HomeMy WebLinkAbout2011 Annual ReportCity of Bremerton, Washington
Annual Financial Report
For the Fiscal Year ended
December 31, 2011
Prepared by the Finance Department
City of Bremerton
345 61h Street, Suite 600
Bremerton, WA 98337
(360) 473 -5210
Website: www.ci.bremerton.wa.us
City of Bremerton
Comprehensive Annual Financial Report
For the Fiscal Year Ended December 31, 2011
Table of Contents
Page
Introductory Section
Letterof Transmittal ................................................................................................................................. ............................... 1
OrganizationChart ................................................................................................................................... ............................... 4
List of Elected and Appointed Officials ................................................................................................... ............................... 5
Financial Section
IndependentAuditor's Report ............................................................................................................ ............................... 7
Management's Discussion and Analysis ............................................................................................ ............................... 9
Basic Financial Statements:
Government -wide Financial Statements:
Statementof Net Assets ................................................................................................................... ............................... 23
Statementof Activities ..................................................................................................................... ............................... 24
Fund Financial Statements:
Balance Sheet — Governmental Funds .............................................................................................. ............................... 25
Statement of Revenues, Expenditures, and Changes in Fund Balances —
GovernmentalFunds ................................................................................................................ ............................... 26
Reconciliation of the Statement of Revenues, Expenditures, and Changes
In Fund Balances of Governmental Funds to the Statement of Activities ................................ ............................... 27
Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
GeneralFund ............................................................................................................................ ............................... 28
Statement of Net Assets — Proprietary Funds ................................................................................... ............................... 29
Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds .............. ............................... 30
Statement of Cash Flows — Proprietary Funds ................................................................................. ............................... 31
Statement of Fiduciary Net Assets — Fiduciary Funds ..................................................................... ............................... 33
Notes to the Financial Statements ............................................................................................................ ............................... 35
Required Supplementary Information:
LEOFFI Pension Benefits ............................................................................................................... ............................... 66
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet — Nonmajor Governmental Funds .................................................................. ............................... 67
Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds ........... 70
Schedules of Revenue, Expenditures, and Changes in Fund Balances — Budget and Actual:
SpecialRevenue Funds .................................................................................................................... ............................... 73
DebtService Funds .......................................................................................................................... ............................... 86
CapitalProjects Funds ..................................................................................................................... ............................... 89
Combining Statement of Net Assets — Proprietary Funds ...................................................................... ............................... 97
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds .. ............................... 98
Combining Statement of Cash Flows — Proprietary Funds ..................................................................... ............................... 99
Combining Statement of Net Assets — Internal Service Funds ............................................................. ............................... 101
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets — Internal Service Funds ....................... 102
Combining Statement of Cash Flows — Internal Service Funds ........................................................... ............................... 103
Combining Statement of Fiduciary Net Assets - Agency Funds ............................................................ ............................... 105
Table of Contents
Statistical Section
Financial Trends:
Page
Table1 —
Net Assets by Component .................................................................................................... ...............................
107
Table2 —
Changes in Net Assets .......................................................................................................... ...............................
108
Table 3 —
Fund Balance of Government Funds .................................................................................... ...............................
109
Table 4 —
Changes in Fund Balances of Government Funds ................................................................ ...............................
110
Revenue Capacity:
Table 5 —
Assessed and Estimated Actual Value of Taxable Property ................................................. ...............................
111
Table 6 —
Property Tax Rates Direct and Overlapping Governments Last 10 Fiscal Years ................. ...............................
112
Table 7 —
Principal Property Taxpayers ............................................................................................... ...............................
113
Table 8 -
Property Tax Levies and Collections .................................................................................... ...............................
114
Debt Capacity
Table 9 —
Ratio of Net General Bonded Debt ....................................................................................... ...............................
115
Table 10
— Computation of Direct and Overlapping Debt .................................................................... ...............................
116
Table 11—
Computation of Legal Debt Margin ................................................................................... ...............................
117
Table 12
— Ratio of Annual Debt Service Expenditures for General Bonded Debt
To Total General Expenditures .......................................................................................... ...............................
118
Table 13
— Water and Sewer Revenue Bond Coverage ........................................................................ ...............................
119
Demographic and
Economic Information:
Table 14
— Demographic Statistics ....................................................................................................... ...............................
120
Table 15
— Miscellaneous Statistics ...................................................................................................... ...............................
121
City of Bremerton / 9
August 17, 2012
Department of 'Financial Services
345 6th Street Suite 600,
Bremerton, WA 98337
Telephone: 360- 473 -5347
Fax: 360- 473 -5200
Becky.Hasart @ci. bremerton. wa. us
Becky Hasart, Director of Financial Services
To the Members of the City Council and the Citizens of the City of Bremerton:
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, 2011. State statute and financial best practices
require the City issue annually a report on its financial position and activity. Responsibility for both the
accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests
with city management based upon a comprehensive framework of internal controls that have been
established to provide assurances that the financial statements are free of any material misstatements. To
the best of our knowledge and belief, the enclosed data are accurate in all material respects and are
reported in a manner that presents fairly the financial position and results of operations of the various
funds and component units of the City.
Generally Accepted Accounting Principles (GAAP) in the United States of America requires that
management provide a narrative introduction, overview, and analysis to accompany the basic financial
statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is
designed to complement the MD &A and should be read in conjunction with it. The City's MD &A can be
found in the Financial Section of this report.
The City of Bremerton is required to undergo an independent, annual single audit in conformity with the
provisions of the Single Audit Act of 1996 and the U.S. Office of Management and Budget Circular A-
133, Audits of States, Local Governments, and Non -Profit Organizations. Information related to this
independent, single audit, including a schedule of expenditures of federal awards, the State Auditor's
Office reports on the internal control structure and compliance with applicable laws and regulations, and
the schedule of findings and questioned costs, if any, are included in separately issued reports.
Profile of the Government
The City of Bremerton was incorporated in 1901, and operates under the laws of the State of Washington
applicable to a home -rule charter city under a Mayor /Council form of govermnent. 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, transportation,
2 /Introductory Section
infrastructure construction and maintenance, economic development, building and planning, zoning,
finance and administration, and operates water, sewer, and stormwater utility systems.
The City of Bremerton is located in Kitsap County and lies east of the Olympic Mountains directly
across Puget Sound from Seattle. As the largest city in the County, Bremerton had a 2011 population of
36,190 and serves as the urban center for the Bremerton- Silverdale Metropolitan Statistical Area
(MSA). For over a century, Bremerton has been home to Puget Sound Naval Shipyard which continues
to service U.S. Naval vessels and its personnel.
The City adopts an annual (calendar year) budget and the Council is required to adopt the final budget
by no later than the close of the fiscal year. This annual budget serves as the foundation for the City's
financial planning and control. The budget is prepared by fund, department, and /or program. Periodic
amendments to the adopted budget are approved by the City Council.
Economic Overview /Factor's Affecting the City's Financial Condition
Information presented in the financial statements is best considered in the broader context of the
economic environment in Bremerton and the surrounding area.
Local Economy (Source: Employment Security Dept., Bureau of Economic Analysis; US Census
Bureau)
As stated above, the City of Bremerton has been home to Puget Sound Naval Shipyard (PSNS) for over a
century. PSNS employs over 9,000 civilians that service U.S. Navy ships. In addition, nearly 6,000
active duty military personnel are based at this site. Additional major employers in our region include
Harrison Medical Center with 2715 employees and Olympic College with 1046 employees.
Kitsap County's business climate remains as healthy as our environment thanks to the presence of major
Naval installations, including the PSNS, Naval Base Kitsap, Naval Undersea Warfare Center Division
Keyport, and Naval Hospital Bremerton. In addition, Kitsap County's economic outlook appears to be
improving slowly. New manufacturing efforts in the advanced - composites industry are taking hold, and
jobs in the private sector have also started to rebound with some gains in retail and finance. Our county
has a skilled workforce of approximately 12 1,000. As of November 2011, the county's unemployment
rate was 7.2 percent, an improvement compared to 7.4 percent in November 2010.
Per Capita income for the Bremerton- Silverdale MSA is also improving. 2010 per capita income was
$42,300, an increase over 2009's figure of $41,587. The Bremerton- Silverdale MSA 2010 per capita
income is keeping pace with Washington State's average of $42,589, when consideration is given to the
fact that Washington's average includes the Seattle- Tacoma - Bellevue MSA's per capita income of
$49,115.
The naval and Department of Defense installations in the county have a significant impact on the City's
economy. The naval presence has served the City well in the past and is expected to help it recover from
the effects of the current recession. In addition, it has been the City's policy to encourage and facilitate
diversification in the region's employment base. The City is currently developing a master plan for the
South Kitsap Industrial Area to encourage manufacturing and industrial development.
City of Bremerton / 3
■ Relevant Financial Policies
Financial and Budget Policy Statements are presented on pages 165 -168 of the 2012 Annual Budget,
which may be found on the City's website at www.ci.bremerton.wa.us Long -term financial planning is
discussed in several of the policy statements, including strategic planning, financial sustainability, and
budget and contingency policies. In addition, long -term financial planning for the City is framed by the
City's Comprehensive Plan which was adopted in December 2004. 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 and Budget Policy statements define what constitutes a "good outcome" for the
City in regards to financial planning and decisions and the boundaries or demonstrated performance
deemed necessary to achieve those objectives.
■ Revenue Limitations
State law allows the City to levy a property tax rate of up to $3.825 per thousand of assessed property
value annually (Bremerton is eligible for the additional $0.225 for fireman's pension fund). No matter
what the assessed value is, however, the growth rate of property tax collections is limited to 1% per year
prior to the addition of new construction. In no event may the annual limit exceed the $3.825 per
thousand of assessed value. During 2011, the City levied at the statutory limitation of $2.83 per thousand
of assessed value, inclusive of the $0.50 per thousand emergency management services levy.
Major Initiatives
The City of Bremerton, in partnership with other public entities, provided significant public sector
stimulus investment to the City's revitalization program by infusing public dollars into key infrastructure
improvements. Over the past five years, these projects have included a new Conference Center, parking
garages, two hotels, two condominium complexes, an expanded marina, Harborside Park and Plaza, a
ferry terminal traffic tunnel, as well as a new Government Center. The City continues this investment in
its revitalization program with the construction of a new parking garage downtown and commitment from
private development for a multi -plex cinema downtown.
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
to all those who assisted and contributed to the preparation. We would like to specifically thank Cathy
Johnson, Assistant Director of Financial Services, for her work in bringing this document together. We
would also like to thank the Directors 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.
Respectfully submitted,
Patty Lent
Mayor
Becky Hasart
Director of Financial Services
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City of Bremerton / 5
Directory of Officials
2011
Elected Officials:
Mayor.................................................................................................. ............................... Patty Lent
District #1 Council Member
............................. ............................... ............................Jim McDonald
District #2 Council Member
..................................................... ............................... Cecil McConnell
District #3 Council Member
.............................. ............................... ...........................Adam Brockus
District #4 Council Member
............................................................ ............................... Roy Runyon
District #5 Council Member
.......................................................... ............................... Greg Wheeler
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:
CityAttorney .................................................... ............................... ..........................Roger Lubovich
Director, Public Works and Utilities ........................................ ...............................
Vincent Akhimie
FireChief ............................................................................................... ...............................
Al Duke
PoliceChief .................................................................................... ...............................
Craig Rogers
Director of Financial Services ........................................................ ...............................
Becky Hasart
Director of Community Development ............... ............................... .........................
Andrea Spencer
Director of Parks and Recreation .............................................. ...............................
Wyn Birkenthal
CityAuditor ..................................................................................... ...............................
Gary Nystul
6 /Introductory Section
THIS PAGE LEFT BLANK INTENTIONALLY.
City of Bremerton / 7
Independent Auditor's Report on Financial
Statements
City of Bremerton
Kitsap County
January 1, 2011 through December 31, 2011
Mayor and City Council
City of Bremerton
Bremerton, Washington
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund and the aggregate remaining fund information of the
City of Bremerton, Kitsap County, Washington, as of and for the year ended December 31,
2011, which collectively comprise the City's basic financial statements as listed on page 16.
These financial statements are the responsibility of the City's management. Our responsibility is
to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund and the aggregate remaining fund information of the City of Bremerton, as of
December 31, 2011, and the respective changes in financial position and, where applicable,
cash flows thereof, and the budgetary comparison for the General fund, for the year then ended
in conformity with accounting principles generally accepted in the United States of America.
As described in Note 1, during the year ended December 31, 2011, the City implemented
Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions.
In accordance with Government Auditing Standards, we have also issued our report on our
consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
Washington State Auditor's Office
14
8 /Financial Section
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 17 through 29 and information on
postemployment benefits other than pensions on page 72 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate
operational, economic or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during the audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Our audit was performed for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying Schedule of
Expenditures of Federal Awards is presented for purposes of additional analysis as required by
U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments,
and Non - Profit Organizations. This schedule is not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
September 19, 2012
Washington State Auditor's Office
15
BRIAN SONNTAG, CGFM
STATE AUDITOR
City of Bremerton / 9
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, 2011. 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 2011, the assets of the City exceeded its liabilities by $240.3 million. Net assets
invested in capital assets (net of depreciation and related debt) account for over 83.4 percent of this amount
($200.5 million). Net assets restricted primarily for construction projects, debt service, Community
Development Block Grant (CDBG) programs and public safety account for another 3.1 percent of this amount
($7.5 million). The remaining net assets of $32.3 million may be used to meet the City's ongoing obligations to
citizens and creditors.
• The City's net assets increased by $2.9 million (1.2 %) during the fiscal year. The governmental net assets
decreased by $.7 million (1 %) from the amount reported in 2010. Business -type net assets increased by $3.5
million (2.3 %). The Business -type increase included net income before contributions and transfers for the
Water utility of $770,556, Wastewater utility of $3,652,125, other nonmajor proprietary funds of $636,487 and
Golf Course $(89,080).
As of December 31, 2011, the City's governmental funds reported a combined fund balance of $9.2 million, a
decrease of 38.8% from the prior year end. The fund balance of the General Fund decreased by $1,024,973.
The remaining non -major governmental funds had a fund balance decrease of $4,797,105. The overall decrease
is largely attributable to capital project expenditures financed by bonds issued in 2010 ($4.4 million). $4.7
million of the combined ending governmental fund balances is restricted for specific purposes by external
parties or enabling legislation or otherwise not available for expenditure. Of the remaining $4.5 million of
unrestricted fund balance $1.3 million has been committed or assigned for specific purposes while $3.2 million
is unassigned and available to the City for future appropriation.
• At the end of 2011, the unassigned fund balance of the General Fund was $3.3 million or approximately nine
percent of total General Fund expenditures of $36.1 million. The General Fund's unrestricted fund balance
decreased by $1,881,208 from the prior year's amount of $6.4 million, a 29 percent decrease. This decrease is
primarily due to payment of $1,150,000 as settlement of the City's obligation under a contingent loan
agreement with Kitsap County and Kitsap County Housing Authority.
• The City's total outstanding debt decreased by $1.5 million (1.9 %) during the current fiscal year to $75.6
million. General obligation debt increased by $3.8 million and revenue debt decreased by $5.3 million. Debt
per capita decreased from $2,131 to $1,949, a 8.6% decrease.
• The City's investment in Capital Assets net of depreciation increased $4.1 million (1.0 %) in 2011. Total
Capital assets from governmental activities increased $3.6 million or 1.0 %. The increase is primarily due to
construction of the Park Avenue Plaza parking facility.
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.
10 /Financial Section
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), utilities and environment,
transportation, economic environment, and culture and recreation. The City's business -type activities are limited to
the City's municipal golf course and water, wastewater and nonmajor utility activities. 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'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, 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, and fiduciary 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 maintained twenty (22) individual governmental funds in 2011. The City's General fund is presented
separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures,
and changes in fund balances. The remaining governmental funds are combined into a single column labeled
City of Bremerton / 11
"Other Governmental Funds ". Information for each of the non -major 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 department and category group level by fund in accordance with City code and state law. A
budgetary comparison statement is presented as required supplementary information for all funds for which there
was an adopted budget.
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 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 four (5) 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 and stormwater utilities.
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, unemployment insurance obligations, termination benefits 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's activities.
The City has one type of fiduciary fund an agency fund. Agency funds are custodial in nature and do not include
revenues and expenses as they do not measure the results of operations.
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's net assets at
December 31, 2011 total $240.3 million. Following is a condensed version of the government -wide statement of
net assets. The City presents 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.
12 /Financial Section
Net Assets
66,905
4,627
128,931
128,159
772
200,463
195,064
5,399
6,007
Amounts in 000's
(2,270)
Governmental Activities
1,306
Business -Type Activities
7,534
9,583
Total
5,948
9,434
2011
2010 Difference
2011
2010 Difference
2011
2010
Difference
Current Assets
$ 17,065
$ 15,119 $
1,946
$ 27,347
$ 24,490 $
2,857
$ 44,412
$ 39,609
$ 4,803
Restricted Assets
100
8,725
(8625)
1,690
1,658
32
1,790
10,383
(8,593)
Capital Assets
105,193
101,558
3635
169,962
169,471
491
275,155
271,029
4,126
Other Noncurrent Assets
1,550
666
884
1,103
1,288
(185)
2,653
1,954
699
Total assets
123,908
126,068
(2,160)
200,102
196,907
3,195
324,010
322,975
1,035
Current Liabilities
Payable from Restricted
Assets
Noncurrent Liabilities
Total liabilities
4,911 6,126
- 449
35,508 34,877
40,419 41,452
(1,215) 4,901 5,276
(375) 9,812 11,402 (1,590)
Net assets
Invested in capital assets, net of
related debt
Restricted
Unrestricted
Total net assets
(449) 163 30
631 38,181 38,163
(1,033) 43,245 43,469
133 163 479 (316)
18 73,689 73,040 649
(224) 83,664 84,921 (1,257)
71,532
66,905
4,627
128,931
128,159
772
200,463
195,064
5,399
6,007
8,277
(2,270)
1,527
1,306
221
7,534
9,583
(2,049)
5,948
9,434
(3,486)
26,399
23,973
2,426
32,347
33,407
(1,060)
$ 83,487
$ 84,616 $
(1,129)
$ 156,857
$ 153,438 $
3,419
$ 240,344
$ 238,054
$ 2,290
The largest component of the City's net assets, $200.5 million (or 83.4 %), 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 $6.0 million of governmental restricted assets, $3.0 million or 50% is restricted for the
construction of capital assets. $3.0 million of restricted net assets are special revenues restricted primarily for use in
the Community Development Block Grant program (38.9 %), for public safety services (33 %) and Parking system
operation and debt service (19.8°/x). $1.5 million of business -type restricted assets are reserves required for debt
service payments and asset replacement. A total of $26.4 million represents the unrestricted net assets of the City's
business -type activities and may only be spent on golf course operations, water, wastewater and other 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 $5.9 million 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, etc), and ongoing street maintenance (street sweeping, restriping,
resurfacing, etc).
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's overall financial position improved in 2011 with net assets increasing
City of Bremerton / 13
approximately $2.9 million. Net assets of governmental activities decreased by $.66 million and the net assets of
business -type activities increased by $3.5 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
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.
Changes in Net Assets
Amounts in 000's
Governmental Activities
Business -Type Activities
1,334
Total
4,585
2011
2010
Difference
2011
2010 Difference
2011
2010
Difference
Revenues
23,719
24,188
(469)
Utilities and environment
220
219
1
Program revenues
220
219
1
Transportation
4,235
4,012
223
Charges for services
$ 8,134 $
7,975
$ 159
$ 26,471
$ 25,982 $
489
$ 34,605
$ 33,957
$ 648
Operating pants and contributions
1,863
2,685
(822)
259
66
193
2,122
2,751
(629)
Capital pants and contributions
1,754
3,748
(1,994)
2,580
7,417
(4,837)
4,334
11,165
(6,831)
General revenues
-
977
535
Business -type activities
Property taxes
8,546
8,554
(8)
-
-
-
8,546
8,554
(8)
Sales taxes
7,051
6,539
512
17
17
7,068
6,539
529
Business taxes
3,175
3,407
(232)
Golfcourse
6
(6)
3,175
3,413
(238)
Utility taxes
4,512
4,531
(19)
Other proprietary funds
-
-
4,512
4,531
(19)
Othertaxes
2,385
2,391
(6)
-
-
42,467 $
2,385
2,391
(6)
Other general revenues
658
1,429
(771)
613
584
29
1,271
2,013
(742)
Total revenues
$ 38,078 $
41,259
$ (3,181)
$ 29,940
$ 34,055 $
(4,115)
$ 68,018
$ 75,314
$ (7,296)
Expenses
Governmental activities
General goverranent
4,585
3,251
1,334
4,585
3,251
1,334
Public safety
23,719
24,188
(469)
23,719
24,188
(469)
Utilities and environment
220
219
1
220
219
1
Transportation
4,235
4,012
223
4,235
4,012
223
Economic Enivironment
2,232
3,310
(1,078)
2,232
3,310
(1,078)
Culture and recreation
5,976
6,510
(534)
5,976
6,510
(534)
Interest on long -tern debt
1,512
977
535
-
-
-
1,512
977
535
Business -type activities
Water
-
-
8,868
8,299
569
8,868
8,299
569
Wastewater
9,822
9,010
812
9,822
9,010
812
Golfcourse
2,136
2,256
(120)
2,136
2,256
(120)
Other proprietary funds
-
-
1,831
1,603
228
1,831
1,603
228
Total expenses
$ 42,479 $
42,467 $
12
$ 22,657
$ 21,168 $
1,489
$ 65,136
$ 63,635 $
1,501
Excess of revenues over expenses
(4,401)
(1,208)
(3,193)
7,283
12,887
(5,604)
2,882
11,679
(8,797)
Transfers
3,738
3,611
127
(3,738)
(3,611)
(127)
-
-
Change in net assets
(663)
2,403
(3,066)
3,545
9,276
(5,731)
2,882
11,679
(8,797)
Netassets - beginning
84,616
84,358
258
153,438
144,891
8,547
238,054
229,249
8,805
Prior period adjustment
(466)
(2,145)
1,679
(126)
(729)
603
(592)
(2,874)
2,282
Net assets - ending
$ 83,487 $
84,616 $
(1,129)
$ 156,857
$ 153,438 $
3,419
$ 240,344
$ 238,054 $
2,290
Governmental activities accounted for a decrease of $1.1 million of the total change in net assets of $2.3 million.
Significant elements of the decrease are as follows:
■ Expenditures increased by 1% in 2011 compared to 2010. Reductions occurred in many functional areas, as a
significant effort was made to match declining resources. The most notable exception was expenditures for
General Government. Expenditures for General Government increased 41% in 2011 as a result of payment as
14 /Financial Section
settlement of the City's obligation under a contingent loan agreement with Kitsap County and Kitsap County
Housing Authority in the amount of $1,150,000. Expenditures for Economic Development decreased $1.1
million. In 2010 property was purchased in the Harborside District that was reconfigured and resold as part of
an ongoing economic development effort (.9M). Expenditures for Culture and Recreation decreased $534,000
(8.2 %) from 2010 levels. The Parks swimming pool function decreased $336,000 due to the transfer of pool
operations to the YMCA of Pierce and Kitsap Counties. Expenditures for the operation of the Kitsap
Conference Center decreased by approximately $129,000 in 2011 due to a decrease in events at the facility.
Interest on long term debt increased $.5 million due to repayments associated with debt issued in 2010 for
construction of Park Avenue Plaza.
Total revenue from governmental activities in 2011 decreased by $3.2 million from 2010. $2.8 million, or 89 %,
of this decrease was attributable to a decline in Operating and Capital Grants and Contributions. The largest
decreases were from completion in 2011 of an interlocal Police Technology grant ($ 1. 1 million), completion of
the Harborside Plaza and Commons ($1.2 million) and Lions Park renovation ($.9 million) as well as a decrease
in capital grants received for street construction ($.6 million). The decreases were offset by federal grant
proceeds received from the Economic Development Administration for construction of Park Avenue Plaza ($.6
million). Tax revenues that support ongoing operations increased by $.25 million in 2011 from the 2010 level.
Sales taxes increased 7.8 %. General sales taxes increased $260,254 or 4.4 %. Sales taxes collected under the
State's Local Revitalization Financing (LRF) program increased $224,356 in 2011, the first full year of
collection. Property, business, utility and other taxes decreased $.27 million the largest decrease being business
taxes ($.23 million). Other general revenues which include interest earnings, gains on disposal of assets, and
miscellaneous income, decreased by $.78 million in 2011 from the 2010 level. The largest component of this
decrease ($.5 million) was related to the sale of property and other assets. In 2009 property purchased for
economic development purposes was sold to a private developer for $.9 million. This decrease was offset by
the sale, in 2011, of a retail pad at Park Avenue Plaza for the construction of a multiscreen cinema.
■ Transfers continued to play a significant role in the increase to net assets in 2011. Transfers from Business -type
activities increased $127,000 in 2011. Payments in lieu of tax levied on the city's own utilities increased by
$84,980 to $3,695,745 (2.3 %).
■ Governmental activities were reduced $.5 million in 2011 by a prior period adjustment to recognize employee
sick leave benefits payable at retirement from City service.
Revenue by Source - Governmental Activities
Amounts in $000
2010 and 2011
9,000
8,000
7,000
02010
6,000
® 2011
5,000
4,000
3,000
2,000
1,000
0
Charges for
Operating
Capital
Property
Business
Utility
Other
grants and
grants and
Sales taxes
Other taxes
general
services
contributions
contributions
taxes
taxes
taxes
revenues
®2010
7,975
2,685
3,748
8,554
6,539
3,407
4,531
2,391
1,429
02011
8,134
1,863
1,754
8,546
7,051
3,175
4,512
2,385
658
City of Bremerton / 15
Amounts in $000
M2010
M2011
Expenditures by Type - Governmental Activities
2010 and 2011
Amounts in $000
25,000
20,000
15,000
10,000
5,000
0
Expenses and Program Revenues - Governmental Activities
2011
General Public safety Utilities and Transportation Economic Culture and Interest on long -
government environment Enivironment recreation term debt
® Program Expense OProgramRejE
Business -type activities increased City's net assets by $3.4 million accounting for all of the total growth in the
government's net assets.
