HomeMy WebLinkAbout2007 Annual Report
City of Bremerton,
Washington
Annual Financial Report
For the Fiscal Year ended
December 31,2007
City of Bremerton, Washington
CITY OF
BREMERTON,
Annual Financial Report
For the Fiscal Year ended
December 31,2007
Prepared by the Finance Department
City of Bremerton
345 6th Street, Suite 600
Bremerton, WA 98337
(360) 473-5210
Website: www.ci.bremerton.wa.us
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CITY OF BREMERTON
Comprehensive Annual Financial Report
For the Fiscal Year Ended December 31, 2007
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION
Letter of TransmittaL........................ ...... ............................ .................. ....... .... ....... ........... ....... ............. ....... ........................... 1
Organization Chart ...... ................... ............................. ............................ ....... ....... ......... .......... ............. ... ............................. 11
List of Elected and Appointed Officials ................................................................................................................................ 12
FINANCIAL SECTION
Management' Discussion and Analysis .......................................................................................................................... 13
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets ....................................... ..................... ...... .... .......... ..... ..................................... ........................ 25
Statement of Activities........ ..... ...... .............. ......... .............................. .............. .................... ................. ......................... 26
Fund Financial Statements:
Balance Sheet - Governmental Funds............................................ ........................... .......... ...... ...................................... 27
Statement of Revenues, Expenditures, and Changes in Fund Balances-
Governmental Funds ... .......... ................. ........................................ ....... ................. .......... ................................. ...... 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes
In Fund Balances of Governmental Funds to the Statement of Activities............................................................... 29
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
General Fund...... ..... ..... .... ...... ....... ..... ..... ...... .... ....... ..... ...... .... ........ ....... ....... .......... ....... ...... ... .... ... ...... ... .... ..... .... ... 30
Arterial Street Fund.................................... ..................................... ....... ................ ........ ......................................... 31
Statement of Net Assets - Proprietary Funds.................................................................................................................. 32
Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds ............................................. 33
Statement of Cash Flows - Proprietary Funds ................................................................................................................34
Statement of Fiduciary Net Assets - Fiduciary Funds .................................................................................................... 36
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds.................................................................................. 37
Notes to the Financial Statements....... ........................... ............. .............. ....................... ......... .................................. ............ 38
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet - Nonrnajor Governmental Funds.................................................................................................63
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonrnajor Govemrnental.Funds ........... 66
Schedules of Revenue, Expenditures, and Changes in Fund Balances - Budget and Actual:
Special Revenue Funds..................................... ...... ....... .................... ...... .................... .......... ............................. .... ........ 69
Debt Service Funds ...... .......... ................................................................ ....... ....... ....... ........................ ...... ...................... 82
Capital Proj ects Funds............ .......... ................................................ ........ ........................................... ........................... 83
Combining Statement of Net Assets - Other Proprietary Funds ........................................................................................... 90
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Other Proprietary Funds....................... 91
Combining Statement of Cash Flows - Other Proprietary Funds.......................................................................................... 92
Combining Statement of Net Assets - Internal Service Funds.............................................................................................. 94
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Internal Service Funds ......................... 95
Combining Statement of Cash Flows ~ Internal Service Funds ............................................................................................ 96
STATISTICAL SECTION
Financial Trends:
Table I - Net Assets by Component ..................................................................................................................................... 99
Table 2 - Changes in Net Assets ......................................................................................................................................... 100
Table 3 - Fund Balance of Government Funds ................................................................................................................... 101
Table 4 - Changes in Fund Balances of Government Funds ............................................................................................... 102
Revenue Capacity:
Table 5 - Assessed and Estimated Actual Value of Taxable Property ................................................................................ 103
Table 6 - Property Tax Rates for Direct and Overlapping Governments ............................................................................ 104
Table 7 - Principal Property Taxpayers .............................................................................................................................. 105
Table 8 - Property Tax Levies and Collections ...................................................................................................................106
Debt Capacity:
Table 9 - Ratio of Net General Bonded Debt....................................................................................................................... 107
Table 10 - Computation of Direct and Overlapping Debt................................................................................................... 108
Table II - Computation of Legal Debt Margin .................................................................................................................. 109
Table 12 - Ratio of Annual Debt Service Expenditures for General Bonded Debt
To Total General Expenditures ......................................................................................................................... 110
Table 13 - Water and Sewer Revenue Bond Coverage....................................................................................................... III
Demographic and Economic Information:
Table 14 - Demographic Statistics ...................................................................................................................................... 112
Table 15 - Miscellaneous Statistics....... .... .... ........ ....... ...... ................... .............. ................. ........ ......... ....... ....................... 113
City of Bremerton / 1
Department of Financial Services
345 6th Street Suite 600,
Bremerton, WA 98337
Telephone: 360-473-5722
Fax: 360-473-5200
laura.lyon@ci.bremerton.wa.us
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Laura S. Lyon, Director of Financial Services
August 1, 2008
Honorable Mayor and City Council
City of Bremerton
Bremerton, Washington
The Department of Financial Services is pleased to provide you with the Annual Financial Report of the
City of Bremerton for the fiscal year ended December 31, 2007 . We believe the information, as presented,
is accurate in all material aspects; that it is presented in a manner designed to set forth fairly the financial
position and results of operations of the City as measured and reported by the financial activity of its
various funds; and that all disclosures necessary to enable the reader to gain an adequate understanding of
the City's financial affairs have been included. Responsibility for both the accuracy of the data, and the
completeness and fairness of the presentation, including all disclosures, rests with city management.
The report was prepared by the Department of Financial Services in accordance with generally accepted
accounting principles (GAAP) and is intended to provide sufficient information to permit the assessment
of stewardship and accountability, to demonstrate legal compliance, and to provide management control.
The report includes all funds, account groups, agencies, and boards and commissions that are controlled
by, or dependent on, the City's executive and legislative departments.
Cities and counties of the State of Washington must comply with the Budgeting, Accounting and
Reporting System (BARS) prescribed by the Office of the State Auditor. State law also provides for an
annual independent audit by the Office of the State Auditor and requires timely submission of annual
financial reports to the State for review.
As a recipient of federal, state and county financial assistance the City is required to undergo an annual
single audit in conformity with the provisions of the Single Audit Act Amendments of 1996 and u.S.
Office of Management and Budget Circular A-133, Audits of State and Local Governments. This audit is
conducted by the State Auditor's Office in conjunction with the City's annual independent audit. The
results of the City's single annual audit for the fiscal year ended December 31, 2007 is not yet available
but we expect that no instances of material weaknesses in the internal control structure or significant
violations of applicable laws and regulations will be noted. Once completed the auditor's report will be
provided to all regulatory agencies and made available to the public upon request.
In developing and evaluating the City's accounting control system, consideration is given to the adequacy
of internal accounting controls. Accounting control comprises the plan of organization and procedures
and records that are concerned with the safeguarding of assets and the reliability of financial records and
consequently are designed to provide reasonable assurance that:
City of Bremerton /2
. Transactions are executed in accordance with management's general or specific authorization
. Transactions are recorded as necessary to: 1) permit preparation of financial statements in
conformity with (GAAP), or any other criteria, such as finance-related legal and contractual
compliance requirements applicable to such statements, and 2) maintain accountability for
assets
. Access to assets is permitted only in accordance with management's authorization
. The recorded accountability for assets is compared with existing assets at reasonable intervals
and appropriate action is taken with respect to any differences
The definition of accounting control assumes reasonable assurance that the objectives expressed in it will
be accomplished by the system. The concept of reasonable assurance recognizes that the cost of internal
control should not exceed the benefits expected to be derived. We believe that the City's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of
financial transactions.
GAAP 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
of Bremerton's MD&A can be found in the Financial Section of this report.
Profile of the Government
The City of Bremerton was incorporated on October 14, 1901, and operates under the laws of the State of
Washington applicable to a home-rule charter city under a Mayor/Council form of government. The City
Council is comprised of nine members, elected by district by the citizens of the City, each serving a four-
year term. The City Council members are part-time elected officials who exercise the legislative powers
of the City and determine matters of policy. The Mayor, a full-time elected official, is the chief executive
officer of the City. The officers and department directors are appointed by the Mayor with City Council
approval.
The City provides a full range of municipal services including fire protection/emergency medical
services; law enforcement; municipal court; parks and recreation facilities/activities; infrastructure
construction and maintenance; economic development; planning; zoning; finance and administration; and
operates water, sewer, and stormwater utility systems. Currently, there are 370 full-time employees of
the City.
Located in Kitsap County, eleven miles across the water west of Seattle, the City of Bremerton is the
geographic center of the Puget Sound region. Bremerton is the 2ih largest city in the State of
Washington with a current population of 35,810 within an incorporated area of approximately 23 square
miles.
The City of Bremerton has undergone a number of dramatic changes in the past several years. A city
which has been highly dependent upon the military and (up until recently) had experienced a prolonged
period of economic stagnation fueled in part by the construction of a highway system in the 1970' s that
essentially bypassed the city - Bremerton is currently investing in itself and is emerging as the urban
center for Kitsap County. The City has been engaged in a major redevelopment effort with a particular
emphasis on its downtown core. The revitalization effort is designed to build off of the City's abundant
assets; a superior natural setting with a waterfront area downtown, a newly-rebuilt ferry terminal for the
Washington State ferry system and local transit, a location that is within commuting distance of Seattle
City of Bremerton / 3
and other regional employment centers, availability of quality medical facilities, a thriving community
college which is expanding into four year programs, affordable housing, and a rich maritime history to be
celebrated.
Financial Information
· ACCOUNTING
The accrual basis of accounting is used for all funds except the governmental fund types and agency
funds, which use the modified accrual basis of accounting. Accounting and budgetary systems will, at all
times, conform to Generally Accepted Accounting Principles, the State of Washington Budgeting
Accounting Reporting System (B.A.R.S.) and local regulations. The accounts of the City are organized on
the basis of funds and account groups, each of which is considered a separate accounting entity. The City
uses governmental, proprietary and fiduciary funds. Each governmental fund or agency fund is accounted
for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balances,
revenues and expenditures. Proprietary funds use the revenue, expense and equity accounts of similar
businesses in the private sector. Specifically, the City maintained twenty nine (29) budgeted funds in
2007 comprised of the following: General Fund, thirteen Special Revenue funds, one Debt Service fund,
four Capital Project funds, six Enterprise funds, three Internal Service funds, and one Trust and Agency
fund.
· BUDGETING
The City of Bremerton prepares its budget on an annual basis under the authority granted by chapter
35.33 RCW. The budget process is designed to meet the operations and service needs of the City by
integrating the planning and implementation of City programs and objectives with the allocation of
resources sufficient to support such services and programs. The budget, as adopted, constitutes the legal
authority for expenditures.
The City budget is adopted by fund and departments within each fund, and by category group level which
consist of five distinct categories - 1) personnel, 2) supplies, services alld taxes, 3) debt service, 4) capital
expenditures, and 5) transfers. Expenditures may not legally exceed appropriations as established by
fund, department, and category group. Transfers or revisions within funds are allowed, but supplemental
appropriations must be approved by the City Council following public hearings. All appropriations,
including capital projects, lapse at year-end.
A "Capital Facilities Plan" is prepared annually in accordance with the requirements of the Washington
State Growth Management Act and defines the long-term capital plan of the City. However, the
individual capital project expenditures are appropriated through annual budget ordinances.
· INTERNAL CONTROL
The City of Bremerton maintains an internal control structure designed to provide reasonable assurance
that the assets of the city are protected from loss, theft, or fraud and that adequate accounting data are
compiled to allow for the preparation of financial statements in conformity with generally accepted
accounting principles (GAAP). The requirement for reasonable assurance recognizes that: 1) the cost of
a control should not exceed the benefits likely to be derived, and 2) the valuation of costs and benefits
requires estimates and judgments by management.
Although funds are legally appropriated at the fund level, the level of budgetary control is at the
departmental level within each fund. After adoption, budget increases or decreases for funds must be
City of Bremerton /4
authorized by the City Council. City code further controls spending at the "category" level within each
budget with the Mayor authorized to transfer appropriations between category groups within a
department's budget provided such amount does not exceed $10,000.
· AUDITING OF CITY FINANCES
State laws require audits for cities such as Bremerton to be conducted by the Office of the State Auditor.
In addition to meeting state requirements, the audit must meet the requirements of the federal Single
Audit Act of 1984, and the Single Audit Act amendments of 1996 which substantially revised various
provisions of the 1984 Act, and the related u.S. Office of Management and Budget Circular A-133. An
audit is conducted annually in accordance with generally accepted auditing standards and the standards
set forth in the General Accounting Office's Government Auditing Standards. It must examine, among
other things, the financial condition and resources of the city, whether the laws and constitution of the
State are being complied with, and the methods and accuracy of the city's accounts and reports. As of
the date of this report the audit of the 2007 general purpose financial statements has not been concluded.
At conclusion of the audit a complete auditor's report will be made available at the Bremerton City
Clerk's office.
FACTORS AFFECTING FINANCIAL CONDITION
Information presented in the financial statements is best considered III the broader context of the
economic environment in Bremerton and the surrounding area.
· LOCAL ECONOMY
The economy of the City of Bremerton is closely tied to United States Naval installations which employ
over 13,500 civilians and 11,330 military personnel throughout Kitsap County. Major employers, all
holding support contracts with the Navy, include Johnson Controls, BAE Systems, AMSEC, Lockheed
Martin, and Raytheon Systems. In total, naval contractors employ about 2,400 personnel.
The naval and Department of Defense installations in the County have a significant impact on the City's
economy. The Puget Sound region remains home to the third-largest concentration of U.S. naval bases in
the nation. Naval Base Kitsap ("NBK") was established on June 4, 2004 through the merger of Naval
Station Bremerton and Submarine Base Bangor.
Puget Sound Naval Shipyard ("PSNS") is the oldest permanent naval installation on Puget Sound, and a
major industrial employer in Washington. PSNS is now a $2 billion ship maintenance, modernization and
repair facility. The Bremerton facility is the first and only shipyard in the world that has inactivated and
safely recycled nuclear powered ships, and is widely recognized as the international authority in this field.
Naval Base Kitsap-Bremerton was created out of a portion of the shipyard in late 1998. It is home to the
carrier USS John C. Stennis and two fast attack submarines: the USS Seawolf and the USS Connecticut.
Additionally, the station serves sailors from ships berthed at PSNS for maintenance and
decommissioning.
Naval Base Kitsap-Bangor encompasses 7,201 acres. It serves the Navy as a homeport for the TRIDENT
Submarines. Industrial activities include incremental submarine over-hauls, modernization and
maintenance; assembly and processing of missiles and components; and training military and civilian
personnel on the latest military technologies. Naval Base Kitsap-Bangor includes the following:
City of Bremerton / 5
. Submarine Squadron Seventeen's mission is to support the four submarines and crews that make
up the strategic deterrent force in the Pacific. Submarine Squadron Nineteen's mission is to
support the six submarines and 12 crews that make up the strategic deterrent force in the Pacific.
The Squadron 19 staff consists of 17 officers and 60 enlisted people.
. Naval Submarine Support Command's mission is to centralize administrative and support
functions, economize resources and provide a common pool of experts to support the submarines
and staffs of Submarine Squadrons Seventeen and Nineteen, visiting and other assigned units,
including submarines in availability at PSNS. Specific areas of responsibility include
Administration, Personnel, Medical, Legal, Chaplain, Supply, Combat Systems, Material,
Communications, and Operations.
. Commander, Submarine Group 9 (COMSUBGRU 9) is the senior Submarine Force Command in
the Pacific Northwest, and the U.S. West Coast. Its mission is to deter threats to the United
States and its allies within the Pacific Fleet area of responsibility.
The Naval Undersea Warfare Center ("NUWC") at Keyport provides a wide array of services supporting
the Navy's undersea warfare systems, countermeasures, and aircraft carrier tactical support systems, and
is the Navy's maintenance depot for torpedoes, mines and mobile targets. NUWC exploits leading-edge
industrial technology and custom engineering to support the research and development community in
prototype development and testing.
The Fleet Industrial Supply Center, Puget Sound ("FISC") was established in 1967 when the Naval
Supply Depot, Seattle, the Naval Fuel Depot, Manchester and certain functions of the Supply Department
at PSNS were consolidated. FISC provides a variety of logistics support services and products to fleet,
shore, and industrial commands of the Navy and other joint and allied forces. It delivers combat
capability through logistics by teaming with regional partners and customers to provide supply chain
management, procurement, contracting and transportation services, technical and customer support,
defense fuel products, and worldwide movement of personal property.
The Naval Hospital Bremerton is a fully accredited community-based acute care and obstetrical hospital,
is licensed for 67 beds and houses a variety of ambulatory, acute and specialty clinics. It administers
professional care to the approximately 56,000 eligible military families residing within its area of
responsibility. The Hospital is the parent command for three major branch medical clinics, located at
PSNS, Submarine Base Bangor, and Naval Station Everett. The main hospital also provides an
Occupational Health and Industrial Hygiene operation, Preventive Medicine, and Alcohol Treatment
Departments.
ARMED FORCES PERSONNEL
Year Personnel
1980 7,998
1990 10,519
1995 11,916
2000 10,624
2004 11,612
2005 11,494
2006 11,330
Source: Naval Station Public Affairs Office
Note: Variations in the figures reflect changes in the number of ships and Naval personnel at the Naval Station Bremerton. Includes only
military personnel home port in Kitsap County.
City of Bremerton / 6
Other Maior Employers
The Port of Bremerton (the "Port") operates the Bremerton National Airport and the 560-acre Olympic
View Industrial Park, both located approximately 10 miles southwest of the City. The park includes 35
firms which employ a total of approximately 700 people. Over 500 acres of land at the industrial park
are designated as a foreign trade zone which offers duty savings to its tenants.
Bremerton National Airport is the largest airport in the County, with a 6,200-foot runway and full
instrumentation and lighting systems. The airport can handle all general aviation aircraft and most
transport and military planes. Charter passenger and air freight services are available to SeaTac Airport,
the major international airport in the Puget Sound area.
Health care needs are met by several facilities in the Bremerton area including the Naval Hospital -
Bremerton, described earlier. Harrison Medical Center in Bremerton has 1,972 employees, 253 beds and
approximately 481,000 square feet of medical facilities in 11 distinct locations. These facilities provide
excellent care in open heart surgery, cardiology, orthopedics, oncology, emergency care (a level III
trauma center), home health and sleep medicine. Harrison was recently recognized as having the #1
cardiac surgery program in the state and in the top 10% nationally, as rated by Healthgrades.com.
Olympic College is a two-year community college located in Bremerton with 12,895 (all campus
students) and an annualized enrollment of approximately 5,115 (full-time equivalents). The college has
1,382 employees of whom 490 are full-time and adjunct faculty. Associate of Arts degrees are offered in
four fields under 34 transfer programs. Olympic College also offers a Bachelor of Arts degree In nursing
as well as Bachelor's and Master's degree partnership programs with Old Dominion, Saint Martin's and
Western Washington University. In 2007, the 55,000 square foot Science Technology Building opened
providing science lab facilities, high-tech computer classrooms and general purpose classrooms. Plans
are now underway to break ground in 2008 for an 83,000 square foot structure to house the new
Humanities and Student Services building.
The Bremerton School District consists of one high school, one alternative high school, one middle
school, six elementary schools, an Alliance Academy for home school programs and is the host district
for the West Sound Technical Skills Center. Total student enrollment is 5,152 students with 4,998 full-
time equivalents. The district employs 331 teachers with an average student per teacher of 15.5. In May
of 2005, Bremerton voters approved a $30.5 million bond issue for capital improvements. District
improvements include; additional wings being added to Mountain View Middle School and Bremerton
High School, as well as other technological and capital improvements.
Development Activity
The City of Bremerton in partnership with other public entities gave a jump-start to the City's
revitalization program by infusing public dollars into key infrastructure improvements. Some of the
major projects completed at this time are:
. Construction of the new Kitsap Conference Center complex in the Bremerton Harborside
District - 10,000 square foot venue accommodating up to 750 guests
.' New three-floor public parking facility constructed as part of the Conference Center complex
- 518 parking spaces.provided
· 104,000 square foot Norm Dicks Government Center building providing offices for the City,
the Bremerton Health District, the Bremerton Housing Authority, and several other
governmental entities. The City owns 25% of the Government Center for city office space.
City of Bremerton / 7
. New City fire station located at 9th Street and Park Avenue - completed in June 2005
. Purchase and renovation of a new law enforcement building on Burwell Street - completed in
April 2007
. First phase of the Bremerton Gateway Project -' this is a multi-year traffic modification and
beautification project for the City's main entry corridor
. New skateboard park at East Park
. The Harborside Park and Naval Museum - celebrates the City's mantIme history and
provides public friendly interface between the City and the Puget Sound Naval Shipyard
Some of the major projects the City currently has in progress are:
. Acquisition or construction of a new municipal court building
. Next phase of the Bremerton Gateway Project
. Harborside Waterfront Boardwalk - The City of Bremerton is developing a project that will
construct a 3,200-foot-long over-water boardwalk connecting the existing Louis Mentor
Boardwalk in the Harborside District to the City's popular Evergreen Park. The boardwalk
will serve two purposes; it will provide a recreational waterfront experience for residents and
visitors and it will provide access for maintenance of an adjacent sewer on the beach.
. Evergreen Park expansion project - reclamation of a brown fields area and expansion of one
of the City's most popular parks
In addition to the City's projects, there are many other projects either completed or underway that is being
undertaken separately by public entities or private developers. Some examples include:
. Expansion of the Harborside Marina - a Port of Bremerton project which added 300 boat
slips and includes a 1,400-foot-long floating breakwater that can be used for festivals and
other events - completed in May of 2008
. Pedestrian/Bremerton Transit Center Access Project - The Washington State Department of
Transportation plans to construct a 950-foot long tunnel under portions of 1st Street, Pacific
Avenue, the future Maritime Plaza and Burwell Street to remove offloading ferry traffic from
the downtown core. Construction began mid year 2007.
. Condominiums - Harborside Condominiums Phase 1 (78 units) and The 400 Condominiums
(66 units)
. New Kitsap Credit Union headquarters building constructed in downtown Bremerton
· New Restaurants - Anthony's Homeport Restaurant, a variety of smaller eateries in the
Conference Center Complex including Starbucks, Coldstone Creamery, Taco del Mar, the
Fritz, Fraiche Cup, and several others throughout the City
· Hotels - Hampton Inn & Suites located in the Harborside Conference Center complex and
planned additional hotel projects which are in preliminary/design phases at this time
. Several new and remodeled office/retail buildings - downtown and elsewhere in the City
· New residential housing developments and redevelopment of existing areas - including the
East Park development and West Park redevelopment projects
City of Bremerton / 8
· LONG-TERM FINANCIAL PLANNING
Long-term financial planning for the City is framed by the City's Comprehensive Plan which was adopted
in December 2004 and by the guidance of the City's Financial Goals & Policies which were adopted in
June 2005 and subsequently updated. The Comprehensive Plan represents the expressed vision of the
City and related expectations on the nature of growth and services to be provided. The Financial Goals
& Policies define what constitutes a "good outcome" for the City in regards to financial planning and
decisions (Goals) and the boundaries or demonstrated performance deemed necessary to achieve those
objectives (Policies).
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Several long-term capital projects have recently been completed, are currently underway, or are
anticipated to begin shortly in Bremerton with particular focus on the redevelopment of the downtown
core. Financing of these projects has been achieved through a combination of City revenue sources,
issuance of revenue bonds and voted and non-voted general obligation bonds, and grant funding from a
variety of federal and state programs.
The City's water, wastewater and stormwater utilities have undertaken the construction of a significant
number of capital projects over the past several years which have been funded primarily with loans -
resulting in cash flow and debt management challenges. The City concluded a comprehensive utility rate
study in 2004 which provided a multi-year plan for increasing rates and implementing significant
increases in general facility charges to cover the cost of new capital improvements. Upon the conclusion
of this study, the City Council approved the utility rate increase plan with the adoption of an ordinance
implementing the first phase of rate increases and new general facilities charges. The rate increases and
new general facilities charges became effective on November 1, 2004. The City Council subsequently
approved the second phase of rate increases which became effective on January 1,2006. The initial plan
implementation included a provision in the City's municipal code (BMC 15.06.015 (b)) which
automatically escalates fees for the three city-owned utilities using the Seattle Consumer Price Index
(CPI) on an annual basis unless a larger increase is authorized by the City Council. This provision
ensures the three utilities are adequately funded in compliance with the City's adopted financial goals and
policies. Utility system rates were increased based upon the Seattle CPI effective January 1, 2007 in
accordance with the City code.
Transportation improvements are ongoing for the Bremerton Gateway transportation improvement project
from the Bremerton Ferry Terminal to Gorst. This project is substantially funded with state and federal
grant resources.
As Bremerton moves forward, economic indicators will be continually monitored and adjustments to city
spending and services made to maintain the city's financial health.
.
. CASH MANAGEMENT
The City invests only in securities authorized by State law, and primarily purchases certificates of deposit
and obligations of both the U.S. Government and government sponsored agencies. As stated in the City's
investment policy, the primary objectives of investment activities are safety, liquidity, and then yield.
The safety of the City's investment portfolio is provided through the diversification and quality of
investments purchased, as well as the use of a delivery-versus-payment method for settlement of any
transactions. To further ensure the safety of the City's investments, all securities are held and transactions
processed by the custodial agent, Bank of New York.
City of Bremerton / 9
Liquidity is maintained by attempting to match investment maturities with cash flow requirements,
limiting maturities to five years for general operating funds, and keeping a balance in the Local
Government Investment Pool sufficient to meet short-term obligations. The Local Government
Investment Pool is a state-managed account, which provides local governments with an efficient way to
invest short-term and offers almost immediate cash availability. It operates similarly to a commercial
money market account.
The City may invest in any of the secuntIes identified as eligible investments as defined by
RCW35AAO.050 and RCW43.84.080. In general, these consist of certificates of deposits, United States
Treasury Notes and Bonds, government sponsored securities, banker acceptances, and repurchase
agreements.
· RISK MANAGEMENT
The City's Risk Manager develops and implements risk management policies and programs to establish a
clearly defined risk management structure. The primary goal is to control the City's risk exposures and
losses in order to protect the City's financial resources. As part of this goal, self-insurance is currently
utilized as an alternative to conventional insurance in the areas of Workmen's Compensation and liability.
The Risk Manager considers available financial resources and purchases insurance for appropriate excess
protection. The Risk Manager also serves as a general advisor to all departments on risk management
issues such as identifying and evaluating potential risks, providing employee accident control training,
loss reporting and addressing the City's Safety Committee concerns.
The City of Bremerton utilizes a self-insurance fund for its risk management program. The City's Risk
Manager analyzes the insurance markets and its risk management options. The City uses a deductible
program with the deductible set at $100,000 for property losses. The self-insured retention for liability
and worker's compensation losses is $250,000 and $300,000, respectively.
