HomeMy WebLinkAbout2010 Annual ReportCity of Bremerton, Washington
Annual Financial Report
For the Fiscal Year ended
December 31, 2010
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, 2010
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 ................................................................................................................... ............................... 21
Statementof Activities ..................................................................................................................... ............................... 22
Fund Financial Statements:
Balance Sheet — Governmental Funds .............................................................................................. ............................... 23
Statement of Revenues, Expenditures, and Changes in Fund Balances —
GovernmentalFunds ................................................................................................................ ............................... 24
Reconciliation of the Statement of Revenues, Expenditures, and Changes
In Fund Balances of Governmental Funds to the Statement of Activities ................................ ............................... 25
Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual
GeneralFund ............................................................................................................................ ............................... 26
Statement of Net Assets — Proprietary Funds ................................................................................... ............................... 27
Statement of Revenues, Expenses, and Changes in Fund Net Assets — Proprietary Funds .............. ............................... 28
Statement of Cash Flows — Proprietary Funds ................................................................................. ............................... 29
Statement of Fiduciary Net Assets — Fiduciary Funds ..................................................................... ............................... 31
Notes to the Financial Statements ............................................................................................................ ............................... 33
Required Supplementary Information:
LEOFFI Pension Benefits ............................................................................................................... ............................... 63
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet — Nonmajor Governmental Funds .................................................................. ............................... 65
Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor Governmental Funds ........... 68
Schedules of Revenue, Expenditures, and Changes in Fund Balances — Budget and Actual:
SpecialRevenue Funds .................................................................................................................... ............................... 71
DebtService Funds .......................................................................................................................... ............................... 84
CapitalProjects Funds ..................................................................................................................... ............................... 87
Combining Statement of Net Assets — Internal Service Funds ............................................................... ............................... 93
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets — Internal Service Funds ......................... 94
Combining Statement of Cash Flows — Internal Service Funds ............................................................. ............................... 95
Combining Statement of Fiduciary Net Assets - Agency Funds .............................................................. ............................... 97
Table of Contents
Statistical Section
Financial Trends:
Page
Table 1 —
Net Assets by Component
99
Table 2 —
Changes in Net Assets
100
Table 3 —
Fund Balance of Government Funds
101
Table 4 —
Changes in Fund Balances of Government Funds-----------------------------------------------------------------------------------------
- - - - -- 102
Revenue Capacity:
Table 5 —
Assessed and Estimated Actual Value of Taxable Property --------------------------------------------------------------------------
- - - - -- 103
Table 6 —
Property Tax Rates Direct and Overlapping Governments Last 10 Fiscal Years ------------------------------------------
- - - - -- 104
Table 7 —
Principal Property Taxpayers
105
Table 8 -
Property Tax Levies and Collections
106
Debt Capacity
Table 9 —
Ratio of Net General Bonded Debt
107
Table 10
— Computation of Direct and Overlapping Debt---------------------------------------------------------------------------------------------
- - - - -- 108
Table 11
— Computation of Legal Debt Margin
109
Table 12
— Ratio of Annual Debt Service Expenditures for General Bonded Debt
To Total General Expenditures
110
Table 13
— Water and Sewer Revenue Bond Coverage -------------------------------------------------------------------------------------------------
- - - - -- 111
Demographic and
Economic Information:
Table 14
—Demographic Statistics
112
Table 15
— Top Ten Principal Employers — Current and Ten Years Ago ----------------------------------------------------------------------
- - - - -- 113
Table 16
— Miscellaneous Statistics
114
INTRODUCTORY SECTION
City of Bremerton / 9
June 27, 2011
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, 2010. 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 2010 population of
36,620 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
Kitsap County's business climate is as healthy as our environment thanks to the presence of major Naval
installations, including the Puget Sound Naval Shipyard, Naval Base Kitsap, Naval Undersea Warfare
Center Division Keyport, and Naval Hospital Bremerton. Our county has a skilled workforce of
approximately 125,000, of whom roughly 35% commute to jobs in Seattle- Tacoma metropolitan centers.
Local jobs are found in approximately 119,000 non - agricultural positions covered by unemployment
insurance, and in thousands of other sole proprietorships.
For over a century, the City of Bremerton has been home to Puget Sound Naval Shipyard, which 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
2697 employees and Olympic College with 1474 employees.
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.
■ Relevant Financial Policies
Financial and Budget Policy Statements are presented on pages 157 -160 of the 2011 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.
City of Bremerton / 3
■ 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 2010, the City levied at the statutory limitation of $2.16 per thousand
of assessed value.
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, Finance Officer, 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
2010
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.
FINANCIAL SECTION
City of Bremerton / 7
Independent Auditor's Report on Financial
Statements
City of Bremerton
Kitsap County
January 1, 2010 through December 31, 2010
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,
2010, which collectively comprise the City's basic financial statements as listed on page 12.
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, 2010, 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.
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.
The management's discussion and analysis on pages 13 through 24 and information on
postemployment benefits other than pensions on page 66 are not a required part of the basic
financial statements but are supplementary information required by the Governmental
8 /Financial Section
Accounting Standards Board. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation
of the required supplementary information. However, we did not audit the information and
express no opinion on it.
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 has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated, in all material
respects, in relation to the basic financial statements taken as a whole.
September 2, 2011
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, 2010. 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 2010, the assets of the City exceeded its liabilities by $238.1 million. Net assets
invested in capital assets (net of depreciation and related debt) account for over 81.9 percent of this amount
($195.1 million). Net assets restricted primarily for construction projects, debt service, Community
Development Block Grant (CDBG) programs and public safety account for another 2.1 percent of this amount
($5.1 million). The remaining net assets of $33.4 million may be used to meet the City's ongoing obligations to
citizens and creditors.
• The City's net assets increased by $11.7 million (5.2 %) during the fiscal year. The governmental net assets
increased by $2.4 million (3 %) from the amount reported in 2009. Business -type net assets increased by $9.3
million (6.4 %). The Business -type increase included net income before contributions and transfers for the
Water utility of $643,263, Wastewater utility of $4,052,102, Stormwater utility of $557,364 and Golf Course
$(57,025).
As of December 31, 2010, the City's governmental funds reported a combined fund balance of $15.0 million,
an increase of 42.4% from the prior year end. The fund balance of the General Fund increased by $989,374.
The remaining non -major governmental funds had a fund balance increase of $3,486,306. The overall increase
is largely attributable to the issuance of $9,130,000 of General Obligations bonds for capital projects of which
$4.4 million was still unspent at year end. Approximately $14.6 million (97.3 %) of the combined ending
governmental fund balances is unreserved fund balance available to the City for future appropriation.
• At the end of 2010, the unreserved fund balance of the General Fund was $3 million or approximately nine
percent of total General Fund expenditures of $33.7 million. The General Fund's unreserved fund balance
increased by $989,374 from the prior year's amount of $2.1 million, a 48 percent increase. This increase is
primarily due to a reduction of transfers to the Street and Conference Center funds in 2010.
• The City's total outstanding debt increased by $11.9 million (18.3°/x) during the current fiscal year to $77.1
million. General obligation debt increased by $8.8 million and revenue debt increased by $3.1 million. Debt
per capita increased from $1,781 to $2,131, a 19.7% increase.
• Governmental revenues from local tax sources including sales, business & occupation, utility, and other
miscellaneous taxes, decreased by approximately $301,000 to $23.9 million in 2010, a 1.2 decrease from 2009.
The tax revenue decrease is primarily attributed to a decrease in the overall economic activity in the City.
Overview of the Financial Statements
The City's basic financial statements are presented in three parts: 1) government -wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. Other supplementary information in addition to the
basic financial statements is also contained in this report. This section of the management's discussion and analysis
is intended to introduce and explain the basic financial statements.
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), physical environment, transportation,
mental /physical health, and culture and recreation. The City's business -type activities are limited to the City's
municipal golf course and water, wastewater and stormwater utilities. Governmental activities are primarily
supported by taxes, charges for services, and grants while business -type activities are self - supporting through user
fees and charges.
The statement of net assets presents information on all of the City'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 (23) individual governmental funds in 2010. 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 (4) 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 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, 2010 total $238.1 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
72,088
(5,183)
128,159
122,330
5,829
195,064
194,418
646
8,277
Amounts in 000's
5,166
Goverrunental Activities
1,175
Business -Type Activities
9,583
4,286
Total
9,434
9,159
2010
2009 Difference
2010
2009 Difference
2010
2009
Difference
Current Assets
$ 15,119
$ 14,231 $
888
$ 24,490
$ 19,124 $
5,366
$ 39,609
$ 33,355
$ 6,254
Restricted Assets
8,725
3,111
5614
1,658
1,620
38
10,383
4,731
5,652
Capital Assets
101,558
98,648
2910
169,471
163,959
5,512
271,029
262,607
8,422
Other Noncurrent Assets
666
521
145
1,288
1,364
(76)
1,954
1,885
69
Total assets
126,068
116,511
9,557
196,907
186,067
10,840
322,975
302,578
20,397
Current Liabilities
Payable from Restricted
Assets
Noncurrent Liabilities
Total liabilities
Net assets
Invested in capital assets, net of
related debt
Restricted
Unrestricted
Total net assets
6,126 4,860 1,266 5,276 5,800 (524) 11,402 10,660 742
449 30 25 5 479 25 454
34,877 27,293 7,584 38,163 35,351 2,812 73,040 62,644 10,396
41,452 32,153 8,850 43,469 41,176 2,293 84,921 73,329 11,592
66,905
72,088
(5,183)
128,159
122,330
5,829
195,064
194,418
646
8,277
3,111
5,166
1,306
1,175
131
9,583
4,286
5,297
9,434
9,159
275
23,973
21,386
2,587
33,407
30,545
2,862
$ 84,616
$ 84,358 $
258
$ 153,438
$ 144,891 $
8,547
$ 238,054
$ 229,249 $
8,805
The largest component of the City's net assets, $195.0 million (or 81.9 %), 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 $8.3 million of governmental restricted assets, $4.8 million or 57.4% is restricted for the
construction of capital assets. $2.8 million of restricted net assets are special revenues restricted primarily for use in
the Community Development Block Grant program (46.5 %), for law enforcement services (35.0 %) and Parking
system operation and debt service (24.6 %). $1.31 million of business -type restricted assets are required reserves for
debt service payments. A total of $24.0 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 stormwater utility activities.
Maintenance of utility delivery systems (water lines, pump station, wells), storm drain flushing, water meter
reading, and capital construction projects, such as well rehabilitation, are examples of utility activities. Other
functions of the City may access the remaining net assets of $9.4 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 2010 with net assets increasing
City of Bremerton / 13
approximately $11.7 million. Net assets of governmental activities increased by $2.4 million and the net assets of
business -type activities increased by $9.3 million.
Following is a condensed version of the City's changes in net assets. The table shows the revenues, expenses, and
related changes in net assets in tabular form for the governmental activities separate from the business -type
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
(750)
Total
3,251
2010
2009
Difference
2010
2009 Difference
2010
2009
Difference
Revenues
24,188
23,923
265
Physical environment
219
227
(8)
Program revenues
219
227
(8)
Transportation
4,012
4,215
(203)
Charges for services
$ 7,975
$ 9,066
$ (1,091)
$ 25,982
$ 27,620 $
(1,638)
$ 33,957
$ 36,686
$ (2,729)
Operating grants and contributions
2,685
2,227
458
66
34
32
2,751
2,261
490
Capital grants and contributions
3,748
3,922
(174)
7,417
3,882
3,535
11,165
7,804
3,361
General revenues
977
962
15
Business -type activities
Property taxes
8,554
8,490
64
-
-
-
8,554
8,490
64
Sales taxes
6,539
6,542
(3)
Wastewater
15
(15)
6,539
6,557
(18)
Business taxes
3,407
3,707
(300)
6
6
3,413
3,707
(294)
Utility taxes
4,531
4,754
(223)
Other proprietary funds
-
4,531
4,754
(223)
Other taxes
2,391
2,461
(70)
-
-
-
2,391
2,461
(70)
Other general revenues
1,429
217
1,212
584
557
27
2,013
774
1,239
Total revenues
$ 41,259
$ 41,386
$ (127)
$ 34,055
$ 32,108 $
1,947
$ 75,314
$ 73,494
$ 1,820
Expenses
Governmental activities
General government
3,251
4,001
(750)
3,251
4,001
(750)
Public safety
24,188
23,923
265
24,188
23,923
265
Physical environment
219
227
(8)
219
227
(8)
Transportation
4,012
4,215
(203)
4,012
4,215
(203)
Community development
3,310
2,032
1,278
3,310
2,032
1,278
Culture and recreation
6,510
5,945
565
6,510
5,945
565
Interest on long -term debt
977
962
15
-
-
-
977
962
15
Business -type activities
Water
8,299
9,243
(944)
8,299
9,243
(944)
Wastewater
9,010
8,927
83
9,010
8,927
83
Golf course
2,256
3,198
(942)
2,256
3,198
(942)
Other proprietary funds
1,603
1,478
125
1,603
1,478
125
Total expenses
$ 42,467
$ 41,305 $
1,162
$ 21,168
$ 22,846 $
(1,678)
$ 63,635
$ 64,151 $
(516)
Excess of revenues over expenses
(1,208)
81
(1,289)
12,887
9,262
3,625
11,679
9,343
2,336
Transfers
3,611
4,176
(565)
(3,611)
(4,176)
565
-
-
-
Change in net assets
2,403
4,257
(1,854)
9,276
5,086
4,190
11,679
9,343
2,336
Net assets - beginning
84,358
85,912
(1,554)
144,891
128,901
15,990
229,249
214,813
14,436
Prior period adjustment/specialiterns
(2,145)
(5,811)
3,666
(729)
10,904
(11,633)
(2,874)
5,093
(7,967)
Net assets - ending
$ 84,616
$ 84,358 $
258
$ 153,438
$ 144,891 $
8,547
$ 238,054
$ 229,249 $
8,805
Governmental activities accounted for an increase of $2.4 million of the total change in net assets of $11.7 million.
Significant elements of the increase are as follows:
■ Expenditures increased by $1.1 million in 2010 compared to 2009. Reductions occurred in most functional
areas, as a significant effort was made to offset lower tax revenues. The most notable exceptions were in the
14 /Financial Section
areas of Community Development and Culture and Recreation. Expenditures for Community Development
increased 62.8% in 2010 primarily due to the purchase of property in the Harborside District that was
reconfigured and later resold as part of an ongoing economic development effort (.9M). Additionally
expenditures for Community Development Block Grant funded projects increased by .5 million. Expenditures
for Culture and Recreation increased $565,000 (9.5 %) from 2009 levels. The Parks maintenance function
increased $160,000 primarily due to additional maintenance and utility costs of the new Memorial Plaza. 2009
expenditures for the Conference Center operating fund were artificially low due to a $200,000 settlement of a
multiyear expense reimbursement agreement that was settled and paid in that year. Expenditures for the
operation of the Kitsap Conference Center increased by approximately $70,000 in 2010 due to an increase in
events at the facility.
Total revenue from governmental activities decreased by $.1 million. Tax revenues that support ongoing
operations decreased by $.53 million in 2010 from the 2009 level with decreased collections in sales, business,
utility and other taxes. Operating and Capital Grants and Contributions partially offset the decrease in taxes
increasing .28 million over 2009. New grant funded projects in 2010 include a street improvement project at
11 St & Warren Avenue as well as a Master Planning grant for the South Kitsap Industrial Area (SKIA). Other
general revenues which include interest earnings, gains on disposal of assets, and miscellaneous income,
increased by $1.3 million in 2010 from the 2009 level. The largest component of this increase was the sale to a
private developer of property purchased for economic development purposes ($.9 million).
■ Transfers continued to play a significant role in the increase to net assets in 2010. Transfers from Business -type
activities decreased $.6 million in 2010. Payments in lieu of tax levied on the city's own utilities increased by
$681,686 (23 %). The levy amount was increased by 6% as of January 1, 2010 contributing to the large
increase. This increase was offset by the elimination of a $1.0 million one time transfer to return equipment
replacement reserves that occurred in 2009.
Revenue by Source - Governmental Activities
Amounts in $000
2009 and 2010
10,000
9,000
8,000
®2009
7,000
®2010
6,000
5,000
4,000
3,000
2,000
1,000
0
Operating
Capital
Other
Charges for
Property
Business
grants and
grants and
Sales taxes
Utility taxes
Other taxes
general
services
contributions
contributi ons
taxes
taxes
revenues
®2009
9,066
2,227
3,922
8,490
6,542
3,707
4,754
2,461
217
®2010
7,975
2,685
3,748
8,554
6,539
3,407
4,531
2,391
1,429
City of Bremerton / 15
Expenditures by Type - Governmental Activities
Amounts in $000 2009 and 2010
M2009
M2010
30,000
25,000
20,000
15,000
10,000
5,000
0
General
Physical
Coimnunity
Culture and
Interest on long -
Public safety
Transportation
goveranent
enviromnent
development
recreation
term debt
®2009
4,001
23,923
227
4,215
2,032
5,945
962
®2010
3,251
24,188
219
4,012
3,310
6,510
977
Expenses and Program Revenues -Governmental Activities
Amounts in $000 2010
Business -type activities increased City's net assets by $9.3 million accounting for 79% 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 2010 increasing $3.5 million over 2009 levels. The City received $6 million in American
Recovery and Reinvestment Act funding to address water quality and potential public health issues
associated with failing on -site septic systems in the Gorst area of Bremerton.
16 /Financial Section
Charges for services decreased $1.6 million in 2010. This decrease was largely offset by a decrease of Golf
course expenditures of $.94 million. These decreases were the result of a change to the contract for
operations of the City's Gold Mountain Golf Course which moved the restaurant operations to the
contractor.
• Transfers to Governmental Activities increased by $.57 million. This increased was primarily attributable
to a 6% increase in the levy of payment in lieu of tax to the General Fund effective January 1, 2010.
Revenue by Source - Business -type Activities
City of Bremerton / 17
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 2010, the fund balance of the General Fund was $3.05 million. As a measure of the
fund's liquidity, the ending fund balance is 9.0% of the fund's 2010 expenditures.
The General Fund balance increased in 2010 by $.99 million. Revenues increased from $30.6 million in 2009 to
$31.2 million in 2010. Expenditures remained at $33.7 million during the same period. Expenditures exceeded
revenues in the General Fund by $2.5 million in 2010 but were offset by net transfers and other financing sources
of $3.5 million.
18 /Financial Section
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 2010 capital improvement
program there were no significant transactions pertaining to the proprietary funds.
General Fund Budget Variations
The General Fund collected revenues at 98.7% of the amended amount budgeted or $.44 million less than budgeted.
Expenditures for 2010 were 96.5% 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 a multi jurisdictional police equipment grant and decreased miscellaneous
revenues. The positive expenditure budget variance is largely attributable to actual expenditures in the Police and
Police & Fire Pension departments coming in less than projected.