• A key element of this increase is in capital grants and contributions which continued to be a significant
revenue source in 2011. Revenue of $2.6 million from this source decreased 65.2% in 2011 from 2010
16 /Financial Section
levels as a result of the completion of the Ultraviolet treatment plant and Gorst sewerage projects which
were grant funded. Of the $2.6 million received from this source in 2011 80% was from developer
contributions. The largest contribution $821,500 was from Bremerton Housing Authority for infrastructure
at the Bay Vista development.
• Charges for services increased $.5 million in 2011. This increase was largely as a result of a 2% utility rate
increase on water and stormwater billings effective January 1, 2011. Golf course revenues decreased
$76,202 (3.6 %) in 2011 which was offset by a decrease of Golf Course expenditures of $120,000.
• Expenditures for Business Type activities increased $1.5 million in 2011 over 2010. 29% of this increase
was attributable to an increase in depreciation expenses related to new plant additions. The remaining
increase resulted from additional operating costs for the new Ultraviolet treatment plant as well as general
cost increases for fuel, utilities and supplies.
• Transfers to Governmental Activities increased by $127,000 in 2011. Payments in lieu of tax levied on the
city's own utilities increased by $84,980 to $3,695,745 (2.3 %).
• Business -Type activities were reduced $126,000 in 2011 by a prior period adjustment to recognize
employee sick leave benefits payable at retirement from City service.
Revenue by Source - Business -type Activities
City of Bremerton / 97
Expenses by Fund - Business -type
Amounts in $000 2010 and 2011
M2010
M201 I
18 /Financial Section
Comparison of Total Revenues and Total Expenses
Amounts in $000 2010 and 2011
M2010
M2011
Financial Analysis of the City's Funds
As discussed earlier, the City 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 2011, the fund balance of the General Fund was $3.4 million. As a measure of the
fund's liquidity, the ending fund balance is 9.7% of the fund's 2011 expenditures.
The General Fund balance decreased in 2011 by $1 million. Revenues decreased from $32.5 million in 2010 to
$30.8 million in 2011. Expenditures decreased from $35.2 million to $35.0 million during the same period.
Expenditures exceeded revenues in the General Fund by $4.2 million in 2011 but were offset by net transfers and
other financing sources of $3.2 million.
Proprietary funds
The City's proprietary funds provide the same type of information found in the government -wide financial
statements, but in more detail. Other than accomplishing the programs identified in the 2011 capital improvement
program there were no significant transactions pertaining to the proprietary funds.
General Fund Budget Variations
The General Fund collected revenues at 98.8% of the amended amount budgeted or $.40 million less than budgeted.
Expenditures for 2011 were 96.1% of the amended budget resulting in actual expenditures being $1.3 million less
than the budgeted amount. The negative revenue budget variance is substantially attributable to a delay in receipt of
intergovernmental revenues related to master planning for the South Kitsap Industrial Area (SKIA) and a decrease
in anticipated charges for services and miscellaneous revenues. The positive expenditure budget variance is largely
attributable to personnel cost savings gained through attrition and actual expenditures in the Community
Development and Police & Fire Pension departments coming in less than projected.
City of Bremerton / 19
The General Fund budget was balanced in 2011. The original budget provided for an increase to the fund balance of
$70,623. The budget was amended two times during 2011. The final amended budget provided for a decrease to
fund balance of $1,059,760. At the conclusion of 2011, the General Fund decreased fund balance by $.12 million.
Capital Asset and Debt Administration
Capital Assets
The City's investment in capital assets for its governmental and business -type activities as of December 31, 2011,
amounts to $275.2 million (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 asset additions for governmental activities during 2011 were the completion of the reconstruction
of Lions Park and the construction of Park Avenue Plaza.
The major capital assets changes for business -type activities included the construction of wastewater and water
capital improvement projects identified within the City's 2011 capital improvement plan.
Capital Assets (net of depreciation)
Amounts in 000's Governmental Activities
Land
Buildings
Improvements /Infrastructure
Machinery and EgUipment
Construction in Progress
TOTAL
2011 2010 Difference
$ 17,406 $ 15,966 $ 1,440
47,175 47,890 (715)
25,616 26,484 (868)
3,344 3,770 (426)
11,651 7,448 4,203
$ 105,192 $ 101,558 $ 3,634
Business -Type Activities
Business -Type Activities
Total
Total
2011
2010 Difference
2011
2010
Difference
$ 8,602
$ 8,565 $
37
$ 26,008
$ 24,531
$ 1,477
32,530
33,394
(864)
79,705
81,284
(1,579)
91,265
86,355
4,910
116,881
112,839
4,042
28,857
30,360
(1,503)
32,201
34,130
(1,929)
8,708
10,797
(2,089)
20,359
18,245
2,114
$ 169,962
$ 169,471 $
491
$ 275,154
$ 271,029
$ 4,125
Additional information on the City's capital assets can be found in Note 6.
Long -term debt
New debt for governmental activities in 2011 consisted of a general obligation bond anticipation note that replaced
Weekly Rate Demand Revenue Bonds, 2003 that was secured by a letter of credit that expired on August 1, 2011.
Additionally the City entered into contracts for the purchase of property and upgrades to the Glenn Jarstad Aquatic
Center that are secured by a promissory note. New debt for business -type activities in 2011 consisted of
$2,990,657 of intergovernmental loans to fund Water /Wastewater capital improvement projects identified within the
utilities' capital improvement plan. The long -term debt principal paid off in 2011 totaled $14,354,806.
Outstanding Debt - General Obligation and Revenue Bonds
Amounts in 000's
General Obligation Bonds
General Obligation Notes
Revenue Bonds
Revenue Loans
TOTAL
Governmental Activities
Business -Type Activities
Total
2011 2010
Difference
2011
2010 Difference
2011
2010
Difference
$ 34,300 $ 30,438
$ 3,862
$ 5,163
$ 5,268 $
(105)
$ 39,463
$ 35,706
$
3,757
$ 48 $ -
48
$
$ -
-
48
-
$
48
- 5,245
(5,245)
3,925
4,260
(335)
3,925
9,505
$
(5,580)
-
32,173
31,928
245
32,173
31,928
$
245
$ 34,348 $ 35,683
$ (1,335)
$ 41,261
$ 41,456 $
(195)
$ 75,609
$ 77,139
$
(1,530)
Additional Information on the City's long -term debt can be found in Note 9 of this report.
20 /Financial Section
Economic Factors and Next Years Budgets and Rates
Several factors that affect the economic climate in Bremerton were considered when preparing the City's 2012
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 have improved due to the major effort to rehabilitate Bremerton's downtown core and attract
new investors to the community however, the national, regional and local economic conditions continued to show
considerable weakness during 2011 and are expected to continue through 2012 and possibly beyond.
The State of Washington is continuing to face considerable budget challenges; however, the state's budget
challenges have had limited effect on Bremerton's transportation capital funding received from the state. Over the
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.
Future outside funding opportunities will be highly competitive and Bremerton, due to its current economic
demographics, should compete very well for certain projects. Mid- to long -term, Bremerton must increase its local
revenue to address transportation needs. In an effort to do so, the Bremerton City Council, acting as the Bremerton
Transportation Benefit District Board, enacted a $20 per vehicle car tab fee to be used solely for transportation
projects. This fee was adopted in December 2011. The first receipts resulting from these revenues will not be
realized until 2012.
Bremerton is in the midst of a revitalization and development program that will extend to all areas of the
community. 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 2011; the Harborside
Conference Center, Hotel and Plaza, Bremerton Ice Arena, Kitsap Credit Union Headquarters /Office building,
downtown Naval Parking Garage, waterfront condominiums, Harborside Fountain Park and Naval Museum,
downtown police station, Norm Dicks Government Center building, downtown fire station, downtown marina
facility, the Downtown Pedestrian Bremerton Transit Center Access , PSNS Memorial Plaza, Fairfield Inn & Suites,
downtown Municipal Courthouse, First Street Plaza and the revitalization of Lions Park. Construction of a parking
garage and retail commercial pads at Burwell and Park Ave is underway. Highmark Homes LLC of Tukwila has
just completed purchase of the East Park, a 50 -acre hillside site in East Bremerton for $1.35 million for the
development of as many as 437 housing units. If built in its entirety, the new East Park will be among the largest
neighborhoods constructed in Bremerton. The entire project would be constructed in six phases, to be built out over
several years.
Projects that are in the preliminary stages include; West Park mixed use redevelopment project, the revitalization of
Kiwanis and Matan Parks and a multi- screen movie theater to be placed on top of the Park Plaza parking facility in
the Harborside district.
These projects occurring throughout Bremerton are a product of both public and private investment. 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, including Bremerton. These
statewide initiatives have impacted current and future revenues that fund the City of Bremerton's governmental
services. The ability of Bremerton to provide sufficient funding for future core government services will be
impacted by the success of its economic development efforts. However, these efforts alone will be insufficient to
fund these core services without the identification and implementation of additional revenue sources.
A 2004 utility rate 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
City of Bremerton / 21
of this study, the City Council approved a multi -year utility rate increase plan to ensure that the three utilities were
adequately funded in compliance with the City's adopted financial goals and policies. At the end of 2010 an
internal review indicated that an increase for the water and stormwater utilities was appropriate and the City Council
adopted a rate increase of 2% for the two utilities effective January 1, 2011. Because the prior rate study was
completed before the changes in the local and state recessionary economic climate, the city plans to update the study
toward the end of 2012 with a comprehensive rate analysis that will balance local economic factors against the
utility system needs.
Requests for information
This financial report is designed to provide a general overview of the City'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, WA 98337 -1873.
22 /Financial Section
THIS PAGE LEFT BLANK INTENTIONALLY.
City of Bremerton / 23
Statement of Net Assets
December 31, 2011
Primary Government
Assets
Current assets:
Cash
Investments
Receivables
Internal balances
Due from other governments
Inventories
Prepayments
Restricted assets:
Cash
Receivables
Notes and contracts receivable:
Due within one year
Due in more than one year
Capital assets net of depreciation
Intangible Assets
Other assets
Total assets
Liabilities
Accounts payable and other current liabilities
Matured long term obligations
Employee wages payable
Other accrued liabilities
Custodial accounts
Noncurrent liabilities
Payable from restricted assets
Due within one year
Due in more than one year
Total liabilities
Net Assets
Invested in capital assets net of related debt
Restricted for:
Tourism promotion & facilities
Parking system
Community development block grant
Public safety
Debt service
Workers compensation
Capital projects
Unrestricted
Total Net Assets
Governmental
Activities
Business -Type
Activities
Total
$ 2,635,338
$ 3,512,505 $
6,147,843
8,109,050
17,352,418
25,461,468
4,492,666
4,422,852
8,915,518
34,966
(34,966)
-
1,209,215
1,018,795
2,228,010
116,876
1,022,097
1,138,973
449,662
-
449,662
100,000 1,386,374 1,486,374
- 303,761 303,761
17,000
53,812
70,812
946,138
498,527
1,444,665
105,192,797
169,961,880
275,154,677
-
191,502
191,502
604,430
412,609
1,017,039
$ 123,908,138 $ 200,102,166 $ 324,010,304
$ 1,884,566 $ 1,099,441 $ 2,984,007
- 25,000 25,000
933,217 284,347 1,217,564
- 202,387 202,387
47,507 47,507
- 163,000 163,000
2,092,989 3,095,320 5,188,309
35,508,428 38,328,216 73,836,644
$ 40,419,200 $ 43,245,218 $ 83,664,418
$ 71,532,476 $ 128,930,881 $ 200,463,357
146,835 -
146,835
603,819 -
603,819
1,187,796 -
1,187,796
1,007,219 -
1,007,219
- 1,403,678
1,403,678
100,000 -
100,000
2,962,363 123,457
3,085,820
5,948,429 26,398,932
32,347,361
$ 83,488,937 $ 156,856,948 $ 240,345,885
See accompanying notes to the financial statements.
24 /Financial Section
Statement of Activities
For the Year Ended December 31, 2011
Business -type activities
Water
8,868,640
8,964,850
81,701
1,058,595
Net (Expense) Revenue and
1,236,506
Wastewater
9,822,019
13,240,689
Program Revenues
720,335
Changes in Net Assets
4,139,347
Golfcourse
2,135,886
2,042,445
Operating
Capital
(93,441)
(93,441)
Other proprietary funds
1,831,098
Charges for
Grants and
Grants and
Governmental Business -Type
1,370,097
Function/Program
Expenses
Services
Contributions
Contributions
Activities Activities
Total
Governmental activities:
General government
$ 4,585,130
$ 1,270,042
$ 68,329
$ -
$ (3,246,759) $ $
(3,246,759)
Public safety
23,718,909
2,901,565
516,689
-
(20,300,655)
(20,300,655)
Utilities and environment
219,631
119,087
-
222,884
122,340
122,340
Transportation
4,235,164
1,389,701
-
1,192,086
(1,653,377)
(1,653,377)
Economic environment
2,231,951
584,330
1,277,748
-
(369,873)
(369,873)
Culture and recreation
5,975,233
1,869,701
-
338,805
(3,766,727)
(3,766,727)
Interest on long -term debt
1,511,968
-
-
-
(1,511,968)
(1,511,968)
Total governmental activities
42,477,986
8,134,426
1,862,766
1,753,775
(30,727,019)
(30,727,019)
Business -type activities
Water
8,868,640
8,964,850
81,701
1,058,595
1,236,506
1,236,506
Wastewater
9,822,019
13,240,689
342
720,335
4,139,347
4,139,347
Golfcourse
2,135,886
2,042,445
-
-
(93,441)
(93,441)
Other proprietary funds
1,831,098
2,223,229
176,488
801,478
1,370,097
1,370,097
Total business -type activities
22,657,643
26,471,213
258,531
2,580,408
6,652,509
6,652,509
Total government $ 65,135,629 $ 34,605,639 $ 2,121,297 $ 4,334,183 $ (30,727,019) $ 6,652,509 $ (24,074,510)
General Revenues
Taxes
Property
Sales
Business
Utility
Other
Unrestricted investment interest
Miscellaneous
Gain on disposal of capital assets
Transfers, internal activities
Total general revenues and transfers
8,546,532
-
8,546,532
7,050,928
16,735
7,067,663
3,175,405
395
3,175,800
4,512,670
-
4,512,670
2,384,628
-
2,384,628
165,159
219,179
384,338
68,978
393,883
462,861
423,708
-
423,708
3,737,965
(3,737,965)
-
30,065,973
(3,107,773)
26,958,200
Change in net assets
Net asssets- beginning
Prior period adjustment
Net assets - ending
(661,046) 3,544,736 2,883,690
84,615,528 153,438,033 238,053,561
(465,545) (125,821) (591,366)
$ 83,488,937 $ 156,856,948 $ 240,345,885
See accompanying notes to the financial statements.
City of Bremerton / 25
Balance Sheet
Governmental Funds
December 31, 2011
Amounts reported for governmental activities in the statement of nets assets are different because:
Capital assets used in governmental activities are not financial resources 105,180,983
and therefore not reported in the funds.
Other long -term assets are not available to pay for current - period 3,834,558
expenditures and therefore are deferred in the funds.
Internal service funds are used by management to charge the costs of certain activities to individual funds. 1,220,194
These assets and liabilities are included in governmental activities in the statement of net assets.
Long -term liabilities are not due and payable in the current period and therefore are not reported in the (35,950,279)
funds.
Net assets of governmental activities $ 83,488,937
See accompanying notes to the financial statements.
Other
Total
Governmental
Governmental
General
Funds
Funds
Assets
Cash
$
714,637
$
1,440,154
$
2,154,791
Investments
1,833,074
4,219,605
6,052,679
Receivables
3,803,672
680,125
4,483,797
Due from other funds
424,171
59,044
483,215
Due from other governments
135,696
1,029,957
1,165,653
Inventories
18,683
23,264
41,947
Notes /contracts - deferred
-
963,138
963,138
Total assets
$
6,929,933
$
8,415,287
$
15,345,220
Liabilities and Fund Balances
Liabilities:
Accounts /contracts payable
$
506,643
$
1,007,084
$
1,513,727
Due to other funds
282,362
207,096
489,458
Due to other governments
25,681
-
25,681
Employee wages payable
816,461
63,442
879,903
Other current liabilities
37,567
15,449
53,016
Deferred revenues
1,853,773
1,326,181
3,179,954
Total liabilities
3,522,487
2,619,252
6,141,739
Fund balances:
Nonspendable
18,683
23,264
41,947
Restricted
48,556
4,592,196
4,640,752
Committed
-
232,026
232,026
Assigned
65,926
1,045,415
1,111,341
Unassigned
3,274,281
(96,866)
3,177,415
Total fund balances
3,407,446
5,796,035
9,203,481
Total liabilities and fund balances
$
6,929,933
$
8,415,287
$
15,345,220
Amounts reported for governmental activities in the statement of nets assets are different because:
Capital assets used in governmental activities are not financial resources 105,180,983
and therefore not reported in the funds.
Other long -term assets are not available to pay for current - period 3,834,558
expenditures and therefore are deferred in the funds.
Internal service funds are used by management to charge the costs of certain activities to individual funds. 1,220,194
These assets and liabilities are included in governmental activities in the statement of net assets.
Long -term liabilities are not due and payable in the current period and therefore are not reported in the (35,950,279)
funds.
Net assets of governmental activities $ 83,488,937
See accompanying notes to the financial statements.
26 /Financial Section
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For Year Ended December 31, 2011
Expenditures
Other
Governmental
Current
General
Governmental
Funds
General government
Fund
Funds
Total
Revenues
21,571,528
216,104
21,787,632
Taxes
$ 21,914,658
$ 2,225,120
$ 24,139,778
Licenses and permits
1,034,546
199,173
1,233,719
Intergovernmental
1,846,513
3,803,795
5,650,308
Charges for services
4,380,740
569,485
4,950,225
Fines and forfeits
1,228,148
308,542
1,536,690
Miscellaneous
408,653
1,298,038
1,706,691
Total revenues
30,813,258
8,404,153
39,217,411
Expenditures
Current
-
9,675,000
9,675,000
General government
7,028,234
209,526
7,237,760
Public safety
21,571,528
216,104
21,787,632
Utilities and environment
219,631
-
219,631
Transportation
393,713
2,741,944
3,135,657
Economic environment
1,317,305
975,604
2,292,909
Mental/physical health
75,573
-
75,573
Culture and recreation
3,892,599
471,563
4,364,162
Debt service:
Principal
137,500
1,245,000
1,382,500
Interest and other debt issue costs
273,875
1,129,027
1,402,902
Capital Outlay
86,232
7,170,536
7,256,768
Intergovernmental Payments
42,203
42,203
Total expenditures
35,038,393
14,159,304
49,197,697
Excess (deficiency) of revenues
over expenditures
(4,225,135)
(5,755,151)
(9,980,286)
Other financing sources (uses)
Proceeds of Long Term Debt
-
9,675,000
9,675,000
Payments to Refunded Debt Escrow Agent
-
(9,675,000)
(9,675,000)
Capital asset donations & disposal
8,728
503,095
511,823
Insurance Recoveries
-
1,251
1,251
Transfers in
4,262,744
2,858,403
7,121,147
Transfers out
(1,071,310)
(2,411,523)
(3,482,833)
Total other financing sources and uses
3,200,162
951,226
4,151,388
Other changes in fund balance
Change in reserves for inventory - 6,820 6,820
Net change in fund balances (1,024,973) (4,797,105) (5,822,078)
Fund balances- beginning 4,432,419 10,593,140 15,025,559
Fund balances- ending $ 3,407,446 $ 5,796,035 $ 9,203,481
See accompanying notes to the financial statements.
City of Bremerton / 27
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, 2011
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances — total government funds
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.
Revenues and expenses in the statement of activities that do not provide current
financial resources are not reported in the funds.
The issuance of long -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.
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.
Change in net assets of governmental activities
$ (5,822,078)
3,641,375
(346,269)
1,168,942
231,439
$ (1.126.5911
See accompanying notes to the financial statements.
28 /Financial Section
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Other Revenues
Total revenues
Expenditures
City Council
Executive
Finance
Legal
Human Resources
Community Development
Municipal Court
City Auditor
Law Enforcement
Fire /Emergency Medical Services
Police & Fire Pension
Facilities
Parks & Recreation
Engineering
Non - Departmental
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Fund balances- ending
Adjustment to reflect consolidation of
Contingency Reserve and Conference Center
funds included in the Statement of
Revenues, Expenditures and Changes in
Fund Balances for Governmental Funds
Fund Balances Ending
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
$ 21,633,254 $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
$ 21,633,254 $
21,633,254 $
21,914,658 $
281,404
905,800
956,800
1,034,546
77,746
1,786,369
1,980,909
1,846,513
(134,396)
3,579,750
3,715,310
3,187,430
(527,880)
1,200,900
1,200,900
1,228,148
27,248
4,433,725
4,639,325
4,512,116
(127,209)
33,539,798
34,126,498
33,723,411
(403,087)
322,050
325,550
316,068
9,482
375,020
403,520
365,533
37,987
1,238,380
1,244,280
1,129,876
114,404
986,100
986,100
912,664
73,436
344,670
364,670
275,223
89,447
1,522,200
1,532,200
1,317,305
214,895
1,313,900
1,319,500
1,250,205
69,295
167,800
167,800
158,424
9,376
9,650,900
9,678,440
9,515,061
163,379
7,939,700
8,344,700
8,316,387
28,313
2,750,500
2,735,100
2,420,308
314,792
801,900
953,900
922,083
31,817
2,483,200
2,508,200
2,565,247
(57,047)
213,090
404,173
393,713
10,460
3,359,765
4,218,125
3,988,209
229,916
33,469,175
35,186,258
33,846,306
1,339,952
70,623 (1,059,760) (122,895) 936,865
1,970,400 3,049,878 3,049,878 -
$ 2,041,023 $ 1,990,118 $ 2,926,983 $ 936,865
$ 480,463
$ 3,407,446
24,328,520
24,845,120
24,296,207
548,913
8,071,270
8,461,593
7,731,382
730,211
-
77,000
86,232
(9,232)
414,385
414,385
411,375
3,010
655,000
1,388,160
1,321,110
67,050
33,469,175
35,186,258
33,846,306
1,339,952
See accompanying notes to the financial statments.
City of Bremerton / 29
Statement of Net Assets
Proprietary Funds
December 31, 2011
Noncurrent assets:
Business -type Activities
Governmental
Notes and contracts receivable
498,527
Enterprise Funds
- 498,527
Activities
100,959
Accounts/contractpayable $
Golf
100,959
Nomnajor
Prepaid Pension
internal
-
Water
Course
Wastewater
Enterprise Funds
Total
Sei vice Funds
Assets
4,723,960 165,882,720
4,090,974
Other noncurrent assets
411,689
22,315
170,107
Current assets:
-
Total noncurrent assets
61,170,680
7,366,011
93,825,666
4,723,960 167,086,317
Cash
$ 1,028,176 $
92,347
$ 574,179
$ 482,671 $
2,177,373
$ 1,815,679
Restricted Cash
37,200
-
1,349,174
- $
1,386,374
100,000
Investments
3,773,687
327,107
6,812,746
1,709,679
12,623,219
6,785,570
External receivables
1,396,032
2,772
2,429,200
633,833
4,461,837
-
Restricted Special Assesments Rec
202,802
-
-
-
202,802
-
Interest receivable
-
357
7,439
1,867
9,663
7,410
Due from other funds
176,078
1,107
51,213
45,030
273,428
129,293
Due from other governments
34,466
-
758,257
226,072
1,018,795
-
inventories
681,217
-
340,880
-
1,022,097
74,929
Prepayments
-
-
-
-
-
77,613
Total current assets
7,329,658
423,690
12,323,088
3,099,152
23,175,588
8,990,494
Noncurrent assets:
Notes and contracts receivable
498,527
- 498,527
Restricted Special Assessments Rec
100,959
Accounts/contractpayable $
373,571 $
100,959
-
Prepaid Pension
-
-
-
-
372,049
Capital assets net of depreciation
60,159,505
7,343,696
93,655,559
4,723,960 165,882,720
4,090,974
Other noncurrent assets
411,689
22,315
170,107
- 604,111
-
Total noncurrent assets
61,170,680
7,366,011
93,825,666
4,723,960 167,086,317
4,463,023
Total assets
$ 68,500,338 $
7,789,701 $
106,148,754 $
7,823,112 $ 190,261,905
$ 13,453,517
Liabilities
Current liabilities:
Accounts/contractpayable $
373,571 $
20,814 $
670,217 $
34,839
$ 1,099,441
$ 91,412
Matured long term obligations
-
-
25,000
-
25,000
-
Due to other funds
129,886
23,787
201,270
41,043
395,986
480
Other accrued liabilities
230,196
-
220,574
35,964
486,734
589,950
Current portion of long term debt
581,898
79,495
2,420,446
13,481
3,095,320
-
Bonds payable from restricted assets
41,000
-
-
-
41,000
Custodial accounts
39,791
4,550
2,666
500
47,507
-
Total current liabilities
1,396,342
128,646
3,540,173
125,827
5,190,988
681,842
Noncurrent liabilities:
Claims and judgements payable
-
-
-
-
-
1,226,363
Bonds, notes and loans payable
10,509,203
4,853,957
22,321,767
118,371
37,803,298
-
Bonds payable from restricted assets
122,000
122,000
-
Compensated absences
303,223
-
168,483
53,212
524,918
88,871
Total noncurrent liabilities
10,934,426
4,853,957
22,490,250
171,583
38,450,216
1,315,234
Total liabilities $
12,330,768 $
4,982,603 $
26,030,423 $
297,410
$ 43,641,204
$ 1,997,076
Net Assets
Invested in captial assets, net
of related debt
48,921,018
2,410,243
68,924,735
4,595,725
124,851,721
4,090,974
Restricted for capital assets
-
-
123,457
-
123,457
100,000
Restricted for debt service
177,961
-
1,225,717
-
1,403,678
-
Urestricted
7,070,591
396,855
9,844,422
2,929,977
20,241,845
7,265,467
Total net assets $
56,169,570 $
2,807,098 $
80,118,331 $
7,525,702
$ 146,620,701
$ 11,456,441
Adjustment to reflect the consolidation of internal
service fund activities
related to enterprise funds
10,236,247
Net assets of business -type activities
$ 156,856,948
See accompanying notes to the financial statements.