· PENSIONS AND OTHER POST -EMPLOYMENT BENEFITS
The majority of the City's employees participate in a mandatory state pension system (LEOFF for
uniformed police officers and firefighters, and PERS for all other employees). The City pays the
prescribed rate for all employees (and employees contribute as well), which satisfies the pension
obligations for these accounts. Each state system is broken into segments related to when that segment
"closed" and the benefit structure changed. The LEOFF 1 system closed in 1978 and LEOFF 2 started at
that time. This is significant because employees eligible under LEOFF 1 are entitled to "necessary
medical expenses" to be paid for by the city after retirement. This benefit was not included in LEOFF 2.
Also, prior to the state pension systems, the City operated its system known as the Firemen's Pension
Fund (FPF). Again, employees entitled to the benefits as defined in the FPF receive medical benefits and
a city paid pension as defined more thoroughly in the notes to the financial statements.
The City maintains a fund dedicated to providing resources for the pension benefits to those entitled under
the FPF. The post-employment medical benefits for eligible retirees are provided through the same
medical insurance provider used for active city employees and paid for from annual budgeted funds.
There is no reserve account for the post-employment medical benefits.
Acknowledgments
The preparation of this report could not have been accomplished without the efforts of the Department of
Financial Services and Public Works & Utilities finance staff. We would like to express our appreciation
City of Bremerton / 10
to all those who assisted and contributed to the preparation. We would also like to thank the Mayor and
City Council members for their dedication and commitment to providing the City and the residents with a
plan to improve the financial health and welfare of the City's governmental operations.
CtJiJw H~
C~thy~tIs~n
Finance Ohfcer
JUDGE
MUNICIPAL COURT
Council to City
Council & Mayor
Civil Legal Services
to Departments
Prosecution
Civil Litigation
Patrol
Traffic
Investigation
Crime Prevention
School Resources
Home Detention
Jail Contract
Photo Enforcement
Community Policing
Westpark Officer
Explorer Program
Reserve Officer Program
Special Operations Group
Records Management
Admin Support Services
Public Access TV
B & 0 Tax
Business &
Regulatory Licensing
Procurement
City Clerk
Conference Center
Operating
Debt Management
Accounting/Budget &
Financial Information
Fiscal Policy Overslte
Cash & Bank
Management Srvs
Risk Management
Human Resources
Projects Facilitator
:
Engineering Design
Parks Planning
Land & Use Planning
Fire Suppression
Attract New
Development
Create
Partnerships
Increase
Business
Street Lighting & Main\.
Parks/Building Malnt.
Building Inspections
Emergency Medical
Services
Utilities Maintenance
Recreation Programs
Code Enforcement
Fire Prevention
& Investigation
Facilities Maintenance
City Fountains
Environmental Review
Forest Management
Gold Mountain Golf
Permit Processing
Water Supply
Naval Museum
Zoning Admin & Enforcement
Wastewater Treatement
Jarstad Acquatlc Center
CDBG Home Programs
Surface Water Mgmt
Bremerton Senior Center
ProJect Inspections
Parks Acquisition
Construction Administration
Parks Commission Support
Equipment Rental Reserve
Permit Coordination
Surveying & Mapping
Customer Service Billing
Information Technology Srvs
()
~
o
.."
OJ
~
:3
CD
8-
:J
"'-
......
......
City of Bremerton / 12
DIRECTORY OF OFFICIALS
2007
ELECTED OFFICIALS:
Mayor.... .... ........ ........ ..... .... ............ ......................... ........... ...... ........ ........................... Cary Bozeman
District #1 Council Member..........................................................................................Brad Gehring
District #2 Council Member.................................................................................... Cecil McConnell
District #3 Council Member........................................................................................Adam Broclcus
District #4 Council Member.......................................................................................... Wendy Priest
District #5 Council Member....................................................................................... Mike Shepherd
District #6 Council Member.................................................................................... Dianne Robinson
District #7 Council Member.......................................................................................... Carol Arends
District #8 Council Member........................................................................................... Will Maupin
District #9 Council Member......................................................................................... Nick Wofford
Judge, Municipal Court ................................................................................................. James Docter
APPOINTED OFFICIALS:
City Attorney... ..... ......... .... .... ........ .... ..... .... ..... ...... ...... .... ....... ...... ........ ...... ......... ......Roger Lubovich
Director, Public Works and Utilities .............................................................................Phil Williams
Fire Chief .............. ............. ...... .... ......... ........ ......... ......... ................ ............ .......... ................ Al Duke
Police Chief... ..... .... .... ......... .... ..... .... .... ..... ..... ........ .... ...... ....... ........ ....... ....... ... ..... ..... ....Craig Rogers
Director of Financial Services .......................................................................................... Laura Lyon
Director of Community Development. .... ..... ....... ............ ..... ........ .... ...... ...... .... ..... .... Andrea Spencer
Director of Parks and Recreation ............................................................................. Wyn Birkenthal
City Auditor .................................................................................................................... Gary Nystul
City of Bremerton / 13
MANAGEMENT'S DISCUSSION AND ANALYSIS
The City of Bremerton (City) presents this Management Discussion and Analysis (MD&A) in order to provide a
narrative overview of the City's financial activities, focus on significant financial issues, and highlight significant
changes in the City's financial position for the fiscal year ended December 31, 2007. This information should be
read in conjunction with the financial statements and notes to the financial statements that follow.
Financial Highlights
· At the end of fiscal year 2007, the assets of the City of Bremerton exceeded its liabilities by $206.1 million.
Net assets invested in capital assets (net of depreciation and related debt) account for over 78.9 percent of this
amount ($162.7 million). Net assets restricted primarily for debt service and Community Development Block
Grant (CDBG) programs account for another 2.3 percent of this amount ($4.7 million). The remaining net
assets of$38.8 million may be used to meet the City's ongoing obligations to citizens and creditors.
· The City's net assets increased by $18.7 million (10 percent) during the fiscal year. The governmental net
assets increased by $8.4 million (10.6 percent) over the amount reported in 2006. Business-type net assets
increased by $10.3 million (9.6 percent). The Business-type increase included net income/(los~) before
contributions and transfers for the Water utility of $1,583,457, Wastewater utility of $4,626,591, Golf Course
($139,169), and non-major proprietary funds of$743,597.
· As of December 31,2007, the City's governmental funds reported a combined fund balance of $13.707 million,
a decrease of $3.267 million (19.2 percent) from the prior year end. The fund balance of the General Fund
decreased by $0.297 million and the fund balance of the Arterial Street fund increased by $0.736 million. The
remaining non-major governmental funds had a fund balance decrease of $3.706 million. The overall decrease
is largely attributable to the drawdown of special revenue and capital funds. Approximately $13 .51 million
(98.6 %) of the combined ending governmental fund balances is unreserved fund balance available to the City
for discretionary spending.
· At the end of2007, the unreserved fund balance of the General Fund was $4.085 million or 14.1 percent oftotal
General Fund expenditures of $28.998 million. The General Fund's unreserved fund balance decreased by
approximately $0.302 million from the prior year's amount of $4.387 million, a 6.9 percent decrease. This
decrease is primarily due to planned transfers and use of fund balance amounts in excess of City target levels
for capital programs.
· The City's total outstanding debt increased by $0.053 million (0.7 percent) during the current fiscal year to
$69.933 million. General obligation debt decreased by $1.7 million while revenue debt increased by $1.753
million. The City issued $5.375 million of water and sewer revenue and refunding bonds on June 14,2007 for
the purpose of paying the costs of improvements related to expansion of the sewer system to Southwest
Bremerton and to refinance the outstanding 2005 Water and Sewer Revenue Bond in order to reduce debt
service payments over the remaining life of the bonds and obtain an economic gain.
· Governmental revenues from local tax sources including sales, business & occupation, utility, and other
miscellaneous taxes, increased by $1.539 million to $28.24 million in 2007, a 5.76 percent increase over 2006.
The tax revenue increase is primarily attributed to an increase in the overall economic activity in the City.
Overview of the Financial Statements
The City's basic financial statements are presented in three parts: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. Other supplementary information in addition to the
basic financial statements is also contained in this report. This section of the management's discussion and analysis
is intended to introduce and explain the basic financial statements.
City of Bremerton / 14
Government-wide Financial Statements
The government-wide financial statements are designed to give the reader a picture of the financial condition and
activities of the City as a whole. This broad'--overview is similar to the financial reporting of private-sector
businesses. The government-wide financial statements have separate columns for governmental activities and
business-type activities. Governmental activities of the City include general government (finance, executive,
human resources), community development, public safety (police and fire), physical environment, transportation,
mental/physical health, and culture and recreation. The City's business-type activities are limited to the City's
municipal golf course and water, wastewater and stormwater utilities. Governmental activities are primarily
supported by taxes, charges for services, and grants while business-type activities are self-supporting through user
fees and charges.
The statement of net assets presents information on all of the City ofBremerton's assets and liabilities, highlighting
the difference between the two as net assets. This statement is similar to the balance sheet of a private sector
business. Over time, increases or decreases in net assets may be one indicator of improvement or deterioration in
the City's overall financial health.
The statement of activities presents information designed to show how the City's net assets changed during the
year. This statement distinguishes revenue generated by specific functions from revenue provided by taxes and
other sources not related to a specific function. The revenue generated by the specific functions (charges for
services, grants, and contributions) is compared to the expenses for those functions to show how much each
function either supports itself or relies on taxes and other general funding sources for support. All activity on this
statement is reported on the accrual basis of accounting, requiring that revenues are reported when they are earned
and expenses are reported when they are incurred, regardless of when cash is received or disbursed. Items such as
uncollected taxes, unpaid vendor invoices for goods or services received during the year, and earned but unused
vacation leave are included in the statement of activities as revenue and expenses even though no cash has changed
hands.
Fund Financial Statements
The annual financial report includes fund financial statements in addition to the government-wide financial
statements. While the government-wide statements present the City's finances based on the type of activity, general
government versus business-type, the fund financial statements are presented by fund type such as the general fund,
special revenue funds, and proprietary funds. A fund is a fiscal and accounting entity with a self-balancing set of
accounts used to account for specific activities or meet certain objectives. Funds are often set up in accordance with
special regulations, restrictions or limitations. The City of Bremerton, like other state and local governments, uses
fund accounting to ensure and show compliance with finance-related legal requirements. The City's funds are
divided into three categories: governmental funds, proprietary fUnds, andfiduciary fUnds.
Governmental funds are used to account for essentially the same functions as are reported as governmental
activities in the government-wide financial statements. The basis of accounting is different between the
governmental fund statements and the government-wide financial statements. The governmental fund statements
focus on near-term revenues/financial resources and expenditures while the government-wide financial statements
include both near-term and long-term revenues/financial resources and expenses. The information in the
governmental fund statements can be used to evaluate the City's near-term financing requirements and immediate
fiscal health. Comparing the governmental fund statements with the government-wide statements can help the
reader better understand the long-term impact of the City's current year financing decisions. To assist in this
comparison, reconciliations between the governmental fund statements and the government-wIde financial
statements are included with the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances.
The City of Bremerton maintained twenty-three (23) individual governmental funds in 2007. The City's General
and Arterial Street funds are presented separately in the governmental fund balance sheet and the governmental
City of Bremerton / 15
fund statement of revenues, expenditures, and changes in fund balances. The remaining governmental funds are
combined into a single column labeled "Other Governmental Funds". Information for each of the nonmajor
governmental funds is provided in the combining statements in this report.
The City maintains budgetary control over its operating funds through the adoption of an annual budget. Budgets
are adopted at the fund level in accordance with City code and state law. A budgetary comparison statement is
presented for the general and arterial street funds as basic financial statements.
Proprietary funds are used by governments to account for their business-type activities. Business-type activities
provide specific goods or services to a group of customers that are paid for by fees charged to those customers.
There is a direct relationship between the fees paid and the services received.
The City of Bremerton has two types of proprietary funds: enterprise funds and internal service funds. Enterprise
funds are used to account for goods and services provided to citizens. Internal service funds are used to account for
goods and services provided internally to various City departments.
The City's six (6) enterprise funds are used to report the same functions presented as business-type activities in the
government-wide statements with the fund statements providing more detail than is reported in the government-
wide statements. The enterprise fund statements provide separate information for the City's municipal golf course,
water and wastewater utilities. The remaining enterprise funds are combined into a single column labeled "Other
Proprietary Funds". Information for each of the non-major enterprise funds is provided in the combining statements
in this report.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's
various functions. The City uses internal service funds to account for maintenance and acquisition of its fleet of
vehicles, insurance premiums and claims as well as information technology services. Internal service funds benefit
both governmental and business-type activities and are allocated accordingly in the government-wide statement of
activities.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments, or other funds. Fiduciary funds are not included in the government-wide
financial statements because their assets are not available to support the City ofBremerton's activities.
The City has two types of fiduciary funds. Agency funds are custodial in nature and do not include revenues and
expenses as they do not measure the results of operations. The Pension Trust fund accounts for payment of medical
premiums, pension and disability payments for firefighters and law enforcement officers hired under the Law
Enforcement Officers and Fire Fighters (LEOFF) 1 retirement program.
Government-wide Financial Analysis
Statement of net assets
The statement of net assets can serve as a useful indicator of the City's financial position. The City of Bremerton's
net assets at December 31,2007, total $206,101,031. Following is a condensed version of the government-wide
statement of net assets. This is the fifth year that the City has presented its financial statements under the new
reporting model required by Governmental Accounting Standards Board Statement No. 34 (GASB 34), Basic
Financial Statements - and Management's Discussion and Analysis -for State and Local Governments. Two years
of financial information in the GASB 34 format are presented.
City of Bremerton / 16
City of Bremerton's Net Assets
Governmental Activities Business-Type Activities Total
2007 2006 2007 2006 2007 2006
Current Assets $ 23,287,025 $ 25,551,900 $ 23,543,284 $ 13,540,160 $ 46,830,309 $ 39,092,060
Restricted Assets 3,168,374 7,390, I 08 1,662,250 993,242 $ 4,830,624 8,383,350
Capital Assets 98,510,040 88,549,361 133,876,714 131,760,486 $ 232,386,754 220,309,847
Other Noncurrent Assets 283,707 293,196 2,571,372 2,781,019 $ 2,855,079 3,074,215
Total assets 125,249,146 121,784,565 161,653,620 149,074,907 286,902,766 270,859,472
Current Liabilities 8,018,322 11,491,929 5,208,253 6,767,176 13,226,575 18,259,105
Deposits Payable from Restricted
Assets 1 79,224 438,089 179,224 438,089
Noncurrent Liabilities \ 28,585,353 30,121,030 38,810,583 34,667,018 67,395,936 64,788,048
T otalliabilities 36,603,675 41,612,959 44,198,060 41,872,283 80,801,735 83,485,242
Net assets
Invested in capital assets, net of
related debt 70,114,679 58,958,873 92,579,614 92,069,352 162,694,293 151,028,225
Restricted 3,168,374 7,390,108 1,483,026 557,859 4,651,400 7,947,967
Unrestricted 15,362,418 13,822,625 23,392,920 14,575,413 38,755,338 28,398,038
Total net assets $ 88,645,471 $ 80,171,606 $ 117,455,560 $ 107,202,624 $ 206,101,031 $ 187,374,230
The largest component of the City's net assets, 78.9% (or $162,694,293), is its investment in capital assets less any
related outstanding debt issued to acquire those assets. These capital assets, such as utility plant, streets, trails,
parks, fire and police vehicles, are used to provide services to the citizens. Consequently, these assets are not
available to sell and convert to cash for future spending. Although the City's investment in its capital assets is
reported net of related debt, the resources needed to repay the debt must be provided from other sources, as capital
assets cannot be used to liquidate these liabilities.
Restricted net assets consist of amounts legally or otherwise externally restricted for debt service and other
programs. Of the $ 3,168,374 of governmental restricted assets, $1,417,179 or 44.72%, is restricted for use in the
Community Development Block Grant program. A total of $23,392,920 represents the unrestricted net assets of the
City's business-type activities and may only be spent on golf course operation, water, wastewater and stormwater
utility activities. Maintenance of utility delivery systems (water lines, pump station, wells), storm drain flushing,
water meter reading, and capital construction projects, such as well rehabilitation, are examples of utility activities.
Other functions of the City may access the remaining net assets of $15,362,418 to meet ongoing obligations to
citizens and creditors. Examples of other City obligations which these net assets may be used for are: public safety
employee salaries, parks maintenance (mowing, fence repair), and ongoing street maintenance (street sweeping,
restriping, resurfacing).
At the end of the fiscal year, the City reported positive balances in all three categories of net assets for the
government as a whole, as well as for the separate governmental and business-type activities.
Changes in net assets
The changes in net assets table illustrates the increases or decreases in net assets of the City resulting from its
operating activities. The City of Bremerton's overall financial position has improved in 2007 since the net assets
have increased approximately $18.7 million. The increase was split between the government activities ($8.4
million) and the business-type activities ($10.3 million).
Following is a condensed version of the City's changes in net assets. The table shows the revenues, expenses, and
related changes in net assets in tabular form for the governmental activities separate from the business-type
City of Bremerton / 17
actIvItIes. The graphs that follow compare program revenues to program expenses and illustrate the revenues by
source separately for the governmental and business-type activities.
Revenues
Program Revenues
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
Gcncral Revenues
Property Taxes
Sales Taxcs
Business Taxes
Utility Taxes
Other Taxes
Other General Revenues
Total Revenues
Expenses
Governmental Activities
General government
Public safety
Physical environment
Transportation
Community development
Mental/physical health
Culture and recreation
Intcrcst on long-term debt
Business-Type Activities
Water
Wastewater
Golf Course
Other Proprietary Funds
Total Expenses
Excess of revenues over expenses
Transfers
Increase in net assets
Net assets - beginning
Prior period adjustment
Net assets - ending.
City of Bremerton's Changes in Net Assets
2007
Governmental Activities
2006
$ 8,239,980
1,350,646
10,545,421
7,920,916
7,574,011
4,783,087
4,974,578
2,984,146
1,831,840
50,204,625
3,838,442
21,823,943
374,985
8,936,077
2,60 I ,899
6,429,966
1,378,912
45,384,224
4,820,401
1,944,641
6,765,042
80,171 ,606
1,708,823
$ 88,645,471
$ 7,898,109
964,454
7,895,086
7,329,167
7,157,768
3,898,778
4,744,302
3,567,985
3,088,50 I
46,544,150
4,036,679
19,018,326
205,404
7,731,187
2,863,004
5,581,830
1,422,858
40,859,288
5,684,862
1,291,437
6,976,299
73,195,307
$ 80,171,606
Business-Type Activities
2007 2006
$
27,611,963 $
27,738,767
755,136
49,180
6,672
487,531
29,037,286
8,052,273
8,387,319
3,578,441
1,200,116
21,218,149
$
7,819,137
(1,291,437)
6,527,700
10 I ,035,902
(360,978)
107,202,624 $
Total
2007
$
35,851,943
1,350,646
15,482,107
4,936,686
41,562
8,004
913,859
33,512,074
8,247,875
8,589,358
3,498,529
1,328,735
21,664,497
$
11,847,577
(1,944,641)
9,902,936
107,202,624
350,000
117,455,560
7,920,916
7,615,573
4,791,091
4,974,578
2,984,146
2,745,699
83,716,699
3,838,442
21,823,943
374,985
8,936,077
2,60 I ,899
6,429,966
1,378,912
8,247,875
8,589,358
3,498,529
1,328,735
67,048,721
16,667,978
16,667,978
187,374,230
2,058,823
206,101,031
Governmental activities contributed $6.8M of the total change in net assets of$16.7M. Significant elements of the
increase are as follows:
.
Tax revenues that support ongoing operations increased by $1.5M in 2007 from the 2006 level with increased
collections in property, sales, utility and B&O taxes.
Other general revenues which include interest earnings, gains on disposal of assets, and miscellaneous income,
decreased by $l.3M in 2007 from the 2006 level. The largest single component of this decrease was from a
decrease in the gain on disposal of fixed assets ($l.lM)
.
2006
$
35,636,876
964,454
8,650,222
7,329,167
7,206,948
3,905,450
4,744,302
3,567,985
3,576,032
75,581,436
4,036,679
19,018,326
205,404
7,731,187
2,863,004
5,581,830
1,422,858
8,052,273
8,387,319
3,578,441
1,200,116
62,077,437
13,503,999
$
13,503,999
174,231,209
(360,978)
187,374,230
City of Bremerlon / 18
· Capital Grants and Contributions increased significantly, $2.7M in 2007 from 2006, due primarily to funding
from the SR304 Transportation Project ($I.3M increase in 2007) in addition to grant funding and land
contributions received for the Harborside Park and Naval Museum ($I.4M increase in 2007).
Revenue by Source - Governmental Activities
Sales Taxes, $7,574,011 ,
15%
Charges for Services,
$8,239,980, 16%
Other Taxes, $2,984,146,
Utility Taxes, $4,974,578, 6%
10% L
Operating Grants and
Contributions, $1,350,646, 3%
Business Taxes, $4,783,087
,10%
Capital Grants and
Contributions, $10,545,421 ,
20%
Property Taxes, $7,920,916
,16%
Expenses and Program Revenues - Governmental Activities
Public safety
Interest on long-term debt
Culture and recreation
Community development
Transportation
Physical environment
General government
.;,
0 0 0 0
0 0 0 0
0 0 0 0
ci ci ci ci
0 0 0 0
0 0 0 0
06 ci 06 ci
'" ;;; ;;; N
'"
o
o
o
ci
o
o
06
N
'"
lIS! Program Expense I:J Program Revenue I
City of Bremerton / 19
· Business-type activities increased Bremerton's net assets by $9.9M accounting for 62% of the total growth in
the government's net assets. A key element of this increase is the change in capital grants and contributions
which increased $4.2M in 2007. This increase was primarily attributable to the inclusion of developer
contributions and system development charges that were previously reported as program revenues ($l.IM) as
well as an increase over 2006 contributions of $2.83M.
Revenue by Source - Business-type Activities
Sales Taxes, $41,562,0%
Business Taxes, $8,004,0%
Other General Revenues,
$913,859, 3%
Capital Grants and
Contributions, $4,936,686,15%
------
r---
Other Proprietary Funds,
$1,826.461 ,5%
Golf Course, $3,330,200,
10%
Expenses and Program Revenues - Business-type Activities
Wastewater
Other Proprietary Funds
Golf Course
Water
.;.
o
o
o
o
o
o
c"
'"
o
o
o
o
o
o
..j
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o
o
o
o
o
o
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o
o
o
o
o
o
00
<F>
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 N ..j 0;; 00
<i> <i> <i> <i> <F>
I E2 Program Expense !3 Program Revenue I
City of Bremerton /20
2007 Comparison of Total Revenues
Business-Type,
$33,512,074,40%
Governmental,
$50,204,625 , 60%
2007 Comparison of Total Expenses
Business-Type,
21,664,497 , 32%
Governmental,
45,384,224 , 68%
Financial Analysis of the City's Funds
As discussed earlier, the City of Bremerton uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds
The General Fund is the primary operating fund of the City through which all receipts and payments of ordinary
City operations are processed, unless they are required to be accounted for in another fund. Taxes are the major
revenue source. At the end of 2007, the fund balance of the General Fund was $4,105,338. As a measure of the
fund's liquidity, the ending fund balance is 14.2% of the fund's 2007 expenditures.
City of Bremerton /21
The General Fund balance decreased in 2007 by $296,575. Revenues increased from $27,928,281 in 2006 to
$29,466,236 in 2007. Expenditures increased from $25,954,483 to $28,998,046 during the same period. Revenues
exceeded expenditures in the General Fund by $468,190 in 2007 but were partially offset by net transfers out of
$764,765.
During 2007 $5,099,167 was spent on arterial street improvements. The expenditures are primarily for the multi-
phase SR 304 Bremerton Gateway transportation improvement project which is an ongoing capital improvement
program. In 2004, the City received a significant funding prepayment from the state for this project which results
in significant total assets of $5,676,135 for the fund as of the fiscal year end but a deferred revenue obligation has
been recognized as of December 31,2007 in the amount of $2,425,754 which in combination with other payables in
the amount of $658,634 results in a fund balance of $2,591,747 for the Arterial Street Fund at the end of the fiscal
year.
Proprietary funds
The City of Bremerton's proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail. The City issued $5.375 million of water and sewer revenue and refunding
bonds on June 14, 2007 for the purpose of paying the costs of improvements related to expansion of the sewer
system to Southwest Bremerton and to refinance the outstanding 2005 Water and Sewer Revenue Bonds in order to
reduce debt service payments over the remaining life of the bonds and to obtain an economic gain. Other than
accomplishing the programs identified in the 2007 capital improvement program and the issuance of the 2007 Water
and Sewer Revenue and Refunding Bonds, there were no significant transactions pertaining to the water, wastewater
and stormwater utilities or the municipal golf course operation. Significant balances of capital assets and debt are
addressed below. There are no large restricted balances since capital projects are financed by rate revenue or by
intergovernmental loans on a reimbursement basis. Factors concerning the finances of the City's proprietary funds
have already been addressed in the discussion of the City's business-type activities. .
General Fund Budget Variations
The General Fund collected revenues at 99.5% of the amount budgeted or $155,405 less than the amount of
budgeted revenues. Expenditures for 2007 were at 97.3% of the budget resulting in actual expenditures being
$889,595 less than the budgeted amount. The negative revenue budget variance is substantially attributable to a
decrease in revenues coming from transfers in from the City's parking system. The positive expenditure budget
variance is largely attributable to delays in filling open staff positions for various departments and capital projects in
the Parks, Community Development and General Facilities Departments which were not completed in 2007 as
planned - shifting into the following year and included in a 2008 budget amendment accordingly
The General Fund budget was balanced in 2007 and provided for a decrease to the fund balance in the amount of
$1,036,960. At the conclusion of2007, the General Fund decreased fund balance by $302,770.
Capital Asset and Debt Administration
Capital Assets
The City of Bremerton's investment in capital assets for its governmental and business-type activities as of
December 31, 2007, amounts to $232,386,754 (net of accumulated depreciation). This investment in capital assets
includes land, buildings, improvements, machinery and equipment, construction in progress, utility
transmission/distribution systems, and roads.
The major capital assets changes for general governmental activities during 2007 were purchases of property, public
safety capital equipment and facilities from the proceeds of the 2002 Public Safety UTGO bonds as well as the
construction costs for the new Harborside Park and Naval Museum.
City of Bremerton /22
The major capital assets changes for business-type activities included the construction of wastewater and water
capital improvement projects identified within the City's 2007 Capital Improvement program.
City of Bremerton's Capital Assets (net of depreciation)
Governmental Activities Business-Type Activities Total
2007 2006 2007 2006 2007 2006
Land $ 14,869,655 $ 13,119,143 $ 7,998,885 $ 7,599,383 $ 22,868,540 $ 20,718,526
Buildings 46,143,798 35,787,970 31,584,257 32,430,339 77,728,055 68,218,309
Improvements/Infrastructure 24,789,149 22,761,223 71,324,886 70,632,884 96,114,035 93,394,107..