The General Fund budget was balanced in 2010. The original budget provided for no increase to the fund balance.
The budget was amended two times during 2010. The final amended budget provided for an increase to fund
balance of $178,315. At the conclusion of 2010, the General Fund increased fund balance by $.98 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, 2010,
amounts to $271.0 million (net of accumulated depreciation). This investment in capital assets includes land,
buildings, improvements, machinery and equipment, construction in progress, utility transmission /distribution
systems, and roads.
The major capital asset additions for governmental activities during 2010 were the completion of a new Court
facility and reconstruction of Lions Park.
The major capital assets changes for business -type activities included the construction of wastewater and water
capital improvement projects identified within the City's 2010 capital improvement plan. Beginning construction in
progress was reduced for expenditures in prior years for the sewer portion of the Bremerton Boardwalk project
($.91 million).
Capital Assets for all activities decreased $3.7 million in 2010 as a result of special items and other adjustments.
Governmental activities decreased $1.4 million and business activities decreased $.91 million for prior year
expenditures related to the Bremerton Boardwalk project which was abandoned because of a failure to secure
necessary permits stemming from the opposition of the other governmental entities involved. Construction in
progress for governmental activities also was decreased by $1.4 million for prior year expenditures that were
determined to not be capital in nature. Business -type activities increased $.19 million as a result of a correction for
an overstatement of depreciation in the city's golf course.
Additional information on the City's capital assets can be found in Note 6 and Note 16.
Long -term debt
New debt for governmental activities in 2010 consisted of two general obligation bond issues totaling $9,130,000 to
finance the construction of a parking garage on Park Avenue. General obligation refunding bonds in the amount of
$9,315,000 were also issued to retire a portion of outstanding bonds issued in 2002 for public safety improvements.
New debt for business -type activities in 2010 consisted of $6,149,674 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 2010 totaled $13,286,541.
Outstanding Debt - General Obligation and Revenue Bonds
Amounts in 000's
Governmental Activities
Business -Type Activities
Total
City of Bremerton / 19
2010 2009 Difference
2010
Capital Assets (net of depreciation)
2010
2009
Difference
General obligation bonds
Amounts in 000's
Governmental Activities
$ 5,373 $
Business -Type Activities
$ 35,706
$ 26,847
Total
Revenue bonds
5,245 5,245 -
2010
2009 Difference
2010
2009 Difference
2010
2009
Difference
Land
$ 15,966
$ 15,472 $
494
$ 8,565
$ 8,138 $
427
$ 24,531
$ 23,610
$ 921
Buildings
47,890
47,290
600
33,394
31,469
1,925
81,284
78,759
2,525
Improvements /Infrastructure
26,484
26,688
(204)
86,355
82,453
3,902
112,839
109,141
3,698
Machinery and Equipment
3,770
4,301
(531)
30,360
24,644
5,716
34,130
28,945
5,185
Construction in Progress
7,448
4,897
2,551
10,797
17,255
(6,458)
18,245
22,152
(3,907)
TOTAL
$ 101,558
$ 98,648 $
2,910
$ 169,471
$ 163,959 $
5,512
$ 271,029
$ 262,607
$ 8,422
Additional information on the City's capital assets can be found in Note 6 and Note 16.
Long -term debt
New debt for governmental activities in 2010 consisted of two general obligation bond issues totaling $9,130,000 to
finance the construction of a parking garage on Park Avenue. General obligation refunding bonds in the amount of
$9,315,000 were also issued to retire a portion of outstanding bonds issued in 2002 for public safety improvements.
New debt for business -type activities in 2010 consisted of $6,149,674 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 2010 totaled $13,286,541.
Outstanding Debt - General Obligation and Revenue Bonds
Amounts in 000's
Governmental Activities
Business -Type Activities
Total
2010 2009 Difference
2010
2009 Difference
2010
2009
Difference
General obligation bonds
$ 30,438 $ 21,474 $ 8,964
$ 5,268
$ 5,373 $
(105)
$ 35,706
$ 26,847
$ 8,859
Revenue bonds
5,245 5,245 -
4,260
4,590
(330)
9,505
9,835
$ (330)
Revenue loans
- - -
31,928
28,543
3,385
31,928
28,543
$ 3,385
Total
$ 35,683 $ 26,719 $ 8,964
$ 41,456
$ 38,506 $
2,950
$ 77,139
$ 65,225
$ 11,914
Additional Information on the City's long -term debt can be found in Note 9 of this report.
Economic Factors and Next Years Budgets and Rates
Several factors that affect the economic climate in Bremerton were considered when preparing the City's 2011
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 2010 and are expected to continue through 2011 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.
20 /Financial Section
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 2010; 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 and First Street Plaza. Construction of a parking garage at Burwell and Park Ave
is underway. The revitalization of Lions Park is underway with completion expected in 2011. The development of a
significant housing development in East Park is also currently underway.
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 that are 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 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 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. Rates were not increased
January 1, 2010 pending the results of a planned update to this study. 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.
BASIC FINANCIAL STATEMENTS
City of Bremerton / 29
Statement of Net Assets
December 31, 2010
Primary Government
Assets
Cash & investments
Receivables (Note 13)
Interest receivable
Internal balances
Due from other governments
Inventories
Prepayments
Restricted assets:
Cash & investments
Receivables
Other governments
Other
Notes and contracts receivable
Capital assets net of depreciation
Other assets
Total assets
Liabilities
Accounts /contracts payable (Note 13)
Matured long term obligations
Due to other governmental units
Employee wages payable
Other accrued liabilities
Custodial accounts
Payable from restricted assets:
Claims and judgements payable
Bonds, notes and loans payable
Due within One Year
Due in more than one year
Other non current liabilities
Total liabilities
Net Assets
Invested in capital assets net of related debt
Restricted for:
Tourism promotion & facilities
Parking system
Community development block grant
Public Television
Public safety
Debt service
Workers compensation
Capital projects
Unrestricted
Total Net Assets
Governmental
Activities
Business -Type
Activities
Total
$ 9,725,417
$ 17,974,881 $
27,700,298
4,119,746
4,421,209
8,540,955
14,550
27,333
41,883
(59,153)
59,153
-
1,141,761
1,062,772
2,204,533
121,163
944,512
1,065,675
54,885
-
54,885
6,585,640
1,336,141
7,921,781
1,426,027
322,392
1,748,419
264,282
-
264,282
449,345
-
449,345
-
537,478
537,478
101,558,174
169,470,786
271,028,960
665,840
750,848
1,416,688
$ 126,067,677 $ 196,907,505 $ 322,975,182
$ 2,008,805 $
1,144,268 $
3,153,073
-
25,000
25,000
18,617
-
18,617
953,800
699,067
1,652,867
2,132,555
208,826
2,341,381
-
8,280
8,280
449,345
30,238
479,583
777,579
-
777,579
1,012,500 3,190,802 4,203,302
33,949,021 38,121,343 72,070,364
149,927 41,648 191,575
$ 41,452,149 $ 43,469,472 $ 84,921,621
$ 66,905,386 $ 128,158,641 $ 195,064,027
54,653
- 54,653
679,419
- 679,419
1,284,542
- 1,284,542
66,697
- 66,697
965,760
- 965,760
309,723
1,305,903 1,615,626
100,000
- 100,000
4,815,155
- 4,815,155
9,434,193
23,973,489 33,407,682
$ 84,615,528 $
153,438,033 $ 238,053,561
See accompanying notes to the financial statements.
22 /Financial Section
Statement of Activities
For the Year Ended December 31, 2010
Business -type activities
Water
8,298,916
8,640,615
18,000 781,137
1,140,836
Net (Expense) Revenue and
Wastewater
9,009,876
13,031,955
- 6,512,291
Program Revenues
10,534,370
Changes in Net Assets
1,603,135
2,118,465
47,812 123,890
687,032
Operating
Capital
2,256,772
2,190,710
- -
(66,062)
Charges for
Grants and
Grants and
Governmental Business -Type
65,812 7,417,318
Function/Program
Expenses
Services
Contributions
Contributions
Activities Activities
Total
Governmental activities:
General government
$ 3,250,587
$ 577,977
$ -
$ 2,303
$ (2,670,307) $ $
(2,670,307)
Public safety
24,187,445
3,013,875
1,528,987
-
(19,644,583)
(19,644,583)
Physical environment
219,431
71,455
-
-
(147,976)
(147,976)
Transportation
4,012,477
1,273,416
-
1,014,942
(1,724,119)
(1,724,119)
Community development
3,310,097
585,929
1,156,294
-
(1,567,874)
(1,567,874)
Culture and recreation
6,510,247
2,451,881
-
2,731,037
(1,327,329)
(1,327,329)
Interest on long -term debt
976,987
-
-
-
(976,987)
(976,987)
Total governmental activities
42,467,271
7,974,533
2,685,281
3,748,282
(28,059,175)
(28,059,175)
Business -type activities
Water
8,298,916
8,640,615
18,000 781,137
1,140,836
1,140,836
Wastewater
9,009,876
13,031,955
- 6,512,291
10,534,370
10,534,370
Stormwater
1,603,135
2,118,465
47,812 123,890
687,032
687,032
Golfcourse
2,256,772
2,190,710
- -
(66,062)
(66,062)
Total business -type activities
21,168,699
25,981,745
65,812 7,417,318
12,296,176
12,296,176
Total government $ 63,635,970 $ 33,956,278 $ 2,751,093 $ 11,165,600 $ (28,059,175) $ 12,296,176 $ (15,762,999)
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
8,553,934
8,553,934
6,538,977
-
6,538,977
3,406,535
6,486
3,413,021
4,531,307
-
4,531,307
2,391,050
-
2,391,050
219,954
285,884
505,838
1,239,709
291,150
1,530,859
(31,146)
7,212
(23,934)
3,610,764
(3,610,764)
-
30,461,084
(3,020,032)
27,441,052
Change in net assets
Net asssets- beginning
Prior period adjustment (Note 16)
Special Items (Note 16)
Net assets - ending
2,401,909 9,276,144 11,678,053
84,358,110 144,890,858 229,248,968
(710,065) 183,678 (526,387)
(1,434,426) (912,647) (2,347,073)
$ 84,615,528 $ 153,438,033 $ 238,053,561
See accompanying notes to the financial statements.
City of Bremerton / 23
Balance Sheet
Governmental Funds
December 31, 2010
Liabilities and Fund Balances
Liabilities:
Accounts /contracts payable
$ 470,281 $
Other
Total
Due to other funds
331,119
Governmental
Governmental
Due to other governments
General
Funds
Funds
Assets
753,664
112,959
866,623
Cash & investments
$ 1,955,063
$ 12,141,924
$ 14,096,987
Receivables (Note 13)
3,835,070
850,552
4,685,622
Due from other funds
455,624
35,292
490,916
Due from other governments
164,869
1,163,041
1,327,910
Inventories
-
37,575
37,575
Notes /contracts - deferred
-
854,826
854,826
Total assets
$ 6,410,626
$ 15,083,210
$ 21,493,836
Liabilities and Fund Balances
Liabilities:
Accounts /contracts payable
$ 470,281 $
1,412,945 $
1,883,226
Due to other funds
331,119
266,469
597,588
Due to other governments
534
18,083
18,617
Employee wages payable
753,664
112,959
866,623
Other current liabilities
-
97,053
97,053
Deferred revenues
1,805,150
1,200,020
3,005,170
Total liabilities
3,360,748
3,107,529
6,468,277
Fund balances:
Reserved for:
Inventories
-
37,575
37,575
Paths and trails
-
62,605
62,605
Equipment replacement
-
290,898
290,898
Unreserved, reported in:
General fund
3,049,878
-
3,049,878
Debt service funds
-
433,778
433,778
Special revenue funds
-
4,488,327
4,488,327
Capital projects funds
-
6,662,498
6,662,498
Total fund balances
3,049,878
11,975,681
15,025,559
Total liabilities and fund balances
$ 6,410,626 $
15,083,210 $
21,493,836
Amounts reported for governmental activities in the statement of nets assets are different because:
Capital assets used in governmental activities are not financial resources 101,558,174
and therefore not reported in the funds.
Other long -term assets are not available to pay for current - period 3,760,559
expenditures and therefore are deferred in the funds. (Note 2)
Internal service funds are used by management to charge the costs of certain activities to individual funds. 970,189
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 (36,698,953)
funds. (Note 2)
Net assets of governmental activities $ 84,615,528
See accompanying notes to the financial statements.
24 /Financial Section
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For Year Ended December 31, 2010
Expenditures
Other
Governmental
Current
General
Governmental
Funds
General government
Fund
Funds
Total
Revenues
21,910,061
459,507
22,369,568
Taxes
$ 21,840,756
$ 2,117,837
$ 23,958,593
Licenses and permits
903,624
261,770
1,165,394
Intergovernmental
2,598,670
5,667,781
8,266,451
Charges for services
3,880,424
1,768,483
5,648,907
Fines and forfeits
1,218,281
363,656
1,581,937
Miscellaneous
730,105
2,232,133
2,962,238
Total revenues
31,171,860
12,411,660
43,583,520
Expenditures
Current
-
19,050,000
19,050,000
General government
6,516,256
362,202
6,878,458
Public safety
21,910,061
459,507
22,369,568
Utilities and environment
219,431
-
219,431
Transportation
339,655
2,671,193
3,010,848
Economic environment
1,252,781
2,016,478
3,269,259
Mental/physical health
75,126
-
75,126
Culture and recreation
2,827,649
2,039,896
4,867,545
Debt service:
Other changes in fund balance
Principal
132,500
639,000
771,500
Interest and other debt issue costs
286,781
677,991
964,772
Capital
150,885
9,210,363
9,361,248
Total expenditures
33,711,125
18,076,630
51,787,755
Excess (deficiency) of revenues
20,231
123,428
Fund balances- ending $
over expenditures
(2,539,265)
(5,664,970)
(8,204,235)
Other financing sources (uses)
Proceeds of Long Term Debt
-
19,050,000
19,050,000
Premiums on Bonds Sold
-
357,267
357,267
Payments to Refunded Debt Escrow Agent
-
(10,387,010)
(10,387,010)
Capital asset donations & disposal
3,754
37,176
40,930
Insurance Recoveries
920
17,709
18,629
Transfers in
4,223,965
1,407,014
5,630,979
Transfers out
(700,000)
(1,320,214)
(2,020,214)
Total other financing sources and uses
3,528,639
9,161,942
12,690,581
Other changes in fund balance
Change in reserves for inventory
-
(10,666)
(10,666)
Net change in fund balances
989,374
3,486,306
4,475,680
Fund balances- beginning
1,957,307
8,469,144
10,426,451
Prior period adjustments
103,197
20,231
123,428
Fund balances- ending $
3,049,878 $
11,975,681 $
15,025,559
See accompanying notes to the financial statements.
City of Bremerton / 25
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, 2010
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances — total government funds $ 4,475,680
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. 5,791,417
Revenues and expenses in the statement of activities that do not provide current
financial resources are not reported in the funds. (38,246)
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. (8,092,501)
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. 291,655
Change in net assets of governmental activities $ 2.428.005
The notes to the financial statement are an integral part of this statement.
26 /Financial Section
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
General Fund
For Year Ended December 31, 2010
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
Economic Development
Non - Departmental
Total expenditures
Excess (deficiency) of revenues
over expenditures
Fund balances- beginning
Fund balances- ending
Expenditures
Personnel
Supplies, services & taxes
Capital expenditure
Debt Service
Transfers
Total expenditures
$ 23,005,000 $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
$ 23,005,000 $
21,837,000 $
21,840,756 $
3,756
953,000
883,000
903,624
20,624
1,900,000
2,571,800
2,598,670
26,870
3,908,100
4,063,100
3,880,424
(182,676)
1,435,000
1,255,000
1,218,281
(36,719)
4,863,000
5,237,699
4,958,744
(278,955)
36,064,100
35,847,599
35,400,499
(447,100)
317,000
322,300
319,425
2,875
445,000
408,000
391,400
16,600
1,421,400
1,296,400
1,173,091
123,309
1,005,100
994,200
935,917
58,283
368,700
348,700
287,350
61,350
1,300,600
1,296,596
1,252,781
43,815
1,406,800
1,377,145
1,310,553
66,592
158,400
158,400
153,511
4,889
10,671,700
10,885,248
10,530,707
354,541
8,143,900
8,162,457
8,132,810
29,647
2,701,000
2,701,000
2,452,947
248,053
819,000
869,294
823,706
45,588
3,242,500
2,964,750
2,926,947
37,803
321,000
408,194
379,845
28,349
3,742,000 3,476,600 3,340,135 136,465
36,064,100 35,669,284 34,411,125 1,258,159
178,315 989,374 811,059
2,370,509 1,938,306 2,060,504 122,198
$ 2,370,509 $ 2,116,621 $ 3,049,878 $ 933,257
25,439,800
25,330,700
24,611,992
718,708
9,026,900
9,104,084
8,528,967
575,117
-
15,900
150,885
(134,985)
467,400
468,600
419,281
49,319
1,130,000
750,000
700,000
50,000
36,064,100
35,669,284
34,411,125
1,258,159
See accompanying notes to the financial statments.
