081 - - 3,166,692 2,784,081
Interest on debt 2,362,899 2,604,030 - - 2,362,899 2,604,030
Economic development (tif)929,322 1,568,811 - - 929,322 1,568,811
Sewer Utility - - 7,210,861 6,603,195 7,210,861 6,603,195
Airport - - 20,266,935 20,893,894 20,266,935 20,893,894
Park Woods - - - 507,210 - 507,210
Stormwater Utility - - 400,924 241,082 400,924 241,082
Parking - - 931,676 978,658 931,676 978,658
Bass Park - - 7,735,775 7,855,957 7,735,775 7,855,957
Municipal Golf Course - - 613,930 849,164 613,930 849,164
Economic Development - - 508,234 698,294 508,234 698,294
Total Expenses 115,030,178 113,023,995 37,668,335 38,627,454 152,698,513 151,651,449
Excess (deficiency) before special
items and transfers 8,736,898 6,816,115 895,027 (2,988,386) 9,631,925 3,827,729
Gain on disposition of asset - - 422,984 - 422,984 -
Special Item - - - (484,664) - (484,664)
Transfers (2,012,149) (2,469,650) 2,012,149 2,469,650 - -
Change in net position 6,724,749 4,346,465 3,330,160 (1,003,400) 10,054,909 3,343,065
Beginning net position 29,064,910 24,718,445 164,973,905 165,977,305 194,038,815 190,695,750
Ending net position 35,789,659$ 29,064,910$ 168,304,065$ 164,973,905$ 204,093,724$ 194,038,815$
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 $115.0 million. As shown on the Statement of
Activities, the total amount financed by the property tax was $56.1 million, or 49% of expenses.
Those who directly benefit from an activity provided $18.2 million in payments. Other governments and organizations subsidized certain activities with operating grants and
contributions in the amount of $34.8 million. Capital grants and contributions accounted for
$3.1 million. The City also received $11.6 million in other general revenues such as state
revenue sharing, motor vehicle and boat excise taxes, homestead exemptions, and interest
earnings.
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
Total governmental activities expenses increased $2.0 million over the prior year, $1.1 million of
the increase was related to the loss on the disposition of capital assets previously used for
public safety and transportation purposes. Public services expenses increased $2.5 million as
there was an increase in project based federal grant funding for streets and sidewalks.
Excluding the loss on the disposal of capital assets, public safety expenses decreased by $178
thousand, as a result of lower equipment costs, which vary from year to year depending upon
needs and available funding. Economic development (tif) expenses decreased by $640
thousand due to the expiration of an agreement during FY 2016. School expenses decreased
$397 thousand as result of changes to its vacation and sick leave policies. During FY 2016, City
employees did receive a cost of living adjustment of 1% and realized a health insurance rate
decrease of 3.5% which resulted in approximately $209 thousand of increased expenses.
II - 10
Revenues by Source - Governmental Activities
28%3%
45%
5%3%1%15%
Charges for Services
Operating Grants & Contributions
Capital Grants & Contributions
Property Taxes
Other General
Unrestricted Grants & Contributions
Other Unrestricted
Total governmental activities’ revenues increased $3.9 million, or 3.3%. The largest single
source of revenue continues to be the property tax, which increased $759 thousand. In
addition, the City realized increases in excise taxes of $427 thousand. Capital grants and
contributions increased $1.52 million due to increased project specific federal funding of
streets/sidewalks. Operating grants and contributions increased $1.3 million due to higher
State and Federal funding of education and health and community services programs. In total, charges for services decreased $335 thousand.
Business-type Activities
Total business-type activities expenses decreased $959 thousand. In FY 2015, the City disposed
of the Park Woods Fund, which reported $507 thousand of expenses in FY 2015. This disposal
comprises the majority of the decrease in expenses. Employees working in business-type
activities did receive a cost of living adjustment of 1% and realized a health insurance decrease
of 3.5%.
II - 11
In total, business-type activities revenue increased $2.9 million or 8.2%, this increase is wholly
attributable to the Airport Fund. Capital grants and contribution increased $1.8 million as a
result of federal and PFC funding associated with the domestic terminal renovation and runway
projects. Airport Fund charges for services increased $1.5 million due to an increase in the
number of gallons of jet fuel sold as well as an increase on the per gallon margin charged to
customers.
Revenues by Source - Business-type Activities
Transfers
5%Capital Grants and
Contributions
22%
TIF
2%
Charges for Services
71%
Charges for Services
Capital Grants and
Contributions
Transfers
TIF
0
5
10
15
20
25
(in millions)Sewer UtilityAirportStormwaterParkingBass 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 $32.0 million, an increase of $5.2 million over the prior year balance. The increase
is due to General Fund revenue receipts exceeding estimates by $3.3 million. Major revenues
that exceeded estimates are as follows; excise taxes $1.4 million, intergovernmental revenues
$980 thousand, and charges for service $680 thousand. In addition, the Capital Projects Fund
fund balance increased by $2.5 million, due to $1.6 million of current refunding bond
unexpended bond proceeds and $800 thousand of unexpended Downtown TIF funds. All other
governmental fund fund balances remained relatively unchanged from prior year amounts. Of
the ending balance of $32.0 million, approximately 78% of this total ($24.8 million) is either
committed, assigned or unassigned and is available for spending by formal action of the City Council and $3.5 million, or 10.98%, is restricted. The remainder is nonspendable, indicating
that it is in the form of nonspendable assets such as inventory, prepaid expenditures,
nonexpendable trust principal balances 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 $21.6 million, a $3.4 million increase from the prior year’s balance of
$18.2 million. The overall increase in fund balance is related to additional automobile excise
tax, intergovernmental revenues and charges for service receipts.
The Community Development Block Grant Fund accounts for the annual entitlement grant funds
received under the Housing and Community Development Act of 1974. Total expenditures for FY 2016 increased $100 thousand over the prior year amount. This is reflective of increased
program revenues received and the continued draw down of federal funds the City had set
aside for specific targeted areas, including the west side neighborhood revitalization, enhanced
residential rehabilitation programs and specific economic development projects, which were
completed during the prior year. While the FY 2016 federal funding amount remained relatively
flat, it does represent a nearly 35% reduction since FY 2012.
The Arena Fund accounts for the allocation of slot and table game revenues received by the
City from the operation of the casino. The fund was established to finance the cost to replace
the aging Bangor Auditorium and Civic Center. During the year, the Arena provided $2.15
million towards the 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 remained relatively flat with
an increase of $300 thousand over the prior year. Significant project costs incurred in FY 2016
included $5.0 million investment in streets/sidewalks and other infrastructure and $1.1 million in
equipment replacements. 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
seven enterprise funds increased by $3.3 million to $168.3 million. The majority of the increase
is related to increased Airport Fund revenues including capital grants and contributions and
increased charges for services related to jet fuel sales.
General Fund Budgetary Highlights
For budgetary financial statement purposes, all balances carried from the prior year are added
to the subsequent year’s total appropriation. This resulted in an overall budgetary increase of
$2.9 million. There were minimal additional amendments to the originally adopted budget. The
City’s commitment to budgetary integrity continues, actual operating revenues ended the year over budget estimates 3.27%, or $3.3 million, municipal expenditures were under budget by
0.95%, or $474 thousand. Education expenditures were under budget by $3.7 million or 6.9%
and by statute, education balances must be segregated from municipal balances.
Capital Asset and Debt Administration
Capital assets. As of June 30, 2016, the City of Bangor’s investment in capital assets for its
governmental and business-type activities amounted to $305.9 million (net of accumulated depreciation), a decrease of $2.7 million over the prior year. This investment includes land,
buildings, machinery and equipment, roads, runways, and sewer lines. Depreciation expense of
$17.5 million exceeded the City’s investment in capital assets for the current fiscal year of $16.4
million. Governmental activities invested $2.1 million, and business-type activities invested
$14.2 million and depreciation expense was $4.0 million and $13.5 million, respectively.
Major capital asset events during the current fiscal year included the following;
The City continues to invest in its core functions of infrastructure, vehicle and equipment
replacements. This year the City expanded its surface infrastructure with traffic
enhancements and open space infrastructure upgrades, which amounted to $1.6 million and
spent $477 thousand and $451 thousand to replace vehicles and equipment, respectively.
The Airport Fund invested $10.9 million in operational assets at Bangor International
Airport. The largest individual project is the renovation of the domestic terminal building, which will be completed in FY 2017. This project entails the reconfiguration of the entire
first floor to better serve passengers such as; new airline and rental car counters, a behind
the wall in-line baggage screening, restrooms and overall aesthetic improvements. Total
project cost is estimated at $13.9. The project includes federal and passenger facility
charge funds and a $1.6 million local share. During FY 2016, $4.6 million was invested in
this project. In addition to the terminal project, the Airport invested nearly $3.8 million in
runway system upgrades which are funded through the Federal Department of Transportation’s Airport Improvement Plan.
II - 14
The Sewer Fund invested $3.1 million in sewer replacement and separation projects and treatment plant upgrades.
During FY 2016, the Economic Development Fund sold a property for redevelopment valued
at $864 thousand.
Capital Assets (net of depreciation)
Governmental Business-type
Activities Activities
Land and improvements 11,742,166 4,723,761
Buildings and improvements 41,724,708 65,903,545
Machinery and equipment 1,589,628 3,101,381
Vehicles 6,728,771 -
Infrastructure 11,823,892 46,858,506
Parking structures - 2,177,690
Aircraft operational assets - 85,323,763
Construction in process 1,811,356 22,355,436
Total 75,420,521 230,444,082
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 $140.7 million, a decrease of
$5.0 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 $383.2 million,
an amount which is significantly in excess of existing general obligation debt.
Bonded Debt Outstanding (in millions)
$78.7 $62.0
Governmental Activities
Business-type Activities
II - 15
Additional information on the City’s long-term debt can be found in Note I on pages II-45 to II-
48 of this report.
Quality of Life
Bangor offers a diversity of experiences for our residents and visitors alike. The City serves as
the urban, commercial, healthcare, governmental service and cultural center of a large geographic area. This diversity coupled with the City’s commitment to support core municipal
services, academic excellence and arts and culture distinguishes it from surrounding
communities. While this activity has been beneficial to our citizens and the region, it presents
some additional social challenges for Bangor. Specifically, Bangor serves as the regional center for medical care, social services and affordable housing. Unfortunately, significant reductions in
State general assistance funding, housing assistance, mental health treatments, and medical
reimbursements as well as Federal reductions in programs such as Community Development
Block Grants have created significant challenges for the City. Moreover, these reductions were
implemented just as significant job losses were occurring throughout the region.
These challenges have led the City to be more proactive in its approach to dealing with issues
that have arisen. We identify neighborhoods that would benefit from strategic investment to
encourage and foster single occupancy ownership. Typical investments include; infrastructure
improvements, such as sidewalks, parks and streets, the acquisition and redevelopment of
blighted housing stock as well as provided opportunities for residents to invest in their own
homes through loans and incentives for home ownership. The City implemented a disruptive
property ordinance, which will allow us to work with landlords directly if tenants are causing
disruptions in neighborhoods. A foreclosed property registration program was established, which provides staff with access to the entities tasked with maintenance of properties during
the foreclosure process to ensure properties are properly maintained. The City has become
more aggressive in identifying blighted housing and removing them or getting them restored
and sold. Lastly, the City has been at the center of a community group to address substance
abuse issues. The group includes all major healthcare providers in our area and has made
great strides in educating, working to standardize best practices, and promoting legislative
changes on this issue. Communication and Technology
Recognizing our role in providing service and information to our citizens, the City continues to
invest in initiatives to enhance communication with our varied constituents. We actively
manage and update our own website, which integrates with our service request and notification
subscription system, developed our own mobile app, post to social media, and manage our own television channel, which broadcasts all City meetings and provides information on City
programs and services and offer live streaming of all meetings. The City Council and staff also
attend town hall forums and neighborhood meetings to get more feedback directly from
residents. We continually work to ensure that we are providing the information citizens want in
the form that best fits their need. During FY 2016, the City began implementing an electronic
content management (ECM) system. The project involves digitizing all our documents. This
effort will allow all City staff to access records on their own, thereby increasing efficiency, as well as provide a public portal to allow direct access to the public.
II - 16
Prior Year Base Municipal Commitment $ 28,624,717
Growth Factor:3.18%
Average Real Personal Income 0.86%
Property Growth Factor 2.32%
Net New State Funds -
Municipal Commitment Limit $ 25,868,303
Tax Shift
One of the largest challenge faced by the City of Bangor is the incremental nature of Federal
and State budget decisions. While individual changes implemented over a number of sessions,
seem tolerable, the totality of these actions has resulted in a significant tax shift to
municipalities. These actions include State legislative mandates to municipalities with no State
funding such as; General Assistance, transfer of normal costs of teacher retirement and MaineCare changes and caps, and Statutory funding not upheld by the Legislature such as;
funding of revenue sharing and aid to education. In the previous session, the Legislature took
action to shift jail costs to County government, which in turn is shifted to municipalities via the
county tax mechanism.
The City has reduced/limited spending by limiting cost of living increases, reducing its
workforce, managing health care costs, participating in regional efforts, investing in energy
efficiency improvements and technology, as well as limiting its long term exposure by not
contributing to retiree health coverage and no longer offering a defined benefit pension plan for
new employees.
Economic Factors and Next Year’s Budget and Rates
The unemployment rate for the City of Bangor in 2016 was 3.8%, which continues to be on
par with or below both the national and State rates of 5.1% and 3.7%, respectively.
While Bangor represents less than 3% of the state’s population, businesses within the City
generate 6.6% of the State’s retail sales tax.
Residential valuations continue to increase slightly in the coming year.
Value of commercial properties also continues to increase slightly after realizing significant
downward adjustments in FY 2010.
Bangor businesses continue to reinvest in personal property. While not subject to local taxation, the value of BETE property (net of depreciation) in FY 2017 increased $4.1 million,
or 4.0%, for a total of $105.3 million.
The City is subject to a state statutory tax levy calculation system (known as LD 1). Generally,
the growth of the tax levy is limited to an increase equal to the ten year average percentage
change in real statewide personal income plus taxes from property value resulting from new
construction, major renovations to existing properties, or the subdivision of property less any “net new state funding”. For Fiscal Year 2016, the City’s LD 1 tax levy limit was as follows:
The Fiscal Year 2016 budget was within the statutory tax levy limit.
II - 17
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 2016 and 2017 in order to fund
such services and programs and their actions were approved, as required, via a local election.
The City realized a $7.4 million reduction in taxable valuation for FY 2017. New construction
and market adjustments were not sufficient to offset the $23.8 million increase in the
homestead exemption and a $29 million reduction in value related to two substantial tax
abatements.
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 remains generally flat. We continue to monitor key revenue areas such as: flat investment yield curves,
automobile excise taxes, and property tax collection rates. The fiscal year 2017 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 2017 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, a continued increase in BETE valuation and an increase in the homestead
exemption, thereby providing some relief to residential property owners. The afore referenced
actions coupled with a small increase in property taxes of 2.5% allowed the City Council to
provide a 1.25% 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.
In advance of the State of Maine’s 2018-2019 Biennial budget, municipalities were recently
notified that one of the Governor’s top priorities will be the reduction and eventual elimination
of the income tax. The letter states “municipalities will have to get more creative to provide
local services without increasing property taxes”. Unfortunately, municipalities have limited ability to raise revenues beyond property taxes. Therefore, city and school staff and elected
officials will be closely monitoring legislative actions and continue to work collaboratively with
other municipalities and professional organizations and actively participate in the upcoming
legislative hearings.
Requests for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors, and
creditors with a general overview of the City of Bangor’s finances. Questions concerning any of this information should be addressed to the Finance Director, City of Bangor, 73 Harlow Street,
Bangor, ME 04401 or via email to finance@bangormaine.gov.
BASIC FINANCIAL STATEMENTS
II - 18
Exhibit 1
Component Unit
Governmental Business-type Bangor
Activities Activities Total Public Library
ASSETS
Cash and cash equivalents 17,991,282$ 4,508,087$ 22,499,369$ 535,729$
Investments 2,940,440 15,156,097 18,096,537 11,827,317
Receivables:
Accounts (net of allowance of
$465,108 and $705,000, respectively)1,254,500 9,617,974 10,872,474 209,735
Intergovernmental 4,505,357 2,868,924 7,374,281 -
Taxes and liens - prior years 1,583,849 - 1,583,849 -
Taxes receivable - current year 1,086,640 - 1,086,640 -
Special assessments 30,130 87,664 117,794 -
Loans and notes 6,706,816 1,797,067 8,503,883 -
Internal balances 8,023,349 (8,023,349) - -
Inventories 568,474 238,944 807,418 -
Prepaid items 669,665 644,638 1,314,303 420
Other assets - 681,946 681,946 -
Non-depreciable capital assets 6,903,724 25,951,710 32,855,434 -
Depreciable capital assets, net 68,516,797 204,492,372 273,009,169 13,154,994
Total assets 120,781,023 258,022,074 378,803,097 25,728,195
DEFERRED OUTFLOWS OF RESOURCES
Net pension 3,633,929 802,922 4,436,851 -
Total deferred outflows of resources 3,633,929 802,922 4,436,851 -
LIABILITIES
Accounts payable and other current liabilities 2,164,505 4,395,819 6,560,324 571,538
Accrued wages and benefits payable 4,274,575 293,271 4,567,846 -
Unearned revenues 250,602 1,048,703 1,299,305 -
Noncurrent liabilities:
Due within one year 9,348,749 4,506,978 13,855,727 115,765
Due in more than one year 67,255,464 80,022,975 147,278,439 164,880
Total liabilities 83,293,895 90,267,746 173,561,641 852,183
DEFERRED INFLOWS OF RESOURCES
Deferred revenues - loans and assessments 4,596,315 - 4,596,315 -
Net pension 735,083 253,185 988,268 -
Total deferred inflows of resources 5,331,398 253,185 5,584,583 -
NET POSITION
Net investment in capital assets 47,792,253 159,537,793 207,330,046 12,940,406
Restricted for:
Nonexpendable trust principal 532,338 - 532,338 4,397,779
Expendable income 506,007 - 506,007 6,822,175
Grants and other balances 3,007,463 - 3,007,463 -
Unrestricted (16,048,402) 8,766,272 (7,282,130) 715,652
Total net position 35,789,659$ 168,304,065$ 204,093,724$ 24,876,012$
See accompanying notes to financial statements.