Machinery and Equipment 7,074,172 7,258,399 15,920,466 16,611,098 22,994,638 23,869,497
Construction in Progress 5,633,266 11,331,451 7,048,220 4,486,782 12,681,486 15,818,233
TOTAL $ 98,510,040 $ 90,258,186 $ 133,876,714 $ 131,760,486 $ 232,386,754 $ 222,018,672
Additional information on the City of Bremerton's capital assets can be found in Note 6.
Long-term debt
New debt for business-type activities in 2007 consisted of $1,937,645 of public works trust fund loans to fund
Water/Wastewater capital improvement projects identified within the utilities' capital improvement plan and the
issuance of $5,375,000 of Water and Sewer Revenue and Refunding bonds on June 14, 2007 for the purpose of
paying the costs of improvements related to expansion of the sewer system to Southwest Bremerton and to refinance
the outstanding 2005 Water and Sewer revenue bonds in order to reduce debt service payments over the remaining
life of the bonds and obtain an economic gain. There was no new debt for governmental activities added in 2007.
The long-term debt principal paid off in 2007 totaled $7,259,171.
City of Bremerton's Outstanding Debt - General Obligation and Revenue Bonds
Governmental Activities Business- Typc Activities Total
2007 2006 2007 2006 2007 2006
General Obligation Bonds $ 23,189,400 $ 24,548,664 $ 5,430,000 $ 5,770,000 $ 28,619,400 $ 30,318,664
Rcvcnue Bonds 5,551,100 5,754,336 5,215,000 3,020,928 10,766,100 8,775,264
Revenue Loans 30,547,985 30,786,083 30,547,985 30,786,083
TOTAL $ 28,740,500 $ 30,303,000 $ 41,192,985 $ 39,577,011 $ 69,933,485 $ 69,880,011
Additional Information on the City of Bremerton's long-term debt can be found in Note 9 of this report.
Economic Factors and Next Years Budgets and Rates
Several factors that affect the economic climate in Bremerton were considered when preparing the City's 2008
annual budget. The outlook for the nation, state and region was weighed in relation to its expected impact on
Bremerton. The character of the City, including its current and future business activity and its attraction as a place
to live, was evaluated. The current financial position and the ability of the City to recover from its history of
economic depression is now showing strong promise due to the major effort to rehabilitate Bremerton's downtown
core and attract new investors to the community. Based on the budget analysis and the financial results from 2007,
Bremerton's long-term future is promising amid some short-term financial challenges.
The State of Washington is continuing to face considerable budget challenges; however, the state's budget
challenges will have only a minimal effect on Bremerton's transportation capital funding from the state. Over the
City of Bremerton / 23
past several years, Bremerton has been successful in attracting state and federal grant funds for major transportation
improvement projects, including the multi-phase SR304 Bremerton Gateway transportation improvement project.
Bremerton is in the middle of an aggressive revitalization and development program. The center piece project is the
Bremerton Harborside Development which is designed to establish the City of Bremerton as a premier waterfront
community in the Puget Sound. Of the multi-year plans to revitalize Bremerton, the following are completed as of
December 2007; the Harborside Conference Center, Hotel and Plaza, Bremerton Ice Arena, Kitsap Credit Union
Headquarters/Office building, new downtown Naval Parking Garage, waterfront condominiums, the Harborside
Fountain Park and Naval Museum, a new downtown police station and the construction of the new Norm Dicks
Government Center building and downtown fire station.' Currently underway is; the development of a significant
housing development in East Park, the Downtown Pedestrian Bremerton Transit Center Access project, the marina
expansion and Harborside Plaza and Commons. Projects that are in the preliminary stages include; the Boardwalk
Project, West Park mixed use redevelopment project and a new Municipal Court facility. These (and many other)
projects that are occurring throughout Bremerton are a product of both public and private investments. Economic
development is a critical component of achieving a recovery from years of economic depression and to mitigate for
the revenue losses incurred over the past several years from statewide initiatives. Initiative 695 and 747 resulted in
losses of ongoing revenues and limited property tax growth for Washington cities. These statewide initiatives have
impacted current and future revenues that fund the City ofBremerton's governmental services. The ability of
Bremerton to provide sufficient funding for future core government services is directly related to the continued
successful implementation of economic development efforts.
The City concluded a major utility rate study in 2004 which was focused on establishing a new utility rate structure
and general facility charges at levels sufficient to cover the cost of operation of the water, wastewater and
stormwater utilities, coverage for debt obligations and payment of capital improvement projects. The study resulted
in the development of a multi-year plan for increasing rates and implementing significant increases in general
facility charges to cover the cost of new capital improvements. Upon the conclusion of this study, the City Council
approved the utility rate increase plan with the adoption of an ordinance implementing the first phase of rate
increases and new general facilities charges which became effective on November 1, 2004. The City Council
subsequently approved the second phase of rate increases which became effective on January 1, 2006. The initial
plan implementation in November 2004 included a provision in the City's municipal code (BMC 15.06.015 (b))
which automatically escalates fees for the three city-owned utilities using the Seattle CPI on an annual basis unless
a larger increase is authorized by the City Council. This provision ensures the three utilities are adequately funded
in compliance with the City's adopted financial goals and policies. Utility system rates were increased based upon
the Seattle CPI effective January 1, 2007 and January 1, 2008 in accordance with this provision.
Requests for information
This financial report is designed to provide a general overview of the City of Bremerton's finances for readers with
an interest in municipal finances. Questions concerning any of the information provided in this report, or requests
for additional information, may be addressed to the Director of Financial Services, City of Bremerton, 345 Sixth
Street, Suite 600, Bremerton, W A 98337-1873.
City of Bremerton / 24
City of Bremerton /25
STATEMENT OF NET ASSETS
December 31, 2007
Governmental Business-Type
Activities Activities Total
ASSETS $ $ $
Current assets:
Cash & investments 17,074,303 17,296,764 34,371,067
Deposits with fiscal agent 30,000 30,000
External receivables 4,202,721 4,332,928 8,535,649
Interest receivable 75,008 109,872 184,880
Internal balances (42,088) 42,088
Due from other governments 1,760,868 883,466 2,644,334
Inventories 116,190 878,166 994,356
Prepayments 70,023 70,023
Total current assets 23,287,025 23,543,284 46,830,309
Restricted assets:
Cash & investments 1,908,359 1,371,479 3,279,838
External receivables 1,000,800 290,771 1,291,571
Due from other governments 259,215 259,215
Total restricted assets 3,168,374 1,662,250 4,830,624
Noncurrent assets:
Special assessments 14,858 1,439 16,297
Notes and contracts receivable 640,224 640,224
Capital assets net of depreciation 98,510,040 133,876,714 232,386,754
Other noncurrent assets 268,849 1,929,709 2,198,558
Total noncurrent assets 98,793,747 136,448,086 235,241,833
Total assets 125,249,146 161,653,620 286,902,766
LIABIUTIES
Current liabilities:
Claims/contracts payable 2,592,853 1,528,612 4,121,465
Matured long term obligations 30,000 25,000 55,000
Due to other governments 2,445,386 4,419 2,449,805
Employee wages payable 857,035 375,802 1,232,837
Other accrued Liabilities 1,107,049 243,412 1,350,461
Current Portion of Long Term Debt 986,000 2,973,013 3,959,013
Custodial Accounts 57,995 57,995
Total Current Liabilities 8,018,323 5,208,253 13,226,576
Payable from Restricted Assets: 179,224 179,224
Noncurrent Liabilities:
Claims and Judgements Payable 417,047 417,047
Bonds, Notes and Loans Payable 27,829,703 38,323,100 66,152,803
Other Non Current Liabilities 338,602 487,483 826,085
Total noncurrent liabilities 28,585,352 38,810,583 67,395,935
Total liabilities 36,603,675 44,198,060 80,801,735
NET ASSETS
Invested in capital assets net of related debt 70,114,679 92,579,614 162,694,293
Restricted for:
Tourism Promotion & Facilities 156,739 156,739
Parking System 159,629 159,629
Community Development Block Grant 1,417,179 1,417,179
Parks
Public Safety 540,284 540,284
Public Art 74,045 74,045
Debt Service 1,483,026 1,483,026
Workers Compensation 100,000 100,000
Capital Projects 720,498 720,498
Unrestricted 15,362,418 23,392,920 38,755,338
Total Net Assets $ 88,645,471 $ 117,455,560 $ 206,10 I ,031
See accompanying notes to the financial statements
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2007 (")
~
Net (Expense) Revenue and 0
....
Program Revenues Changes in Net Assets O:l
ca
Operating Capital 3
Charges for Grants and Grants and Governmental Business-Type (I)
Function/Program Expenses Services Contributions Contributions Activities Activities Total S
Governmental activities: ::J
.......
General government $ 3,838,442 $ 753,553 $ - $ - $ (3,084,889) $ $ (3,084,889) I\)
0)
Public Safety 21,823,943 2,028,840 69,080 83,102 (19,642,921) (19,642,921)
Physical environment 374,985 133,599 168,511 (72,875) (72,875)
Transportation 8,936,077 2,158,083 5,097,798 (1,680,196) (1,680,196)
Community Development 2,601,899 730,291 1,113,055 (758,553) (758,553)
Culture and recreation 6,429,966 2,435,614 5,364,521 1,370,169 1,370,169
Interest on long-term debt 1,378,912 (1,378,912) (1,378,912)
Total governmental activities 45,384,224 8,239,980 1,350,646 10,545,421 (25,248,177) (25,248,177)
Business-type activities
Water 8,247,875 9,465,266 1,876,402 3,093,793 3,093,793
Wastewater 8,589,358 12,990,036 2,554,168 6,954,846 6,954,846
Golf Course 3,498,529 3,330,200 (168,329) (168,329)
Other Proprietary Funds 1,328,735 1,826,461 506,116 1,003,842 1,003,842
Total business-type activities 21,664,497 27,611,963 4,936,686 10,884,152 10,884,152
Total government $ 67,048,721 $ 35,851,943 $ 1,350,646 $ 15,482,107 $ (25,248,177) $ 10,884,152 $ (14,364,025)
General Revenues
Taxes
Property 7,920,916 7,920,916
Sales 7,574,011 41,562 7,615,573
Business 4,783,087 8,004 4,791,091
Utility 4,974,578 4,974,578
Other 2,984,146 2,984,146
Unrestricted investment interest 1,297,696 913,859 2,211 ,555
Miscellaneous 74,263 74,263
Gain on Disposal of Fixed Assets 459,881 459,881
Transfers, internal activities 1,944,641 (1,944,641 )
Total general revenues and transfers 32,013,219 (981,216) 31,032,003
Change in net assets 6,765,042 9,902,936 16,667,978
Net asssets-beginning 80,171,606 107,202,624 187,374,230
Prior period adjustment (Note 15) 1,708,823 350,000 2,058,823
Net assets-ending $ 88,645,471 $ 117,455,560 $ 206,101,031
See accompanying notes to the financial statements
City of Bremerton / 27
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2007
Other Total
Arterial Governmental Governmental
General Street Funds Funds
ASSETS $ $ $ $
Cash & Investments 2,924,703 3,784,787 7,367,984 14,077,474
Deposits with Fiscal Agent 30,000 30,000
External Receivables 3,580,973 231,833 452,476 4,265,282
Due from Other Funds 229,821 259,000 488,821
Due from Other Governments 46,426 1,659,515 314,142 2,020,083
Inventories 56,677 56,677
Special Asessments- Deferred 12,058 12,058
Notes/Contracts - Deferred 917,936 917,936
Total Assets 6,793,981 5,676,135 9,398,215 21,868,331
LIABILITIES AND FUND BALANCES
Liabilities:
Claims/Contracts payable 560,990 609,367 810,536 1,980,893
Matured Long Term Obligations 30,000 30,000
Due to Other Funds 216,897 3,620 404,233 624,750
Due to Other Governments 280 2,425,754 19,352 2,445,386
Employee Wages Payable 726,393 95,735 822,128
Other Current Liabilities 45,647 84,907 130,554
Deferred revenues 1,184,083 943,482 2,127,565
Total Liabilities 2,688,643 3,084,388 2,388,245 8,161,276
Fund Balances:
Reserved for:
Petty Cash 20,470 20,470
Inventories 56,677 56,677
Paths and Trails 52,460 52,460
Park Replacement
Equipment Replacement 67,298 67,298
Unreserved, reported in:
General fund 4,084,868 4,084,868
Debt Service Funds 548,107 548, I 07
Special revenue funds 2,591,747 3,659,290 6,251,037
Capital projects funds 2,626,138 2,626,138
Total Fund Balances $ 4,105,338 $ 2,591,747 $ 7,009,970 13,707,055
Total Liabilities and Fund Balances 6,793,981 5,676,135 9,398,215
Amounts reported for governmental activities in the statement of nets assets are different because:
Capital assets used in governmental activities are not financial resources
and therefore not reported in the funds. 98,510,040
Other long-term assets are not available to pay for current-period
expenditures and therefore are deferred in the funds. (Note 2) 2,446,558
Internal service funds are used by management to charge the costs of certain activities to individual funds.
These assets and liabilities are included in governmental activities in the statement of net assets. 4,082,836
Long-term liabilities are not due and payable in the current period and therefore are not reported in the
funds. (Note 2) (30,101,018)
Net assets of governmental activities $ 88,645,471
See accompanying notes to the financial statements.
City of Bremerton /28
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
Other Governmental
General Arterial Governmental Funds
Fund Street Funds Total
REVENUES
Taxes $ 23,685,089 $ $ 3,027,740 $ 26,712,829
Licenses and Permits 1,020,912 130,818 1,151,730
Intergovernmental 1,003,965 4,905,000 3,964,684 9,873,649
Charges for services 2,688,949 19,738 2,014,026 4,722,713
Fines and forfeits 564,606 380,482 945,088
Miscellaneous 502,715 365,307 2,239,357 3,107,379
Total Revenues 29,466,236 5,290,045 11,757,107 46,513,388
EXPENDITURES
Current
General Government 5,693,869 695,686 6,389,555
Public Safety 17,242,812 176,120 17 ,418,932
Utilities and Environment 210,965 164,020 374,985
Transportation 529,087 3,437,847 3,685,946 7,652,880
Economic environment 1,237,710 1,283,938 2,521,648
Mentallphysical health 71,379 71,379
Culture and recreation 3,084,713 2,228,523 5,313,236
Debt Service:
Principal 122,499 1,440,000 1,562,499
Interest and other debt issue costs 304,816 1,058,718 1,363,534
Capital 500,196 1,661,320 5,928,664 8,090,180
Total Expenditures 28,998,046 5,099,167 16,661,615 50,758,828
Excess (deficiency) of revenues 468,190 190,878 (4,904,508) (4,245,440)
over expenditures
OTHER FINANCING SOURCES (USES)
Fixed Assets Donations & Disposal 4,000 405,145 1,058,822 1,467,967
Transfers in 2,881,230 140,000 5,936,159 8,957,389
Transfers out (3,649,995) (5,795,694) (9,445,689)
Total other financing sources and uses (764,765) 545,145 1,199,287 979,667
OTHER CHANGES IN FUND BALANCE
Change in Reserves for Inventory (755) (755)
Net change in fund balances (296,575) 736,023 . (3,705,976) (3,266,528)
Fund balances-beginning 4,401,913 1,855,724 10,715,946 16,973,583
Fund balances-ending $ 4,105,338 $ 2,591,747 $ 7,009,970 $ 13,707,055
See accompanying notes to the financial statements.
City of Bremerton / 29
RECONCILIATION OF THE STATEMENT REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2007
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total government funds
$ (3,266,528)
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 and reported as depreciation expense. This is the amount by
which capital outlays exceeded depreciation in the current period.
8,347,371
Revenues and Expenses in the statement of activities that do not provide current
financial resources are not reported in the funds.
(408,975)
The issuance oflong-term debt (e.g. bonds) provides current financial resources
to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net assets. Also, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items when
debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities. This amount is the net effect of these differences in the
treatment of long-term debt and related items.
1,543,634
Internal service funds are used by management to charge the costs of fleet
replacement and risk management to individual funds.
The net revenue of certain activities of internal service funds is reported with
governmental activities.
549.540
Change in net assets of governmental activities
$ 6.765.042
The notes to the financial statement are an integral part of this statement.
City of Bremerton /30
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERAL FUND
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ 6,595,860 $ 6,595,860 $ 6,773,149 $ 177,289
Sales 7,144,000 7,144,000 7,574,011 430,0 II
Other 8,994,000 9,144,000 9,337,929 193,929
Licenses and permits 1,008,950 1,008,950 1,020,912 11,962
Intergovernmental 925,276 1,217,690 1,003,965 (213,725)
Charges for services 2,758,030 2,789,130 2,688,949 (100,181)
Fines and forfeits 1,530,560 980,560 564,606 (415,954)
Miscellaneous 366,600 373,442 502,715 129,273
Total Revenues 29,323,276 29,253,632 29,466,236 212,604
EXPENDITURES
Current
General government 6,071,621 6,241,996 5,693,869 548,127
Public Safety 16,677,292 17,060,453 17,242,812 (182,359)
Utilities and Environment 214,865 214,865 210,965 3,900
Transportation 517,486 542,486 529,087 13,399
Economic environment 1,382,870 1,421,470 1,237,710 183,760
Mental/physical health 74,352 74,352 71,379 2,973
Culture and recreation 3,147,818 3,273,728 3,084,713 189,015
Debt Service Principal 126,195 126,195 128,695 (2,500)
Interest and other debt issue costs 304,246 304,246 304,816 ( 570)
Capital 378,955 592,700 500,196 92,504
Total Expenditures 28,895,700 29,852,491 29,004,242 848,249
Excess (deficiency) of revenues 427,576 ( 598,859) 461,994 1,060,853
over expenditures
OTHER FINANCING SOURCES (USES)
Fixed Asset Donations & Disposal 4,000 4,000
Transfers in 3,091,439 3,249,239 2,881,230 (368,009)
Transfers out (3,417,340) (3,691,340) (3,649,995) 41,345
Total other financing sources and uses (325,90 I) (438,101) (764,765) (326,664)
OTHER CHANGES IN FUND BALANCE
Net change in fund balances 101,675 (1,036,960) (302,771) 734,189
Fund balances-beginning 2,656,392 4,408,108 4,621,926 213,818
Fund balances-ending $ 2,758,067 $ 3,371,148 $ 4,319,155 $ 948,007
See accompanying notes to the financial statements
City of Bremerton / 31
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
ARTERIAL STREET
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Intergovernmental 7,438,415 7,590,415 4,905,000 (2,685,415)
Charges for services 19,738 19,738
Misce\1aneous 300,000 365,307 65,307
Total Revenues 7,438,415 7,890,415 5,290,045 (2,600,370)
EXPENDITURES
Current
Transportation 127,500 507,500 3,437,847 (2,930,347)
Capital 7,676,000 7,476,000 1,661,320 5,814,680
Total Expenditures 7,803,500 7,983,500 5,099,167 2,884,333
Excess (deficiency) of revenues (365,085) (93,085) 190,878 283,963
over expenditures
OTHER FINANCING SOURCES (USES)
Fixed Asset Donations & Disposal 405,145 405,145
Transfers in 140,000 140,000 140,000 0
Transfers out
Total other financing sources and uses 140,000 140,000 545,145 405,145
OTHER CHANGES IN FUND BALANCE
Net change in fund balances (225,085) 46,915 736,023 689,108
Fund balances-beginning 8,591,945 7,403,412 1,855,724 (5,547,688)
Fund balances-ending $ 8,366,860 $ 7,450,327 $ 2,591,747 $ (4,858,580)
See accompanying notes to the financial statements
City of Bremerton / 32
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 3 I, 2007
Business-type Activities
Enterprise Funds Governmental
Other Activities
Golf Proprietary Internal
Water Course Wastewater Funds Total Service Funds
ASSETS
Current assets:
Cash & Investments $ 6,160,613 $ 312,593 $ 3,807,223 $ 6,032,986 $ 16,313,415 $ 5,788,537
External Receivables 1,353,157 4,661 2,582,919 377,674 4,318,411 14,840
Interest Receivable 38,465 1,876 22,851 36,203 99,395 35,342
Due from Other Funds 233,110 10,654 1,442 245,206 1,363,544
Due from Other Governments 350,000 533,466 883,466
Inventories 559,397 280,720 840,117 97,562
Prepayments 70,023
Total current assets 8,694,742 319,130 7,237,833 6,448,305 22,700,0 I 0 7,369,848
Restricted Assets: 532,268 1,129,982 1,662,250 100,000
Noncurrent assets:
Special Assessments 4,516
Notes and Contracts Receivable 640,224 640,224
Capital assets net of depreciation 47,381,868 7,720,787 75,112,293 2,217,322 132,432,270 4,121,260
Other Non-current assets 1,638,001 78,853 212,855 1,929,709
Total noncurrent assets 49,660,093 7,799,640 75,325,148 2,217,322 135,002,203 4,125,776
Total assets $ 58,887,103 $ 8,118,770 $ 82,562,981 $ 9,795,609 $ 159,364,463 $ 11,595,624
UABIUTIES
Current liabilities:
Claims/Contract payable $ 487,565 $ 66,087 $ 953,659 $ 21,301 $ 1,528,612 $ 611,960
Matured Long Term Obligations 25,000 25,000
Due to Other Funds 58,489 1,376,071 18,558 1,453,118
Other Accrued Liabilities 424,705 24,950 158,129 8,600 616,384 42,496
Current Portion of Long Term Debt 596,904 355,000 2,011,245 9,864 2,973,013
Custodial Accounts 5,800 52,195 57,995
Total current liabilities 1,573,463 498,232 4,524,104 58,323 6,654,122 654,456
Payable from Restricted Assets: 179,224 179,224
Noncurrent liabilities:
Claims and Judgements Payable 417,047
Bonds, Notes and Loans Payable 7,221,989 5,066,896 25,876,387 157,828 38,323,100
Compensated Absences 480,365 986 481,351 35,575
Total noncurrent liabilities 7,702,354 5,067,882 25,876,387 157,828 38,804,451 452,622
Total liabilities 9,455,041 5,566,114 30,400,491 216,151 45,637,797 1,107,078
NET ASSETS
Invested in capital assets, net
of related debt 39,562,974 2,297,905 47,224,661 2,049,630 91,135,170 4,121,260
Restricted for debt service 353,044 1,129,982 1,483,026
Unrestricted 9,516,044 254,751 4,937,829 6,399,846 21,108,470 6,367,286
Total net assets $ 49,432,062 $ 2,552,656 $ 52,162,490 $ 9,579,458 $ 113,726,666 $ 10,488,546
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 3,728,894
Net assets of business-type activities $ 117,455,560
See accompanying notes to the financial statements.
City of Bremerton /33
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For the Year Ended December 31, 2007
Business-type Activities
Enterprise Funds Governmental
Other Activities
Golf Proprietary Internal
Water Course Wastewater Funds Total Service Funds
Operating revenues:
Charges for services $ 8,009,816 $ 3,255,060 $ 12,944,861 $ 1,810,603 $ 26,020,340 $ 3,701,743
Interest & Dividend Income 353,186
Other Operating Revenue 1,091,163 75,040 41,509 15,819 1,223,531 941,724
Total operating revenues 9,100,979 3,330,100 12,986,370 1,826,422 27,243,871 4,996,653
Operating expenses:
General Operations 1,476,637 1,695,318 2,20 I ,989 294,856 5,668,800 2,573,215
Maintenance 2,394,020 1,106,904 1,683,989 730,127 5,915,040
Customer Service and Marketing 344,627 258,154 38,975 641,756
General Administration 957,789 97,421 798,527 171,030 2,024,767 234,548
Depreciation and amoritization 1,745,264 278,541 2,801,599 41,841 4,867,245 722,415
Property, Excise and B&O Taxes 347,866 351,194 69,296 768,356
Risk Transfer Payments 417,913
Payments to Claimants & Beneficiaries 338,783
Other Operating Expenses 672,070 672,070 56,342
Total operating expenses 7,938,273 3,178,184 8,095,452 I ,346, 125 20,558,034 4,343,216
Operating income (loss) 1,162,706 151,916 4,890,918 480,297 6,685,837 653,437
Nonoperating revenues (expenses)
Interest and investment revenue 347,201 30,549 157,083 269,219 804,052 13,975
Interest expense (290,737) (321,734) (474,642) (5,958) (1,093,071)
Gain (loss) on Capital Asset Disposal (22,877)
Other Nonoperating Revenue 364,287 100 53,232 39 417,658 21,979
Total nonoperating revenues (expenses) 420,751 (291,085) (264,327) 263,300 128,639 13,077
Income (loss) before contributions and transfers 1,583,457 (139,169) 4,626,591 743,597 6,814,476 666,514
Capital contributions 1,876,402 2,554,168 506,116 4,936,686
Transfers in 100,000 4,986,590 5,086,590 128,075
Transfers out (787,067) ( 6,090,262) (253,902) (7,131,231) (48,634)
Change in net assets 2,672,792 (139,169) 1,190,497 5,982,40 I 9,706,521 745,955
Total net assets - beginning 46,409,270 2,691,825 50,971,993 3,597,057 103,670,145 9,742,591
Prior period adjustments (Note 15) 350,000 350,000
Total net assets - ending $ 49,432,062 $ 2,552,656 $ 52,162,490 $ 9,579,458 $ 113,726,666 $ 10,488,546
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 3,728,894
Change in net assets of business-type activities $ 117,455,560
See accompanying notes to the financial statements.