City of Bremerton / 27
Statement of Net Assets
Proprietary Funds
December 31, 2010
Noncurrent assets:
49,548,688
2,501,282 67,710,301
Business -type Activities
Restricted for debt service
37,200
Governmental
537,478
Uresiricted
6,173,025
Enterprise Funds
2,541,408 17,996,966 6,946,712
Restricted Special Assessments Rec
Activities
Accounts/contractpayable $
724,068 $
Golf
-
Prepaid Pension
-
internal
-
Water
Course
Wastewater
Stormwater
Total
Sei vice Funds
Assets
4,462,249
Other noncurrent assets
512,605
23,628
213,644
- 749,877
Current assets:
Total noncurrent assets
59,732,676
7,537,857
95,085,751
4,092,786 166,449,070
4,912,565
Cash & investments
$ 3,449,521 $
404,032
$ 5,995,768 $
2,265,132 $
12,114,453
$ 7,974,498
Restricted Cash
$ 67,438 $
3,117
$ 1,268,703 $
$
1,336,141
100,000
External receivables
1,506,719
3,350
2,479,278
430,811
4,420,158
4,403
Restricted Special Assesments Rec
187,780
-
-
-
187,780
-
Interest receivable
4,978
572
10,282
3,206
19,038
11,429
Due from other funds
234,656
-
86,761
14,169
335,586
170,971
Due from other governments
216,783
-
820,734
25,255
1,062,772
5,329
Inventories
677,136
-
267,376
-
944,512
83,588
Prepayments
-
-
-
-
-
54,885
Total current assets
6,345,011
407,954
10,928,902
2,738,573
20,420,440
8,399,774
Noncurrent assets:
49,548,688
2,501,282 67,710,301
3,954,687 123,714,958 4,462,249
Restricted for debt service
37,200
Notes and contracts receivable
537,478
Uresiricted
6,173,025
537,478
2,541,408 17,996,966 6,946,712
Restricted Special Assessments Rec
134,612
Accounts/contractpayable $
724,068 $
134,612
-
Prepaid Pension
-
-
-
- -
449,345
Capital assets net of depreciation
58,547,981
7,514,229
94,872,107
4,092,786 165,027,103
4,462,249
Other noncurrent assets
512,605
23,628
213,644
- 749,877
971
Total noncurrent assets
59,732,676
7,537,857
95,085,751
4,092,786 166,449,070
4,912,565
Total assets $
66,077,687 $
7,945,811 $
106,014,653 $
6,831,359 $ 186,869,510
$ 13,312,339
Liabilities
49,548,688
2,501,282 67,710,301
3,954,687 123,714,958 4,462,249
Restricted for debt service
37,200
- 1,268,703
Current liabilities:
Uresiricted
6,173,025
394,896 8,887,637
2,541,408 17,996,966 6,946,712
Total net assets $
55,758,913 $
Accounts/contractpayable $
724,068 $
28,361 $
345,406 $
46,433 $
1,144,268 $
125,579
Matured long team obligations
-
-
25,000
-
25,000
-
Due to other funds
118,095
5,169
218,565
40,825
382,654
15,258
Other accrued liabilities
452,786
39
380,440
104,423
937,688
530,288
Current portion of long team debt
607,283
105,000
2,468,655
9,864
3,190,802
-
Custodial accounts
3,830
3,117
1,333
-
8,280
-
Total current liabilities
1,906,062
141,686
3,439,399
201,545
5,688,692
671,125
Noncurrent liabilities:
Claims and judgements payable
-
-
-
-
-
1,226,924
Bonds, notes and loans payable
8,392,010
4,907,947
24,693,151
128,235
38,121,343
-
Compensated absences
20,702
-
15,462
5,484
41,648
5,329
Total noncurrent liabilities
8,412,712
4,907,947
24,708,613
133,719
38,162,991
1,232,253
Total liabilities $ 10,318,774 $ 5,049,633 $ 28,148,012 $ 335,264 $ 43,851,683 $ 1,903,378
Net Assets
Invested in captial assets, net
of related debt
49,548,688
2,501,282 67,710,301
3,954,687 123,714,958 4,462,249
Restricted for debt service
37,200
- 1,268,703
- 1,305,903 -
Uresiricted
6,173,025
394,896 8,887,637
2,541,408 17,996,966 6,946,712
Total net assets $
55,758,913 $
2,896,178 $ 77,866,641 $
6,496,095 $ 143,017,827 $ 11,408,961
Adjustment to reflect the consolidation of
internal service fund activities
related to enterprise funds
10,420,206
Net assets of business -type activities
$ 153,438,033
See accompanying notes to the financial statements.
28 /Financial Section
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended December 31, 2010
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
Golf Internal
Water Course Wastewater Stormwater Total Service Funds
$ 8,187,559 $ 2,116,740 $ 13,031,903 $ 2,118,465 $ 25,454,667 $ 4,683,218
- - - - - 17,362
471,616 73,970 608 47,812 594,006 384,141
8,659,175 2,190,710 13,032,511 2,166,277 26,048,673 5,084,721
1,626,350
626,607
2,585,668
479,991
5,318,616
2,511,012
2,494,379
1,191,799
1,911,124
706,850
6,304,152
-
379,970
-
282,840
44,943
707,753
-
1,055,364
69,845
839,960
269,916
2,235,085
299,197
1,690,372
170,534
2,625,239
92,847
4,578,992
745,432
382,749
9,979
372,923
34,848
800,499
-
-
-
-
-
-
420,358
-
-
-
-
-
576,657
632,192
-
-
-
632,192
54,512
8,261,376
2,068,764
8,617,754
1,629,395
20,577,289
4,607,168
397,799
121,946
4,414,757
536,882
5,471,384
477,553
Interest and investment revenue
100,951
8,528
75,352
26,059
210,890
88,301
Interest expense
(150,194)
(188,008)
(447,494)
(5,722)
(791,418)
-
Gain (loss) on capital asset disposal
6,752
460
-
-
7,212
(22,802)
Other nonoperating revenue
287,955
49
9,487
145
297,636
23,606
Total nonoperating revenues (expenses)
245,464
(178,971)
(362,655)
20,482
(275,680)
89,105
Income (loss) before contributions and transfers
643,263
(57,025)
4,052,102
557,364
5,195,704
566,658
Capital contributions
780,577
-
6,511,735
123,890
7,416,202
-
Transfers in
-
-
100,000
-
100,000
437,029
Transfers out
(1,267,675)
-
(2,015,319)
(427,771)
(3,710,765)
(437,029)
Change in net assets
156,165
(57,025)
8,648,518
253,483
9,001,141
566,658
Total net assets - beginning
55,602,748
2,769,525
70,130,770
6,242,612
10,842,303
Prior period adjustments (Note 16)
-
183,678
-
-
-
Special Items (Note 16)
-
-
(912,647)
-
Total net assets - ending
$ 55,758,913 $
2,896,178
$ 77,866,641 $
6,496,095
$
11,408,961
Adjustment to reflect the consolidation of internal service
fund activities related to enterprise funds
275,003
Change in net assets of business -type activities
$ 9,276,144
See accompanying notes to the financial statements.
City of Bremerton / 29
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2010
Page 1 of 2
Cash Flows From Operating Activities
Cash received from customers
Interest on investments
Cash payments to suppliers
Cash payments to employees
Purchase of insurance
Payment for insurance claims
Other operating receipts and payments
Net cash provided by operating activities
Cash Flows From Noncapital Financing Activities
Transfers in
Transfers out
Other nonoperating revenues /expenses
Net cash provided (used) by noncapital
financing activities
Cash Flows From Capital and Related Financing
Activities
Acquisition and construction of capital assets
Proceeds /costs on sale of assets
Capital contributions
Transfer in for asset construction
Transfer out for asset construction
Collections on notes receivable
Loan/grant proceeds
Principal paid on bonds
Principal paid on other debt
Interest paid on bonds and other debt
Net cash provided (used) for capital and related
financing activities
Cash Flows From Investing Activities
Proceeds from repayment of loans
Proceeds from special assessments
Interest on loans and investments
Net cash provided (used) in investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning of year
Cash and cash equivalents - end of year
Cash at the end of the year consists of:
Operating fund cash
Restricted cash
Total cash at end ofyear
Business -type Activities Governmental
Enterprise Funds Activities
Golf Internal
Water Course Wastewater Stormwater Total Service Funds
$ 8,188,249 $ 2,110,382 $ 13,176,714 $ 2,142,497 $ 25,617,842 $ 4,671,837
- - - - - 17,982
(2,395,117)
(1,889,249)
(2,730,085)
(421,694)
(7,436,145)
(1,819,908)
(3,709,969)
(1,268)
(3,076,270)
(992,953)
(7,780,460)
(1,130,261)
(145,317)
(24,585)
(206,057)
(36,337)
(412,296)
(459,149)
-
-
-
26,379
-
(991,465)
70,811
74,861
(372,385)
(11,219)
(237,932)
384,141
2,008,657
270,141
6,791,917
680,294
9,751,009
673,177
600,923
(1,266,341) - (2,011,247) (324,251) (3,601,839) (511,917)
289,183 49 2,169 139 291,540 23,606
(977,158) 49 (2,009,078) (324,112) (3,310,299) 112,612
(3,757,178)
5,169
(7,478,538)
(43,074)
(11,273,621) (396,951)
9,046
460
3,452
-
12,958 55,538
482,601
-
419,344
76,486
978,431 -
-
162,721
100,000
-
100,000
-
26,379
-
(100,000)
(100,000)
53,556
3,960,952
-
4,219,342
53,556
2,454,633
385,754
9,007,421
1,964,942
11,462,054
(42,000)
(105,000)
(288,000)
7,264,471 $
(435,000)
(566,284)
$ 8,074,498
(2,188,896)
(9,864)
(2,765,044)
(142,309)
(161,189)
(467,668)
(5,919)
(777,085)
(1,507,935)
(260,560)
(892,885)
(82,371)
(2,743,751) (341,413)
359,662
359,662
506,583
-
-
-
-
-
830
56,696
8,648
70,998
26,379
162,721
87,348
416,358
8,648
70,998
26,379
522,383
594,761
(60,078)
18,278
3,960,952
300,190
4,219,342
1,039,137
3,577,037
385,754
3,303,519
1,964,942
9,231,252
7,035,361
$ 3,516,959 $
404,032 $
7,264,471 $
2,265,132 $
13,450,594
$ 8,074,498
3,449,521 404,032 5,995,768 2,265,132 12,114,453 7,974,498
67,438 - 1,268,703 - 1,336,141 100,000
$ 3,516,959 $ 404,032 $ 7,264,471 $ 2,265,132 $ 13,450,594 $ 8,074,498
See accompanying notes to the financial statements.
30 /Financial Section
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2010
Page 2 of 2
Business -type Activities Governmental
Enterprise Funds Activities
Golf Internal
Water Course Wastewater Stormwater Total Sei vice Funds
Reconciliation of operating income to net cash provided by operating activities:
Operating income (loss)
$ 397,799 $
121,946 $
4,414,757 $
536,882 $
5,471,384
$ 477,553
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation
1,690,372
170,534
2,625,239
92,847
4,578,992
745,432
Abandonment of capital project
-
-
-
39,514
39,514
-
Decrease (increase) in receivables
(6,425)
1,100
144,278
24,032
162,985
2,268
Decrease (increase) in due from other funds/govt
(20,730)
-
6,455
(24,183)
(38,458)
(152,138)
Decrease (increase) in prepaid expenses
(11,391)
(11,391)
(478,410)
Decrease (increase) in inventory
(97,340)
-
(97,340)
848
Increase (decrease) in accounts payable
68,171
(21,312)
(348,663)
27,919
(273,885)
86,984
Increase (decrease) in due to otherfunds/govt
4,491
(159)
(7,705)
702
(2,671)
510
Increase (decrease) in employee wages payable
(16,334)
(1,268)
(32,386)
-
(49,988)
(3,925)
Increase (decrease) in employee vacations payable
(19,943)
-
-
(17,419)
(37,362)
(5,945)
Increase (decrease) in other payables
4,328
(700)
1,333
4,961
Increase (decrease) in deferred revenues
4,268
-
-
-
4,268
-
Net cash provided by operating activities
$ 2,008,657 $
270,141 $
6,791,917 $
680,294 $
9,751,009
$ 673,177
Noncash investing, capital and financial activities;
Developers contributed infrastructure $ 126,778 $ $ 80,729 $ 47,404 $ 254,911 $
See accompanying notes to the financial statements.
City of Bremerton / 31
Statement of Fiduciary Net Assets
Fiduciary Funds
As of December 31, 2010
Agency
Funds
Assets
Cash and cash equivalents
Interest receivable
Interfund receivables
Total assets
374,623
$ 374,623
Liabilities
Accounts /contracts payable
Due to other funds
Other current liabilities
Total liabilities
58,143
1,974
314,506
$ 374,623
See accompanying notes to the financial statements.
32 /Financial Section
THIS PAGE LEFT BLANK INTENTIONALLY.
City of Bremerton / 33
Notes to Financial Statements
January 1, 2010 — December 31, 2010
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 12/31/10 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 assets and the statement of activities) report
information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been
removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely on fees and charges for support.
The statement of activities displays the extent to which the direct expenses of a given function are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific function. Our policy is to not allocate
indirect costs to a specific function. Program revenues are those items that are applicable to customers who purchase,
use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions that
are restricted to meeting the operational or capital requirement of a particular function are also included. Taxes and other
items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. Fiduciary
funds, however, are excluded from the government -wide financial statements. Major individual governmental funds and
major individual enterprise funds are reported as separate columns in the fund financial statements.
C. Measurement focus, basis of accounting, and financial statement presentation
The government -wide financial statements are reported using the economic resources measurement focus and the accrual
basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the city considers revenues to be available if they are collected
within 30 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
34 /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 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.
In addition to these major funds, the stormwater fund is the only non -major proprietary fund and is also reported on
the proprietary fund statements.
Additionally, the City reports the following fund types:
Internal service funds account for the accumulation of funds used to repair City vehicles and equipment and to
replace them at the end of their useful lives. Funds are also accumulated for the purpose of carrying out the city's
Risk Management activities. In both cases City departments contribute according to the benefit provided by each
fund.
Agency funds account for assets held by a government as an agent for individuals, private organizations, other
governments, and /or other funds. All funds are used for custodial or clearing purposes.
Private- sector standards of accounting and financial reporting issued prior to December 1, 1989, are generally followed
in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict
with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of
following subsequent private - sector guidance for their business -type activities and enterprise funds, subject to this same
limitation. The City of Bremerton has elected not to follow subsequent private - sector guidance.
The City eliminates the effect of interfund activity from the government -wide financial statements. There are some
exceptions to this rule such as charges between the utility function and other functions within the City, and any
payments -in -lieu of taxes. Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned.
Amounts reported as program revenues include charges to customers, special assessments, operating grants and
contributions and capital grants and contributions. General revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non - operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connections with a proprietary
fund's principal ongoing operations. Operating revenues includes charges for services rendered for water, sewer,
stormwater as well as golf fees and timber revenues. Operating expenses include administrative, maintenance expenses
and depreciation on capital assets. All revenues and expenses not falling into the above broad categories are reported as
non - operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the city's policy to use restricted resources
first, then unrestricted resources as needed.
City of Bremerton / 35
D. Budgetary Information
1. Scone of Budget
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 basis for budgeting differs from GAAP accounting in that fund balance is
adjusted to exclude fund debt. Budgeted revenues and expenditures include the flow of funds resulting from the issue
and redemption of fund debt which are not recognized under GAAP basis accounting. There were no reconciling items
between the Budgetary basis to GAAP for the Statement of Revenues, Expenditures and Changes in Fund Balances to
Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual for the General Fund for 2010.
2. Amending the Budd
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 2010.
The financial statements contain the original and final budget information. The original budget is the first complete
appropriated budget. The final budget is the original budget adjusted by all supplemental appropriations authorized for
the fiscal year.
E. Assets, Liabilities and Equities
1. Cash and Investments
It is the City's policy to invest all temporary cash surpluses. These investments are reported on the Statement of Net
Assets as cash and investments. Included in cash and investments are currency on hand, demand deposits with banks or
other financial institutions, investments with the State Investment Pool, and investments in U.S. Treasury and Agency
Securities. At December 31, 2010 the City held $33,095,735 in investments of surplus cash.
The amounts reported as cash and investments also include compensating balances maintained with the City's bank in
lieu of payments for services rendered. The average compensating balance maintained during 2010 was $2,693,369.
For purposes of the statement of cash flows the City considers all investments, including restricted assets, to be cash
equivalents. All investments can be liquidated on demand.
2. Receivables
External receivables consist of property, B &O, utility, sales and parking taxes as well as other revenues earned by the
City from the County, State and other taxpayers but not yet received. Also included are customer accounts receivable
which consist of amounts owed from private individuals or organizations for goods and services including amounts owed
for which billings have not been prepared.
Interest receivable consists of amounts earned on investments, notes, and contracts at the end of the year.
Special assessments are recorded when levied. Special assessments receivable consist of current and delinquent
assessments and related interest and penalties. Deferred assessments on the fund financial statements consist of unbilled
special assessments that are liens against the property benefited. As of December 31, 2010, $77,733 of special
assessments receivable were delinquent.
The amounts reported as notes and contracts receivable represent housing rehabilitation loans resulting from the federal
Department of Housing and Urban Development Community Development Block Grant programs. Deferred notes and
contracts on the fund financial statement consist of outstanding loan balances that are liens against the property benefited
36 /Financial Section
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. The current portion of 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:
Governmental type:;
- Public Television
66,697
Cash and investments
- Contruction
$ 4,717,722
Cash and investments
- Parking system
326,815
Cash and investments
- HUD programs
156,969
Cash and invesments -
Public safety
965,760
Cash and invesments
- Public Television
66,697
Cash and investments
- Workers compensation
100,000
Cash and investments
- Tourism promotion
22,800
Cash and investments
- Debt Service
228,877
External receivables -
HUD programs
863,291
External receivables -
Tourism promotion
31,853
External receivables -
Parking system
352,604
External receivables -
Construction
97,433
External Receivables
- Debt Service
80,846
Due from other governments
- HUD
264,282
Prepaid Pension- Workers Compensation
449,345
Total governmental
$ 8,725,294
Cash and investments
- Debt service
$ 1,182,446
Cash and investments
- Construction
123,457
Cash and investments
- Deposits
30,238
External receivables -
Debt service
322,392
Total business
$ 1,658,533
City of Bremerton / 37
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
2010.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are
not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during
the construction phase of the capital assets of business -type activities is not included as a part of the capitalized value of
the assets constructed. There was $19,782 of interest expense incurred during 2010 for business -type capital assets
under construction.
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 and the unamortized portion of debt issuance costs.
9. Other Accrued Liabilities
These accounts consist of accrued wages and accrued employee benefits including compensated absences. Compensated
absences are absences for which employees will be paid, such as vacation and sick leave. All vacation pay is accrued
when incurred in the government -wide and proprietary fund financial statements. Accrued vacation is payable at
resignation, retirement or upon death of the employee. Maximum vacation carryover hours are set by contract for all
bargaining unit employees. The maximum hours allowed to be carried over to the next fiscal year range from 240 to 360
depending on the unit. Payment for 35% of sick leave is only paid at retirement. Outstanding sick leave at year end is
not accrued because the payment cannot be deemed probable nor can the amount be reasonably estimated.
10. Long -term Debt
The City issues debt to finance the purchase or construction of capital assets. Note 9 contains outstanding debt at
12/31/10 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 has not been met.
38 /Financial Section
12. Reservations of Fund Balance
In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not
available for appropriation or are legally restricted by outside parties for use for a specific purpose.
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 loans receivable due beyond the city's 30 day
measurable and available period $ 3,005,170
Investment interest accrued beyond the city's 30 day measurable
and available period 11,416
Build America Bond subsidy beyond the city's 30 day measurable
and available period 78,133
Deferred charge for bond issue costs 308,733
Internal Service funds are used by management to charge the costs of certain activities to individual funds:
Net assets of Internal service funds included in governmental activities $ 988,755
Net capital assets of Internal Service funds included in governmental activities (18,566
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:
Capital Assets of governmental funds net of depreciation $ 101,539,608
Capital Assets of Internal Service funds included in govermental activities
GO bonds payable $ (30,437,685)
Less: Issuance premiums (365,584)
Add: Deferred amount on refunding 1,086,563
Revenue bonds payable (5,244,815)
Accrued interest payable (291,457)
City of Bremerton / 39
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 $ 9,361,248
Depreciation (3,497,758)
Loss on retirement of capital assets (72,073)
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
Principal of GO Bonds Issued
Revenue bond principal paid
10,086,500
(19,050,000)
0
Some revenues and expenses reported in the statement of activities do not provide /do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds:
Change in accrued interest receivable
$ (6,542)
Change in deferred property taxes receivable
(65,961)
Change in court fines receivable
(32,636)
Change in block grant loans receivable
(11,987)
Change in parking/red light fines receivable
111,244
Change in Build America Bond subsidy receivable
78,133
Change in other post - employment benefits payable
76,663
Change in accrued interest payable
(246,602)
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 $ 425,780
Net revenue of information technology activities 80,942
Net revenue of eauinment maintenance activities (215.067
40 /Financial Section
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 and certificates of deposit 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
(PDPQ.