CITY OF BANGOR, MAINE
Statement of Net Position
June 30, 2016
Primary Government
II - 19
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 6,588,238$ 2,196,463$ 3,122$ -$ (4,388,653)$ -$ (4,388,653)$ -$
Public safety 18,107,357 3,383,956 374,040 229,838 (14,119,523) - (14,119,523) - Health, community services and recreation 10,112,526 1,193,185 6,774,741 22,144 (2,122,456) - (2,122,456) - Public services 15,409,518 3,618,373 4,904 - (11,786,241) - (11,786,241) - Other agencies 4,528,591 - - 2,701,299 (1,827,292) - (1,827,292) -
Education 51,901,230 4,506,591 24,685,903 - (22,708,736) - (22,708,736) -
Arena development 136 1,896,633 - - 1,896,497 - 1,896,497 - Community development 1,592,047 313,396 1,013,211 - (265,440) - (265,440) - Waterfront 331,622 - - - (331,622) - (331,622) - Public transportation 3,166,692 1,048,974 1,982,575 111,031 (24,112) - (24,112) -
Economic development (tif)929,322 - - - (929,322) - (929,322) -
Interest on debt 2,362,899 - - - (2,362,899) - (2,362,899) - Total governmental activities 115,030,178 18,157,571 34,838,496 3,064,312 (58,969,799) - (58,969,799) - Business-type activities:
Sewer Utility 7,210,861 7,975,639 - - - 764,778 764,778 -
Airport 20,266,935 13,576,325 - 8,776,331 - 2,085,721 2,085,721 - Stormwater Utility 400,924 1,000,864 - - - 599,940 599,940 - Parking 931,676 1,030,872 - - - 99,196 99,196 - Bass Park 7,735,775 3,346,951 - - - (4,388,824) (4,388,824) -
Municipal Golf Course 613,930 732,016 - - - 118,086 118,086 -
Economic Development 508,234 674,066 - - - 165,832 165,832 - Total business-type activities 37,668,335 28,336,733 - 8,776,331 - (555,271) (555,271) -
Total primary government 152,698,513$ 46,494,304$ 34,838,496$ 11,840,643$ (58,969,799) (555,271) (59,525,070) -
Component unit
Bangor Public Library 2,798,808$ 13,008$ 1,906,322$ 29,109$ - - - (850,369)$
General revenues: Property taxes, levied for general purposes 56,062,583 1,000,000 57,062,583 - Payment in lieu of taxes 193,599 - 193,599 -
Excise taxes 6,272,270 - 6,272,270 -
Franchise taxes 336,979 - 336,979 - Grants and contributions not restricted to specific programs: Homestead/BETE exemption 1,850,107 - 1,850,107 - Other State aid 25,897 - 25,897 -
State Revenue Sharing 2,297,163 - 2,297,163 -
Unrestricted investment earnings (loss)488,936 420,951 909,887 (441,477) Miscellaneous revenues 179,163 - 179,163 - Gain on sale of assets - 452,331 452,331 - Transfers (2,012,149) 2,012,149 - -
Total general revenues and transfers 65,694,548 3,885,431 69,579,979 (441,477)
Change in net position 6,724,749 3,330,160 10,054,909 (1,291,846)
Net position, beginning of year 29,064,910 164,973,905 194,038,815 26,167,858
Net position, end of year 35,789,659$ 168,304,065$ 204,093,724$ 24,876,012$
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, 2016
II - 20
Exhibit 3
CITY OF BANGOR, MAINEBalance Sheet
Governmental Funds June 30, 2016
Community Capital Other TotalDevelopmentArenaProjectsGovernmentalGovernmentalGeneralBlock Grant Fund Fund Funds Funds
ASSETSCash and cash equivalents 12,014,827$ 48,637$ 466,615$ 4,469,435$ 991,768$ 17,991,282$
Investments 50,000 - - 2,765,868 124,572 2,940,440 Receivables:
Taxes 2,670,489 - - - - 2,670,489 Accounts (net of allowance of $465,108)1,016,994 - 125,989 - 111,517 1,254,500
Interfund 8,251,179 - - - - 8,251,179 Intergovernmental 3,706,733 93,672 - 513,125 191,827 4,505,357
Loans and notes 611,511 4,406,185 - - 1,689,120 6,706,816
Unearned special assessments - - - 30,130 - 30,130 Inventory, at cost 568,474 - - - - 568,474
Prepaid items 669,665 - - - - 669,665
Total assets 29,559,872 4,548,494 592,604 7,778,558 3,108,804 45,588,332
LIABILITIES
Accounts payable 1,257,728 1,335 5,463 378,326 49,263 1,692,115 Accrued wages and benefits payable 4,271,124 3,451 - - - 4,274,575
Interfund loans payable - - - - 227,830 227,830 Unearned revenues - 49,764 - 200,838 - 250,602
Due to rehabilitation recipients - 90,912 - - - 90,912 Total liabilities 5,528,852 145,462 5,463 579,164 277,093 6,536,034
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - property taxes 2,442,797 - - - - 2,442,797
Unavailable revenues - loans - 4,406,185 - - 160,000 4,566,185 Unavailable revenues - special assessments - - - 30,130 - 30,130
Total deferred inflows of resources 2,442,797 4,406,185 - 30,130 160,000 7,039,112
FUND BALANCES (DEFICITS) (Note J)Nonspendable 3,138,639 - - - 532,338 3,670,977
Restricted 1,374,097 - - - 2,139,373 3,513,470
Committed 5,406 - 587,141 - - 592,547 Assigned 5,754,846 - - 7,169,264 - 12,924,110
Unassigned 11,315,235 (3,153) - - - 11,312,082 Total fund balances (deficits)21,588,223 (3,153) 587,141 7,169,264 2,671,711 32,013,186
Total liabilities, deferred inflows of resources and fund balances 29,559,872$ 4,548,494$ 592,604$ 7,778,558$ 3,108,804$
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.75,420,521
Unavailable revenues - property taxes are not available to pay for current-period expenditures and, therefore,
are deferred in the funds.2,442,797
Long-term liabilities, including bonds payable $62,068,475, accrued interest $381,478, accrued compensated absences $2,135,014, self insurance liability $2,259,949, net OPEB obligation $2,927,496, bond premium $567,282, capital leases $408,687 and
net pension liability, including deferred outflows and inflows of resources $3,338,464 are not due and payable in the current period and,
therefore, are not reported in the funds.(74,086,845)
Net position of governmental funds 35,789,659$
See accompanying notes to financial statements.
II - 21
Exhibit 4
CITY OF BANGOR, MAINEStatement of Revenues, Expenditures and Changes in Fund BalancesGovernmental FundsFor the Fiscal Year Ended June 30, 2016 Community Capital Other TotalDevelopmentArenaProjectsGovernmentalGovernmentalGeneralBlock Grant Fund Fund Funds Funds
Revenues
Taxes 60,894,710$ -$ -$ 2,004,271$ -$ 62,898,981$
Intergovernmental 30,563,862 1,013,211 - 2,980,168 7,355,178 41,912,419
Licenses and permits 755,273 - - - - 755,273
Charges for services 13,980,385 - - - 822,164 14,802,549
Program income - 284,619 - - - 284,619
Revenue from use of money and property 721,087 - 1,896,633 129,049 76,382 2,823,151
Other 34,910 28,777 - 84,144 79,412 227,243 Total revenues 106,950,227 1,326,607 1,896,633 5,197,632 8,333,136 123,704,235
ExpendituresCurrent:General government 5,172,435 - - - - 5,172,435 Public safety 17,146,674 - - - - 17,146,674 Health, community services and recreation 5,117,412 - - - - 5,117,412 Public services 10,387,416 - - - - 10,387,416 Other agencies 4,723,022 - - - - 4,723,022 Education 52,655,986 - - - - 52,655,986 Tax increment financing 717,260 - - - - 717,260 Unclassified 22,452 - 29,942 - - 52,394 Restricted grants - 1,319,081 - - 8,533,230 9,852,311 Capital outlay 674,067 - - 7,266,676 - 7,940,743
Debt service 5,756,272 - - 249,698 - 6,005,970
Total expenditures 102,372,996 1,319,081 29,942 7,516,374 8,533,230 119,771,623
Excess (deficiency) of revenues over (under) expenditures 4,577,231 7,526 1,866,691 (2,318,742) (200,094) 3,932,612
Other financing sources (uses)
Issuance of debt 61,152 - - 3,014,000 - 3,075,152
Sale of assets 125,043 - - 54,120 - 179,163
Transfers to other funds (1,527,822) - (2,150,821) (116,305) (220,464) (4,015,412)
Transfers from other funds 121,822 - - 1,878,286 3,155 2,003,263 Total other financing sources (uses)(1,219,805) - (2,150,821) 4,830,101 (217,309) 1,242,166
Changes in fund balances 3,357,426 7,526 (284,130) 2,511,359 (417,403) 5,174,778
Fund balances (deficits), beginning of year 18,230,797 (10,679) 871,271 4,657,905 3,089,114 26,838,408
Fund balances (deficits), end of year 21,588,223$ (3,153)$ 587,141$ 7,169,264$ 2,671,711$ 32,013,186$
See accompanying notes to financial statements.
II - 22
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, 2016
Net change in fund balances - total governmental funds (from Exhibit 4)5,174,778$
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 depreciation expense of $3,952,238 and loss on
disposal of assets of $1,098,508 exceeds capital outlays of $2,147,869.(2,902,877)
Financing proceeds provide current financial resources to governmental funds,
but issuing debt increases long-term liabilities in the statement of net position.
Repayment of bond and capital lease principal are expenditures in the
governmental funds, but the repayment reduces long-term liabilities in the
statement of net position. This is the amount by which principal payments
of $5,665,640 exceeded general obligation bond proceeds and
capital leases of $3,075,151.2,590,489
Some items reported in the statement of activities do not require
the use of current financial resources and, therefore, are not reported
in governmental fund statements. The differences are as follows: increase in
net OPEB obligation ($224,310), self insurance liability ($238,861), unavailable
revenues ($116,322) and decreases in accrued compensated absences ($490,528),
interest ($13,077), net pension liability, including deferred outflows and inflows of
resources ($1,876,146) and bond premium ($62,101).1,862,359
Change in net position of governmental activities (see Exhibit 2)6,724,749$
See accompanying notes to financial statements.
II - 23
Exhibit 6
CITY OF BANGOR, MAINE
Statement of Revenues, Expenditures and Changes in
Unassigned Fund Balance - Budget and Actual
General FundFor the Fiscal Year Ended June 30, 2016
Variance with
Final Budget
Positive
Original Final Actual (Negative)
Revenues
Taxes 59,440,794$ 59,332,058$ 60,894,710$ 1,562,652$
Intergovernmental 26,612,842 26,612,842 27,589,805 976,963
Licenses and permits 707,466 707,466 755,273 47,807
Charges for services:
municipal 8,367,109 8,367,109 9,207,028 839,919
school 4,630,636 4,630,636 4,465,299 (165,337)
Fines, forfeits and penalties 33,000 33,000 34,910 1,910
Revenue from use of money and property
municipal 665,350 665,350 687,673 22,323
Total revenues 100,457,197 100,348,461 103,634,698 3,286,237
Expenditures
Current:
General government 5,165,939 5,150,939 5,188,003 (37,064)
Public safety 17,884,309 17,802,117 17,328,630 473,487
Health, community services and recreation 4,965,641 4,977,488 5,117,305 (139,817)
Public buildings and services 10,474,617 10,452,617 10,313,334 139,283
Other agencies 4,721,927 4,724,124 4,723,238 886
Education 51,555,864 54,368,946 50,643,693 3,725,253
Unclassified 776,962 776,962 739,496 37,466
Debt service 5,756,091 5,756,091 5,756,272 (181)
Total expenditures 101,301,350 104,009,284 99,809,971 4,199,313
Excess (deficiency) of revenues
over (under) expenditures (844,153) (3,660,823) 3,824,727 7,485,550
Other financing sources (uses)
Appropriation from restricted, committed
and assigned fund balances 1,385,802 1,385,802 73,801 (1,312,001)
Appropriation to assigned fund balance - - (1,731,039) (1,731,039)
Appropriation from unassigned fund balance 14,851 14,851 - (14,851)
Sale of assets 9,000 9,000 16,841 7,841
Contributions - - 400 400
Insurance settlements 7,500 40,155 41,982 1,827
Transfers to other funds (600,000) (740,000) (740,000) -
Transfers from other funds 27,000 27,000 20,000 (7,000)
Total other financing sources (uses)844,153 736,808 (2,318,015) (3,054,823)
Net change in fund balance -$ (2,924,015)$ 1,506,712 4,430,727$
Unassigned fund balance, beginning of year 9,995,105
Changes in fund balance classification in accordance with GAAP
Changes in balances carried 379,309
Inventory and prepaids (GASB 54)(565,891)
Unassigned fund balance, end of year 11,315,235$
See accompanying notes to financial statements.
Budgeted amounts
Continued on next page
II - 24
Exhibit 7
CITY OF BANGOR, MAINE
Statement of Net Position
Proprietary Funds
June 30, 2016
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 1,444,946$ 6,260$ 1,332,086$ 1,724,795$ 4,508,087$
Investments 280,017 10,567,869 - - 10,847,886
Accounts receivable 3,409,420 6,108,637 313,010 491,907 10,322,974
Less allowance for uncollectible accounts (45,000) (660,000) - - (705,000)
Net accounts receivable 3,364,420 5,448,637 313,010 491,907 9,617,974
Due from other governments - 2,868,924 - - 2,868,924
Inventories, at cost - 206,937 32,007 - 238,944
Prepaid items 50,027 359,382 94,082 141,147 644,638
Total current assets 5,139,410 19,458,009 1,771,185 2,357,849 28,726,453
Noncurrent assets
Capital Assets:
Land and improvements 683,865 - 579,157 5,209,495 6,472,517
Buildings and improvements 29,026,578 - 68,958,075 4,435,235 102,419,888
Machinery and equipment 6,549,762 - 2,020,234 553,257 9,123,253
Infrastructure 60,302,324 - - 683,189 60,985,513
Aircraft operational assets - 271,001,326 - - 271,001,326
Parking structures - - - 11,331,311 11,331,311
Construction in process 2,907,185 19,448,251 - - 22,355,436
Total capital assets 99,469,714 290,449,577 71,557,466 22,212,487 483,689,244
Less accumulated depreciation (45,601,654) (185,677,563) (8,927,307) (13,038,638) (253,245,162)
Net capital assets 53,868,060 104,772,014 62,630,159 9,173,849 230,444,082
Investments - 4,308,211 - - 4,308,211
Loans receivable - 368,253 - 1,428,814 1,797,067
Unearned special assessments 87,664 - - - 87,664
Due from bond trustee 681,946 - - - 681,946
Total noncurrent assets 54,637,670 109,448,478 62,630,159 10,602,663 237,318,970
Total assets 59,777,080 128,906,487 64,401,344 12,960,512 266,045,423
DEFERRED OUTFLOWS OF RESOURCES
Net pension 192,976 595,369 - 14,577 802,922
Total deferred outflows of resources 192,976 595,369 - 14,577 802,922
See accompanying notes to financial statements.
Continued from previous page
II - 25
Exhibit 7 (con't)
CITY OF BANGOR, MAINE
Statement of Net Position
Proprietary Funds
June 30, 2016
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
LIABILITIES
Current liabilities
Accounts payable 1,135,029 1,612,394 472,121 36,099 3,255,643
Accrued wages and benefits payable 39,171 128,727 110,434 14,939 293,271
Accrued interest 51,839 50,932 973,848 63,557 1,140,176
Workers' compensation 20,000 127,519 - 2,111 149,630
Interfund loans payable - 6,225,775 1,797,574 - 8,023,349
General obligation debt payable 1,579,986 584,819 1,143,191 590,768 3,898,764
Capital lease obligation payable - - 9,184 - 9,184
Accrued compensated absences 73,504 268,305 - 16,880 358,689
Unearned revenue - - 1,048,703 - 1,048,703
Other liabilities - - 90,711 - 90,711
Total current liabilities 2,899,529 8,998,471 5,645,766 724,354 18,268,120
Long-term liabilities
Workers' compensation - 153,696 - 7,889 161,585
General obligation debt payable 10,512,066 8,652,012 51,094,556 4,518,364 74,776,998
Capital lease obligation payable - - 20,026 - 20,026
Accrued compensated absences 48,483 160,439 - 16,105 225,027
Net OPEB obligation 182,083 643,746 - 39,882 865,711
Net pension liability 370,554 1,143,231 - 27,991 1,541,776
Other long-term liabilities 156,498 - 2,275,354 - 2,431,852
Total long-term liabilities 11,269,684 10,753,124 53,389,936 4,610,231 80,022,975
Total liabilities 14,169,213 19,751,595 59,035,702 5,334,585 98,291,095
DEFERRED INFLOWS OF RESOURCES
Net pension 60,851 187,737 - 4,597 253,185
Total deferred inflows of resources 60,851 187,737 - 4,597 253,185
NET POSITION
Net investment in capital assets 43,239,365 99,415,086 11,624,244 5,259,098 159,537,793
Unrestricted 2,500,627 10,147,438 (6,258,602) 2,376,809 8,766,272
Total net position 45,739,992$ 109,562,524$ 5,365,642$ 7,635,907$ 168,304,065$
See accompanying notes to financial statements.
II - 26
Exhibit 8
CITY OF BANGOR, MAINE
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Fiscal Year Ended June 30, 2016
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
Operating revenues
Charges for services 7,975,639$ 13,576,325$ 3,346,951$ 3,437,818$ 28,336,733$
Total operating revenues 7,975,639 13,576,325 3,346,951 3,437,818 28,336,733
Operating expenses
Operating expenses other than
depreciation and amortization 5,139,877 11,685,911 2,904,022 1,753,609 21,483,419
Depreciation and amortization 1,816,315 8,215,781 2,954,048 517,538 13,503,682
Total operating expenses 6,956,192 19,901,692 5,858,070 2,271,147 34,987,101
Operating income (loss)1,019,447 (6,325,367) (2,511,119) 1,166,671 (6,650,368)
Nonoperating revenue (expenses)
Interest income 93,574 241,579 - 85,798 420,951
Interest expense (254,669) (365,243) (1,877,705) (183,617) (2,681,234)
Taxes (Downtown TIF)- - 1,000,000 - 1,000,000
Gain (loss) on sale of assets 29,347 - - 422,984 452,331
Miscellaneous income (expense)- - - - -
Total nonoperating revenue (expenses)(131,748) (123,664) (877,705) 325,165 (807,952)
Net income (loss) before grants/contributions and transfers 887,699 (6,449,031) (3,388,824) 1,491,836 (7,458,320)
Grants/contributions received for capital assets - 8,776,331 - - 8,776,331
Transfers to other funds - (107,998) - (296,570) (404,568)
Transfers from other funds 177,998 - 2,150,821 87,898 2,416,717
Change in net position 1,065,697 2,219,302 (1,238,003) 1,283,164 3,330,160
Net position, beginning of year 44,674,295 107,343,222 6,603,645 6,352,743 164,973,905
Net position, end of year 45,739,992$ 109,562,524$ 5,365,642$ 7,635,907$ 168,304,065$
See accompanying notes to financial statements.
Continued on next page
II - 27
Exhibit 9
CITY OF BANGOR, MAINE
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended June 30, 2016
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 8,122,818$ 10,223,083$ 3,448,143$ 3,273,333$ 25,067,377$
Cash paid to suppliers for goods and services (3,392,098) (5,082,379) (2,820,993) (1,077,711) (12,373,181)
Cash paid to employees for services (1,836,385) (6,582,195) - (799,497) (9,218,077)
Net cash provided by (used in) operating
activities 2,894,335 (1,441,491) 627,150 1,396,125 3,476,119
Cash flows from noncapital financing activities
Interfund loans (repayments)- 3,435,000 (300,000) (857,900) 2,277,100
Taxes (Downtown TIF)- - 1,000,000 - 1,000,000
Transfers in 177,998 - 2,150,821 87,898 2,416,717
Transfers out - (107,998) - (296,570) (404,568)
Net cash provided by (used in) noncapital
financing activities 177,998 3,327,002 2,850,821 (1,066,572) 5,289,249
Cash flows from capital and related financing activities
Proceeds from general obligation bonds 280,000 920,000 - - 1,200,000
Acquisition and construction of capital assets (2,490,009) (11,939,333) - (258,350) (14,687,692)
Principal paid on general obligation bonds/capital leases (1,536,408) (490,125) (1,089,204) (575,415) (3,691,152)
Interest paid on general obligation bonds (261,583) (361,898) (1,994,489) (186,554) (2,804,524)
Proceeds from sale of property 29,347 - - 985,996 1,015,343
Grant/contribution monies received for capital assets - 9,262,013 - - 9,262,013
Net cash used in capital and related
financing activities (3,978,653) (2,609,343) (3,083,693) (34,323) (9,706,012)
Cash flows from investing activities
Net sales (purchases) of investments (280,017) 276,110 - - (3,907)
Investment of unexpended bond proceeds 237,591 - - - 237,591
Interest on investments 93,574 241,579 - 116,617 451,770
Loan repayments - 184,833 - - 184,833
Net cash provided by investing activities 51,148 702,522 - 116,617 870,287
Net increase (decrease) in cash (855,172) (21,310) 394,278 411,847 (70,357)
Cash, beginning of year 2,300,118 27,570 937,808 1,312,948 4,578,444
Cash, end of year 1,444,946$ 6,260$ 1,332,086$ 1,724,795$ 4,508,087$
Schedule of noncash investing, capital and financing activities:
During the year, the Airport Fund had an unrealized gain on investments in the amount of $367,271.
