1. CITY OF BANGOR
FINANCIAL OVERVIEW
Presented by:
Roger Lebreux and Jennifer Conners
RUNYON KERSTEEN OUELLETTE
Recently, the City of Bangor completed the financial audit process. The School Department is part of the City and has
been included in the City’s financial statements. We are pleased to report that the City received an unmodified opinion,
which means the financial statements are fairly stated in all material respects. Further, the City reported no material
weaknesses related to its internal control. The remainder of this publication is dedicated to providing you with the
financial results for fiscal year 2014. We hope you find this information useful and understandable. Finally, we wish to
express our appreciation to all those who were so helpful to us during the audit process. It truly is a pleasure working
with your staff.
INSIDE
2. General Fund – Assets
3. General Fund – Liabilities and Deferred Inflows of Resources
4. General Fund – Fund Balance
5. General Fund – Fund Balance Analysis, FY 2005– FY 2014
6. Unassigned Fund Balance as a Percentage of Budget
7. General Fund – Revenues
8. General Fund – Expenditures
9. Debt per Capita
10. Property Tax Collection Compared to Other Cities
11. Nonmajor Enterprise Funds, FY 2012 – FY 2014
12. Nonmajor Enterprise Funds, Continued, FY 2012– FY 2014
13. Nonmajor Enterprise Funds, Continued, FY 2012 – 2014
14. Major Enterprise Funds, FY 2012 – FY 2014
15. Major Enterprise Funds, Continued, FY 2012 – FY 2014
16. Major Enterprise Funds, Continued, FY 2012 – FY 2014
About this presentation
This presentation is intended as a tool to assist the City Council,
School Committee and management in understanding its
financial operating results. The information contained in this
publication should be read in conjunction with the audited
financial statements and related disclosures and should not be
used for any other purposes without the expressed consent of
RUNYON KERSTEEN OUELLETTE.
Please contact us at 207-773-2986 or 1-800-486-1784
20 Long Creek Drive, South Portland, ME 04106.
2. CITY OF BANGOR
GENERAL FUND – ASSETS
Cash and
Investments
Taxes Receivable Account Receivables
Intergovernmental
Receivables
Other Assets
2014 $16,206,523 $2,765,960 $751,691 $3,438,342 $1,607,257
2013 $14,523,796 $2,810,832 $1,246,085 $2,625,755 $1,694,329
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
2
3. CITY OF BANGOR
GENERAL FUND – LIABILITIES AND DEFERRED INFLOWS OF RESOURCES
Accounts Payable
Accrued Wages and
Benefits Payable
Unavailable Revenue -
Property Taxes
Unearned Revenues
2014 $1,138,907 $4,000,984 $2,557,443 $36,919
2013 $996,982 $4,013,128 $2,664,910 $45,161
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
3
4. CITY OF BANGOR
GENERAL FUND – EQUITY
Non
spendable
Restricted Committed Assigned Unassigned
2014 $2,753,765 $1,262,869 $2,623 $3,417,791 $9,598,472
2013 $2,774,214 $475,390 $10,583 $4,193,415 $7,727,014
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
4
Observations:
• Nonspendable fund balance
includes advances to other funds,
inventory, and prepaid items.
• Restricted fund balance includes
amounts for PEG capital support,
arbitrage, and the School
Department’s fund balances.
•Committed fund balance is
entirely from the Cultural
Commission and Economic
Development.
• Assigned fund balance includes
amounts set aside for
encumbrances and various
reserves.
• Total fund balance increased
$1.9 million from the prior fiscal
year.
6. CITY OF BANGOR
UNASSIGNED FUND BALANCE AS A PERCENTAGE OF BUDGET
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
2014
Auburn 11.76%
Augusta 11.69%
Bangor 9.92%
Lewiston 13.18%
Portland 12.79%
6
Fund balance policies:
• Auburn - unassigned fund
balance target equal to 12.5%
of expenditures.
• Augusta - unassigned fund
balance target equal to 12.5%
of expenditures.
• Bangor – minimum
unassigned fund balance target
equal to 8.33% of operating
budget, less general fund debt
service.
• Lewiston – minimum
unassigned fund balance target
equal to 8% of general fund
revenues; maximum target
equal to 12%.
• Portland – unassigned fund
balance target equal to 12.5%
of expenditures, net of debt
transfers.