30 /Financial Section
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended December 31, 2011
Operating revenues:
Charges for services
Interest & dividend income
Other operating revenue
Total operating revenues
Operating expenses:
General operations
Maintenance
Customer service and marketing
General administration
Depreciation and amortization
Property, excise and B &O taxes
Risk transfer payments
Payments to claimants & beneficiaries
Other operating expenses
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses)
Business -type Activities Governmental
Enterprise Funds Activities
Nonmajor
Golf Enterprise Internal
Water Course Wastewater Funds Total Service Funds
$ 8,428,513 $
1,968,297
$ 13,257,820
$ 2,223,229
$ 25,877,859 $
4,211,302
-
-
-
-
-
12,622
624,943
74,148
20,297
43,044
762,432
17,176
9,053,456
2,042,445
13,278,117
2,266,273
26,640,291
4,241,100
1,679,866
626,791
2,645,307
433,227
5,385,191
2,558,485
2,852,135
1,073,540
1,997,836
790,309
6,713,820
-
396,091
-
293,626
44,511
734,228
-
899,941
80,163
751,252
204,947
1,936,303
299,559
1,769,372
170,534
3,107,287
90,764
5,137,957
624,964
393,760
-
388,900
39,002
821,662
-
413,888
- - - - - 478,381
509,012 - - - 509,012 50,164
8,500,177 1,951,028 9,184,208 1,602,760 21,238,173 4,425,441
553,279 91,417 4,093,909 663,513 5,402,118 (184,341)
Interest and investment revenue
67,530
4,322
65,358
16,325
153,535
56,876
Interest expense
(140,622)
(184,858)
(471,032)
(5,327)
(801,839)
-
Gain (loss) on capital asset disposal
(64,935)
-
(85,659)
-
(150,594)
14,125
Other nonoperating revenue /expense
355,304
39
49,549
(38,024)
366,868
20,475
Total nonoperating revenues (expenses)
217,277
(180,497)
(441,784)
(27,026)
(432,030)
91,476
Income (loss) before contributions and transfers
770,556
(89,080)
3,652,125
636,487
4,970,088
(92,865)
Capital contributions
1,051,690
-
700,379
801,478
2,553,547
-
Transfers in
17,168
-
-
220,292
237,460
161,625
Transfers out
(1,336,266)
-
(2,072,665)
(623,469)
(4,032,400)
(4,999)
Change in net assets
503,148
(89,080)
2,279,839
1,034,788
3,728,695
63,761
Total net assets - beginning
55,758,913
2,896,178
77,866,641
6,496,095
11,408,961
Prior Period Adj ustment
(92,491)
-
(28,149)
(5
(16,281)
Total net assets - ending
$ 56,169,570 $
2,807,098
$ 80,118,331 $
7,525,702
$
11,456,441
Adjustment to reflect the consolidation of internal service
fund activities related to enterprise funds
(183,959)
Change in net assets of business -type activities
$ 3,544,736
See accompanying notes to the financial statements.
City of Bremerton / 39
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2011
Page 1 of 2
Cash Flows From Noncapital Financing Activities
Transfers in
220,292
Business -type Activities
161,625
Governmental
(1,301,041) (1,995,151) (494,689)
(3,790,881)
(4,075)
Enterprise Funds
- - 56,209
56,209
Activities
Other nonoperatingrevenues/expenses
341,273 39 53,158 (156,077)
238,393
20,477
Nonmajor
(1,467,832)
(431,536)
(4,581,900)
financing activities
Golf
(3,275,987)
Enterprise
-
Internal
-
Water
Course
Wastewater
Funds
Total
Service Funds
Cash Flows From Operating Activities
-
Transfer out for asset construction
-
-
(104,780)
Cash received from customers
$ 8,538,534 $
1,972,017
$ 13,252,385 $
2,020,201 $
25,783,137
$ 4,207,000
Interest on investments
-
-
-
-
-
13,209
Cash payments to suppliers
(2,779,179)
(1,767,705)
(2,389,629)
(522,153)
(7,458,666)
(1,695,172)
Cash payments to employees
(3,745,396)
Principal paid on other debt
(2,884,088)
(1,006,436)
(7,635,920)
(1,173,638)
Transfer out -PILOT
Interest paid on bonds and other debt
(129,022)
(158,040)
(480,594)
(5,524)
Purchase of insurance
(137,288)
Net cash provided (used) for capital and related
(199,874)
(48,026)
(385,188)
(424,913)
Payment for insurance claims
-
-
120,164
-
(4,064,840)
(335,889)
Other operating receipts and payments
235,738
74,743
(368,534)
27,397
(30,656)
17,175
Net cash provided by operating activities
2,112,409
279,055
7,410,260
470,983
10,272,707
607,772
Cash Flows From Noncapital Financing Activities
Transfers in
220,292
220,292
161,625
Transfers out
(1,301,041) (1,995,151) (494,689)
(3,790,881)
(4,075)
Grants
- - 56,209
56,209
-
Other nonoperatingrevenues/expenses
341,273 39 53,158 (156,077)
238,393
20,477
Net cash provided (used) by noncapital
(1,467,832)
(431,536)
(4,581,900)
financing activities
(959,768) 39 (1,941,993) (374,265)
(3,275,987)
178,027
Cash Flows From Capital and Related Financing
Activities
Acquisition and construction of capital assets
(2,677,363)
(5,169)
(1,467,832)
(431,536)
(4,581,900)
(289,792)
Proceeds /costs on sale of assets
-
-
-
-
61,403
Capital contributions
275,021
246,426
27,513
548,960
-
Transfer out for asset construction
-
-
(104,780)
(104,780)
Collections on notes receivable
103,092
-
-
103,092
Loan /grant proceeds
3,155,720
101,090
337,027
3,593,837
Principal paid on bonds
(41,000)
(105,000)
(294,000)
-
(440,000)
Principal paid on other debt
(566,284)
(2,169,930)
(9,864)
(2,746,078)
Interest paid on bonds and other debt
(129,022)
(158,040)
(480,594)
(5,524)
(773,180)
Net cash provided (used) for capital and related
financing activities
120,164
(268,209)
(4,064,840)
(187,164)
(4,400,049)
(228,389)
Cash Flows From Investing Activities
Proceeds from repayment of loans
12,182
-
-
-
12,182
7,011
Net change in investments
(458,686)
53,724
34,567
425,379
54,984
825,256
Proceeds from special assessments
-
-
-
-
-
1,868
Interest on loans and investments
37,116
4,537
68,201
17,664
127,518
60,461
Net cash provided (used) in investing activities
(409,388)
58,261
102,768
443,043
194,684
894,596
Net increase (decrease) in cash and cash equivalents
863,417
69,146
1,506,195
352,597
2,791,355
1,452,006
Cash -beginning ofyear
201,959
23,201
417,158
130,074
772,392
463,673
Cash - end of year
$ 1,065,376 S
92,347 S
1,923,353 S
482,671 S
3,563,747
S 1,915,679
Cash at the end of the year consists of:
Operating fund cash
1,028,176
92,347
574,179
482,671
2,177,373
1,815,679
Restricted cash
37,200
-
1,349,174
-
1,386,374
100,000
Total cash at end ofyear
$ 1,065,376 S
92,347 S
1,923,353 S
482,671 S
3,563,747
S 1,915,679
See accompanying notes to the financial statements.
32 /Financial Section
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2011
Page 2 of 2
Business -type Activities Governmental
Enterprise Funds Activities
Nonmajor
Golf Enterprise Internal
Water Course Wastewater Funds Total Sei vice Funds
Reconciliation of operating income to net cash provided by operating activities:
Operating income (loss) $ 553,279 $
Adjustments to reconcile operating income to net
cash provided by operating activities:
91,417 $ 4,093,909 $ 663,513 $ 5,402,118 $ (188,208)
Depreciation
1,769,372
170,534
3,107,287
90,764
5,137,957
624,964
Decrease (increase) in receivables
114,599
578
25,752
(203,028)
(62,099)
3,939
Decrease (increase) in due from other funds/govt
(15,693)
(1,107)
(50,066)
(21,674)
(88,540)
9,936
Decrease (increase) in prepaid expenses
-
-
-
-
-
54,567
Decrease (increase) in inventory
(4,082)
(73,504)
(77,586)
8,659
Increase (decrease) in accounts payable
(344,774)
(7,547)
320,790
(47,866)
(79,397)
72,493
Increase (decrease) in due to otherfunds/govt
22,939
23,748
(6,857)
(702)
39,128
(92)
Increase (decrease) in employee wages payable
3,897
-
(14,553)
(5,181)
(15,837)
1,155
Increase (decrease) in employee leaves payable
1,603
-
6,169
(4,843)
2,929
20,359
Increase (decrease) in other payables
604
1,432
1,333
3,369
-
Increase (decrease) in deferred revenues
10,665
-
-
-
10,665
-
Net cash provided by operating activities
$ 2,112,409 $
279,055 $
7,410,260 $
470,983 $
10,272,707
$ 607,772
Noncash investing, capital and financial activities;
Developers contributed infrastructure $ 776,669 $ $ 453,954 $ 290,000 $ 1,520,623 $
Change in market value of investments (4,643) (402) (8,350) $ (1,989) $ (15,384) $ (8,303)
See accompanying notes to the financial statements.
City of Bremerton / 33
Statement of Fiduciary Net Assets
Fiduciary Funds
As of December 31, 2011
Agency
Funds
Assets
Cash and cash equivalents
External receivables
Interest receivable
Interfund receivables
Total assets
185,616
452
$ 186,068
Liabilities
Accounts /contracts payable
Due to other funds
Other current liabilities
Total liabilities
51,168
12
134,888
$ 186,068
See accompanying notes to the financial statements.
34 /Financial Section
THIS PAGE LEFT BLANK INTENTIONALLY.
City of Bremerton / 35
Notes to Financial Statements
January 1, 2011— December 31, 2011
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 Council/Mayor 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.
On February 4, 2009 the City authorized and approved the creation of a Transportation Benefit District coextensive with
the boundaries of the City in order to exercise the powers available under RCW 36.73. This blended component unit is
governed by a board composed of the nine members of the Bremerton City Council, who serve in an ex- officio and
independent capacity. The primary purpose of the District is the acquisition, construction, improvement, provision
and /or funding of the maintenance of City street and related infrastructure. Financial Statements for this unit are not
included for the year ending 12/31/11 as no fees have been enacted nor transportation improvements been funded.
B. Government -wide and fund financial statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been
removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely 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.
36 /Financial Section
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.
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 and reported for in another fund.
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:
Debt Service Funds account for the resources accumulated and payments made for principal and interest on the
general government except those required to be accounted for in another fund.
Special Revenue Funds account for the proceeds of specific revenue sources to finance specific activities as required
by law or administrative regulation. Their revenues are earmarked to finance certain activities or functions.
Capital Project Funds account for the acquisition or development of capital facilities for governmental activities.
Their major sources of revenues are from proceeds from general obligation bonds, loans, real estate excise tax,
impact fees, grants from other agencies and contributions from other funds.
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, Unemployment and Employee leave payout activities. In all cases, City departments contribute
according to the benefit provided by each fund.
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.
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.
City of Bremerton / 37
D. Budgetary Information
1. Scone of Buduet
Annual appropriated budgets are adopted for all funds except fiduciary fund types. All appropriations lapse at the end
of each year. The budget is prepared using a basis of accounting substantially the same as the GAAP basis used in
accounting for governmental funds. The budgetary basis of accounting differs from generally accepted accounting
principles. The city budgets the Contingency Reserve and Conference Center activities as if they were special revenue
funds. However, GAAP requires these activities to be reported with the General fund. The Conference Center fund does
not have a significant stream of restricted resources and under GAAP the Contingency Reserve fund was established for
a specific purpose, stabilization, which should be included in the General fund. From a budgetary perspective, the city
budgets for each of these funds separate from the General fund. The budgetary comparison for the General Fund does
not include the managerial funds.
2. Amending the Budget
The City's budget is adopted at the department and category group level. The five distinct category groups are 1}
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. The City's budget was amended two times in 2011.
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 Net Assets
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 investments. Included in investments are investments with the State Investment Pool, in U.S. Treasury and
Agency Securities and in general obligation bonds issued by the City of Bremerton. At December 31, 2011 the City held
$25,461,468 in investments of surplus cash.
The amounts reported as cash include compensating balances maintained with the City's bank in lieu of payments for
services rendered. The average compensating balance maintained during 2011 was $7,154,039.
For purposes of the statement of cash flows the City considers restricted assets to be cash equivalents.
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 of unbilled
special assessments that are liens against the property benefited. As of December 31, 2011, $77,733 of special
assessments receivable were delinquent.
The amounts reported as notes and contracts receivable primarily represents 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
38 /Financial Section
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.
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 are for grants, entitlements and contracts.
5. Inventories
Inventories in governmental funds consist of expendable supplies held for consumption. The cost is recorded as
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. Related liabilities is shown as Payable from Restricted Assets. Specific debt service reserve
requirements are described in Note 9.
Restricted assets are composed of the following:
Cmvemmental type:'
Cash and investments -Workers compensation $ 100,000
Total governmental
$ 100,000
Business type:
Cash and investments - Debt service
$ 1,262,917
Cash and investments - Construction
123,457
Edemal receivables -Debt service
303,761
Totalbusiness
$ 1,690,135
7. Capital Assets
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 $10,000. 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. Note 6 contains the change in net assets by category for
2011.
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.
City of Bremerton / 39
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.
Property, plant and equipment of the City are depreciated using the straight line method over the following estimated
useful lives:
Buildings
50 Years
Improvements Other than Buildings — Governmental Assets
20 Years
Improvements Other than Buildings — Proprietary Assets
50 Years
Infrastructure
10 -15 Years
Plant Machinery and Equipment
20 Years
Furniture and Fixtures
20 Years
Vehicles and Similar Equipment
10 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, the unamortized portion of debt issuance costs and the city's negative net
pension obligation.
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
accrued for all employees that meet the eligibility criteria for service retirement.
10. Long -term Debt
The City issues debt to finance the purchase or construction of capital assets. Note 9 contains outstanding debt at
12/31/11 and bond and debt service requirements to maturity.
11. Deferred Revenue
This account includes amounts recognized as receivables but not revenues in governmental funds because the revenue
recognition criteria have not been met.
12. Fund Balance Classification
In the fund financial statements, governmental funds report fund balances based on the extent to which the City is bound
to observe constraints on the use of the governmental funds' resources. Fund balances are classified in the following
manner:
Nonspendable — includes amounts that are either 1} not in spendable form, or 2} legally or contractually required
to be maintained intact. Inventories, prepaid items and permanent trust are classified as nonspendable fund
balances.
Restricted — includes amounts which are constrained for specific purposes that are 1} externally imposed by
creditors, grantors, contributors, or laws or regulations of other governments, or 2} imposed by law through
enabling legislation.
40 /Financial Section
Committed - includes amounts that can be used for specific purposes with constraints imposed by formal action
of the highest level of decision - making authority. The authorization specifying the purposes for which
committed funds can be used should have the consent of both the legislative and executive branches of
government. The City operates under a Mayor - Council form of government. As Executive Officer, the Mayor
supervises the administrative process of the City and works with the City Council. The City Council enacts
ordinances and resolutions that may impose, modify or rescind fund balance commitments.
Assigned - includes amounts that are intended to be used for specific purposes, but are neither restricted nor
committed. The authority for assignment of funds is not required to be the government's highest level of
decision making authority. Furthermore, the constraints imposed on the use of assigned amounts are more
easily removed or modified than those imposed on committed fund balances. The City Council may authorize
executive officers to assign fund balances for specific purposes through Council ordinances and resolutions.
Unassigned - includes amounts that are not assigned to other funds and do not meet the criteria for being
classified as restricted, committed, or assigned. Fund balances that can be utilized for economic stabilization,
emergencies and contingencies that do not qualify as restricted or committed are reported as unassigned.
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. Under the default policy provided in GASB 54, unrestricted resources are
reduced in the following order when expenditures are incurred for purposes for which amounts in any of those
unrestricted fund balance classifications could be used: committed amounts are reduced first, followed by assigned
amounts, and then unassigned.
A minim fund balance policy has been established by the City Council that establishes target year end cash and
investment balances as a percentage of budgeted operating expenditures for the City's General, Water, Wastewater,
Stormwater and Golf Course funds. The following table shows the status at December 31, 2011.
General
Other
Fund
Funds
Total
Fund balances:
Nonspendable:
Inventory
$ 18,683 $
23,264 $
41,947
Restricted for:
Tourism promotion & facilities
48,556
79,596
128,152
Parking system
275,314
275,314
Community development block grant
371,658
371,658
Public safety
1,006,381
1,006,381
Debt service
67,559
67,559
Capital projects
2,791,688
2,791,688
Committed to:
Employee Wellness
6,153
6,153
Parks
34,944
34,944
Public Access Television
105,051
105,051
Public safety
34,648
34,648
Public art
51,230
51,230
Assigned to:
2012 Budget
65,926
65,926
Street Operations
187,985
187,985
Tourism promotion & facilities
22,166
22,166
Building Abatement
232,913
232,913
Court Improvement
3,758
3,758
Debt Service
324,160
324,160
Park Capital
195,122
195,122
Capital Improvements
79,311
79,311
Unassigned:
3,274,281
(96,866)
3,177,415
Total Fund Balances
$ 3,407,446 $
5,796,035 $
9,203,481
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. Under the default policy provided in GASB 54, unrestricted resources are
reduced in the following order when expenditures are incurred for purposes for which amounts in any of those
unrestricted fund balance classifications could be used: committed amounts are reduced first, followed by assigned
amounts, and then unassigned.
A minim fund balance policy has been established by the City Council that establishes target year end cash and
investment balances as a percentage of budgeted operating expenditures for the City's General, Water, Wastewater,
Stormwater and Golf Course funds. The following table shows the status at December 31, 2011.
City of Bremerton / 41
Target Target Balance
Fund Rate Balance 12/31/2011
General
8.5%
$ 2,866,293 $
1,986,115
Water
12%
994,696
4,801,863
Wastewater
12%
1,171,242
7,386,925
Stonnwater
12%
219,005
2,074,809
Golf Course
12%
243,480
419,454
A contingency reserve fund, for the purposes of economic stabilization, was created by the City Council to protect the
City's General Fund in the event of unforeseen and unfunded emergency requirements. The minimum fund balance is
set at $1,000,000. The proceeds of sale of all General Fund real property are committed to this purpose. Funds are to be
expended, with the unanimous vote of the City Council, only in the event of a bona fide emergency defined as a
significant crisis threatening the financial viability of the City. If the balance of the fund is less than one million dollars
a repayment plan shall be established to replenish the fund to its minim level. Balances in excess of $1,000,000 can
be used for capital purposes upon City Council approval by simple majority vote.
In May of 2011 the City Council authorized the expenditure of $1,150,000 to settle a dispute over a contingent loan
agreement between the City, Kitsap County and Kitsap Consolidated Housing Authority (Note 10). At 12/31/11 the
balance was $117,092. The fund balance of this management fund is reported as part of the General Fund. The 2012
budget includes $115,000 towards the rebuilding of the reserve amount.
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 of the aggregated differences are presented below.
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds:
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 receivables due beyond the city's 30 day
measurable and available period $ 3,179,955
Investment interest accrued beyond the city's 30 day measurable
and available period 6,611
Build America Bond subsidy beyond the city's 30 day measurable
Capital Assets of governmental funds net of depreciation $ 105,192,797
Capital Assets of Internal Service funds included in govermental activities
and available period 43,562
Deferred charge for bond issue costs 189,714
42 /Financial Section
Internal Service funds are used by management to charge the costs of certain activities to individual funds:
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 $ (34,300,000)
Less: Issuance premiums (338,513)
Add: Deferred amount on refunding 1,013,192
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 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 $ 7,285,534
Depreciation (3,556,043)
Loss on retirement of capital assets (88.116)
The issuance of long -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 statement of activities.
GO bond principal paid
Revenue bond principal paid
Principal of GO Bonds Issued
Long Tenn Notes Issued
$ 5,812,685
5,244,815
(9,675,000)
(48,239)
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:
Net assets of Internal service funds included in governmental activities $ 1,208,380
Other Long term payables (48,239)
Accrued interest payable (200,633)
City of Bremerton / 43
Change in accrued interest receivable
Change in deferred property taxes receivable
Change in court fines receivable
Change in block grant loans receivable
Change in parking /red light fines receivable
Change in BKAT contracts receivable
Change in Build America Bond subsidy receivable
Change in other post - employment benefits payable
Change in accrued interest payable
(4,805)
(14,086)
35,283
(38,688)
45,276
147,000
(34,571)
57,609
90,824
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
$ 169,378
Net Revenue of employment security activities
$ 24,554
Net Revenue of Accrued Leave activities
$ 8,206
Net revenue of information technology activities
(62,305)
Net revenue of eauimnent maintenance activities
91.606
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
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 with the Municipal Securities Rulemaking Board
Electronic Municipal Market Access (EMMA) program 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.
44 /Financial Section
Cash
FDIC or PDPC insured bank deposits $7,795,230
Cash on hand 24,605
Total Cash 7,819,835
Investments
US Agency securities
Federal National Mortgage Assn AA 2.62 2,009,760 8%
Federal Farm Credit Banks AA 1.17 4,014,320 16%
Federal Home Loan Bank AA 1.71 3,998,073 16%
Federal Home Loan Mortgage Corp AA 2.93 2,006,800 8%
Washington State Local Government Inv. Pool NR 0.13
Surplus Investable Funds 8,269,492
Bond Proceeds 20
8,269,512 32%
City of Bremerton LTGO Bonds NR 13.5 5,163,000 20%
Total Investments 25,461,465
Total Cash & Investments 33,281,300
Interest Rate Risk. Asa 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.
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The City's
investment policy limits investments to those authorized by State of Washington statutes governing the investment of public
funds. The City's investments in agency securities were rated AAA by Standard & Poor's Rating Service. The Washington
State Local Government Investment Pool which operates in a manner consistent with the section 2a -7 of the SEC's Investment
Act of 1940, is unrated.
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.
Custodial Credit Risk. The custodial credit risk for deposits is the risk that in the event of bank failure, the City's
deposits may not be recovered. The City of Bremerton's investment policy requires deposits to be in a qualified
financial institution. The definition of qualified institution is described in RCW 39.58.080 and the bank must be a
participant in the State of Washington's Public Depository Protection Commission (PDPC).
The custodial credit risk for safekeeping of securities is the risk in the event that the City would not have access to
investment holdings. The City's investment policy requires that all security transactions be conducted on a delivery
versus payment basis. Securities will be held in a third party custodial account designated by the City Treasurer.
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.
City of Bremerton / 45
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.
RCW 84.52.043 allows a city to levy taxes of up to $3.375 per $1,000 of taxable property in the city and RCW
41.14.060 allows an additional $0.225 per $1,000 for any municipal purpose, if not required to fund pension programs.
For cities annexed to a library district, such as the City, the maximum levy rate is reduced by the amount of the library
district levy. For tax year 2011, the Kitsap Regional Library District levied $0.35 per $1,000 of assessed valuation, and
therefore the City's maximum levy rate is $3.25 per $1,000 of assessed valuation. These taxes may be levied without a
vote of the people. This limitation is exclusive of a potential levy for the maintenance of a local improvement guaranty
fund, which the City does not levy.
The City's regular levy for 2011 was $2.33 per $1,000 on an assessed valuation of $2.749 billion, for a total regular levy of
$6,408,428.
Special levies, approved by the voters are not subject to the above limitations. In 2011, the City levied an additional $.80 per
$1,000 for General Obligation Bonds and Emergency Medical Services.
Article VII, Section 2 of the Washington Constitution, as amended in 1973, limits aggregate regular property tax levies
by the State and all taxing districts, except port districts and public utility districts, to $10 per $1,000 or one percent of
the true and fair value of property. RCW 84.52.050 provides the same limitation by statute.
6. Capital Assets
Capital asset activity for the year ended December 31, 2011 was as follows:
Capital assets, not being depreciated:
Land
$ 15,966,574 $
1,439,664
- $
17,406,238
Construction in progress
7,447,597
7,151,472
2,947,855
11,651,214
Total capital assets, not being depreciated
23,414,171
8,591,136
2,947,855
29,057,452
Capital assets, being depreciated:
Buildings /building improvements
56,269,758
455,343
52,677
56,672,424
Improvements other than buildings
16,881,703
1,066,102
289,620
17,658,185
Machinery and equipment
8,701,296
120,807
6,005
8,816,098
Infrastructure
34,454,683
-
-
34,454,683
Total capital assets, being depreciated
116,307,440
1,642,252
348,302
117,601,390
Less accumulated depreciation for:
Buildings /buildings improvements
8,379,699
1,151,882
34,616
9,496,965
Improvements other than buildings
7,777,791
736,897
219,565
8,295,123
Machinery and equipment
4,931,072
547,324
6,005
5,472,391
Infrastructure
17,074,875
1,126,691
-
18,201,566
Total accumulated depreciation
38,163,437
3,562,794
260,186
41,466,045
Total capital assets, being depreciated, net
78,144,003
(1,920,542)
88,116
76,135,345
Governmental activities capital assets, net
$ 101,558,174 $
6,670,594 $
3,035,971 $
105,192,797
46 /Financial Section
Capital assets, not being depreciated:
Land
$ 8,564,901 $
36,913
- $
8,601,814
Construction in progress
10,796,753
2,744,604
4,833,298
8,708,059
Total capital assets, not being depreciated
19,361,654
2,781,517
4,833,298
17,309,873
Capital assets, being depreciated:
Buildings /building improvements
50,891,385
102,326
4,773
50,988,938
Improvements other than buildings
122,917,073
7,328,409
30,167
130,215,315
Machinery and equipment
52,819,884
934,064
1,100,899
52,653,049
Total capital assets, being depreciated
226,628,342
8,364,799
1,135,839
233,857,302
Less accumulated depreciation for:
Buildings /buildings improvements
17,496,972
966,736
4,773
18,458,935
Improvements other than buildings
36,562,537
2,396,206
8,445
38,950,298
Machinery and equipment
22,459,701
2,297,717
961,358
23,796,060
Total accumulated depreciation
76,519,210
5,660,659
974,576
81,205,293
Total capital assets, being depreciated, net
150,109,132
2,704,140
161,263
152,652,009
Business -type activities Capital assets, net
$ 169,470,786 $
5,485,657 $
4,994,561 $
169,961,882
Depreciation expense was charged to functions /programs of the primary government as follows:
General government $ 227,466
Public safety 616,024
Transportation, including depreciation of general infrastructure assets 1,084,458
Economic environment 348
Culture and recreation 1,627,746
Capital assets held by the government's internal service funds
are charged to the various functions based on their usage of the assets 6,752
Total depreciation expense - Governmental activities $ 3,562,794
Water $ 1,687,912
Wastewater 3,093,237
Stormwater 90,764
Golf 170,534
Capital assets held by the government's internal service funds
are charged to the various functions based on their usage of the assets 618,212
Total depreciation expense - Business -type activities $ 5,660,659
Construction Commitments:
At December 31, 2011 the City had several construction projects underway. The following table contains the projects
and status at year end.