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.
Cash
FDIC or PDPC insured bank deposits $2,873,247
Cash on hand 27,720
Total Cash 2,900,967
Investments
US Agency securities
US Treasury Notes AAA 0.94 2,008,900 6%
Federal Farm Credit Banks AAA 1.67 4,046,040 12%
Federal Home Loan Bank AAA 0.94 2,013,720 6%
TLGP Debt Obligation AAA 0.92 2,049,780 6%
Washington State Local Government Inv. Pool NR 0.13
Surplus Investable Funds 10,017,487
Bond Proceeds 7,691,808
17,709,295 54%
City of Bremerton LTGO Bonds NR 11.37 5,268,000 16%
Total Investments 33,095,735
Total Cash & Investments 35,996,702
Interest Rate Risk. As a means of limiting its exposure to realized fair value losses arising from rising interest rates, the
City's investment policy requires that to the extent possible maturities be matched with anticipated cash flow
requirements. Unless matched to a specific cash flow, the City is limited by the investment policy to maturities of five
years or less.
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.
City of Bremerton / 41
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 (PDPQ.
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.
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 2009, the Kitsap Regional Library District levied $0.29 per $1,000 of assessed valuation, and
therefore the City's maximum levy rate is $3.31 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 2010 was $2.16 per $1,000 on an assessed valuation of $2.899 billion for a total regular levy of
$6,272,513.
Special levies, approved by the voters are not subject to the above limitations. In 2010, the City levied an additional $.81 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.
42 /Financial Section
6. Capital Assets
1/1/2010 Beginning Balance has been adjusted for prior year corrections and special items (Note 16).
Capital asset activity for the year ended December 31, 2010 was as follows:
Capital assets, being depreciated
Buildings/building improvements
54,568,308
1,744,444
42,994
56,269,758
Improvements other than buildings
16,519,121
440,725
78,143
16,881,703
Machinery and equipment
9,022,410
116,528
437,642
8,701,296
Infrastructure
33,277,052
1,177,631
-
34,454,683
Total capital assets, being depreciated
113,386,891
3,479,328
558,779
116,307,440
Less accumulated depreciation for
Buildings/buildings improvements
7,279,104
1,136,275
35,680
8,379,699
Improvements other than buildings
7,057,526
781,081
60,816
7,777,791
Machinery and equipment
4,721,276
587,105
377,309
4,931,072
Infrastructure
16,050,320
1,024,555
-
17,074,875
Total accumulated depreciation
35,108,226
3,529,016
473,805
38,163,437
Total capital assets, being depreciated, net
78,278,665
(49,688)
84,974
78,144,003
Governmental activities capital assets, net
$ 95,810,915 $
7,686,965 $
1,939,706 $
101,558,174
Capital assets, not being depreciated:
Land
$ 8,138,463 $
496,946
70,508 $
8,564,901
Construction in progress
16,343,063
11,208,065
16,754,375
10,796,753
Total capital assets, not being depreciated
24,481,526
11,705,011
16,824,883
19,361,654
Capital assets, being depreciated:
Buildings/buildingimprovements
48,163,129
2,840,166
111,910
50,891,385
Improvements other than buildings
117,170,640
6,173,189
426,756
122,917,073
Machinery and equipment
46,681,795
7,644,613
1,506,524
52,819,884
Total capital assets, being depreciated
212,015,564
16,657,968
2,045,190
226,628,342
Less accumulated depreciation for:
Buildings/buildings improvements
16,694,021
914,861
111,910
17,496,972
Improvements other than buildings
34,717,959
2,283,369
438,791
36,562,537
Machinery and equipment
21,854,527
2,057,947
1,452,773
22,459,701
Total accumulated depreciation
73,266,507
5,256,177
2,003,474
76,519,210
Total capital assets, being depreciated, net
138,749,057
11,401,791
41,716
150,109,132
Business -type activities Capital assets, net
$ 163,230,583 $
23,106,802 $
16,866,599 $
169,470,786
Capital assets, not being depreciated:
Lazed $ 15,472,031 $ 494,543 - $ 15,966,574
Construction in progress 2,060,219 7,242,110 1,854,732 7,447,597
Total capital assets, not being depreciated 17,532,250 7,736,653 1,854,732 23,414,171
City of Bremerton / 43
Depreciation expense was charged to functions /programs of the primary government as follows:
General government $ 232,895
Public safety 600,658
Transportation, including depreciation of general infrastructure assets 1,042,270
Economic environment 348
Culture and recreation 1,609,700
Capital assets held by the government's internal service funds
are charged to the various functions based on their usage of the assets 21,608
Total depreciation expense - Governmental activities $ 3,507,479
Water $ 1,643,734
Wastewater 2,625,238
Stormwater 92,847
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 723,824
Total depreciation expense - Business -type activities $ 5,256,177
Construction Commitments:
At December 31, 2010 the City had several construction projects underway. The following table contains the projects
and status at year end.
Project
WA Ave Sewer Main
Gorst Septic System
Ultraviolet Treament Facility
Lions Park
Chevron Property Remediation
Park Avenue Plaza.
SDent to Date
34,710
3,760,601
3,959,542
1,267,402
54,383
2.557.505
Remaining
Commitment
87,023
247,588
1,926,666
11,517
45,617
3.692.495
7. Pension Plans
$ 11,634,143
141 011010104 1
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 and defined contribution 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 Statement 27, Accounting for Pensions by State and Local Government Employer and No. 50 Pension
Disclosure, and Amendment of GASB Statements No. 25 and No. 27.
44 /Financial Section
Public Employees' Retirement System (PERS) Plans 1, 2 and 3
Plan Description
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.
Membership in the system includes: elected officials; state employees; employees of the Supreme, Appeals, and Superior courts
(other than judges currently in a judicial retirement system); employees of legislative committees; community and technical
colleges, college and university employees not in national higher education retirement programs; judges of district and
municipal courts; and employees of local governments.
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 exercise 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 retirement benefit provisions are established in Chapters 41.34 and 41.40 RCW
and may be amended only by the State Legislature.
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) is granted at age 66 based upon years of service times the COLA amount, which is increased 3 percent annually. Plan
1 members may also elect to receive an option al 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 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 th e 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 is granted a t age 66 based
upon years of service times the COLA amount (based on the Consumer Price Index), 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 while actively serving in the military, if such credit makes them
eligible to retire. 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:
City of Bremerton / 45
• 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 return -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. Effective July 22, 2007,
said refund (adjusted as needed for specified legal reductions) is increased from 100 percent to 200 percent of the accumulated
contributions if the member's death occurs in the uniformed service to the United States while participating in the Operation
Enduring Freedom or Persian Gulf, Operation Iraqi Freedom.
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 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.
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 the member's age is less than 65, an 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 oar 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 he 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 received
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.
46 /Financial Section
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
Beginning 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 average compensation.
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 aparticipant 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 j udicial service.
Statewide there are 1,189 participating employers in PERS. Membership in PERS consisted of the following as of the latest
actuarial valuation date for the plans of June 30, 2009:
Retirees and beneficiaries receiving benefits
74,857
Terminated plan members entitled to but not yet receiving benefits
28,074
Active plan members vested
105,339
Active plan members non - vested
53,896
Total
262,166`
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates, Plan 2 employer and employee
contribution rates, and Plan 3 employer contribution rates. Employee contribution rates for Plan 1 are established by statute at 6
percent for state agencies and local government unit employees, and at a 7.5 percent for state 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 Director of the Department of Retirement
Systems set Plan 3 employee contribution rates. Six rate options are available ranging from 5 to 15 percent; two of the options
are graduated rates dependent on the employee's age. 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, 2010, 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 7.89% for Plan 1 and 5.31% for Plan 2 and 3.
** * Plan 3 defined benefit portion only.
PERS Plan I
PERS Plan 2
PERS Plan 3
Employer *
5.31 % **
5.31 % **
5.31 % * **
Employee
6.00 % * * **
3.90 % * * **
* * * **
* The employer rates include the employer administrative expense fee currently set at 0.16 %.
** The employer rate for state elected officials is 7.89% for Plan 1 and 5.31% for Plan 2 and 3.
** * Plan 3 defined benefit portion only.
City of Bremerton / 47
** The employee rate for state elected officials is 7.50% for Plan 1 and 3.90% 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*
7.81%
7.81%
7.81%**
Employer -Local Agency*
5.31%
5.31%
5.31%**
Employee -State Agency
9.76%
7.25%
7.50 % **
Employee -Local Agency
12.26%
9.75%
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
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. Membership in the system includes all full -time, fully compensated, local law enforcement officers,
firefighters and, as of July 24, 2005, those emergency medical technicians who were given the option and chose LEOFF Plan 2
membership. 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.
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 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. LEOFF retirement
benefit provisions are established in Chapter 41.26 RCW and may be amended only by the State Legislature.
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
PERS Plan I
PERS Plan 2
PERS Plan 3
2010
$ 63,887
$ 596,771
$ 80,024
2009
$ 99,725
$ 778,836
$ 106,514
2008
$ 147,125
$ 829,085
$ 104,356
Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plans 1 and 2
Plan Description
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. Membership in the system includes all full -time, fully compensated, local law enforcement officers,
firefighters and, as of July 24, 2005, those emergency medical technicians who were given the option and chose LEOFF Plan 2
membership. 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.
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 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. LEOFF retirement
benefit provisions are established in Chapter 41.26 RCW and may be amended only by the State Legislature.
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
48 /Financial Section
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.
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 purchase 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 purchase service credit on behalf of the deceased member.
LEOFF Plan 2 members may also purchase u p 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.
City of Bremerton / 49
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 372 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial
valuation date for the plans of June 30, 2009:
Retirees and beneficiaries receiving benefits
9,454
Terminated plan members entitled to but not yet receiving benefits
674
Active plan members vested
13,363
Active plan members non - vested
3,944
Total
27,435
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. All
employers are required to contribute at the level required by state law. The Legislature, by means of a special funding
arrangement, appropriated money from the state General Fund to supplement the current service liability and fund the prior
service costs of 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 fund 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, 2010, are as
follows:
*The employer rates include the employer administrative expense fee currently set at 0.16 %.
"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:
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 %.
"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
PSERS is a cost - sharing multiple - employer retirement system comprised of a single defined benefit plan, PSERS Plan
2. PSERS was created by the 2004 legislature and 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.
LEOFF Plan 1
LEOFF Plan 2
2010
$ 736
$ 547,704
2009
$ 738
$ 556,767
2008
$ 1,077
$ 532,691
Public Safety Employees' Retirement System (PSERS) Plan 2
Plan Description
PSERS is a cost - sharing multiple - employer retirement system comprised of a single defined benefit plan, PSERS Plan
2. PSERS was created by the 2004 legislature and 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.
50 /Financial Section
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; Washington state counties; and Washington state
cities except for Seattle, Tacoma and Spokane.
To be eligible for PSERS, an employee must work on a full -time basis and have one of the following:
• Completed a certified criminal justice training course with authority to arrest, conduct criminal investigation,
enforce the criminal laws of Washington and carry a firearm as part of the job.
• Primary responsibility to ensure the custody and security of incarcerated or probationary individuals.
• Limited authority to 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 defined benefit retirement payments are financed from a combination of investment earnings and employer and
employee contribution. PSERS retirement benefit provisions are established in Chapter 41.37 RCW and may be
amended only by the State Legislature.
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
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 purchase service credit for military service that interrupts employment. Additionally,
PSERS members who become totally incapacitated for continued employment while serving in this active duty, thee
member's surviving spouse or eligible child(ren) may purchase 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
result of injuries or illness sustained in the course of employment, if found eligible by the Department of Labor and Industries.
There are 73 participating employers in PSERS. Membership in PSERS consisted of the following as of the latest
actuarial valuation date for the plan of June 30, 2009:
Retirees and beneficiaries receiving benefits
2
Terminated plan members entitled to but not yet receiving benefits
0
Active plan members vested
0
Active plan members non - vested
4,340
Total
4,342
City of Bremerton / 51
Funding Policy
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, 2010, are
as follows:
PSERS Plan 2
Employer* 7.85%
Employee 6.55%
*The employer rate includes an employer administrative expense fee of 0.16 %.
Both the City and the employees made the required contribution. The City's required contributions for the year ended
December 31, 2010 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.
Following is a summary of the City's 2010 insurance coverage and risk retention:
Coverage Limit Self - Insured
Risk
PSERS Plan 2
2010
$ 9,111
2009
$ 9,627
2008
$ 9,868
8. Risk Management
The City's Risk Management Fund is used to finance its various exposures to loss. These exposures include theft, damage or
destruction of assets, errors and omissions, property damage and injury of others. Smaller losses are self - insured while
commercially available excess insurance is purchased for many larger losses. The City's General and Utility funds participate
in financing the Risk Management Fund.
Following is a summary of the City's 2010 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
56,000,000
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 -term liability of the fund for both reported and
unreported losses. As of December 31, 2010, the Risk Management Fund had cash reserves of $1,537,588. 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 restricted
assets. Long -term fund liabilities have been estimated at $1,069,164. 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 $554,000.
52 /Financial Section
The following table shows the actual claims activity for 2009 and 2010:
Claims liability - beginning of year $ 1,618,821 $ 1,634,164
Claims incurred 306,531 588,997
Estimate change prior years (24,206) (72,882)
Payment on claims (266,982) (480,876)
Claims liability - end of year $ 1,634,164 $ 1,669,403
9. Long -term Debt
A. Long Term Debt
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:
2002 Public Safety UTGO
12/01/27
2.5/5.25 $
835,000
2003 Weekly Rate Demand Conference Ctr (Councilmanic)
12/01/28
VARIABLE
4,430,185
Government Center Real Estate Contract
06/01/34
1.6/5
5,602,500
2005 Sports & Public Works Complex Ref LTGO
12/01/12
3.69
520,000
2009 LTGO Refunding
12/31/28
3.0/4.5
5,268,000
2010 LTGO BABS
09/01/35
3.61
6,910,000
2010 UTGO Refunding
12/01/27
3.07
9,920,000
2010 LTGO (B) BABS
12/01/30
3.42
2,220,000
Total General Obligation Bonds and Notes
$
35,705,685
The annual debt service requirements to maturity for general obligation bonds are as follows:
2011 $
1,012,500 $
1,720,434
2012
1,291,923
1,559,607
2013
1,163,371
1,061,393
2014
1,199,397
1,037,063
2015
1,226,476
1,010,492
2016 -2020
6,718,540
4,492,116
2021 -2025
7,947,542
3,246,578
2026 -2030
6,710,436
1,659,660
2031 -2035
3,167,500
504,982
Total $
30,437,685 $
16,292,325
$ 105,000 $
158,040
105,000
180,705
105,000
177,030
200,000
198,120
220,000
190,120
1,425,000
899,640
1,812,000
543,420
1,296,000
118,350
$ 5,268,000 $ 2,465,425
City of Bremerton / 53
Revenue bonds and loans currently outstanding are as follows:
Outstanding
12/31/2010
638,424
926,169
908,672
246,764
1,326,316
89,167
439,133
1,493,258
2,234,296
1,741,667
375,036
171,053
138,099
979,683
160,088
148,958
603,947
2,770,326
242,258
1,379,159
440,134
2,811,809
1,535,405
732,242
471,310
57,211
748,946
75,345
396,176
163,450
551,340
378,007
399,817
766,034
765,540
460,139
212,836
232,970
929,266
926,517
599,189
Maturity
Interest
Date
Rate
1994 PWTF Loan - Warren Ave CSO
07/01/14
1.0
1995 PWTF Loan WWTP improvements
07/01/15
1.0
1996 PWTF Loan Callow Ave CSO I
07/01/16
1.0
1997 PWTF Loan Callow Ave CSO II
07/01/17
1.0
1998 PWTF Loan SR 303 water main
07/01/18
1.0
1999 PWTF Loan Tracyton water sys ph2
07/01/19
2.0
1999 PWTF Loan CSO design
07/01/20
1.0
2000 PWTF Loan Multi -Basin CSO
07/01/20
1.0
2000 PWTF Loan Callow CSO 3 -5
07/01/20
1.0
2001 PWTF Loan East Bremerton CSO
07/01/21
0.5
2003 PWTF Loan Anderson Cove Basin 12
07/01/23
0.5
2003 PWTF Loan Naval Avenue
07/01/23
4.0
2004 PWTF Loan Brentwood storm drain red
07/01/24
4.0
2004 PWTF Loan Pacific Ave Basin CSO
07/01/24
0.5
2006 PWTF Loan WWTP upgrade
07/01/10
0.5
2006 PWTF Loan SW Bremerton sewer
07/01/11
0.5
2007 PWTF Anderson Cove sewer PS CWl
07/01/27
0.5
2007 PWTF WWTP upgrades
07/01/27
0.5
1994 CCWF Loan Callow Ave CSO design
05/01/17
0.0
1997 CCWF Loan Callow Ave CSO I
07/31/18
4.8
1998 DWSRF Loan corrosion control facility
10/01/18
4.0
2009 DWSRF UV Treatment Upgrade (ARRA)
10/1/17
0.0
2001 DWSRF Loan Tracyton WD upgrade
10/01/21
2.5
2002 DWSRF Loan Eastside flow & pressure
10/1/22
2.5
2002 DWSRF Loan Casad Dam seismic upgrade
10/1/22
2.5
2003 DWSRF Loan Casad Dam intake tower
10/01/23
1.5
2003 DWSRF Loan Pump Station 4 upgrade
10/01/23
1.5
2004 DWSRF Loan Anderson Creek
10/01/24
1.5
2004 DWSRF Loan seismic upgrades
10/01/24
1.5
1999 WPCRF Loan CSO plan update
12/31/22
1.5
1999 WPCRF Loan Anderson Cove CSO
02/27/21
1.5
1999 WPCRF Loan Callow Ave CSO final
12/31/22
1.5
2002 WPCRF Loan Anderson CV CSO red
1/23/22
1.5
2002 WPCRF Loan Cherry /Trenton CSO red
10/15/24
1.5
2002 WPCRF Loan Trenton pump station
10/15/24
1.5
2002 WPCRF Loan Tracyton Beach CSO
12/31/25
1.5
2002 WPCRF Loan Anderson Cove Basin 12
12/31/26
1.5
2003 WPCRF Pacific Ave CSO red -sep
6/30/24
1.5
2003 WPCRF Loan Pacific Ave CSO reduction
12/31/27
1.5
2004 WPCRF Loan Charry /Trenton CSO red -1
12/31/26
1.5
2007 WPCRF WWTO upgrade
1/1/29
2.6
Outstanding
12/31/2010
638,424
926,169
908,672
246,764
1,326,316
89,167
439,133
1,493,258
2,234,296
1,741,667
375,036
171,053
138,099
979,683
160,088
148,958
603,947
2,770,326
242,258
1,379,159
440,134
2,811,809
1,535,405
732,242
471,310
57,211
748,946
75,345
396,176
163,450
551,340
378,007
399,817
766,034
765,540
460,139
212,836
232,970
929,266
926,517
599,189
54 /Financial Section
2009 WPCRF Gorst Sewerage Constuction
12/31/30
1.4
583,464
2009 WPCRF Gorst Septic System Design
12/31/30
2.9
110,000
2009 WPCRF Gorst Sewerage Design
12/31/30
1.4
568,350
2007 W/S Refunding Revenue bond
12/01/21
4.3
4,260,000
2003 Weekly Rate Demand Conference Ctr
12/1/28
Variable
5,244,815
Total revenue bonds and loans $ 41,432,785
Revenue bond and loan debt service requirements to maturity are as follows:
2011 $
- $
28,322 $
3,085,805 $
608,227
2012
200,577
27,239
3,007,615
552,853
2013
214,129
26,083
3,599,590
498,988
2014
233,103
24,824
3,624,679
429,904
2015
238,524
23,536
3,495,659
388,097
2016 -2020
1,306,460
96,910
13,385,738
1,148,840
2021 -2025
1,512,458
58,386
4,798,118
246,320
2026 -2030
1,539,564
11,212
1,190,767
49,927
Total $
5,244,815 $
296,512 $
36,187,971 $
3,923,156
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 are 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 expires
on August 10, 2011. The City agreed to repay the Bank for draws on the letter of credit that are not paid from
remarketing the bonds as a general obligation of the City, with a cap on such reimbursement obligation of $4,975,139.