7. CITY OF BANGOR
7
GENERAL FUND - REVENUES
Budget Actual Variance
Taxes 55,067,630 56,005,218 937,588
State revenue sharing 2,369,000 2,305,725 (63,275)
State education subsidy 17,160,944 16,970,557 (190,387)
Other intergovernmental 7,222,045 7,423,731 201,686
Licenses and permits 677,759 1,389,717 711,958
Charges for services 11,872,803 11,869,687 (3,116)
Fines, forfeits and penalties 32,000 27,263 (4,737)
Revenue from use of money and property 721,400 700,557 (20,843)
Total revenues 95,123,581 96,692,455 1,568,874
Appropriation from fund balances 1,572,110 68,339 (1,503,771)
Other financing sources 45,000 106,930 61,930
Transfers from other funds 27,000 21,113 (5,887)
Total revenues and other financing sources 96,767,691 96,888,837 121,146
8. CITY OF BANGOR
8
GENERAL FUND - EXPENDITURES
Budget Actual Variance
General government 5,055,673 4,982,683 72,990
Public safety 16,774,996 16,410,045 364,951
Health, community services, and recreation 4,992,146 4,824,616 167,530
Public buildings and services 10,283,684 10,047,240 236,444
Other agencies 4,549,005 4,566,381 (17,376)
Education 51,609,961 47,581,964 4,027,997
Pensions and other fringe benefits 2,206,898 2,149,269 57,629
Debt service 2,754,485 2,753,492 993
Tax increment financing payments 897,850 922,264 (24,414)
Total expenditures 99,124,698 94,237,954 4,886,744
Transfers to other funds 780,000 830,000 (50,000)
Appropriations to assigned fund balance - 288,450 (288,450)
Total expenditures and other financing uses 99,904,698 95,356,404 4,548,294
9. CITY OF BANGOR
DEBT PER CAPITA – LAST TEN FISCAL YEARS
9
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Debt per capita 2,121 2,157 2,070 1,978 1,945 2,079 1,795 2,466 1,903 2,036
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
Debt per capita calculations only include non-self supporting debt.
10. CITY OF BANGOR
10
TAX COLLECTIONS COMPARED TO OTHER CITIES
2010 2011 2012 2013 2014
Augusta 98.10% 98.30% 96.72% 96.67% 96.73%
Bangor 96.00% 97.20% 97.30% 97.37% 97.47%
Lewiston 97.10% 97.10% 97.23% 97.62% 97.60%
Portland 98.15% 98.31% 98.28% 98.77% 98.61%
South Portland 98.20% 98.00% 97.85% 98.14% 98.27%
94.00%
94.50%
95.00%
95.50%
96.00%
96.50%
97.00%
97.50%
98.00%
98.50%
99.00%
•Collections for any given year are for the taxes levied in that year only.
11. CITY OF BANGOR
NONMAJOR ENTERPRISE FUNDS FY 2012 – FY 2014
11
Revenues Expenses Change in Net Position
2014 1,002,164 925,595 76,569
2013 989,228 972,327 16,901
2012 1,013,509 995,631 17,878
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
PARKING
Revenues Expenses Change in Net Position
2014 440,295 497,833 (57,538)
2013 417,407 473,289 (55,882)
2012 397,426 533,671 (136,245)
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000
600,000
PARK WOODS
12. CITY OF BANGOR
NONMAJOR ENTERPRISE FUNDS FY 2012 – FY 2014
12
Revenues Expenses Change in Net Position
2014 359,029 149,590 (1,002,383)
-
100,000
200,000
300,000
400,000
STORM WATER
Revenues Expenses Change in Net Position
2014 575,344 643,323 (67,979)
2013 593,415 687,317 (93,902)
2012 629,935 671,113 (45,608)
(200,000)
-
200,000
400,000
600,000
800,000
GOLF COURSE
The Storm Water change in net position includes the restatement of the beginning balance.
13. CITY OF BANGOR
13
Revenues Expenses Change in Net Position
2014 578,911 628,252 (49,341)
2013 568,465 586,140 (17,675)
2012 1,047,040 615,816 431,224
(100,000)
100,000
300,000
500,000
700,000
900,000
1,100,000
ECONOMIC DEVELOPMENT
NONMAJOR ENTERPRISE FUNDS FY 2012 – FY 2014
14. CITY OF BANGOR
MAJOR ENTERPRISE FUNDS FY 2012 – FY 2014
14
Revenues Expenses Change in Net Position
2014 8,465,840 6,843,975 1,621,865
2013 7,736,919 6,827,790 909,129
2012 7,371,821 6,773,495 598,326
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
SEWER
15. 15
Revenues Expenses Change in Net Position
2014 16,446,198 20,855,066 (4,408,868)
2013 18,432,227 20,722,960 (2,331,441)
2012 14,746,582 20,752,350 (6,005,768)
(10,000,000)
(5,000,000)
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
AIRPORT
CITY OF BANGOR
MAJOR ENTERPRISE FUNDS FY 2012 – FY 2014
16. CITY OF BANGOR
16
Revenues Expenses Change in Net Position
2014 3,648,094 6,317,039 501,772
2013 1,249,595 3,634,680 6,428,404
2012 1,304,384 1,919,301 (180,780)
(500,000)
500,000
1,500,000
2,500,000
3,500,000
4,500,000
5,500,000
6,500,000
7,500,000
BASS PARK
MAJOR ENTERPRISE FUNDS FY 2012 – FY 2014
The change in net position includes transfers from other funds.