City of Bremerton / 47
Remaining
Project Spent to Date Commitment
Ultraviolet Treatment Plant 377,673 377,673
CE -1 upgrade 331,284 331,284
Well #14 Replacement 30,147 56,009
Park Plaza Construction 6,565,854 133,509
$ 7,304,958 $ 898,475
7. Pension Plans
Substantially all City full -time and qualifying part-time employees participate in one of the following statewide retirement
systems administered by the Washington State Department of Retirement Systems, under cost - sharing multiple - employer
public employee defined 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, Communications Unit, PO Box 48380, Olympia, WA 98504 -8380; or it may
be downloaded from the DRS website at www.drs.wa.gov The following disclosures are made pursuant to GASB Statements
27, Accounting for Pensions by State and Local Government Employers and No. 50 Pension Disclosures, an Amendment of
GASB Statements No. 25 and No. 27.
Public Employees' Retirement System (PERS) Plans 1, 2 and 3
Plan Description
The Legislature established PERS in 1947. Membership in the system includes: elected officials; state employees; employees
of the Supreme, Appeals, and Superior courts (other than judges currently in the Judicial Retirement System); employees of
legislative committees; community and technical colleges, college and university employees not participating in higher
education retirement programs; judges of district and municipal courts; and employees of local governments. PERS retirement
benefit provisions are established in Chapters 41.34 and 41.40 RCW and may be amended only by the State Legislature.
PERS is a cost - sharing multiple - employer retirement system comprised of three separate plans for membership purposes: Plans
1 and 2 are defined benefit plans and Plan 3 is a defined benefit plan with a defined contribution component.
PERS members 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 exercised an option to transfer their membership to Plan 3. PERS members 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 irrevocable 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 fail to
choose within 90 days default to PERS Plan 3. Notwithstanding, PERS Plan 2 and Plan 3 members may opt out of plan
membership if terminally ill, with less than five years to live.
PERS Plan 1 and Plan 2 defined benefit retirement benefits are financed from a combination of investment earnings and
employer and employee contributions.
PERS Plan 1 members are vested after the completion of five years of eligible service. Plan 1 members are eligible for
retirement 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
monthly benefit is 2 percent of the average final compensation (AFC) per year of service. (AFC is the monthly average of the
24 consecutive highest-paid service credit months.) The retirement benefit may not exceed 60 percent of AFC. The monthly
benefit is subject to a minimum of PERS Plan 1 retirees who have 25 years of service and have been retired 20 years, or who
have 20 years service and have been retired 25 years. Plan 1 members retiring from inactive status prior to the age of 65 may
receive actuarially reduced benefits. If a survivor option is chosen, the benefit is further reduced. A cost -of- living allowance
(COLA) was granted at age 66 based upon years of service times the COLA amount. This benefit was eliminated by the
Legislature, effective July 1, 2011. Plan 1 members may elect to receive an optional COLA that provides an automatic annual
adjustment based on the Consumer Price Index. The adjustment is capped at 3 percent annually. To offset the cost of this
annual adjustment, the benefit is reduced.
48 /Financial Section
PERS Plan 1 provides duty and non -duty disability benefits. Duty disability retirement benefits for disablement prior to the age
of 60 consist of a temporary life annuity payable to the age of 60. The allowance amount is $350 a month, or two- thirds of the
monthly AFC, whichever is less. The benefit is reduced by any workers' compensation benefit and is payable as long as the
member remains disabled or until the member attains the age of 60. A member with five years of covered employment is
eligible for non -duty disability retirement. Prior to the age of 55, the allowance amount is 2 percent of the AFC for each year of
service reduced by 2 percent for each year the member's age is less than 55. The total benefit is limited to 60 percent of the
AFC and is actuarially reduced to reflect the choice of a survivor option. A cost-of-living allowance was granted at age 66
based upon years of service times the COLA amount. This benefit was eliminated by the Legislature, effective July 1, 2011.
Plan 1 members may elect to receive an optional COLA that provides an automatic annual adjustment based on the Consumer
Price Index.. The adjustment is capped at 3 percent annually. To offset the cost of this annual adjustment, the benefit is
reduced.
PERS Plan 1 members can receive credit for military service. Members can also purchase up to 24 months of service credit lost
because of an on-the-job injury.
PERS Plan 2 members are vested after completion of five years of eligible service. Plan 2 members are eligible for normal
retirement at the age of 65 with five years service. The monthly benefit is 2 percent of the AFC per year of service. (AFC is the
monthly average of the 60 consecutive highest-paid service months.)
PERS Plan 2 members who have at least 20 years of service credit and are 55 years of age or older are eligible for early
retirement with a reduced benefit. The benefit is reduced by an early retirement factor (ERF) that varies according to age, for
each year before age 65.
PERS Plan 2 members who have 30 or more years of service credit and are at least 55 years old can retire under one of two
provisions:
• With a benefit that is reduced by 3 percent for each year before age 65.
• With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter retum -to -work rules.
PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor option. There is no cap
on years of service credit; and a cost-of-living allowance is granted (based on the Consumer Price Index), capped at 3 percent
annually.
The surviving spouse or eligible child or children of a PERS Plan 2 member who dies after leaving eligible employment having
earned ten years of service credit may request a refund of the member's accumulated contributions.
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 monthly benefit that is 1 percent of the AFC
per year of service. (AFC is the monthly average of the 60 consecutive highest -paid service months.)
Effective June 7, 2006, PERS Plan 3 members are vested in the defined benefit portion of their plan after ten years of service; or
after five years of service, if twelve months of that service are earned after age 44; or after five service credit years earned in
PERS Plan 2 prior to June 1, 2003. Plan 3 members are immediately vested in the defined contribution portion of their plan.
Vested Plan 3 members are eligible for normal retirement at age 65, or they may retire early with the following conditions and
benefits:
• If they have at least ten service years and are 55 years old, the benefit is reduced by an ERF that varies with age, for
each year before 65.
• If they have 30 service credit years and are at least 55 years old, they have the choice of a benefit that is reduced by 3
percent for each year before age 65; or a benefit with a smaller (or no) reduction factor (depending on age) that
imposes stricter return -to -work rules.
PERS Plan 3 defined benefit retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor option.
There is no cap on years of service credit and Plan 3 provides the same cost -of- living allowance as Plan 2.
PERS Plan 3 defined contribution retirement benefits are solely dependent upon contributions and the results of investment
activities.
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 Director of the Department of Retirement Systems.
City of Bremerton / 49
PERS Plan 2 and Plan 3 provided disability benefits. There is no minimum amount of service credit required for eligibility.
The Plan 2 monthly benefit amount is 2 percent of the AFC per year of service. For Plan 3, the monthly benefit amount is 1
percent of the AFC per year of service.
These disability benefit amounts are actuarially reduced for each year that the member's age is less than 65, and to reflect the
choice of a survivor option. There is no cap on years of service credit, and a cost -of- living allowance is granted (based on the
Consumer Price Index) capped at 3 percent annually.
PERS Plan 2 and Plan 3 members may have up to ten years of interruptive military service credit; five years at no cost and five
years that may be purchased by paying the required contributions. Effective July 24, 2005, a member who becomes totally
incapacitated for continued employment while serving the uniformed services, or a surviving spouse or eligible children, may
apply for interruptive military service credit. Additionally, PERS Plan 2 and Plan 3 members can also purchase up to 24
months of service credit lost because of an on-the-job injury.
PERS members may also purchase up to five years of additional service credit once eligible for retirement. This credit can only
be purchased at the time of retirement and can be used only to provide the member with a monthly annuity that is paid in
addition to the member's retirement benefit.
Beneficiaries of a PERS Plan 2 or Plan 3 member with ten years of service who is killed in the course of employment receive
retirement benefits without actuarial reduction, if the member was not at normal retirement age at death. This provision applies
to any member killed in the course of employment, on or after June 10, 2004, if found eligible by the Department of Labor and
Industries.
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a PERS member who dies in the
line of service as a result of injuries sustained in the course of employment, or if the death resulted from an occupational disease
or infection that arose naturally and proximately out of said member's covered employment, if found eligible by the
Department of Labor and Industries.
.Judicial Benefit Multiplier
During January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to participate in the
Judicial Benefit Multiplier Program (JBM) enacted in 2006. Justices and judges in PERS Plan 1 and 2 were able to make a
one -time irrevocable election to pay increased contributions that would fund a retirement benefit with a 3.5 percent multiplier.
The benefit would be capped at 75 percent of AFC. Judges in PERS Plan 3 could elect a 1.6 percent of pay per year of service
benefit, capped at 37.5 percent of AFC.
Members who chose to participate in JBM would: accrue service credit at the higher multiplier beginning with the date of their
election; be subject to the benefit cap of 75 percent of AFC, pay higher contributions; stop contributing to the Judicial
Retirement Account (JRA); and be given the option to increase the multiplier on past judicial service. Members who did not
choose to participate would: continue to accrue service credit at the regular multiplier; continue to participate in JRA, if
applicable; never be a participant in the JBM Program; and continue to pay contributions at the regular PERS rate.
Newly elected or appointed justices and judges who chose to become PERS members on or after January 1, 2007, or who had
not previously opted into PERS membership, were required to participate in the JBM Program. Members required into the
JBM Program would: return to prior PERS Plan if membership had previously been established; be mandated into Plan 2 and
not have a Plan 3 transfer choice, if a new PERS member; accrue the higher multiplier for all judicial service; not contribute to
JRA; and not have the option to increase the multiplier for past judicial service.
Statewide there are 1,179 participating employers in PERS. Membership in PERS consisted of the following as of the latest
actuarial valuation date for the plans of June 30, 2010:
Retirees and beneficiaries receiving benefits
76,889
Terminated plan members entitled to but not yet receiving benefits
28,860
Active plan members vested
105,521
Active plan members non - vested
51,005
Total
262,275
Funding Policy
Each biennium, the state Pension Funding Council adopts PERS Plan 1 employer contribution rates, PERS Plan 2 employer
and employee contribution rates, and PERS Plan 3 employer contribution rates. Employee contribution rates for Plan 1 are
established by statute at 6 percent for state agencies and local government unit employees, and at a 7.5 percent for state
50 /Financial Section
government elected officials. 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 defined benefit portion of Plan 3. All
employers are required to contribute at the level established by the Legislature. Under PERS Plan 3, employer contributions
finance the defined benefit portion of the plan and member contributions finance the defined contribution portion. The Plan 3
employee contribution rates range from 5 percent to 15 percent, based on member choice. Two of the options are graduated
rates dependent on the employee's age. As a result of the implementation of the Judicial Benefit Multiplier Program in January
2007, a second tier of employer and employee rates was developed to fund, along with investment earnings, the increased
retirement benefits of those justices and judges that participate in the program.
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, 2011, are as
follows:
Members Not Participating in JBM:
* The employer rates include the employer administrative expense fee currently set at 0.16 %.
** The employer rate for state elected officials is 10.80% for Plan 1 and 7.25% for Plan 2 and 3.
** * Plan 3 defined benefit portion only.
** The employee rate for state elected officials is 7.50% for Plan 1 and 4.64% for Plan 2.
* * * ** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member.
Members Participating in JBM:
PERS Plan I
PERS Plan 2'
PERS Plan 3
Employer *
7.25 % **
7.25 % **
7.25 % * **
Employee
6.00 % * * **
4.64 % * * **
* * * **
* The employer rates include the employer administrative expense fee currently set at 0.16 %.
** The employer rate for state elected officials is 10.80% for Plan 1 and 7.25% for Plan 2 and 3.
** * Plan 3 defined benefit portion only.
** The employee rate for state elected officials is 7.50% for Plan 1 and 4.64% for Plan 2.
* * * ** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member.
Members Participating in JBM:
*The employer rates include the employer administrative expense fee currently set at 0.16 %.
* *Plan 3 defined benefit portion only.
** *Minimum rate.
Both the City and the employees made the required contributions. The City's required contributions for the years ended
December 31 were as follows:
PERS Plan I
PERS Plan 2
PERS Plan 3
Employer -State Agency*
9.75%
9.75%
9.75 % **
Employer -Local Agency*
7.25%
7.25%
7.25 % **
Employee -State Agency
9.76%
9.10%
7.50 % **
Employee -Local Agency
12.26%
11.60%
7.50 % **
*The employer rates include the employer administrative expense fee currently set at 0.16 %.
* *Plan 3 defined benefit portion only.
** *Minimum rate.
Both the City and the employees made the required contributions. The City's required contributions for the years ended
December 31 were as follows:
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plans 1 and 2
Plan Description
The Legislature established LEOFF in 1970. Membership in the system includes all full -time, fully compensated, local law
enforcement commissioned officers, firefighters and, as of July 24, 2005, emergency medical technicians LEOFF membership
is comprised primarily of non -state employees, with Department of Fish and Wildlife enforcement officers, who were first
included prospectively effective July 27, 2003, being an exception. LEOFF retirement benefit provisions are established in
Chapter 41.26 RCW and may be amended only by the State Legislature.
PERS Plan I
PERS Plan 2
PERS Plan 3
2011
$ 59,297
$ 690,533
$ 88,187
2010
$ 63,887
$ 596,771
$ 80,024
2009
$ 99,725
$ 778,836
$ 106,514
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plans 1 and 2
Plan Description
The Legislature established LEOFF in 1970. Membership in the system includes all full -time, fully compensated, local law
enforcement commissioned officers, firefighters and, as of July 24, 2005, emergency medical technicians LEOFF membership
is comprised primarily of non -state employees, with Department of Fish and Wildlife enforcement officers, who were first
included prospectively effective July 27, 2003, being an exception. LEOFF retirement benefit provisions are established in
Chapter 41.26 RCW and may be amended only by the State Legislature.
City of Bremerton / 51
LEOFF is a cost - sharing multiple - employer retirement system comprised of two separate defined benefit plans. LEOFF
members 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 defined benefit retirement benefits are financed from a combination of investment earnings, employer and employee
contributions, and a special funding situation in which the state pays through state legislative appropriations.
Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide governance of LEOFF
Plan 2. The Board's duties include adopting contribution rates and recommending policy changes to the Legislature for the
LEOFF Plan 2 retirement plan.
LEOFF Plan 1 members are vested after the completion of 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 of final average salary (FAS) is as follows:
Term of Service
Percent of Final Average Sala
20 or more years
2.0%
10 but less than 20 years
1.5%
5 but less than 10 years
1.0%
The FAS 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. A cost-of-living allowance is granted (based on the Consumer Price Index).
LEOFF Plan 1 provides death and disability benefits. Death benefits for survivors of Plan 1 members on active duty consist of
the following: (1) If eligible spouse, 50 percent of the FAS, plus 5 percent of FAS for each eligible surviving child, with a
limitation on the combined allowances of 60 percent of the FAS; or (2) If no eligible spouse, eligible children receive 30
percent of FAS for the first child plus 10 percent for each additional child, subject to a 60 percent limitation of FAS, divided
equally.
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a LEOFF Plan 1 member who
dies as a result of injuries or illness sustained in the course of employment, if found eligible by the Department of Labor and
Industries.
The LEOFF Plan 1 disability allowance is 50 percent of the FAS plus 5 percent for each child up to a maximum of 60 percent.
Upon recovery from disability before the age of 50, a member is restored to service with full credit for service while disabled.
Upon recovery after the age of 50, the benefit continues as the greater of the member's disability allowance or service
retirement allowance.
LEOFF Plan 1 members may purchase up to five years of additional service credit once eligible for retirement. This credit can
only be purchased at the time of retirement and can be used only to provide the member with a monthly annuity that is paid in
addition to member's allowance.
LEOFF Plan 2 members are vested after the completion of 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 FAS per year of service.
(FAS is based on the highest consecutive 60 months.) Plan 2 members who retire prior to the age 53 receive reduced benefits.
Benefits are actuarially reduced for each year that the benefit commences prior to age 53 and to reflect the choice of a survivor
option. If the member has at least 20 years of service and is age 50, the reduction is three percent for each year prior to age 53.
A cost-of-living allowance is granted (based on the Consumer Price Index), capped at 3 percent annually.
LEOFF Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The Plan 2
allowance amount is 2 percent of the FAS for each year of service. Benefits are actuarially reduced for each year that the
member's age is less than 53, unless the disability is duty - related, and to reflect the choice of a survivor option. If the member
has at least 20 years of service and is age 50, the reduction is 3 percent for each year prior to age 53. A catastrophic disability
benefit equal to 70 percent of FAS, subject to offsets for workers' compensation and Social Security disability benefits
received, is also available to those LEOFF Plan 2 members who are severely disabled in the line of duty and incapable of future
substantial gainful employment in any capacity.
Effective June 2010, benefits to LEOFF Plan 2 members who are catastrophically disabled include payment of eligible health
care insurance premiums.
52 /Financial Section
Members of LEOFF Plan 2 who leave service because of line of duty disability are allowed to withdraw 150 percent of
accumulated member contributions. This withdrawal benefit is not subject to federal income tax. Alternatively, members of
LEOFF Plan 2 who leave service because of a line of duty disability may be eligible to received a retirement allowance of at
least 10 percent of FAS and 2 percent per year of service beyond five years. The first 10 percent of the FAS is not subject to
federal income tax.
LEOFF Plan 2 retirees may return to work in an eligible position covered by another retirement system, choose membership in
that system and suspend their pension benefits, or not choose membership and continue receiving pension benefits without
interruption.
LEOFF Plan 2 members who apply for retirement may purchase up to five years of additional service credit. The cost of this
credit is the actuarial equivalent of the resulting increase in the member's benefit.
LEOFF Plan 2 members can receive service credit for military service that interrupts employment. Additionally, LEOFF Plan 2
members who become totally incapacitated for continued employment while servicing in the uniformed services may apply for
interruptive military service credit. Should any such member die during this active duty, the member's surviving spouse or
eligible child(ren) may request service credit on behalf of the deceased member.
LEOFF Plan 2 members may also purchase up to 24 consecutive months of service credit for each period of temporary duty
disability.
Beneficiaries of a LEOFF Plan 2 member who is killed in the course of employment receive retirement benefits without
actuarial reduction, if found eligible by the Director of the Department of Labor and Industries.
Benefits to eligible surviving spouses and dependent children of LEOFF Plan 2 members killed in the course of employment
include the payment of on -going health care insurance premiums paid to the Washington state Health Care Authority.
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a LEOFF Plan 2 member who
dies as result of injuries or illness sustained in the course of employment, if found eligible by the Department of Labor and
Industries.
There are 374 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial
valuation date for the plans of June 30, 2010:
Retirees and beneficiaries receiving benefits
9,647
Terminated plan members entitled to but not yet receiving benefits
782
Active plan members vested
13,420
Active plan members non - vested
3,656
Total
27,505
Funding Policy
Starting on July 1, 2000, LEOFF Plan 1 employers and employees 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.
LEOFF Plan 2 employers and employees are required to pay at the level adopted by LEOFF Plan 2 Retirement Board. 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 LEOFF Plan 2 in accordance with the requirements of the Pension
Funding Council and the LEOFF Plan 2 Retirement Board. However, this special funding situation is not mandated by the state
constitution and this funding requirement could be returned to the employers by a change of statute.
The required contribution rates expressed as a percentage of current year covered payroll, as of December 31, 2011, are as
follows:
*The employer rates include the employer administrative expense fee currently set at 0.16 %.
LEOFF Plan 1
LEOFF Plan 2
Employer*
0.16%
5.24 % **
Employee
0.00%
8.46%
State
N/A
3.38%
*The employer rates include the employer administrative expense fee currently set at 0.16 %.
City of Bremerton / 53
"The employer rate for ports and universities is 8.62%
Both the City and the employees made the required contributions. The City's required contributions for the years ended
December 31 were as follows:
Public Safety Employees' Retirement System (PSERS) Plan 2
Plan Description
The Legislature created PSERS in 2004 and the system became effective July 1, 2006. 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 1, 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 of the PSERS
eligibility criteria. PSERS retirement benefit provisions are established in Chapter 41.37 RCW and may be amended
only by the State Legislature.
PSERS is a cost - sharing multiple - employer retirement system comprised of a single defined benefit plan, PSERS Plan
2.
PSERS defined benefit retirement benefits are financed from a combination of investment earnings and employer and
employee contributions.
A covered employer is one that participates in PSERS. Covered employers include the following: State of Washington
agencies: Department of Corrections, Department of Natural Resources, Parks and Recreation Commission, Gambling
Commission, Washington State Patrol, and Liquor Control Board; Correction Departments of Washington state
counties; and Correction Departments of Washington state cities except for Seattle, Tacoma and Spokane; and
Interlocal corrections agencies.
To be eligible for PSERS, an employee must work on a full -time basis and have one of the following:
• Completed a certified criminal justice training course with authority to arrest, conduct criminal investigations,
enforce the criminal laws of Washington and carry a firearm as part of the job
• Primary responsibility to ensure the custody and security of incarcerated or probationary individuals
• Function as a Washington peace officer, as defined in RCW 10.93.020
• Primary responsibility to supervise eligible members who meet the above criteria.
PSERS Plan 2 members are vested after completion of five years of eligible service. 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 (AFC) per year of service. The AFC is the monthly average
of the member's 60 consecutive highest -paid service credit months, excluding any severance pay such as lump -sum
payments for deferred sick leave, vacation or annual leave. Plan 2 members who retire 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 (based on the Consumer Price Index), capped at 3 percent annually.
PSERS Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility.
Eligibility is based on the member being totally incapacitated for continued employment with a PSERS employer and
leaving that employment as a result of the disability. The disability allowance is 2 percent of the average final
compensation (AFC) for each year of service. AFC is based on the member's 60 consecutive highest creditable months
of service. Service credit is the total years and months of service credit at the time the member separates from
�LEOFF Plan 1
LEOFF Plan 2
2011
$ 758
$ 555,170
2010
$ 736
$ 547,704
2009
$ 738
$ 556,767
Public Safety Employees' Retirement System (PSERS) Plan 2
Plan Description
The Legislature created PSERS in 2004 and the system became effective July 1, 2006. 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 1, 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 of the PSERS
eligibility criteria. PSERS retirement benefit provisions are established in Chapter 41.37 RCW and may be amended
only by the State Legislature.
PSERS is a cost - sharing multiple - employer retirement system comprised of a single defined benefit plan, PSERS Plan
2.
PSERS defined benefit retirement benefits are financed from a combination of investment earnings and employer and
employee contributions.
A covered employer is one that participates in PSERS. Covered employers include the following: State of Washington
agencies: Department of Corrections, Department of Natural Resources, Parks and Recreation Commission, Gambling
Commission, Washington State Patrol, and Liquor Control Board; Correction Departments of Washington state
counties; and Correction Departments of Washington state cities except for Seattle, Tacoma and Spokane; and
Interlocal corrections agencies.
To be eligible for PSERS, an employee must work on a full -time basis and have one of the following:
• Completed a certified criminal justice training course with authority to arrest, conduct criminal investigations,
enforce the criminal laws of Washington and carry a firearm as part of the job
• Primary responsibility to ensure the custody and security of incarcerated or probationary individuals
• Function as a Washington peace officer, as defined in RCW 10.93.020
• Primary responsibility to supervise eligible members who meet the above criteria.
PSERS Plan 2 members are vested after completion of five years of eligible service. 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 (AFC) per year of service. The AFC is the monthly average
of the member's 60 consecutive highest -paid service credit months, excluding any severance pay such as lump -sum
payments for deferred sick leave, vacation or annual leave. Plan 2 members who retire 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 (based on the Consumer Price Index), capped at 3 percent annually.
PSERS Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility.
Eligibility is based on the member being totally incapacitated for continued employment with a PSERS employer and
leaving that employment as a result of the disability. The disability allowance is 2 percent of the average final
compensation (AFC) for each year of service. AFC is based on the member's 60 consecutive highest creditable months
of service. Service credit is the total years and months of service credit at the time the member separates from
54 /Financial Section
employment. Benefits are actuarially reduced for each year that the member's age is less than 60 (with ten or more
service credit years in PSERS), or less than 65 (with fewer than ten service credit years).
PSERS Plan 2 members can receive service credit for military service that interrupts employment. Additionally,
PSERS members who become totally incapacitated for continued employment while serving in the uniformed services
may apply for interruptive military service credit. Should any member die during this active duty, the member's
surviving spouse or eligible child(ren) may request service credit on behalf of the deceased member.
PSERS members may also purchase up to 24 consecutive months of service credit for each period of temporary duty
disability.
Beneficiaries of a PSERS Plan 2 member with ten years of service who is killed in the course of employment receive
retirement benefits without actuarial reduction, if the member was not at normal retirement age at death. This provision
applies to any member killed in the course of employment, if found eligible by the Director of the Department of Labor
and Industries.
A one -time duty - related death benefit is provided to the estate (or duly designated nominee) of a PSERS member who dies as a
result of injuries or illness sustained in the course of employment, if found eligible by the Department of Labor and Industries.
There are 76 participating employers in PSERS. Membership in PSERS consisted of the following as of the latest
actuarial valuation date for the plan of June 30, 2010:
Retirees and beneficiaries receiving benefits
7
Terminated plan members entitled to but not yet receiving benefits
0
Active plan members vested
0
Active plan members non - vested
4,210
Total
4,217
Each biennium, the state Pension Funding Council adopts PSERS 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.
The required contribution rates expressed as a percentage of current -year covered payroll, as of December 31, 2011, are
as follows:
PSERS Plan 2
Employer* 8.86%
Employee 6.36%
*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 years ended
December 31 were as follows:
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.