The City is currently reviewing its options regarding these bonds, which may include extending the Bank's letter of
credit, obtaining a new letter of credit, or issuing fixed rate bonds to refund the bonds. If fixed rate bonds are issued,
they could be a combination of revenue bonds and limited tax general obligation bonds or solely limited tax general
obligation bonds.
The interest rate on the 2003 Weekly Rate Demand bonds is determined weekly by the Remarketing Agent. The rate
determined is the minimum rate which in its judgment, on the basis of prevailing financial market conditions, would
permit the sale of the 2003 bonds at par on the determination date, such rate to be the weekly rate for the next rate period.
If the remarketing agent fails to make such determination on any determination date, the weekly rate for the next
succeeding rate period shall be the rate in effect for the immediately preceding rate period. The effective rate at
December 31, 2010 was .54 %.
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. Terms
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 12/31/10 was $2,811,809. The project is
scheduled for completion in 2011.
On May 28, 2010, the city issued $6,910,000 in LTGO Taxable Build America Bonds to pay a portion of the costs of (a)
constructing two subsurface and two above -grade parking areas for approximately 250 parking stalls to provide multi-
use parking for Puget Sound Naval Shipyard daytime workers, downtown Harborside retail, businesses and visitors to
Memorial Plaza and Harborside Fountain Park (the "Revitalization Area Project"), (b) renovating Lions Park and (c)
purchasing and renovating a building to be used as a municipal courthouse. The bonds bear interest rates from 3.203 to
6.129 percent and will be redeemed over the next twenty five years. The City expects to pay a portion of the costs of the
Revitalization Area Project from money received under the State's Local Revitalization Financing (LRF) program.
Under RCW 82.14.505 and.510, a sales and use tax maybe imposed by qualifying jurisdictions for certain projects. The
City began collecting an LRF tax on July 1, 2010 to pay for improvements in the City's designated revitalization area.
City of Bremerton / 55
The City expects to receive an amount of not more than $330,000 annually from the LRF tax to pay debt service on the
portion of the Bonds issued for the Revitalization Area Project. The City has pledged the revenue from this LRF tax to
the repayment of the portion of the Bonds funding the Revitalization Area Project.
On November 2, 2010 the City issued an additional $2,220,000 in LTGO Taxable Build America Bonds for the above
project. Proceeds are to be used as match for a $2.6M federal award from the US Economic Development
Administration for additional improvements at the Park Plaza facility.
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, 2010, the city has $433,778 available in debt service funds to service the general bonded debt.
Restricted assets in proprietary funds contain $1,268,703 in sinking funds and reserves as required by bond indentures.
B. Refunded Debt
The city issued $9,920,000 of general obligation refunding bonds during 2010 to provide resources to purchase U.S.
Government and State and Local Government Series securities that were placed in an irrevocable trust for the purpose of
generating resources for all future debt service payments on $9,315,000 of refunded debt. As a result, the refunded
bonds are considered to be defeased and the liability has been removed from the governmental activities column of the
statement of net assets. This advance refunding was undertaken to reduce future debt service obligations through a
reduction of interest costs. The refunding did not extend the repayment period, reduced annual debt service over the life
of the refunded bonds by approximately $46,000 and resulted in an economic gain of $633,838.
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, 2010, $11,500,000 of
bonds outstanding are consider defeased.
C. Changes in Long Term Liabilities
During the year ended December 31, 2010, the following changes occurred in long -term liabilities:
Governmental Activities:
Bonds payable:
General obligation bonds
Revenue bonds
Add unamortized premiums
Less deferred refunding expense
Total bonds payable:
Claims and judgments
Compensated absences
Governmental activity
long -term liabilities:
$ 21,474,185
$ 19,050,000
$ 10,086,500
$ 30,437,685
$ 1,012,500
5,244,815
-
-
5,244,815
-
112,124
357,267
103,807
365,584
(30,301)
(1,076,331)
(20,069)
(1,086,563)
26,800,823
18,330,936
10,170,238
34,961,521
1,012,500
1,634,164
588,997
553,758
1,669,403
481,880
1,564,592
-
65,323
1,499,269
1,349,342
$ 29,999,579
$ 18,919,933
$ 10,789,319
$ 38,130,193
$ 2,843,722
56 /Financial Section
Business -type Activities:
Bonds payable:
General obligation bonds
Revenue bonds
Less deferred refunding expense
Total bonds payable:
$ 5,373,000
4,590,000
(280,55
9,682,441
$ 105,000 $ 5,268,000
330,000 4,260,000
(25,506) (255,05
409,494 9,272,947
105,000
335,000
Intergovernmental loans
Note payable
Compensated Absences
Business -type activity
long -term liabilities:
28,543,337
111,233
545,402
440,000
6,149,674 2,765,041 31,927,970 2,750,802
- 111,233 -
128,924 416,478 374,830
$ 38,882,413 $ 6,149,674 $ 3,303,459 $ 41,728,628 $ 3,565,632
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 $1,669,403 of Risk Management claims and judgments and $53,294 of
compensated absences are included in the above amounts.
10. Contingencies, Litigation and Claims
In March 1993, the City entered into an Order on Consent with the Department of Ecology for reduction of combined sewer
overflows (CSOs) including separation of combined sanitary and storm sewers. 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.
City of Bremerton / 57
11. Restricted Net Assets
The government -wide statement of net assets reports $5,056,142 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, 2010 were as follows:
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 2011. 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.
B. Interfund Transfers
Interfund transfers at December 31, 2010 were as follows:
General
Fund
Other
Govt
Water
Waste -
Water
Golf Stormwater
Internal
Service
Fiduciary
Total
General Fund
$ -
$ 92,007
$ 109,814
$ 211,708
$ - $ 40,122
$
$ 1,974 $
455,625
Other governmental funds
-
24,664
-
5,459
5,169 -
ea
-
35,292
Water
230,188
4,468
-
-
-
'Internal Service
-
234,656
Wastewater
80,375
-
6,386
Total
$ 700,000
$ 1,320,214 $ 1,267,675
86,761
Stormwater
14,169
-
-
-
14,169
Internal Service
6,387
145,330
1,895
1,398
- 703
15,258
-
170,971
Total
$ 331,119
$ 266,469
$ 118,095
$ 218,565
$ 5,169 $ 40,825
$ 15,258
$ 1,974 $
997,474
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 2011. 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.
B. Interfund Transfers
Interfund transfers at December 31, 2010 were as follows:
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 2010. The Contingency Reserve fund transferred $250,000 of proceeds
received from the sale of City property to the General fund to support ongoing operations.
Total $ 197,858 $ 94,603 $ 292,461
General
Fetid
Other
Govt Water
Waste -
Water
Stormwater
Internal
Service
Total
E
General Fetid
$ -
$ 613,200 $ 1,267,675
$ 2,015,319
$ 327,771
$ - $
4,223,965
w
Other governmental funds
700,000
707,014 -
-
-
-
1,407,014 '.
ea
Wastewater
-
- -
-
100,000
-
100,000 '
E+
'Internal Service
-
- -
-
-
437,029
437,029
Total
$ 700,000
$ 1,320,214 $ 1,267,675
$ 2,015,319
$ 427,771
$ 437,029 $
6,168,008
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 2010. The Contingency Reserve fund transferred $250,000 of proceeds
received from the sale of City property to the General fund to support ongoing operations.
Total $ 197,858 $ 94,603 $ 292,461
58 /Financial Section
The Harborside Plaza fund transferred $277,014 to the Arterial Street fund to contribute to funding of street
improvements in the Harborside District.
The Equipment Rental Operations funds transferred $437,029 to the Equipment Rental Reserve fund to reimburse for
losses incurred by the maintenance operation for 2004 through 2008, prior to the creation of a separate internal service
fund for that function.
The rate at which the payment in lieu of tax (PILOT) on city owned utilities is levied was increased by 6% in 2010 to
15.5% resulting in an increase of $188,388 for the year.
13. Receivable and Payable Balances
A. Receivables
External Receivables at December 31, 2010 were as follows:
Governmental Activities:
General Enid
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
Stormwater
Reconciliation of balances in fund financial
statements to government -wide financial
statements
Total business -type activities
$ 1,278,922 $ 2,514,666 $
398,135 393,353
$ 1,677,057 $ 2,908,019 $
$ 41,482 $ - $ 3,835,070
58,650 414 850,552
854,826 5,325 860,151
$ 954,958 $ 5,739 $ 5,545,773
$ 1,455,233 - - 51,249 $ 237 $ 1,506,719
- - - 2,850 500 3,350
2,475,412 3,790 - 76 - 2,479,278
430,805 - - 6 - 430,811
1,051 1,051
$ 4,361,450 $ 3,790 $ 1,051 $ 54,181 $ 737 $ 4,421,209
B. Payables
Accounts /contracts Payable at December 31, 2010 were as follows:
Governmental Activities:
General Fund
Non -major and other funds
Fiduciary funds
Reconciliation ofbalances in fund
financial statements to government -
wide financial statements
Total governmental activities
$ 470,281 $ - $ 470,281
1,357,216 55,729 1,412,945
58,143 - 58,143
67,436 67,436
$ 1,953,076 $ 55,729 $ 2,008,805
City of Bremerton / 59
Business -Type Activities:
Water $ 724,068 $ $ 724,068
Golf 28,361 28,361
Wastewater 345,406 345,406
Stormwater 46,433 46,433
Reconciliation ofbalances in fund
financial statements to government -
wide financial statements - -
Total business -type activities $ 1,144,268 $ $ 1,144,268
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. For the purposes of implementing
the requirements of this statement, the year ending 12/31/08 was the transition year.
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 ($357,107) 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
60 /Financial Section
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
(1,442,848)
$ (76,663)
$ (280,444)
$ (357,107)
The City's OPEB cost, the percentage OPEB cost contributed to the plan and the net OPEB Assets for 2010 and the
proceeding two years, was as follows:
12/31/2008 $ 1,142,500 117.50% $ (200,155)
12/31/2009 $ 1,366,185 105.88% $ (280,444)
12/31/2010 $ 1,366,185 105.61% $ (357,107)
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-term volatility in
actuarial accrued liabilities, consistent with the long -term 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 -term 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, 2010 was 17.75 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
City of Bremerton / 61
through user fees. With the exception of the combined utility, there are no revenue bonds issued or other revenue -
backed debt outstanding for which full, detailed segment data is not provided in the proprietary fund financial
statements.
The key financial data for the year ended December 31, 2010 for the combined utility operations are as follows:
Assets
Current assets
$ 18,488,565
Restricted assets
1,658,533
Capital assets
157,512,874
Other assets
1,263,727
Total assets
178,923,699
Liabilities
Current liabilities
5,516,768
Payable from restricted assets
30,238
Long -term liabilities
33,255,044
Total liabilities
38,802,050
Net Assets
Restrict for debt service 1,305,903
Unrestricted 17,602,070
Invested in capital assets net of related debt 121,213,676
Total net assets $ 140,121,649
Total operating revenues $ 23,857,963
Operating Expenditures:
Operations & maintenance 14,100,067
Depreciation /amortization/depletion 4,408,458
Total operating expenses 18,508,525
Operating income(loss) 5,349,438
Non - Operating Revenues /Expenses
Interest revenue /expense (net) (401,048)
Other (net) 304,339
Total non - operating revenues /expenses (96,709)
Capital contributions 7,416,202
Transfers (3,610,765)
Change in net assets
9,058,166
Beginning net assets
131,976,130
Special Items
(912,647
Ending net assets
$ 140,121,649
62 /Financial Section
Condensed Statement of Cash Flows
Net cash provided By:
(a) Operating activities
$ 9,480,868
(b) Noncapital financing activities
(3,310,348)
(c) Capital and related financing activities
(2,483,190)
(d) Investing activities
513,735
Beginning cash and investment balance
8,845,498
Ending cash and investment balance
$ 13,046,563
16. Other Disclosures
A. Prior Year Correction
Adjustments and accounting changes related to prior periods on fund and government -wide statements were the result of
corrections that were considered to be material in value.
Fund Government
Statements Wide
General Fund $ 103,197 $
Parking Fund 20,231
Total Governmental Funds 123,428
Golf Course 183,678
Total Proprietary Funds $ 183,678
336,928 Accounting change to recognize Court and Photo
Enforcement fines collectable.
329,430 Accounting change to recognize Parking fines
collectable.
(1,376,423) Expenditures from prior years determined not to be capital
in nature.
183,678 Overstatement of depreciation on capital assets.
Government -wide adjustments $ (526,387)
B. Special Items
A failure to secure necessary permits for the Bremerton Boardwalk project led to the abandonment of the project in 2010.
The inability to secure permits stemmed from opposition by other governmental entities involved in the permitting
process. The fund balance of Governmental activities decreased $1.4 million and business activities and proprietary
funds decreased $.91 million as a result of this action.
City of Bremerton / 63
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%
64 /Financial Section
THIS PAGE LEFT BLANK INTENTIONALLY.
COMBINING FUND
STATEMENTS
Combining Balance Sheet
NonMajor Govermental Funds
December 31, 2010
Liabilities and Fund Balances
Liabilities:
Accounts /contracts payable $
60,806 $
47,426 $
$ 13,535 $ 9,767 $
93,606 $
Special
Matured long term obligations
-
-
- -
-
- -
Due to other funds
23,101
105,891
Revenue
8
19
Due to other governments
-
9
Arterial
-
Contingency
Lodging
Parking
Community
Abatement
Police Special
6,667
Other current liabilities
Street
Street
Reserve
Tax
System
Block Grant
Revolving
Projects
BKAT
Assets
-
Total liabilities
147,540
189,523
13,535 314,453
954,562
2,890 12,200
Cash & investments
$ 939,554
$ 154,371
$ 1,013,245
$ 14,794
$ 336,599
$ 256,705
$ 232,371
$ 937,148
$ 94,680
Receivables (Note 13)
-
133,154
-
31,853
352,604
8,465
-
-
66,895
Due from other funds
20,954
-
-
-
-
-
Due from other governments
246,761
-
264,282
Inventories
-
16,444
-
Special Asessments- Deferred
Notes /contracts - deferred
-
-
-
-
-
854,826
-
-
-
Other Assets
Total assets
$ 1,207,269
$ 303,969
$ 1,013,245
$ 46,647
$ 689,203
$ 1,384,278
$ 232,371
$ 937,148
$ 161,575
Liabilities and Fund Balances
Liabilities:
Accounts /contracts payable $
60,806 $
47,426 $
$ 13,535 $ 9,767 $
93,606 $
$ 2,890 $ 5,172
Matured long term obligations
-
-
- -
-
- -
Due to other funds
23,101
105,891
-
8
19
Due to other governments
-
9
17
-
342
Employee wages payable
2,986
36,197
6,122
6,667
Other current liabilities
60,647
-
-
-
82,678
Deferred revenues
-
-
- 304,669
854,826
-
Total liabilities
147,540
189,523
13,535 314,453
954,562
2,890 12,200
Fund balances:
Reserved for:
Inventories
16,444
Paths and trails
62,605
-
-
Equipment replacement
-
202,660
66,697
Unreserved, reported in:
General fund
Debt service funds
- - - - - - -
-
-
Special revenue funds
1,059,729 35,397 1,013,245 33,112 374,750 429,716 232,371
731,598
82,678
Capital projects funds
- - - - - -
Total fund balances
1,059,729 114,446 1,013,245 33,112 374,750 429,716 232,371
934,258
149,375
Total liabilities and fund balan( $
1,207,269 $ 303,969 $ 1,013,245 $ 46,647 $ 689,203 $ 1,384,278 $ 232,371 $
937,148 $
161,575
Page 1 of 3
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Combining Balance Sheet
NonMajor Govermental Funds
December 31, 2010
Special Debt
Revenue Service
Assets
Cash & investments
Receivables (Note 13)
Due from other funds
Due from other governments
Inventories
Special Asessments- Deferred
Notes /contracts - deferred
Other Assets
Total assets
One Conference Special Debt
Gift & Trial Percent Ctr Revenue Bond 2010 2010 UTGO/ Service
Donation Improvement for Art Operations Total Fund LTGO LTGO (B) Total
$ 79,112 $ 33,488 $ 54,163 $
4,330
465,360 $ 4,611,590 $ 273,529 $ 119,717 $ 513 $ 393,759
78,888 671,859 53,903 26,943 - 80,846
- 25,284 - - -
- 511,043
21,131 37,575
- 854,826
$ 79,112 $ 33,488 $ 58,493 $ 565,379 $ 6,712,177 $ 327,432 $ 146,660 $ 513 $ 474,605
Liabilities and Fund Balance!