City of Bremerton / 34
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2007
Page 1 of2
Business-type ActivIties
Enterprise Funds Governmental
Other Activities
Golf Proprietary Internal
Water Course Wastewater Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 7,940,561 3,254,643 $ 12,589,718 1,793,458 25,578,380 3,702,869
Interest on Investments 71,795
Cash payments to suppliers (1,822,107) (2,826,250) (822,387) (581,417) (6,052,161) (1,817,263)
Cash payments to employees (3,503,387) (71,687) (3,588,019) (622,092) (7,785,185) (1,137,141)
Purchase of Insurance (155,610) (194,487) (20,433) (370,530) (455,968)
Payment for Insurance Claims (800,382)
Other operating receipts and payments 743,297 119,028 (351,195) (66,091) 445,039 1,221,121
Net cash provided by operating activities 3,202,754 475,734 7,633,630 503,425 11,815,543 785,031
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers in 571,524 571,524
Transfers out (787,067) (1,633,820) (153,902) (2,574,789)
Other nonoperating revenues/expenses 366,142 100 (12,929) 39 353,352 21,979
Receipt of Utility Deposits 32,000 32,000
Return of Utility Deposits (35,225) (35,225)
Repayment of interfund loans (150,000) (150,000)
Net cash provided (used) by noncapital
financing activities (420,925) 100 (1,796,749) 414,436 (1,803,138) 21,979
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,259,992) (5,294) (3,397,510) (28,340) (4,691,136) (514,136)
Proceeds/costs on sale of assets 18,130
Capital contributions 915,100 594,507 121,847 1,631,454
Transfer in for asset construction 100,000 4,456,441 4,556,441 128,075
Transfer out for asset construction (4,456,441) (100,000) (4,556,441) (48,634)
Collections on Notes Receivable 151,258 151,258
Loan/grant proceeds 129,380 2,459,358 2,588,738
Bond proceeds 372,000 5,330,898 5,702,898
Principal paid on bonds (407,928) (339,999) (3,036,000) (3,783,927)
Principal paid on other debt (555,918) (1,727,963) (9,864) (2,293,745)
Interest paid on revenue bonds and other debt (283,146) (282,859) (416,905) (6,156) (989,066)
Net cash provided (used) for capital and related
financing activities (939,246) (628,152) (4,550,056) 4,433,928 (1,683,526) (416,565)
CASH FLOWS FROM INVESTING ACTIVlTlES
Proceeds from repayment of loans 6,195 6,195 258,707
Proceeds from special assessments 13,792
Interest on loans and investments 297,251 30,802 145,879 233,958 707,890 13,975
Net cash provided (used) in investing activities 303,446 30,802 145,879 233,958 714,085 286,474
Net increase (decrease) in cash and cash equivalents 2,146,029 (121,516) 1,432,704 5,585,747 9,042,964 676,919
Cash and cash equivalents - beginning of year 4,262,822 434,109 2,374,519 1,570,480 8,641,930 5,211,618
Cash and cash equivalents - cnd of year 6,408,851 312,593 3,807,223 7,156,227 17,684,894 5,888,537
See accompanying notes to the financial statements.
City of Bremerton / 35
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 3 I, 2007
Page 2 of2
Business-type Activities
Enterprise Funds
Governmental
Activities
Internal
Service Funds
Other
Golf Proprietary
Water Course Wastewater Funds
6,160,613 312,593 3,807,223 6,032,986
248,238 1,123,241
6,408,851 3 [2,593 3,807,223 7,156,227
Total
Cash at the end of the year consists of:
Operating fund cash
Restricted cash
Total cash at end of year
16,313,415
1,371,479
17,684,894
5,788,537
100,000
5,888,537
Reconciliation of opcrnting income to net cash provided by operating activities:
Operating income (loss) 1,162,706 151,916 4,890,916 480,297 6,685,835 653,437
Adjustments to reconcile operating income
to net cash provided by Operating
activihes:
Depreciation 1,745,264 278,541 2,801,600 41,841 4,867,246 722,4[5
Decrease (increase) in recclvables (35,071) (598) (396,651 ) (432,320) (2,593)
Decrease (increase) in due from other funds/govt (15,039) 899 ( 10,032) (32,963) (57,135) 1,126
Decrease (increase) in prepaid expenses (26,856) (26,856) (38,055)
Decrease (increase) in inventory 14,866 14,866 (15,425)
Increase (decrease) in accounts payable 269,782 (8,507) 397,852 659,127 (555,501)
Increase (decrease) in due to other funds! goY! 2,011 7 (23,199) 13,261 (7,920) (1,378)
Increase (decrease) in employee wages payable 56,993 455 989 58,437 8,039
Increase (decrease) in employee vacations payable 32,417 826 33,243 12,966
Increase (decrease) in other payables (24,146) 52,195 28,049
Increase (decrease) in deferred revenues (7,029) (7,029)
Net cash provided by operating activities 3,202,754 475,734 7,633,630 503,425 $ 1 [,815,543 785,031
Noncash investing, capital and financial activities;
Developers contributed infrastructure 961,302 946,857 382,950 2,291,109 $
See accompanying notes to the financial statements
City of Bremerlon / 36
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
As of December 31, 2007
Police & Fire
Pension
ASSETS
Cash and cash equivalents
Interest Receivable
Interfund Receivables
Total Assets
$
345,231
2,072
$
347,303
LIABILITIES
Claims/Contracts Payable
Due to Other Funds
Other Current Liabilities
Total Liabilities
28,245
19,703
$
47,948
NET ASSETS
Held in Trust for Pension Benefits and
Other Purposes
$
299,355
See accompanying notes to the financial statements.
Agency
Funds
347,647
347,647
56,175
291,472
347,647
City of Bremerton /37
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
For the Year Ended December 31, 2007
Police & Fire
Pension
ADDITIONS:
Employer Contributions
Investment Earnings
Other Revenue
Total Additions
$
2,453,500
13,271
42,097
2,508,868
DEDUCTIONS:
Benefits
Administrative Expenses
Total Deductions
$
2,114,958
203,998
2,318,956
Change in Net Assets
$
189,912
Net Assets-Beginning of the Year
Net Assets-End of the Year
$
109,443
299,355
See accompanying notes to the financial statements.
City of Bremerton / 38
NOTES TO FINANCIAL STATEMENTS
JANUARY 1, 2007 - DECEMBER 31, 2007
1. Summary of significant accounting policies
The financial statements of the City of Bremerton have been prepared in conformity with generally accepted accounting
principles as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted
standard setting body for establishing governmental accounting and financial reporting principles.
A. Reporting Entity
The City of Bremerton was incorporated on October 14,1901, and operates under the laws of the State of Washington
applicable to a home-rule charter city with a CounciUMayor form of government. The City is a general purpose
government which provides police, fire, water, wastewater, street maintenance, parks and recreation, planning and
zoning, municipal court and general governmental services to its citizens.
B. Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report
information on all of the nonfiduciary activities of the City. For the most part, the 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 on fees and charges for support.
The statement of activities displays the extent to which the direct expenses of a given function are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific function. Our policy is to not allocate
indirect costs to a specific function. Program revenues are those items that are applicable to customers who purchase,
use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions that
are restricted to meeting the operational or capital requirement of a particular function are also included. Taxes and other
items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. Fiduciary
funds, however, 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 financial statement presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for 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 city considers revenues to be available if they are collected
within 30 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 expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
Property taxes, fines and certain receivables for services provided are associated within the current period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessment receivable due within the current fiscal period is considered to be susceptible to accrual as
revenue of the current period. All other revenue items are considered to be measurable and available only when cash is
received by the City.
City of Bremerlon / 39
The City reports the following major governmental funds:
The general fund is the City's operating fund. It accounts for all financial resources and transactions except those
required to be accounted for in another fund.
The arterial street fund is a dedicated special revenue fund for the purpose of making capital improvements to the
City's arterial street system.
The City reports the following major proprietary funds:
The water and wastewater funds account for activities related to the ongoing operations of the City's water and
sewer systems.
The golf course fund accounts for the operations and maintenance of the City owned Gold Mountain golf course.
Additionally, the City reports the following fund types:
Internal service funds account for the accumulation of funds used to repair City vehicles and equipment and to
replace them at the end of their useful lives. Funds are also accumulated for the purpose of carrying out the city's
Risk Management activities. In both cases City departments contribute according to the benefit provided by each
fund.
The police and fire pension fund is a trust fund established to account for and record pension payments for
firefighter and law enforcement officers who were hired under the LEOFF 1 retirement system and prior retirement
acts.
Agency funds account for assets held by a government as an agent for individuals, private organizations, other
governments, and/or other funds. All funds are used for custodial or clearing purposes.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, are generally followed
in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict
with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of
following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same
limitation. The City of Bremerton has elected not to follow subsequent private-sector guidance.
The City eliminates the effect of interfund activity from the government-wide financial statements. There are some
exceptions to this rule such as charges between the utility function and other functions within the City, and any
payments-in-lieu of taxes. Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned.
Amounts reported as program revenues include charges to customers, special assessments, operating grants and
contributions and capital grants and contributions. General revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connections with a proprietary
fund's principal ongoing operations. Operating revenues includes charges for services rendered for water, sewer,
stormwater as well as golf fees and timber revenues. Operating expenses include administrative, maintenance expenses
and depreciation on capital assets. All revenues and expenses not falling into the above broad categories are reported as
non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the city's policy to use restricted resources
first, then unrestricted resources as needed.
City of Bremerton /40
D. Budgetary Information
1. Scope of Budget
\
I
Annual appropriated budgets are adopted for all funds on the modified accrual basis of accounting. All appropriations
lapse at the end of each year.
2. Amending the Budget
The City's budget is adopted at the department and category group level. The five distinct category groups are I)
Personnel, 2) Supplies, Services and Taxes, 3) Debt Service, 4) Capital Expenditures and 5) Transfers. Expenditures
may not legally exceed appropriations at that level of detail. The Mayor may authorize a one time transfer of less than
$10,000 between category groups within a department. All other supplemental appropriations as well as transfers and
revisions within funds must be approved by the legislative authority following public hearings. The City's budget was
amended two times in 2007.
The financial statements contain the original and final budget information. The original budget is the first complete
appropriated budget. The final budget is the original budget adjusted by all supplemental appropriations authorized for
the fiscal year.
E. Assets, Liabilities and Equities
1. Cash and Investments
It is the City's policy to invest all temporary cash surpluses. These investments are reported on the Statement of Net
Assets as cash and investments. Included in cash and investments are currency on hand, demand deposits with banks or
other financial institutions, investments with the State Investment Pool, and investments in U.S. Treasury and Agency
Securities. At December 31, 2007 the City held $38,343,781 in investments of surplus cash.
The amounts reported as cash and investments also include compensating balances maintained with the City's bank in
lieu of payments for services rendered. The average compensating balance maintained during 2007 was $1,575,789.
For purposes of the statement of cash flows the City considers all investments, including restricted assets, to be cash
equivalents. All investments can be liquidated on demand.
2. Receivables
External receivables consist of property, B&O, utility, sales and parking taxes as well as other revenues earned by the
City from the County, State and other taxpayers but not yet received. Also included are customer accounts receivable
which consist of amounts owed from private individuals or organizations for goods and services including amounts owed
for which billings have not been prepared.
Interest receivable consists of amounts earned on investments, notes, and contracts at the end of the year.
Special assessments are recorded when levied. Special assessments receivable consist of current and delinquent
assessments and related interest and penalties. Deferred assessments on the fund financial statements consist ofu~billed
special assessments that are liens against the property benefited. As of 12/31107, $705 of special assessments receivable
were delinquent.
The amounts reported as notes and contracts receivable represent housing rehabilitation loans resulting from the federal
Department of Housing and Urban Development Community Development Block Grant programs. Deferred notes and
contracts on the fund financial statement consist of outstanding loan balances that are liens against the property benefited
and the note receivable from property sold. An indeterminate portion of the Block Grant loans will be forgiven if certain
qualifying conditions are met by the loan recipients.
City of Bremerlon / 41
3. Amounts Due To and From Other Funds
Amounts due to and from other funds include interfund loans receivable/payable as well as outstanding balances that
have resulted from the provision of services between funds as well as corrections of prior transactions. Any residual
balances outstanding between the governmental activities and business-type activities are reported in the government-
wide financial statements as "internal balances." A summary schedule of interfund loans receivable and payable is
furnished in Note 12.
4. Amounts Due To and From Other Governmental Units
Amounts due to and from other governments for grants, entitlements and contracts.
5. Inventories
Inventories in governmental funds consist of expendable supplies held for consumption. The cost is recorded as an
expenditure at the time individual inventory items are purchased. The reserve for inventory is equal to the ending
amount of inventory to indicate that a portion of the fund balance is not available for future expenditures. A comparison
to market value is not considered necessary.
In proprietary funds, a perpetual inventory is maintained, in which the cost is capitalized when inventory items are
purchased, and expensed when the item is consumed. Inventory is recorded at average cost which approximates market
value.
6. Restricted Assets and Liabilities
These accounts contain resources for programs, construction, replacement, and debt service in both governmental and
business type funds. The current portion of related liabilities are shown as Payable ;rom Restricted Assets. Specific debt
service reserve requirements are described in Note 9.
Restricted assets are composed of the following:
Governmental type:
Cash and Investments - Contruction
Cash and Investments - Public Art
Cash and Investments - Parking System
Cash and Investments - HOD Program;
Cash and Invesments - Public Safety
Cash and Invesments - Parks
Cash and Investments - Workers Compensation
Cash and Investments - Tourism Promotion
External Receivables - HOD Program;
External Receivables - Tourism Promotion
External Receivables - Parking System
External Receivables - Public Safety
External Receivables - Public Art
External Receivables - Construction
External Receivables - Parks
Due from other Governments - HOD
Due from other Governments - Construction
Total Governmental
$683,835
73,583
147,022
233,924
537,045
o
100,000
132,950
939,251
23,789
12,607
3,239
462
21,452
o
244,004
15,211
$3,168,374
Business type:
Cash and Investments - Debt Service
Cash and Investments - Construction Reserve
External Receivables - Debt Service
Total Business
$1,192,255
$179,224
290,771
$1,662,250
City of Bremerton /42
7. Capital Assets (See Note 6)
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and
similar items), are reported in the applicable governmental or business-type columns in the government-wide financial
statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000. 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 cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are
not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during
the construction phase of the capital assets of business-type activities is not included as a part of the capitalized value of
the assets constructed. There was $84,400 of interest expense incurred during 2007 for business-type capital assets
under construction.
Property, plant and equipment of the City is depreciated using the straight line method over the following estimated
useful lives:
~P1~~f~~i~',jB~~~~tf2~~1~t~~f[~~~(~~~~~~1~it!~~1!~
Buildings 50 Years
Improvements Other than Buildings - Governmental Assets 20 Years
Improvements Other than Buildings - Proprietary Assets 50 Years
Infrastructure 1 0-15 Years
Plant Machinery and Equipment 20 Years
Furniture and Fixtures 20 Years
Vehicles and Similar Equipment 1 0 Years
Data Processing/Electronic Equipment 5 Years
8. Other Noncurrent Assets
This account reflects various non-current assets of the City including utility water rights, standing timber purchased
under the City's utility land management plan and the unamortized portion of debt issuance costs.
9. Other Accrued Liabilities
These accounts consist of accrued wages and accrued employee benefits including compensated absences. Compensated
absences are absences for which employees will be paid, such as vacation and sick leave. All vacation pay is accrued
when incurred in the government-wide and proprietary fund financial statements. Accrued vacation is payable at
resignation, retirement or upon death of the employee. Maximum vacation carryover hours are set by contract for all
bargaining unit employees. The maximum hours allowed to be carried over to the next fiscal year range from 240 to 360
depending on the unit. Payment for 35% of sick leave is only paid at retirement. Outstanding sick leave at year end is
not accrued because the payment cannot be deemed probable nor can the amount be reasonably estimated.
10. Long-term Debt - See Note 9.
11. Deferred Revenue
This account includes amounts recognized as receivables but not revenues in governmental funds because the revenue
recognition criteria has not been met.
12. Reservations of Fund Balance
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not
available for appropriation or are legally restricted by outside parties for use for a specific purpose.
City of Bremerton /43
2. Reconciliation of Government-wide and Fund Financial Statements
A. Explanation of aggregated differences between the governmental fund balance sheet and the government-wide
statement of net assets
The governmental fund balance sheet includes a reconciliation between total fund balance and total net assets as reported
in the government-wide statement of net assets. The details ofthe aggregated differences are presented below.
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds:
Capital Assets of governmental funds net of depreciation
Capital Assets of Internal Service funds included in govermental activities
net of depreciation
Net adjustment to increase fund balance - total governmental funds
to arrive at net assets - governmental activities
$
95,833,224
2,676,816
$
98,510,040
Other long-term assets are not available to pay for current-period expenditures and therefore are not reported in the
funds:
Deferred revenue for taxes and loans receivable due beyond the city's 30 day
measurable and available period
Investment interest accrued beyond the city's 30 day measurable
and available period
Deferred charge for bond issue costs
Net adjustment to increase fund balance - total governmental funds
to arrive at net assets - governmental activities
$
2,127,566
50,143
268,849
$
2,446,558
Internal Service funds are used by management to charge the costs of certain activities to individual funds:
Net assets ofInternal service funds included in governmental acti~ties
Net capital assets of Internal Service funds included in governmental activities
Net adjustment to increase fund balance - total governmental funds
to arrive at net assets - governmental activities
$
6,759,652
(2,676,816)
$
4,082,836
Some liabilities, including bonds, loans and compensated absences payable, are not due and payable in the
current period and therefore are not reported in the funds:
GO Bonds payable
Less: Issuance premiums
Add: Deferred Amount on Refunding
Revenue Bonds payable
Accrued interest payable
Compensated absences
Net adjustment to reduce fund balance - total governmental funds
to arrive at net assets - governmental activities
$
(23,189,400)
(124,640)
49,437
(5,551,100)
(48,674)
(1,236,641)
$
(30,101,018)
B. Explanation of aggregated differences between the governmental fund statement of revenues,
expenditures, and changes in fund balances and the government-wide statement of activities
The governmental fund statement of revenues, expenditures, and changes in fund balances includes
reconciliation between net changes in fund balances - total governmental funds and changes in net assets of
City of Bremerton / 44
governmental activities as reported in the government-wide statement of activities. The details of the
aggregated differences are presented below.
Government funds report capital outlays as expenditures; however, in the statement of activities the cost of
those assets is allocated over their estimated useful lives and reported as depreciation expense.
Capital Outlay
Depreciation
Loss on retirement of capital assets
Market Value of assets contributed to the City during 2007
Net adjustment to increase net change in fund balances-
governmental funds to arrive at change in net assets -
govermental activities
$
8,088,106
(2,814,320)
(807,085)
3,880,670
$
8,347,371
The issuance oflong-term debt provides current financial resources to governmental funds, while the repayment
of the principal of long-term debt consumes the current financial resources of governmental funds. Also,
governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first
issued, whereas these amounts are deferred and amortized in the sta~ement of activities.
GO Bond Principal paid
Revenue Bond Principal paid
Unamortized Debt Issuance Costs
Net adjustment to decrease net change in fund balances -
governmental funds to arrive at change in net assets of
governmental activities
$
1,359,264
203,236
(18,866)
$
1,543,634
Some revenues and expenses reported in the statement of activities do not provide/do not require the use of
current financial resources and therefore are not reported as expenditures in governmental funds:
Change in accrued interest receivable
Change in deferred property taxes receivable
Change in court fines receivable
Change in Block Grant loans receivable
Change in special assessments receivable
Change in abatement assessments receivable
Change in Notes Receivable
Change in External Receivables
Change in accrued interest payable
Change in compensated absences payable
Net adjustment to decrease net change in fund balances -
governmental funds to arrive at change in net assets of
governmental funds
$
(18,327)
61,591
63,783
(132,481)
(4,938)
o
(201,000)
32,016
3,488
(213,107)
$
(408,975)
The net revenue of certain internal service fund activities are governmental in nature and are included in the net
change in assets in the government-wide statements.
Net revenue of Risk Management Activities
Net revenue ofInformation Technology Activities
Net revenue of Equipment Reserve Activities
Net adjustment to increase net change in fund balances -
government funds to arrive at change in net assets of governmental funds
$
214,778
(49,005)
383,767
$
549,540
City of Bremerton /45
3. Stewardship, Compliance and Accountability
Washington State law (RCW 43.09.230) requires annual reports to be certified and filed with the State
Auditor's Office within 150 days after the close of each fiscal year. In addition, certain long-term debt issues
have continuing disclosure requirements that call for submission of the City's annual report to all nationally
recognized municipal securities information repositories (NRMSIRs) no later than September 30 of the year
following the close of the fiscal year. Federal grants also require submission of the annual report to the federal
oversight agency no later than September 30 of the year following closing.
4. Deposits and Investments
A. Deposits
The City's deposits are entirely covered by federal depository insurance (FDIC) or by collateral held in a multiple
financial institution collateral pool administered by the Washington Public Deposit Protection Commission (PDPC).
B. Investments
As required by state law, all investments of the City funds are obligations of the U.S. Government, U.S. agency issues,
obligations of the State of Washington, general obligations of Washington State municipalities, the State Treasurer's
Investment Pool, or certificates of deposit with Washington State banks and savings and loan institutions. All
temporary investments are stated at market value. Other property and investments are shown on the statement of net
assets at cost.
Interest Rate Risk. As a means of limiting its exposure to realized fair value losses arising from rising interest
rates, the City's investment policy requires that to the extent possible maturities be matched with anticipated
cash flow requirements. Unless matched to a specific cash flow, the City is limited by the investment policy to
maturities of five years or less.
Investment Maturity (in Years)
Fair Less Percent
Investment Type Value Than 1 1 - 5 of Total
Federal National Mortgage Association $500,312 $500,312 1.3%
Federal Home Loan Bank 6,036,562 6,036,562 16.2%
Federal Home Loan Mortgage Corporation 4,042,338 2,001,088 2,041,250 10.9%
Federal Farm Credit Bank 2,561,094 2,561,094 6.9%
State Treasurer's Investment Pool 20,539,692 20,539,692 55.2%
US Treasury 3,518,438 1,001,250 2,517,188 9.5%
Total $37,198,436 $29,578,592 $7,619,844 100.0%
Credit Risk. The City's investment policy limits investments to those authorized by State of Washington statutes
governing the investment of public funds. As of December 31, 2007, the City's investment in the state investment
pool was 55.2% of total investments which is unrated. The City's investments in Federal National Mortgage
Association, Federal Home Loan Bank, Federal Farm Credit Bank, and Federal Home Loan Mortgage Corporation
securities were each rated Aaa by Moody's Investors Service and AAA by Standard & Poor's Rating Service. The US
Bank Municipal Investors money market account is invested entirely in U.S. government obligations.
The City's investments are categorized to give an indication of the risk assumed at year-end. The following summary
shows the City's investments at year end categorized by risk. Category 1 includes investments that are either insured,
registered, or held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered
investments which are held by the counterparty's trust department or agent in the City's name. Category 3 included
uninsured and unregistered investments of which the securities are l]eld by the counterparty, or its trust department or
agent, but not in the City's name.
City of Bremerton /46
U. S. Government and Agencies' Securities
Investments not Subject to Categorization:
Investments in State Treasurer's Pool
Total Investments
1
$16,658,744
Category
2
3
Total
$16,658,744
20,539.692
$37,198,436
Concentration of Credit Risk. As can be seen in the preceding table, the City is in compliance with its
investment policy which requires that (with the exception of U.S. Treasury securities and the State Investment
Pool) no more than 30% of the City's total investment portfolio will be invested in a single security type or with
a single financial institution.
5. Property Taxes
The Kitsap County Treasurer acts as an agent to collect property taxes levied in the County for all taxing authorities.
Collections are distributed the end of each month.
A. Property Tax Calendar
January 1 - Taxes are levied and become an enforceable lien against properties.
February 14 - Tax bills are mailed.
April 30 - First of two equal installment payments is due.
May 31 - Assessed value of property established for next year's levy at 100 percent of market value.
October 31 - Second installment is due.
Property taxes are recorded as a revenue and receivable when levied. Property taxes collected in advance of the fiscal
year to which they apply are recorded as deferred revenue and recognized as revenue of the period to which they apply.
No allowance for uncollectible taxes is established because delinquent taxes are considered fully collectible. Prior year
tax levies were recorded using the same principal, and delinquent taxes are evaluated annually.
The City may levy up to $3.60 per $1,000 of assessed valuation for general governmental services. An
additional $.225 per $1,000 may be levied for the Fireman's Pension fund. Since the City has annexed to the
Kitsap Regional Library District the City's levy is reduced by the library district's maximum levy of$.50. This
leaves the City with $3.325 per $1,000 of taxing authority for general governmental services.
The City's regular levy for 2007 was $2.10 per $1,000 on an assessed valuation of $2.692 million for a total regular
levy of $5,662,522.
Special levies, approved by the voters are not subject to the above limitations. In 2007, the City levied an additional
$.74 per $1,000 for General Obligation Bonds and Emergency Medical Services. The City authorized collection of an
additional $150,085 in special levies during 2005 for debt redemption of the 1997 UTGO Fire Refunding Bonds, but
due to a mix up the amount was not levied by the County Assessor. The City corrected this error by including the
amount when authorizing the taxes to be collected in 2007.
Washington State Constitution and Washington State law, RCW 84.55.010, limit the rate.
City of Bremerton /47
6. Capital Assets
Capital asset activity for the year ended December 31, 2007 was as follows:
Beginning Ending
Bal ance Balance
1/1/2007 Increases Decreases 12131/2007
GovermnentaI Activities:
Capital Assets, Not Being Depreciated:
Land $ 13,119,143 $ 2,398,515 $ 648,003 $ 14,869,655
Construction in Progress 11,331,451 7,527 ;275 13,225,460 5,633,266
Total Capital Assets, Not Being Depreciated 24,450,594 9,925,790 13,873,463 20,502,921
Capital Assets, Being Depreciated:
Buildings/Building Improv(IIlents 40,326,762 11 ,398,240 305,132 51,419,870
Improvements Other Than Buildings 10,625,176 3,282,958 13,908,134
Machinery and Equipment 13,640,233 858,645 455,518 14,043,360
Infrastructure 30,601,028 164,003 45,000 30,720,G31
Total Capital Assets, Being Depreciated 95,193,199 15,703,846 805,650 11 0,091,395
Less Accunula ted Depreciation fOr:
Buildings/Buildings Improvem:nts 4,538,792 884,496 147;216 5,276,072
Improvements Other Than Buildings 5;226,522 509,816 5,736,338
Machinery a nd Equipment 6,381,834 1,010,441 423,087 6,%9,188
Infrastructure 13;238,459 935,465 71,246 14,102,678
Total Accumulated Depreciation 29,385,607 3,340,218 641,549 32,084,276
Total Capital Assets, Being Deprociated, Net 65,807,592 12,363,628 164,101 78,007,119
GOVERNMENT AL ACTIVlTIES
CAPIT AL ASSETS, NET $ 90,258,186 $ 22,289,418 $ 14,037,564 $ 98,510,040
Beginning Ending
Balance Ba1ancc
1/1/2007 Increases Decreases 12/31/2007
Business-type Activities:
Capital Asscts, Not Being Depreciated:
Land $ 7,599,383 $ 414,502 $ 15,000 $ 7,998,885
Construction in Progress 4,486,782 4,668,331 2,106,893 7,048,220
Total Capital Assets, Not Being Depreciated 12,086,165 5,082,833 2,121,893 15,047,105
Capital Assets, Being Depreciated:
Buildings/Building Improvements 46,745,780 88,834 14,320 46,820,294
Improvements Other Than Buildings 100,123,419 2,694,470 7,782 102,810,107
Machinery and Equipment 35,813,370 1,406,756 548,510 36,671,616
Total Capital Asscts, Being Depreciated 182,682,569 4,190,060 570,612 186,302,017
Less Accumulated Depreciation for:
Buildings/Buildings Improvements 14,315,441 934,916 14,320 15,236,037
Improvements Other Than Buildings 29,490,535 2,002,468 7,782 31,485,221
Machinery and Equipment 19,202,272 2,065,543 516,665 20,751,150
Total Accumulated Depreciation 63,008,248 5,002,927 538,767 67,472,408
Total Capital Assets, Being Depreciated, Net 119,674,321 (812,867) 31,845 118,829,609
BUSINESS-TYPE ACTIVITIES
CAPITAL ASSETS, NET $ 131,760,486 $ 4,269,966 $ 2,153,738 $ 133,876,714
City of Bremerlon /48
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government $
Public Safety
Transportation, Including Depreciation of General Infrastructure Assets
Economic Environment
Culture and Recreation
Capital Assets Held by the Government's Internal Service Funds
are Charged to the Various Functions Based on Their Usage of the Assets
Total Depreciation Expense - Governmental Activities $
Business-type Activities:
Water $
Wastewater
Stormwater
Golf
Capital Assets Held by the Government's Internal Service Funds
are Charged to the Various Functions Based on Their Usage of the Assets
Total Depreciation Expense - Business-type Activities $
Construction Commitments:
232,521
493,605
942,064
551
1,141,746
501,013
3,311,500
1,596,691
2,794,575
41,841
278,541
221,401
4,933,049
The City has active construction projects as of December 31,2007. The projects include construction ofan off
ramp from the Warren Avenue bridge, widening of State Route 304 from the SR 3/304 interchange to the new
Missouri Gate signal, upgrade of the Anderson Cove CW-l sewer lift station and construction ofthe Harborside
Plaza and Commons.