See accompanying notes to financial statements.
Continued from previous page
II - 28
Exhibit 9 (con't)
CITY OF BANGOR, MAINE
Statement of Cash Flows - Proprietary Funds
For the Fiscal Year Ended June 30, 2016
Business-type Activities - Enterprise Funds
Sewer Nonmajor Total
Utility Airport Bass Park Proprietary Proprietary
Fund Fund Fund Funds Funds
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income (loss)1,019,447$ (6,325,367)$ (2,511,119)$ 1,166,671$ (6,650,368)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating
activities
Depreciation and amortization 1,816,315 8,215,781 2,954,048 517,538 13,503,682
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 147,179 (3,353,242) (97,463) (94,577) (3,398,103)
(Increase) decrease in inventories - (7,264) 9,948 - 2,684
(Increase) decrease in prepaid items (35,342) (352,916) (75,201) (77,186) (540,645)
Increase (decrease) in accounts payable (26,568) 420,593 99,182 (88,874) 404,333
Increase (decrease) in unearned revenue - - 198,655 - 198,655
Increase (decrease) in other liabilities (26,696) (39,076) 49,100 (27,447) (44,119)
Total adjustments 1,874,888 4,883,876 3,138,269 229,454 10,126,487
Net cash provided by (used in) operating activities 2,894,335$ (1,441,491)$ 627,150$ 1,396,125$ 3,476,119$
See accompanying notes to financial statements.
II - 29
Exhibit 10
CITY OF BANGOR, MAINE
Statement of Fiduciary Net Position
Fiduciary FundsJune 30, 2016
Agency
Fund
ASSETS
Cash and cash equivalents $129,456
Total assets 129,456
LIABILITIES
Amounts held for others 129,456
Total liabilities $129,456
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 – 37
B Reconciliation of Budgetary Basis Statements II – 37 C Excess of Expenditures Over Appropriations II – 38
D Deficit Fund Equity II – 38
E Restricted Assets II – 38
Detailed Notes on All Funds
A Deposits and Investments II – 39
B Property Tax II – 40
C Capital Assets II – 41 D Interfund Transactions II – 42 E Due From Other Governments II – 43
F Leases II – 43 G Other Assets II – 45 H Unearned Revenue II – 45
I Long-Term Debt II – 45 J Fund Balances II – 49
K Net Position II – 50
Other Information
A Risk Management II – 50 B Tax Increment Financing Districts II – 51
C Contingent Liabilities II – 52
D Retirement II – 52 E Other Postemployment Benefits II – 57
F Subsequent Events II – 58
II - 30
CITY OF BANGOR, MAINE Notes to the Financial Statements June 30, 2016
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 67% of the operating financial support received by the Library during
the year ended June 30, 2016. 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, 2015 (most recent data available) the City
of Bangor’s share of the Joint Venture’s net position was $6,241,919. Complete financial statements
may be obtained from Municipal Review Committee, 395 State Street, Ellsworth, ME 04605.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the City. For the most part, the
effect of interfund activity has been removed from these statements. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support, as well as
from legally separate component units for which the City is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The City has elected not to allocate indirect costs among the
programs, functions and segments. Program revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported as general revenues.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Basis of Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as certain compensated absences and claims and
judgments, are recorded only when the payment is due.
Those revenues susceptible to accrual are property taxes, interest, and charges for services. Other
receipts and taxes become measurable and available when cash is received by the City and are
recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to
accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other grant requirements have been met.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The Community Development Block Grant Fund accounts for federal grants obtained and expended
under the Housing and Community Development Act of 1974, as amended, for the development of
viable urban communities.
The Arena Fund accounts for the percentage of slot revenues received by the City from the
operation of the casino. Said funds will be used to fund a portion of the debt service related to the
construction of the Cross Insurance Center.
The Capital Projects Fund accounts for the acquisition of capital assets or construction of major capital projects not being financed by proprietary or fiduciary funds.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
The City reports the following major proprietary funds:
The Sewer Utility fund accounts for the costs of construction and operation of the sewage
treatment plant, the City sewer system, and sewer operation activities, and is self-supported
through sewer user fees.
The Airport Fund accounts for the operation of Bangor International Airport. The principal
sources of revenues are landing fees and the sale of aviation fuel. Other revenue sources include lease payments for the use of terminal space and non-aviation industrial buildings.
The Bass Park Fund accounts for the operation of the Cross Insurance Center, a harness racing track and the Bangor State Fair. Principal sources of revenue are admissions, concession sales
and rentals. The fund is named after the Bass family, which bequeathed the property to the City
for recreational purposes.
Additionally, the City reports the following fund type:
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf
of others. The City’s fiduciary funds include the following fund type:
Agency funds account for assets the City holds for others in an agency capacity. They are
custodial in nature and do not present results of operations of the City or have a
measurement focus. Agency funds are accounted for using the accrual basis of accounting.
The City serves as an agent for various School Activity funds.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the City’s public services function and
various other functions of the government. Elimination of these charges would distort the direct costs
and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the City’s proprietary fund are charges to customers for sales and services. Operating expenses include
the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as nonoperating revenues and expenses.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
D. Assets, Liabilities, Deferred Inflows/Outflows and Equity
1. Deposits and Investments
Cash includes amounts in demand deposits as well as short-term investments with a maturity date
within three months of the date acquired by the City.
State statutes authorize the City to invest in obligations of the U. S. Treasury, commercial paper,
corporate bonds and repurchase agreements. City policy prohibits the investment in so-called “derivative instruments”.
Investments are reported at fair value. Fair value is measured using a hierarchy established by
generally accepted accounting principles. Level 1 investments are based on quoted prices in active
markets for identical assets, Level 2 investments are based on significant other observable inputs and
Level 3 investments are based on significant unobservable inputs. 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
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
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.
Major outlays for capital assets and improvements are capitalized as projects are constructed. If material,
interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.
Property, plant, and equipment of the primary government is depreciated using the straight-line method over the assets' estimated useful lives.
The range of useful lives used to compute depreciation are as follows:
Buildings 25 – 50 years
Equipment 5 – 20 years
Infrastructure 10 – 50 years
Airport Operational 5 – 40 years
Parking Structures 10 – 20 years
5. Deferred Inflows/Outflows of Resources
In addition to assets and liabilities, the statement of net position will sometimes report separate
sections for deferred outflows and inflows of resources. These separate financial statement elements
represent a consumption or acquisition of net position that applies to a future period(s) and so will not
be recognized as an outflow of resources (expense) or inflow of resources (revenue) until that time.
The governmental funds only report a deferred inflow of resources, unavailable revenue from property
taxes. These amounts are deferred and recognized as an inflow of resources in the period that the
amounts become available. The governmental activities have deferred outflows and inflows that relate
to the net pension liability, which include the City’s contribution subsequent to the measurement date,
which is recognized as a reduction of the net pension liability in the subsequent year. They also
include changes in assumptions, differences between expected and actual experience, changes in
proportion and differences between the City’s contributions and proportionate share of contributions,
which are deferred and amortized over the average expected remaining service lives of active and
inactive members in the plan. They also include the net difference between projected and actual
earnings on pension plan investments, which is deferred and amortized over a five-year period. In
addition, the governmental activities and governmental funds have deferred outflows that related to
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.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
6. Compensated Absences
Accumulated vacation or compensatory time or vested sick leave of governmental funds that is
expected to be liquidated with expendable available resources is reported as an expenditure in
respective fund financial statements only if the liability has matured, for example, as a result of employee resignations and retirements. All accumulated leave, including that which is not expected to
be liquidated with expendable available financial resources, is reported in the government-wide
financial statements. Accumulated leave of Enterprise Funds is recorded as an expense and liability of the respective fund as the benefits accrue to employees. No liability is recorded for non-accumulating
rights to receive sick pay benefits.
7. Long-term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type statement of net position.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-
line method. Bonds payable are reported net of the applicable bond premium or discount, if material.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
during the current period. The face amount of debt is reported as other financing sources. Premiums
received on debt issuances are reported as other financing sources while discounts on debt issuances
are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt
proceeds received, are reported as debt service expenditures.
8. Fund Equity
In the fund financial statements, governmental funds report fund balances in one of five possible
classifications. Classification is based primarily on the extent to which the City is bound to honor
constraints on the specific purposes for which the funds can be spent. The categories are as follows:
Nonspendable fund balance cannot be spent. Restricted fund balances are subject to externally enforceable legal restrictions.
Committed fund balances are subject to limitations the City Council has imposed, that are binding
unless removed or modified by the passage of a Council Order. Assigned fund balances reflect the intended use of the resources. The City Council adopted a
comprehensive fund balance policy which authorized itself and the Finance Director and City
Manager, within defined limits, with the authority to assign fund balances. Unassigned fund balances are resources which have not been classified in any other category.
Only the General Fund can report a positive unassigned fund balance amount.
Should there be multiple sources of funding available for a particular purpose, it is the City’s policy to
expend currently budgeted resources first, then use other sources in the order of restricted, then
committed, then assigned, then unassigned amounts.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
9. Allowance for Uncollectible Accounts and Loans
Allowances for uncollectible accounts are maintained for all types of receivables, which historically
experience uncollectible accounts. Allowances for uncollectible loans are established when the City
determines its ability to collect the outstanding loan balance has been impaired. 10. Pensions
For purposes of measuring the net pension liability (MePers liability), deferred outflows of resources
and deferred inflows of resources related to pensions, and pension expense, information about the
fiduciary net position of the Maine Public Employees Retirement System Consolidated Plan for Participating Local Districts (PLD Plan) and Maine Public Employees Retirement System State Employee
and Teacher Plan (SET Plan) and additions to/deductions from the Plan’s fiduciary net position have
been determined on the same basis as they are reported by the Plans. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
11. Use of Estimates
Preparation of the City’s financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
items at the date of the financial statements and the reported amounts of revenues and
expenses/expenditures during the reporting period. Actual results could differ from those estimates.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 37
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.
Maine Public Employees Retirement contributions are made by the State of Maine on behalf of the School Department. These amounts have not been budgeted in the General Fund and result in a
difference in reporting on a budgetary basis of accounting vs. reporting under accounting principles
generally accepted in the United States of America of $2,974,057. These amounts have been included as intergovernmental revenue and education expenditures in the general fund on the Statement of
Revenues, Expenditures and Changes in Fund Balances (Exhibit 4) and in the entity-wide Statement of
Activities (Exhibit 2). There is no effect on fund balance or net position at the end of the year.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 38
Excess of revenues and other financing sources over
expenditures and other financing uses (Budget)1,506,712$
Activity in assigned fund balance 1,192,998
2016 encumbrances 1,930,757
2015 encumbrances paid (1,272,378)
2015 encumbrances lapsed (663)
Excess of revenues and other financing sources
over expenditures and other uses (GAAP)3,357,426$
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY, CONTINUED
B. Reconciliation of Budgetary Basis Statements
The following schedule reconciles the General Fund amounts on the Statement of Revenues,
Expenditures, and Changes in Unassigned Fund Balance—Budget and Actual—Budgetary Basis to the amounts on the Statement of Revenues, Expenditures, and Changes in Fund Balances, Governmental
Funds:
C. Excess of Expenditures Over Appropriations
The following General Fund departments were over-expended by the indicated dollar amounts;
Executive $155,882, Assessing $11,694, Legal $2,276, Insurance $1,215, Health and Community
Services $70,327, Parks and Recreation $69,490, Other Agencies $1,095 and Tax Increment Financing
Payments $4,984. These over-expenditures were funded by receipt of revenues in excess of
appropriations and under-expenditures within other General Fund departments.
D. Deficit Fund Equity
The Community Development Block Grant Fund has a deficit fund equity of $3,153 due to accrued
expenses reimbursed in the subsequent year.
E. Restricted Assets
Donations received by the City whose use is limited are placed in the appropriate Special Revenue
fund, depending upon whether or not the principal can be expended. All changes in market value are
added to the earnings, which is allowable by State Statute. As these amounts are invested in a note
receivable, there was no change in market value for fiscal year 2016.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 39
Investment types Rating Fair Value Not Applicable <1 1-5 6-10
Mutual Funds 13,352,673$ 13,352,673$ -$ -$ -$
Repurchase Agreements 7 7 - - -
US Treasuries AA 4,107,715 - - 3,045,910 1,061,805
Corporate Bonds BBB 200,495 - - 200,495 -
Common Stock 385,647 385,647 - - - Certificate of Deposit 50,000 - 50,000 - -
Totals 18,096,537$ 13,738,327$ 50,000$ 3,246,405$ 1,061,805$
Maturity (years)
Level 1 Level 2 Level 3
Investment types Fair Value Inputs Inputs Inputs
Mutual Funds 13,352,673$ 13,352,673$ -$ -$
US Treasuries 4,107,715 4,107,715 - -
Corporate Bonds 200,495 200,495 - -
Common Stock 385,647 385,647 - -
Totals 18,046,530$ 18,046,530$ -$ -$
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, 2016, $0 of the City’s bank
balance of $26,921,389 was exposed to custodial credit risk because it was uninsured and
uncollateralized.
Fair Value – Investments
The City of Bangor categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical
assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant
unobservable inputs.
At June 30, 2016, 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.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 40
DETAILED NOTES ON ALL FUNDS, CONTINUED
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 cannot 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, 2016, the City had no investments that were subject to
custodial risk. The City’s investment policy states that all security transactions, including collateral for
repurchase agreements, entered into by the City shall be conducted on a “delivery vs. payment” basis.
Securities will be held by a third party custodian, or trust department, designated by the Treasurer and
evidenced by safekeeping receipts.
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 16, 2015, on the assessed value listed as of the
prior April 1 for all real and personal property located in the City. Assessed values are periodically
established by the City's Assessor at 100% of assumed market value. Taxes were due in two
installments: September 15, 2015 and March 15, 2016. 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.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 41
Balance Balance
June 30, 2015 Increases Decreases June 30, 2016
Governmental activities:
Capital assets, not being depreciated:
Land 5,092,368$ -$ -$ 5,092,368$
Construction in process 2,884,303 2,723,771 3,796,718 1,811,356
Total capital assets not being depreciated 7,976,671 2,723,771 3,796,718 6,903,724
Capital assets, being depreciated:
Land improvements 11,309,931 626,411 - 11,936,342
Buildings and improvements 72,176,984 286,140 1,182,745 71,280,379
Machinery and equipment 11,851,522 357,534 - 12,209,056
Vehicles 18,838,005 828,794 1,735,870 17,930,929
Infrastructure 22,944,937 1,121,937 516 24,066,358
Total capital assets being depreciated 137,121,379 3,220,816 2,919,131 137,423,064
Less accumulated depreciation for:
Land improvements (4,777,278) (509,266) - (5,286,544)
Buildings and improvements (28,469,804) (1,481,340) (395,473) (29,555,671)
Machinery and equipment (10,166,041) (453,387) - (10,619,428)
Vehicles (11,473,915) (1,152,903) (1,424,660) (11,202,158)
Infrastructure (11,887,614) (355,342) (490) (12,242,466)
Total accumulated depreciation (66,774,652) (3,952,238) (1,820,623) (68,906,267)
Total capital assets being depreciated, net 70,346,727 (731,422) 1,098,508 68,516,797
Governmental activities capital assets, net 78,323,398$ 1,992,349$ 4,895,226$ 75,420,521$
Balance Balance
June 30, 2015 Increases Decreases June 30, 2016Business-type activities:
Capital assets, not being depreciated:
Land 3,615,996$ -$ 19,722$ 3,596,274$
Construction in process 12,567,617 12,883,717 3,095,898 22,355,436
Total capital assets not being depreciated 16,183,613 12,883,717 3,115,620 25,951,710 Capital assets, being depreciated:
Land improvements 2,876,243 - - 2,876,243
Buildings and improvements 102,923,544 360,729 864,385 102,419,888
Machinery and equipment 8,620,529 532,233 29,509 9,123,253 Infrastructure 59,630,887 1,354,626 - 60,985,513
Airport operational assets 268,808,921 2,192,405 - 271,001,326
Parking structures 11,320,359 10,952 - 11,331,311
Total capital assets being depreciated 454,180,483 4,450,945 893,894 457,737,534
Less accumulated depreciation for:Land improvements (1,689,419) (59,337) - (1,748,756)
Buildings and improvements (32,972,069) (3,865,370) (321,095) (36,516,344)
Machinery and equipment (5,567,839) (483,541) (29,509) (6,021,871)
Infrastructure (13,517,766) (609,241) - (14,127,007)
Airport operational assets (177,461,782) (8,215,781) - (185,677,563) Parking structures (8,883,209) (270,412) - (9,153,621)
Total accumulated depreciation (240,092,084) (13,503,682) (350,604) (253,245,162)
Total capital assets being depreciated, net 214,088,399 (9,052,737) 543,290 204,492,372
Business-type activities capital assets, net 230,272,012$ 3,830,980$ 3,658,910$ 230,444,082$
DETAILED NOTES ON ALL FUNDS, CONTINUED
C. Capital Assets
Capital asset activity for the year ended June 30, 2016 was as follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 42
Receivable Payable
General Fund 8,251,179$ -$
Grant Fund - 227,830
Airport Fund - 6,225,775
Bass Park Fund - 1,797,574
8,251,179$ 8,251,179$
Governmental Activities:
General government 1,344,521$
Public safety 788,523
Health, community services and recreation 95,663
Public services 523,277
Education 1,200,254
Total depreciation expense - governmental activities 3,952,238$
Business-type activities:
Sewer Utility Fund 1,816,315$
Airport Fund 8,215,781
Bass Park Fund 2,954,048
Stormwater 8,246
Economic Development Fund 169,950
Parking Fund 270,412
Municipal Golf Course 68,930
Total depreciation expense - business-type activities 13,503,682$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Depreciation expense was charged to functions/programs of the primary government as follows:
Construction commitments
The government has active construction projects as of June 30, 2016. The projects include traffic flow improvements of $1.7 million, reconstruction of runways, terminal redesign and renovations amounting
to $2.1 million, and $2.1 million of sewer combined overflow projects and plant upgrades.