Liabilities:
Accounts /contracts payable $ $ 1,986 $ $ 84,761 $ 319,949 $ 302 $ $ $ 302
Matured long term obligations - - - - -
Due to other funds 47 129,066
Due to other governments 17,715 18,083
Employee wages payable 57,154 109,126
Other current liabilities 36,406 97,053 - -
Deferred revenues - - 1,159,495 40,525 40,525
Total liabilities 1,986 196,083 1,832,772 40,827 40,827
Fund balances:
Reserved for:
Inventories 21,131 37,575
Paths and trails - 62,605
Equipment replacement 21,541 290,898 - - - -
Unreserved, reported in:
General fund
Debt service funds - - - - - 286,605 146,660 513 433,778
Special revenue funds 79,112 31,502 58,493 326,624 4,488,327 - - - -
Capital projects funds - - - - - - - -
Total fund balances 79,112 31,502 58,493 369,296 4,879,405 286,605 146,660 513 433,778
Total liabilities and fundbalan( $ 79,112 $ 33,488 $ 58,493 $ 565,379 $ 6,712,177 $ 327,432 $ 146,660 $ 513 $ 474,605
Page 2 of 3
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Combining Balance Sheet
NonMajor Govermental Funds
December 31, 2010
Capital
Proiects
Fund balances:
Reserved for:
Inventories 37,575
Paths and trails 62,605
Equipment replacement 290,898
Unreserved, reported in:
General fund -
Debt service funds 433,778
Special revenue funds - - - - - - - 4,488,327
Capital projects funds 204,733 784,494 4,525,710 226,840 757,863 162,858 6,662,498 6,662,498
Total fund balances 204,733 784,494 4,525,710 226,840 757,863 162,858 6,662,498 11,975,681
Total liabilities and fund balanc $ 314,792 $ 790,647 $ 5,499,955 $ 226,840 $ 895,345 $ 168,849 $ 7,896,428 $ 15,083,210
Page 3 of 3
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Total
General
Capital
Nonmajor
Public Safety
Harborside
Park
Govt
Parks
Evergreen
Projects
Governmental
Project
Plaza
Plaza
Cap Impr
Construction
Remediation
Total
Funds
Assets
Cash & investments
$ 314,792
$ 785,394
$ 5,499,955
$ 129,407
$ 301,346
$ 105,681
$ 7,136,575
$ 12,141,924
Receivables (Note 13)
-
414
-
97,433
-
-
97,847
850,552
Due from other funds
4,839
-
5,169
-
10,008
35,292
Due from other governments
-
588,830
63,168
651,998
1,163,041
Inventories
-
-
-
37,575
Special Asessments- Deferred
-
Notes /contracts - deferred
-
-
-
-
-
-
854,826
Other Assets
-
Total assets
$ 314,792
$ 790,647
$ 5,499,955
$ 226,840
$ 895,345
$ 168,849
$ 7,896,428
$ 15,083,210
Liabilities and Fund Balance!
Liabilities:
Accounts /contracts payable
$ 76,252
$ 265
$ 967,876
$
$ 42,792
$ 5,509
$ 1,092,694
$ 1,412,945
Matured long term obligations
-
-
-
-
-
-
-
Due to other funds
31,477
5,888
5,340
94,690
8
137,403
266,469
Due to other governments
-
-
-
-
-
-
18,083
Employee wages payable
2,330
1,029
474
3,833
112,959
Other current liabilities
-
-
-
-
97,053
Deferred revenues
-
-
-
-
-
-
1,200,020
Total liabilities
110,059
6,153
974,245
137,482
5,991
1,233,930
3,107,529
Fund balances:
Reserved for:
Inventories 37,575
Paths and trails 62,605
Equipment replacement 290,898
Unreserved, reported in:
General fund -
Debt service funds 433,778
Special revenue funds - - - - - - - 4,488,327
Capital projects funds 204,733 784,494 4,525,710 226,840 757,863 162,858 6,662,498 6,662,498
Total fund balances 204,733 784,494 4,525,710 226,840 757,863 162,858 6,662,498 11,975,681
Total liabilities and fund balanc $ 314,792 $ 790,647 $ 5,499,955 $ 226,840 $ 895,345 $ 168,849 $ 7,896,428 $ 15,083,210
Page 3 of 3
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Combining Statement of Revenues, Expenditures and Changes in Fund Balances
NonMajor Governmental Funds
For Year Ended December 31, 2010
Special Revenue Pagel of 3
Expenditures
Arterial
Contingency
Civic
Parking
Community
Abatement
Police Special
General government
Street
Street
Reserve
Improvement
System
Block Grant
Revolving
Projects
BKAT
Revenues
-
-
- -
Transportation
152,344
1,943,703
-
575,146 - -
Taxes
$ $
317,899
$
$ 347,792
$
$ $
-
$ $
177
Licenses and permits
-
-
165,900
-
Debt service:
Transfers in
261,770
Intergovernmental
1,014,942
785,461
-
- -
Interest and other debt issue costs
972,567
-
87,460
47,807
Charges for services
12,248
363,262
-
- - - - -
360
52,352
8,037
-
71,660
Fines and forfeits
-
-
13,037 162,796
-
330,710
-
-
32,946
-
Miscellaneous
14,731
50,222
13,037
704
840,782
9,344
3,047
71,948
1,515
Total revenues
1,041,921
1,516,844
13,037
348,496
1,171,852
1,034,263
11,084
192,354
382,929
Expenditures
Current
Proceeds of Long Term Debt
General government
206,054
-
Public safety
Premiums on Bonds Sold
41,438
416,621
Utilities and environment
-
-
- -
Transportation
152,344
1,943,703
-
575,146 - -
Economic environment
-
-
19,800
- 1,107,702 1,588
Mental/physical health
-
-
- - -
Culture and recreation
-
26,285
165,900
247,383
Debt service:
Transfers in
277,014
Principal
-
-
- -
Interest and other debt issue costs
-
-
-
164,358
Capital
1,926,262
-
-
- - - - -
Total expenditures
2,078,606
2,217,480
- 185,700
739,504 1,107,702 1,588 416,621 247,383
Excess (deficiency) ofrevenues
(1,036,685)
(700,636)
13,037 162,796
432,348 (73,439) 9,496 (224,267) 135,546
over expenditures
Other Financing Sources (Uses)
Proceeds of Long Term Debt
Premiums on Bonds Sold
Payments to Refunded Debt Escrow Agent
-
Capital asset donations & disposal
3,341
-
Insurance Recoveries
-
17,709
Transfers in
277,014
705,000
Transfers out
-
-
(250,000)
(168,200)
(375,000)
(15,000)
(25,000)
Total other financing sources and uses
280,355
722,709
(250,000)
(168,200)
(375,000)
(15,000)
(25,000)
Other Changes in Fund Balance
Change in reserves for inventory
-
(10,666)
-
-
Net change in fund balances
(756,330)
11,407
(236,963)
(5,404)
57,348
(73,439) (5,504) (224,267)
110,546
Fund balances-beginning
1,816,059
103,039
1,250,208
38,516
297,171
503,155 237,875 1,158,525
38,829
Prior period adjustments
-
-
-
-
20,231
- - -
-
Fund balances-ending $
1,059,729 $
114,446 $
1,013,245 $
33,112 $
374,750 $
429,716 $ 232,371 $ 934,258 $
149,375
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Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Utilities and environment
Transportation
Economic environment
Mental/physical health
Culture and recreation
Debt service:
Principal
Interest and other debt issue costs
Capital
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses)
Proceeds of Long Term Debt
Premiums on Bonds Sold
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
Prior period adjustments
Fund balances - ending
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
NonMajor Governmental Funds
For Year Ended December 31, 2010
Special Revenue
Conference
Gift & Trial One Pecent Center Bond 2010 210 UTGO/
Donation Improvement for Art Operations Total Fund LTGO LTGO(B) Total
$ $ $ $ $ 665,868 $ 893,194 $ 146,258 $ $ 1,039,452
261,770 - - -
28,507 2,936,744
- 1,248 1,259,316 1,768,483
- - - 363,656 - - -
15,240 1,021 5,130 9,340 1,036,061 8,749 402 6 9,157
15,240 29,528 6,378 1,268,656 7,032,582 901,943 146,660 6 1,048,609
6,655 58,780 271,489
1,448 - 459,507
2,671,193
1,129,090
4,309 25,831 1,505,448 1,975,156
164,358
- - - - 1,926,262
12,412 58,780 25,831 1,505,448 8,597,055
639,000 - 639,000
309,172 89,750 398,922
948,172 89,750 1,037,922
2 (29,252) (19,453) (236,792) (1,564,473) (46,229) 146,660 (89,744) 10,687
3,341
- 17,709
155,000 1,137,014
- (833,200)
155,000 324,864
9,920,000 9,920,000
357,267 357,267
(200,000) (10,187,010) (10,387,010)
270,000 270,000
70,000 90,257 160,257
(10,666)
2,828 (29,252) (19,453) (81,792) (1,250,275)
76,284 60,754 77,946 451,088 6,109,449
- - - - 20,231
$ 79,112 $ 31,502 $ 58,493 $ 369,296 $ 4,879,405
Debt Service Page 2 of 3
23,771 146,660 513 170,944
262,834 - - 262,834
$ 286,605 $ 146,660 $ 513 $ 433,778
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O
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
NonMajor Governmental Funds
For Year Ended December 31, 2010
Capital Projects
Total
Evergreen Nonmaj or
Public Safety Harborside Park General Gov't Parks Remediation Governmental
Project Plaza Plaza Cap Impr Construction Project Total Funds
Revenues
Taxes $ $ $ $ 412,517 $ $ $ 412,517 $ 2,117,837
Licenses and permits - - 261,770
Intergovernmental 1,252,500 1,228,346 250,191 2,731,037 5,667,781
Charges for services - - - - 1,768,483
Fines and forfeits - - - - - 363,656
Miscellaneous 5,591 916,440 9,092 1,340 253,593 859 1,186,915 2,232,133
Total revenues 5,591 2,168,940 9,092 413,857 1,481,939 251,050 4,330,469 12,411,660
Expenditures
Current
1,550,000
7,280,000
300,000
9,130,000
19,050,000
General government
90,713
-
-
90,713
362,202
Public safety
-
-
-
459,507
Utilities and environment
33,835
33,835
-
Transportation
-
-
-
2,671,193
Economic environment
887,388
887,388
2,016,478
Mental/physical health
-
-
-
(210,000)
-
-
-
Culture and recreation
1,550,000
(277,014)
7,280,000
(210,000)
64,740
64,740
2,039,896
Debt service:
-
Principal
-
-
-
- -
-
-
639,000
Interest and other debt issue costs
19,980
-
83,762
1,258 9,711
-
114,711
677,991
Capital
2,284,364
471,962
2,679,620
- 1,586,701
261,454
7,284,101
9,210,363
Total expenditures
2,395,057
1,359,350
2,763,382
1,258 1,596,412
326,194
8,441,653
18,076,630
Excess (deficiency) ofrevenues
(2,389,466)
809,590
(2,754,290)
412,599 (114,473)
(75,144)
(4,111,184)
(5,664,970)
over expenditures
Other Financing Sources (Uses)
Proceeds of Long Term Debt
1,550,000
7,280,000
300,000
9,130,000
19,050,000
Premiums on Bonds Sold
-
-
-
-
357,267
Payments to Refunded Debt Escrow Agent
-
-
(10,387,010)
Capital asset donations & disposal
33,835
33,835
37,176
Insurance Recoveries
-
-
17,709
Transfers in
1,407,014
Transfers out
-
(277,014)
-
(210,000)
-
(487,014)
(1,320,214)
Total other financing sources and uses
1,550,000
(277,014)
7,280,000
(210,000)
333,835
8,676,821
9,161,942
Other Changes in Fund Balance
Change in reserves for inventory
-
-
-
-
-
-
(10,666)
Net change in fund balances
(839,466)
532,576
4,525,710
202,599
219,362
(75,144) 4,565,637
3,486,306
Fund balances-beginning
1,044,199
251,918
-
24,241
538,501
238,002 2,096,861
8,469,144
Prior period adjustments
-
-
-
-
-
- -
20,231
Fund balances - ending
$ 204,733 $
784,494 $
4,525,710 $
226,840 $
757,863 $
162,858 $ 6,662,498
$ 11,975,681
Page 3 of 3
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City of Bremerton / 71
Arterial Street Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
3,000
53,000
39,364
Variance with
Original
Final
112,941
Final Budget
Budget
Budget
Actual
Positive
2010
2010
2010
(Negative)
3,128,000
2,932,000
1,014,942
(1,917,058)
420,000
220,000
12,248
(207,752)
32,000
32,000
295,086
263,086
3,580,000
3,184,000
1,322,276
(1,861,724)
3,000
53,000
39,364
13,636
112,000
162,000
112,941
49,059
4,113,000
4,013,000
1,926,301
2,086,699
4,228,000 4,228,000 2,078,606 2,149,394
(648,000) (1,044,000) (756,330) 287,670
1,805,065 1,816,059 1,816,059 -
$ 1,157,065 $ 772,059 $ 1,059,729 $ 287,670
72 /Financial Section
Street Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
$ 275,000 $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
$ 275,000 $
275,000 $
317,899 $
42,899
590,000
786,000
785,461
(539)
426,000
426,000
363,262
(62,738)
1,321,000
866,000
772,931
(93,069)
2,612,000
2,353,000
2,239,553
(113,447)
1,518,700
1,418,700
1,203,790
214,910
1,091,000
1,006,971
1,013,690
(6,719)
2,609,700 2,425,671 2,217,480 208,191
2,300 (72,671) 22,073 94,744
63,354 103,039 103,039 -
$ 65,654 $ 30,368 $ 125,112 $ 94,744
City of Bremerton / 73
Contingency Reserve Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
15,000 15,000 13,037 (1,963)
15,000 15,000 13,037 (1,963)
250,000 250,000 250,000 -
250,000 250,000 250,000 -
(235,000) (235,000) (236,963) (1,963)
1,254,635 1,254,635 1,250,208 (4,427)
$ 1,019,635 $ 1,019,635 $ 1,013,245 $ (6,390)
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
15,000 15,000 13,037 (1,963)
15,000 15,000 13,037 (1,963)
250,000 250,000 250,000 -
250,000 250,000 250,000 -
(235,000) (235,000) (236,963) (1,963)
1,254,635 1,254,635 1,250,208 (4,427)
$ 1,019,635 $ 1,019,635 $ 1,013,245 $ (6,390)
74 /Financial Section
Lodging Tax Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
$ 410,000 $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
$ 410,000 $
410,000 $
347,792 $
(62,208)
1,000
1,000
704
(296)
411,000
411,000
348,496
(62,504)
225,000
235,000
185,700
49,300
185,000
175,000
168,200
6,800
410,000
410,000
353,900
56,100
1,000 1,000 (5,404) (6,404)
(301) (301) 38,516 38,817
$ 699 $ 699 $ 33,112 $ 32,413
City of Bremerton / 75
Parking System Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
658,000
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
658,000
658,000
575,146 82,854
450,000
25,000
1,000
360
(640)
250,000
350,000
330,710
(19,290)
1,543,000
903,000
840,782
(62,218)
1,818,000
1,254,000
1,171,852
(82,148)
658,000
658,000
575,146 82,854
450,000
-
- -
275,000
275,000
164,358 110,642
435,000
375,000
375,000 -
1,818,000
1,308,000
1,114,504 193,496
(54,000) 57,348 111,348
277,163 297,171 317,402 20,231
$ 277,163 $ 243,171 $ 374,750 $ 131,579
76 /Financial Section
Community Development Block Grant Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
1,493,164
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
1,493,164
1,493,164
972,567
(520,597)
20,000
20,000
52,352
32,352
12,000
12,000
9,344
(2,656)
1,525,164
1,525,164
1,034,263
(490,901)
172,700 172,700 133,625 39,075
1,027,300 1,027,300 974,077 53,223
120,000 120,000 - 120,000
1,320,000 1,320,000 1,107,702 212,298
205,164 205,164 (73,439) (278,603)
529,522 529,522 503,155 (26,367)
$ 734,686 $ 734,686 $ 429,716 $ (304,970)
City of Bremerton / 77
Abatement Revolving Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
- - 8,037 8,037
3,000 3,000 3,047 47
3,000 3,000 11,084 8,084
77,000 62,000 1,588 60,412
- 15,000 15,000 -
77,000 77,000 16,588 60,412
(74,000) (74,000) (5,504) 68,496
196,372 237,875 237,875 -
$ 122,372 $ 163,875 $ 232,371 $ 68,496
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
- - 8,037 8,037
3,000 3,000 3,047 47
3,000 3,000 11,084 8,084
77,000 62,000 1,588 60,412
- 15,000 15,000 -
77,000 77,000 16,588 60,412
(74,000) (74,000) (5,504) 68,496
196,372 237,875 237,875 -
$ 122,372 $ 163,875 $ 232,371 $ 68,496
78 /Financial Section
Police Special Projects Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
504,700 504,700 416,621 88,079
504,700 504,700 416,621 88,079
(376,700) (376,700) (224,267) 152,433
1,019,311 1,019,311 1,158,525 139,214
$ 642,611 $ 642,611 $ 934,258 $ 291,647
Variance with
Original
Final
Final Budget
Budget
Budget
Actual
Positive
2010
2010
2010
(Negative)
-
-
87,460
87,460
38,000
38,000
32,946
(5,054)
90,000
90,000
71,948
(18,052)
128,000
128,000
192,354
64,354
504,700 504,700 416,621 88,079
504,700 504,700 416,621 88,079
(376,700) (376,700) (224,267) 152,433
1,019,311 1,019,311 1,158,525 139,214
$ 642,611 $ 642,611 $ 934,258 $ 291,647
City of Bremerton / 79
Public Access TV Operations Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
2010 2010
2010 (Negative)
$ - $
- $
177 $
177
244,000
244,000
261,770
17,770
-
-
47,807
47,807
77,000
77,000
71,660
(5,340)
1,000
1,000
1,515
515
322,000
322,000
382,929
60,929
221,000
221,000
201,040
19,960
38,700
45,448
46,343
(895)
33,000
25,000