Project
Warren Avenue Bridge Off Ramp
Roadway widening of SR 304
Anderson Cove Sewer Lift Station CW-l Upgrade
Harborside Plaza and Commons
Spent to Date
512,378
3,107,835
21,014
. 61,200
3,702,427 $
Remaining
Commitment
54,741
3,539,020
1,267,494
2,156,944
7,018,199
$
7. Pension Plans
Substantially all City full-time and qualifying part-time employees participate in one of the following statewide local
government retirement systems administered by the Department of Retirement Systems, under cost-sharing multiple-
employer public employee defmed benefit retirement plans. The Department of Retirement Systems (DRS), a
department within the primary government of the State of Washington, issues a publicly available comprehensive
annual financial report (CAFR) that includes financial statements and required supplementary information for each
plan. The DRS CAFR may be obtained by writing to:
Department of Retirement Systems
Communication Unit
PO Box 48380
Olympia, W A 98504-8380
City of Bremerton /49
The following disclosures are made pursuant to GASB Statement 27, Accounting for Pensions by State and Local
Government Employers:
A. Public Employees' Retirement System (PERS) Plans 1, 2 and 3
1. Plan Description
PERS is a cost-sharing multiple-employer retirement system. Plans 1 and 2 are defined benefit plans and Plan 3 is a
combination defined benefit/defined contribution plan. Membership in the system includes: elected officials; state
employees; employees of the Supreme, Appeals, and Superior courts (other than judges); employees of legislative
committees; college and university employees not in national higher education retirement programs; judges of district
and municipal courts; non-certificated employees of school districts; and employees of local government. PERS
participants who joined the system by September 30,1977, are Plan 1 members. Those who joined on or after October
1, 1977 and by either, February 28, 2002 for state and higher education employees or August 31, 2002 for local
government employees, are Plan 2 members unless they exercise an option to transfer their membership to Plan 3.
PERS participants joining the system on or after March 1, 2002 for state and higher education employees, or
September 1, 2002 for local government employees have the option of choosing membership in either PERS Plan 2 or
PERS Plan 3. The option must be exercised within 90 days of employment. An employee is reported in Plan 2 until a
choice is made. Employees who filiI to choose within 90 days default to PERS Plan 3. PERS defined benefit
retirement payments are financed from a combination of investment earnings and employer and employee
contributions. PERS retirement benefit provisions are established in state statute and may be amended only by the
State Legislature.
Plan 1 retirement benefits are vested after an employee completes five years of eligible service. Plan 1 members are
eligible for retirement at any age after 30 years of service, or at age 60 with five years of service, or at the age of 55
with 25 years of service. The annual pension is two percent of the average final compensation per year of service,
capped at 60 percent. The average final compensation is based on the greatest compensation during any 24 eligible
consecutive compensation months. If qualified, after reaching age 66, a cost-of-living allowance is granted based on
years of service credit and is capped at three percent annually.
Plan 2 retirement benefits are vested after an employee completes five years of eligible service. Plan 2 members may
retire at the age of 65 with five years of service, or at 55 with 20 years of service, with an allowance of two percent per
year of service of the average final compensation. The average final compensation is based on the greatest
compensation during any eligible consecutive 60-month period. Plan 2 retirements prior to 65 are actuarially reduced.
If retirement is at age 55 or older with at least 30 years of service, a three percent per year reduction applies: otherwise
an actuarial reduction will apply. There is no cap on years of service credit and a cost-of-living allowance is granted
(indexed to the Seattle Consumer Price Index), capped at 3 percent annually.
Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component, and member
contributions finance a defined contribution component. The defined benefit portion provides a benefit calculated at 1
percent of the average final compensation per year of service. The average final compensation is based on the greatest
compensation during any eligible consecutive 60-month period. Plan 3 members become eligible for retirement if
they have: at least ten years of service; or five years including twelve months that were earned after age 54; or five
service credit years earned in PERS Plan 2 prior to June 1,2003. Plan 3 retirements prior to the age of 65 receive
reduced benefits. If retirement is at age 55 or older with at least 30 years of service, a 3 percent per year reduction
, applies; otherwise an actuarial reduction will apply. There is no cap on years of service credit; and Plan 3 provides the
same cost-of-living allowance as Plan 2. The defined contribution portion can be distributed in accordance with an
option selected by the member, either as a lump sum or pursuant to other options authorized by the Employee
Retirement Benefits Board.
There are 1,181 participating employers in PERS. Membership in PERS consisted of the following as of the latest
actuarial valuation date for the plans of September 30, 2006:
City of Bremerton / 50
Retirees and Beneficiaries Receiving Benefits
Retirees and Beneficiaries Entitled To But Not Yet Receiving Benefits
Active Plan Members Vested
Active Plan Member Non-vested
Total
70,201
25,610
105,215
49.812
250,838
2. Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates, Plan 2 employer and
employee contribution rates, and Plan 3 employer contribution rates. Employee contribution rates for Plan 1 are
established by statute at six percent and do not vary from year to year. The employer and employee contribution rates
for Plan 2 and the employer contribution rate for Plan 3 are developed by the Office of the State Actuary to fully fund
Plan 2 and the defmed benefit portion of Plan 3. All employers are required to contribute at the level established by the
Legislature. PERS 3 defmed contribution is a non-contributing plan for employers. Employees who participate in the
defined contribution portion of PERS Plan 3 do not contribute to the defined benefit portion of PERS Plan 3. The
Employee Retirement Benefits Board set Plan 3 employee contribution rates. Six rate options are available ranging
from 5 to 15 percent. Two of the options are graduated rates dependent on the employee's age. The methods used to
determine the contribution requirements are established under state statute in accordance with chapters 41.40 and 41.45
RCW.
The required contribution rates expressed as a percentage of current-year covered payroll as of December 31, 2007
were as follows:
Employer *
Employee
PERS Plan I
6.13%**
6.00%***
PERS Plan 2
6.13%
4.15%
PERS Plan 3
6.13%****
*****
* The employer rates include the employer administrative expense fee currently set at 0.18%.
** The employer rate for state elected officials is 9.12% for Plan 1 and 6.13% for Plan 2 and 3.
***The employee rate for state elected officials is 7.50% for Plan 1 and 4.15% for Plan 2.
**** Plan 3 defined benefit portion only.
***** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member.
Both the City and the employees made the required contributions. The City's required contributions for the years
ended December 31 were:
2007
2006
2005
PERS Plan 1
83,897
48,057
30,535
PERS Plan 2
646,675
317,727
185,424
PERS Plan 3
71,910
31,529
17,856
B. Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plans 1 and 2
1. Plan Description
LEOFF is a cost-sharing multiple-employer retirement system comprised of two separate defmed benefit plans.
Membership includes all full-time, fully compensated, local law enforcement officers and fire fighters. LEOFF is
comprised primarily of non-state employees. Participants who joined the system by September 30, 1977 are Plan 1
members. Those who joined on or after October 1, 1977 are Plan 2 members. LEOFF retirement benefits are financed
from employee and employer contributions, investment earnings and a special funding situation in which the state pays
the remainder through state legislative appropriations. LEOFF retirement benefit provisions are established in state
statute and may be amended only by the State Legislature.
Plan 1 retirement benefits are vested after an employee completes five years of eligible service. Plan 1 members are
eligible for retirement with five years of service at the age of 50. The benefit per year of service calculated as a percent
offinal average salary is as follows:
City of Bremerton / 51
Term of Service
20+
10-20
5-10
Percent of Final Average
. Salary
2:0%
1.5%
1.0%
The final average salary is the basic monthly salary received at the time of retirement, provided a member has held the
same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the highest
consecutive 24 months' salary within the last 10 years of service. If membership was established in LEOFF after
February 18, 1974, the service retirement benefit is capped at 60 percent of final average salary. A cost-of-living
allowance is granted (indexed to the Seattle Consumer Price Index).
Plan 2 retirement benefits are vested after an employee completes five years of eligible service. Plan 2 members may
retire at the age of 50 with 20 years of service or, at 53 with five years of service, with an allowance of 2 percent of the
final average salary per year of service. The fmal average salary is based on the highest consecutive 60 month. Plan 2
retirements prior to age 53 are reduced 3 percent for each year that the benefit commences prior to age 53. There is no
cap on years of service credit; and a cost-of-living allowance is granted (indexed to the Seattle Consumer Price Index),
capped at three percent annually.
There are 383 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest
actuarial valuation date for the plans of September, 30, 2006:
Retirees and Beneficiaries Receiving Benefits
Retirees and Beneficiaries Entitled To But Not Yet Receiving Benefits
Active Plan Members Vested
Active Plan Member Non-vested
Total
8,951
602
12,711
3,603
25,867
2. Funding Policy
Starting on July 1,2000, Plan 1 employers and employees will contribute zero percent as long as the plan remains fully
funded. Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the
plan. Plan 2 employers and employees are required to pay at the level adopted by the Department of Retirement
Systems in accordance with 41.45 RCW. All employers are required to contribute at the level required by state law.
The Legislature, by means of a special funding arrangement, appropriated money from the state General Fund to
supplement the current service liability and fund the prior service costs of Plan 1 in accordance with the requirements
of the Pension Funding Council. However, this special funding situation is not mandated by the state constitution and
this fund requirement could be returned to the employers by a change of statute. The methods used to determine the
contribution rates are established under state statue in accordance with chapters 41.26 and 41.45 RCW.
The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2007
were:
Employer.
Employee
State
LEOFF Plan 1
0.16%
0.00%
N/A
LEOFF Plan 2
5.35%
8.64%
3.45%
*The employer rates include the employer administrative expense fee currently set at 0.16%.
Both the City and the employees made the required contributions. The City's required contributions for the years
ended December 31 were:
2007
2006
2005
LEOFF Plan 1
1,159
1,201
1,280
LEOFF Plan 2
467,863
384,238
292,051
City of Bremerton / 52
c. Public Safety Employees' Retirement System (PSERS) Plan 2
I. Plan Description
PSERS was created by the 2004 legislature and became effective July 1, 2006. PSERS is a cost-sharing
multiple-employer retirement system comprised of a single defined benefit plan, PSERS Plan 2.
PSERS Plan 2 membership includes full-time employees of a covered employer on or before July 1, 2006, who
met at least one of the PSERS eligibility criteria, and elected membership during the election period of July 2,
2006 to September 30, 2006; and those full-time employees, hired on or after July 1, 2006 by a covered
employer, that meet at least one ofthe PSERS eligibility criteria.
A covered employer is one that participates in PSERS. Covered employers include: State of Washington
agencies: Department of Corrections; Parks and Recreation Commission, Gambling Commission, Washington
State Patrol, and Liquor Control Board; Washington state counties; and Washington state cities except for
Seattle, Tacoma and Spokane.
To be eligible for PSERS, an employee must work on a full-time basis and:
· Have completed a certified criminal justice training course with authority to arrest, conduct criminal
investigation, enforce the criminal laws of Washington, and carry a firearm as part of the job: OR
· Have primary responsibility to ensure the custody and security of incarcerated or probationary
individuals; OR
· Function as a limited authority Washington peace officer, as defined in RCW 10.93.020; OR
. Have primary responsibility to supervise eligible members who meet the above criteria
PSERS defined benefit retirement payments are financed from a combination of investment earnings and
employer and employee contribution. PSERS retirement benefit provisions are established in state statute and
may be amended only by the State Legislature.
Plan 2 retirement benefits are vested after an employee completes five years of eligible service and attains the
age of 65. PSERS Plan 2 members may retire at the age of 65 with five years of service, or at the age of 60 with
at least 10 years of PSERS service credit, with an allowance of 2 percent of the average final compensation per
year of service. The average final compensation is the monthly average of the member's 60 consecutive
highest-paid service credit month excluding any severance pay such as lump-sum payments for deferred sick
leave, vacation or annual leave. Plan 2 retirees prior to the age of 60 receive reduced benefits. If retirement is
at age 53 or older with at least 20 years of service, a 3 percent per year reduction for each year between the age
at retirement and age 60 applies. There is no cap on years of service credit; and a cost-of-living allowance is
granted (indexed to the Seattle Conslimer Price Index), capped at 3 percent annually.
There are 69 participating employers in PSERS. Membership in PSERS consisted of the following as of the
latest actuarial valuation date for the plan of September 30, 2006.
Retirees and Beneficiaries Receiving Benefits
Retirees and Beneficiaries Entittled To But Not Yet Receiving Benefits
Active Plan Members Vested
Active Plan Member Non-vested
Total
o
o
o
2,073
2,073
2. Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates.
The employer and employee contribution rates for Plan 2 are developed by the Office of the State Actuary to
fully fund Plan 2. All employers are required to contribute at the level established by the Legislature. The
methods used to determine the contribution requirements are established under state statute in accordance with
chapters 41.37 and 41.45 RCW.
City of Bremerton / 53
The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31,
2007 were as follows:
PSERS Plan 2
Employer*
Employee
8.55%
6.57%
*The employer rate includes an employer administrative expense fee of 0.16%.
Both the City and the employees made the required contribution. The City's required contributions for the year
ended December 31,2007 were as follows:
2007
2006
PSERS Plan 2
$8,934
$1,975
8. Risk Management
The City's Risk Management Fund is used to finance its various exposures to loss. These exposures include theft,
damage or destruction of assets, errors and omissions, property damage and injury of others. Smaller losses are self-
insured while commercially available excess insurance is purchased for many larger losses. The City's General and
Utility funds participate in financing the Risk Management Fund.
Following is a summary of the City's 2007 insurance coverage and risk retention:
Risk
Excess Liability
Excess Workers' Compensation
Blanket Property
Employee Blanket Bond
Pollution Legal Liability
Coverage Limit
Per Occurrence
$5,000,000
Statutory
45,000,000
1,000,000
1,000,000
Self-Insured
Retention
$250,000
300,000
100,000
25,000
100,000
Insurer
Illinois Union Insurance Company
Safety National Casualty Corporation
Affiliated FM Insurance Company
Great American Insurance Company
Indian Harbor Insurance Company
The risk manager and claims administrators establish reserves for open claims on a case by case basis, after an
assessment of each claim's settlement value. Actuarial techniques are used to estimate the long-term liability of the
fund for both reported and unreported losses. As of December 31, 2007, the Risk Management Fund had cash reserves
of $1,126,609. Long-term fund liabilities have been estimated at $417,047. Cash balances adequate to pay currently
due claims have been available in the fund since its inception in 1986. In the last three years, no settlement has
exceeded the limit of liability on applicable insurance policies. The expected annual level of incurred claims is
approximately $360,000.
The following table shows the actual claims activity for 2006 and 2007:
Claims Liability - Beginning of Year
Claims Incurred
Estimate Change Prior Years
Payment on Claims
Claims Liability - End of Year
2006
$1,031,500
684,991
(25,960)
(365,615)
$1,324,916
2007
1,324,916
468,571
(154,746)
(715,416)
$923,325
City of Bremerton / 54
A. Long Term Debt
9. Long-term Debt and Leases
The City issues general obligation and revenue bonds to finance the purchase or construction of capital assets.
Bonded indebtedness has also been entered into in prior years to advance refund G.O. bonds. General
obligation and revenue bonds have been issued for both general government and business-type activities and are
being repaid from the applicable resources.
General obligation bonds currently outstanding are as follows:
1999 Golf Refunding (Councihrianic)
2001 Golf Course (Councilmanic)
2002 Public Safety UTGO
2003 Weekly Rate Demand Conference Ctr (Councilmanic)
Government Center Real Estate Contract
2005 Sports & Public Works Complex RefLTGO
Total General Obligation Bonds and Notes
Maturity
Date
12/01/18
12/01/20
12/01/27
12/01/28
06/01/34
09/06/05
Interest
Rate
3.8/ 5.3
4.125/5.1
2.5 /5.25
VARIABLE
1.6/5
3.69
The annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending
December 31
2008
2009
2010
2011
2012
2013-2017
2018-2022
2023-2027
2028-2032
2033-2034
Total
Governmental Activities
Principal Interest
839,633 1,029,366
875,581 998,987
918,028 965,913
960,476 930,941
1,001,923 893,156
4,220,302 3,932,103
5,197,646 2,922,019
6,527,674 1,558,841
2,073,137 398,625
575,000 38,500
23,189,400 13,668,451
Business Activities
Principal Interest
355,000 266,413
370,000 250,293
385,000 233,233
410,000 213,212
425,000 195,897
2,465,000 644,900
1,020,000 87,312
5,430,000
Revenue bonds and loans currently outstanding are as follows:
1994 PWTF Loan - Warren Ave CSO
1995 PWTF Loan WWTP Improvements
1996 PWTF Loan Callow Ave CSO I
1997 PWTF Loan Callow Ave CSO II
1998 PWTF Loan SR 303 Water Main
1999 PWTF Loan Tracyton Water Sys Ph2
1999 PWTF Loan CSO Design
Maturity
Date
07/01/14
07/01/15
07/01/16
07/01/17
07/01/18
07/01/19
07/01/20
Interest
Rate
1.0
1.0
1.0
1.0
1.0
2.0
2.0
1,891,260
Outstanding
12/31/2007
1,117,242
1,481,871
1,363,007
352,520
1,823,684
118,889
585,511
$
Outstanding
12/31/2007
3,110,000
2,320,000
11,290,000
4,688,900
5,987,500
1,223,000
28,619,400
City of Bremerton / 55
Maturity Interest Outstanding
Date Rate 12/31/2007
2000 PWTF Loan Multi-Basin CSO 07/01/20 1.0 1,941,236
2000 PWTF Loan Callow CSO 3-5 07/01/20 1.0 2,904,585
2001 PWTF Loan East Bremerton CSO 07/01/21 0.5 2,216,667
2003 PWTF Loan Anderson Cove Basin 12 07/01/23 0.5 80,000
2003 PWTF Loan Naval Avenue 07/01/23 4.0 210,526
2004 PWTF Loan Brentwood Storm Drain Red 07/01/24 4.0 167,692
2004 PWTF Loan Pacific Ave Basin CSO 07/01/24 0.5 887,579
2006 PWTF Loan WWTP Upgrade 07/01/10 0.5 142,105
2006 PWTF Loan SW Bremerton Sewer 07/01/01 0.5 412,500
2007 PWTF Anderson Cove Sewer PS CWl 07/01/27 0.5 135,000
2007 PWTF Sheldon Blvd Sewer Repl 07/01/27 2.0 60,000
2007 PWTF WWTP Upgrades 07/01/27 0.5 600,000
1994 CCWF Loan Callow Ave CSO Design 05/01/17 0.0 354,069
1997 CCWF Loan Callow Ave CSO I 07/31/18 4.8 1,775,537
1998 DWSRF Loan Corrosion Control Facility 10/01/18 4.0 605,184
2001 DWSRF Loan Tracyton WD Upgrade 10/01/21 2.5 1,954,152 .
2002 DWSRF Loan Eastside Flow & Pressure 10/1 /22 2.5 915,303
2002 DWSRF Loan Casad Dam Seismic Upgrade 10/1/22 2.5 589,137
2003 DWSRF Loan Casad Dam Intake Tower 1 % 1/23 1.5 70,414
2003 DWSRF Loan Pump Station 4 Upgrade 10/01/23 1.5 921,780
2004 DWSRF Loan Anderson Creek 10/01/24 1.5 91,491
2004 DWSRF Loan Seismic Upgrades 10/01/24 1.5 287,627
1999 WPCRF Loan CSO Plan Update 12/31/22 1.5 199,935
1999 WPCRF Loan Anderson Cove CSO 02/27/21 1.5 693,617
1999 WPCRF Loan Callow Ave CSO Final 12/31/22 1.5 462,383
2002 WPCRF Loan Anderson CV CSO Red 1/23/22 1.5 493,300
2002 WPCRF Loan Cherry/Trenton CSO Red 10/15/24 1.5 910,352
2002 WPCRF Loan Trenton Pump Station 10/15/24 1.5 909,764
2002 WPCRF Loan Tracyton Beach CSO 12/31/25 1.5 543,514
2002 WPCRF Loan Anderson Cove Basin 12 12/31/26 1.5 238,177
2003 WPCRF Pacific Ave CSO Red-Sep 6/30/24 1.5 106,834
2003 WPCRF Loan Pacific Ave CSO Reduction 12/31/27 1.5 654,120
2004 WPCRF Loan Charry/Trenton CSO Red-l 12/31/26 1.5 1,076,832
2007 WPCRF WWTO Upgrade 1/1/29 2.6 93,849
2007 W /S Refunding & Revenue Bond 12/01/21 4.3 5,215,000
2003 Weekly Rate Demand Conference Ctr 12/1/28 Variable 5,551,100
Total Revenue Bonds and Loans $ 41,314,085
City of Bremerton / 56
Revenue bond and loan debt service requirements to maturity are as follows:
Year Ending
December 31
2008
2009
2010
2011
2012
2013-2017
2018-2022
2023-2027
2028-2029
Total
Governmental Activities
Business Activities
Principal
$146,367
159,919
173,4 72
187,024
200,577
1,187,198
1,382,354
1,607,326
506,863
$5;551,100
Interes t
$189,166
183,569
177,497
170,951
163,931
698,321
469,594
204,534
o
$2,257,563
Principal
$2,618,012
2,711,654
2,751,292
2,768,272
2,692,535
12,769,613
8,031,200
1,369,866
50,541
$35,762,985
In terest
$676,708
636,314
594,894
545,129
494,743
1,683,254
517,379
41,694
691
$5,190,806
The interest rate on the 2003 Weekly Rate Demand bonds is determined weekly by the Remarketing Agent. The rate
determined is the minimum rate which in its judgment, on the basis of prevailing financial market conditions, would
permit the sale of the 2003 bonds at par on the determination date, such rate to be the weekly rate for the next rate period.
If the remarketing agent fails to make such determination on any determination date, the weekly rate for the next
succeeding rate period shall be the rate in effect for the immediately preceding rate period. The effective rate at
December 31, 2007 was 3.5%.
In proprietary funds, unamortized debt issue costs are recorded as deferred charges and bonds are displayed net of
premium or discount: annual interest expense is decreased by amortization of debt premium and increased by the
amortization of debt issue costs and discount.
At December 31, 2007, the city has $548,107 available in debt service funds to service the general bonded debt.
Restricted assets in proprietary funds contain $1,129,982 in sinking funds and reserves as required by bond indentures.
B. Refunded Debt
During 2007 the City refunded $2,655,000 of 1994 Revenue Bonds and $365,928 of 2005 UUD Revenue Bonds to
reduce total debt service payments as well as to allow the issuance of new revenue bonds with revised and updated bond
covenants. The 1994 bonds were refunded through a cash defeasance. Funds on hand for principal repayment plus
accrued interest to date were used to purchase noncallable government obligations in amounts and maturities that,
together with the known earned income therefrom, were sufficient to pay the final maturity and interest obligation that
was due on September 1, 2007. The City issued $372,000 of revenue bonds to provide resources to repay the 2005
UUD Revenue Bond which was a private placement debt obligation held by Bank of America. This advance refunding
will reduce debt service payments over the next nine years by $7,436 and resulted in an economic gain of $6,676. There
were no outstanding refunded bonds at 12/31/07.
C. Conduit Debt Obligations
On February 16,2005 the City Council approved a contingent loan agreement that commits the city to $2,000,000 (plus
related interest) of contingent debt liability in the event sale proceeds from Kitsap Consolidated Housing Authority's
condominium project are not sufficient to repay the project debt. This contingent liability would not be invoked until
Kitsap County has fully exercised its contingent debt guarantee of $11 ,867,292.
D. Changes in Long Term Liabilities
During the year ended December 31, 2007, the following changes occurred in long-term liabilities:
City of Bremerton / 57
Beginning Ending
Balance Balance Due Within
1/1/2007 Additions Reductions 12/31/2007 One Year
Governmental Activities:
Bonds payable:
General obligation bonds $24,548,664 $1,359,264 $23,189,400 $839,633
Revenue bonds 5,754,336 203,236 5,551,100 146,367
Add unamortized Premiums 130,898 6,258 124,640
Less deferred refunding expense (59,006) 9,569 (49,437)
Less unamortized Discounts Q ~ Q
Total Bonds payable: 30,374,892 9,569 1,568,758 28,815,703 986,000
Claims and judgments 1,324,916 401,591 923,325
Compensated absences 1.023.534 213.107 1.236.641
Governmental activity
long-term liabilities: $32,723,342 $222,676 $1,970,349 $30,975,669 $986,000
Business-type Activities:
Bonds payable:
General obligation bonds 5,770,000 340,000 5,430,000 355,000
Revenue bonds 3,020,928 5,375,000 3,180,928 5,215,000 305,000
Less OlD on GO bonds (8,846) 741 (8,105)
Less deferred refunding expense (34.297) 34.297 Q
Total Bonds payable: 8,747,785 5,410,038 3,520,928 10,636,895 660,000
Intergovernmental Loans 30,786,083 1,937,645 2,175,743 30,547,985 2,313,013
Note Payable 114,121 2,888 111,233
Capital Leases Q Q
Business-type activity
long-term liabilities: $39,647,989 $7,347,683 $5,699,559 $41,296,113 $2,973,013
The Risk Management internal service fund predominantly serves the governmental funds. Accordingly, long-term
liabilities for it is included as part of the above totals for governmental activities. At year end $923,325 of internal
service funds claims and judgments are included in the above amounts.
10. Contingencies, Litigation and Claims
In March 1993, the City entered into an Order on Consent with the Department of Ecology for reduction of combined sewer
overflows (CSOs) including separation of combined sanitary and storm sewers. The cost of the required improvements is
currently estimated at $50.7 million. Of this amount, the City has expended approximately $46.9 million to date. The remaining
improvements will be constructed during the period 2006 through 2009.