PSERS Plan 2
2011
$ 9,864
2010
$ 9,111
2009
$ 9,627
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.
City of Bremerton / 55
Following is a summary of the City's 2011 insurance coverage and risk retention:
Coverage Limit
Self- Insured
Risk
Per Occurrence
Retention
Insurer
Excess liability
$5,000,000
$250,000
Ironshore Specialty Insurance Company
Excess workers' compensation
Statutory
450,000
Safety National Casualty Corporation
Blanket property
100,000,000
100,000
Affiliated FM Insurance Company
Employee blanket bond
1,000,000
25,000
Great American Insurance Company
Pollution legal liability
1,000,000
100,000
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 -tern liability of the fund for both reported and
unreported losses. As of December 31, 2011, the Risk Management Fund had cash and investment reserves of $1,822,205. In
September 2010 the City cash - funded a long term workers' compensation pension with the Department of Labor & Industries
in the amount of $468,669. The Statement of Net Assets for the Risk Management fund includes the unspent portion of this
amount in prepayments. Long -tern fund liabilities have been estimated at $1,226,363. 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
$533,320.
The following table shows the actual claims activity for 2010 and 2011:
Claims liability - beginning of year
Claims incurred
Estimate change prior years
Payment on claims
$ 1,634,164
588,997
(72,882)
(480,876)
$ 1,669,403
1,304,200
(877,318)
(336,602)
Claims liability - end of year
9. Long -term Debt
A. Long Term Debt
1,669,403
1,759,683
The City issues general obligation and revenue bonds to finance the purchase or construction of capital assets. Bonded
indebtedness has also been entered into 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:
56 /Financial Section
The annual debt service requirements to maturity for general obligation bonds are as follows:
2012 $ 1,517,500 $
Maturity
Interest
Outstanding
2013 9,892,500
Date
Rate
12/31/2011
2002 Public Safety UTGO
12/01/27
2.5 / 5.25 $
425,000
Government Center Real Estate Contract
06/01/34
1.6/5
5,465,000
2005 Sports & Public Works Complex Ref LTGO
12/01/12
3.69
265,000
2009 LTGO Refunding
12/31/28
3.0 / 4.5
5,163,000
2010 LTGO BABS
09/01/35
3.61
6,760,000
2010 UTGO Refunding
12/01/27
3.07
9,860,000
2010 LTGO (B) BABS
12/01/30
3.42
2,220,000
2010 YMCA Pool Improvements
12/31/20
4.00
13,239
2011 LTGO BAN
07/29/13
Variable
9,305,000
2011 Promissory Note - Kitsap County
05/16/14
0
35,000
Total General Obligation Bonds and Notes
Date
$
39,511,239
The annual debt service requirements to maturity for general obligation bonds are as follows:
2012 $ 1,517,500 $
1,193,122 $
105,000 $
180,705
2013 9,892,500
1,136,614
105,000
177,030
2014 1,03 7,500
1,016,095
200,000
198,120
2015 1,025,000
990,612
220,000
190,120
2016 1,062,500
958,842
245,000
203,985
2017 -2021 5,795,739
4,203,523
1,511,000
835,515
2022 -2026 6,930,000
2,898,995
1,894,000
461,880
2027 -2031 4,615,000
1,376,007
883,000
60,030
2032 -2035 2,472,500
325,325
Total $ 34,348,239 $
14,099,135 $
5,163,000 $
2,307,385
Revenue bonds and loans currently outstanding are as follows:
Maturity
Interest
Outstanding
Date
Rate
12/31/2011
1994 PWTF Loan - Warren Ave CSO
07/01/14
1.0 $
478,818
1995 PWTF Loan WWTP improvements
07/01/15
1.0
740,935
1996 PWTF Loan Callow Ave CSO I
07/01/16
1.0
757,227
1997 PWTF Loan Callow Ave CSO II
07/01/17
1.0
211,512
1998 PWTF Loan SR 303 water main
07/01/18
1.0
1,160,527
1999 PWTF Loan Tracyton water sys ph2
07/01/19
2.0
79,260
1999 PWTF Loan CSO design
07/01/20
1.0
390,340
2000 PWTF Loan Multi -Basin CSO
07/01/20
1.0
1,343,932
2000 PWTF Loan Callow CSO 3 -5
07/01/20
1.0
2,010,866
2001 PWTF Loan East Bremerton CSO
07/01/21
0.5
1,583,334
2003 PWTF Loan Anderson Cove Basin 12
07/01/23
0.5
346,187
2003 PWTF Loan Naval Avenue
07/01/23
4.0
157,895
2004 PWTF Loan Brentwood storm drain red
07/01/24
4.0
128,235
2004 PWTF Loan Pacific Ave Basin CSO
07/01/24
0.5
909,706
City of Bremerton / 57
Revenue bond and loan debt service requirements to maturity are as follows:
Year Ending
December 31
2012
2013
2014
2015
2016
2017 -2021
2022 -2026
2027 -2030
Governmental Activities
Principal Interest
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total $ - $ -
Business Activities
Principal
Maturity
Interest
Outstanding
4,192,045
Date
Rate
12/31/2011
2006 PWTF Loan WWTP upgrade
07/01/25
0.5
149,415
2007 PWTF Anderson Cove sewer PS CW1
07/01/27
0.5
568,421
2007 PWTF WWTP upgrades
07/01/27
0.5
2,607,366
1994 CCWF Loan Callow Ave CSO design
05/01/17
0.0
204,988
1997 CCWF Loan Callow Ave CSO I
07/31/18
4.8
1,233,994
1998 DWSRF Loan corrosion control facility
10/01/18
4.0
385,117
2009 DWSRF UV Treatment Upgrade (ARRA)
10/1/17
0.0
5,769,511
2001 DWSRF Loan Tracyton WD upgrade
10/01/21
2.5
1,395,823
2002 DWSRF Loan Eastside flow & pressure
10/1/22
2.5
671,222
2002 DWSRF Loan Casad Dam seismic upgrade
10/1/22
2.5
432,034
2003 DWSRF Loan Casad Dam intake tower
10/01/23
1.5
52,810
2003 DWSRF Loan Pump Station 4 upgrade
10/01/23
1.5
691,335
2004 DWSRF Loan Anderson Creek
10/01/24
1.5
69,963
2004 DWSRF Loan seismic upgrades
10/01/24
1.5
367,878
1999 WPCRF Loan CSO plan update
12/31/22
1.5
150,921
1999 WPCRF Loan Anderson Cove CSO
02/27/21
1.5
502,479
1999 WPCRF Loan Callow Ave CSO final
12/31/22
1.5
349,031
2002 WPCRF Loan Anderson CV CSO red
1/23/22
1.5
367,713
2002 WPCRF Loan Cherry /Trenton CSO red
10/15/24
1.5
716,473
2002 WPCRF Loan Trenton pump station
10/15/24
1.5
716,011
2002 WPCRF Loan Tracyton Beach CSO
12/31/25
1.5
431,506
2002 WPCRF Loan Anderson Cove Basin 12
12/31/26
1.5
201,757
2003 WPCRF Pacific Ave CSO red -sep
6/30/24
1.5
221,240
2003 WPCRF Loan Pacific Ave CSO reduction
12/31/27
1.5
882,476
2004 WPCRF Loan Cherry /Trenton CSO red -1
12/31/26
1.5
874,891
2007 WPCRF WWTP upgrade
1/1/29
2.6
574,477
2009 WPCRF Gorst Sewerage Constuction
12/31/30
1.4
606,009
2009 WPCRF Gorst Septic System Design
12/31/30
2.9
112,155
2009 WPCRF Gorst Sewerage Design
12/31/30
1.4
566,756
2007 W/S Refunding Revenue bond
12/01/21
4.3
3,925,000
Total revenue bonds and loans
$
36,097,546
Revenue bond and loan debt service requirements to maturity are as follows:
Year Ending
December 31
2012
2013
2014
2015
2016
2017 -2021
2022 -2026
2027 -2030
Governmental Activities
Principal Interest
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Total $ - $ -
Business Activities
Principal
Interest
$ 3,026,205 $
549,847
4,192,045
495,966
4,217,150
426,867
4,088,145
385,043
3,894,029
329,556
12,456,034
893,843
3,485,764
155,066
738,174
18,686
$ 36,097,546 $
3,254,874
58 /Financial Section
On February 20, 2003, the City issued $10,865,000 principal amount of Weekly Rate Demand Revenue Bonds, 2003,
(Kitsap Regional Conference Center Parking Garage). Those bonds were secured by a letter of credit from Bank of
America (the `Bank ") that initially expired on February 10, 2006, and was extended. The current letter of credit expired
on August 10, 2011. On August 1, 2011 the letter of credit facility was replaced by issuance of a $9,675,000 limited tax
general obligation bond anticipation note due on August 1, 2013.
The interest rate on the 2011 BAN is based on the BBA LIBOR Daily Floating Rate and is computed on the principal
amount outstanding on the basis of a 360 day year and the actual days elapsed. The effective rate at December 31, 2011
was 1.16 %.
In 2009 the City was awarded a $6,060,000 Drinking Water Assistance loan, funded through the American Recovery and
Reinvestment Act of 2009 for the design and construction of a UV Treatment and Chlorine disinfection Facility. Terns
of the loan provide that at project completion, the lesser of the loan amount less the loan fee or the actual eligible costs
less the loan fee will be forgiven. The outstanding balance on this loan at 12/31/11 was $5,769,519. The project is
scheduled for completion in 2012.
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, 2011, the city has $391,719 available in debt service funds to service the general bonded debt.
Restricted assets in proprietary funds contain $1,690,135 in sinking funds and reserves as required by bond indentures.
B. Refunded Debt
In prior years, the city defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable
trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the
liability for defeased bonds are not included in the city's financial statements. At December 31, 2011, $9,315,000 of
bonds outstanding are consider defeased.
C. Changes in Long Term Liabilities
During the year ended December 31, 2011, the following changes occurred in long -term liabilities:
Governmental Activities:
Bonds payable:
General obligation bonds
Revenue bonds
Notes Payable
Add unamortized premiums
Less deferred refunding expense
Total bonds payable:
Claims and judgments
Compensated absences
Governmental activity
long -term liabilities:
$ 30,437,685
$ 9,675,000
$ 5,812,685
$ 34,300,000
$ 1,517,500
5,244,815
-
5,244,815
-
-
-
48,239
-
48,239
-
365,584
-
27,071
338,513
26,558
(1,086,563)
-
(73,371)
(1,013,192)
(73,371)
34,961,521
9,723,239
11,011,200
33,673,560
1,470,687
1,669,403
1,304,200
1,213,920
1,759,683
533,320
1,964,814
2,241,331
2,037,971
2,168,174
88,982
$ 38,595,738
$ 13,268,770
$ 14,263,091
$ 37,601,417
$ 2,092,989
City of Bremerton / 59
Business -type Activities:
Bonds payable:
General obligation bonds
Revenue bonds
Less deferred refunding expense
Total bonds payable:
Intergovernmental loans
Note payable
Compensated Absences
Business -type activity
long -term liabilities:
$ 5,268,000 $ -
$ 105,000
$ 5,163,000
$ 105,000
4,260,000 -
335,000
3,925,000
350,000
(255,053) -
(25,505)
(229,548)
(25,505)
9,272,947 -
414,495
8,858,452
429,495
31,927,970 2,990,657
2,746,073
32,172,546
2,676,205
111,233 -
111,233
-
-
542,298 448,922
435,681
555,538
30,620
$ 41,854,448 $ 3,439,579
$ 3,707,482
$ 41,586,536
$ 3,136,320
The Risk Management, Equipment Maintenance and Information Technology internal service funds predominantly serve
the governmental funds. Accordingly, long -term liabilities for them are included as part of the above totals for
governmental activities. At year end $1,759,683 of Risk Management claims and judgments and $88,871 of
compensated absences are included in the above governmental activities 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. All required improvements were completed at
the end of 2009 at a total cost of $50.3 million. On February 17, 2011 the Department of Ecology issued a Notice of Compliance
with the Order on Consent terminating the Order on Consent.
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. PSA has acknowledged that the City has fulfilled its obligations under the consent decree and waived
any claims it brought in the legal action. On May 11, 2011 the United States District Court entered an order terminating the
Consent Decree and dismissing the case with prejudice.
The Kitsap County Housing Authority issued Variable Rate Demand Revenue Bonds, 2005 in the principal amount of
$22,200,000, which were secured by a letter of credit. The proceeds of those bonds were used to develop the Harborside
Condominiums in the City. The County agreed to loan the Housing Authority up to $22,200,000 plus interest in the event the
Housing Authority does not have sufficient funds to reimburse the bank which provided the letter of credit ( "LOC ") securing
those bonds for draws on the LOC. The City entered into an agreement with the Housing Authority and the County pursuant to
which the City agreed to loan the Housing Authority up to $2,000,000 in the event the bank letter of credit was drawn on, the
County had lent $22,200,000 to the Housing Authority to reimburse the bank for draw on the letter of credit and there were not
funds available to pay a portion of the bank reimbursement. In 2009, the Housing Authority drew the full amount of the bank
letter of credit to repay the bonds, and the Housing Authority and the County entered into an agreement under which the County
borrowed money to loan to the Housing Authority to reimburse the bank. The County and the Housing Authority demanded that
the City loan $2,000,000 to the Housing Authority under its agreement. The matter was resolved in May 2011 with the city
paying the Housing Authority and Kitsap County $1,150,000.
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.
11. Restricted Net Assets
60 /Financial Section
The government -wide statement of net assets reports $7,395,246 of restricted net assets, all of which is restricted by
enabling legislation and external contractual commitments.
12. Interfund Balances and Transfers
A. Interfund Balances
Interfund balances at December 31, 2011 were as follows:
Total $ 106,348 $ 119,505 $ 129,886 $ 201,270 $
Other Internal
Golf Proprietary Service Fiduciary
General
Other
Waste-
- -
Fund
Govt
Water Water
al Fund
$
$ 32,979
$ 127,576 $ 199,601 $
governmental finds
45,030
59,044
- -
water
24,002
26,785
88
1,107
-
-
proprietary finds
45,030
-
- -
al Service
36,209
697
2,222 1,669
Total $ 106,348 $ 119,505 $ 129,886 $ 201,270 $
Other Internal
Golf Proprietary Service Fiduciary
Total
23,787 $ 40,228 $ $ $
424,171
- -
59,044
64
64
338
51,213
-
1,107
-
45,030
412 480 12
41,701
23,787 $ 41,042 $ 480 $ 12 $
622,330
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 2012. 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.
Water
Internal service
Total
Park Land
Park hnpr
B. Interfund Transfers
Interfund transfers at December 31, 2011 were as follows:
2025 $ 176,014 $ - $ 176,014
2020 - 87,592 87,592
$ 176,014 $ 87,592 $ 263,606
General Other Waste- Other internal
Fund Govt Water Water Proprietary Service Total
General Fund $ - $ 412,000 $ 1,307,466 $ 2,044,970 $ 343,308 $ $ 4,107,744 '
!Other governrnentalfunds 915,000 1,993,623 - - 104,780 3,013,403 '
Water 9,244 7,924 17,168
Other proprietary funds 62,560 157,732 220,292
E
Internal Service 93,550 6,100 28,800 18,450 9,725 5,000 161,625
Total $ 1,071,110 $ 2,411,723 $ 1,336,266 $ 2,072,664 $ 623,469 $ 5,000 $ 7,520,232
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.
There were several significant transfers during 2011. $780,000 was transferred from the Harborside Plaza capital
projects fund to the Park Plaza capital projects fund as a partial match for a $2.6M federal award from the US Economic
Development Administration for additional improvements at the Park Plaza facility. Those funds were restricted to
capital projects in the Downtown Revitalization Area.
City of Bremerton / 61
The Arterial Street and Stormwater funds transferred $237,271 and $104,780 respectively to the Lower Wheaton Way
capital projects fund as match for a $1.4 million dollar grant from the Washington State Transportation Improvement
Board for the Lower Wheaton Way reconstruction project.
The Stormwater fund transferred $157,732 to the Gorst Creek Watershed fund for match for a grant awarded by the U.S.
Environmental Protection Agency to develop a Comprehensive Plan for the Gorst Creek Watershed.
Two new internal service funds were created in 2011 to fund unemployment and termination leave benefits. $63,700
was transferred from various operating funds to establish the Employment Security fund and $97,925 was transferred
from various funds to the Accumulated Leave Liability fund.
13. Receivable and Payable Balances
A. Receivables
Receivables at December 31, 2011 were as follows:
Governmental Activities:
General Fund
Non -major and other funds
Reconciliation of balances in fund financial
statements to government -wide financial
statements
Total governmental activities
Business -Type Activities:
Water
Golf
Wastewater
Other Proprietary Funds
Reconciliation of balances in fund financial
statements to government -wide financial
statements
Total business -type activities
B. Payables
$ 1,409,315 $ 2,378,022 $ $ 16,335 $ - $ 3,803,672
369,092 262,359 1,011,812 12 1,643,275
- - - 8,857 8,857
$ 1,778,407 $ 2,640,381 $ $ 1,028,147 $ 8,869 $ 5,455,804
$ 1,340,870 303,761 549,568 $ 4,121 $ 2,198,320
- - 2,772 357 3,129
2,428,943 257 - 7,439 2,436,639
633,833 - 1,867 635,700
5,164 5,164
$ 4,403,646 $ 257 $ 303,761 $ 552,340 $ 18,948 $ 5,278,952
Accounts Payable and other current liabilities at December 31, 2011 were as follows:
Governmental Activities:
General Fund
Non -major and other funds
Reconciliation of balances in fund
financial statements to government -
wide financial statements
Total governmental activities
$ 503,069 $ 3,574 $
996,430 10,652
91,511
$ 1,591,010 $
14,226 $
26,148 $ 37,100 $ 569,891
449 15,000 1,022,531
$ 200,633 292,144
26,597 $ 252,733 $ 1,884,566
62 /Financial Section
Business -Type Activities:
Water $ 373,571 $ - $ - $ - $ 373,571
Golf 20,814 - - - 20,814
Wastewater 666,525 3,692 - - 670,217
Other Proprietary funds 34,839 - - - 34,839
Reconciliation of balances in fund
financial statements to government -
wide financial statements - - - - -
Total business -type activities $ 1,095,749 8 3,692 $ - $ - $ 1,099,441
14. Post Employment Benefits other than Pension
Statement No. 45 of the Governmental Accounting Standards Board, Accounting and Financial Reporting by Employers
for Postemployment Benefits Other Than Pensions, establishes standards for reporting of post employment benefits other
than pensions for financial statement for periods beginning after December 15, 2007.
Plan Description
As required by the Revised Code of Washington (RCW) Chapter 41.26, the City provides lifetime medical care for
members of the Law Enforcement Officers and Firefighters (LEOFF) retirement system hired before October 1, 1977
under a defined benefit healthcare plan administered by the City. The members necessary hospital, medical, and nursing
care expenses not payable by worker's compensation, social security, insurance provided by another employer, other
pension plan, or any other similar source are covered. Most medical coverage for eligible retirees is provided by one of
the City's employee medical insurance programs. Under the authorization of the LEOFF Disability Board, direct
payment is made for other retiree medical expenses not covered by standard medical plan benefit provisions. Finance
reporting for the LEOFF retiree healthcare plan is included in the City's Comprehensive Annual Financial Report.
Funding Policy
Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by RCW. The City's funding
policy is based upon pay -as- you -go financing requirements.
Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost is calculated based upon the annual required contribution
(ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and
amortize any unfunded actuarial liabilities over a period of nineteen years as of September 1, 2006. The following table
shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and
changes in the City's net OPEB. The net OPEB obligation of ($414,716) is included as a noncurrent asset on the
Statement of Net Assets.
Determination of Annual Required Contribution:
Amortization of UAAL* 1,352,725
Interest Adjustment to year End 13,460
Annual Required Contribution (ARC) $ 1,366,185
City of Bremerton / 63
Determination of NET OPEB Obligation:
Annual Required Contribution
Annual OPEB Cost
Contributions
Change in Net OPEB Obligations
Net OPEB Obligations - beginning of year
Net OPEB Obligations - end of year
* Unfunded Actuarial Accrued Liability (UAAL)
$ 1,366,185
$ 1,366,185
(1,423,794)
$ (57,609)
$ (357,107)
$ (414,716)
The City's OPEB cost, the percentage OPEB cost contributed to the plan and the net OPEB Assets for 2011 and the
proceeding two years, was as follows:
12/31/2009 $ 1,366,185 105.88% $ (280,444)
12/31/2010 $ 1,366,185 105.61% $ (357,107)
12/31/2011 $ 1,366,185 104.22% $ (414,716)
Funded Status and Funding Progress
As of October 1, 2008, the most recent actuarial valuation date, the plan was 0% funded. The accrued liability for
benefits was $21,632,822 and the actuarial value of the assets was $0 resulting in a UAAL of $21,632,822.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions
of the employer are subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress presented as required supplementary information following
the notes to the financial statement, presents multiyear trend information that show whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects of short-tern volatility in
actuarial accrued liabilities, consistent with the long -tern perspective of the calculations.
In the October 1, 2008 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial
assumptions used included a 3.0% discount rate, which is based upon the long -tern investment yield on the investments
that are expected to be used to finance payment of benefits. A medical inflation rate of 10% graded to 5% over ten years
was used along with a long term care inflation rate of 3.0 %.
The UAAL is being amortized on a closed basis at the assumed discount rate. The remaining amortization period at
January 1, 2011 was 16.75 years.
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-
64 /Financial Section
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, 2011 for the combined utility operations are as follows:
Assets
Current assets
$ 21,162,722
Restricted assets
1,690,135
Capital assets
158,539,024
Other assets
1,080,323
Total assets
182,472,204
Liabilities
Current liabilities 5,184,342
Long -term liabilities 33,474,259
Total liabilities 38,658,601
Net Assets
Restricted for debt service 1,566,678
Restricted for capital replacement 123,457
Unrestricted 19,681,990
Invested in capital assets net of related debt 122,441,478
Total net assets $ 143,813,603
Total operating revenues $ 24,597,846
Operating Expenditures:
Operations & maintenance 14,319,722
Depreciation /amortization/depletion 4,967,423
Total operating expenses 19,287,145
Operating income(loss) 5,310,701
Non - Operating Revenues /Expenses
Interest revenue /expense (net) (467,768)
Other (net) 216,235
Total non - operating revenues /expenses (251,533)
Capital contributions 2,553,547
Transfers (3,794,940)
Change in net assets
3,817,775
Beginning net assets
140,121,649
Accounting Change
12f 5,821)
Ending net assets
$ 143,813,603
City of Bremerton / 65
Net cash provided By:
(a) Operating activities
$ 9,993,652
(b) Noncapital financing activities
(3,392,922)
(c) Capital and related financing activities
(4,131,840)
(d) Investing activities
135,163
Beginning cash and investment balance
13,046,562
Ending cash and investment balance
$ 15,650,615
16. Other Disclosures
A. Prior Period Adjustment
The 2011 beginning fund balance was adjusted to recognize the liability for anticipated payments for unused sick leave
at December 31, 2010. In prior years the amount payable was considered immaterial due to the small number of
employee retirements. As the work force has aged the number of employees eligible to retire has increased significantly.
Payment for 35% of sick leave is only paid at retirement. Outstanding sick leave at year end is accrued for all
employees that meet the eligibility criteria for service retirement.
Fund Government
Statements Wide
Information Technology $ (15,013)
Total Internal Service Funds $ (15,013)
Total Governmental Activities
Water
W atewater
Nonmajor Enterprise Funds
Total Proprietary Funds
Total Business -Type Activities
Government -wide adjustments
(465,545)
(92,491)
(28,149)
(5,181)
$ (125,821)
$ (125,821)
$ (591,366)
B. Accounting and Reporting Changes
The City implemented GASB Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions during
the year ended December 31, 2011. The objective of this statement is to improve the usefulness and understandability of
governmental fund balance information. It provides more clearly defined categories to make the nature and extent of the
constraints placed on a government's fund balance more transparent. It also clarifies the existing governmental fund
type definitions to improve the comparability of governmental fund financial statements and help financial statement
users better understand the purposes for which governments have chosen to use particular funds for financial reporting.
The City replaced the reserved and unreserved fund balance classifications with nonspendable, reserved, committed,
assigned and unassigned within the equity section of the Governmental Funds Balance Sheet.
The City removed the note disclosure regarding following pre - November 30, 1989 private sector accounting. This was
done because it early implemented GASB 62, Codification of Accounting and Financial Reporting Guidance contained
in Pre - November 30, 1989 FASB and AICPA Pronouncements. With this statement, the Governmental Accounting
Standards Board included former FASB guidance that relates to governmental entities into its own standards, making the
note disclosure unnecessary.