-
25,000
25,000
25,000
25,000
-
317,700
316,448
272,383
44,065
4,300 5,552 110,546 104,994
22,431 38,829 38,829 -
$ 26,731 $ 44,381 $ 149,375 $ 104,994
80 /Financial Section
Gift and Donation Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
9,700 12,200 12,412 (212)
9,700 12,200 12,412 (212)
(1,700) (4,200) 2,828 7,028
76,526 76,526 76,284 (242)
$ 74,826 $ 72,326 $ 79,112 $ 6,786
Variance with
Original
Final
Final Budget
Budget
Budget
Actual
Positive
2010
2010
2010
(Negative)
8,000
8,000
15,240
7,240
8,000
8,000
15,240
7,240
9,700 12,200 12,412 (212)
9,700 12,200 12,412 (212)
(1,700) (4,200) 2,828 7,028
76,526 76,526 76,284 (242)
$ 74,826 $ 72,326 $ 79,112 $ 6,786
City of Bremerton / 81
Trial Improvement Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
52,000 62,000 58,780 3,220
52,000 62,000 58,780 3,220
(28,000) (38,000) (29,252) 8,748
66,589 66,589 60,754 (5,835)
$ 38,589 $ 28,589 $ 31,502 $ 2,913
Variance with
Original
Final
Final Budget
Budget
Budget
Actual
Positive
2010
2010
2010
(Negative)
24,000
24,000
28,507
4,507
-
-
1,021
1,021
24,000
24,000
29,528
5,528
52,000 62,000 58,780 3,220
52,000 62,000 58,780 3,220
(28,000) (38,000) (29,252) 8,748
66,589 66,589 60,754 (5,835)
$ 38,589 $ 28,589 $ 31,502 $ 2,913
82 /Financial Section
One Percent for Arts Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
30,000 25,831 4,169
60,000 30,000 - 30,000
60,000 60,000 25,831 34,169
(38,000) (38,000) (19,453) 18,547
55,279 55,279 77,946 22,667
$ 17,279 $ 17,279 $ 58,493 $ 41,214
Variance with
Original
Final
Final Budget
Budget
Budget
Actual
Positive
2010
2010
2010
(Negative)
-
-
1,248
1,248
22,000
22,000
5,130
(16,870)
22,000
22,000
6,378
(15,622)
30,000 25,831 4,169
60,000 30,000 - 30,000
60,000 60,000 25,831 34,169
(38,000) (38,000) (19,453) 18,547
55,279 55,279 77,946 22,667
$ 17,279 $ 17,279 $ 58,493 $ 41,214
City of Bremerton / 83
Conference Center Operations Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
82,000 82,000 62,986 19,014
1,469,000 1,469,000 1,442,462 26,538
- 20,000 - 20,000
1,551,000 1,571,000 1,505,448 65,552
4,500 (15,500) (81,792) (66,292)
262,098 262,098 451,088 188,990
$ 266,598 $ 246,598 $ 369,296 $ 122,698
Variance with
Original
Final
Final Budget
Budget
Budget
Actual
Positive
2010
2010
2010
(Negative)
1,341,500
1,341,500
1,259,316
(82,184)
214,000
214,000
164,340
(49,660)
1,555,500
1,555,500
1,423,656
(131,844)
82,000 82,000 62,986 19,014
1,469,000 1,469,000 1,442,462 26,538
- 20,000 - 20,000
1,551,000 1,571,000 1,505,448 65,552
4,500 (15,500) (81,792) (66,292)
262,098 262,098 451,088 188,990
$ 266,598 $ 246,598 $ 369,296 $ 122,698
84 /Financial Section
Bond Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
$ 887,700 $
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
$ 887,700 $
887,700 $
893,194 $
5,494
277,000
277,000
278,749
1,749
1, 164,700
1, 164,700
1, 171,943
7,243
1,178,350 1,178,350 1,148,172 30,178
1,178,350 1,178,350 1,148,172 30,178
(13,650) (13,650) 23,771 37,421
239,918 239,918 262,834 22,916
$ 226,268 $ 226,268 $ 286,605 $ 60,337
City of Bremerton / 85
2010 LTGO Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
2010 2010 2010 (Negative)
$ - $ - $ 146,258 $ 146,258
- - 402 402
- - 146,660 146,660
146,660 146,660
$ - $ - $ 146,660 $ 146,660
86 /Financial Section
2010 UTGO REF /LTGO (B) Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
2010 2010 2010 (Negative)
- 10,277,300 10,277,273 (27)
- 10,277,300 10,277,273 (27)
10,276,900 10,276,760 140
10,276,900 10,276,760 140
400 513 113
$ - $ 400 $ 513 $ 113
City of Bremerton / 87
Public Safety Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
1,125,000 1,555,000 1,555,591 591
1,125,000 1,555,000 1,555,591 591
61,000 80,000
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
1,125,000 1,555,000 1,555,591 591
1,125,000 1,555,000 1,555,591 591
61,000 80,000
101,084
(21,084)
2,221,800 2,265,000
2,273,993
(8,993)
- 17,000
19,980
(2,980)
- 237,199
-
237,199
2,282,800 2,599,199
2,395,057
204,142
(1,157,800) (1,044,199) (839,466) 204,733
1,158,003 1,044,199 1,044,199 -
$ 203 $ - $ 204,733 $ 204,733
88 /Financial Section
Harborside Plaza and Commons Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
1,239,863 1,279,101 1,252,500 (26,601)
- 901,000 916,440 15,440
1,239,863 2,180,101 2,168,940 (11,161)
- - 887,388
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
1,239,863 1,279,101 1,252,500 (26,601)
- 901,000 916,440 15,440
1,239,863 2,180,101 2,168,940 (11,161)
- - 887,388
(887,388)
1,247,000 1,414,103 471,962
942,141
- 280,000 277,014
2,986
1,247,000 1,694,103 1,636,364
57,739
(7,137) 485,998 532,576 46,578
7,137 251,918 251,918 -
$ - $ 737,916 $ 784,494 $ 46,578
City of Bremerton / 89
Park Plaza Construction Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
8,500,000 8,425,000 2,679,620 5,745,380
- 75,000 83,762 (8,762)
8,500,000 8,500,000 2,763,382 5,736,618
4,525,710 4,525,710
$ - $ - $ 4,525,710 $ 4,525,710
Variance with
Original
Final
Final Budget
Budget
Budget
Actual
Positive
2010
2010
2010
(Negative)
8,500,000
8,500,000
7,289,092
(1,210,908)
8,500,000
8,500,000
7,289,092
(1,210,908)
8,500,000 8,425,000 2,679,620 5,745,380
- 75,000 83,762 (8,762)
8,500,000 8,500,000 2,763,382 5,736,618
4,525,710 4,525,710
$ - $ - $ 4,525,710 $ 4,525,710
90 /Financial Section
General Government Improvements Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
$ 600,000 $ 450,000 $ 412,517 $ (37,483)
2,250,000 - 1,340 1,340
2,850,000 450,000 413,857 (36,143)
378,000
Variance with
Original Final
Final Budget
Budget Budget
Actual Positive
2010 2010
2010 (Negative)
$ 600,000 $ 450,000 $ 412,517 $ (37,483)
2,250,000 - 1,340 1,340
2,850,000 450,000 413,857 (36,143)
378,000
1,300
1,258
42
2,440,000
285,000
210,000
75,000
2,818,000
286,300
211,258
75,042
32,000 163,700 202,599 38,899
25,071 24,241 24,241 -
$ 57,071 $ 187,941 $ 226,840 $ 38,899
City of Bremerton / 91
Park Facilities Construction Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
2,130,000
2,130,000
1,586,701
Variance with
Original
Final
16,293
Final Budget
Budget
Budget
Actual
Positive
2010
2010
2010
(Negative)
1,600,000
1,600,000
1,228,346
(371,654)
750,000
120,000
587,428
467,428
2,350,000
1,720,000
1,815,774
95,774
2,130,000
2,130,000
1,586,701
543,299
13,200
16,200
16,293
(93)
2,143,200 2,146,200 1,602,994 543,206
206,800 (426,200) 212,780 638,980
451,065 518,251 639,686 121,435
$ 657,865 $ 92,051 $ 852,466 $ 760,415
92 /Financial Section
Evergreen Park Remediation Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2010
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
359 (359)
- - 64,381 (64,381)
2,535,000 1,285,000 261,454 1,023,546
2,535,000 1,285,000 326,194 958,806
65,000 65,000 (75,144) (140,144)
58,249 238,002 238,002 -
$ 123,249 $ 303,002 $ 162,858 $ (140,144)
Variance with
Original
Final
Final Budget
Budget
Budget
Actual
Positive
2010
2010
2010
(Negative)
1,250,000
1,250,000
250,191
(999,809)
1,350,000
100,000
859
(99,141)
2,600,000
1,350,000
251,050
(1,098,950)
359 (359)
- - 64,381 (64,381)
2,535,000 1,285,000 261,454 1,023,546
2,535,000 1,285,000 326,194 958,806
65,000 65,000 (75,144) (140,144)
58,249 238,002 238,002 -
$ 123,249 $ 303,002 $ 162,858 $ (140,144)
City of Bremerton / 93
Combining Statement of Net Assets
Internal Service Funds
December 31, 2010
Business -type Activities
Enterprise Funds
Risk Equipment Equipment Information
Management Maintenance Reserve Technology Total
Assets
Current assets
Cash & investments
1,411,305
228,821
5,860,428
473,944
7,974,498
Restricted Cash
100,000
-
-
-
100,000
Deposits with Fiscal Agent
-
-
-
-
-
External receivables
3,352
-
1,051
-
4,403
Restricted Special Assesments Rec
-
-
-
-
-
Interest receivable
2,139
324
8,295
671
11,429
Due from other funds
11,381
13,112
119,333
27,145
170,971
Due from other governments
-
-
-
-
-
Inventories
-
83,588
-
-
83,588
Prepayments
54,885
-
-
-
54,885
Total current assets
1,583,062
325,845
5,989,107
501,760
8,399,774
Noncurrent assets:
Notes and contracts receivable - - - - -
Restricted Special Assessments Rec - - - - -
Prepaid Pension 449,345 - - - 449,345
Capital assets net of depreciation - - 4,443,683 18,566 4,462,249
Other noncurrent assets - - 971 - 971
Total noncurrent assets 449,345 - 4,444,654 18,566 4,912,565
Total assets 2,032,407 325,845 10,433,761 520,326 13,312,339
Liabilities
Current liabilities:
Accounts /contract payable
3,704
66,879
- 54,996
125,579
Matured long term obligations
-
-
- -
-
Due to other funds
-
2,025
13,112 121
15,258
Other accrued liabilities
442,479
43,979
443 43,387
530,288
Current portion of long term debt
-
-
- -
-
Custodial accounts
-
-
- -
-
Total current liabilities
446,183
112,883
13,555 98,504
671,125
Noncurrent liabilities:
Claims and judgements payable
1,226,924
-
- -
1,226,924
Bonds, notes and loans payable
-
-
- -
-
Compensated absences
2,337
- 2,992
5,329
Total noncurrent liabilities
1,226,924
2,337
- 2,992
1,232,253
Total liabilities 1,673,107 115,220 13,555 101,496 1,903,378
Net Assets
Invested in captial assets, net
of related debt - - 4,443,683 18,566 4,462,249
Restricted for capital assets
Unrestricted 359,300 210,625 5,976,523 400,264 6,946,712
Total net assets 359,300 210,625 10,420,206 418,830 11,408,961
94 /Financial Section
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Internal Service Funds
For the Year Ended December 31, 2010
Governmental Activities
Internal Service Funds
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)
Interest and investment revenue
Interest expense
Gain (loss) on capital asset disposal
Other nonoperating revenue /(Expense)
Total nonoperating revenues (expenses)
Income (loss) before contributions and transfers
Capital contributions
Transfers in
Transfers out
Change in net assets
Total net assets - beginning
Prior period adjustments (Note 15)
Total net assets - ending
Equipment Equipment
Risk Rental Rental Information
Management Operations Reserve Technology Total
$ 1,374,893 $
1,821,325 $
487,000 $
1,000,000 $
4,683,218
17,362
-
-
-
17,362
384,085
-
56
-
384,141
1,776,340
1,821,325
487,056
1,000,000
5,084,721
-
1,630,358
-
880,654
2,511,012
299,197
-
-
-
299,197
-
-
723,824
21,608
745,432
420,358
-
-
-
420,358
576,657
-
-
-
576,657
54,512
-
-
-
54,512
1,350,724
1,630,358
723,824
902,262
4,607,168
425,616
190,967
(236,768)
97,738
477,553
-
7,809
74,994
5,498
88,301
-
-
(252)
(22,550)
(22,802)
164
23,186
-
256
23,606
164
30,995
74,742
(16,796)
89,105
425,780
221,962
(162,026)
80,942
566,658
-
-
437,029
-
437,029
-
(437,029)
-
-
(437,029)
425,780
(215,067)
275,003
80,942
566,658
(66,480) 425,692 10,145,203 337,888 10,842,303
$ 359,300 $ 210,625 $ 10,420,206 $ 418,830 $ 11,408,961
City of Bremerton / 95
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ending December 31, 2010
Pagel of2
Cash Flows From Operating Activities
Cash received from customers
Interest on Investments
Cash payments to suppliers
Cash payments to employees
Purchase of insurance
Payment for insurance claims
Other operating receipts and payments
Net cash provided (used) by operating activities
Cash Flows From Noncapitai Financing Activities
Transfers in
Transfers out
Other nonoperating revenues/expenses
Net cash provided by noncapital
financing activities
Cash Flows From Capital and Related
Financing Activities
Acquisition and construction of capital assets
Proceeds from sale of other assets
Capital contributions
Transfer in for asset construction
Transfer out for asset construction
Collections on notes receivable
Loan/grant proceeds
Principal paid on revenue bonds
Principal paid on other debt
Interest paid on revenue bonds and other debt
Net cash used for capital and related
financing activities
Cash Flows From Investing Activities
Proceeds from repayment of loans
Disbursement of Loans
Proceeds from special assessments
Interest on loans and investments
Net cash provided in investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning of year
Cash and cash equivalents - end of year
Cash at the end of the year consists of
Operating fund cash
Restricted cash
Total cash at end of year
Equipment Equipment
Risk Rental Rental information
Management Operations Reserve Technology Total
$ 1,363,512 $
1,821,325 $
487,000 $ 1,000,000 $
4,671,837
17,982
-
- -
17,982
(352,726)
(1,110,233)
(356,949)
(1,819,908)
(3,412)
(610,384)
- (516,465)
(1,130,261)
(444,423)
(14,726)
132,282
(459,149)
(991,465)
-
- -
(991,465)
384,085
-
56 -
384,141
(26,447)
85,982
487,056 126,586
673,177
600,923 600,923
- (511,917) - - (511,917)
164 23,186 256 23,606
164 (488.731) 600.923 256 112.612
(396,951) (396,951)
55,538 55,538
(341,413) (341,413)
1,411,305 228,821 5,860,428 473,944 7,974,498
100,000 - - - 100,000
$ 1,511,305 $ 228,821 $ 5,860,428 $ 473,944 $ 8,074,498
506,583
506,583
-
830
-
830
8,601
73,307
5,440
87,348
8,601
580,720
5,440
594,761
(26,283) (394,148)
1,327,286
132,282
1,039,137
1,537,588 622,969
4,533,142
341,662
7,035,361
$ 1,511,305 $ 228,821 $
5,860,428 $
473,944 $
8,074,498
1,411,305 228,821 5,860,428 473,944 7,974,498
100,000 - - - 100,000
$ 1,511,305 $ 228,821 $ 5,860,428 $ 473,944 $ 8,074,498
96 /Financial Section
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ending December 31, 2010
Page 2 of 2
Noncash investing, capital and financial activities;
Developers contributed infrastruchme
Equipment
Equipment
Risk
Rental
Rental
information
Management
Operations
Reserve
Technology
Total
Reconciliation of operating income to net cash provided by operating activities:
Operating income (loss)
425,616
190,967
(236,768)
97,738
477,553
Adjustments to reconcile operating income
to net cash provided by operating
activities:
Depreciation
723,824
21,608
745,432
Transfers in cash flow from operating activities
-
-
-
Operating grant in cash flow from nonfmancing actvty
-
-
Decrease (increase) in receivables
2,268
2,268
Decrease (increase) in due from other funds/govt
(11,381)
(113,612)
(27,145)
(152,138)
Decrease (increase) in prepaid expenses
(478,410)
-
(478,410)
Decrease (increase) in inventory
-
848
-
848
Increase (decrease) in accounts payable
38,829
10,471
37,684
86,984
Increase (decrease) in due to other fimds/govt
43
349
118
510
Increase (decrease) in employee wages payable
(3,412)
1,826
(2,339)
(3,925)
Increase (decrease) in employee vacations payable
(4,867)
(1,078)
(5,945)
Increase (decrease) in customer deposits payable
Increase (decrease) in deferred revenues
-
-
-
-
-
Net cash provided by operating activities
(26,447)
85,982
487,056
126,586
673,177
Noncash investing, capital and financial activities;
Developers contributed infrastruchme
City of Bremerton / 97
Combining Statement of Fiduciary Net Assets
Agency Funds
As of December 31, 2010
Salary Administrative
Clearing Trust Total
Assets
Cash and cash equivalents
Interest receivable
Interfund receivables
Total assets
Liabilities
Accounts /contracts payable
Due to other funds
Other current liabilities
Total liabilities
$
65,027
$
309,596
$
374,623
$
65,027
$
309,596
$
374,623
- 58,143 58,143
1,974 - 1,974
63,053 251,453 314,506
$ 65,027 $ 309,596 $ 374,623
98 /Financial Section
THIS PAGE LEFT BLANK INTENTIONALLY.