In 1993 the City also entered into a Consent Decree with the Puget Soundkeeper's Alliance (PSA), a citizens' group authorized
to commence an action under the Federal Clean Water Act. Since entering the Consent Decree, PSA and the City were involved
in mediation, which has resulted in the acceleration of several CSO projects, and a reordering of the schedule for construction of
the remaining projects. Satisfaction of the liabilities under the above Order on Consent and this Consent Decree are being
accomplished concurrently.
The City participates in a number of federal and state assisted programs. These grants are subject to audit by the grantor or their
representatives. Such audits could result in requests for reimbursement to grantor agencies for expenditures disallowed under the
terms of the grants. Management believes that such disallowances, if any, will be immaterial.
City of Bremerlon / 58
11. Restricted Net Assets
The government-wide statement of net assets reports $4,651,400 of restricted net assets, all of which is restricted by
enabling legislation.
12. Interfund Balances and Transfers
A. Interfund Balances
Interfund balances at December 31, 2007 were as follows:
J Gene~i Arterial
I Fund Street
Gene;~i'fu~d----r-"-'--'-'--"'--"
Other Governmental Funds ! 3,080 3,620
Water
Wastewater
Other Proprietary Funds
Internal Service
Total
Other
,.~~~~~_.--.!22L__2!!!u~iarr._.
$54,793 $124,776 $18,558 $19,703
$18,558
I
Total I
$229,8201
$109,000
$19,294
$10,654
.._ $1~~J
$370,584
1,295
3,696
$19,703
Interfund balances at year end were a result of outstanding interfund loans as well as amounts due for services provided
between funds. Amounts due for services will be liquidated early in 2008. Interfund loans are approved by City Council
Resolution and include a repayment date. The following schedule is a summary of loans outstanding at year end
including the year of final payment.
~~~,
,Other Government I Cash Flow
I Water i Park Land
I Internal Service I Park lmpr
~~!,.Servic~.____ jCash Flow
Total
Fund
Govt
150,000
113,170
::~~~: .. ......:.]
Water "._..._. T~~~~
213,8171
I
113,170 I
1,250,000 ..~O,OOO I
$1,250,000 $1,726,987
$213,817
$263,170
B. Interfund Transfers
Interfund transfers at December 31, 2007 were as follows:
Other Proprietary Funds !
Internal Service l'
Fidu~!ary ...'"_.__._.._....3,453,5~~._
Total $3,649,995
'~i" ....'!k!~~~_l'
General Other Waste- Other Internal
I Fund Govt Water Water Prop Service Total
..._....-T-.--"."'"--_._._~---_._._..._._'_._"'--~--_._.-...-.
$936,589 $690,376 $1,100,363 $153,902 $2,881,230;
$140,000 $140,0001
4,691,030 48,634 $5,936,1591
100,000 $100,0001
$4,986'~~~1
___~2~~~.::.~~
$48,634 $16,625,554
$ 1,196,495
28,075
36,691
60,000
4,949,899
40,000
$5,795,694
$787,067
$6,090,262
$253,902
Interfund transfers are the flow of assets without equivalent flows of assets in return and without a requirement for
repayment. Generally funds flow between funds with tax or other resources to funds for payment of debt service, capital
construction or in support of operations. This category also includes payment in lieu of taxes levied by the General fund
on city utility funds that are not payments for, and are not reasonably equivalent in value to, services provided.
City of Bremerton / 59
There were several significant transfers during 2007. In addition to recurring transfers to support continuing operations,
debt service payments and police and fire pension payments the General fund transferred $125,000 of its higher than
anticipated 2006 ending fund balance to increase the street fund supply budget to increase street paving projects in the
City.
The Contingency Reserve fund transferred $1,609,773 of proceeds received from the sale of City property to support
construction as well as reduce debt. $500,000 was designated for a full principal retirement of the outstanding Line of
Credit for operations by the Conference Center Operations fund. The remaining proceeds from the sale of Eastpark
property ($894,470) was transferred to the Boardwalk fund for the design and construction of the boardwalk and
expansion of Evergreen Park. $199,649 was transferred to the Parks Construction fund for park purchase or construction
in the future.
The Parking System fund transferred an additional $270,000 to the Bond fund for early principal retirement of
outstanding 2003 Weekly Rate Demand Conference Center bonds.
General Government Capital Improvement fund transferred funds to support City capital projects. Significant transfers
were $500,000 to the Public Safety Bond fund for the renovation or construction of a new Municipal Court building,
$275,000 to Harborside Park to support the construction of the new park, $100,000 to the Parks Capital fund for system
upgrades to the Jarstad Aquatic Center and $125,000 to the Conference Center fund for preopening and furniture,
fixtures and equipment for the new Fountain Room at Building 50.
The Wastewater fund transferred proceeds of the 2007 Water and Sewer Revenue issue to the Utility Debt Reserve fund
($493,457) to fund the bond reserve requirements and to the Southwest Bremerton Sewer fund ($4,456,442) for project
construction.
13. Receivable and Payable Balances
A. Receivables
Receivables at December 31, 2007 were as follows:
Due from
Loans Notes Other
Accounts Taxes Receivable Contracts Government Other Total
Governmental Activities:
General Fund $ 885,779 $ 2,695,194 $ 46,426 $ 12,058 $ 3,639,457
Arterial Street 106,993 20,831 104,009 1,659,515 1,891,348
Non-major and other funds 209,187 226,633 $ 917,935 16,657 314,142 1,684,554
Reconciliation of balances in fund financial
statements to government-wide financial
statements 600 97,511 98,111
Total Governmental Activities $ 1,202,559 $ 2,942,658 $ 917,935 $ 120,666 $ 2,020,083 $ 109,569 $ 7,313,470
Due from
Loans Notes Other
Accounts Taxes Recei vable Contracts Government Other Total
$ 1,303,974 689,407 350,000 $ 322,496 $ 2,665,877
1,802 2,858 1,876 6,536
2,579,758 $ 3,161 $ 533,466 22,851 3,139,236
377,673 42,945 420,618
Business-Type Activities:
Water
Golf
Wastewater
Non-major and other funds
Reconciliation of balances in fund financial
statements to government-wide financial
statements
14,240
12,193
26,433
Total Business-Type
Activities
$ 4,277,447 $
3,161 $
- $ 692,265 $ 883,466 $ 402,361 $ 6,258,700
City of Bremerton / 60
B. Payables
Payables at December 31, 2007 were as follows:
Salaries and Due to Other Claims/
Vendors Benefits Retainage Governments Judgements Other Total
Governmental Activities:
General Fund $ 558,437 $ 726,393 2,553 280 $ 1,287,663
Arterial Street 547,851 $ 61,516 $ 2,425,754 45,647 3,080,768
Non-major and other funds 535,270 95,735 275,266 19,352 84,907 1,010,530
Reconciliation of balances in fund
financial statements to government-
wide financial statements 105,682 1,300,991 340 923,325 $ 48,674 2,379,012
Total Governmental Activities $ 1,747,240 $ 2,123,119 $ 339,335 $ 2,445,726 $ 923,325 $ 179,228 $ 7,757,973
Business-Type Activities:
Water $ 480,385 $ 826,350 $ 7,180 $ 120 $ 263,624 $ 1,577,659
Golf 66,087 3,728 7 74,396 144,218
Wastewater 953,659 21,829 4,292 132,008 1,111,788
Non-major and other funds 21,301 5,246 3,354 29,901
Reconciliation of balances in fund
financial statements to government-
wide financial statements 13,381 13,381
Total Business-Type
Activities $ 1,521,432 $ 870,534 $ 7,180 $ 4,419 $ - $ 473,382 $ 2,876,947
14. Post Employment Benefits other than Pension
Police and Firemen's Pension
The City has retained liability for benefits for uniformed policemen and firemen retired prior to March 1, 1970, and partial
benefits to members retiring after that date who are mainly covered by LEOFF. No actuarial determination of this liability has
been made. The City's obligation is financed on a pay-as-you-go basis. For the year ended December 31,2007, the City's
expense for meeting this obligation was $2,318,956.
15. Segment Information
The City operates a utility system providing water, wastewater and stormwater management services to the citizens of
Bremerton and a portion of Kitsap County outside city boundaries. Operations are financed by user fees imposed on
customers of each utility. The City has issued revenue bonds to finance improvements to its sewer system. While the
operations of each utility are accounted for in separate funds, the repayment of the revenue bonds relies on the combined
revenues of all three utilities. In addition, the City operates a public golf course whose operations are funded entirely
through user fees. With the exception of the combined utility, there are no revenue bonds issued or other revenue-
backed debt outstanding for which full, detailed segment data is not provided in the proprietary fund financial
statements.
The key financial data for the year ended December 31, 2007 for the combined utility operations are as follows:
City of Bremerton / 61
CONDENSED STATEMENT OF NET ASSETS
ASSETS
Current Assets
Restricted Assets
Capital Assets
Other Assets
Total Assets
$
17,767,158
1,662,250
124,711,483
2.491,080
146,631,971
LIABILITIES
Current Liabilities
Due to other funds
Payable from Restricted Assets
Long-term liabilities
Total Liabilities
4,701,742
1,453,118
179,224
33,736,569
40,070,653
NET ASSETS
Restrict for Debt Service
Unrestricted
Invested in capital assets net of related debt
Total Net Assets
1,483,026
16,073,335
89,004,957
106,561,318
$
CONDENSED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
Total Operating Revenues $
24,926,575
OPERATING EXPENDITURES:
Operations & Maintenance
Depreciation/Amortization/Depletion
Total Operating Expenses
12,791,146
4,588,704
17.3 79 ,850
7,546,725
OPERATING INCOME(LOSS)
NON-OPERATING REVENUES/EXPENSES
Interest Expense (net)
Other (Net)
Total Non-operating Revenues/Expenses
Capital Contributions
Transfers
Change in Net Assets
Beginning Net Assets
Prior Period Adjustment
Ending Net Assets
(154,084)
417,558
263.474
3,923,882
(6,501,083)
5,232,998
100,978,320
350,000
106,561,318
$
CONDENSED STATEMENT OF CASH FLOWS
Net Cash Provided By:
(a) Operating Activities
(b) Noncapital Financing Activities
(c) Capital and Related Financing Activities
(d) Investing Activities
Beginning Cash and Investment Balance
Ending Cash and Investment Balance
$
11,339,809
(1,800,013)
(5,511,815)
554,552
8,203,566
12,786,099
$
16. Other Disclosures
A. Deficit Fund Balance
The Harborside Plaza fund had a deficit fund balance at 12/31/07 of ($213,265), The negative fund balance was due to
expenditures for the multi-year project exceeding expectations in 2007, A $150,000 short term interfund loan from the
General Government Capital Improvement fund was authorized by the City Council in December 2007 which resulted in
a positive cash balance at year end but expenditure accruals during the final period caused the fund balance to be
City of Bremerlon / 62
negative. The 2008 budget includes transfers of $500,000 from the General Government Capital Improvement project
fund which is expected to clear the deficit fund balance.
B. Prior Period Adjustment
The 2007 Statement of Activities includes a total of $2,058,823 of prior period adjustments. The prior period adjustment
of$1,708,823 for governmental activities is related to land conveyed to the City of Bremerton by the Washington State
Department of Transportation from 1999 through 2005. The land was purchased by the State for use in the widening of
State Route 304. The land acquired in excess of right of way requirements was subsequently deeded to the City. The
beginning balance of Governmental capital assets in Note 6 has been adjusted to reflect this change. The business
activities on the government wide statement of activities as well as the proprietary funds Statement of Revenues,
Expenses and Changes in Fund Net Assets reflect a prior period adjustment of $350,000 as a result of an understatement
of revenues that occurred during 2005. A receivable for the proportional share of construction costs of the West 650
Water Facilities Improvements by the Washington State Department of the Military was not reported as an increase in
capital contributions resulting in an understatement of net income.
COMBINING BALANCE SHEET
Nonmajor Governmental Funds
December 31,2007
Page I 00
Special
Revenue
Contingency Civic Parking Community Naval Abatement Police Special
Street Reserve Improvement System Block Grant Museum Revolving, Projects
ASSETS $ $ $ $
Cash & Investments 115,362 1,579,199 141,384 170,452 276,968 183,658 514,353
Deposits with Fiscal Agent
External Receivables 123,450 22,940 11,584 21,315
Due from Other Funds 4,700 2,000
Due from Other Governments 244,004
Inventories 28,617
Notes/Contracts - Deferred 917,936
T ota] Assets 272,129 1,579,199 164,324 182,036 1,462,223 183,658 514,353
LIABILITIES AND FUND BALANCES
Liabilities:
Claims/Contracts payable 71,371 8,434 23,430 40,201 2,679
Matured Long Term Obligations
Due to Other Funds
Due to Other Governments 146
Employee Wages Payable 7,538 4,843
Other Current Liabilities
Deferred revenues 917,935
Total Liabilities 79,055 8,434 23,430 962,979 2,679
Fund Balances:
Reserved for:
Inventories 28,617 ()
Paths and Trails 52,460 ~
Equipment Replacement 0
....
Unreserved, reported in: to
Debt Service Funds Cil
:3
Special revenue funds III ,997 1,579,199 155,890 158,606 499,244 183,658 511,674 CD
Capital projects funds 8-
::J
Total Fund Balances $ 193,074 $ 1,579,199 $ 155,890 $ 158,606 499,244 183,658 511,674 "-
Total Liabilities and Fund Balances 272,129 1,579,199 164,324 182,036 1,462,223 183,658 514,353 Ol
W
()
COMBINING BALANCE SHEET ~
0
Nonmajor Governmental Funds ....
CO
December 31, 2007 (iJ
Page 2 of3 :3
CD
Special Debt ~
Revenue Service :J
"'-
0>
"'"
Gift & Trial One Percent Conference Ctr Bond
BKAT Donation Improvement For Art Operations Total Fund
ASSETS $
Cash & Investments 192,544 73,328 25,371 76,922 217,647 3,567,188 544,232
Deposits with Fiscal Agent 30,000
External Receivables 58,321 165,037 402,647 29,726
Due from Other Funds 6,700
Due from Other Governments 244,004
Inventories 28,060 56,677
Notes/Contracts - Deferred 917,936
Total Assets 250,865 73,328 25,371 76,922 410,744 5,195,152 603,958
LIABILITIES AND FUND BALANCES
Liabilities:
Claims/Contracts payable 21,838 4,467 3,339 68,762 244,521 304
Matured Long Term Obligations 30,000
Due to Other Funds 374 374
Due to Other Governments 18,210 18,356
Employee Wages Payable 6,560 74,393 93,334
Other Current Liabilities 84,907 84,907
Deferred revenues 917,935 25,547
Total Liabilities 28,398 4,467 3,339 246,646 1,359,427 55,851
Fund Balances:
Reserved for:
Inventories 28,060 56,677
Paths and Trails 52,460
Equipment Replacement 67,298 67,298
Unreserved, reported in:
Debt Service Funds 548,107
Special revenue funds 222,467 68,861 25,371 73,583 68,740 3,659,290
Capital projects funds
T ota] Fund Balances 222,467 68,861 25,371 73,583 164,098 3,835,725 $ 548,107
Total Liabilities and Fund Balances 250,865 73,328 25,371 76,922 410,744 5,195,152 603,958
COMBINING BALANCE SHEET
Nonmajor Governmental Funds
December 31, 2007
Page 3 00
Capital
Projects Total
Nonmajor
Public Safety Harborside Harborside General GoYl PedestrianlBTC Parks Boardwalk Governmental
Project Park Plaza Cap Impr Access Construction Project Total Funds
ASSETS $
Cash & Investments 1,552,408 149,708 120,660 224,812 47,576 695,863 465,537 3,256,564 7,367,984
Deposits with Fiscal Agent 30,000
External Receivables 20,103 20,103 452,476
Due from Other Funds 102,300 150,000 252,300 259,000
Due from Other Governments 44,382 15,211 4,874 5,671 70,138 314,142
Inventories 56,677
Notes/Contracts - Deferred 917,936
Total Assets 1,552,408 296,390 120,660 410,126 52,450 701,534 465,537 3,599, I 05 9,398,215
LIABILITIES AND FUND BALANCH
Liabilities:
Claims/Contracts payable 1,986 269,992 79,771 3,501 1,584 47,806 161,071 565,711 810,536
Matured Long Term Obligations 30,000
Due to Other Funds 26,398 252,30 I 11,990 113,170 403,859 404,233
Due to Other Governments 996 996 19,352
Employee Wages Payable 548 1,853 2,401 95,735
Other Current Liabilities 84,907
Deferred revenues 943,482
Total Liabilities 2,534 296,390 333,925 15,491 1,584 161,972 161,071 972,967 2,388,245
Fund Balances:
Reserved for:
Inventories 56,677
Paths and Trails 52,460
Equipment Replacement 67,298 ()
Unreserved, reported in: ~
0
Debt Service Funds 548,107 .."
OJ
Special revenue funds 3,659,290 Ci3
Capital projects funds 1,549,874 (213,265) 394,635 50,866 539,562 304,466 2,626,138 2,626,138 :3
Total Fund Balances (213,265) 394,635 50,866 539,562 304,466 2,626,138 CD
1,549,874 7,009,970 S-
Total Liabilities and Fund Balances 1,552,408 296,390 120,660 410,126 52,450 701,534 465,537 3,599,105 9,398,215 :J
........
Q)
01
()
COMBINING STATEMENT OF REVENUES, EXPENDITURES ~
0
AND CHANGES IN FUND BALANCES ......
OJ
NONMAJOR GOVERNMENTAL FUNDS Ci'!
For the Year Ended December 31, 2007 :3
Page I of3 (I)
~
Special Revenue ::J
.......
0>
Contingency Civic Parking Community Naval Abatement Police Special 0>
Street Reserve Improvement System Block Grant Museum Revolving Projects
REVENUES
Tax.es $ 293,874 $ 331,093 $ $ $
Licenses and Permits
Intergovernmental 610,671 1,101,056
Charges for senrices 441,456 1,940 165,849 22,836
Fines and forfeits 342,060 38,422
Miscellaneous 348,110 66,103 12,141 1,054,948 18,929 446 8,792 195,323
Total Revenues 1,694,111 66,103 343,234 1,398,948 1,285,834 446 31,628 233,745
EXPENDITURES
Current
General Government 454,376
Public Safety 89,403
Utilities and Environment
Transportation 2,695,630 556,948
Economic environment 67,005 1,179,160 3,045
Culture and recreation 36,686 78,108 36,101
Debt Service:
Principal
Interest and other debt issue costs 1,870 3,390
Capital 92,443 17,024 24,564
Total Expenditures 3,281,005 148,503 573,972 1,179,160 36,101 3,045 113,967
Excess (deficiency) of revenues (1,586,894) 66,103 194,731 824,976 106,674 (35,655) 28,583 119,778
over expenditures
OTHER FINANCING SOURCES (USES)
Fixed Asset Donations & Disposal 1,043,762 15,060
Transfers in 1,509,059 425,000 18,000 35,655 17,500
Transfers out (1,609,773) (220,345) (1,356,413) (138,512) (50,000)
Total other financing sources and uses 1,509,059 (566,011) (220,345) (916,353) (120,512) 35,655 17,500 (50,000)
OTHER CHANGES IN FUND BALANCE
Change in Reserves for Inventory (4,953)
Net change in fund balances (82,788) (499,908) (25,614) (91,377) (13,838) 46,083 69,778
Fund balances-beginning 275,862 2,079,107 181,504 249,983 513,082 137,575 441,896
Fund balances-ending $ 193,074 1,579,199 $ 155,890 $ 158,606 $ 499,244 183,658 511,674
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2007
Page 2 of3
Debt
Special Revenue Service
Gift & Trial One Percent Conference Ctr Bond
BKAT Donation Improvement For Art Operations Total Fund
REVENUES
Taxes $ 139,866 $ S $ $ 764,833 $ 1,086,175
Licenses and Permits 130,818 130,818
Intergovernmental 17,490 1,729,217
Charges for services 77,475 921 1,303,549 2,014,026
Fines and forfeits 380,482
Miscellaneous 155,826 20,732 671 46,117 4,328 1,932,466 35,253
Total Revenues 503,985 21,653 18,161 46,117 1,307,877 6,951,842 1,121,428
EXPENDITURES
CUrrent
General Government 2,906 457,282
Public Safety 28,153 117,556
Utilities and Environment
Transportation 3,252,578
Economic environment 1,249,210
Culture and recreation 214,011 24,750 268 1,725,282 2,115,206
Dcbt Service:
Principal 500,000 500,000 940,000
Interest and other debt issue costs 5,637 10,897 1,040,111
Capital 38,510 24,179 13,793 210,513
Total Expenditures 252,521 52,903 2,906 24,447 2,244,712 7,913,242 1,980,111
Excess (deficiency) of revenues 251,464 (31,250) 15,255 21,670 (936,835) (961,400) (858,683 )
over expenditures
OTHER FINANCING SOURCES (USES)
Fixed Asset Donations & Disposal 1,058,822
Transfers in 905,000 2,910,214 988,754
Transfers out (20,000) (3,395,043) ()
Total other financing sources and uses (20,000) 905,000 573,993 988,754 ~
OTHER CHANGES IN FUND BALANCE 0
Change in Reserves for Inventory 4,198 (755) .....
Net change in fund balances 231,464 (31,250) 15,255 21,670 (27,637) (388,162) 130,071 OJ
(iJ
Fund balances-beginning (8,997) 100,111 10,116 51,913 191,735 4,223,887 418,036 :3
Fund balances-ending 222,467 68,861 25,371 73,583 164,098 3,835,725 548,107 CD
S
:J
......
0>
'I
()
~
COMBINING STATEMENT OF REVENUES, EXPENDITURES 0
....
to
AND CHANGES IN FUND BALANCES Cil
NONMAJOR GOVERNMENTAL FUNDS :3
For the Year Ended December 31, 2007 CD
Page 3 00 S-
=:3
"'-
Capital Projects Total 0)
Nonmajor CO
Public Safety Harborside Harborside General Govt Pedestrian/BTC Parks Boardwdlk Governmental
Project Park Plaza Cap Impr Access Construction Project Total Funds
REVENUES
Taxes $ $ $ 1,176,732 $ $ $ 1,176,732 3,027,740
Licenses and Permits 130,818
Intergovernmental 1,280,299 183,625 168,511 583,105 19,927 2,235,467 3,964,684
Charges for services 2,014,026
Fines and forfeits 380,482
Miscellaneous 69,406 12,530 705 77,312 3,342 64,281 44,062 271,638 2,239,357
Total Revenues 69,406 1,292,829 184,330 1,422,555 586,447 84,208 44,062 3,683,837 11,757,107
EXPENDITURES
Current
General Government 238,404 238,404 695,686
Public Safety 58,564 58,564 176,120
Utilities and Enviromnent 164,020 164,020 164,020
Transportation 433,368 433,368 3,685,946
Economic enviromnent 34,728 34,728 1,283,938
Culture and recreation 113,317 113,317 2,228,523
Debt Service:
Principal 1,440,000
Interest and other debt issue costs 7,710 7,710 1,058,718
Capital 721,760 2,956,005 397,595 49,723 144,456 545,121 903,491 5,718,151 5,928,664
Total Expenditures 1,018,728 2,956,005 397,595 248,471 577,824" 666,148 903,491 6,768,262 16,661,615
Excess (deficiency) of revenues (949,322) (1,663,176) (213,265) 1,174,084 8,623 (581,940) (859,429) (3,084,425) (4,904,508)
over expenditures
OTHER FINANCING SOURCES (USES)
Fixed Asset Donations & Disposal 1,058,822
Transfers in 500,000 305,651 337,070 894,470 2,037,191 5,936,159
Transfers out (28,075) (2,372,576) (2,400,651 ) (5,795,694)
Total other financing sources and uses 471,925 305,651 (2,372,576) 337,070 894,470 (363,460) 1,199,287
OTHER CHANGES IN FUND BALANCE
Change in Reserves for Inventory (755)
Net change in fund balances (477,397) (1,357,525) (213,265) (1,198,492) 8,623 (244,870) 35,041 (3,447,885) (3,705,976)
Fund balances-beginning 2,027,271 1,357,525 1,593,127 42,243 784,432 269,425 6,074,023 10,715,946
Fund balances-ending 1,549,874 (213,265) 394,635 50,866 539,562 304,466 2,626,138 7,009,970
City of Bremerton / 69
STREET SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales
Other 360,000 360,000 293,874 (66,126)
Licenses and Permits
Intergovernmental 610,503 610,503 610,671 168
Charges for Services 344,300 344,300 441,456 97,156
Fines and Forfeitures
Miscellaneous 323,500 323,500 348,110 24,610
Total Revenues 1,638,303 1,638,303 1,694, III 55,808
EXPENDITURES
Current
General government 492,150 492,150 454,376 37,774
Public Safety
Utilities and Environment
Transportation 2,404,30 I 2,571,888 2,695,630 (123,742)
Economic Environment
Mental/Physical Health
Culture and recreaction 19,900 19,900 36,686 (16,786)
Debt Service Principal 46,763 46,763 46,762 I
Interest and Other Debt Svc Costs 1,871 1,871 1,870 I
Capital 157,101 204,101 92,443 111,658
Total Expenditures 3,122,086 3,336,673 3,327,767 8,906
Excess (deficiency) of revenues
over expenditures (1,483,783) (1,698,370) (1,633,656) 64,714
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in 1,381,634 1,506,634 1,509,059 2,425
Transfers out
Total Other Financing Source (uses) 1,381,634 1,506,634 1,509,059 2,425
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory (4,953) (4,953)
Net change in fund balances (102,149) (191,736) (124,597) 67,139
Fund Balances-beginning 134,705 289,054 322,624 33,570
Fund Balances-ending $ 32,556 $ 97,318 $ 193,074 $ 95,756
City of Bremerton / 70
CONTINGENCY RESERVE SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31,2007
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales
Other
Licenses and Pennits
Intergovernmental
Charges for Services
Fines and Forfeitures
Miscellaneous 50,000 50,000 66,103 16,103
Total Revenues 50,000 50,000 66,103 16,103
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation
Economic Environment
Mental/Physical Health
Culture and recreaction
Debt Service Principal
Interest and Other Debt Svc Costs
Capital
Total Expenditures
Excess (deficiency) of revenues
over expenditures 50,000 50,000 66,103 16,103
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal 475,000 927,650 1,043,762 116,112
Transfers in
Transfers out (1,760,124) (1,959,774) (1,609,773) 350,001
Total Other Financing Source (uses) (1,285,124) (1,032,124) (566,011) 466,113
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances (1,235,124) (982,124) (499,908) 482,216
Fund Balances-beginning 2,265,846 2,079,107 2,079,107
Fund Balances-ending $ 1,030,722 $ 1,096,983 $ 1,579,199 $ 482,216
..