Editor's Notes
Cash and investments increased $1,682,727. This amount is shown net of interfund receivables. Cash itself increased $4,643,122, which was offset by a decrease in the amounts due to the General Fund of $2,960,395.
Intergovernmental receivables increased by $812K, due to the timing of reimbursements by the State and the Department of Transportation for grant expenditures for the school department and the bus.
Other assets are made up of loan receivables, inventory and prepaid items.
Accounts payable and accrued wages and benefits fluctuate due to the timing of payments at year end.
Unavailable property tax revenues are taxes that have not been collected 60 day after fiscal year end. The amount of taxes deferred at year end decreased as the amount of taxes collected before year end increased.
Assigned fund balance decreased $775,624 as encumbrances related to the school department were reported under restricted fund balance this year.
Restricted fund balance increased by $787,479- see above.
Unassigned fund balance increased $1,871,458 due to the fact that revenues exceeded expenditures and transfers out by $1.5 million.
The FY 14 fund balance increased by $1.9 million this year due to revenues exceeding expenditures and transfers.
Bangor’s unassigned fund balance as a percentage of the budget has increased from 8.11% last year.
Bangor’s unassigned fund balance as a percentage of budget, when calculated according to the city’s policy was 10.88% in 2014, which is within the city’s charter parameters of no more than 16.66% and no less than 8.33%.
Taxes were $938K over budget as excise taxes exceeded the budget by $874K, due to an increase in new car registrations for rental businesses and Emera fleets.
State revenue sharing and state education subsidy were lower than budget due to changes in funding at the state level.
Other intergovernmental revenues were higher than budgeted due to higher than anticipated state agency client reimbursements for the school department.
Licenses and permits were $712K higher than budgeted due to one large building permit issued related to the EMHS tower project.
Public safety was $365K under budget due to vacancies both in the patrol and in detective/identification departments.
Health, community services and recreation were $168K under budget due to a vacancy for the director position that was open for almost the entire year, plus lower demand for general assistance than anticipated.
Education is $4 million under budget as the city adds the carryforward balances for the school department to the budget each year. Once we back out 2014 carryforward balances of $3 million, education costs were under budget by $901,573. Some of this was due to teachers who were budgeted in the General Fund but their salaries were charged to the Title 1 grant. There were also some savings in health insurance and transportation costs as those costs were lower than anticipated.
The debt per capita amount increased as the amount of debt outstanding increased due to new debt issuances.
Park woods revenues have increased steadily over the past 3 years; however, expenses continue to exceed revenues. Therefore, Park Woods had an operating loss for the third year straight and ended the year with a net deficit.
Park woods expenses include $89K in depreciation.
Parking revenues increased this year and were more consistent with 2012 revenues; expenses decreased this year and the fund had another increase in its net position for the third year straight.
Parking expenses include $268K in depreciation.
Golf course revenues continue to decline and have declined steadily over the past few years. The Golf course expenses also declined, but the course still experienced an operating loss and has operating losses for at least the past 5 years.
Golf course expenses include $76K in depreciation.
This is the first year of operations for the storm water fund. Even though revenues exceeded expenditures by $209K, the fund’s net position decreased by over $1 million as debt that was issued in prior year related to storm water upgrades was transferred to that fund.
Economic Development was considered a major fund last year and is now nonmajor as it a smaller percentage of all of the funds combined (due to the increase in Bass Park).
Revenues increased slightly and remain consistent with the prior year. Expenses increased slightly as well.
The fund experienced an operating loss for the 2nd year in a row.
Expenses include $184K in depreciation.
Sewer revenues increased by $728,921 due to rate increases, as well as changes in the billing process.
Expenses continue to increase, but are still lower than revenues.
The fund ended with positive operating results.
Revenues decreased by almost $2 million due to a decrease in military flights, plus the timing of AIP grants and related projects.
Expenses increased slightly due to an increase in the amounts spent on deicing fluid and an increase in insurance costs.
Overall the fund experienced a $4.4 million loss and has experienced losses for a few years in a row.
Expenses include $8 million in depreciation and amortization costs.
Revenues increased by $2.4 million as this was the first year of operation for the Arena.
Expenses increased by $2.7 million related to the opening of the Arena. Expenses include $1.9 million in interest expenses related to the Arena bond.
Bass Park had a positive change in net position as the fund had a transfer from the Arena fund of $3.5 million related to the acquisition of new equipment paid for by the Arena fund.