66 /Financial Section
Required Supplementary Information
LEOFF I Retiree Medical Benefits
Schedule of Funding Progress
Actuarial
UAAL as a
Actuarial
Accrued
Unfunded Actuarial
Percentage
Fiscal Year Value of
Liability Unit
Accrued Liabilities
Funded
Covered
of Covered
Ended Assets
Cost
UAAL
Ratio
Payroll
Payroll
12/31/2008 $
- $ 16,191,238
$ 16,191,238
0.0% $
673,125
2405.38%
12/31/2009 $
- $ 21,632,822
$ 21,632,822
0.0% $
461,567
4686.82%
Combining Balance Sheet
NonMajor Govermental Funds
December 31, 2011
Page 1 of 3
Special
Revenue
Assets
Cash
Investments
Receivables
Due from other funds
Due from other governments
Inventories
Notes /contracts - deferred
Total assets
Arterial Lodging Parldng Community Abatement Police Special Gift &
Street Street Tax System Block Grant Revolving Projects BKAT Donation
$ 106,367 $
19,241
$ 18,958 $
65,990
$ 252,179 $ 51,278 $
216,608 $ 28,596 $ 18,133
376,766
68,155
67,152
233,743
- 181,635
767,253 101,293 64,230
-
158,740
27,565
388,654
- -
- - -
-
37,987
-
-
- -
- - -
194,741
-
-
-
217,700 -
- - -
-
23,264
-
-
- -
- - -
-
-
-
-
816,138 -
- 147,000 -
$ 677,874 $
307,387
$ 113,675 $
688,387
$ 1,286,017 $ 232,913 $
983,861 $ 276,889 $ 82,363
Liabilities and Fund Balances
Liabilities:
Accounts /contracts payable $
101,364 $
50,196 $
11,913 $ 60,554 $
73,017 $
- $ 10,255 $ 1,564 $ 6,618
Due to other funds
38,033
593
- 24,260
21,061
- 2,768 15 -
Employee wages payable
2,246
45,279
- -
3,799
- - 7,216 -
Other current liabilities
15,000
70
- 9
344
- - 26 -
Deferred revenues
-
-
- 328,250
816,138
- - 147,000 -
Total liabilities
156,643
96,138
11,913 413,073
914,359
- 13,023 155,821 6,618
Fund balances:
Nonspendable
- 23,264
- - - -
- -
Restricted
521,231 -
79,596 275,314 371,658 -
970,838 16,017 -
Committed
- -
- - - -
- 105,051 75,745
Assigned
- 187,985
22,166 - - 232,913
- - -
Unassigned
- -
- - - -
- - -
Total fund balances
521,231 211,249
101,762 275,314 371,658 232,913
970,838 121,068 75,745
Total liabilities and fund balanc $
677,874 $ 307,387
$ 113,675 $ 688,387 $ 1,286,017 $ 232,913 $
983,861 $ 276,889 $ 82,363
_n
0
w
m
m
0
rn
Combining Balance Sheet
NonMajor Govermental Funds
December 31, 2011
Page 2 of 3
Liabilities and Fund Balances
Liabilities:
Accounts /contracts payable $
Special
$ 315,481
Debt
Due to other funds
- -
Capital
- -
-
Revenue
Employee wages payable
- -
58,540
Service
-
- - -
Projects
- -
15,449
- -
One
Special
Deferred revenues
- -
1,291,388
Debt
16,279
34,793 -
Total liabilities
Trial Percent
Revenue
Bond
2010 2010 UTGO/
Service
Public Safety Harborside
Improvement for Art
Total
Fund
LTGO LTGO (B)
Total
Project
Plaza
Assets
23,264
- -
-
- - -
Restricted
35,543 -
2,270,197
67,559 -
Cash
$ 8,652 $
11,279
$ 797,281
$ 31,873
$ 38,297 $
8,933
$ 79,103
$ - $
7,560
Investments
30,649
39,951
1,930,827
112,898
135,654
31,643
280,195
-
26,776
Receivables
-
-
574,959
20,635
28,767
17,812
67,214
-
-
Due from other funds
-
-
37,987
-
-
-
-
-
-
Due from other governments
-
-
412,441
-
-
-
-
-
-
Inventories
-
-
23,264
-
-
-
-
-
Notes /contracts - deferred
-
-
963,138
-
-
-
-
-
Total assets
$ 39,301 $
51,230
$ 4,739,897
$ 165,406
$ 202,718 $
58,388
$ 426,512
$ - $
34,336
Liabilities and Fund Balances
Liabilities:
Accounts /contracts payable $
- $ -
$ 315,481
-
Due to other funds
- -
86,730
- -
-
- - -
Employee wages payable
- -
58,540
- -
-
- - -
Other current liabilities
- -
15,449
- -
-
- - -
Deferred revenues
- -
1,291,388
18,514 -
16,279
34,793 -
Total liabilities
- -
1,767,588
18,514 -
16,279
34,793 - -
Fund balances:
Nonspendable
23,264
- -
-
- - -
Restricted
35,543 -
2,270,197
67,559 -
-
67,559 - -
Committed
- 51,230
232,026
- -
-
- - -
Assigned
3,758 -
446,822
79,333 202,718
42,109
324,160 - 34,336
Unassigned
- -
-
- -
-
- - -
Total fund balances
39,301 51,230
2,972,309
146,892 202,718
42,109
391,719 - 34,336
Total liabilities and fund balanc $
39,301 $ 51,230
$ 4,739,897
$ 165,406 $ 202,718 $
58,388 $
426,512 $ - $ 34,336
rn
co
T
v'
co
co
0
o'
z
Combining Balance Sheet
NonMajor Govermental Funds
December 31, 2011
Fund balances:
Capital
Nonspendable
-
- -
-
-
Projects
-
23,264
Restricted
133,257
1,017,678 135,138
508,700
33,735
425,932
2,254,440
4,592,196
Committed
-
Total
-
-
-
General
232,026
Assigned
18,391
Capital
Nonmajor
-
-
Park
Govt
Parks
Evergreen
Lower
Projects
Governmental
(81,962)
Park Plaza
Plaza Phase II
Cap Impr
Construction
Remediation
Wheaton Way
Total
Funds
Assets
5,796,035
Total liabilities and fund balanc $
456,020
$ 1,310,988 $ 161,722 $
892,749 $
47,517 $
345,546 $
3,248,878
Cash
$ 100,398
$ 196,749
$ 27,249
$ 163,467
$ (3,307)
$ 71,654
$ 563,770
$ 1,440,154
Investments
355,622
696,838
96,521
579,019
-
253,807
2,008,583
4,219,605
Receivables
-
-
37,952
-
-
-
37,952
680,125
Due from other funds
-
-
-
21,057
-
-
21,057
59,044
Due from other governments
-
417,401
-
129,206
50,824
20,085
617,516
1,029,957
Inventories
-
-
-
-
-
-
-
23,264
Notes /contracts - deferred
-
-
-
-
-
-
-
963,138
Total assets
$ 456,020
$ 1,310,988
$ 161,722
$ 892,749
$ 47,517
$ 345,546
$ 3,248,878
$ 8,415,287
Liabilities and Fund Balances
Liabilities:
Accounts /contracts payable
$ 304,372
$ 263,161
$ -
$ 95,384
$ 28,686
$ -
691,603
$ 1,007,084
Due to other funds
-
26,788
-
93,543
-
35
120,366
207,096
Employee wages payable
-
3,361
-
-
-
1,541
4,902
63,442
Other current liabilities
-
-
-
-
-
-
-
15,449
Deferred revenues
-
-
-
-
-
-
-
1,326,181
Total liabilities
304,372
293,310
-
188,927
28,686
1,576
816,871
2,619,252
Fund balances:
Nonspendable
-
- -
-
-
-
-
23,264
Restricted
133,257
1,017,678 135,138
508,700
33,735
425,932
2,254,440
4,592,196
Committed
-
- -
-
-
-
-
232,026
Assigned
18,391
- 26,584
195,122
-
-
274,433
1,045,415
Unassigned
-
- -
-
(14,904)
(81,962)
(96,866)
(96,866)
Total fund balances
151,648
1,017,678 161,722
703,822
18,831
343,970
2,432,007
5,796,035
Total liabilities and fund balanc $
456,020
$ 1,310,988 $ 161,722 $
892,749 $
47,517 $
345,546 $
3,248,878
$ 8,415,287
Page 3 of 3
n
0
w
m
m
0
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Transportation
Economic environment
Culture and recreation
Debt service:
Principal
Interest and other debt issue costs
Capital Outlay
Total expenditures
Excess (deficiency) ofrevenues
over expenditures
Other Financing Sources (Uses)
Proceeds of Long Term Debt
Payments to Refunded Debt Escrow Agent
Capital asset donations & disposal
Insurance Recoveries
Transfers in
Transfers out
Total other financing sources and uses
Other Changes in Fund Balance
Change in reserves for inventory
Net change in fund balances
Fund balances- beginning
Fund balances- ending
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
NonMajor Governmental Funds
For Year Ended December 31, 2011
Page 1 of 3
Special Revenue
Arterial Parking Community Abatement Police Special Gift & Trial
Street Street Lodging Tax System Block Grant Revolving Projects BKAT Donation Improvement
$ $
316,380 $
393,288 $ $
$
$ $ 181 $ $
-
-
199,173
494,427
813,209
-
998,275
- 22,000 - 22,468
18,889
335,937
350
52,300
63,587 - 97,110 1,312 -
-
-
- 282,252
-
- 26,290 - - -
52,060
31,783
359 876,028
9,283
1,960 171,397 1,376 24,602 331
565,376
1,497,309
393,647 1,158,630
1,059,858
65,547 197,687 319,840 25,914 22,799
187,622 - 6,904 15,000
- 46,138 - 161,107 8,859 -
279,097 1,907,007 - 555,840 - - -
- - 17,997 - 957,672 5 - -
27,810 152,000 - 282,489 1,518
370,000
- 157,226 -
587,506 - - - - - 39,758 - -
866,603 2,168,577 169,997 1,083,066 957,672 5 161,107 322,247 17,281 15,000
(301,227) (671,268) 223,650 75,564 102,186 65,542 36,580 (2,407) 8,633 7,799
9,675,000
(9,675,000)
1,251
765,000
(237,271) (5,000) (155,000) (175,000) (160,244) (65,000) (25,900) (12,000)
(237,271) 761,251 (155,000) (175,000) (160,244) (65,000) (25,900) (12,000)
6,820 - - - -
(538,498) 96,803 68,650 (99,436) (58,058) 542 36,580 (28,307) (3,367) 7,799
1,059,729 114,446 33,112 374,750 429,716 232,371 934,258 149,375 79,112 31,502
$ 521,231 $ 211,249 $ 101,762 $ 275,314 $ 371,658 $ 232,913 $ 970,838 $ 121,068 $ 75,745 $ 39,301
0
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O
z
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
NonMajor Governmental Funds
For Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Transportation
Economic environment
Culture and recreation
Debt service:
Principal
Interest and other debt issue costs
Capital Outlay
Total expenditures
Excess (deficiency) ofrevenues
over expenditures
Other Financing Sources (Uses)
Proceeds of Long Term Debt
Payments to Refunded Debt Escrow Agent
Capital asset donations & disposal
Insurance Recoveries
Transfers in
Transfers out
Total other financing sources and uses
Other Changes in Fund Balance
Change in reserves for inventory
Net change in fund balances
Fund balances- beginning
Fund balances- ending
Special Revenue
One Pecent
for Art Total
Debt Service
Capital Projects
Bond 2010 210 UTGO/ Public Safety Harborside Park
Fund LTGO LTGO(B) Total Project Plaza Plaza
$ $ 709,849
$ 349,492 $ 370,613 $
458,788 $
1,178,893 $
$ $
199,173
-
2,350,379
153,360
40,708
194,068
26,602
569,485
-
-
-
-
308,542
- -
-
-
-
483 1,169,662
5,470 938
1,724
8,132
855 3,170 9,300
483 5,307,090
354,962 524,911
501,220
1,381,093
855 29,772 9,300
- 209,526
- -
-
-
- - -
216,104
2,741,944
-
- 975,674
(70)
7,746 471,563
-
370,000 665,000 150,000 60,000 875,000
157,226 54,675 438,853 472,124 965,652 - -
- 627,264 - - - - 11,980 - 4,183,361
7,746 5,769,301 719,675 588,853 532,124 1,840,652 11,980 (70) 4,183,361
(7,263) (462,211) (364,713) (63,942) (30,904) (459,559) (11,125) 29,842 (4,174,061)
9,675,000
(9,675,000)
1,251 - - - -
765,000 225,000 120,000 72,500 417,500
(835,415) - - - - (193,608) (780,000) (200,000)
(69,164) 225,000 120,000 72,500 417,500 (193,608) (780,000) (200,000)
6,820 - -
(7,263) (524,555) (139,713) 56,058 41,596 (42,059) (204,733) (750,158) (4,374,061)
58,493 3,496,864 286,605 146,660 513 433,778 204,733 784,494 4,525,710
$ 51,230 $ 2,972,309 $ 146,892 $ 202,718 $ 42,109 $ 391,719 $ $ 34,336 $ 151,649
Page 2 of 3
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O
V
v
Expenditures
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
NonMajor Governmental Funds
Current
For Year Ended December 31, 2011
General government
Capital Projects
209,526
Public safety
Total
Evergreen
Transportation
Nonmajor
Park Plaza
General Gov't
Parks Remediation Lower Wheaton
-
Governmental
Economic environment
Phase 11
Cap Impr
Construction Project Way
Total
Funds
Revenues
975,604
Culture and recreation
Taxes
$
$ 336,378
$ $ $ $
336,378
$ 2,225,120
Licenses and permits
-
-
199,173
Intergovernmental
650,972
338,805 222,884 20,085
1,259,348
3,803,795
Charges for services
-
Interest and other debt issue costs
- - -
-
569,485
Fines and forfeits
-
-
- - -
-
308,542
Miscellaneous
48,818
1,004
55,416 252 1,429
120,244
1,298,038
Total revenues
699,790
337,382
394,221 223,136 21,514
1,715,970
8,404,153
Expenditures
Current
General government
209,526
Public safety
216,104
Transportation
-
2,741,944
Economic environment
(70)
975,604
Culture and recreation
-
471,563
Debt service:
Principal
-
-
1,245,000
Interest and other debt issue costs
-
6,149
-
-
6,149
1,129,027
Capital Outlay
1,355,721
605,452
367,163
19,595
6,543,272
7,170,536
Total expenditures
1,355,721
-
611,601
367,163
19,595
6,549,351
14,159,304
Excess (deficiency) ofrevenues
(655,931)
337,382
(217,380)
(144,027)
1,919
(4,833,381)
(5,755,151)
over expenditures
Other Financing Sources (Uses)
Proceeds of Long Term Debt
-
-
9,675,000
Payments to Refunded Debt Escrow Agent
-
-
-
(9,675,000)
Capital asset donations & disposal
500,000
3,095
503,095
503,095
Insurance Recoveries
-
-
-
-
1,251
Transfers in
1,173,608
160,244
342,051
1,675,903
2,858,403
Transfers out
(402,500)
-
-
(1,576,108)
(2,411,523)
Total other financing sources and uses
1,673,608
(402,500)
163,339
342,051
602,890
951,226
Other Changes in Fund Balance
Change in reserves for inventory
-
-
-
6,820
Net change in fund balances
1,017,677
(65,118)
(54,041)
(144,027)
343,970
(4,230,491)
(4,797,105)
Fund balances-beginning
-
226,840
757,863
162,858
-
6,662,498
10,593,140
Fund balances - ending $
1,017,677 $
161,722 $
703,822 $
18,831 $
343,970 $
2,432,007
$ 5,796,035
Page 3 of 3
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City of Bremerton / 73
Arterial Street Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
5,700,095
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
5,700,095
4,792,370
494,427
(4,297,943)
85,500
85,500
18,889
(66,611)
25,000
25,000
52,060
27,060
5,810,595
4,902,870
565,376
(4,337,494)
120,000
120,000
112,944
7,056
95,500
95,500
166,152
(70,652)
6,628,000
5,483,004
587,507
4,895,497
-
237,271
237,271
-
6,843,500
5,935,775
1,103,874
4,831,901
(1,032,905) (1,032,905) (538,498) 494,407
1,139,200 1,059,729 1,059,729 -
$ 106,295 $ 26,824 $ 521,231 $ 494,407
74 /Financial Section
Street Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
$ 300,000 $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
$ 300,000 $
300,000 $
316,380 $
16,380
776,000
776,000
813,209
37,209
330,000
330,000
335,937
5,937
765,000
825,000
798,034
(26,966)
2,171,000
2,231,000
2,263,560
32,560
1,359,500 1,184,500 1,161,363 23,137
870,184 1,035,184 1,007,214 27,970
- 5,000 5,000 -
2,229,684 2,224,684 2,173,577 51,107
(58,684) 6,316 89,983 83,667
81,400 98,002 114,446 16,444
$ 22,716 $ 104,318 $ 204,429 $ 100,111
City of Bremerton / 75
Contingency Reserve Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2011 2011 2011 (Negative)
8,500 258,500 253,846 (4,654)
8,500 258,500 (4,654)
1,150,000 1,150,000 -
1,150,000 1,150,000 -
8,500 (891,500) #VALUE! #VALUE!
1,008,600 1,013,245 1,013,245 -
$ 1,017,100 $ 121,745 #VALUE! #VALUE!
76 /Financial Section
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
170,000
Lodging Tax Special Revenue Fund
169,997 3
155,000
155,000
Other Governmental Funds
325,000
325,000
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Variance with
Original Final
Final Budget
Budget Budget
Actual
Positive
2011 2011
2011
(Negative)
Revenues
Taxes
$ 380,000 $ 380,000 $
393,288
$ 13,288
Licenses and permits
- -
-
-
Intergovernmental
- -
-
-
Charges for services
- -
-
-
Fines and forfeitures
- -
-
-
Miscellaneous
- -
359
359
Total revenues
380,000 380,000
393,647
13,647
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
170,000
170,000
169,997 3
155,000
155,000
155,000 -
325,000
325,000
324,997 3
55,000 55,000 68,650 13,650
22,800 33,112
33,112 -
$ 77,800 $ 88,112 $ 101,762 $ 13,650
City of Bremerton / 77
Parking System Revenue Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
575,888
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
575,888
575,888
555,840 20,048
275,000
300
300
350
50
325,000
325,000
282,252
(42,748)
713,000
10,388,000
10,551,028
163,028
1,038,300
10,713,300
10,833,630
120,330
575,888
575,888
555,840 20,048
275,000
10,250,000
10,202,226 47,774
375,000
175,000
175,000 -
1,225,888
11,000,888
10,933,066 67,822
(187,588) (287,588) (99,436) 188,152
207,900 374,750 374,750 -
$ 20,312 $ 87,162 $ 275,314 $ 188,152
78 /Financial Section
Community Development Block Grant Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
2,520,326
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
2,520,326
2,520,326
998,275
(1,522,051)
20,000
20,000
52,300
32,300
11,100
11,100
9,283
(1,817)
2,551,426
2,551,426
1,059,858
(1,491,568)
170,300 170,300 151,946 18,354
2,149,225 2,149,225 805,726 1,343,499
170,000 172,000 160,244 11,756
2,489,525 2,491,525 1,117,916 1,373,609
61,901 59,901 (58,058) (117,959)
1,010,300 429,716 429,716 -
$ 1,072,201 $ 489,617 $ 371,658 $ (117,959)
City of Bremerton / 79
Abatement Revolving Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
4,000 4,000 63,587 59,587
2,000 2,000 1,960 (40)
6,000 6,000 65,547 59,547
41,000 41,000 5 40,995
65,000 65,000 65,000 -
106,000 106,000 65,005 40,995
(100,000) (100,000) 542 100,542
227,600 232,371 232,371 -
$ 127,600 $ 132,371 $ 232,913 $ 100,542
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
4,000 4,000 63,587 59,587
2,000 2,000 1,960 (40)
6,000 6,000 65,547 59,547
41,000 41,000 5 40,995
65,000 65,000 65,000 -
106,000 106,000 65,005 40,995
(100,000) (100,000) 542 100,542
227,600 232,371 232,371 -
$ 127,600 $ 132,371 $ 232,913 $ 100,542
80 /Financial Section
Police Special Projects Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
259,700 259,700 161,107 98,593
259,700 259,700 161,107 98,593
(145,700) (145,700) 36,580 182,280
782,500 934,258 934,258 -
$ 636,800 $ 788,558 $ 970,838 $ 182,280
Variance with
Original
Final
Final Budget
Budget
Budget
Actual
Positive
2011
2011
2011
(Negative)
38,000
38,000
26,290
(11,710)
76,000
76,000
171,397
95,397
114,000
114,000
197,687
83,687
259,700 259,700 161,107 98,593
259,700 259,700 161,107 98,593
(145,700) (145,700) 36,580 182,280
782,500 934,258 934,258 -
$ 636,800 $ 788,558 $ 970,838 $ 182,280
City of Bremerton / 81
Public Access TV Operations Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
$ - $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
$ - $
- $
181 $
181
240,000
265,000
199,173
(65,827)
25,000
25,000
22,000
(3,000)
74,570
74,570
97,110
22,540
-
11,600
-
(11,600)
11,600
-
1,376
1,376
351,170
376,170
319,840
(56,330)
229,100 229,100 221,931 7,169
36,350 61,350 60,558 792
25,000 50,000 39,758 10,242
25,000 25,900 25,900 -
315,450 366,350 348,147 18,203
35,720 9,820 (28,307) (38,127)
89,900 149,375 149,375 -
$ 125,620 $ 159,195 $ 121,068 $ (38,127)
82 /Financial Section
Gift and Donation Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
- - 1,312 1,312
10,900 23,400 24,602 1,202
10,900 23,400 25,914 2,514
20,600
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
- - 1,312 1,312
10,900 23,400 24,602 1,202
10,900 23,400 25,914 2,514
20,600
28,400
17,281 11,119
12,000
12,000
12,000 -
32,600
40,400
29,281 11,119
(21,700) (17,000) (3,367) 13,633
81,300 79,112 79,112 -
$ 59,600 $ 62,112 $ 75,745 $ 13,633
City of Bremerton / 83
Trial Improvement Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2011 2011 2011 (Negative)
22,000 22,000 22,468 468
- - 331 331
22,000 22,000 22,799 799
15,000 15,000 15,000 -
15,000 15,000 15,000 -
7,000 7,000 7,799 799
38,800 31,502 31,502 -
$ 45,800 $ 38,502 $ 39,301 $ 799
84 /Financial Section
One Percent For Arts Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2011 2011 2011 (Negative)
500 500 - (500)
66,500 66,500 483 (66,017)
67,000 67,000 483 (66,517)
- 10,000 7,746 2,254
10,000 - - -
10,000 10,000 7,746 2,254
57,000 57,000 (7,263) (64,263)
61,000 58,493 58,493 -
$ 118,000 $ 115,493 $ 51,230 $ (64,263)
City of Bremerton / 85
Conference Center Operations Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
68,600 68,600 66,942 1,658
1,485,227 1,485,227 1,296,255 188,972
200 200 -
1,553,827 1,554,027 1,363,397 190,630
(71,827) (72,027) (5,924) 66,103
374,900 369,296 369,296 -
$ 303,073 $ 297,269 $ 363,372 $ 66,103
Variance with
Original
Final
Final Budget
Budget
Budget
Actual
Positive
2011
2011
2011
(Negative)
1,317,000
1,317,000
1,193,310
(123,690)
165,000
165,000
164,163
(837)
1,482,000
1,482,000
1,357,473
(124,527)
68,600 68,600 66,942 1,658
1,485,227 1,485,227 1,296,255 188,972
200 200 -
1,553,827 1,554,027 1,363,397 190,630
(71,827) (72,027) (5,924) 66,103
374,900 369,296 369,296 -
$ 303,073 $ 297,269 $ 363,372 $ 66,103
86 /Financial Section
Bond Debt Service Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
$ 357,400 $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
$ 357,400 $
357,400 $
349,492 $
(7,908)
229,000
229,000
230,470
1,470
586,400
586,400
579,962
(6,438)
719,700 719,700 719,675 25
719,700 719,700 719,675 25
(133,300) (133,300) (139,713) (6,413)
226,500 286,605 286,605 -
$ 93,200 $ 153,305 $ 146,892 $ (6,413)
City of Bremerton / 87
2010 LTGO Bond Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
$ 332,000 $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
$ 332,000 $
332,000 $
370,613 $
38,613
155,000
155,000
153,360
(1,640)
120,000
120,000
120,938
938
607,000
607,000
644,911
37,911
588,550 588,950 588,853 97
588,550 588,950 588,853 97
18,450 18,050 56,058 38,008
154,000 146,660 146,660 -
$ 172,450 $ 164,710 $ 202,718 $ 38,008
88 /Financial Section
2010 UTGO Ref/ UTGO B Bond Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
$ 447,300 $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
$ 447,300 $
447,300 $
458,788 $
11,488
40,000
41,000
40,708
(292)
72,500
72,500
74,224
1,724
559,800
560,800
573,720
12,920
525,300 532,400 532,124 276
525,300 532,400 532,124 276
34,500 28,400 41,596 13,196
513 513 -
$ 34,500 $ 28,913 $ 42,109 $ 13,196
City of Bremerton / 89
Public Safety Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
Variance with
Original Final Final Budget
Budget Budget Actual Positive
2011 2011 2011 (Negative)
- 3,000 855 (2,145)
- 3,000 855 (2,145)
- 12,600
11,980
620
- 195,133
193,608
1,525
- 207,733
205,588
2,145
(204,733) (204,733) -
204,733 204,733 -
90 /Financial Section
Harborside Plaza Commons Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
- - 26,602 26,602
1,000 1,000 3,170 2,170
1,000 1,000 29,772 28,772
- - 168
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
- - 26,602 26,602
1,000 1,000 3,170 2,170
1,000 1,000 29,772 28,772
- - 168
(168)
- - (238)
238
467,917 4,917 -
4,917
350,000 780,000 780,000
-
817,917 784,917 779,930
4,987
(816,917) (783,917) (750,158) 33,759
817,900 784,080 784,494 414
$ 983 $ 163 $ 34,336 $ 34,173
City of Bremerton / 91
Park Plaza Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
725,000 25,000 9,300 (15,700)
725,000 25,000 9,300 (15,700)
5,814,600 3,850,600
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
725,000 25,000 9,300 (15,700)
725,000 25,000 9,300 (15,700)
5,814,600 3,850,600
4,183,361
(332,761)
- 700,000
200,000
500,000
5,814,600 4,550,600
4,383,361
167,239
(5,089,600) (4,525,600) (4,374,061) 151,539
5,089,600 4,525,710 4,525,710 -
$ - $ 110 $ 151,649 $ 151,539
92 /Financial Section
Park Plaza Phase 11 Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
5,200,000 1,3 55,721 3,844,279
5,200,000 1,3 55,721 3,844,279
133 1,017,677 1,017,544
$ - $ 133 $ 1,017,677 $ 1,017,544
Variance with
Original Final
Final Budget
Budget Budget
Actual
Positive
2011 2011
2011
(Negative)
- 2,600,000
650,972
(1,949,028)
- 170,000
-
(170,000)
- 2,430,133
1,722,426
(707,707)
- 5,200,133
2,373,398
(2,826,735)
5,200,000 1,3 55,721 3,844,279
5,200,000 1,3 55,721 3,844,279
133 1,017,677 1,017,544
$ - $ 133 $ 1,017,677 $ 1,017,544
City of Bremerton / 93
General Government Improvements Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
$ 400,000 $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2011 2011
2011 (Negative)
$ 400,000 $
400,000 $
336,378 $
(63,622)
1,000
1,000
1,004
4
401,000
401,000
337,382
(63,618)
192,500 - - -
210,000 402,500 402,500 -
402,500 402,500 402,500 -
(1,500) (1,500) (65,118) (63,618)
209,600 226,840 226,840 -
$ 208,100 $ 225,340 $ 161,722 $ (63,618)
94 /Financial Section
Park Facilities Construction Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
970,000
1,030,000
605,452
Variance with
Original
Final
6,149
Final Budget
Budget
Budget
Actual
Positive
2011
2011
2011
(Negative)
1,060,000
1,070,000
338,805
(731,195)
174,500
201,500
218,755
17,255
1,234,500
1,271,500
557,560
(713,940)
970,000
1,030,000
605,452
424,548
6,600
6,600
6,149
451
976,600 1,036,600 611,601 424,999
257,900 234,900 (54,041) (288,941)
875,000 757,863 757,863 -
$ 1,132,900 $ 992,763 $ 703,822 $ (288,941)
City of Bremerton / 95
Evergreen Park Remediation Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
270,000 425,000 367,163 57,837
270,000 425,000 367,163 57,837
(35,000) (100,250) (144,027) (43,777)
231,100 162,858 162,858 -
$ 196,100 $ 62,608 $ 18,831 $ (43,777)
Variance with
Original
Final
Final Budget
Budget
Budget
Actual
Positive
2011
2011
2011
(Negative)
234,000
323,750
222,884
(100,866)
1,000
1,000
252
(748)
235,000
324,750
223,136
(101,614)
270,000 425,000 367,163 57,837
270,000 425,000 367,163 57,837
(35,000) (100,250) (144,027) (43,777)
231,100 162,858 162,858 -
$ 196,100 $ 62,608 $ 18,831 $ (43,777)
96 /Financial Section
Lower Wheaton Way Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2011
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Prior period adjustments
Fund balances- ending
1,710,135 19,595 1,690,540
1,710,135 19,595 1,690,540
343,970 343,970
$ - $ - $ 343,970 $ 343,970
Variance with
Original Final
Final Budget
Budget Budget
Actual
Positive
2011 2011
2011
(Negative)
- 1,368,084
20,085
(1,347,999)
- 342,051
343,480
1,429
- 1,710,135
363,565
(1,346,570)
1,710,135 19,595 1,690,540
1,710,135 19,595 1,690,540
343,970 343,970
$ - $ - $ 343,970 $ 343,970
City of Bremerton / 97
Combining Statement of Net Assets
Other Proprietary Funds
December 31, 2011
Business -type Activities
Enterprise Funds