D. Interfund Transactions
Individual fund interfund receivable and payable transactions are described in the Summary of
Significant Accounting Policies Note D. 2. As of June 30, 2016 the balances were as follows:
Individual fund transfers to and from other funds for the fiscal year ended June 30, 2016 are
comprised primarily of transfers from fund balances to fund capital projects and to provide operating
subsidies to certain proprietary funds.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 43
Federal State of
Government Maine Other Total
General Fund 777,232$ 2,403,605$ 525,896$ 3,706,733$
Community Development 93,672 - - 93,672
Nonmajor Special Revenue Funds 165,263 26,564 - 191,827
Capital Projects Fund 11,034 502,091 - 513,125
Airport Fund 2,420,728 448,196 - 2,868,924
Transfers to Transfers from
General Fund 1,527,822$ 121,822$
Arena Fund 2,150,821 -
Other Nonmajor Special Revenue Funds 200,464 3,155
Capital Projects Fund 116,305 1,878,286
Other Nonmajor Permanent Funds 20,000 -
Bass Park Fund - 2,150,821
Sewer Fund - 177,998
Stormwater Utility Fund 270,000 77,398
Parking Fund - 10,500
Municipal Golf Course Fund 26,570 -
Airport Fund 107,998 -
4,419,980$ 4,419,980$
DETAILED NOTES ON ALL FUNDS, CONTINUED
E. Due From Other Governments
Due from other governments is comprised of the following amounts at June 30, 2016:
Amounts due from Federal Government are comprised of operating and capital grants for all fund
types. Of the General Fund’s $2,403,605 due from State of Maine, $1,463,339 represents school grant
and State agency billings, and $414,506 represents general assistance claims. Amounts owed to the
Capital Projects and the Airport Funds by the State of Maine are for capital grant purposes. Amounts
due from other communities for tuition reimbursement to Bangor account for $189,535 of the Due
from Other in the General Fund.
F. Leases
Operating Leases
The Airport and Economic Development Proprietary Funds are the lessors of various buildings and land
parcels under operating leases expiring in various years through 2048 and 2036, respectively.
Minimum future rentals to be received on noncancelable leases as of June 30, 2016 are:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 44
Fiscal year ending Economic
June 30,Airport Development
2017 1,726,971$ 1,332,955$
2018 1,078,323 1,273,621
2019 844,549 316,988
2020 642,848 276,040
2021 577,973 263,752
Subsequent to 2022 3,649,542 2,742,722
8,520,206$ 6,206,078$
Economic
Airport Development
Land 565,532$ 2,717,047$
Buildings 22,886,327 3,522,628
Less accumulated depreciation (17,976,197) (1,430,834)
Total 5,475,662$ 4,808,841$
Governmental Business-type
Fiscal Year ending June 30,Activities Activities
2017 237,574 10,074
2018 142,005 10,074
2019 47,130 7,929
2020 - 2,937
Total minimum lease payments 426,709 31,014
Less: amount representing interest (18,022) (1,804)
Present value of future minimum lease payments 408,687$ 29,210$
Governmental Business-type
Activities Activities
Machinery and equipment 630,581$ 52,837$
Less accumulated depreciation (395,007) (20,401)
Carrying value 235,574$ 32,436$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Minimum future rentals do not include contingent rentals, which may be received as stipulated in the
lease contracts. The Airport received $1,883,975 in contingent rentals in fiscal year 2016.
The carrying amounts of the leased assets are as follows:
Capital Leases
The City entered into several leases for financing the acquisition of heavy equipment and office
equipment. These lease agreements qualify as capital leases for accounting purposes whereas they
contain a bargain purchase option. Leased equipment below the City’s capitalization policy has not
been capitalized. The following is an analysis of the carrying value of the leased capitalized equipment
as of June 30, 2016:
The following is a schedule of the future minimum lease payments under these capital leases, and the
present value of the net minimum lease payments at June 30, 2016:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 45
Sewer Utility
Fund
Due from bond trustee 681,946$
Total 681,946$
Bonds and notes payable at June 30, 2015 145,681,059$
Add: principal additions 4,214,000
Less: principal repayments 9,150,822
Bonds and notes payable at June 30, 2016 140,744,237$
DETAILED NOTES ON ALL FUNDS, CONTINUED
G. Other Assets
Other assets are comprised of the following:
H. Unearned Revenue
Community Development Block Grant and Capital Projects Fund unearned revenues consist of $49,764
and $200,838 in advance deposits, respectively. Bass Park Fund unearned revenues consist of
$1,048,703 in advance sales.
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 $192,231,948. The following is a summary
of general obligation bond and note transactions of the City for the fiscal year ended June 30, 2016:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 46
Fiscal year Interest Business-type Total
Long-term debt of maturity rate City School Activities June 30, 2016
Combined sewer overflow 2017 3.52%- - 191,203 191,203
Combined sewer overflow 2018 3.03%- - 301,404 301,404
Tax increment financing note*2018 4.50%36,189 - - 36,189
Maine Business Enterprise Park 2018 5.00%- - 38,770 38,770
Public improvements note*2020 4.50%293,115 - - 293,115
Pension obligation bonds 2026 3.06% - 6.45%19,770,707 1,267,365 4,250,211 25,288,283
Combined sewer overflow 2023 1.94%- - 1,150,461 1,150,461
Briggs building note 2023 4.50%- - 611,511 611,511
Combined sewer overflow 2025 1.41%- - 1,318,942 1,318,942
Chancellor's property note 2026 5.00%- - 1,394,126 1,394,126
Public improvements/refunding 2026 4.00% - 4.20%279,657 - 30,343 310,000
Combined sewer overflow 2027 1.64%- - 1,179,911 1,179,911
Public improvements - 2007 2027 4.00%1,755,000 - - 1,755,000
Combined sewer overflow 2028 1.81%- - 1,284,856 1,284,856
Public improvements - 2009 2029 2.00% - 4.375%2,015,000 - - 2,015,000
ARRA - CWSRF 2029 0.00%- - 629,790 629,790
ARRA - CWSRF 2030 0.00%- - 359,632 359,632
Public improvements/refunding 2020 2.00% - 3.25%1,644,702 3,120,000 415,298 5,180,000
Public improvements/refunding 2021 2.00% - 3.25%1,000,192 - 2,284,808 3,285,000
Qualified school construction bond 2028 4.65%- 5,605,861 - 5,605,861
Refunding/public improvements 2022 2.00% - 2.25%1,479,792 1,329,950 870,258 3,680,000
Arena 2043 3.25% - 5.00%- - 51,795,000 51,795,000
Qualified school construction bond 2035 4.05%- 2,800,000 - 2,800,000
Refunding/public improvements 2032 2.00% - 4.00%6,341,945 - 1,313,055 7,655,000
Refunding/airport improvements 2033 .50% - 4.25%- - 3,890,000 3,890,000
Public improvements 2034 2.00% - 4.00%6,340,000 1,080,000 270,000 7,690,000
Combined sewer overflow 2034 0.10%- - 2,376,183 2,376,183
Public improvements 2030 2.00% - 2.75%2,535,000 360,000 - 2,895,000
Airport improvements 2035 3.00% - 3.65%- - 1,520,000 1,520,000
Refunding/public improvements 2030 2.00% - 3.00%3,014,000 - 280,000 3,294,000
Airport improvements 2027 0.95% - 3.25%- - 920,000 920,000
Total bonds and notes payable 46,505,299$ 15,563,176$ 78,675,762$ 140,744,237$
* Notes aggregating $329,404 are held by the City's Airport Fund at fixed, taxable market rates of interest.
Governmental Activities
Fiscal year ending
June 30,Principal Interest Principal Interest
2017 7,084,002$ 2,226,585$ 3,898,764$ 2,706,676$
2018 5,469,808 2,005,662 3,835,937 2,592,153 2019 5,044,052 1,811,043 3,627,012 2,463,631
2020 5,116,641 1,614,642 3,735,504 2,335,343
2021 4,287,500 1,421,326 3,741,525 2,528,659
2022-2026 21,751,472 4,148,647 17,032,748 10,642,678 2027-2031 9,730,000 462,616 12,165,266 6,212,168
2032-2036 3,585,000 66,263 12,259,006 4,359,981
2037-2041 - - 12,625,000 2,345,050
2042-2043 - - 5,755,000 232,500
Total 62,068,475$ 13,756,784$ 78,675,762$ 36,418,839$
Governmental Activities Business-type Activities
DETAILED NOTES ON ALL FUNDS, CONTINUED
Bonds and notes payable at June 30, 2016 are comprised of the following:
Annual debt service requirements to maturity for general obligation bonds and notes payable are as
follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 47
DETAILED NOTES ON ALL FUNDS, CONTINUED
Legal Debt Margin
The City is subject to the laws of the State of Maine, which limits the amount of long-term debt to 15%
of the state’s assessed valuation of the City. At June 30, 2016, the statutory limit for the City was
$383,182,500. The City’s outstanding long-term debt of $140,744,237 at June 30, 2016 was within the statutory limit.
Refunding
The City issued $1,555,000 in public improvement general obligation bonds with interest rates ranging
from 2.00% - 3.00%. The proceeds were used subsequent to year end to redeem the 2007 general
obligation bonds maturing on or after September 1, 2017. The 2007 general obligation bonds had an
interest rate of 4.00%. This redemption did not extend the final maturity date of the debt and resulted
in a reduction of total debt service payments over 10 years of $226,839 and an economic gain of
$219,502 (difference between the present value of the debt service payments on the old and new
debt).
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, 2016, $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 $1,590,000 in general obligation
bonds to provide funding for remediation of the Penobscot River. As of June 30, 2016, no debt for this
purpose had been issued. The City will continue to monitor when and if the debt will be issued.
On August 10, 2015 and February 24, 2016, the City Council authorized the issuance of up to $3,870,000 and $2,145,000, respectively, in general obligation bonds through the Maine Municipal
Bond Bank State Revolving Fund to finance sewer infrastructure improvements. The City issued a
portion of this debt subsequent to year end (refer to Note F - Subsequent Events for additional information).
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 48
Balance Balance Due within
June 30, 2015 Additions Reductions June 30, 2016 one year
Governmental activities:
General obligation debt 64,518,015$ 3,014,000$ 5,463,540$ 62,068,475$ 7,084,002$
Accrued compensated absences*2,625,542 1,556,610 2,047,138 2,135,014 1,313,422
Capital leases 549,636 61,151 202,100 408,687 227,164
Bond premium 629,383 - 62,101 567,282 53,728
Net OPEB obligation*2,703,186 420,457 196,147 2,927,496 -
Net pension liability 3,836,882 2,400,428 - 6,237,310 -
Self insurance liability 2,021,088 632,736 393,875 2,259,949 670,433
Governmental activities
long-term liabilities 76,883,732$ 8,085,382$ 8,364,901$ 76,604,213$ 9,348,749$
Business-type activities:
General obligation debt 81,163,044$ 1,200,000$ 3,687,282$ 78,675,762$ 3,898,764$
Accrued compensated absences*537,807 470,433 424,524 583,716 358,689
Capital leases 33,082 - 3,872 29,210 9,184
Bond premium 2,456,777 - 90,712 2,366,065 90,711
Net OPEB obligation*800,689 121,879 56,857 865,711 -
Net pension liability 649,637 2,525,510 1,633,371 1,541,776 -
Self insurance liability 225,365 225,763 139,913 311,215 149,630
Other 156,498 - - 156,498 -
Business-type activities
long-term liabilities 86,022,899$ 4,543,585$ 6,036,531$ 84,529,953$ 4,506,978$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2016, 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 - 49
As of June 30, 2016, fund balances components consisted of the following:
Nonspendable Restricted Committed Assigned
General Fund:
Advances to other funds 1,900,500$ -$ -$ -$
Inventory and prepaid items 1,238,139 - - -
PEG capital support - 19,830 - -
School capital - 356,039 - -
School Department
Regular - 423,054 - -
Adult education - 29,185 - -
General evening - 101,428 - -
Reading assessment - 247 - -
Special revenue - 123,797 - -
School lunch - 8,423 - -
Trust and agency - 312,094 - -
Cultural Commission/Public Safety - - 5,406 -
Subsequent year expenditures - - - 244,899
Pooled equipment reserve - - - 350,777
Bus equipment reserve - - - 551,548
Fire equipment reserve - - - 357,098
Self insurance reserve - - - 2,259,948
Improvement reserve - - - 1,162,726
Demolition reserve - - - 52,630
Benefit reserve - - - 733,457
Parks & Recreation reserve - - - 41,763
Subtotal 3,138,639 1,374,097 5,406 5,754,846
Arena Fund - - 587,141 -
Capital Projects Fund - - - 7,169,264
Other Governmental Funds:
Nonexpendable trust principal 532,338 - - -
Nonmajor Special Revenue Funds
Infrastructure - 444,146 - -
Public Safety - 190,572 - -
Transportation - 82,952 - -
Economic Develop - 274,538 - -
Parks - 528,895 - -
Health - 47,547 - -
Other Municipal - 64,716 - -
Nonmajor Permanent Funds
Cemetery - 107,219 - -
Missionary - 89,503 - -
Education - 111,592 - - Other Municipal - 197,693 - -
Subtotal 532,338 2,139,373 - -
Total 3,670,977$ 3,513,470$ 592,547$ 12,924,110$
DETAILED NOTES ON ALL FUNDS, CONTINUED
J. Fund Balances
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 50
Governmental Business-type
Capital assets 144,326,788$ 483,689,244$
Accumulated depreciation (68,906,267) (253,245,162)
Bonds payable (62,068,475) (78,675,762)
Capital leases (408,687) (29,210)
Non capital related bonds payable 32,405,843 8,509,731
Non capital related capital leases 244,465 -
Premium on long term debt (567,282) (2,366,065)
Unspent bond proceeds 2,765,868 1,655,017
Net investment in capital assets 47,792,253$ 159,537,793$
DETAILED NOTES ON ALL FUNDS, CONTINUED
Encumbrances at year end were $1,930,757 for General Fund, $2,586,804 for Capital Projects Fund,
$2,053,760 for Airport Fund, $2,218,161 for Sewer Utility Fund and $23,824 for the Stormwater Fund. K. Net Position
Net position represents the difference between assets and deferred inflows and liabilities and deferred
outflows. Net investment in capital assets consists of capital assets, net of accumulated depreciation,
reduced by the outstanding balance of bonds and capital leases payable and adding back any unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either
through the enabling legislations adopted by the City of through external restrictions imposed by
creditors, grantors or laws or regulations of other governments. The City’s net investment in capital
assets was calculated as follows at June 30, 2016:
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, 2016, 2015 and 2014.
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, 2016, the amount of self-insurance liabilities was $2,571,164. This liability is the City’s best estimate based on available information.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 51
Workers'All other self-
Compensation insured risks Total
Unpaid claims as of July 1, 2014 1,899,395$ 313,357$ 2,212,752$
Incurred claims 361,719 - 361,719
Payments (552,255) - (552,255)
Changes in estimates and other adjustments 224,731 (494) 224,237
Unpaid claims as of July 1, 2015 1,933,590 312,863 2,246,453
Incurred claims 239,912 - 239,912
Payments (533,741) (46) (533,787)
Changes in estimates and other adjustments 618,167 419 618,586
Unpaid claims as of July 1, 2016 2,257,928$ 313,236$ 2,571,164$
OTHER INFORMATION, CONTINUED
Changes in the reported liabilities since July 1, 2014 resulted from the following:
B. Tax Increment Financing Districts
The City has established tax increment financing districts, all of which dedicate a portion of the
incremental increase in real estate and/or personal property tax revenues over staggered twenty year
periods for the following purposes:
B.I.A. Municipal Development District No. 1 – Partially financed $27.5 million dollars of capital
expenditures at manufacturing facilities leased by General Electric Company.
Main Street Municipal Development District – Assisted Penobscot Development Limited Liability
Company in financing the extraordinary costs of acquisition and environmental remediation of the
former Gasworks site on Main Street, ultimately to provide land area necessary for the construction of a 54,000 square foot supermarket in a Community Development project area.
Pickering Square Municipal Development District – Assisted Realty Resources Chartered in a major
redevelopment project that converted the former Freese’s department store building into affordable
housing units.
Hammond Street Courtyard Municipal Development District - Assisted Hammond Street Courtyard LP
with the rehabilitation and reuse of the former Bangor Furniture store and office buildings.
Downtown Municipal Development District – To partially finance in excess of $70 million dollars of
infrastructure improvements within the boundaries of the district.
Penjajawoc Marsh/Mall Area Traffic Infrastructure District – To partially finance traffic infrastructure
improvements in the Bangor Mall area and environmental improvement projects in the Penjajawoc
Marsh/Bangor Mall area.
Maine Hall Affordable Housing Development District – To partially fund conversion of the former
Bangor Seminary property into affordable housing units.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 52
OTHER INFORMATION, CONTINUED
C. Contingent Liabilities
In 2002, the City filed suit against Citizens Communication Company (Citizens), a potentially responsible party to force cleanup of contamination of the Penobscot River bottom due to the inability
to reach settlement. In July 2007, the City reached a settlement agreement with Citizens, whereby the
City received $7.625 million to be held in escrow and applied to the cost of remediation. A Consent
Decree has been negotiated with the Maine Department of Environmental Protection (DEP). The
remediation of the primary active zone has been completed. The City continues to work with State
and Federal agencies. The City plans to complete the remediation of the majority of the secondary
active zone in the fall of 2017.
In November 2015, the City entered into a consent decree with the Federal Environmental Protection
Agency (EPA) pursuant to which the City is required to (1) implement a capacity management
operations and maintenance program for the sewer collection system, (2) implement a municipal
separate storm sewer system illicit discharge detection and elimination program, (3) develop and
implement a Phase II long-term control plan for the combined sewer overflow program, and (4)
otherwise take such measures as are necessary to achieve and maintain compliance with the Clean
Water Act and permits required of the City thereunder. A complete copy of the Consent Decree is
available at the Wastewater Treatment Plant page of the City’s website www.bangormaine.gov.
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
materially adverse effect on the financial condition of the City.
D. Retirement
The City of Bangor provides retirement pensions for its employees through a number of vehicles,
including a defined contribution plan, defined benefit pension plan and social security.
Defined Contribution Plan
Description of the Plan - The City provides pension benefits for certain employees through a 401(a)
defined contribution plan administered by ICMA/RC. In addition, certain full-time employees are
covered through both a 401 (a) and 457 Deferred Compensation Plans (DCP) also administered by
ICMA/RC. In a DCP, benefits depend solely on amounts contributed to the plan plus investment
earnings. Covered employees are eligible to participate and are fully vested from the date of
employment. The authority to establish and amend plan provisions or requirements rests with the City.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 53
OTHER INFORMATION, CONTINUED
Funding Policy – Plan members not covered by employment contracts are required to contribute 6.5%
of their annual covered salary and the City is required to contribute either 8% or 10% depending upon the employee’s classification. For fiscal year 2016 covered payroll was $18,971,630 and City
contributions were $1,640,040. 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 $395,662 and $47,278
respectively, in fiscal year 2016.
Defined Benefit Pension Plan
Description of the Plan – For certain employees the City contributes to the Maine Public Employees
Retirement System Consolidated Plan for Local Participating Districts (PLD Plan) and Maine Public
Employees Retirement System State Employee and Teacher Plan (SET Plan), cost sharing multiple-
employer defined benefit pension plans, administered by the Maine Public Employers Retirement
System (MPERS). Benefit terms are established in Maine statute. MPERS issues a publicly available
financial report that can be obtained at www.mainepers.org.
Benefits Provided – The PLD and SET Plans provide defined retirement benefits based on members’
average final compensation and service credit earned as of retirement. Vesting (i.e. eligibility for
benefits upon reaching qualification) occurs upon the earning of five years of credit service. In some
cases, vesting occurs on the earning of one year of service credit immediately preceding retirement at
or after normal retirement age. For PLD members, normal retirement age is 60 or 20 or 25 years of
service for certain public safety employees. For SETP members, normal retirement age is 60, 62 or 65.
The normal retirement age is determined by whether a member had certain creditable service
requirements on specific dates, as established by statute. The monthly benefit of members who retire before normal retirement age by virtue of having at least 25 years of service credit is reduced by a
statutorily prescribed factor for each year of age that a member is below his/her normal age at
retirement. MPERS also provides disability and death benefits, which are established by contract under applicable statutory provisions (PLD Plan) or by statute (SET Plan).