City of Bremerton / 71
CIVIC IMPROVEMENT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
l Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales 300,000 300,000 331,093 31,093
Other
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Miscellaneous 500 500 12,141 11,641
Total Revenues 300,500 300,500 343,234 42,734
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation
Economic Environment 67,005 67,005 67,005
MentaVPhysical Health
Culture and recreaction 78,109 78,109 78,108
Debt Service Principal 56,496 56,496 56,496
Interest and Other Debt Svc Costs 3,390 3,390 3,390
Capital
Total Expenditures 205,000 205,000 204,999
Excess (deficiency) of revenues
over expenditures 95,500 95,500 138,235 42,735
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in
Transfers out (180,000) (230,000) (220,345) 9,655
Total Other Financing Source (uses) (180,000) (230,000) (220,345) 9,655
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances (84,500) (134,500) (82,110) 52,390
Fund Balances-beginning 95,171 238,000 238,000
Fund Balances-ending $ 10,671 $ 103,500 $ 155,890 $ 52,390
City of Bremerton / 72
City of Bremerton / 73
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales
Other
Licenses and Permits
Intergovernmental 1,166,356 1,166,356 1,101,056 (65,300)
Charges for Services 150,000 150,000 165,849 15,849
Fines and Forfeitures
Miscellaneous 5,000 5,000 18,929 13,929
Total Revenues 1,321,356 1,321,356 1,285,834 (35,522)
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation
Economic Environment 1,694,056 1,634,138 1,179,160 454,978
Mental/Physical Health
Culture and recreaction
Debt Service Principal
Interest and Other Debt Svc Costs
Capital
Total Expenditures 1,694,056 1,634,138 1,179,160 454,978
Excess (deficiency) of revenues
over expenditures (372,700) (312,782) 106,674 419,456
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in 18,000 18,000
Transfers out (168,300) (218,300) (138,512) 79,788
Total Other Financing Source (uses) (168,300) (200,300) (120,512) 79,788
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances (541,000) (513,082) (13,838) 499,244
Fund Balances-beginning 541,000 513,082 513,082
Fund Balances-ending $ - $ - $ 499,244 $ 499,244
City of Bremerlon / 74
NAVAL MUSEUM SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales
Other
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Miscellaneous 446 446
Total Revenues 446 446
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation
Economic Environment
MentaVPhysical Health
Culture and recreaction 41,000 47,000 36,101 10,899
Debt Service Principal
Interest and Other Debt Svc Costs
Capital
Total Expenditures 41,000 47,000 36,101 10,899
Excess (deficiency) of revenues
over expenditures (41,000) (47,000) (35,655) 11,345
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in 41,000 47,000 35,655 (11,345)
Transfers out
Total Other Financing Source (uses) 41,000 47,000 35,655 (11,345)
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances
Fund Balances-beginning
Fund Balances-ending $ - $ - $ - $
City of Bremerlon / 75
City of Bremerlon / 76
POLICE SPECIAL PROJECTS SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales
Other
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures 35,000 35,000 38,422 3,422
Miscellaneous 90,000 90,000 195,323 105,323
Total Revenues 125,000 125,000 233,745 108,745
EXPENDITURES
Current
General government
Public Safety 142,000 142,000 89,403 52,597
Utilities and Environment
Transportation
Economic Environment
Mental/Physical Health
Culture and recreaction
Debt Service Principal
Interest and Other Debt Svc Costs
Capital 45,000 45,000 24,564 20,436
Total Expenditures 187,000 187,000 113,967 73,033
Excess (deficiency) of revenues
over expenditures (62,000) (62,000) 119,778 181,778
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in
Transfers out (50,000) (50,000) (50,000)
Total Other Financing Source (uses) (50,000) (50,000) (50,000)
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances (112,000) (112,000) 69,778 181,778
Fund Balances-beginning 122,637 441,896 441,896
Fund Balances-ending $ 10,637 $ 329,896 $ 511,674 $ 181,778
City of Bremerton / 77
City of Bremerlon / 78
GIFT AND DONATION SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ $ $ $
Sales
Other
Licenses and Permits
Intergovernmental
Charges for Services 550 550 921 371
Fines and Forfeitures
Miscellaneous 24,700 34,300 20,732 (13,568)
Total Revenues 25,250 34,850 21,653 (13,197)
EXPENDITURES
Current
General government
Public Safety 29,424 29,424 28,153 1,271
Utilities and Environment
Transportation
Economic Environment
Mental/Physical Health
Culture and recreaction 13,000 22,600 24,750 (2,150)
Debt Service Principal
Interest and Other Debt Svc Costs
Capital
Total Expenditures 42,424 52,024 52,903 (879)
Excess (deficiency) of revenues
over expenditures (17,174) (17,174) (31,250) (14,076)
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in
Transfers out
Total Other Financing Source (uses)
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances (17,174) (17,174) (31,250) (14,076)
Fund Balances-beginning 44,448 100,111 100,111
Fund Balances-ending $ 27,274 $ 82,937 $ 68,861 $ (14,076)
City of Bremerton / 79
City of Bremerlon / 80
ONE PERCENT FOR ARTS SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales
Other
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Miscellaneous 70,131 46,117 (24,014)
Total Revenues 70,131 46,117 (24,014)
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation
Economic Environment
MentaUPhysical Health
Culture and recreaction 1,000 268 732
Debt Service Principal
Interest and Other Debt Svc Costs
Capital 71,000 70,000 24,179 45,821
Total Expenditures 71,000 71,000 24,447 46,553
Excess (deficiency) of revenues
over expenditures (71,000) (869) 21,670 22,539
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in 39,970
Transfers out
Total Other Financing Source (uses) 39,970
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances (31,030) (869) 21,670 22,539
Fund Balances-beginning 32,118 51,913 51,913
Fund Balances-ending $ 1,088 $ 51,044 $ 73,583 $ 22,539
City of Bremerton / 81
CONFERENCE CENTER OPERATIONS SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ $ $ $
Sales
Other
Licenses and Permits
Intergovernmental
Charges for Services 1,226,382 1,226,382 1,303,549 77,167
Fines and Forfeitures
Miscellaneous 53,000 53,000 4,328 (48,672)
Total Revenues 1,279,382 1,279,382 1,307,877 28,495
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation
Economic Environment
Mental/Physical Health
Culture and recreaction 1,522,400 1,647,400 1,725,282 (77,882)
Debt Service Principal 500,000 500,000 500,000
Interest and Other Debt Svc Costs 6,250 6,250 5,637 613
Capital 45,000 45,000 13,793 31,207
Total Expenditures 2,073,650 2,198,650 2,244,712 (46,062)
Excess (deficiency) of revenues
over expenditures (794,268) (919,268) (936,835) (17,567)
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in 780,000 905,000 905,000
Transfers out
Total Other Financing Source (uses) 780,000 905,000 905,000
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory 4,198 4,198
Net change in fund balances (14,268) (14,268) (31,835) (17,567)
Fund Balances-beginning 73,885 191,735 191,735
Fund Balances-ending $ 59,617 $ 177 ,467 $ 164,098 $ (13,369)
City of Bremerton / 82
BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ 1,050,810 $ 1,050,810 $ 1,086,175 $ 35,365
Sales
Other
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Miscellaneous 15,000 15,000 35,253 20,253
Total Revenues 1,065,810 1,065,810 1,121,428 55,618
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation
Economic Environment
Mental/Physical Health
Culture and recreaction
Debt Service Principal 815,000 940,000 940,000
Interest and Other Debt Svc Costs 1,102,750 1,102,750 1,040,111 62,639
Capital
Total Expenditures 1,917,750 2,042,750 1,980,111 62,639
Excess (deficiency) of revenues
over expenditures (851,940) (976,940) (858,683) 118,257
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in 851,940 976,940 988,754 11,814
Transfers out \
Payments to Ref Debt Escrow Agent
Total Other Financing Source (uses) 851,940 976,940 988,754 11,814
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances 130,071 130,071
Fund Balances-beginning 382,969 418,036 418,036
Fund Balances-ending $ 382,969 $ 418,036 $ 548,107 $ 130,071
J
City af Bremertan /83
PUBLIC SAFETY CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Original
Budget
2007
REVENUES
Taxes
Property
Sales
Other
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Miscellaneous
Total Revenues
$
25,000
25,000
Final
Budget
2007
- $
50,000
50,000
Actual
2007
- $
69,406
69,406
Variance with
Final Budget
Positive
(Negative)
- $
19,406
19,406
City of Bremerlon / 84
HARBORSIDE PARK CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
REVENUES
Taxes
Property
Sales
Other
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Miscellaneous
Total Revenues
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation
Economic Environment
Mental/Physical Health
Culture and recreaction
Debt Service Principal
Interest and Other Debt Svc Costs
Capital
Total Expenditures
Excess ( deficiency) of revenues
over expenditures
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in
Transfers out
Total Other Financing Source (uses)
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances
Fund Balances-beginning
Fund Balances-ending $
120,000 (120,000)
275,000 305,651 305,651
(3,100)
271,900 425,651 305,651 (120,000)
(38,168) (1,357,525) (1,357,525)
39,018 1,357,525 1,357,525
850 $ - $ - $
Original
Budget
2007
Final
Budget
2007
Actual
2007
$
- $ - $
1,205,170
1,280,299
12,000
1,217,170
12,530
1,292,829
310,068
310,068
2,956,005
2,956,005
3,000,346
3,000,346
(310,068)
(1,783,176)
(1,663,176)
Variance with
Final Budget
Positive
(Negative)
- $
75,129
530
75,659
44,341
44,341
120,000
City of Bremerton / 85
HARBORS IDE PLAZA & COMMONS CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales
Other
Licenses and Permits
Intergovernmental 750,000 183,625 (566,375)
Charges for Services
Fines and Forfeitures
Miscellaneous 705 705
Non Revenues 150,000 150,000
Total Revenues 750,000 334,330 (565,670)
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation
Economic Environment
Mental/Physical Health
Culture and recreaction
Debt Service Principal
Interest and Other Debt Svc Costs
Capital /
750,000 397,595 352,405
Total Expenditures 750,000 397,595 352,405
Excess (deficiency) of revenues
over expenditures (63,265) (63,265)
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in
Transfers out (3,100)
Total Other Financing Source (uses) (3,100)
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances (3,100) (63,265) (63,265)
Fund Balances-beginning
Fund Balances-ending $ (3,100) $ - $ (63,265) $ (63,265)
City of Bremerton / 86
GENERAL GOVERNMENT IMPROVEMENTS CAP IT AL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales
Other 1,400,000 1,400,000 1,176,732 (223,268)
Licenses and Permits
Intergovernmental 200,000 387,450 168,511 (218,939)
Charges for Services
Fines and Forfeitures
Miscellaneous 40,000 40,000 77,312 37,312
Total Revenues 1,640,000 1,827,450 1,422,555 (404,895)
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment 210,450 164,020 46,430
Transportation
Economic Environment 135,000 34,728 100,272
MentallPhysical Health
Culture and recreaction
Debt Service Principal
Interest and Other Debt Svc Costs
N onexpenditures 150,000 (150,000)
Capital 396,930 436,000 49,723 386,277
Total Expenditures 396,930 781,450 398,471 382,979
Excess (deficiency) of revenues
over expenditures 1,243,070 1,046,000 1,024,084 (21,916)
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in
Transfers out (2,302,070) (2,481,800) (2,372,576) 109,224
Total Other Financing Source (uses) (2,302,070) (2,481,800) (2,372,576) 109,224
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances (1,059,000) (1,435,800) (1,348,492) 87,308
Fund Balances-beginning 1,063,818 1,593,127 1,593,127
Fund Balances-ending $ 4,818 $ 157,327 $ 244,635 $ 87,308
City of Bremerton / 87
PEDESTRIAN/BTC ACCESS CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales
Other
Licenses and Permits
Intergovernmental 156,000 581,000 583,105 2,105
Charges for Services
Fines and Forfeitures
Miscellaneous 3,342 3,342
Total Revenues 156,000 581,000 586,447 5,447
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation 433,368 (433,368)
Economic Environment
Mental/Physical Health
Culture and recreaction
Debt SerVice Principal
Interest and Other Debt Svc Costs
Capital 156,000 581,000 144,456 436,544
Total Expenditures 156,000 581;000 577,824 3,176
Excess (deficiency) of revenues
over expenditures 8,623 8,623
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in
Transfers out
Total Other Financing Source (uses)
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances 8,623 8,623
Fund Balances-beginning 42,243 42,243
Fund Balances-ending $ - $ 42,243 $ 50,866 $ 8,623
City of Bremerton / 88
City of Bremerton / 89
BOARDWALK PROJECT FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended December 31, 2007
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2007 2007 2007 (Negative)
REVENUES
Taxes
Property $ - $ - $ - $
Sales
Other
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Miscellaneous 30,000 44,062 14,062
Total Revenues 30,000 44,062 14,062
EXPENDITURES
Current
General government
Public Safety
Utilities and Environment
Transportation
Economic Environment
MentallPhysical Health
Culture and recreaction
Debt Service Principal
Interest and Other Debt Svc Costs
Capital 1,098,900 1,110,000 903,491 206,509
Total Expenditures 1,098,900 1,110,000 903,491 206,509
Excess (deficiency) of revenues
over expenditures (1,098,900) (1,080,000) (859,429) 220,571
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
Fixed Asset Donation and Disposal
Transfers in 894,4 70 894,470 894,470
Transfers out (11,100)
Total Other Financing Source (uses) 883,370 894,470 894,470
OTHER CHANGES IN FUND BALANCE
Changes in reserves for Inventory
Net change in fund balances (215,530) (185,530) 35,041 220,571
Fund Balances-beginning 215,530 269,425 269,425
Fund Balances-ending $ - $ 83,895 $ 304,466 $ 220,571
City of Bremerton /90
COMBINING STATEMENT OF NET ASSETS
OTHER PROPRIETARY FUNDS
December 31, 2007
Business-type Activities
Enterprise Funds
Water/Sewer SW Bremerton Utility
Clearing Sewer Stormwater Debt Reserve Total
ASSETS
Current assets:
Cash & Investments $ 1,030 $ 4,585,172 $ 1,446,784 $ $ 6,032,986
External Receivables 377,674 377,674
Interest Receivable 27,520 8,683 36,203
Due from Other Funds 1,442 1,442
Due from Other Governments
Inventories
Prepayments
Total current assets 1,030 4,612,692 1,834,583 6,448,305
Restricted Assets: 1,129,982 1,129,982
Noncurrent assets:
Special Assessments
Notes and Contracts Receivable
Capital assets net of depreciation 2,217,322 2,217,322
Other Non-current assets
Total noncurrent assets 2,217,322 2,217,322
Total assets $ 1,030 $ 4,612,692 $ 4,051,905 $ 1,129,982 $ 9,795,609
LIABILITIES
Current liabilities:
Claims/Contract payable $ 1,030 $ $ 20,271 $ $ 21,301
Matured Long Term Obligations
Due to Other Funds \ 18,558 18,558
Other Accrued Liabilities 8,600 8,600
Current Portion of Long Term Debt 9,864 9,864
Custodial Accounts
Total current liabilities 1,030 57,293 58,323
Payable from Restricted Assets:
Noncurrent liabilities:
Claims and Judgements Payable
Bonds, Notes and Loans Payable 157,828 157,828
Compensated Absences
Total noncurrent liabilities 157,828 157,828
Total liabilities 1,030 215,121 216,151
NET ASSETS
Invested in capital assets, net
of related debt 2,049,630 2,049,630
Restricted for debt service 1,129,982 1,129,982
Unrestricted 4,612,692 1,787,154 6,399,846
Total net assets $ - $ 4,612,692 $ 3,836,784 $ 1,129,982 $ 9,579,458
City of Bremerton / 91
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
OTHERPROP~ETARYFUNDS
For the Year Ended December 31, 2007
Business-type Activities
Enterprise Funds
SW Bremerton Utility
Stormwater Sewer Debt Reserve Total
Operating revenues:
Charges for services $ 1,810,603 $ $ $ 1,810,603
Interest & Dividend Income
Other Operating Revenue 15,819 15,819
Total operating revenues 1,826,422 1,826,422
Operating expenses:
General Operations 294,856 294,856
Maintenance 730,127 730,127
Customer Service and Marketing 38,975 38,975
General Administration 171,030 171,030
Depreciation and amoritization 41,841 41,841
Property, Excise and B&O Taxes 69,296 69,296
Risk Transfer Payments
Payments to Claimants & Beneficiaries
Other Operating Expenses
Total operating expenses 1,346,125 1,346,125
Operating income (loss) 480,297 480,297
Nonoperating revenues (expenses)
Interest and investment revenue 70,994 156,250 41,975 269,219
Interest expense (5,958) (5,958)
Gain (loss) on Capital Asset Disposal
Other Nonoperating Revenue 39 39
Total nonoperating revenues (expenses) 65,075 156,250 41,975 263,300
Income (loss) before contributions and transfers 545,372 156,250 41,975 743,597
Capital contributions 506,116 506,116
Transfers in 4,456,442 530,148 4,986,590
Transfers out (253,902) (253,902)
Change in net assets 797,586 4,612,692 572,123 5,982,401
Total net assets - beginning 3,039,198 557,859 3,597,057
Total net assets - ending $ 3,836,784 $ 4,612,692 $ 1,129,982 $ 9,579,458
City of Bremerton / 92
COMBINING STATEMENT OF CASH FLOWS
OTHERPROP~ETARYFUNDS
For the Year Ended December 31, 2007
Page I of2
Business-type Activities
Enterprise Funds
Water/Sewer SW Brem Utility
Clearing Stormwater Sewer Debt Reserve Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ $ 1,793,458 $ $ $ 1,793,458
Cash payments to suppliers (581,417) (581,417)
Cash payments to employees (622,092) (622,092)
Purchase of Insurance (20,433) (20,433)
Other operating receipts and payments (66,091) (66,091)
Net cash provided by operating activities 503,425 503,425
CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES
Transfers in 571,524 571,524
Transfers out (153,902) (153,902)
Other nonoperating revenues/expenses 39 39
Receipt of Utility Deposits 32,000 32,000
Return of Utility Deposits (35,225) (35,225)
Repayment of interfund loans
Net cash provided (used) by noncapital
financing activities (3,225) (153,863) 571,524 414,436
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (28,340) (28,340)
Proceeds from sale of other assets
Capital contributions 121,847 121,847
Transfer in for asset construction 4,456,441 4,456,441
Transfer out for asset construction (100,000) ( 100,000)
Collections on Notes Receivable
Loan/grant proceeds
Principal paid on revenue bonds
Principal paid on other debt (9,864) (9,864)
Interest paid on revenue bonds and other debt (6,156) (6,156)
Net cash provided (used) for capital and related
financing activities (22,513) 4,456,441 4,433,928
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from repayment of loans
Proceeds from special assessments
Interest on loans and investments 67,472 128,731 37,755 233,958
Net cash provided in investing activi~ies 67,472 128,731 37,755 233,958
Net increase (decrease) in cash and cash equivalents (3,225) 394,521 4,585,172 609,279 5,585,747
Cash and cash equivalents - beginning of year 4,255 1,052,263 513,962 1,570,480
Cash and cash equivalents - end of year 1,030 1,446,784 4,585,172 1,123,241 7,156,227
City of Bremerlon / 93
COMBINING STATEMENT OF CASH FLOWS
OTHER PROPRIETARY FUNDS
For the Year Ended December 31, 2007
Page 2 of2
Business-type Activities
, "Entei'!lrise F.unds
Cash at the end of the year consists of:
Operating fund cash
Restricted cash
Total cash at end of year
Water/Sewer SW Brem Utility
Clearing, ,Stonnwater , Sewer.. Debt Reserve "" Total
1,030 1,446,784 4,585,172 6,032,986
.." 1,123,241 1,123,241
$ 1;030' $ 1,446,784."" $ ,4;585, f72 $ 1,'123,241' $ 7J56;227 ,
Reconciliation of operating income to net cash provided by operating activities:
Operating income (loss) $ $ 480,297 $ $ $ 480,297
Adjustments to reconcile operating income
to net cash provided by Operating
activities:
Depreciation 41,841 41,841
Transfers in cash flow from operating activities
Operating grant in cash flow from nonfinancing actvty
Decrease (increase) in receivables (32,963) (32,963)
Decrease (increase) in due from other funds/govt
Decrease (increase) in prepaid expenses
Decrease (increase) in inventory
Increase (decrease) in accounts payable 13,261 13,261
Increase (decrease) in due to other funds/govt 989 989
Increase (decrease) in employee wages payable
Increase (decrease) in employee vacations payable
Increase (decrease) in customer deposits payable
Increase (decrease) in deferred revenues
Net cash provided by operating activities $ .. .. $ 503,425 ,$ $ $ , 503,425 '
Noncash investing, capital and financial activities;
Developers contributed infrastructure $ $ 382,950 $ $ $ 382,950
City of Bremerton /94
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
December 31, 2007
Business-type Activities
Enterprise Funds
Risk Equipment Information
Management Rental Technology Total
ASSETS
Current assets:
Cash & Investments $ 1,026,609 $ 4,476,142 $ 285,786 $ 5,788,537
External Receivables 14,503 337 14,840
Interest Receivable 6,762 26,865 1,715 35,342
Due from Other Funds 1,363,544 1,363,544
Due from Other Governments
Inventories 97,562 97,562
Prepayments 70,023 70,023
Total current assets 1,103,394 5,978,616 287,838 7,369,848
Restricted Assets: 100,000 100,000
Noncurrent assets:
Special Assessments 4,516 4,516
Notes and Contracts Receivable
Capital assets net of depreciation 4,009,165 112,095 4,121,260
Other Non-current assets
Total noncurrent assets 4,013,681 112,095 4,125,776
Total assets $ 1,203,394 $ 9,992,297 $ 399,933 $ 11,595,624
LIABILITIES
Current liabilities:
Claims/Contract payable $ 509,157 $ 90,539 $ 12,264 $ 611,960
Matured Long Term Obligations
Due to Other Funds
Other Accrued Liabilities 6,900 18,804 16,792 42,496
Current Portion of Long Term Debt
Custodial Accounts
Total current liabilities 516,057 109,343 29,056 654,456
Payable from Restricted Assets:
Noncurrent liabilities:
Claims and Judgements Payable 417,047 417,047
Bonds, Notes and Loans Payable
Compensated Absences 15,724 19,851 35,575
Total noncurrent liabilities 417,047 15,724 19,851 452,622
Total liabilities 933,104 125,067 48,907 1,107,078
NET ASSETS
Invested in capital assets, net
of related debt 4,009,165 112,095 4,121,260
Restricted for debt service
Unrestricted 270,290 5,858,065 238,931 6,367,286
Total net assets $ 270,290 $ 9,867,230 $ 351,026 $ 10,488,546
City of Bremerton / 95
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
For the Year Ended December 31,2007
Governmental Activities
Internal Service Funds
Risk Equipment Information
Management Rental Technology Total
Operating revenues:
Charges for services $ 1,190,734 $ 1,667,856 $ 843,153 $ 3,701,743
Interest & Dividend Income 71,630 281,556 353,186
Other Operating Revenue 941,724 941,724
Total operating revenues 1,262,364 2,891,136 843,153 4,996,653
Operating expenses:
General Operations 1,702,559 870,656 2,573,215
Maintenance
Customer Service and Marketing
General Administration 234,548 234,548
Depreciation and amoritization 684,077 38,338 722,415
Property, Excise and B&O Taxes
Risk Transfer Payments 417,913 417,913
Payments to Claimants & Beneficiaries 338,783 338,783
Other Operating Expenses 56,342 56,342
Total operating expenses 1,047,586 2,386,636 908,994 4,343,216
Operating income (loss) 214,778 504,500 (65,841) 653,437
Nonoperating revenues (expenses)
Interest and investment revenue 13,975 13,975
Interest expense
Gain (loss) on Capital Asset Disposal (22,877) (22,877)
Other Nonoperating Revenue 19,118 2,861 21,979
Total nonoperating revenues (expenses) (3,759) 16,836 13,077
Income (loss) before contributions and transfers 214,778 500,741 (49,005) 666,514
Capital contributions
Transfers in 128,075 128,075
Transfers out (48,634) (48,634)
Change in net assets 214,778 580,182 (49,005) 745,955
Total net assets - beginning 55,512 9,287,048 400,031 9,742,591
Total net assets - ending $ 270,290 $ 9,867,230 $ 351,026 $ 10,488,546
City of Bremerton / 96
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2007
Page 1 of2
Business-type Activities
Enterprise Funds
Risk Equipment Information
Management Rental Technology
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 1,190,734 $ 1,668,982 $ 843,153 $
Interest on Investments 71,795
Cash payments to suppliers (109,799) (1,240,749) (466,715)
Cash payments to employees (182,026) (498,019) (457,096)
Purchase of Insurance (455,968)
Payment for Insurance Claims (800,382)
Other operating receipts and payments 1,221,121
Net cash provided (used) by operating activities (285,646) 1,151,335 (80,658)
Total
3,702,869
71,795
(1,817,263)
(1,137,141)
(455,968)
(800,382)
1,221,121
785,031
CASH FLOWS FROM NONCAPIT AL FINANCING ACTIVITIES
Transfers in
Transfers out
Other nonoperating revenues/expenses
Receipt of Utility Deposits
Return of Utility Deposits
Repayment of interfund loans
Net cash provided by noncapital
financing activities
19,118
2,861
21,979
19,118
2,861
21,979
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets
Proceeds from sale of other assets
Capital contributions
Transfer in for asset construction
Transfer out for asset construction
Collections on Notes Receivable
Loan/grant proceeds
Principal paid on revenue bonds
Principal paid on other debt
Interest paid on revenue bonds and other debt
Net cash used for capital and related
financing activities
(514,136)
18,130
(514,136)
18,130
128,075
(48,634)
128,075
(48,634)
(416,565) (416,565)
258,707 258,707
13,792 13,792
13,975 13,975
272,499 13,975 286,474
(285,646) 1,026,387 (63,822) 676,919
1,412,255 3,449,755 349,608 5,211,618
1,126,609 4,476,142 285,786 5,888,537
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from repayment of loans
Proceeds from special assessments
Interest on loans and investments
Net cash provided in investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning of year
Cash and cash equivalents - end of year
City of Bremerton /97
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended December 31, 2007
Page 2 of2
Business-type Activities
, Ent<:;rp?,s,e funds,
Cash at the end of the year consists of:
Operating fund cash
Restricted cash
Total cash at end of year
Risk Equipment Infonnation
Mapllgemen~ ,ReptaL " Techn,ology TQt;tl "
1,026,609 4,476,142 285,786 5,788,537
100,OQO , 100,000"
$ '1) 26,609 $ 4;476;141',' $ , 285,78t; , $ ,5,888~537
Reconciliation of operating income to net cash provided by operating activities:
Operating income (loss) $ 214,778 $ 504,500 $ (65,841) $ 653,437
Adjustments to reconcile operating income
to net cash provided by Operating
activities:
Depreciation 684,077 38,338 722,415
Transfers in cash flow from operating activities
Operating grant in cash flow from nonfinancing actvty
Decrease (increase) in receivables 165 (2,421) (337) (2,593)
Decrease (increase) in due from other funds/govt 1,126 1,126
Decrease (increase) in prepaid expenses (38,055) (38,055)
Decrease (increase) in inventory (15,425) (15,425)
Increase (decrease) in accounts payable (463,506) (27,521) (64,474) (555,501)
Increase (decrease) in due to other funds/govt (1,378) (1,378)
Increase (decrease) in employee wages payable 972 3,833 3,234 8,039
Increase (decrease) in employee vacations payable 3,166 9,800 12,966
Increase (decrease) in customer deposits payable
Increase (decrease) in deferred revenues
Net cash provided by operating activities $ , '. (285,6~p) $ ',1,ls1,j),5, , $ (80~~58) $ 785,O~1 ",
Noncash investing, capital and financial activities;
Developers contributed infrastructure $ - $ - $ - $
City of Bremerton / 98
City of Bremerton / 99
TABLE 1
NET ASSETS BY COMPONENT
Last Four Fiscal Years
2004 2005 2006 2007
Governmental Activities
Invested in capital assets, net of related debt $ 49,164,535 $ 50,329,300 $ 58,958,873 $ 69,497,809
Restricted 11,592,172 13,542,273 7,390,108 3,168,374
Unrestricted 7,067,568 9,323,734 13,822,625 15,362,418
Total governmental activities net assets 67,824,275 73,195,307 80,171,606 88,028,601
Business-type activities
Invested in capital assets, net of related debt 87,788,590 89,467,683 92,069,352 92,747,306
Restricted 514,774 494,194 557,859 1,483,026
Unrestricted 8,265,819 11,074,025 14,575,413 23,225,228
Total business-type activities net assets 96,569,183 101,035,902 107,202,624 117,455,560
Primary Government
Invested in capital assets, net of related debt 136,953,125 139,796,983 151,028,225 162,245,115
Restricted 12,106,946 14,036,467 7,947,967 4,651,400
Unrestricted 15,333,387 20,397,759 28,398,038 38,587,646
Total primary government net assets $ 164,393,458 $ 174,231,209 $ 187,374,230 $ 205,484,161
Total Net Assets
2007
I!II Business-Type 2006
. Governmental
2005
2004
~
&
~
#
~
~
&
'"
~
I
\5
&
~
~
~
&
~
~
~
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I
#
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TABLE 2 ~
CHANGES IN NET ASSETS 0
....