Gorst Creek
Assets
Current assets:
Cash $
456,793
25,878 $
482,671
Investments
1,618,016
91,663
1,709,679
External receivables
633,833
-
633,833
Interest receivable
1,767
100
1,867
Due from other funds
45,030
-
45,030
Due from other governments
148,837
77,235
226,072
Total current assets
2,904,276
194,876
3,099,152
Noncurrent assets:
Capital assets net of depreciation
4,723,960
-
4,723,960
Total noncurrent assets
4,723,960
-
4,723,960
Total assets $
7,628,236 $
194,876 $
7,823,112
Liabilities
Current liabilities:
Accounts /contract payable $
19,962 $
14,877 $
34,839
Due to other funds
41,043
-
41,043
Other accrued liabilities
35,957
7
35,964
Current portion of long term debt
13,481
-
13,481
Custodial accounts
500
-
500
Total current liabilities
110,943
14,884
125,827
Noncurrent liabilities:
Bonds, notes and loans payable
118,371
-
118,371
Compensated absences
53,212
-
53,212
Total noncurrent liabilities
171,583
-
171,583
Total liabilities
282,526
14,884
297,410
Net Assets
Invested in capital assets, net
of related debt 4,595,725 - 4,595,725
Unrestricted 2,749,985 179,992 2,929,977
Total net assets $ 7,345,710 $ 179,992 $ 7,525,702
98 /Financial Section
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets
Other Proprietary Funds
For the Year Ended December 31, 2011
Business -type Activities
Enterprise Funds
Nonoperating revenues (expenses)
Interest and investment revenue
Gorst Creek
746
16,325
Stormwater Watershed
Total
Operating revenues:
(5,327)
Other nonoperating revenue /expense
Charges for services
$ 2,223,229 $ - $
2,223,229
Other operating revenue
43,044 -
43,044
Total operating revenues
2,266,273 -
2,266,273
Operating expenses:
636,487
Capital contributions
General operations
433,227 -
433,227
Maintenance
790,309 -
790,309
Customer service and marketing
44,511 -
44,511
General administration
204,947 -
204,947
Depreciation and amortization
90,764 -
90,764
Property, excise and B &O taxes
39,002 -
39,002
Total operating expenses
1,602,760 -
1,602,760
Operating income (loss)
663,513 -
663,513
Nonoperating revenues (expenses)
Interest and investment revenue
15,579
746
16,325
Interest expense
(5,327)
-
(5,327)
Other nonoperating revenue /expense
3,022
(41,046)
(38,024)
Total nonoperating revenues (expenses)
13,274
(40,300)
(27,026)
Income (loss) before contributions and transfers
676,787
(40,300)
636,487
Capital contributions
801,478
-
801,478
Transfers in
-
220,292
220,292
Transfers out
(623,469)
-
(623,469)
Change in net assets
854,796
179,992
1,034,788
Total net assets - beginning
6,496,095
-
6,496,095
Prior Period Adjustment
(5,181)
(5,181)
Total net assets - ending $
7,345,710 $
179,992 $
7,525,702
City of Bremerton / 99
Combining Statement of Cash Flows
Other Proprietary Funds
For the Year Ending December 31, 2011
Page 1 of 2
Cash Flows From Operating Activities
Cash received from customers
Cash payments to suppliers
Cash payments to employees
Purchase of insurance
Other operating receipts and payments
Net cash provided by operating activities
Cash Flows From Noncapital Financing Activities
Transfers in
Transfers out
Grants
Other nonoperating revenues /expenses
Net cash provided (used) by noncapital
financing activities
Cash Flows From Capital and Related
Financing Activies
Acquisition and construction of capital assets
Capital contributions
Transfer out for asset construction
Loan/grant proceeds
Principal paid on other debt
Interest paid on revenue bonds and other debt
Net cash provided (used) for capital and related
financing activities
Cash Flows From Investing Activities
Net change in investments
Interest on loans and investments
Net cash provided in investing activities
Business -type Activities
Nonmajor Enterprise Funds
Gorst Creek
Stormwater Watershed Total
$ 2,020,201 $
- $ 2,020,201
(522,153)
- (522,153)
(1,006,436)
- (1,006,436)
(48,026)
- (48,026)
27,397
- 27,397
470.983
- 470.983
220,292 220,292
(494,689) - (494,689)
- 56,209 56,209
3,528 (159,605) (156,077)
(491,161) 116,896 (374,265)
(431,536)
- (431,536)
27,513
- 27,513
(104,780)
- (104,780)
337,027
- 337,027
(9,864)
- (9,864)
(5,524)
- (5,524)
(187,164) - (187,164)
517,042 (91,663) 425,379
17,019 645 17,664
534,061 (91,018) 443,043
Net increase (decrease) in cash and cash equivalents 326,719 25,878 352,597
Cash - beginning of year 130,074 - 130,074
Cash - end of year $ 456,793 $ 25,878 $ 482,671
Cash at the end of the year consists of:
Operating fund cash
Restricted cash
Total cash at end of year
456,793 25,878 482,671
$ 456,793 $ 25,878 $ 482,671
900 /Financial Section
Combining Statement of Cash Flows
Other Proprietary Funds
For the Year Ending December 31, 2011
Page 2 of 2
Business -type Activities
Nonmajor Enterprise Funds
Gorst Creek
Stormwater Watershed Total
Reconciliation of operating income to net cash provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income
to net cash provided by operating activates:
Depreciation
Decrease (increase) in receivables
Decrease (increase) in due from other funds/govt
Increase (decrease) in accounts payable
Increase (decrease) in due to other funds/govt
Increase (decrease) in employee wages payable
Increase (decrease) in employee leaves payable
Net cash provided by operating activities
663,513 $
663,513
Noncash investing, capital and financial activities;
Developers contributed infrastructure
Change in market value of investments
90,764
- 90,764
(203,028)
- (203,028)
(21,674)
- (21,674)
(47,866)
- (47,866)
(702)
- (702)
(5,181)
- (5,181)
(4,843)
- (4,843)
$ 470,983 $
- $ 470,983
290,000 $ - $ 290,000
(1,989) (114) $ (1,989)
City of Bremerton / 909
Combining Statement of Net Assets
Internal Service Funds
December 31, 2011
Business -type Activities
Enterprise Funds
Total liabilities
Risk
Employment
Accrued. Leave
Equipment
Equipment
Information
Management
Security
Liability
Maintenance
Reserve
Technology
Total
Assets
- - 4,079,160
11,814
4,090,974
Restricted.
100,000 -
- - -
-
Current assets:
Unrestricted
428,678 24,554
8,206 302,231 6,157,087
344,711
7,265,467
Total not assets
528,678 24,554
Cash
301,180
12,236
5,405
70,325
1335,132
91,401
1,815,679
Restricted. Cash
100,000
-
-
-
-
-
100,000
Investments
1,421,025
43,343
19,148
249,103
4,729,199
323,752
6,785,570
External receivables
-
-
-
-
-
-
-
Restricted. Special Assesments Roe
-
-
-
-
-
-
-
Interest receivable
1,552
47
21
272
5,164
354
7,410
Due from other funds
15,682
-
-
5,007
87,592
21,012
129,293
Inventories
-
-
-
74,929
-
-
74,929
Prepayments
77,613
-
-
-
-
-
77,613
Total current assets
1,917,052
55,626
24,574
399,636
6,157,087
436,519
8,990,494
Noncurrent assets:
Prepaid Pension
372,049
-
-
-
-
-
372,049
Capital assets not of depreciation
-
-
-
-
4,079,160
11,814
4,090,974
Total noncurrent assets
372,049
-
-
-
4,079,160
11,814
4,463,023
Total assets
2,289,101
55,626
24,574
399,636
10,236,247
448,333
13,453,517
Liabilities
Current liabilities:
Accounts/contractpayable
740
31,072
-
50,708
-
8,892
91,412
Due to other funds
-
-
-
336
-
144
480
Other accrued liabilities
533,320
-
16,368
21,132
-
19,130
589,950
Total current liabilities
534,060
31,072
16,368
72,176
-
28,166
681,842
Noncurrent liabilities:
Claims and judgements payable
1,226,363
-
-
-
-
-
1,226,363
Compensated absences
-
-
-
25,229
-
63,642
88,871
Total noncurrent liabilities
1,226363
-
-
25,229
-
63,642
1315,234
Total liabilities
1,760,423 31,072
16,368 97,405 -
91,808
1,997,076
Not Assets
Invested in eaptial assets, not
ofrelated. debt
- -
- - 4,079,160
11,814
4,090,974
Restricted.
100,000 -
- - -
-
100,000
Unrestricted
428,678 24,554
8,206 302,231 6,157,087
344,711
7,265,467
Total not assets
528,678 24,554
8,206 302,231 10,236,247
356,525
11,456,441
102 /Financial Section
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Internal Service Funds
For the Year Ended December 31, 2011
Nonoperating revenues (expenses)
Governmental Activities
Interest and investment revenue
Internal Service Funds
30
1,805
51,613
3,135
56,876
Gain (loss) on capital asset disposal
-
Equipment
Equipment
-
14,125
-
Risk
Employment
Accrued Leave
Rental
Rental
information
15
1,518
Management
Security
Liability
Operations
Reserve
Technology
Total
Operating revenues:
91,476
Income (loss) before contributions and transfers
169,378
(39,146)
(89,719)
95,473
(183,959)
Charges for services
$ 1,388,206
$
$
$ 1,741,611 $
368,500
$ 712,985 $
4,211,302
Interest & dividend income
12,622
Transfers in
-
-
-
-
12,622
Other operating revenue
10,481
Transfers out
6,695
(2,599)
17,176
Total operating revenues
1,411,309
Change in net assets
169,378
1,748,306
368,500
712,985
4,241,100
Operating expenses:
63,761
Total net assets - beginning
359,300
-
-
210,625
10,420,206
General operations
-
39,439
89,749
1,673,519
-
755,778
2,558,485
General administration
299,559
-
-
-
-
-
299,559
Depreciation and amortization
-
618,212
6,752
624,964
Risk transfer payments
413,888
-
-
413,888
Payments to claimants & beneficiaries
478,381
-
-
-
-
-
478,381
Other operating expenses
50,164
50,164
Total operating expenses
1,241,992
39,439
89,749
1,673,519
618,212
762,530
4,425,441
Operating income (loss)
169,317
(39,439)
(89,749)
74,787
(249,712)
(49,545)
(184,341)
Nonoperating revenues (expenses)
Interest and investment revenue
293
30
1,805
51,613
3,135
56,876
Gain (loss) on capital asset disposal
-
-
-
14,125
-
14,125
Other nonoperatingrevenue /(expenvse)
61
18,881
15
1,518
20,475
Total nonoperating revenues (expenvses)
61
293
30
20,686
65,753
4,653
91,476
Income (loss) before contributions and transfers
169,378
(39,146)
(89,719)
95,473
(183,959)
(44,892)
(92,865)
Capital contributions
Transfers in
-
63,700
97,925
-
161,625
Transfers out
(2,599)
(2,400)
(4,999)
Change in net assets
169,378
24,554
8,206
92,874
(183,959)
(47,292)
63,761
Total net assets - beginning
359,300
-
-
210,625
10,420,206
418,830
11,408,961
Prior Period Adjustment
(1,268)
(15,013)
(16,281)
Total net assets - ending $
528,678 $
24,554 $
8,206 $
302,231 $
10,236,247 $
356,525 $
11,456,441
City of Bremerton / 903
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ending December 31, 2011
Page 1 oft
Equipment
Equipment
Risk
Employment
Accrued Leave
Rental
Rental
Information
Management
Security
Liability
Operations
Reserve
Technology
Total
Cash Flows From Operating Activities
Cash received from customers
S 1,383,904 S
- S
- S
1,741,611 S
368,500 S
712,985 S
4,207,000
Interest on Investments
13,209
-
-
-
-
-
13,209
Cash payments to suppliers
(350,331)
(8,367)
-
(1,050,540)
-
(285,934)
(1,695,172)
Cash payments to employees
-
(73,381)
(611,845)
-
(488,412)
(1,173,638)
Purchase ofinsurance
(410,536)
-
-
(14,377)
-
-
(424,913)
Payment for insurance claims
(335,889)
-
-
-
-
-
(335,889)
Other operating receipts and payments
10,481
6,694
17,175
Not cash provided (used) by operating activities
310,838
(8,367)
(73,381)
71,543
368,500
(61,361)
607,772
Cash Flows From Noneapital Financing Activities
Transfers in
-
63,700
97,925
-
-
-
161,625
Transfers out
-
-
-
(1,675)
-
(2,400)
(4,075)
Other nonoperating revenues /expenses
62
18,881
16
1,518
20,477
Not cash prodded by noncapital
financing activities
62
63,700
97,925
17,206
16
(882)
178,027
Cash Flows From Capital and Related
Financing Activities
Acquisition and construction of capital assets
-
-
-
-
(289,792)
-
(289,792)
Proceeds from sale of other assets
61,403
61,403
Not cash used for capital and related
financing activities
(228,389)
(228,389)
Cash Flows From Investing Activities
Proceeds from repayment of loans
-
-
-
-
7,011
-
7,011
Net change in investments
3,494
(43,343)
(19,148)
(33,421)
794,698
122,976
825,256
Proceeds from special assessments
-
-
-
-
1,868
-
1,868
Interest on loans and investments
246
9
1,857
54,897
3,452
60,461
Not cash provided in investing activities
3,494
(43,097)
(19,139)
(31,564)
858,474
126,428
894,596
Net increase (decrease) in cash and cash equivalents
314,394
12,236
5,405
57,185
998,601
64,185
1,452,006
Cash - beginning ofycar
86,786
13,140
336,531
27,216
463,673
Cash - end ofycar
S 401,180 S
12,236 S
5,405 S
70,325 S
1,335,132 S
91,401 S
1,915,679
Cash at the end of the year consists of.
Operating fund cash
301,180
12,236
5,405
70,325
1,335,132
91,401
1,815,679
Restricted cash
100,000
100,000
Total cash at end ofycar
S 401,180 S
12,236 S
5,405 S
70,325 S
1,335,132 S
91,401 S
1,915,679
104 /Financial Section
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ending December 31, 2011
Page of2
Equipment Equipment
Risk Employment Accrued Leave Rental Rental hnformatirnn
Management Security Liability Operations Reserve Technology Total
Rermediation of operating income to net cash provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income
to net cash provided by operating
activities:
Depreciation
Decrease (increase) in receivables
Decrease (increase) in due from other 9hnds�govt
Decrease (increase) in prepaid expenses
Decrease (increase) in inventory
Increase (decrease) in accounts payable
Increase (decrease) in due to other funds�govt
Increase (decrease) in employee wages payable
Increase (decrease) in employee leaves payable
Net cash provided by operating activities
Nrnncasb investing, capital and financial activities;
Developers contributed infrastructure
Change in market value of investments
169317 (39A39) (89749) 7M20 (249 712) (49545) (188 208)
-
- - - 618212
6752
629,964
(4301)
- - 8104 -
6133
9,936
54567
- - - -
-
54567
-
- - 8659
8659
87 359
3 l072 16 368 (16 203) -
(46103)
72 493
(
- - ( -
(
(
-
- - (155) -
1310
L155
231
20.128
20359
310,838
(8367) (73381) 7L543 368500
(61361)
607,772
(1,764) (53) (24) (260) (5,806) (396) (8303)
City of Bremerton / 905
Combining Statement of Fiduciary Net Assets
Agency Funds
As of December 31, 2011
Salary Administrative
Clearing Trust Total
Assets
Cash and cash equivalents
External receivables
Interest receivable
Interfund receivables
Total assets
Liabilities
Accounts /contracts payable
Due to other funds
Other current liabilities
Total liabilities
$ 67,988 $ 117,628 $ 185,616
452 $ - 452
$ 68,440 $ 117,628 $ 186,068
- 51,168 51,168
12 - 12
68,428 66,460 134,888
$ 68,440 $ 117,628 $ 186,068
106 /Financial Section
THIS PAGE LEFT BLANK INTENTIONALLY.
Table 1
Net Assets by Component
Last Nine Fiscal Years
Governmental Activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business -type activities net assets
Primary Government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
2003 2004 2005 2006 2007 2008 2009 2010
$ 50,204,781 $
49,164,535
$ 50,329,300 $
58,958,873 $
69,497,809
$ 72,451,892 $
72,087,573
$ 66,905,386
4,492,936
11,592,172
13,542,273
7,390,108
3,168,374
2,682,534
3,111,288
8,275,949
7,833,989
7,067,568
9,323,734
13,822,625
15,362,418
10,777,450
9,159,249
9,434,193
62,531,706
67,824,275
73,195,307
80,171,606
88,028,601
85,911,876
84,358,110
84,615,528
86,487,527
87,788,590
89,467,683
92,069,352
92,747,306
103,397,203
122,329,665
128,158,641
360,852
514,774
494,194
557,859
1,483,026
3,988,736
1,174,604
1,305,903
6,209,697
8,265,819
11,074,025
14,575,413
23,225,228
21,514,830
21,386,589
23,973,489
93,058,076
96,569,183
101,035,902
107,202,624
117,455,560
128,900,769
144,890,858
153,438,033
136,692,308
136,953,125
139,796,983
151,028,225
162,245,115
175, 849,095
194,417,238
195,064,027
4,853,788
12,106,946
14,036,467
7,947,967
4,651,400
6,671,270
4,285,892
9,581,852
14,043,686
15,333,387
20,397,759
28,398,038
38,587,646
32,292,280
30,545,838
33,407,682
$ 155,589,782
$ 164,393,458
$ 174,231,209
$ 187,374,230
$ 205,484,161
$ 214,812,645
$ 229,248,968
$ 238,053,561
Total Net Assets
2011
2009
®Business - Type
2007
■ Governmental
2005
2003
0
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O
O
V
0 0 0 0 0
o° o°
��, LIB,
908 /Statistical Section
Table 2
Changes in Net Assets
Last Nine Fiscal Years
Expenses
Govcmmental Aamfie.,
2003
2064
2005
2006
2007
2003
2009
2010
2011
Revenues
General government
S 4,497,784 S
3,178,781 S
3,311,938 S
4,036,679 S
3,838,442
S 4,799,392 S
4,001,383 S
3,250,587 S
core,-nmenxat A,ti itie.,
Public safety
15,642,194
16,435,104
18,447,613
19,018,326
21,823,943
22,694,179
23,922,957
24,187,445
Program Re, e ues
tltilitie., and environment
193,048
183,645
205,404
374,985
223,469
226,975
219,431
Charge., for Senic
S 5,213,469 S
6,408,743 S
7,069,069 S
7,393,109 S
3,239,980 S
3,911,430 S
9,065,757 S
7,974,533 S
3,134,426
Operating Grants and Contributions
1,360,384
1,904,575
1,505,305
964,454
1,350,646
2,321,404
2,226,968
2,685,281
1,862,766
Capital Grants and Connibaum,
7,347,931
7,528,350
1,541,002
7,895,086
9,928,551
4,638,620
3,922,004
3,748,282
1,753,775
General Revenues
Culture and recreation
3,552,084
4,633,144
5,115,632
5,581,830
6,429,966
6,859,463
5,944,853
6,510,247
Property Tax.,.,
6,966,861
7,005,388
6,991,232
7,329,167
7,920,916
7,799,723
8,490,418
8,553,934
8,546,532
Sale., Tax.,.,
6,313,342
6,393,740
6,637,147
7,157,768
7,574,011
7,790,117
6,541,673
6,538,977
7,050,928
Business Tax.,.,
2,632,276
3,555,740
4,224,596
3,898,778
4,783,087
3,454,258
3,706,834
3,406,535
3,175,405
Utility Tax.,.,
3,986,704
4,055,931
4,296,416
4,744,302
4,974,578
5,087,768
4,753,803
4,531,307
4,512,670
OtherTaxe.,
2,611,599
2,598,693
2,938,131
3,567,985
2,984,146
2,572,169
2,461,170
2,391,050
2,384,628
OtherGeneral Re,enne,
342,419
(131,583)
2,172,184
3,088,501
1,831,840
1,004,194
217,758
1,428,517
657,845
Tond Gone -nd R,-,,es
36,774,985
39,319,577
37,375,082
46,544,150
49,587,755
43,579,733
41,386,385
41,258,416
38,078,975
Business -Type A, ti ities
Tot lB xess Typ A, tiifi s
18,500,494
19,980,944
19,978,426
21,218,149
21,664,497
22,679,409
22,846,422
21,168,699
Charge., for Senic
21,266,386
22,026,027
24,568,993
27,738,767
27,611,963
26,764,076
27,619,991
25,981,745
26,471,213
Operating Grants and Contributions
-
-
-
-
-
235,414
34,341
65,812
258,531
Capital Grants and Contributions
1,200,151
2,553,628
1,279,260
755,136
4,936,686
8,449,263
3,882,290
7,417,318
2,580,408
Sale., Tax.,.,
45,131
58,973
71,500
49,180
41,562
21,857
14,678
-
16,735
Business Tax.,.,
13,704
9,588
11,572
6,672
8,004
229
-
6,486
395
OtherGeneral Revenue.,
54,414
(2,712)
187,537
487,531
913,859
1,005,523
556,994
584,246
613,062
Tot fB xess -Typ t tiixies
22,579,786
24,645,504
26,118,862
29,037,286
'3'3,512,074
36,476,362
32, 108.294
34,055,607
29,940,344
Total Primary Government Program Revenue.,
S 59,354,771 S
63,965,081 S
63,493,944 S
75,581,436 S
83,099,829 S
80,056,095 S
73,494,679 S
75,314,023 S
68,019,319
Expenses
core,-nmenxat A,ti<iti,,
General government
S 4,497,784 S
3,178,781 S
3,311,938 S
4,036,679 S
3,838,442
S 4,799,392 S
4,001,383 S
3,250,587 S
4,585,130
Public safety
15,642,194
16,435,104
18,447,613
19,018,326
21,823,943
22,694,179
23,922,957
24,187,445
23,718,909
tltilitie., and environment
193,048
183,645
205,404
374,985
223,469
226,975
219,431
219,631
Transportation
3,423,484
6,442,549
4,453,072
7,731,187
8,936,077
8,914,778
4,214,922
4,012,477
4,235,164
Economic Environment
2,747,355
2,916,242
2,463,469
2,863,004
2,601,899
3,146,023
2,031,753
3,310,097
2,231,951
Mental /physical health
180,743
185,612
Culture and recreation
3,552,084
4,633,144
5,115,632
5,581,830
6,429,966
6,859,463
5,944,853
6,510,247
5,975,233
lntcrest on long -torn debt
929,920
1,205,561
1,360,925
1,422,858
1,378,912
1,181,513
961,926
976,987
1,511,968
Tot I( rnment Epenses
31,066,612
35,180,638
35,152,649
40,859,288
45,384,224
47,818,817
41,304,769
42,467,271
42,477,986
Business- Ape%Ictnitier
Water
6,744,202
7,234,139
7,189,614
8,052,273
8,747,875
9,073,514
9,742,707
8,298,916
8,868,640
Waste,ater
7,879,292
8,425,512
8,409,503
8,387,319
8,589,358
9,012,578
8,927,299
9,009,876
9,422,019
GolfCoursc
3,522,053
3,412,554
3,318,926
3,578,441
3,498,529
3,264,660
3,198,390
2,256,772
2,135,886
Other Proprietary Funds
854,947
908,739
1,060,383
1,200,116
1,328,735
1,328,657
1,478,026
1,603,135
1,831,098
Tot lB xess Typ A, tiifi s
18,500,494
19,980,944
19,978,426
21,218,149
21,664,497
22,679,409
22,846,422
21,168,699
22,657,643
Total Primary Government Program Expense.,
S 49,567,106 S
55,161,582 S
55,131,075 S
62,077,437 S
67,048,721
S 70,498,226 S
64,151,191 S
63,635,970 S
65,135,629
Change in Net Assets
core,-nmenxat A,ttiitie.,
E- of- ena ser expense.,
S 5,708,373 S
4,138,939 S
2,222,433 S
5,684,862 S
4,203,531
S (4,239,084) S
81,616 S
(1,208,855) S
(4,399,011)
Transfer,
1,162,029
1,153,453
1,673,717
1,291,437
1,944,641
1,973,245
4,175,924
3,610,764
3,737,965
Go nentatA, tiitz,, Cl-g, a, N,t Assets
6,870,402
5,292,392
3,896,150
6,976,299
6,148,172
(2,265,839)
4,257,540
2,401,909
(661,046)
Business- Ape%Ictnitier
E. f-enr ,expense.,
4,079,292
4,664,560
6,140,436
7,819,137
11,847,577
13,796,953
9,261,872
12,886,908
7,282,701
Transfer,
(1,162,029)
(1,153,453)
(1,673,717)
(1,291,437)
(1,944,641)
(1,973,245)
(4,175,924)
(3,610,764)
(3,737,965)
Bu. a-A A, tiitz,, Ch-g, a, N,, Assets
2,917,263
3,511,107
4,466,719
6,527,700
9,902,936
11,823,708
5,085,948
9,276,144
3,544,736
Gozernmentaf A, tnities Net%lasets
Net assds - beginning
55,732,512
62,531,706
69,299,157
73,195,307
80,171,606
82,507,135
85,911,876
84,358,110
84,615,528
Priorperiod adjustment/sp.il items
1,475,059
1,708,823
(140,726)
(5,811,306)
(2,144,491)
(465,545)
Net ys - ending
62,602,914
69,299,157
73,195,307
80,171,606
88,028,601
80,100,570
84,358,110
84,615,528
8,488,937
Business- Ape%Ictnitier Net%lasets
Net assds - beginning
90,139,144
93,058,076
96,569,183
101,035,902
107,202,624
123,593,896
128,900,769
144,890,858
153,438,033
Priorperiod adjustment/sp.il items
(69,539)
(360,978)
350,000
(705,529)
10,904,141
(728,969)
(125,821)
Net ys - ending
92,986,868
96,569,183
101,035,902
107,202,624
117,455,560
134,712,075
144,890,858
153,438,033
156,856,948
Total Primary Government Net Assets
$ 155,589,782 $ 165,868,346 $ 174,231,269 $ 187,374,236 $ 265,484,161
$ 214,812,645 $ 229,248,968 $ 238,653,561 $ 246,345,885
GENERALFUND
Reserved
Unreserved
Total General Fund
ALL OTHER GOVERNMENTAL FUNDS
Reserved
Unreserved, Reported In:
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Total All Other Governmental Funds
TOTAL ALL GOVERNMENTAL FUNDS
Table 3
Fund Balance of Government Funds
Last Ten Fiscal Years
2002
2003
2004
2005
2006
2007
2008 2009 2010
350,758
391,078
6,134,056
5,247,909
3,745,126
4,593,224
5,025,387
$ 95,337 S
93,442 S
16,070 S
15,570 S
14,970 S
20,470 S
19,070 S - $
1,108,222
881,433
2,410,089
3,531,157
4,386,943
4,084,868
1,313,146 1,957,308 3,049,878
1,203,559
974,875
2,426,159
3,546,727
4,401,913
4,105,338
1,332,216 1,957,308 3,049,878
77,421
71,938
72,949
1,564,096
1,054,224
176,435
198,472
350,758
391,078
6,134,056
5,247,909
3,745,126
4,593,224
5,025,387
6,251,037
5,867,682
5,758,691
4,488,327
12,516,679
16,070,360
8,046,173
7,653,595
6,074,023
2,626,138
1,578,618
2,096,861
6,662,498
300,829
294,747
203,981
375,324
418,036
548,107
590,314
262,834
433,778
19,028,985
21,684,954
12,068,229
14,186,239
12,571,670
9,601,717
8,235,086
8,469,144
11,975,681
S 20,232,544 S 22,659,829 S 14,494,388 S 17,732,966 S 16,973,583 S 13,707,055 S 9,567,302 S 10,426,452 S 15,025,559
_n
l�
O
b0
W
CD
O
110 /Statistical Section
Table 4
Changes in Fund Balances of Government Funds
Last Ton Fiscal Years
Debt service as a percentage of
non - capital expenditures 5.79% 6.13% 7.48% 7.27% 6.86% 4.64% 4.81% 4.09%
25,000,000
20,000,000
15,000,000
® Beginning Fund
Balance 10,000,000
5,000,000
2003 2004 2005 2006 2007 2008 2009 2010 2011
2003
2004
2005
2006
2007
2008
2009
2010
REVENUES
Taxes
$21,066,589
$22,219,675
$23,762,468
$25,423,632
$ 26,572,963
$ 25,132,935
$ 24,259,262
$ 23,958,593
Licenses and Permits
720,506
862,913
1,138,578
1,043,642
1,160,778
1,037,771
1,174,918
1,165394
Intergovernmental
10,292,514
11,907,911
4,665,774
10,574,163
10,004,467
8,846,813
8,126,087
8,266,451
Charges for services
3,467,422
3,795,272
4,647,098
5,214,339
4,645,238
5,005,728
5,188,790
5,648,907
Fines and forfeits
833,772
751,536
721,703
868,427
1,022,563
1,689,080
1,929,836
1,581,937
Miscellaneous
1,762,139
1,681,959
2,634,054
3,101,742
3,107379
2,497,255
1,636,519
2,962,238
Total Revenues
38,142,942
41,219,266
37 .569,675
46,225,945
46,513388
44,209,582
42315,412
43,583,520
EXPENDITURES
Current
General Government
5,446,515
5,176,259
5,097,706
5,628,413
6389,555
6,830,197
6,793,202
6,878,458
Public Safety
14,622,354
13,493,936
14,817,115
15,516,122
17,418,932
21,205,949
22,222,451
22,369,568
Utilities and Environment
193,048
195,122
195,461
217,600
374,985
223,469
226,975
219,431
Transportation
3,715,299
3,350,876
2,945,199
6,295,350
7,652,880
7,401,334
3,372,750
3,010,848
Economic environment
2,239,290
3,003305
2,576379
2,795,953
2,521,648
3,142,196
1,950,417
3,269,259
Mental/physicalhealth
180,743
185,612
68,131
71,285
71,379
73,525
74,922
75,126
Culture and recreation
3,131,506
4,121,492
4327,569
4,873362
5313,236
5357,250
4,548,291
4,867,545
Debt Service:.