Contributions – Employee contribution rates are defined by law of Board rule and depend on the terms
of the plan under which an employee is covered. Employer contributions are determined by actuarial
valuations. The contractually required contribution rates actuarially determined as an amount that,
when combined with employee contributions, is expected to finance the costs of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability.
PLD Plan – Employees are required to contribute 7.5% of their annual pay. The City’s
contractually requirement contribution rate for the year June 30, 2016 ranged from 8.9% -
14% depending on the applicable benefit structure. The City’s contributions to the pension
plan were $779,134 for the year ended June 30, 2016.
SET Plan – Maine statute requires the State to contribute a portion of the City’s contractually
required contributions. Employees are required to contribute 7.65% of their annual pay. The
City’s contractually required contribution rate for the year ended June 30, 2016 was 13.38% of
annual payroll of which 3.36% of payroll was required from the City and 10.02% was required
from the State. Contributions to the pension plan from the City were $843,679 for the year
ended June 30, 2016.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 54
Deferred Deferred
Outflow of Inflow of
Resources Resources
Differences between expected and
actual experience -$ 814,548$
Changes of assumptions 556,705 -
Net Difference between projected and actual
earnings on pension plan investments 2,257,333 -
Changes in proportion and differences
between City contributions and - 173,720
proportionate share of contributions
City contributions subsequent to the
measurement date 1,622,813 -
4,436,851$ 988,268$
OTHER INFORMATION, CONTINUED
Pension Liabilities, Expense and Deferred Outflows and Inflows of Resources – The net pension
liabilities were measured as of June 30, 2015, and the total pension liabilities used to calculate the net
pension liabilities were determined by actuarial valuations as of that date, The City’s proportion of the net pension liabilities were based on projections of the City’s long-term share of contributions to the
pension plans relative to the projected contributions of all participating local districts (PLD Plan) and of
all participating School Administrative Units and the State (SET Plan), actuarially determined.
PLD Plan – At June 30, 2016, the City’s reported liability of its proportionate share of the net
pension liability was $6,299,478. At June 30, 2015, the City’s proportion of the PLD plan was
1.9745%.
SET Plan – At June 30, 2016, the City’s reported liability of its proportionate share of the net
pension liability was reduced to reflect the State support provided to the City. The amount
recognized by the City as its proportionate share of the net pension liability, the related State
support, and the total portion of the net pension liability associated with the City were as
follows:
City’s proportionate share of the net pension liability $1,479,608
State’s proportionate share of the net pension liability $28,378,344
Total $29,857,952
At June 30, 2015, the City’s proportion of the SET Plan was .1096%.
For the year ended June 30, 2016, the City recognized pension expense of $4,832,999 for the PLD Plan
and $3,681,732 and revenue of $2,561,417 for support provided by the State for the SET Plan. At June
30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 55
OTHER INFORMATION, CONTINUED
$1,622,813 is reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension liabilities in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended June 30:
2017 $451,285
2018 405,076
2019 405,076
2020 564,333
Actuarial assumptions - The total pension liability in the June 30, 2015 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
PLD Plan SET Plan
Inflation 3.5% 3.5% Salary Increases, per year 3.5% to 9.5% 3.5% to 13.5%
Investment return, per annum, compounded annually 7.125% 7.125%
Cost of living benefit increases, per annum 2.55% 2.55%
Mortality rates were based on the RP2000 Combined Mortality Table projected forward to 2015 using
Scale AA.
The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an
actuarial experience study for the period July 1, 2005 to June 30, 2010.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best-estimate ranges of expected future real rates of return (expected returns,
net of pension plan investment expense and inflation) are developed for each major asset class. These
ranges are combined to produce the long-term expected rate of return by weighting the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the pension
plan’s target asset allocation as of June 30, 2015 are summarized in the following table:
Long-Term Expected
Asset Class Target Allocation Real Rate of Return
US equities 20% 5.2%
Non-US equities 20% 5.5%
Private equity 10% 7.6%
Real estate 10% 3.7%
Infrastructure 10% 4.0% Hard assets 5% 4.8%
Fixed income 25% 0.7%
Total 100%
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 56
OTHER INFORMATION, CONTINUED
Discount rate - The discount rate used to measure the total pension liability was 7.125% for both the
PLD and SET Plans. The projection of cash flows used to determine the discount rates assumed that employee contributions will be made at the current contribution rate and that contributions from
participating local districts will be made at contractually required rates, actuarially determined. Based
on these assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liabilities.
Sensitivity of the City’s proportionate share of the net pension liabilities to changes in the discount rate
- The following presents the City’s proportionate share of the net pension liability calculated using the
discount rate of 7.125%, as well as what the City’s proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1-percentage-point lower (6.125% for PLD
and SET Plans) or 1 percentage-point higher (8.125% for PLD and SET Plans) than the current rate:
1% Current 1%
Decrease Discount Rate Increase
(6.125%) (7.125%) (8.125%)
PLD Plan $ 12,550,427 $ 6,299,478 $373,193
1% Current 1%
Decrease Discount Rate Increase
(6.125%) (7.125%) (8.125%)
SET Plan $ 2,590,444 $ 1,479,608 $ 554,410
Pension plan fiduciary net position - Detailed information about the pension plan’s fiduciary net position
is available in the separately issued MPERS financial report.
Payables to the pension plan - None as of June 30, 2016.
Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue (IRC) Section 457. The plan permits participating employees to defer a portion of their salary
until future years. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency.
Social Security
The City does not have a section 218 agreement to provide full social security coverage to its
employees. The City does provide full social security coverage to part-time, seasonal and temporary
employees under the Omnibus Budget Reconciliation Act of 1990, and Internal Revenue Service
regulations, which became effective July 1, 1991.
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 57
Annual required contribution (ARC)604,811$
Amortization adjustment to ARC (202,630)
Interest on net OPEB obligation 140,155
Annual OPEB cost 542,336$
June 30, 2014 June 30, 2015 June 30, 2016
Annual OPEB cost 550,729$ 547,590$ 542,336$
City contributions (235,369) (253,004) (253,004)
Increase in net OPEB obligation 315,360 294,586 289,332
Net OPEB obligation, beginning of year 2,893,929 3,209,289 3,503,875
Net OPEB obligation, end of year 3,209,289$ 3,503,875$ 3,793,207$
Percentage contributed 42.74%46.20%46.65%
Governmental Business-type Total
Activities Activities June 30, 2016
Actuarial accrued liability (AAL)5,299,817$ 1,536,274$ 6,836,091$
Actuarial value of plan assets - - -
Unfunded actuarial accrued liability (UAAL)5,299,817$ 1,536,274$ 6,836,091$
Covered payroll 17,142,698$ 4,969,206$ 22,111,904$
UAAL as a percentage of covered payroll 30.92%
OTHER INFORMATION, CONTINUED
E. Other Postemployment Benefits
Description of the Plan - The City sponsors a single-employer post-retirement benefit plan providing
health insurance to retiring employees through CIGNA. CIGNA issues a publicly available financial
report that may be obtained through their website www.cigna.com. Full- time City employees age 50
or older and covered under the active medical plan are eligible to participate. Retirees that are
designated in a plan pay 100% of the coverage premium. A Medicare Supplement plan is available for
eligible retirees. For retirees without Medicare, coverage is available without a Medicare offset.
Funding Policy and Annual OPEB Cost - GASB Statement 45 does not mandate the prefunding of
postemployment benefits liability. The City currently plans to fund these benefits on a pay-as-you-go
basis. No assets have been segregated and restricted to provide postemployment benefits. The annual
required contribution (ARC), an actuarial determined rate, represents a level of funding that, if paid on
an ongoing basis, is projected to cover normal cost each year and amortize unfunded actuarial
liabilities over a period not to exceed thirty years. The following table represents the OPEB costs for
the year and the annual required contribution:
Funding Status and Funding Progress – The City’s annual OPEB cost, the net OPEB obligation and the
percentage of annual OPEB cost contributed to the plan for the years ending June 30, 2014, 2015 and 2016 are as follows:
The unfunded actuarial accrued liability as a percentage of covered payroll for June 30, 2016 is as
follows:
CITY OF BANGOR, MAINE Notes to the Financial Statements, Continued
II - 58
OTHER INFORMATION, CONTINUED
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events in the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are
compared to past expectations and new estimates are made about the future. The required schedule
of funding progress presented as required supplementary information provides multiyear trend information (only six years available) that shows whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Actuarial methods and assumptions – Projections of benefits are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits in force at
the valuation date and the pattern of sharing benefit costs between the City and plan members at that
point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that
are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of
plan assets. Significant methods and assumptions were as follows:
Actuarial valuation date 06/30/15
Actuarial cost method Projected unit credit cost method
Amortization method Level dollar
Amortization period 30 years - open
Actuarial assumptions:
Inflation rate 3.0%
Investment rate of return 4.0%
Payroll growth 3.0%
Healthcare cost trend rate 9.0% - 5.0%
Post retirement benefit increases 0.0% - retirees pay 100% of premium
F. Subsequent Events
On August 8, 2016 the City Council authorized the issuance of up to $8,003,000 in general obligation
bonds for the purpose of funding street and sidewalk work, bus replacement, the City’s annual
fleet/equipment replacement, WWTP infrastructure and school improvements.
On December 9, 2016, the City issued $4,280,000 in general obligation bonds through the Maine
Municipal Bond Bank State Revolving Fund, which were previously authorized, to finance sewer
infrastructure improvements.
II - 59
2009 2010 2011 2012 2013*2014 2015 2016
Actuarial Valuation Date 7/1/2008 7/1/2008 1/1/2011 1/1/2011 6/30/2013 6/30/2013 6/30/2015 6/30/2015
Governmental activities:Actuarial value of assets -$ -$ -$ -$ -$ -$ -$ -$ Actuarial accrued liability (AAL)8,488,427 8,488,427 3,407,638 3,430,307 5,284,045 5,213,644 5,310,515 5,299,817 Unfunded actuarial accrued liability (UAAL)8,488,427$ 8,488,427$ 3,407,638$ 3,430,307$ 5,284,045$ 5,213,644$ 5,310,515$ 5,299,817$ Funded ratio 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Covered payroll 16,257,319$ 17,224,485$ 17,369,969$ 17,175,024$ 16,901,784$ 16,098,456$ 16,550,206$ 17,142,698$
Business-type activities:Actuarial value of assets -$ -$ -$ -$ -$ -$ -$ -$ Actuarial accrued liability (AAL)2,710,336 2,710,336 1,095,160 1,072,491 1,587,047 1,657,448 1,525,576 1,536,274 Unfunded actuarial accrued liability (UAAL)2,710,336$ 2,710,336$ 1,095,160$ 1,072,491$ 1,587,047$ 1,657,448$ 1,525,576$ 1,536,274$ Funded ratio 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Covered payroll 5,190,927$ 5,439,647$ 5,582,428$ 5,369,798$ 5,053,806$ 5,117,794$ 4,754,453$ 4,969,206$
Primary government:Actuarial value of assets -$ -$ -$ -$ -$ -$ -$ -$
Actuarial accrued liability (AAL)11,198,763 11,198,763 4,502,798 4,502,798 6,871,092 6,871,092 6,836,091 6,836,091 Unfunded actuarial accrued liability (UAAL)11,198,763$ 11,198,763$ 4,502,798$ 4,502,798$ 6,871,092$ 6,871,092$ 6,836,091$ 6,836,091$ Funded ratio 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%Covered payroll 21,448,246$ 22,664,132$ 22,952,397$ 22,544,822$ 21,955,590$ 21,216,250$ 21,304,659$ 22,111,904$
UAAL as a percentage of covered payroll 52.21%49.41%19.62%19.97%31.30%32.39%32.09%30.92%
Only eight years have been presented because 2009 was the year GASB Statement 45 was implemented.* - restated to reflect the reduction in liability resulting from the City discontinuing employment of all employees in the Bass Park Fund.
Fiscal Year
CITY OF BANGOR, MAINE
Required Supplementary Information
Schedule of Funding Progress - Retiree Healthcare Plan
For the Fiscal Year Ended June 30, 2016
II - 60
CITY OF BANGOR, MAINE
Required Supplementary Information
Schedule of City's Proportionate Share of the Net Pension Liability
Maine Public Employees Retirement System Consolidated Plan (PLD) and State Employee and Teacher Plan (SET)Last 10 Fiscal Years*
2015 2016
PLD Plan
Proportion of the net pension liability 2.2584%1.9745%
Proportionate share of the net pension liability 3,475,288 6,299,478
Covered-employee payroll 9,799,964 8,662,976
Proportion share of the net pension liability
as a percentage of its covered-employee payroll 35.46%72.72%
Plan fidicuiary net position as a percentage of
the total pension liability 94.10%88.27%
SET Plan
Proportion of the net pension liability 0.0936%0.1096%
City's proportionate share of the net pension liability 1,011,232$ 1,479,608$
State's proportionate share of the net pension liability 22,516,392 28,378,344
Total 23,527,624 29,857,952
Covered-employee payroll 25,212,217 25,111,931
Proportion share of the net pension liability
as a percentage of its covered-employee payroll 4.01%5.89%
Plan fidicuiary net position as a percentage of
the total pension liability 83.91%81.18%
* The amounts presented for each fiscal year were determined as of the prior fiscal year. As 2015 is the first year of implementation, prior
years data is not available.
II - 61
CITY OF BANGOR, MAINE
Required Supplementary Information
Schedule of City's Contributions
Maine Public Employees Retirement System Consolidated Plan (PLD) and State Employee and Teacher Plan (SET)
Last 10 Fiscal Years
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
PLD Plan
Contractually required contributions 486,678 492,537 468,553 474,008 584,306 724,134 769,519 782,913 807,117 779,134
Contributions in relation to the
contractually required contribution 486,678 492,537 468,553 474,008 584,306 724,134 769,519 782,913 807,117 779,134
Contribution deficiency (excess)- - - - - - - - - -
Covered-employee payroll 15,026,926 15,210,573 14,618,061 14,731,041 14,777,273 13,201,233 11,867,248 10,645,005 9,799,964 8,662,976
Contributions as a percentage of
covered-employee payroll 3.24%3.24%3.21%3.22%3.95%5.49%6.48%7.35%8.24%8.99%
SET Plan*
Contractually required contributions - - - - - - - 647,014 668,126 843,679
Contributions in relation to the
contractually required contribution - - - - - - - 647,014 668,126 843,679
Contribution deficiency (excess)- - - - - - - - - -
Covered-employee payroll - - - - - - - 24,415,639 25,212,217 25,111,931
Contributions as a percentage of
covered-employee payroll - - - - - - - 2.65%2.65%3.36%
* - Until FY 2014, all employer contributions for the SET Plan were paid by the State of Maine
Notes to Required Supplementary Information
Change of benefit terms None
Changes of assumptions The PLD changed the discount rate from 7.25% in the 2014 valuation to 7.125% in the 2015 valuation.
The PLD changed the cost of living assumption to 2.55% in the 2015 valuation.
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GENERAL FUND
The General Fund is used to account for resources traditionally associated with the government, which are not required legally or by sound financial management, to be
accounted for in another fund.
II - 62
Schedule A-1
CITY OF BANGOR, MAINE
Balance Sheet
General FundJune 30, 2016
ASSETS
Cash and cash equivalents 12,014,827$
Investments 50,000
Receivables:
Taxes 2,670,489
Accounts (net of allowance of $465,108)1,016,994
Interfund 8,251,179
Intergovernmental 3,706,733
Loans 611,511
Inventory, at cost 568,474
Prepaid items 669,665
Total assets 29,559,872
LIABILITIES
Accounts payable 1,257,728
Accrued wages and benefits payable 4,271,124
Total liabilities 5,528,852
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - property taxes 2,442,797
Total deferred inflows of resources 2,442,797
FUND BALANCES
Nonspendable 3,138,639
Restricted 1,374,097
Committed 5,406
Assigned 5,754,846
Unassigned 11,315,235
Total fund balance 21,588,223
Total liabilities, deferred inflows of
resources and fund balances 29,559,872$
II - 63
Schedule A-2
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, 2016
Balances Variance
Carried
7/1/2015 Budget Actual Surplus Carried
Revenues
Taxes
Real and personal property (108,736)$ 56,821,074$ 56,678,680$ (33,658)$ -$
Change in unavailable property tax - - 116,322 116,322 -
Tax increment financing district - (2,620,368) (2,620,368) - -
Payment in lieu of taxes - 169,088 193,599 24,511 -
Excise - 4,871,000 6,272,270 1,401,270 -
Interest on delinquent taxes - 200,000 254,207 54,207 -
Total taxes (108,736) 59,440,794 60,894,710 1,562,652 -
Intergovernmental
State revenue sharing - 2,090,000 2,297,163 207,163 -
School subsidy - 17,719,329 18,152,412 - 433,083
Other -
municipal - 3,422,128 3,580,796 158,668 -
school - 3,381,385 3,559,434 - 178,049
Total intergovernmental - 26,612,842 27,589,805 365,831 611,132
Other revenue
Licenses and permits - 707,466 755,273 47,807 -
Charges for service -
municipal - 8,367,109 9,207,028 839,919 -
school - 4,630,636 4,465,299 - (165,337)
Fines, forfeits and penalties - 33,000 34,910 1,910 -
Revenue from use of money and property
municipal - 660,350 646,381 (13,969) -
school - 5,000 41,292 - 36,292
Total other - 14,403,561 15,150,183 875,667 (129,045)
Total revenues (108,736) 100,457,197 103,634,698 2,804,150 482,087
II - 64
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, 2016
Balances Variance
Carried
7/1/2015 Budget Actual Surplus Carried
Expenditures
General government
Council - 30,593 30,076 517 -
Executive - 816,067 971,949 (155,882) -
Human resources - 135,404 117,839 17,565 -
City clerk - 385,694 349,412 36,282 -
Assessing - 336,998 348,692 (11,694) -
Legal - 285,327 287,603 (2,276) -
Finance - 1,694,071 1,675,457 18,614 -
Insurance - 180,200 181,415 (1,215) -
Planning, econ dev, code enforcement - 1,286,585 1,225,560 61,025 -
Total general government - 5,150,939 5,188,003 (37,064) -
Public safety
Police - 8,803,654 8,652,556 151,098 -
Fire - 8,998,463 8,676,074 318,964 3,425
Total public safety - 17,802,117 17,328,630 470,062 3,425
Health, community services and recreation
Health and community services - 3,056,921 3,127,248 (70,327) -
Parks and recreation - 1,920,567 1,990,057 (69,490) -
Total health, commun. serv and rec.- 4,977,488 5,117,305 (139,817) -
Public buildings and services - 10,452,617 10,313,334 139,283 -
II - 65
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General FundFor the Fiscal Year Ended June 30, 2016
Balances Variance
Carried
7/1/2015 Budget Actual Surplus Carried
Expenditures, continued
Other agencies
County tax - 3,132,856 3,132,856 - -
Downtown Development District - 58,650 58,650 - -
Public library - 1,411,821 1,411,821 - -
Other agencies 2,197 118,600 119,911 (1,095) 1,981
Total other agencies 2,197 4,721,927 4,723,238 (1,095) 1,981
Education
Regular instruction - 19,349,598 19,079,747 - 269,851
Special education - 6,732,601 6,714,992 - 17,609
Instructional support - 497,500 493,412 - 4,088
System administration - 1,323,170 1,260,528 - 62,642
CTE instruction - 3,855,064 3,797,533 - 57,531
School administration - 1,086,632 1,047,971 - 38,661
Facilities maintenance - 2,413,733 2,316,434 - 97,299
Transportation - 1,835,000 1,831,865 - 3,135
Other instruction - 5,114,370 5,093,172 - 21,198
Debt service - 1,553,538 1,538,745 - 14,793
Contingency & other - 126,139 103,542 - 22,597
Regular 2,392,222 43,887,345 43,277,941 - 3,001,626
Adult education 97,148 649,151 630,840 - 115,459
School lunch 3,753 1,450,247 1,453,246 - 754
Special revenue 66,534 3,135,385 2,995,085 - 206,834
Trust and agency 253,425 2,433,736 2,286,581 - 400,580
Total education 2,813,082 51,555,864 50,643,693 - 3,725,253
Other appropriations
Pensions and other fringe benefits - 2,264,439 2,222,217 42,222 -
Debt service - 3,277,694 3,277,647 47 -
Tax increment financing payments - 990,920 995,904 (4,984) -
Total other appropriations - 6,533,053 6,495,768 37,285 -
Total expenditures 2,815,279 101,194,005 99,809,971 468,654 3,730,659
Excess (deficiency) of revenues
over/under expenditures (2,924,015) (736,808) 3,824,727 3,272,804 4,212,746
II - 66
Schedule A-2 (con't)
CITY OF BANGOR, MAINE
Schedule of Revenues, Expenditures and Changes in Unassigned
Fund Balance - Budget and Actual - Budgetary Basis
General FundFor the Fiscal Year Ended June 30, 2016
Balances Variance
Carried
7/1/2015 Budget Actual Surplus Carried
Other financing sources (uses)
Appropriation from restricted, committed
and assigned fund balances - 1,385,802 73,801 - (1,312,001)
Appropriation from unassigned fund balance - 14,851 - (14,851) -
Appropriation to assigned fund balances - - (1,731,039) (1,375,000) (356,039)
Sale of assets - 9,000 16,841 7,841 -
Contributions - - 400 400 -
Insurance Settlements - 40,155 41,982 1,827 -
Transfers to other funds - (740,000) (740,000) - -
Transfers from other funds - 27,000 20,000 (7,000) -
Total other financing sources (uses)- 736,808 (2,318,015) (1,386,783) (1,668,040)
Net change in unassigned fund balance (2,924,015)$ -$ 1,506,712$ 1,886,021$ 2,544,706$
Unassigned fund balance, beginning of year 9,995,105
Changes in amounts required to be shown as nonspendable fund balance
Inventory and prepaids (565,891)
Unassigned fund balance, end of year 11,315,235$
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are legally
restricted to expenditures for particular purposes.