STATISTICAL SECTION
Table 1
Net Assets by Component
Last Eight 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
_n
O
b0
W
CD
O
VO
VO
900 /Statistical Section
Table 2
Changes in Net Assets
Last Eight Fiscal Years
Expenses
$ 5,708,373 $
4,138,939 $
2,222,433
Governmental Activities
$ 4,203,531
$ (4,239,084) $ 81,616
$ (1,208,855)
Transfers
Governmental Activities
2003
2004
2005
2006
2007
2008
2009
2010
Revenues
$ 4,497,784 $
3,178,781 $
3,311,938 $
4,036,679 $
3,838,442 $
4,799,392 $
4,001,383 $
3,250,587
Governmental Activities
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 Revenues
193,048
183,645
7,819,137
205,404
374,985
223,469
226,975
219,431
Charges for Services
$ 5,213,469 $
6,408,743 $
7,069,069 $
7,898,109 $
8,239,980 $
8,911,480 $
9,065,757 $
7,974,533
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
Capital Grants and Contributions
7,347,931
7,528,350
1,541,002
7,895,086
9,928,551
4,638,620
3,922,004
3,748,282
General Revenues
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 Taxes
6,966,861
7,005,388
6,991,232
7,329,167
7,920,916
7,799,723
8,490,418
8,553,934
Sales Taxes
6,313,342
6,393,740
6,637,147
7,157,768
7,574,011
7,790,117
6,541,673
6,538,977
Business Taxes
2,632,276
3,555,740
4,224,596
3,898,778
4,783,087
3,454,258
3,706,834
3,406,535
Utility Taxes
3,986,704
4,055,931
4,296,416
4,744,302
4,974,578
5,087,768
4,753,803
4,531,307
Other Taxes
2,611,599
2,598,693
2,938,131
3,567,985
2,984,146
2,572,169
2,461,170
2,391,050
Other General Revenues
342,419
(131,583)
2,172,184
3,088,501
1,831,840
1,004,194
217,758
1,428,517
Total GovernmentalRwena
36,774,985
39,319,577
37,375,082
46,544,150
49,587,755
43,579,733
41,386,385
41,258,416
B -ine .,s -Type Activities
18,500,494
19,980,944
19,978,426
21,218,149
21,664,497
22,679,409
22,846,422
21,168,699
Charges for Services
21,266,386
22,026,027
24,568,993
27,738,767
27,611,963
26,764,076
27,619,991
25,981,745
Operating Grants and Contributions
-
-
-
-
-
235,414
34,341
65,812
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
Sales Taxes
45,131
58,973
71,500
49,180
41,562
21,857
14,678
-
Business Taxes
13,704
9,588
11,572
6,672
8,004
229
-
6,486
Other General Revenues
54,414
(2,712)
187,537
487,531
913,859
1,005,523
556,994
584,246
Total Busine .,s- Type Activities
22,579,786
24,645,504
26,118,862
29,037,286
33,512,074
36,476,362
32,108,294
34,055,607
Total Primary Government Program Revenues
$ 59,354,771 $
63,965,081 $
63,493,944 $
75,581,436 $
83,099,829 $
80,056,095 $
73,494,679 $
75,314,023
Expenses
$ 5,708,373 $
4,138,939 $
2,222,433
$ 5,684,862
$ 4,203,531
$ (4,239,084) $ 81,616
$ (1,208,855)
Transfers
Governmental Activities
1,153,453
1,673,717
1,291,437
1,944,641
1,973,245
4,175,924
3,610,764
Govern mental Activities Change in Net Asset.,
General government
$ 4,497,784 $
3,178,781 $
3,311,938 $
4,036,679 $
3,838,442 $
4,799,392 $
4,001,383 $
3,250,587
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
Physical environment
193,048
183,645
7,819,137
205,404
374,985
223,469
226,975
219,431
Transportation
3,823,484
6,442,549
4,453,072
7,731,187
8,936,077
8,914,778
4,214,922
4,012,477
Community development
2,247,355
2,916,242
2,463,469
2,863,004
2,601,899
3,146,023
2,031,753
3,310,097
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
interest on long -term debt
929,920
1,205,561
1,360,925
1,422,858
1,378,912
1,181,513
961,926
976,987
Total Govc aentalEzpenses
31,066,612
35,180,638
35,152,649
40,859,288
45,384,224
47,818,817
41,304,769
42,467,271
Baisine .,s -Type Activities
Not assets - beginning
Water
6,244,202
7,234,139
7,189,614
8,052,273
8,247,875
9,073,514
9,242,707
8,298,916
Wastewater
7,879,292
8,425,512
8,409,503
8,387,319
8,589,358
9,012,578
8,927,299
9,009,876
GrolfCourse
3,522,053
3,412,554
3,318,926
3,578,441
3,498,529
3,264,660
3,198,390
2,256,772
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
TotalBusine .,s- Type Activities
18,500,494
19,980,944
19,978,426
21,218,149
21,664,497
22,679,409
22,846,422
21,168,699
Total Primary Government Program Expenses
$ 49,567,106 $
55,161,582 $
55,131,075 $
62,077,437 $
67,048,721 $
70,498,226 $
64,151,191 $
63,635,970
Change in Net Assets
Governmental Activities
Excess ofrevenues over expenses
$ 5,708,373 $
4,138,939 $
2,222,433
$ 5,684,862
$ 4,203,531
$ (4,239,084) $ 81,616
$ (1,208,855)
Transfers
1,162,029
1,153,453
1,673,717
1,291,437
1,944,641
1,973,245
4,175,924
3,610,764
Govern mental Activities Change in Net Asset.,
6,870,402
5,292,392
3,896,150
6,976,299
6,148,172
(2,265,839)
4,257,540
2,401,909
B -ine .,s -Type Activitie.,
Exccss ofrevenues over expenses
4,079,292
4,664,560
6,140,436
7,819,137
11,847,577
13,796,953
9,261,872
12,886,908
Transfers
(1,162,029)
(1,153,453)
(1,673,717)
(1,291,437)
(1,944,641)
(1,973,245)
(4,175,924)
(3,610,764)
Basin .,s- Type Activitie.,Change in Net Asset.,
2,917,263
3,511,107
4,466,719
6,527,700
9,902,936
11,823,708
5,085,948
9,276,144
Governmental Activities Net Assets
Not assets - 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
Prior period adjustment/special items
1,475,059
1,708,823
(140,726)
(5,811,306)
(2,144,491)
Netassets - -dnng
62,602,914
69,299,157
73,195,307
80,171, 606
88,028,601
80,100,570
84,358,110
84,615,528
Basin .,s -Type Activitie., Net A.ssels
Not assets - 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
Prior period adjustment/special items
(69,539)
(360,978)
350,000
(705,529)
10,904,141
(728,969)
Netassets - -dnng
92,986,868
96,569,183
101,035,902
107,202,624
117,455,560
134,712,075
144,890,858
153,438,033
Total Primary Government Net Assets
$ 155,589,782 $
165,868,340 $
174,231,209
$ 187,374,230
$ 205,484,161
$ 214,812,645
$ 229,248,968
$ 238,053,561
Table 3
Fund Balance of Government Funds
Last Ten Fiscal Years
GENERALFUND
Reserved
$ 86,589 $
95,337 $
93,442 $
16,070 $
15,570 $
14,970 $
20,470 $
19,070 $
$
Unreserved
1,569,402
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
Total General Fund
1,655,991
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
ALL OTHER GOVERNMENTAL FUNDS
Reserved
89,850
77,421
71,938
72,949
1,564,096
1,054,224
176,435
198,472
350,758
391,078
Unreserved, Reported In:
Special Revenue Funds
4,120,290
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
Capital Projects Funds
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
Debt Service Funds
356,163
300,829
294,747
203,981
375,324
418,036
548,107
590,314
262,834
433,778
Total All Other Governmental Funds
4,566,303
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
TOTALALLGOVERNMENTALFUNDS
$ 6,222,294 $
20,232,544 $
22,659,829 $
14,494,388 $
17,732,966 $
16,973,583 $
13,707,055 $
9,567,302 $
10,426,452 $
15,025,559
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902 /Statistical Section
Table 4
Changes in Fund Balances of Government Funds
Last Ten Fiscal Years
EXPENDITURES
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
REVENUES
Taxes
S 19248298
S 20.280.199
S 21.066589
S 21219675
S 23762468
S 25423,632 S
26571963
S 25,132935
S 24,259 26>2
S 23958,593
Licenses and Permits
459,064
709A98
720.506
862913
1,138,578
1,043642
1,160.778
1,037,771
1,174918
1,165394
Itergoa cromenlal
8,751214
5387,636
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
2,918,308
3,515,240
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
838995
913,451
833,772
751,536
721,703
868A27
1,022,563
1,689080
1,929,836
1,581937
Miscellaneous
1,709835
1,825,033
1,762,139
1,681959
2,634,054
3101742
3107379
2,497,255
1,636,519
2962,238
Total Revenues
33926.714
32.631.057
38.142.942
41219266
37569.675
46225.945
46.513388
44209.582
42315412
43.583.520
EXPENDITURES
(841181)
(1,086,147)
(9,821,020)
(8,078,017)
1,091,368
(1671,606)
(4,245,440)
(6,691,999)
(3,730.198)
(8,204,235)
Current
General Gmenunem
4,782,832
5,349,189
5,446,515
5,176,259
5,097,706
5,628,413
6 389,555
6,830.197
6,793,202
6,878,458
Public Safety
13,265,462
13,938,407
14,622354
13,493,936
14,817,115
15,516,122
17,418,932
21,205,949
22222,451
22369,568
Utilities and Envircumem
422,835
144,912
193,048
195,122
195461
217600
374985
223469
226,975
219,431
Transportation
3,202307
3,573,204
3,715,299
3350,876
2,945,199
6,295350
7,652,880
7,401,334
3372,750
3,010,848
Economic emirrnunem
1462,768
2,394,304
2239290
3003305
2,576379
2,795953
2,52L648
3142,196
1950,417
3269259
MemaVphysical health
88,332
117,001
180.743
185,612
68,131
71,285
7L379
71525
74,922
75,126
Culture and recreation
2,424950
2,663660
3,131,506
4,121492
4,327,569
4,873362
5313236
5357250
4,548291
4,867,545
Debt Service:
508,616
15,101,788
12,187,118
56271
2,161358
1,872291
979,667
2,694479
4,589,347
12,690.581
Principal
454,517
1,040.000
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
346220
491,778
1,099,157
1,190262
1,367,191
1,409746
1,363534
1,165,883
946,444
964,772
Capital
8319,672
4,004,749
16622,050
17,842919
4,022,693
10.722,720
8,090,180
4,515,778
4,874,658
936L248
Total Expenditures
34,769895
33717204
47963962
49297283
36,478307
48,897,551
50.758,828
50ML581
46,045,610
51,787,755
Excess (deficiency) of revenues
(841181)
(1,086,147)
(9,821,020)
(8,078,017)
1,091,368
(1671,606)
(4,245,440)
(6,691,999)
(3,730.198)
(8,204,235)
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Proceeds of Long Tetra Debt
-
13352,815
10.865,000
800.000
1,671,000
-
-
-
-
19,407,267
Payments to Refunded Escrow Agent
-
-
-
-
(1,661309)
-
-
-
-
(10.387,010)
Fixed Assets Donations & Disposal
184,814
541,174
-
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
1,533054
3010.681
5,075298
4955,598
6377,743
9768469
8957389
6461827
7,415,810
5,630.979
Transfers out
(I 209252)
(I ,802,882)
(3,753180)
(5,705285)
(6885,610)
(1 0.596716)
(9,445,689)
(4,195,667)
(3239886)
(2,020214)
Total other financing sources and uses
508,616
15,101,788
12,187,118
56271
2,161358
1,872291
979,667
2,694479
4,589,347
12,690.581
OTHER CHANGES IN FUND BALANCE
Change in Reserves for lrventory
(29,525)
(5390)
(10,023)
(72,486)
(14,148)
39,932
(755)
(1,507)
-
(10,666)
Net change in fund balances
(364,090)
14,010,251
2356,075
(8,094,232)
3,238,578
(759383)
(3,266,528)
(3,999,027)
859,149
4,475,680
Fund balances- beonming
6,586384
6,222294
20,232,545
22588,620
14,494,388
17,732,966
16,973,583
11707,055
9,567302
10.426,451
Prior Period Adjustments
(140.726)
123,428
Fund balances - ending
S 6,222294
- 720231545 545
S 22588,620
S 14494388
S 17,732966
S 16,973,583 S
13707,055
S 9,567302 S
10426451
S 15,025,559
Debt service as a percentage of
non - capital expenditures
3.03%
5.16%
5.79%
6.13%
7.48%
7.27%
6.86%
4.64%
4.81%
4.09%
City of Bremerton / 903
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)
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
2001
3.29080
0.49490
0.15520
3.94090
1.51810
3.09510
3.05190
1.75650
4.80840
0.36970
0.11680
0.09750
0.50000
10.50560
14.44650
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
0
co
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Sourcc: Kitsap County Assessor's Officc
City of Bremerton / 905
Table 7
Principal Property Taxpayers
Current
Year and
Nine Years Ago
2010
2001
Percent
Percent
Assessed
of Total
Assessed
of Total
Name
Type of Business
Rank
Valuation
Assessed Value
Rank
Valuation
Assessed Value
Puget Sound Energy
Utility
1
$ 32,103,305
1.1%
1
$ 36,906,886
2.5%
East Park LLC
Property Management
2
20,796,880
0.7%
Kitsap Community Credit Union
Finance
3
18,925,960
0.7%
SHP 11 Bremerton LLC
Property Management
4
11,968,680
0.4%
L 198 1 Sinclair Ridge LLC
Undeveloped Land
5
11,513,500
0.4%
New Albertson Inc
Business Services
6
11,295,780
0.4%
Bremer Trust
Misc Services
7
11,208,290
0.4%
3
8,201,000
0.6%
Bremerton Residential Investments
Business Services
8
10,609,630
0.4%
Toyexpansion LLC
Retail- Automotive
9
10,046,230
0.3%
R & L Property Mgmt LLC
Retail- Automotive
10
9,831,040
0.3%
U. S. West
Telephone Utility
2
25,397,583
1.7%
Bay Point Retirement Community
Retirement Apartments
4
7,451,057
0.5%
Haselwood, Charles & Joanne
Retailer, Land
5
7,042,900
0.5%
Kitsap Physicians Services
Medical
6
6,834,875
0.5%
Merit Company
Community Center
7
6,729,000
0.5%
Erlands Associates LLC
Apartments
8
6,688,000
0.5%
Viewcrest Villages
Residential Properties
9
6,683,000
0.5%
Fir Lane Terrace Conv Ctr
Community Center
10
6,231,000
0.4%
Beta Ballard LLC
Community Center
10
6,231,000
0.4%
Total Taxable Assessed Value
of 10 Largest Taxpayers
148,299,295
5.1%
124,396,301
8.4%
Total Taxable Assessed Value
of all Other Taxpayers
2,751,185,213
94.9%
1,357,834,996
91.6%
Total Taxable Assessed Value
of all Taxpayers
$ 2,899,484,508
100%
$ 1,482,231,297
100%
Source: Kitsap County Assessor's Office
906 /Statistical Section
Table 8
Property Tax Levies and Collections
Last Ten Fiscal Years
(In Thousands)
% of
Delinquent
Current
Fiscal
Tax
Tax
Year
Levy
Collections
2001
5,870
5,543
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
% 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
94.44
215
5,758
98.10
464
7.90
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
City of Bremerton / 907
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
2001
37,260
1,482,231,297
10,930,000
311,654
10,618,346
0.72
285
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
* State of Washington Office of Financial Management
** Kitsap County Assessor
908 /Statistical Section
Table 10
Computation of Direct and Overlapping Debt
December 31, 2010
Gross General
Percentage
Amount
Obligation Debt
Applicable
Applicable
Jurisdiction
Outstanding
To Bremerton
To Bremerton
City of Bremerton
35,705,685
100.00
35,705,685
Kitsap County
125,153,300
9.46
11,839,502
Port of Bremerton
11,710,000
22.78
2,667,538
School District #100
22,967,273
75.01
17,227,751
School District #401 - Voted
3,030,000
1.01
30,603
So. Kitsap Schools - Voted
3,792,155
0.26
9,860
TOTAL
202,358,413
67,480,939
City of Bremerton / 909
Table 11
Computation of Legal Debt Margin
as of December 31, 2010
Total Taxable property Value 2,748,747,794
2.5% ($68,718,695) 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
41,231,217
24,950,685
3,069,314
2,090,314
27,487,478
10,755,000
53,903
72,487,113
72,487,113
15,301,532
16,786,381
72,487,113
Equals remaing debt capacity - open space park and capital facilities, voted 72,487,113
110 /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.
Ratio of Debt
Total
Total
Service To General
Fiscal
Debt
General
Expenditures
Year
Principal
Interest
Service
Expenditures
Percent
2001
370,000
222,556
592,556
34,769,895
1.70
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
Includes general, special revenue and debt service funds; does not include Golf Course Bonds.
*Includes $9,315,000 of refunded debt.
City of Bremerton / 111
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
2001
15,698,664
8,562,359
7,136,305
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
* Net of depreciation, amortization and City taxes.
Current
Current
Coverage
Principal
Interest
Total
Ratio
1,830,000
878,300
2,708,300
2.63
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
* Net of depreciation, amortization and City taxes.
112 / 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
2001 37,260
1,145,431
30,742
6,001
16,744
6.0
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
--
--
4,855
17,273
7.3
* 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
Employer
Naval Base Kitsap (Bremerton)*
Puget Sound Naval Shipyard
Harrison Medical Center
Bremerton School District
Olympic College
City of Bremerton
Kitsap Credit Union
Kitsap Transit
Haselwood Auto Group
Group Health Co -Op
Skookum
Safe Boats International
Naval Station Bremerton*
Naval Supply Center*
Naval Hospital*
Belmont Terrace/Ridgemont Terrace
Subtotal of Ten Largest Employers
All Other Employers
Total Bremerton Employment
*Does not included active duty military
* *Full and part-time employees are tracked
Source: Kitsap Economic Development Alliance
Table 15
Top Ten Principle Employers
Current Year and Ten Years Ago
Type of Business
Government
Government
Healthcare
Public Education
Public Education
Government
Banking
Transportation
Auto Sales
Healthcare
Government Contracting
Manufacturing
Government
Government
Healthcare
Healthcare
Total
Employees **
Rank
% of Total City
Employment
14,900
1
40.01%
9,650
2
25.91%
2,697
3
7.24%
690
4
1.85%
370
5
0.99%
357
6
0.96%
309
7
0.83%
294
8
0.79%
294
8
0.79%
294
8
0.79%
289
9
0.78%
260
10
0.70%
Total % of Total City
Employees ** Rank Employment
2010
2001
7,711
1
39.45%
1,275
2
6.52%
752
4
3.85%
375
6
1.92%
320
8
1.64%
Q
0
w
m
m
0
w
936
3
4.79%
619
5
3.17%
320
7
1.64%
188
9
0.96%
30,404
81.64% 12,496
63.93%
6,837
18.36% 7,050
36.07%
37,241
100.00% 19,546
100.00%
Q
0
w
m
m
0
w
114 / Statistical Section
Table 16
Miscellaneous Statistics
DATE OF INCORPORATION
October 14, 1901
FORM OF GOVERNMENT
Council - Mayor
Type of Government
Home -Rule Charter
Demographics in 2010
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 - 2010
Priority 1 Response Time (minutes)
Police Protection
Number of Police Officers
Calls for Service - 2010
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
Number of Business Licenses Issued in City Limits
26.9 Square Miles
356.13
57
3
6,788
5:17
60
56,512
3:38
3:38
34
709.50
1
1
1
1
1
5783
2467
City of Bremerton / 115
Table 16 Continued
Water Utility Services
9,404
Residential Accounts
16,215
Commercial Accounts
1,762
Storage Capacity (gallons)
33,240,000
5r t�
Casad Dam Capacity (gallons)
1.4 bil
Average Daily Demand (millions per gallon -MG)
6.8
i
Reservoirs
16
Watershed Land (square miles)
12.96
Sources:
32
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
9,404
Commercial Sewer Accounts
915
Miles of Main
141
Miles of Force Main
31
Sewage Pump Stations
39
Grinder Pump Stations
50
Westside Wastewater Treatment Plant:
Average Annual Flow - MGD
6.8
Hydraulic Peak Capacity - MGD
32
Permitted Average
4.9
Eastside CSO Plant
Peak Treatment Capacity - MGD
15
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 9,811
Commercial Accounts 1,007
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.
116 / Statistical Section
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)
1.4 mil
Biosolids applied (cubic yards)
3,270
Reforestation (seedlings planted)
29,500
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 (2010)
Kitsap Transit (20 10)
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
2,516,029
444,296
2,877,935
121,040