Principal
714,000
737,500
1,060,863
1,367,000
1,562,499
986,000
1,035,500
771,500
Interest and other debt issue costs
1,099,157
1,190,262
1367,191
1,409,746
1363,534
1,165,883
946,444
964,772
Capital
16,622,050
17,842,919
4,022,693
10,722,720
8,090,180
4,515,778
4,874,658
9,361,248
Intergovernmental Payments
Total Expenditures
47,963,962
49,297,283
36,478307
48,897,551
50,758,828
50,901,581
46,045,610
51,787,755
Excess (deficiency) of revenues
(9,821,020)
(8,078,017)
1,091,368
(2,671,606)
(4,245,440)
(6,691,999)
(3,730,198)
(8,204,235)
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Proceeds of Long Term Debt
10,865,000
800,000
1,671,000
-
-
-
-
19,407,267
Payments to Refunded Escrow Agent
-
-
(1,661,309)
-
-
-
-
(10,387,010)
Capital Asset Donation & Disposal
-
5,958
2,659,534
2,700,538
1,467,967
428,319
398,759
40,930
Insurance Recoveries
-
-
-
-
-
-
14,664
18,629
Transfers in
5,075,298
4,955,598
6377,743
9,768,469
8,957389
6,461,827
7,415,810
5,630,979
Transfers out
(3,753,180)
(5,705,285)
(6,885,610)
(10,596,716)
(9,445,689)
(4,195,667)
(3,239,886)
(2,020,214)
Total other financing sources and uses
12,187,118
56,271
2,161358
1,872,291
979,667
2,694,479
4,589347
12,690,581
OTHER CHANGES IN FUND BALANCE
Change in Reserves for Inventory
(10,023)
(72,486)
(14,148)
39,932
(755)
(1,507)
-
(10,666)
Not change in fund balances
2,356,075
(8,094,232)
3,238,578
(759,383)
(3,266,528)
(3,999,027)
859,149
4,475,680
Fund balances - beginning
20,232,545
22,588,620
14,494,388
17,732,966
16,973,583
13,707,055
9,567,302
10,426,451
Prior Period Adjustments
(140,726)
123,428
Fund balances - ending
$22.588.620
$14,494388
$17,732,966
$16,973,583
$ 13,707,055
$ 9,567302
$ 10,426,451
$ 15,025,559
Debt service as a percentage of
non - capital expenditures 5.79% 6.13% 7.48% 7.27% 6.86% 4.64% 4.81% 4.09%
25,000,000
20,000,000
15,000,000
® Beginning Fund
Balance 10,000,000
5,000,000
2003 2004 2005 2006 2007 2008 2009 2010 2011
City of Bremerton / 111
Table 5
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Source: Kitsap County Assessor's Office
Assessed and Estimated Actual Value
Percent
Fiscal
Increase
Year
Real Property
Personal Property*
Total
Decrease
2001
1,325,930,017
156,301,280
1,482,231,297
0.00
2002
1,358,494,142
150,607,757
1,509,101,899
1.81
2003
1,447,949,250
137,191,146
1,585,140,396
5.04
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
2,089,518,973
133,373,551
2,222,892,524
20.28
2007
2,557,714,553
134,674,238
2,692,388,791
21.12
2008
2,974,663,326
140,113,102
3,114,776,428
15.69
2009
2,950,336,030
134,404,987
3,084,741,017
(0.96)
2010
2,738,164,824
161,319,684
2,899,484,508
(6.01)
2011
2,592,959,827
155,787,967
2,748,747,794
(5.20)
Source: Kitsap County Assessor's Office
Table 6
Property Tax Rates
Direct and Overlapping Governments
Last Tcn Fiscal Ycars
Dircct Ratcs Overlapping Ratcs
City Milcagc Bremerton School District
Fiscal Operating EMS Dcbt Scrvicc Total City Kitsap County Statc School Operating Dcbt Total Bremerton Port of Bremerton Public Utility Kitsap Regional Total Total Dircct &
Ycar Milcagc Milcagc Milcagc Milcagc Milcagc Milcagc Milcagc Milcagc School Milcagc Milcagc Dcbt Milcagc Library Milcagc Overlapping Ratcs Overlapping Ratcs
2002
3.30000
0.49620
0.15020
3.94640
1.66990
3.14750
3.08960
1.72630
4.81590
0.39060
0.11190
0.10640
0.48340
10.72560
14.67200
2003
3.20220
0.48150
0.75100
4.43470
1.60170
2.92670
3.20280
1.63560
4.83840
0.38470
0.10590
0.10180
0.46230
10.42150
14.85620
2004
3.02778
0.50000
0.62376
4.15154
1.41320
3.07972
3.07238
1.50870
4.58108
0.37595
0.09925
0.09978
0.45270
10.10168
14.25322
2005
2.85463
0.47265
0.49682
3.82410
1.30856
2.96103
2.91888
1.41966
4.33854
0.34628
0.08733
0.09221
0.41963
9.55357
13.37767
2006
2.46012
0.40695
0.47883
3.34590
1.13108
2.59911
2.54897
1.18100
3.72997
0.30368
0.07304
0.07970
0.36159
8.27816
11.62406
2007
2.10316
0.34805
0.39588
2.84710
0.96251
2.29576
2.40579
0.97236
3.37815
0.25940
0.50933
0.06782
0.30765
7.78062
10.62772
2008
1.90323
0.31487
0.29256
2.51065
0.87703
2.02829
2.22231
0.96519
3.18750
0.23606
0.45766
0.06180
0.28021
7.12855
9.63919
2009
1.96901
0.50000
0.29004
2.75905
0.90091
2.02559
2.43646
0.97730
3.41377
0.28150
0.01427
0.06348
0.28792
6.98743
9.74648
2010
2.16239
0.50000
0.30911
2.97151
0.98964
2.13360
2.78147
0.97671
3.75818
0.29218
0.03215
0.06847
0.32040
7.59463
10.56613
2011
2.32957
0.50000
0.29627
3.12583
1.02506
2.37752
3.06517
1.07096
4.13613
0.30854
0.03302
0.07376
0.34726
8.30129
11.42712
Direct Property Tax Rate
5.00000
4.50000
4.00000
3.50000
3.00000
®Mileage 2.50000
2.00000
1.50000
1.00000
0.50000
0.00000
12.00000
10.00000
8.00000
®Mileage 6.00000
4.00000
2.00000
0.00000
Overlapping Property Tax Rate
N
co
SU
y�
n
SU
co
CD
O
z
Sourcc: Kitsap County Assessor's Ofticc
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
City of Bremerton / 113
Table 7
Principal Property Taxpayers
Current
Year and Nine Years Ago
2011
2002
Percent
Percent
Assessed
of Total
Assessed
of Total
Name
Type ofBusiness
Rank
Valuation
Assessed Value
Rank
Valuation
Assessed Value
Puget Sound Energy
Utility
1
$ 29,961,881
1.1%
1
$ 34,376,104
2.2%
Qwest Corporation
Telephone Utility
2
18,310,864
0.7%
Kitsap Community Credit Union
Finance
3
15,704,050
0.6%
HCK2 LLC
Fairfield inn & Suites Mgmt
4
13,379,830
0.5%
R &L Property Management
HOA Condo Management
5
12,709,410
0.5%
Heartland Automobile Prop LLC
Retail- Automotive
6
10,741,190
0.4%
Hotel Concepts of Kitsap LLC
Hotel Management
7
10,724,290
0.4%
Bremer Trust
Commercial Property
8
10,167,230
0.4%
4
8,242,000
0.5%
EP Holdings LLC
Real Estate Management
9
10,106,760
0.4%
AE W SH Bay Pointe Senior Housing LLC
Retirement Apartments
10
8,771,220
0.3%
U. S. West
Telephone Utility
2
24,541,428
1.6%
Northwest Corporate Campus LLC
Land Development
3
12,509,540
0.8%
Bay Point Retirement Community
Retirement Apartments
5
7,344,979
0.5%
Merit Company
Community Center
6
6,729,000
0.4%
Erlands Associates LLC
Apartments
7
6,688,000
0.4%
ViewcrestVillages
Residential Proper ties
8
6,683,000
0.4%
Fir Lane Terrace Conv Ctr
Convealescent Center
9
6,504,000
0.4%
Beta Ballard LLC
Community Center
10
6,231,000
0.4%
Total Taxable Assessed Value
of 10 Largest Taxpayers
140,576,725
5.1%
119,849,051
7.6%
Total Taxable Assessed Value
of all Other Taxpayers
2,608,171,069
94.9%
1,357,834,996
86.6%
Total Taxable Assessed Value
of all Taxpayers
$ 2,748,747,794
100%
$ 1,568,585,817
100%
Source: Kitsap County Assessor's Office
114 / Statistical Section
Table 8
Property Tax Levies and Collections
Last Ten Fiscal Years
(In Thousands)
% of
Delinquent
Current
Fiscal
Tax
Tax
Year
Levy
Collections
2002
5,952
5,667
2003
7,011
6,642
2004
7,105
6,784
2005
7,065
6,801
2006
7,431
7,188
2007
7,658
7,406
2008
7,816
7,498
2009
8,507
8,064
2010
8,613
8,209
2011
8,590
8,278
% of
Delinquent
Total
% of Total
Outstanding
% of Outstanding
Tax Levy
Tax
Tax
Tax Collections
Delinquent
Delinquent
Collected
Collections
Collections
to Tax Levy
Taxes
to Tax Levy
95.21
223
5,890
98.97
448
7.52
94.74
196
6,838
97.54
546
7.78
95.48
195
6,979
98.23
523
7.36
96.26
214
7,015
99.29
498
7.05
96.73
308
7,496
100.87
631
8.49
96.71
436
7,842
102.40
425
5.55
95.93
190
7,688
98.36
506
6.47
94.79
192
8,256
97.05
735
8.64
95.31
411
8,620
100.08
669
7.77
96.37
283
8,561
99.66
655
7.63
City of Bremerton / 115
Table 9
Ratio of Net General Bonded Debt
To Assessed Value and Net Bonded Debt Per Capita
Last Ten Fiscal Years
* State of Washington Office of Financial Management
** Kitsap County Assessor
G.O.
Less Debt
%Net Bonded
Fiscal
Assessed
Bonded
Service
Net Bonded
Debt to
Debt Per
Year
Population*
Value **
Debt
Fuld
Debt
Assessed Value
Capita
2002
38,604
1,509,101,899
22,986,363
356,523
22,629,840
1.50
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
273,708
32,896,292
1.92
877
2005
34,580
1,848,037,215
31,875,139
401,164
31,473,975
1.70
910
2006
35,910
2,222,892,524
30,318,664
457,626
29,861,038
1.34
832
2007
35,810
2,692,388,791
28,619,400
573,654
28,045,746
1.04
783
2008
36,860
3,114,776,428
27,424,767
623,385
26,801,382
0.86
727
2009
36,620
3,084,741,017
26,847,185
313,948
26,533,237
0.86
725
2010
36,190
2,899,484,508
35,705,685
474,303
35,231,382
1.22
974
2011
38,790
2,748,747,794
39,511,239
426,513
39,084,726
1.42
1,008
* State of Washington Office of Financial Management
** Kitsap County Assessor
116 / Statistical Section
Table 10
Computation of Direct and Overlapping Debt
December 31, 2011
Amount
Applicable
To Bremerton
39,511,239
11,260,301
1,834,009
15,137,113
5,828
67,748,489
Gross General
Percentage
Obligation Debt
Applicable
Jurisdiction
Outstanding
To Bremerton
City of Bremerton
39,511,239
100.00
Kitsap County
116,445,722
9.67
Port of Bremerton
7,895,000
23.23
School District #100
20,051,812
75.49
So. Kitsap Schools - Voted
3,428,079
0.17
TOTAL
187,331,852
Amount
Applicable
To Bremerton
39,511,239
11,260,301
1,834,009
15,137,113
5,828
67,748,489
City of Bremerton / 117
Table 11
Computation of Legal Debt Margin
as of December 31, 2011
Total Taxable property Value 2,548,965,492 for collection in 2012
2.5% ($63,724,149) general purposes limit is allocated between:
Up to 1.5% debt without a vote (councilmanic)
Less: outstanding debt
Less: contracts payable
Less: excess of debt with a vote
Add: available assets
Equals: remaining debt capacity without a vote
I% general purposes debt with a vote
Less: outstanding debt
Less: contracts payable
Add: assets available
Equals: remaining debt capacity with a vote
2.5% utility purpose limit, voted
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
Less: outstanding debt
Less: contracts payable
Add: assets available
38,234,482
29,226,239
3,676,914
2,174,648
25,489,655
10,285,000
20,635
63,724,137
63,724,137
7,505,977
15,225,290
63,724,137
Equals remaing debt capacity - open space park and capital facilities, voted 63,724,137
118 / Statistical Section
Table 12
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures
Last Ten Fiscal Years
Includes general, special revenue and debt service funds; does not include Golf Course Bonds.
*Includes $9,315,000 of refunded debt.
** Includes $9,675,000 of refunded debt
Ratio of Debt
Total
Total
Service To General
Fiscal
Debt
General
Expenditures
Year
Principal
Interest
Service
Expenditures
Percent
2002
865,000
201,052
1,066,052
35,808,218
2.98
2003
714,000
876,982
1,590,982
36,418,718
4.37
2004
697,500
1,017,920
1,715,420
35,762,460
4.80
2005
2,650,863
1,098,277
3,749,140
38,144,147
9.83
2006
1,231,475
1,145,958
2,377,433
46,186,270
5.15
2007
1,359,264
1,098,346
2,457,610
51,035,603
4.82
2008
839,633
997,368
1,837,001
50,836,047
3.61
2009
875,582
884,224
1,759,806
44,270,529
3.98
2010
10,086,500
1,146,254
11,232,754
55,266,312
20.32
2011
11,057,500
1,395,963
12,453,463
54,480,070
22.86 **
Includes general, special revenue and debt service funds; does not include Golf Course Bonds.
*Includes $9,315,000 of refunded debt.
** Includes $9,675,000 of refunded debt
City of Bremerton / 119
Table 13
Water and Sewer Revenue Bond Coverage
Last Ten Fiscal Years
* Net of depreciation, amortization and City taxes.
Maintenance &
Net Revenue
Fiscal
Gross
Operating
Available For
Year
Revenue
Expenses*
Debt Service
2002
16,447,132
8,770,277
7,676,855
2003
16,600,789
9,000,574
7,600,215
2004
17,379,274
10,432,584
6,946,690
2005
19,516,612
11,751,679
7,764,933
2006
21,732,894
10,951,004
10,781,890
2007
23,009,152
11,486,862
11,522,290
2008
23,021,132
13,023,575
9,997,557
2009
22,697,794
13,160,506
9,537,288
2010
22,172,232
12,563,519
9,608,713
2011
22, 869,304
12, 807,726
10,061,578
* Net of depreciation, amortization and City taxes.
Current
Current
Coverage
Principal
Interest
Total
Ratio
2,025,000
735,200
2,760,200
2.78
2,145,000
657,620
2,802,620
2.71
2,270,000
533,720
2,803,720
2.48
2,390,000
413,410
2,803,410
2.77
2,555,659
305,144
2,860,803
3.77
2,815,000
242,816
3,057,816
3.77
305,000
223,202
528,202
18.93
320,000
210,148
530,148
17.99
330,000
196,452
526,452
18.25
335,000
182,328
517,328
19.45
* Net of depreciation, amortization and City taxes.
920 /Statistical Section
Table 14
Demographic Statistics
Last Ten Fiscal Years
Fiscal Population *
Personal **
Income
School * **
# of * * **
Rate of * * * **
Year Number
Income ($000)
Per Capita
Enrollment
Housing Units
Unemployment
2002 38,604
1,219,605
31,593
5,894
16,576
6.1
2003 38,730
1,265,712
32,680
5,787
16,617
5.4
2004 37,520
1,299,639
34,639
5,703
16,615
5.9
2005 34,580
1,287,196
37,224
5,412
16,607
5.1
2006 35,910
1,382,427
38,497
5,209
16,615
4.7
2007 35,810
1,486,858
41,521
4,998
16,797
4.4
2008 36,860
1,574,351
42,712
5,061
17,171
4.4
2009 36,620
1,568,169
43,404
4,835
17,170
7.4
2010 36,190
1,530,837
42,300
4,855
17,273
7.3
2011 38,790
1,640,817
42,300
5,175
16,915
7.6
* State of Washington, Office of Financial Management
** U.S. Department of Commerce - Bureau of Economic Analysis (County data prorated based on local
population)
* ** 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 / 929
Table 15
Miscellaneous Statistics
DATE OF INCORPORATION
October 14, 1901
FORM OF GOVERNMENT
Council - Mayor
Type of Government
Home -Rule Charter
Demographics in 2011
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 - 2011
Priority 1 Response Time (minutes)
Police Protection
Number of Police Officers
Calls for Service - 2011
Average Priority 1 Response Time (minutes)
Average Priority 2 Response Time (minutes)
Parks & Recreation
Number of Developed Parks
Number of Park Acres
Senior Centers
Bremerton Family YMCA
Community Pool - 7arstad Aquatic Center
Golf - Gold Mountain Golf Complex
Ice Arena - Bremerton Ice Arena
Business Licenses
Number of Business Licenses Issued - 2011
Number of Business Licenses Issued in City Limits
26.9 Square Miles
312.98
56
3
6,810
5:14
58
56,547
1:51
4:03
31
709.50
1
1
1
1
1
5726
2500
FIRE
922 /Statistical Section
Table 16 Continued
Water Utility Services
9,549
Residential Accounts
16,283
Commercial Accounts
1,762
Storage Capacity (gallons)
33,240,000
Casad Dam Capacity (gallons)
1.4 bil
Average Daily Demand (millions per gallon -MG)
7.1
Reservoirs
16
Watershed Land (square miles)
12.96
Sources:
45
Surface Supply (MG) 1,616.11
Ground Supply (MG) 867.27
Miles of Main 322
Bremerton supplies 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
9,549
Commercial Sewer Accounts
915
Miles of Main
141
Miles of Force Main
31
Sewage Pump Stations
39
Grinder Pump Stations
82
Westside Wastewater Treatment Plant:
Average Annual Flow - MGD
5.0
Hydraulic Peak Capacity - MGD
45
Permitted Average
12.5
Eastside CSO Plant
Peak Treatment Capacity - MGD
20
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 9,841
Commercial Accounts 1,024
Miles of Mains 114
It is the mission of the Stormwater Program within the Department to control
flooding, enhance water quality, protect sensitive habitat areas, and optimize the
recharge of local aquifers.
City of Bremerton / 923
Forestry
Water and Utlity Forest Lands (acres)
Table 16 Continued
City Streets
50
Street Miles
156
State Highway Miles
19
Miles of Sidewalks
115
Signalized Traffic Intersections
40
Street Lights:
City Owned
371
Leased from Puget Sound Energy
1,699
Signs, Crosswalks & Lane Markings
7,700
Forestry
Water and Utlity Forest Lands (acres)
8,300
Miles of Forest Roads
50
Timber Harvested (board feet)
1.7 mil
Biosolids applied (cubic yards)
2,750
Reforestation (seedlings planted)
18,000
Public Schools
Bremerton is served primarily by Bremerton School District #100. A small percentage of children attend Central Kitsap School District
#401.
Elementary 6
Middle School 1
Junior High 1
High School 1
Vocational School 1
Colleges
Olympic College
1600 Chester Ave., Bremerton
360 792 -6050
1 800 259 -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
360 377 -3911
Local Transportation
Washington State Ferries
Seattle Bremerton Route - Total Annual Rides (2011)
Kitsap Transit (2011)
Foot Ferry
Annual Rides - Port Orchard & Annapolis
Buses (County Wide)
Annual Bus Rides
Kitsap Access Bus
Sources: Washington State Ferries
Kitsap Transit
Naval Hospital Bremerton
1 Boone Road, Bremerton
1 800 422 -1383
2,361,563
454,649
2,914,402
302,500
924 /Statistical Section
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