Other HUD Funds – This is used to account for 1) federal grants obtained and expended
under the Housing and Community Development Act of 1974, as amended, for the
redevelopment of the downtown commercial core of the City and 2) low interest loans to
businesses within the City of Bangor for establishment, expansion or redevelopment
purposes.
Grant Fund – Accounts for federal and state grants that are legally restricted to
expenditures allowable by the grantor agency.
Dedicated Revenue Funds - Accounts for amounts raised or donated to benefit various governmental programs such as; the Dental Clinic, local parks, City forest and Park
Woods complex.
Other Funds – Accounts for funds held to be used in future periods such as tax financing district repayments and other community funds for capital expenditures relating to the
operation of the area transportation system.
Permanent Fund
Permanent funds are used to report resources that are legally restricted to the extent
that only earnings, not principal, may be used for purposes that support the reporting
government’s programs.
II - 67
Schedule B-1
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Governmental FundsJune 30, 2016
Nonmajor
Special Nonmajor Total Other
Revenue Permanent Governmental
Funds Funds Funds
ASSETS
Cash and cash equivalents 991,768$ -$ 991,768$
Investments - 124,572 124,572
Receivables:
Accounts 111,517 - 111,517
Loans and notes 775,347 913,773 1,689,120
Intergovernmental 191,827 - 191,827
Total assets 2,070,459 1,038,345 3,108,804
LIABILITIES
Accounts payable 49,263 - 49,263
Interfund loans payable 227,830 - 227,830
Total liabilities 277,093 - 277,093
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - loans 160,000 - 160,000
Total deferred inflows of resources 160,000 - 160,000
FUND BALANCES
Nonspendable - 532,338 532,338
Restricted 1,633,366 506,007 2,139,373
Total fund balances 1,633,366 1,038,345 2,671,711
Total liabilities, deferred inflows of
resources and fund balances 2,070,459$ 1,038,345$ 3,108,804$
II - 68
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, 2016
Nonmajor
Special Nonmajor Total Other
Revenue Permanent Governmental
Funds Funds Funds
Revenues
Intergovernmental $7,355,178 -$ 7,355,178
Charges for services 822,164 - 822,164
Revenue from use of money and property 44,688 - 44,688
Other revenue 76,537 2,875 79,412
Interest revenue - 31,694 31,694
Total revenues 8,298,567 34,569 8,333,136
Expenditures
Current:
Personnel 1,201,073 - 1,201,073
Payments to beneficiaries 239,951 4,605 244,556
Other 4,118,761 - 4,118,761
Bus operations 2,968,840 - 2,968,840
Total expenditures 8,528,625 4,605 8,533,230
Excess (deficiency) of revenues over (under) expenditures (230,058) 29,964 (200,094)
Other financing uses
Transfers to other funds (200,464) (20,000) (220,464)
Transfers from other funds 3,155 - 3,155
Total other financing uses (197,309) (20,000) (217,309)
Net change in fund balances (427,367) 9,964 (417,403)
Fund balances, beginning of year 2,060,733 1,028,381 3,089,114
Fund balances, end of year $1,633,366 1,038,345$ 2,671,711$
II - 69
Schedule B-3
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Special Revenue FundsJune 30, 2016
Dedicated
Other Grant Revenue
HUD Funds Fund Funds Other Totals
ASSETS
Cash and cash equivalents 274,538$ 335$ 150,301 566,594$ 991,768$
Receivables:
Accounts - 111,517 - - 111,517
Loans and notes 160,000 - 615,347 - 775,347
Intergovernmental - 191,827 - - 191,827
Total assets 434,538 303,679 765,648 566,594 2,070,459
LIABILITIES
Accounts payable - 31,556 - 17,707 49,263
Interfund loans payable - 227,830 - - 227,830
Total liabilities - 259,386 - 17,707 277,093
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - loans 160,000 - - - 160,000
Total deferred inflows of resources 160,000 - - - 160,000
FUND BALANCES
Restricted 274,538 44,293 765,648 548,887 1,633,366
Total fund balances 274,538 44,293 765,648 548,887 1,633,366
Total liabilities, deferred inflows of
resources and fund balances 434,538$ 303,679$ 765,648$ 566,594$ 2,070,459$
II - 70
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, 2016
Dedicated
Other Grant Revenue
HUD Funds Fund Funds Other Totals
Revenues
Intergovernmental -$ 7,355,178$ -$ -$ 7,355,178
Charges for services - 822,164 - - 822,164
Revenue from use of money and property - - 24,979 19,709 44,688
Contributions - 250 940 75,347 76,537
Total revenues - 8,177,592 25,919 95,056 8,298,567
Expenditures
Current:
Personnel - 1,201,073 - - 1,201,073
Payments to beneficiaries - - 1,609 238,342 239,951
Other 98,445 4,020,316 - - 4,118,761
Bus operations - 2,968,840 - - 2,968,840
Total expenditures 98,445 8,190,229 1,609 238,342 8,528,625
Excess (deficiency) of revenues
over (under) expenditures (98,445) (12,637) 24,310 (143,286) (230,058)
Other financing uses
Transfers to other funds - (50,000) - (150,464) (200,464)
Transfers from other funds - - - 3,155 3,155
Total other financing uses - (50,000) - (147,309) (197,309)
Net change in fund balances (98,445) (62,637) 24,310 (290,595) (427,367)
Fund balances, beginning of year 372,983 106,930 741,338 839,482 2,060,733
Fund balances, end of year 274,538$ 44,293$ 765,648$ 548,887$ 1,633,366$
II - 71
Schedule B-5
CITY OF BANGOR, MAINE
Combining Balance Sheet
Nonmajor Permanent FundsJune 30, 2016
Revolving
Other Loan
Funds Funds Totals
ASSETS
Investments -$ 124,572$ 124,572$
Loans receivable 913,773 - 913,773
Total assets 913,773 124,572 1,038,345
LIABILITIES AND
FUND BALANCES
Liabilities - - -
Total liabilities - - -
Fund balances
Nonspendable 407,766 124,572 532,338
Restricted 506,007 - 506,007
Total fund balances 913,773 124,572 1,038,345
Total liabilities and and fund balances 913,773$ 124,572$ 1,038,345$
II - 72
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, 2016
Revolving
Other Loan
Funds Funds Totals
Revenues
Investment income $30,500 1,194$ 31,694$
Lot sales 2,875 - 2,875
Total revenues 33,375 1,194 34,569
Expenditures
Current:
Payments to beneficiaries 128 4,477 4,605
Total expenditures 128 4,477 4,605
Excess (deficiency) of revenues
over (under) expenditures 33,247 (3,283) 29,964
Other financing uses
Transfer to other funds (20,000) - (20,000)
Total other financing uses (20,000) - (20,000)
Net change in fund balances 13,247 (3,283) 9,964
Fund balances, beginning of year 900,526 127,855 1,028,381
Fund balances, end of year $913,773 124,572$ 1,038,345$
This page left intentionally blank
ENTERPRISE FUNDS
Enterprise Funds are used to account for operations that are financed and operated in a
manner similar to private business enterprises. The intent of the government is to have
the costs of providing goods or services to the general public financed or recovered
primarily through user charges. The government has decided that periodic
determination of net 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:
Stormwater Utility – This fund assesses property owners a fee based on the amount of
impervious surface to fund the costs associated with stormwater management.
Economic Development Fund – This fund accounts for the operation and development of
properties acquired by the City. Its purpose is to promote economic growth within the City. The principal source of revenue is rental income.
Parking Fund – This fund accounts for the operation of the City-owned parking lots and
the Pickering Square garage. Revenue sources include monthly lease payments for parking spaces, hourly/daily parking fees, and fines and waiver fees for parking
violations. Certain of these facilities are operated under a private management contract.
Municipal Golf Course – This fund accounts for the operation of a 27 hole municipal golf
course. Principal revenue sources are season memberships and daily green fees.
Continued on next page
II - 73
Schedule C-1
CITY OF BANGOR, MAINE
Combining Statement of Net Position
Nonmajor Proprietary Funds
June 30, 2016
Business-type Activities - Enterprise Funds
Economic Municipal Total
Stormwater Development Parking Golf Nonmajor
Utility Fund Fund Course Proprietary Funds
ASSETS
Current assets
Cash and cash equivalents 615,840$ 148,445$ 572,844$ 387,666$ 1,724,795$
Accounts receivable 417,075 74,532 300 - 491,907
Net accounts receivable 417,075 74,532 300 - 491,907
Prepaid items 2,615 69,908 61,228 7,396 141,147
Total current assets 1,035,530 292,885 634,372 395,062 2,357,849
Noncurrent assets
Capital Assets:
Land and improvements - 3,614,763 - 1,594,732 5,209,495
Buildings and improvements - 3,522,628 - 912,607 4,435,235
Machinery and equipment 247,398 - - 305,859 553,257
Infrastructure - 683,189 - - 683,189
Parking structures - - 11,331,311 - 11,331,311
Total capital assets 247,398 7,820,580 11,331,311 2,813,198 22,212,487
Less accumulated depreciation (8,246) (1,901,286) (9,153,621) (1,975,485) (13,038,638)
Net capital assets 239,152 5,919,294 2,177,690 837,713 9,173,849
Loans receivable - 1,428,814 - - 1,428,814
Total noncurrent assets 239,152 7,348,108 2,177,690 837,713 10,602,663
Total assets 1,274,682 7,640,993 2,812,062 1,232,775 12,960,512
DEFERRED OUTFLOWS OF RESOURCES
Net pension - - 14,577 - 14,577
Total deferred outflows of resources - - 14,577 - 14,577
Continued from previous page
II - 74
Schedule C-1 (con't)
CITY OF BANGOR, MAINE
Combining Statement of Net Position
Nonmajor Proprietary Funds
June 30, 2016
Business-type Activities - Enterprise Funds
Economic Municipal Total
Stormwater Development Parking Golf Nonmajor
Utility Fund Fund Course Proprietary Funds
LIABILITIES
Current liabilities
Accounts payable 11,923 9,164 1,236 13,776 36,099
Accrued wages and benefits payable 3,216 - 2,936 8,787 14,939
Accrued interest - 51,992 9,345 2,220 63,557
Workers' compensation - - 2,111 - 2,111
General obligation debt payable 74,133 255,890 225,508 35,237 590,768
Accrued compensated absences - - 8,881 7,999 16,880
Total current liabilities 89,272 317,046 250,017 68,019 724,354
Long-term liabilities
Workers' compensation - - 7,889 - 7,889
General obligation debt payable 915,289 2,218,519 1,055,305 329,251 4,518,364
Accrued compensated absences - - 8,624 7,481 16,105
Net OPEB obligation 1,189 - 12,746 25,947 39,882
Net pension liability - - 27,991 - 27,991
Total long-term liabilities 916,478 2,218,519 1,112,555 362,679 4,610,231
Total liabilities 1,005,750 2,535,565 1,362,572 430,698 5,334,585
DEFERRED INFLOWS OF RESOURCES
Net pension - - 4,597 - 4,597
Total deferred inflows of resources - - 4,597 - 4,597
NET POSITION
Net investment in capital assets 239,152 3,444,885 1,030,747 544,314 5,259,098
Unrestricted 29,780 1,660,543 428,723 257,763 2,376,809
Total net position 268,932$ 5,105,428$ 1,459,470$ 802,077$ 7,635,907$
II - 75
Schedule C-2
Economic Municipal Total
Stormwater Development Parking Golf Nonmajor
Utility Fund Fund Course Proprietary Funds
Operating revenues
Charges for services 1,000,864$ 674,066$ 1,030,872$ 732,016$ 3,437,818$
Operating expenses
Operating expenses other than
depreciation and amortization 392,678 217,048 615,339 528,544 1,753,609
Depreciation and amortization 8,246 169,950 270,412 68,930 517,538
Total operating expenses 400,924 386,998 885,751 597,474 2,271,147
Operating income 599,940 287,068 145,121 134,542 1,166,671
Nonoperating revenue (expenses)
Interest income 24,940 60,464 223 171 85,798
Interest expense - (121,236) (45,925) (16,456) (183,617)
Gain on sale of assets - 422,984 - - 422,984
Total nonoperating revenue (expenses)24,940 362,212 (45,702) (16,285) 325,165
Net income before transfers 624,880 649,280 99,419 118,257 1,491,836
Transfers to other funds (270,000) - - (26,570) (296,570)
Transfers from other funds 77,398 - 10,500 - 87,898
Change in net position 432,278 649,280 109,919 91,687 1,283,164
Net position, beginning of year (163,346) 4,456,148 1,349,551 710,390 6,352,743
Net position, end of year 268,932$ 5,105,428$ 1,459,470$ 802,077$ 7,635,907$
Business-type Activities - Enterprise Funds
Nonmajor Proprietary Funds
For the Fiscal Year Ended June 30, 2016
CITY OF BANGOR, MAINE
Combining Statement of Revenues, Expenses and Changes in Net Position
Continued on next page
II - 76
Schedule C-3
Economic Municipal Total
Stormwater Development Parking Golf Nonmajor
Utility Fund Fund Course Proprietary Funds
Cash flows from operating activities
Cash received from customers 960,515$ 548,691$ 1,032,111$ 732,016$ 3,273,333$
Cash paid to suppliers for goods and services (258,923) (250,934) (324,585) (243,269) (1,077,711)
Cash paid to employees for services (131,286) - (330,747) (337,464) (799,497)
Net cash provided by
operating activities 570,306 297,757 376,779 151,283 1,396,125
Cash flows from noncapital financing activities
Interfund loans (repayments)- (857,900) - - (857,900)
Transfers in 77,398 - 10,500 - 87,898
Transfers out (270,000) - - (26,570) (296,570)
Net cash provided by (used in)
noncapital financing activities (192,602) (857,900) 10,500 (26,570) (1,066,572)
Cash flows from capital and related financing activities
Acquisition and construction of capital assets (247,398) - (10,952) - (258,350)
Principal paid on general obligation bonds (74,134) (247,648) (218,878) (34,755) (575,415)
Interest paid on general obligation bonds - (123,411) (47,083) (16,060) (186,554)
Proceeds from sale of property - 985,996 - - 985,996
Net cash provided by (used in) capital
and related financing activities (321,532) 614,937 (276,913) (50,815) (34,323)
Cash flows from investing activities
Interest on investments 24,940 91,283 223 171 116,617
Net cash provided by investing activities 24,940 91,283 223 171 116,617
Net increase in cash 81,112 146,077 110,589 74,069 411,847
Cash, beginning of year 534,728 2,368 462,255 313,597 1,312,948
Cash, end of year 615,840$ 148,445$ 572,844$ 387,666$ 1,724,795$
For the Fiscal Year Ended June 30, 2016
Business-type Activities - Enterprise Funds
CITY OF BANGOR, MAINE
Combining Statement of Cash Flows - Nonmajor Proprietary Funds
Continued from previous page
II - 77
Schedule C-3 (con't)
Economic Municipal Total
Stormwater Development Parking Golf Nonmajor
Utility Fund Fund Course Proprietary Funds
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities
Operating income 599,940$ 287,068$ 145,121$ 134,542$ 1,166,671$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in)
operating activities
Depreciation and amortization 8,246 169,950 270,412 68,930 517,538
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (40,349) (55,467) 1,239 - (94,577)
(Increase) decrease in prepaid items (2,615) (63,669) (3,506) (7,396) (77,186)
Increase (decrease) in accounts payable 4,360 (40,125) (42,541) (10,568) (88,874)
Increase (decrease) in other liabilities 724 - 6,054 (34,225) (27,447)
Total adjustments (29,634) 10,689 231,658 16,741 229,454
Net cash provided by
operating activities 570,306$ 297,757$ 376,779$ 151,283$ 1,396,125$
Business-type Activities - Enterprise Funds
CITY OF BANGOR, MAINE
Combining Statement of Cash Flows - Nonmajor Proprietary Funds
For the Fiscal Year Ended June 30, 2016
FIDUCIARY FUNDS
Fiduciary Funds are used to report assets held in a trustee or agency capacity for others.
Agency Funds – Agency Funds are used to account for situations where the City’s role is
purely custodial, such as the receipt, temporary investment, and remittance of fiduciary
resources to individuals, private organizations, or other governments.