Last Four Fiscal Years to
<il
:3
(I)
Governmental ActivitIes Business~ Type Acttvities Total a-
2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 ::)
Revenues ........
Program Revenues .....
<:::>
Charges for Services 6,408,743 7,069,069 7,898,109 8,239,980 22,026,027 24,568,993 27,738,767 27,611,963 28,434,770 31,638,062 35,636,876 35,851,943 <:::>
Operating Grants and Contributions 1,904,575 1,505,305 964,454 1,350,646 1,904,575 1,505,305 964,454 1,350,646
Capital Grants and Contributions 7,528,350 1,541,002 7,895,086 9,928,551 2,553,628 1,279,260 755,136 4,936,686 10,081,978 2,820,262 8,650,222 14,865,237
General Revenues
Property Taxes 7,005,388 6,991,232 7,329,167 7,920,916 7,005,388 6,991,232 7,329,167 7,920,916
Sales Taxes 6,393,740 6,637,147 7,157,768 7,574,011 58,973 71,500 49,180 41,562 6,452,713 6,708,647 7,206,948 7,615,573
Business Taxes 3,555,740 4,224,596 3,898,778 4,783,087 9,588 11,572 6,672 8,004 3,565,328 4,236,168 3,905,450 4,791,091
Utility Taxes 4,055,931 4,296,416 4,744,302 4,974,578 4,055,931 4,296,416 4,744,302 4,974,578
Other Taxes 2,598,693 2,938,131 3,567,985 2,984,146 2,598,693 2,938,131 3,567,985 2,984,146
Other General Revenues (131,583) 2,172,184 3,088,501 1,831,840 (2,712) 187,537 487,531 913,859 (134,295) 2,359,721 3,576,032 2,745,699
Total Revenues 39,319,577 37,375,082 46,544,150 49,587,755 24,645,504 26,118,862 29,037,286 33,512,074 63,965,081 63,493,944 75,581,436 83,099,829
Expenses
Governmental Activities
General government 3,178,781 3,311,938 4,036,679 3,838,442 3,178,781 3,311,938 4,036,679 3,838,442
Public safety 16,435,104 18,447,613 19,018,326 21,823,943 16,435,104 18,447,613 19,018,326 21,823,943
Physical enVlfonmcnt 183,645 205,404 374,985 183,645 205,404 374,985
TransportatIon 6,442,549 4,453,072 7,731,187 8,936,077 6,442,549 4,453,072 7,731,187 8,936,077
Community development 2,916,242 2,463,469 2,863,004 2,601,899 2,916,242 2,463,469 2,863,004 2,601,899
Mental/physical health 185,612 185,612
Culture and recreation 4,633,144 5,115,632 5,581,830 6,429,966 4,633,144 5,115,632 5,581,830 6,429,966
Interest on long-tenn debt 1,205,561 1,360,925 1,422,858 1,378,912 1,205,561 1,360,925 1,422,858 1,378,912
Business-Type Activities
Water 7,234,139 7,189,614 8,052,273 8,247,875 7,234,139 7,189,614 8,052,273 8,247,875
Wastewater 8,425,512 8,409,503 8,387,319 8,589,358 8,425,512 8,409,503 8,387,319 8,589,358
Golf Course 3,412,554 3,318,926 3,578,441 3,498,529 3,412,554 3,318,926 3,578,441 3,498,529
Other Pmprictary Funds 908,739 1,060,383 1,200,116 1,328,735 908,739 1,060,383 1,200,116 1,328,735
Total Expenses 35,180,638 35,152,649 40,859,288 45,384,224 19,980,944 19,978,426 21,218,149 21,664,497 55,161,582 55,131,075 62,077,437 67,048,721
Excess of revenues over expenses 4,138,939 2,222,433 5,684,862 4,203,531 4,664,560 6,140,436 7,819,137 11,847,577 8,803,499 8,362,869 13,503,999 16,051,108
Transfers 1,153,453 1,673,717 1,291,437 1,944,641 (1,153,453) (1,673,717) (1,291,437) (1,944,641)
Increase in net assets 5,292,392 3,896,150 6,976,299 6,148,172 3,511,107 4,466,719 6,527,700 9,902,936 8,803,499 8,362,869 13,503,999 16,051,108
Net assets - beginning 62,531,706 69,299,157 73,195,307 80,171,606 93,058,076 96,569,183 101,035,902 107,202,624 155,589,782 165,868,340 174,231,209 187,374,230
Prior period adjustmenL 1,475,059 1,708,823 (360,978) 350,000 1,475,059 (360,978) 2,058,823
NeL assets - ending 69,299,157 73,195,307 80,171,606 88,028,601 96,569,183 101,035,902 107,202,624 117,455,560 165,868,340 174,231,209 187,374,230 205,484,161
City of Bremerton / 101
TABLE 3
Fund Balance of Government Funds
Last Four Fiscal Years
2004 2005 2006 2007
GENERAL FUND
Reserved 16,070 15,570 14,970 20,470
Unreserved 2,410,089 3,531,157 4,386,943 4,084,868
Total General Fund $2,426,159 $3,546,727 $4,401,913 $4,105,338
ALL OTHER GOVERNMENTAL FUNDS
Reserved 72,949 1,564,096 1,054,224 176,435
Unreserved, Reported In:
Special Revenue Funds 3,745,126 4,593,224 5,025,387 6,251,037
Capital Projects Funds 8,046,173 7,653,595 6,074,023 2,626,138
Debt Service Funds 203,981 375,324 418,036 548,107
Total All Other Governmental Funds $12,068,229 $14,186,239 $12,571,670 $9,601,717
TOTAL ALL GOVERNMENTAL FUNDS $14,494,388 $17,732,966 $16,973,583 $13,707,055
City of Bremerton / 102
TABLE 4
Changes in Fund Balances of Government Funds
Last Four Fiscal Years
2004 2005 2006 2007
REVENUES
Taxes $ 22,219,675 $ 23,762,468 $ 25,423,632 $ 26,572,963
Licenses and Permits 862,913 1,138,578 1,043,642 1,160,778
Intergovernmental 11,907,911 4,665,774 10,574,163 10,004,467
Charges for services 3,795,272 4,647,098 5,214,339 4,645,238
Fines and forfeits 751,536 721,703 868,427 1,022,563
Miscellaneous 1,681,959 2,634,054 3,101,742 3,107,379
Total Revenues 41,219,266 37,569,675 46,225,945 46,513,388
EXPENDITURES
Current
General Government 5,176,259 5,097,706 5,628,413 6,389,555
Public Safety 13,493,936 14,817,115 15,516,122 17,418,932
Utilities and Environment 195,122 195,461 217,600 374,985
Transportation 3,350,876 2,945,199 6,295,350 7,652,880
Economic environment 3,003,305 2,576,379 2,795,953 2,521,648
Mental/physical health 185,612 68,131 71,285 71,379
Culture and recreation 4,121,492 4,327,569 4,873,362 5,313,236
Debt Service:
Principal 737,500 1,060,863 1,367,000 1,562,499
Interest and other debt issue costs 1,190,262 1,367,191 1,409,746 1,363,534
Capital 17,842,919 4,022,693 10,722,720 8,090,180
Total Expenditures 49,297,283 36,478,307 48,897,551 50,758,828
Excess (deficiency) of revenues (8,078,017) 1,091,368 (2,671,606) (4,245,440)
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt 800,000 1,671,000
Payments to Refunded Escrow Agent (1,661,309)
Fixed Assets Donations & Disposal 5,958 2,659,534 2,700,538 1,467,967
Transfers in 4,955,598 6,377,743 9,768,469 8,957,389
Transfers out (5,705,285) (6,885,610) (10,596,716) (9,445,689)
Total other financing sources and uses 56,271 2,161,358 1,872,291 979,667
OTHER CHANGES IN FUND BALANCE
Change in Reserves for Inventory (72,486) (14,148) 39,932 (755)
Net change in fund balances (8,094,232) 3,238,578 (759,383) (3,266,528)
Fund balances-beginning 22,588,620 14,494,388 17,732,966 16,973,583
Fund balances-ending 14,494,388 $ 17,732,966 $ 16,973,583 13,707,055
Debt service as a percentage of
non-capital expenditures 6.13% 7.48% 7.27% 6.86%
25000000
20000000
15000000
10000000
5000000
0
2004 2005 2006 2007
II!!l Beginning Fund Balance II Ending Fund Balance I
City of Bremerton / 103
TABLE 5
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Assessed and Estimated Actual Value Percent
Fiscal Increase
Year Real Property Personal Property* Total (Decrease )
1998 1,213,862,431 129,408,636 1,343,271,067 (0.30)
1999 1,282,376,409 127,974,324 1,410,350,733 4.99
2000 1,325,930,017 156,301,280 1,482,231,297 5.10
2001 1,358,494,142 150,607,757 1,509,101,899 1.81
2002 1,432,102,670 136,483,147 1,568,585,817 3.94
2003 1,447,949,250 137,191,146 1,585,140,396 1.06
2004 1,588,499,381 125,299,389 1,713,798,770 8.12
2005 1,722,154,076 125,883,139 1,848,037,215 7.83
2006 2,557,714,553 134,674,238 2,692,388,791 45.69
2007 2,974,663,326 140,113,102 3,114,776,428 15.69
City of Bremerton / 104
TABLE 6
PROPERTY TAX RATES FOR DIRECT AND OVERLAPPING GOVERNMENTS
(PER $1000 OF ASSESSED VALUATION)
LAST TEN FISCAL YEARS
Fiscal
Year
Emer.
General Medical
Fund Services
Debt
Service
WA
State
Kitsap Port of
County Bremerton
School
District
#100
Librarv
Public
Utility
District
Total
1998 3.33 0.50 0.22 3.59 1.74 0.46 5.03 0.50 0.10 15.47
1999 3.33 0.50 0.21 3.32 1.75 0.48 5.14 0.50 0.10 15.33
2000 3.33 0.50 0.16 3.28 1.86 0.49 5.00 0.50 0.10 15.20
2001 3.29 0.49 0.16 3.10 1.52 0.49 4.81 0.50 0.10 14.45
2002 3.30 0.50 0.15 3.15 1.61 0.50 4.82 0.48 0.11 14.61
2003 3.20 0.48 0.75 2.93 1.60 0.49 4.84 0.46 0.10 14.85
2004 3.03 0.50 0.62 3.08 1.36 0.48 4.58 0.45 0.10 14.20
2005 2.85 0.47 0.50 2.96 1.26 0.43 4.33 0.42 0.09 13.31
2006 2.46 0.41 0.48 2.60 1.09 0.38 3.73 0.36 0.08 11.59
2007 2.10 0.35 0.40 2.30 0.92 0.77 3.38 0.31 0.07 10.60
City of Bremerton / 105
TABLE 7
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2007 1998
Percent Percent
Assessed of Total Assessed of Total
Name Type of Business Rank Valuation Assessed Vatue Rank Valuation Assessed Value
Puget Sound Energy Utility 32,641,507 1.0% 2 6,781,307 0.5%
Kitsap Community Credit Union Finance 2 18,925,960 0.6% 0.0%
Bremerton Residential Investments Business Services 15,590,400 0.5% 0.0%
SHP II Bremerton LLC Property Management 4 II ,968,680 0.4% 6 5,775,000 0.4%
Bremer Trust Utility II ,208,290 0.4% 7 5,259,000 0.4%
R & L Property Management Business Services 6 9,831,040 0.3% 0.0%
Red Mortgage Capital Inc Business Services 7 9,743,040 0.3% 8 4,350,000 0.3%
Aewsh Bay Pointe Senior Housing Financial 9,368,740 0.3% 0.0%
Merit Company Apartments 9 9,043,080 0.3% 3 6,729,000 0.5%
MG Pine Ridge Apts LP Apartments 10 9,013,570 0.3% 0.0%
View crest Alliance Apts LLC Apartments 7,393,000 0.5%
FLT RE I LLC Property Management 4 6,504,000 0.5%
Cascade Natural Gas Utility 5 5,837,901 0.4%
Northwest Apartments INC Property Management 9 4,076,000 0.3%
Haselwood Automobile Prop LLC Retailers 10 3,972,000 0.3%
Total Taxable Assessed Value
of 10 Largest Taxpayers 137,334,307 4.4% 56,677,208 4.2%
Total Taxable Assessed Value
of all Other Taxpayers 2,978,470,121 95.6% 1,290,618,474 95.8%
Total Taxable Assessed Value
of all Taxpayers 3,115,776,428 100.0% 1,347,295,682 100.00%
Source: Kitsap County Assessor's Office
City of Bremerton / 106
TABLE 8
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(In Thousands)
Current %of Delinquent Total % of Total Outstanding % of Outstanding
Fiscal Tax Tax Tax Levy Tax Tax Tax Collections Delinquent Delinquent
Year 1m Collections Collected Collections Collections to Tax Levy Taxes to Tax Levy
1998 5,454 5,161 94.63 191 5,352 98.13 419 7.69
1999 5,425 5,261 96.98 91 5,353 98.66 446 8.21
2000 5,622 5,329 94.78 244 5,573 99.12 466 8.30
2001 5,870 5,543 94.44 215 5,758 98.10 464 7.90
2002 5,952 5,667 95.21 223 5,890 98.97 448 7.52
2003 7,011 6,642 94.74 196 6,838 97.54 546 7.78
2004 7,105 6,784 95.48 195 6,979 98.23 523 7.36
2005 7,065 6,801 96.26 214 7,015 99.29 498 7.05
2006 7,431 7,188 96.73 308 7,496 100.87 631 8.49
2007 7,658 7,406 96.71 436 7,842 102.40 425 5.55
City of Bremerlon / 107
TABLE 9
RATIO OF NET GENERAL BONDED DEBT
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
G.O. Less Debt % Net Bonded
Fiscal Assessed Bonded Service Net Bonded Debt to Debt Per
Year Population* Value** Debt Fund Debt Assessed Value Capita
1998 37,749 1,343,271,067 9,527,897 266,399 9,261,498 0.69 245
1999 36,270 1,410,350,733 9,135,759 285,544 8,850,215 0.63 244
2000 36,160 1,482,231,297 8,440,000 327,131 8,112,869 0.55 224
2001 37,260 1,509,101,899 10,930,000 311,654 10,618,346 0.70 285
2002 38,604 1,568,585,817 22,986,363 356,523 22,629,840 1.44 586
2003 38,730 1,585,140,396 26,962,502 375,436 26,587,066 1.68 686
2004 37,520 1,713,798,770 33,170,000 158,037 33,011,963 1.93 880
2005 34,580 1,848,037,215 31,875,139 327,269 31,547,870 1.71 912
2006 35,910 2,692,398,791 30,318,664 1,429,274 28,889,390 1.07 804
2007 35,810 3,114,736,428 28,619,400 548,107 28,071,293 0.90 784
* State of Washington Office of Financial Management
** Kitsap County Assessor
City of Bremerton / 108
TABLE 10 ;
COMPUTATION OF DIRECT AND I OVERLAPPING DEBT
DECEMBER 31,2007
Gross General Percentage Amount
Obligation Debt Applicable Applicable
Jurisdiction Outstanding To Bremerton To Bremerton
City of Bremerton 28,619,400 100.00 28,619,400
Kitsap County 109,010,000 9.54 10,399,554
Port of Bremerton 18,260,000 19.89 3,631,914
School District #100 35,237,021 74.82 26,364,339
School District #401 - Voted 33,965,924 0.99 336,263
Regional Library 9.78
So. Kitsap Schools - Voted 0.27
So. Kitsap Schools - Non-Voted 5,857,592 0.27 15,815
TOTAL 230,949,937 69,367,285
City of Bremerton / 109
TABLE 11
COMPUTATION OF LEGAL DEBT MARGIN
AS OF DECEMBER 31,2007
Total Taxable property Value $3,114,776,428
2.5% ($77,869,411) general purposes limit is allocated between:
Up to 1.5% debt without a vote (councilmanic)
46,721,646
Less: outstanding debt
Less: contracts payable
Less: excess of debt with a vote
Add: available assets
17,329,400
2,636,742
3,019,596
Equals: remaining debt capacity without a vote
1 % general purposes debt with a vote
31,147,764
Less: outstanding debt
Less: contracts payable
Add: assets available
11,290,000
59,726
Equals: remaining debt capacity with a vote
2.5% utility purpose limit, voted
77,869,411
Less: outstanding debt
Less: contracts payable
Add: assets available
Equals: remaining debt capacity - utility purpose, voted
2.5% open space, park and capital facilities, voted
77,869,411
Less: outstanding debt
Less: contracts payable
Add: assets available
Equals remaing debt capacity - open space park and capital facilities, voted
29,775,100
19,917,490
77,869,411
77,869,411
City of Bremerlon / 110
TABLE 12
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES
LAST TEN FISCAL YEARS
Ratio of Debt
Total Total Service To General
Fiscal Debt General Expenditures
Year Principal Interest Service Expenditures (Percent)
1998 458,769 271,955 730,724 34,050,417 2.15
1999 457,391 265,036 722,427 29,621,862 2.44
2000 425,716 242,742 668,458 30,078,291 2.22
2001 370,000 222,556 592,556 34,769,895 1.70
2002 865,000 201,052 1,066,052 32,755,335 3.25
2003 714,000 889,070 1,603,070 32,814,506 4.89
2004 690,000 921,136 1,611,136 30,797,206 5.23
2005 1,060,863 1,296,333 2,357,196 33,171,822 7.11
2006 1,367,000 1,380,152 2,747,152 37,261,811 7.37
2007 1,562,500 1,336,263 2,898,763 43,990,566 6.59
Includes general, special revenue and debt service funds; does not include Golf Course Bonds.
)
City of Bremerton / 111
TABLE 13
WATER AND SEWER REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Maintenance & Net Revenue Current
Fiscal Gross Operating Available For Current Coverage
Year Revenue Expenses * Debt Service Principal Interest Total Ratio
1998 14,185,276 9,261,594 4,923,683 1,650,000 1,060,350 2,710,350 1.82
1999 16,723,526 8,648,995 8,074,531 1,650,000 1,031,638 2,681,638 3.01
2000 17,465,141 9,324,824 8,140,317 1,735,000 973,725 2,708,725 3.01
2001 15,698,664 8,562,359 7,136,305 1,830,000 878,300 2,708,300 2.63
2002 16,447,132 8,770,277 7,676,855 2,025,000 735,200 2,760,200 2.78
2003 17,724,919 9,759,003 7,965,916 2,145,000 657,620 2,802,620 2.84
2004 19,014,710 11,175,402 7,839,308 2,270,000 533,720 2,803,720 2.80
2005 21,180,985 11,751,679 9,429,306 2,390,000 413,410 2,803,410 3.36
2006 24,909,999 12,125,481 12,784,518 2,555,659 305,144 2,860,803 4.47
2007 25,013,291 13,623,595 11,389,696 2,815,000 242,816 3,057,816 3.72
* Net of depreciation, amortization and City taxes.
City of Bremerlon / 112
TABLE 14
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
Fiscal Population * Percent School** # of *** Rate of ****
Year Number Increase Enrollment Housing Units Unemplovrnent
1998 37,749 (2.20) 6,552 16,685 5.2
1999 36,270 (3.92) 6,138 16,803 5.0
2000 36,160 (0.30) 6,058 16,796 5.6
2001 37,260 3.04 6,001 16,744 6.0
2002 38,604 3.61 5,894 16,576 6.1
2003 38,730 0.33 5,787 16,617 5.4
2004 37,520 (3.1 0) 5,703 16,615 5.9
2005 34,580 (7.84) 5,412 16,607 5.1
2006 35,910 3.85 5,209 16,615 4.7
2007 35,810 (0.28) 4,998 16,797 4.4
* State of Washington Office of Financial Management
* * State of Washington Office of Financial Management - Office of Superintendent of Public Instruction
*** State of Washington, Office of Financial Management
**** State of Washington, Employment Security Department
City of Bremerton / 113
TYPE OF GOVERNMENT
Home-Rule Charter
DEMOGRAPHICS IN 2007
Total Area for City of Bremerton
NUMBER OF CITY EMPLOYEES
Full-Time Equivalents
FIRE PROTECTION
Number of Personnel
Number of Stations
Fire and Aid Calls - 2007
Priority I Response Time (minutes)
POLICE PROTECTION
Number of Police Officers
Calls for Service - 2007
Average Priority I Response Time (minutes)
Average Priority 2 Response Time (minutes)
PARKS & RECREATION
Number of Developed Parks
Number of Park Acres
Senior Centers
Community Pool - Jarstad Aquatic Center
Golf - Gold Mountain Golf Complex
Ice Arena - Bremerton Ice Arena
TABLE 15
MISCELLANEOUS STATISTICS
~"...
!
. << ,,~4, .....
23.0 Square Miles
370.00
58
3
7,529
5:43
83
55,128
3:06
3:50
34
696.02
I
City of Bremerton / 114
TABLE 15 Continued
WATER UTILITY SERVICES
Residential Accounts
Conunercial Accounts
Storage Capacity - Gallons
Average Daily Demand - Million Gallons per Day
Reservoirs
15,744
1,733
33,240,000
7.7
16
12.96
Watershed Land (square miles)
Sources:
Surface Supply - 60%
Ground Supply - 8,200.000 Gallons per Day Capacity
Miles of Main
60%
13
300
Bremerton supplies 3.3 billion gallons of water each year to 55,000 people, representing 36% of all the water supplied in Kitsap
County. Bremerton regularly monitors the physical, chemical, and bacteriological characteristics to ensure that the drinking water is
safe and water quality is the best possible.
SEWER UTILITY SERVICES
Residential Sewer Accounts
Conunercial Sewer Accounts
Miles of Main
Miles of Force Main
Pump Lift Stations
Sewage Treatment:
Average Annual Flow - MGD
Hydraulic Peak Capacity - MGD
Solids Treated Tons/Y ear:
Wet Tons
Dry Tons
9,239
873
188
16
36
7.6
32
3,624
644
Bremerton's sewage system provides sewer service to approximately 37,000 people. The wastewater collection system serves City
residents as well as nearby areas in unincorporated Kitsap County.
STORMWATER UTILITY SERVICES
Residential Accounts
Conunercial Accounts
9,717
1,007
114
Miles of Mains
It is the mission ofthe Stormwater Program within the Department to control
flooding, enhance water quality, protect sensitive habitat areas, and optimize the
recharge oflocal aquifers.
\
City of Bremerton / 115
TABLE 15 Continued
CITY STREETS
Street Miles
State Highway Miles
Miles of Sidewalks
Signalized Traffic Intersections
Street Lights:
City Owned
Leased from Puget Sound Energy
371
1699
159.44
10.5
103.75
37
FORESTRY
Water and Utlity Forest Lands (square miles)
Miles of Forest Roads
8,500
60
PUBLIC SCHOOLS
Bremerton is served primarily by Bremerton School District #100. A small percentage of children attend Central Kitsap School
District #401.
Elementary
Middle School
Junior High
High School
Vocational School
6
1
1
I
1
COLLEGES
Olympic College
1600 Chester Ave., Bremerton
360 792-6050
1 800259-6718
Navy College
Naval Kitsap Bremerton
2255 Cole Ave. Bldg. 853, Bremerton
360 476-4282 Ext. 9176
HOSPITALS
Harrison Medical Center
2520 Cherry Ave., Bremerton
360377-3911
Naval Hospital Bremerton
1 Boone Road, Bremerton
1 800422-1383
LOCAL TRANSPORTATION
Washington State Ferries
Seattle Bremerton Route - Total Annual Rides (2006)
Kitsap Transit (2006)
Foot Ferry
Port Orchard Ferry Dock - Annual Rides
Annapolis Ferry Dock - Annual Rides
Buses
Annual Bus Rides
Kitsap Access Bus (County Wide)
Sources: Washington State Ferries
2,415,438
340,310
113,152
1,693,636
435,624
City of Bremerton / 116
EMPLOYMENT IN CITY LIMITS
Number of Business Licenses Issued
Number of Business Licenses Issued in City Limits
Top Employers
Puget Sound Naval Shipyard
Naval Base Kitsap
Harrison Medical Center
Naval Hospital
Olympic College
Bremerton School District
City of Bremerton
Kitsap Transit
Kitsap Mental Health Services
The Sun Newspaper
Frances Haddon Morgan Center
Source: Kitsap Economic Development Alliance
T ABEL 15 Continued
452
241
# of Employees
9,650
4,950
1,972
1,192
1,382
730
398
371
365
328
134