II - 78
Schedule D-1
CITY OF BANGOR, MAINE
Statement of Changes in Assets and Liabilities
Agency Funds
For the Fiscal Year Ended June 30, 2016
Balance Balance
July 1, 2015 Additions Deletions June 30, 2016
ASSETS
Cash:
School Activity Funds 139,525$ 191,784$ 201,853$ 129,456$
Total assets 139,525 191,784 201,853 129,456
LIABILITIES
Funds held for others:
School Activity Funds 139,525 191,784 201,853 129,456
Total liabilities 139,525$ 191,784$ 201,853$ 129,456$
CAPITAL ASSETS USED
IN THE OPERATION
OF GOVERNMENTAL FUNDS
II - 79
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, 2016
Balance Balance
Function and Activity 2015 Additions Deletions 2016
General government
BAT community connector 1,774,501$ 147,422$ 431,961$ 1,489,962$
Central service 19,754 - 2,421 17,333
City hall 547,558 159,645 66,277 640,926
Community and economic development 9,462,354 - 441,488 9,020,866
Engineering 11,199 - 6,921 4,278
Information services 153,200 - 32,317 120,883
Motor pool 3,486,540 1,172,245 1,245,623 3,413,162
Other - unclassified 50,462 - 41,682 8,780
Total general government 15,505,568 1,479,312 2,268,690 14,716,190
Public safety
Fire 5,077,352 - 459,647 4,617,705
Police 9,516,410 147,592 1,189,644 8,474,358
Total public safety 14,593,762 147,592 1,649,291 13,092,063
Health, community services and recreation
Parks and recreation 3,241,041 152,931 172,128 3,221,844
Total health, community services and recreation 3,241,041 152,931 172,128 3,221,844
Public building and services
Public works 14,627,949 3,585,518 3,557,103 14,656,364
Total public buildings and services 14,627,949 3,585,518 3,557,103 14,656,364
Education 30,355,078 579,234 1,200,252 29,734,060
Total governmental fund capital assets 78,323,398$ 5,944,587$ 8,847,464$ 75,420,521$
OTHER INFORMATION
II - 80
Schedule F-1
CITY OF BANGOR, MAINE
Assessed Valuation, Commitment and Collections
For the Fiscal Year Ended June 30, 2016
VALUATION
Land and buildings 2,370,220,600$
Land and buildings - Homestead exemption 50,758,900
Personal property 229,981,900
Personal property - BETE exemption 101,258,300
Total valuation 2,752,219,700$
COMMITMENT
Real estate, personal property (excludes Homestead and BETE exemptions)2,600,202,500$
Tax rate 0.02195
Total commitment 57,074,445
ADD
Supplemental taxes committed 15,646
57,090,091
LESS
Collections 2016 55,557,652
Abatements 445,799
2016 taxes receivable at June 30, 2016 1,086,640$
II - 81
Schedule F-2
General Fund expenditures/uses ( Schedule A-2)
General government 5,188,003$
Public safety 17,328,630
Health, community services and recreation 5,117,305
Public buildings and services 10,313,334
Other agencies 4,723,238
Education 50,643,693
Other appropriations 6,495,768
Other uses, gross*740,000
Gross expenditures and uses 100,549,971
General Fund debt service 7,593,169
Net expenditures and uses 92,956,802$
Indicated unassigned fund balance @ 8.33%7,743,302$
Actual unassigned fund balance (Schedule A-2)11,315,235$
Actual unassigned fund balance as a percentage
of net expenditures and uses 12.17%
* excludes amounts appropriated from unassigned and assigned fund balance
of the last year's General Fund operating expenditures. The following table sets forth the calculation
as of June 30, 2016.
The City Charter states that the City Council shall target an a General Fund unassigned fund balance
General Fund Unassigned Fund Balance Sufficiency Calculation
For the Fiscal Year Ended June 30, 2016
CITY OF BANGOR, MAINE
of no more than 16.66% of operating expenditures. The target balance is established at 8.33%
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STATISTICAL SECTION
This part of the City of Bangor’s comprehensive annual financial report presents
detailed information as a context for understanding what the information in the
financial statements, note disclosures and required supplementary information
says about the government’s overall financial health.
Page
Financial Trends III - 1
The schedules contain trend information to help the reader
understand how the City’s financial performance and well-being
have changed over time.
Revenue Capacity III - 8
These schedules contain information to help the reader assess the
City’s most significant local revenue source, the property tax.
Debt Capacity III - 12
These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the
ability to issue additional debt in the future.
Demographic and Economic Information III - 16
These schedules offer demographic and economic indicators to help
the reader understand the environment within which the City’s
financial activities take place.
Operating Information III - 18
These schedules contain service and infrastructure data to help the
reader understand how the information in the City’s financial report
relates to the services the City provides and the activities it
performs.
III - 1
Table 1
2011 2012 2013 2014 2015 2016
Governmental activities:
Net investment in capital assets 40,176,260$ 67,253,588$ 54,540,288$ 49,674,874$ 50,030,025$ 47,792,253$
Restricted*5,033,496 5,054,449 3,966,494 4,745,034 4,494,021 4,045,808 Unrestricted (3,751,473) (28,635,920) (24,261,524) (29,701,463) (25,459,136) (16,048,402)
Total governmental activities net position 41,458,283 43,672,117 34,245,258 24,718,445 29,064,910 35,789,659
Business-type activities:
Net investment in capital assets 155,344,528 152,749,709 165,548,784 159,116,820 156,544,970 159,537,793 Unrestricted 15,549,352 12,823,198 4,879,657 6,860,485 8,428,935 8,766,272 Total business-type activities net position 170,893,880 165,572,907 170,428,441 165,977,305 164,973,905 168,304,065
Primary government:
Net investment in capital assets 195,520,788 220,003,297 220,089,072 208,791,694 206,574,995 207,330,046
Restricted*5,033,496 5,054,449 3,966,494 4,745,034 4,494,021 4,045,808 Unrestricted 11,797,879 (15,812,722) (19,381,867) (22,840,978) (17,030,201) (7,282,130)
Total primary government net position 212,352,163$ 209,245,024$ 204,673,699$ 190,695,750$ 194,038,815$ 204,093,724$
Only six years have been presented because 2011 was the year GASB Statement No. 54 was implemented.
* Certain amounts within net position have been reclassified to conform with 2016 presentation.
(accrual basis of accounting)Last Ten Fiscal Years
Net Position by ComponentCITY OF BANGOR, MAINE
Fiscal Year
Continued on next page
III - 2
Table 2
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Expenses
Governmental activities:
General government 7,052,860$ 8,744,549$ 7,868,247$ 8,279,943$ 9,223,718$ 4,490,599$ 4,733,021$ 7,110,075$ 6,871,396$ 6,588,238$
Public safety 13,756,962 14,945,855 15,671,645 16,898,374 17,018,427 18,016,430 17,864,294 18,050,107 17,933,525 18,107,357 Health, community services and recreation 7,348,875 8,413,205 9,168,870 9,331,784 9,523,225 8,455,977 9,298,196 9,586,571 9,692,379 10,112,526
Public services*11,544,128 10,501,253 11,812,548 16,380,337 12,413,601 15,399,933 14,408,500 14,249,015 12,956,599 15,409,518
Other agencies 3,787,970 4,829,547 4,580,661 4,658,904 4,479,888 4,209,428 4,630,915 6,799,934 4,638,805 4,528,591 Education 46,106,647 47,537,197 54,294,824 52,763,860 50,986,350 51,223,806 50,145,937 50,594,050 52,297,774 51,901,230
Unclassified 1,136 - - - - - - - - -
Arena development 417,030 41,091 51,332 39,075 61,334 536,251 2,201,200 500,566 - 136
Community development 1,865,026 2,156,241 912,992 1,506,038 1,542,975 1,152,289 1,356,184 2,178,972 1,316,591 1,592,047 Waterfront 399,015 1,754,281 9,252,263 79,911 1,439,065 606,249 381,437 272,857 360,004 331,622
Public transportation 1,841,516 2,118,374 3,042,434 2,792,904 1,701,112 3,276,780 3,250,752 2,782,968 2,784,081 3,166,692
Economic development (tif)1,101,078 1,066,192 1,114,112 1,630,081 1,383,662 1,502,503 1,334,470 1,440,452 1,568,811 929,322 Interest on debt 1,952,612 3,206,764 2,651,599 2,555,839 2,151,172 2,710,135 3,343,590 2,464,804 2,604,030 2,362,899
Total governmental activities expenses 97,174,855 105,314,549 120,421,527 116,917,050 111,924,529 111,580,380 112,948,496 116,030,371 113,023,995 115,030,178
Business-type activities:Sewer Utility 6,052,420 6,052,419 6,197,277 6,253,436 6,202,202 6,758,495 6,827,790 6,843,975 6,603,195 7,210,861
Airport 18,645,140 19,641,953 19,934,243 20,532,553 20,458,552 20,752,350 20,722,960 20,855,066 20,893,894 20,266,935
Park Woods 678,867 678,867 590,250 529,610 496,478 533,671 473,289 497,833 507,210 - Stormwater Utility - - - - - - - 149,590 241,082 400,924
Parking 1,438,125 1,438,125 1,374,909 1,402,922 1,206,989 995,631 972,327 925,595 978,658 931,676
Bass Park 1,993,205 1,993,205 1,851,914 1,923,073 2,075,644 1,919,301 3,314,865 6,317,039 7,855,957 7,735,775
Municipal Golf Course 695,969 695,969 745,339 733,380 664,311 671,113 687,317 643,323 849,164 613,930 Economic Development 695,851 695,851 712,195 634,764 618,980 615,816 586,140 628,252 698,294 508,234
Total business-type activities expenses 30,199,577 31,196,389 31,406,127 32,009,738 31,723,156 32,246,377 33,584,688 36,860,673 38,627,454 37,668,335
Total primary government expenses 127,374,432$ 136,510,938$ 151,827,654$ 148,926,788$ 143,647,685$ 143,826,757$ 146,533,184$ 152,891,044$ 151,651,449$ 152,698,513$
* - Amounts previously reported as infrastructure have been reclassified as public services to conform with current year presentation.
(accrual basis of accounting)Last Ten Fiscal Years
Changes in Net PositionCITY OF BANGOR, MAINE
Continued on next page
III - 3
Table 2 (con't)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Program Revenues
Governmental activities:
Charges for services
General government 2,334,040$ 2,282,374$ 1,869,711$ 2,386,637$ 2,070,189$ 2,501,326$ 2,214,675$ 2,764,659$ 2,493,428$ 2,196,463$ Public safety 2,182,680 2,439,831 3,010,167 2,401,930 3,289,153 2,681,152 3,418,686 2,682,248 3,193,528 3,383,956
Health, community services and recreation 681,583 771,254 768,450 836,689 928,307 1,048,707 1,139,382 1,164,090 1,118,582 1,193,185
Public services 3,871,412 4,127,341 3,807,886 3,954,116 3,922,847 4,002,973 3,520,517 3,758,666 3,904,548 3,618,373 Other agencies - 22,243 22,068 - 20,248 103,560 - 46,882 - -
Education 4,408,431 4,539,787 4,386,457 4,533,041 5,165,261 3,806,614 3,835,409 3,446,006 4,699,101 4,506,591
Unclassified 61,128 - - - - - - - - -
Arena development 1,630,360 1,689,657 2,205,771 2,380,158 2,331,584 2,434,915 2,079,869 1,960,876 1,952,929 1,896,633 Community development 658,141 297,394 301,019 332,295 323,494 588,587 474,013 994,546 273,269 313,396
Public transportation 659,960 809,531 944,804 923,433 1,025,080 1,023,717 1,045,793 816,819 857,013 1,048,974
Tax increment financing - - 1,711 - - - - - - - Operating grants and contributions 30,534,706 41,370,518 34,155,649 35,683,710 35,604,940 33,137,275 31,901,386 34,600,320 33,541,085 34,838,496
Capital grants and contributions 2,604,652 2,119,150 2,068,478 6,578,917 4,935,614 3,725,432 2,345,794 1,720,879 1,540,614 3,064,312
Total governmental activities program revenues 49,627,093 60,469,080 53,542,171 60,010,926 59,616,717 55,054,258 51,975,524 53,955,991 53,574,097 56,060,379
Business-type activities:
Charges for services
Sewer Utility 6,663,408 6,745,112 7,537,879 7,288,499 7,340,935 7,320,469 7,708,101 8,426,054 8,189,623 7,975,639 Airport 13,555,003 14,475,879 13,953,287 13,767,394 13,080,217 12,540,347 12,069,935 12,220,328 12,036,215 13,576,325
Park Woods 340,494 340,494 369,478 371,832 372,715 397,426 417,407 440,295 459,905 -
Stormwater Utility - - - - - - - 359,029 1,088,119 1,000,864
Parking 1,001,697 1,001,697 997,111 1,050,579 1,057,710 1,012,109 960,947 1,002,164 1,022,305 1,030,872 Bass Park 1,426,599 1,426,599 1,253,236 1,382,947 1,276,869 1,304,384 1,249,595 2,683,094 3,239,457 3,346,951
Municipal Golf Course 655,834 655,834 608,930 658,053 643,501 628,869 592,825 575,020 611,132 732,016
Economic Development 422,716 422,716 569,549 507,867 585,785 409,486 462,033 515,339 589,383 674,066
Operating grants and contributions - - - - - - - - 193,061 -
Capital grants and contributions 4,377,242 3,426,732 4,113,557 8,684,860 3,717,755 2,351,779 6,121,523 4,039,968 6,947,799 8,776,331
Total business-type activities program revenues 28,442,993 28,495,063 29,403,027 33,712,031 28,075,487 25,964,869 29,582,366 30,261,291 34,376,999 37,113,064
Total primary government program revenues 78,070,086$ 88,964,143$ 82,945,198$ 93,722,957$ 87,692,204$ 81,019,127$ 81,557,890$ 84,217,282$ 87,951,096$ 93,173,443$
(accrual basis of accounting)Last Ten Fiscal Years
Changes in Net PositionCITY OF BANGOR, MAINE
Continued from previous pageIII - 4
Table 2 (con't)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Net (expense)/revenueGovernmental activities (47,547,762)$ (44,845,469)$ (66,879,356)$ (56,906,124)$ (52,307,812)$ (56,526,122)$ (60,972,972)$ (62,074,380)$ (59,449,898)$ (58,969,799)$ Business-type activities (1,756,584) (2,701,326) (2,003,100) 1,702,293 (3,647,669) (6,281,508) (4,002,322) (6,599,382) (4,250,455) (555,271)
Total primary government expense (49,304,346) (47,546,795) (68,882,456) (55,203,831) (55,955,481) (62,807,630) (64,975,294) (68,673,762) (63,700,353) (59,525,070)
General revenues and other changes in net positionGovernmental activities:Property taxes 41,702,775 43,775,938 46,977,792 48,182,455 48,027,330 48,520,390 49,930,989 52,243,583 55,303,613 56,062,583 Payment in lieu of taxes 145,000 122,510 141,595 117,770 161,879 156,629 95,620 161,438 156,417 193,599 Excise taxes 4,668,614 4,641,320 4,752,005 4,694,936 4,515,752 4,596,947 4,594,821 5,400,100 5,844,800 6,272,270 Franchise taxes 296,566 300,768 322,526 348,163 367,672 372,542 362,088 350,014 341,605 336,979 Unrestricted grants and contributions 4,968,217 5,520,774 5,260,439 4,999,567 4,859,811 4,963,161 4,857,030 3,787,128 3,794,664 4,173,167 Unrestricted investment earnings 1,183,796 1,274,939 874,824 673,295 565,326 530,631 57,620 510,429 413,923 488,936 Miscellaneous 260,733 161,439 93,967 135,849 92,379 16,698 112,060 1,863 410,991 179,163 Transfers (871,864) (539,088) (739,179) 761,103 (637,898) (417,042) (8,772,781) (3,170,717) (2,469,650) (2,012,149) Total governmental activities 52,353,837 55,258,600 57,683,969 59,913,138 57,952,251 58,739,956 51,237,447 59,283,838 63,796,363 65,694,548
Business-type activities:Property taxes - - - - - - - 750,000 800,000 1,000,000 Unrestricted investment earnings 1,346,799 1,326,787 1,025,098 1,035,753 752,891 543,493 345,932 504,584 462,069 420,951 Gain (loss) on sale of asset - - - - - - (260,857) - - 452,331 Special Item - - - - - - - - (484,664) - Transfers 539,088 539,088 739,179 (761,103) 637,898 417,042 8,772,781 3,170,717 2,469,650 2,012,149 Total business-type activities 1,885,887 1,865,875 1,764,277 274,650 1,390,789 960,535 8,857,856 4,425,301 3,247,055 3,885,431
Total primary government 54,239,724 57,124,475 59,448,246 60,187,788 59,343,040 59,700,491 60,095,303 63,709,139 67,043,418 69,579,979
Change in net positionGovernmental activities 4,806,075 10,413,131 (9,195,387) 3,007,014 5,644,439 2,213,834 (9,735,525) (2,790,542) 4,346,465 6,724,749 Business-type activities 129,303 (835,451) (238,823) 1,976,943 (2,256,880) (5,320,973) 4,855,534 (2,174,081) (1,003,400) 3,330,160
Total primary government 4,935,378$ 9,577,680$ (9,434,210)$ 4,983,957$ 3,387,559$ (3,107,139)$ (4,879,991)$ (4,964,623)$ 3,343,065$ 10,054,909$
Changes in Net PositionCITY OF BANGOR, MAINE
(accrual basis of accounting)Last Ten Fiscal Years
III - 5
Table 3
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Tax Revenues
Property taxes 41,702,775$ 43,775,938$ 46,977,792$ 48,182,455$ 48,027,330$ 48,520,390$ 49,930,989$ 52,243,583$ 55,303,613$ 56,062,583$ Excise taxes 4,668,614 4,641,320 4,752,005 4,694,936 4,515,752 4,596,947 4,594,821 5,400,100 5,844,800 6,272,270 Franchise taxes 296,566 300,768 322,526 348,163 367,672 372,542 362,088 350,014 341,605 336,979
Total tax revenues 46,667,955$ 48,718,026$ 52,052,323$ 53,225,554$ 52,910,754$ 53,489,879$ 54,887,898$ 57,993,697$ 61,490,018$ 62,671,832$
CITY OF BANGOR, MAINE
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years(accrual basis of accounting)
III - 6
Table 4
Fiscal Year
2011 2012 2013 2014 2015 2016
General Fund:
Nonspendable
Advances to other funds 1,900,500$ 1,900,500$ 1,900,500$ 1,900,500$ 1,900,500$ 1,900,500$
Inventory and prepaid items 963,770 860,187 873,714 853,265 672,248 1,238,139 Restricted
Education purposes 1,213,508 936,158 186,871 974,012 889,481 1,354,267
Municipal purposes 405,119 349,362 288,519 288,857 19,803 19,830
Committed - municipal purposes 19,033 373,753 10,583 2,623 110,933 5,406 Assigned
Encumbrances 1,389,501 1,548,268 777,788 31,347 15,987 244,899
Municipal purposes 3,115,199 3,240,838 3,415,627 3,386,444 4,626,740 5,509,947
Unassigned 8,017,940 7,563,658 7,727,014 9,598,472 9,995,105 11,315,235 Total general fund 17,024,570$ 16,772,724$ 15,180,616$ 17,035,520$ 18,230,797$ 21,588,223$
All other governmental funds:
Nonspendable
Permanent Fund Principal 608,710$ 588,515$ 574,492$ 544,200$ 532,758$ 532,338$
RestrictedCommunity Development Block Grant 346,605 415,956 252,479 - - -
Penobscot River 759 759 - - - -
Nonmajor Special Revenue Funds 1,637,362 1,862,992 1,730,231 1,971,397 2,060,733 1,633,366
Nonmajor Permanent Funds 410,337 449,974 466,951 483,284 495,623 506,007 Committed
Arena Fund 6,690,287 - 2,761,541 1,051,134 871,271 587,141
Assigned
Capital Project Fund 826,179 - 4,426,655 4,868,248 4,657,905 7,169,264 Capital Project Fund Encumbrances - 1,853,043 127,712 - - -
Unassigned
Community Development Block Grant - - - (3,275) (10,679) (3,153)
Arena Fund - (4,603,950) - - - - Capital Project Fund (537) - - - - -
Nonmajor Special Revenue Funds (12,257) (4,584) (5,736) - - -
Total all other governmental funds 10,507,445$ 562,705$ 10,334,325$ 8,914,988$ 8,607,611$ 10,424,963$
Only six 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 - 7
Table 5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenues:Taxes:Property taxes 42,145,912$ 43,767,914$ 47,113,576$ 48,284,733$ 48,371,202$ 48,688,270$ 50,004,619$ 52,748,153$ 55,650,209$ 56,626,711$ Excise taxes 4,668,614 4,641,320 4,752,005 4,694,936 4,515,752 4,596,947 4,594,821 5,400,100 5,844,800 6,272,270
Total tax revenues 46,814,526 48,409,234 51,865,581 52,979,669 52,886,954 53,285,217 54,599,440 58,148,253 61,495,009 62,898,981
Intergovernmental 37,774,922 41,345,956 41,123,520 46,211,718 45,304,160 40,536,525 39,029,824 40,025,974 38,563,450 41,912,419
Licenses and permits 982,879 956,965 644,621 633,339 601,202 948,267 576,559 1,389,717 831,968 755,273
Charges for services 12,598,776 13,283,275 13,449,587 13,655,764 15,226,575 13,594,482 14,079,514 12,782,036 14,889,219 14,802,549 Program income 657,987 296,325 288,677 329,800 314,203 575,460 462,380 765,142 247,549 284,619
Revenue from use of money and property 3,621,988 3,812,356 3,836,654 3,864,984 3,473,975 4,042,881 3,067,949 3,114,817 2,883,535 2,823,151 Other 279,261 7,691,463 428,220 1,108,213 279,426 561,118 165,686 156,659 516,714 227,243 Total revenues 102,730,339 115,795,574 111,636,860 118,783,487 118,086,495 113,543,950 111,981,352 116,382,598 119,427,444 123,704,235
Expenditures:General government**4,736,885 5,122,152 5,103,378 5,422,805 4,858,721 5,390,049 5,612,408 5,172,972 5,391,279 5,172,435
Public safety 13,476,656 14,162,638 14,400,420 15,287,575 15,800,938 16,028,180 16,209,402 16,409,651 16,994,567 17,146,674 Health, community services and recreation 4,086,513 4,305,709 4,414,673 4,720,477 5,584,184 5,383,295 4,945,994 4,826,149 5,041,486 5,117,412 Public services 9,363,365 9,906,759 10,048,539 10,055,161 10,196,576 9,842,829 9,835,549 10,052,683 10,704,017 10,387,416 Other agencies 3,783,720 4,227,552 4,294,283 4,291,329 4,747,617 4,409,545 4,382,776 4,566,380 4,684,697 4,723,022 Education 45,224,974 48,293,846 50,380,309 51,590,324 51,391,657 50,159,407 49,880,770 50,771,925 53,037,177 52,655,986 Tax increment financing - - 215,483 432,033 165,133 524,013 550,308 632,364 724,347 717,260 Unclassified 597,262 166,994 63,115 54,451 118,216 260,685 2,323,972 590,627 74,128 104,422 Restricted grants 7,787,297 9,098,706 8,360,660 8,479,740 8,232,148 7,414,001 9,202,815 10,729,492 9,691,489 9,852,311 Capital outlay*9,100,357 8,038,242 16,118,777 20,818,168 12,799,978 45,478,235 10,213,552 12,534,783 8,158,063 7,940,743
Debt service
Principal 4,237,096 2,044,428 2,136,415 12,423,331 3,862,188 6,996,892 22,907,595 3,222,253 3,685,728 3,970,474
Interest 3,095,434 2,436,120 2,373,922 2,472,643 2,375,397 2,180,013 2,923,060 1,957,347 2,050,633 1,983,468
Other charges 4,850 299 6,000 61,952 45,988 - - - - -
Total expenditures 105,494,409 107,803,445 117,915,974 136,109,989 120,178,741 154,067,144 138,988,201 121,466,626 120,237,611 119,771,623
Excess (deficiency) of revenues over (under) expenditures (2,764,070) 7,992,129 (6,279,114) (17,326,502) (2,092,246) (40,523,194) (27,006,849) (5,084,028) (810,167) 3,932,612
Other financing sources/(uses)
Issuance of debt 3,555,000 - 3,100,000 3,100,000 2,086,100 30,659,143 10,378,985 8,369,000 3,602,000 3,014,000
Capital leases - - - - - - 456,581 - - 61,152 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 320,034 161,439 104,620 135,849 117,558 84,507 186,709 187,760 565,717 179,163 Transfers to other funds (3,300,247) (2,690,305) (2,865,418) (1,789,024) (2,015,003) (1,861,301) (9,783,007) (4,406,771) (3,698,558) (4,015,412) Transfers from other funds 2,428,383 2,151,217 2,126,239 2,550,127 1,377,105 1,444,259 1,010,226 1,236,054 1,228,908 2,003,263 Total other financing sources 3,003,170 (377,649) 9,557,369 13,593,592 1,565,760 30,326,608 (1,235,871) 5,519,595 1,698,067 1,242,166
Net change in fund balances 239,100$ 7,614,480$ 3,278,255$ (3,732,910)$ (526,486)$ (10,196,586)$ (28,242,720)$ 435,567$ 887,900$ 5,174,778$
Debt service as a percentage of noncapital expenditures 7.74%4.26%4.00%11.14%5.52%7.97%19.35%4.46%4.95%5.12%
* - 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, MAINEChanges in Fund Balances of Governmental FundsLast Ten Fiscal Years(modified accrual basis of accounting)
III - 8
Table 6
Business
Total Taxable Total Equipment
Fiscal Real Personal Assessed Direct Homestead Tax Other
Year Property Property Value Tax Rate Exemption¹Exemption²Exemptions³
2007 $1,896,440,700 259,703,500 2,156,144,200 18.33 67,904,400$ - 712,610,400
2008 $2,082,355,000 254,991,600 2,337,346,600 17.74 68,742,200$ - 754,362,000
2009 $2,230,645,100 244,740,100 2,475,385,200 17.99 70,408,200$ 8,523,800 793,480,900
2010 $2,299,385,800 257,018,100 2,556,403,900 17.98 70,357,600$ 24,801,200 780,391,900
2011 $2,261,383,800 256,321,000 2,517,704,800 18.09 53,990,200$ 41,980,400 788,121,900
2012 $2,274,528,200 248,183,200 2,522,711,400 18.00 54,283,600$ 57,635,300 795,735,300
2013 $2,282,480,900 245,768,300 2,528,249,200 18.47 53,981,600$ 66,043,600 801,351,000
2014 $2,306,517,400 244,302,800 2,550,820,200 19.56 52,765,500$ 72,600,700 894,525,200
2015 $2,322,253,300 239,021,300 2,561,274,600 20.54 51,753,000$ 86,984,900 914,815,400
2016 $2,370,220,600 229,981,900 2,600,202,500 20.69 50,758,900$ 101,258,300 918,968,900
*Source - City of Bangor Commitment Report. It is City policy to assess at 100% of estimated actual value.
¹The City receives reimbursement from the State of Maine for 50% of the tax loss related to the Homestead Exemption.
²The Business Equipment Tax Exemption began in 2009. Upon implementation the City received reimbursement from the State of Maine
for 100% of the tax loss, that reimbursement has declined to 58.2% for 2016.
³Other exemptions consists of property owned by federal, state and local governments, various fully exempt organizations and non-reimbursable
personal exemptions.
CITY OF BANGOR, MAINE
Assessed Value and Estimated Actual Value of Taxable Property*Last Ten Fiscal Years
III - 9
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
2007 7.79 1.18 9.36 18.33 1.07 19.40
2008 7.69 1.18 8.87 17.74 1.06 18.80
2009 8.12 1.16 8.71 17.99 1.06 19.05
2010 8.01 1.27 8.70 17.98 1.07 19.05
2011 7.94 1.40 8.75 18.09 1.11 19.20
2012 7.75 1.42 8.83 18.00 1.20 19.20
2013 8.08 1.41 8.98 18.47 1.18 19.65
2014 8.67 1.48 9.41 19.56 1.24 20.80
2015 8.89 1.65 10.00 20.54 1.26 21.80
2016 8.20 2.61 9.88 20.69 1.26 21.95
III - 10
Table 8
CITY OF BANGOR, MAINE
Principal Property Taxpayers *Current Year and Nine Years Ago
2016 2007
Assessed % of Total Assessed % of Total
Taxpayer Business Value Rank Tax Base Value Rank Tax Base
GLP Capital L.P.Gaming 75,565,400$ 1 2.91%- -
Bangor Mall LLC Shopping mall 61,978,900 2 2.38%- -
Emera Maine Utility 38,632,600 3 1.49%- -
General Electric Manufacturer 36,681,400 4 1.41%92,999,700$ 1 4.18%
Walmart Stores Retailer 22,282,000 5 0.86%- -
Bangor Gas Company LLC Utility 19,734,200 6 0.76%- -
HC Bangor LLC Gaming 19,283,500 7 0.74%- -
GM Realty of Bangor LLC Real estate interests 16,937,700 8 0.65%- -
QV Realty Trust Real estate interests 16,713,100 9 0.64%13,348,500 7 0.60%
Banres, LLC Hotel 16,459,600 10 0.63%- -
BANMAK Associates Shopping mall - - 53,870,800 2 2.42%
Paradigm Development LLC Utility - - 30,822,300 3 1.39%
Eastern Maine Healthcare Medical institution - - 17,772,600 4 0.80%
Bangor Savings Bank Commercial bank - - 17,344,400 5 0.78%
Inland Western Parkade Shopping mall - - 15,297,400 6 0.69%
May Department Stores Retailer - - 12,166,000 8 0.55%
Cabrel Company Real estate interests - - 11,814,700 9 0.53%
Airport Mall Associates Shopping mall - - 11,534,900 10 0.52%
Totals 324,268,400$ 12.47%276,971,300$ 12.46%
*Source - City of Bangor Tax Commitment.
III - 11
Table 9
% of
Subsequent Total Total Tax
Fiscal Gross Tax Abate-Net Tax % of Year Tax Collection
Year Levy ments Levy Amount Net Levy Collections Collections to Net Levy
2007 $41,990,985 269,636 41,721,349 40,819,923 97.84%$851,324 41,671,247 99.88%
2008 $44,082,476 341,521 43,740,955 42,847,656 97.96%$831,159 43,678,815 99.86%
2009 $47,235,370 275,489 46,959,881 45,688,356 97.29%$1,179,997 46,868,353 99.81%
2010 $48,719,847 588,817 48,131,030 46,205,428 96.00%$1,764,765 47,970,193 99.67%
2011 $48,362,646 168,932 48,193,714 46,857,606 97.23%$1,170,863 48,028,469 99.66%
2012 $48,529,834 175,844 48,353,990 47,025,587 97.25%$1,155,490 48,181,077 99.64%
2013 $49,713,855 134,598 49,579,257 48,276,445 97.37%$1,126,569 49,403,014 99.64%
2014 $53,077,993 43,339 53,034,654 51,692,178 97.47%$1,115,487 52,807,665 99.57%
2015 $55,903,061 282,782 55,620,279 53,708,753 96.56%$1,364,513 55,073,266 99.02%
2016 $57,090,091 445,799 56,644,292 55,557,652 98.08%$- 55,557,652 98.08%
Collected within the
Fiscal Year of the Levy
CITY OF BANGOR, MAINE
Property Tax Levies and Collections
Last Ten Fiscal Years
III - 12
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*
2007 $60,321,264 - 43,809,953 - 104,131,217 3,279.83 4.83%11.03%
2008 $56,998,022 - 41,722,545 - 98,720,567 3,157.85 4.22%10.62%
2009 $56,687,684 7,091,928 37,623,522 - 101,403,134 3,236.72 4.10%10.88%
2010 $61,689,447 - 34,956,548 - 96,645,995 3,073.00 3.78%10.33%
2011 $58,455,666 - 31,985,337 - 90,441,003 2,737.40 3.59%7.06%
2012 $80,674,158 - 28,707,990 - 109,382,148 3,314.61 4.34%9.47%
2013 $62,727,567 361,009 82,492,223 - 145,580,799 4,416.49 5.76%11.71%
2014 $67,154,638 277,728 82,983,011 41,699 150,457,076 4,604.94 5.90%13.12%
2015 $65,147,398 549,636 83,619,820 33,082 149,349,936 4,585.79 5.83%12.64%
2016 $62,635,756 408,687 81,041,828 29,210 144,115,481 4,449.24 5.54%12.27%
*Source: U.S. Census Bureau.
Governmental Activities Ratio of Net Bonded Debt
III - 13
Table 11
CITY OF BANGOR, MAINE
Ratio of Net General Obligation Debt to Assessed Value and
Net General Obligation Debt Per Capita
Last Ten Fiscal Years
Fiscal Assessed Net Bonded Assessed Per
Year Population*Value GO Debt Value Capita
2007 31,749 $2,156,144,200 104,131,217 4.83%3,279.83
2008 31,262 $2,337,346,600 98,720,567 4.22%3,157.85
2009 31,329 $2,475,385,200 94,311,206 3.81%3,010.35
2010 31,450 $2,556,403,900 96,645,995 3.78%3,073.00
2011 33,039 $2,517,704,800 90,441,003 3.59%2,737.40
2012 33,000 $2,522,711,400 109,382,148 4.34%3,314.61
2013 32,963 $2,528,249,200 145,219,790 5.74%4,405.54
2014 32,673 $2,550,820,200 150,137,649 5.89%4,595.16
2015 32,568 $2,561,274,600 148,767,218 5.81%4,567.90
2016 32,391 $2,600,202,500 143,677,584 5.53%4,435.73
*Source: U.S. Census Bureau.
Ratio of Net Bonded Debt
III - 14
Table 12
CITY OF BANGOR, MAINE
Computation of Direct and Overlapping Debt
June 30, 2016
Percentage Amount
Total Debt Applicable Applicable
Outstanding to Bangor to Bangor
Direct Debt
City of Bangor
General Obligation Bonds 143,677,584$ 100.00%143,677,584$
Capital Leases 437,897 100.00%437,897
Overlapping Debt
Penobscot County*-$ -$
Total Debt 144,115,481$ 144,115,481$
* The percentage of overlapping Penobscot County debt is calculated based on the overall
percent of Bangor valuation of total county valuation.
III - 15
Table 13
Total Net Debt Legal Percentage of
Fiscal Debt Applicable to Debt Net Debt to
Year Limit Limit Margin Debt Limit
2007 $332,092,500 104,131,217 227,961,283 31.36%
2008 $353,737,500 98,720,567 255,016,933 27.91%
2009 $356,670,000 94,311,206 262,358,794 26.44%
2010 $365,400,000 96,645,995 268,754,005 26.45%
2011 $369,997,500 90,441,003 279,556,497 24.44%
2012 $368,467,500 109,382,148 259,085,352 29.69%
2013 $369,300,000 145,219,790 224,080,210 39.32%
2014 $369,637,500 146,954,498 222,683,002 39.76%
2015 $381,555,000 145,681,059 235,873,941 38.18%
2016 $383,182,500 140,744,237 242,438,263 36.73%
Total State Valuation 2,554,550,000$
Debt Limitation: 15 % of State Valuation 383,182,500
Debt Applicable to Debt Limitation:
General Obligation Bonds:
Municipal 113,089,014
School 15,563,172
Sewer 12,092,051
Total debt applicable to limit 140,744,237
Legal Debt margin 242,438,263$
CITY OF BANGOR, MAINE
Legal Debt Margin InformationLast Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2016
III - 16
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 ***
2007 31,749 29,740 19,295 36.1 3,913 4.40%
2008 31,262 29,740 19,295 36.1 3,886 5.10%
2009 31,329 29,740 19,295 36.1 3,878 7.80%
2010 31,450 29,740 19,295 36.1 3,821 8.10%
2011 33,039 38,775 25,344 36.7 3,830 7.50%
2012 33,000 34,993 25,344 37.5 3,819 7.10%
2013 32,963 37,707 24,945 36.8 3,875 6.70%
2014 32,673 35,107 23,791 36.5 3,810 5.40%
2015 32,568 36,272 23,977 35.9 3,765 4.60%
2016 32,391 36,272 23,977 35.9 3,780 3.80%
*Source: U.S. Census.
**Source: Bangor School Department.
***Source: Maine Bureau of Labor Statistics.
III - 17
Table 15
CITY OF BANGOR, MAINE
Principal Employers *Calendar Year and Nine Years Ago
Employees Employer Location Employees Employer Location
1000-4000 Eastern Maine Medical Center Bangor 1000-4000 Eastern Maine Medical Center Bangor
Bangor Mall Bangor Bangor Mall Bangor
University of Maine Orono University of Maine Orono
City of Bangor Bangor City of Bangor Bangor
Hannaford Supermarkets Throughout Shop & Save Supermarkets Throughout
Cianbro Corporation Throughout
WalMart Throughout
500-999 Bangor Savings Bank Bangor 500-999 Bangor Savings Bank Bangor
LL Bean Bangor General Electric Corp Bangor
Microdyne Orono Microdyne Orono
Acadia Hospital Bangor Acadia Hospital Bangor
Verso Corp Paper Mill Bucksport St. Joseph Hospital Bangor
St. Joseph Hospital Bangor
Community Health & Counseling Bangor
* Source - Bangor, Maine Community & Economic Profile Report - 2012 represents the latest data available.
Published by City of Bangor Community and Economic Development Department.
2012 2006
III - 18
Table 16
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Function
General government 100 100 100 100 100 99 97 92 103 74
Public safety
Police 93 93 93 97 97 96 96 96 93 91
Fire 91 91 91 95 95 95 95 91 87 90
Health, community services and recreation 49 49 49 49 47 49 48 46 41 34
Public building and services 81 81 82 82 81 78 78 76 63 62
Education 562 618 618 621 610 580 580 568 578 570
Sewer Utility 21 21 21 21 21 24 24 24 24 27
Airport 83 89 90 86 87 88 93 77 85 69
Park Woods 2 2 2 2 2 2 2 1 - -
Parking 3 3 3 3 3 3 3 3 3 2
Bass Park 9 7 8 8 7 6 5 - - -
Municipal Golf Course 3 9 3 3 3 3 3 3 3 3
Totals 1,097 1,163 1,160 1,167 1,153 1,123 1,124 1,077 1,080 1,022
* Source - City of Bangor Human Resource Department, excludes temporary, seasonal and on-call employees.
CITY OF BANGOR, MAINE
Full-time Equivalent City Government Employees by Function*
Last Ten Fiscal Years
III - 19
Table 17CITY OF BANGOR, MAINE
Operating Indicators by Function*Last Ten Calendar Years
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
FunctionCode enforcement
Building permits 550 485 501 427 518 405 453 433 454 517
Certificates of occupancy 446 430 440 341 448 350 361 395 452 630
Sign permits 116 118 103 90 96 70 69 82 83 86
Police
Calls for service 28,157 32,392 34,329 32,351 30,167 31,640 33,740 36,153 36,967 38,347
Fire
Calls for service 7,992 7,477 7,990 7,357 8,000 9,020 9,044 9,031 9,292 10,048
Sewer
Treated flow (billions of gallons)3.62 3.21 3.89 3.55 2.81 3.10 2.68 2.69 3.20 2.57
Biosolids (tons)7,043 7,236 7,609 7,572 6,518 6,789 5,832 6,309 5,821 6,230
* Source - City of Bangor Departmental records.
III - 20
Table 18
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Function
Public safety
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Vehicles 52 47 50 54 54 50 48 43 50 57
Fire:
Stations 3 3 3 3 3 3 3 3 3 3
Vehicles 27 28 27 25 25 26 26 26 26 24
Public works
Streets (miles)422 427 429 429 429 431 431 431 431 432
Sidewalks (miles)99.6 99.6 99.6 99.6 101.4 101.4 101.4 101.4 101.4 101.4
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 47 49 49 49
* Source - City of Bangor Departmental records.
CITY OF BANGOR, MAINECapital Asset Statistics by Function*Last Ten Fiscal Years
Fiscal Year
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