HomeMy WebLinkAbout2013 Annual Report
City of Bremerton, Washington
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the period January 1, 2013 thru December 31, 2013
City of Bremerton, Washington
Annual Financial Report
For the Fiscal Year ended
December 31, 2013
Prepared by the Finance Department
City of Bremerton
th
345 6 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, 2013
Table of Contents
Page
Introductory Section
Letter of Transmittal ................................................................................................................................................................
1
Organization Chart ..................................................................................................................................................................
4
List of Elected and Appointed Officials .................................................................................................................................. 5
Financial Section
Independent Auditors Report ........................................................................................................................................... 7
Managements Discussion and Analysis ......................................................................................................................... 10
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ............................................................................................................................................... 23
Statement of Activities.......................................................................................................................................................24
Fund Financial Statements:
Balance Sheet Governmental Funds............................................................................................................................. 25
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds ............................................................................................................................................... 26
Reconciliation of the Statement of Revenues, Expenditures, and Changes
In Fund Balances of Governmental Funds to the Statement of Activities ............................................................... 27
Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual
General Fund ........................................................................................................................................................... 28
Parking Fund ........................................................................................................................................................... 29
Statement of Net Position Proprietary Funds .............................................................................................................. 30
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds .......................................... 31
Statement of Cash Flows Proprietary Funds ................................................................................................................ 32
Statement of Fiduciary Net Position Fiduciary Funds .................................................................................................. 34
Notes to the Financial Statements ........................................................................................................................................... 35
Required Supplementary Information:
LEOFF I Pension Benefits .............................................................................................................................................. 67
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet Nonmajor Governmental Funds ................................................................................................. 69
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds ........... 72
Schedules of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual:
Special Revenue Funds ................................................................................................................................................... 75
Debt Service Funds ......................................................................................................................................................... 88
Capital Projects Funds .................................................................................................................................................... 92
Combining Statement of Net Position Proprietary Funds ................................................................................................... 99
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds ............................ 100
Combining Statement of Cash Flows Proprietary Funds .................................................................................................. 101
Combining Statement of Net Position Internal Service Funds ......................................................................................... 103
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds ..................... 104
Combining Statement of Cash Flows Internal Service Funds .......................................................................................... 105
Combining Statement of Fiduciary Net Position-Agency Funds ......................................................................................... 107
Table of Contents
Page
Statistical Section
Financial Trends:
Table 1 Net Position by Component ................................................................................................................................. 109
Table 2 Changes in Net Position ...................................................................................................................................... 110
Table 3 Fund Balance of Government Funds ................................................................................................................... 112
Table 4 Changes in Fund Balances of Government Funds ............................................................................................... 113
Revenue Capacity:
Table 5 Assessed and Estimated Actual Value of Taxable Property ................................................................................ 115
Table 6 Property Tax Rates Direct and Overlapping Governments Last 10 Fiscal Years ................................................ 116
Table 7 Principal Property Taxpayers .............................................................................................................................. 117
Table 8 - Property Tax Levies and Collections ................................................................................................................... 118
Debt Capacity
Table 9 Ratio of Net General Bonded Debt ...................................................................................................................... 119
Table 10 Computation of Direct and Overlapping Debt ................................................................................................... 120
Table 11 Computation of Legal Debt Margin .................................................................................................................. 121
Table 12 Water and Sewer Revenue Bond Coverage ....................................................................................................... 122
Demographic and Economic Information:
Table 13 Demographic Statistics ...................................................................................................................................... 123
Table 14 Miscellaneous Statistics ..................................................................................................................................... 124
Table 15 Local Revitalization Financing .......................................................................................................................... 128
Department of Financial Services
345 6th Street Suite 600,
Bremerton, WA 98337
Telephone: 360-473-5296
Fax: 360-473-5200
Cathy.Johnson@ci.bremerton.wa.us
____________________________________________________Cathy Johnson
, Director of Financial Services
July 30, 2014
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, 2013. 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 Managements 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 Citys 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 Auditors
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 first class charter city under a Mayor/Council form of government. In 2013, the City
Council was comprised of nine members, elected by district by the citizens of the City, each serving a
four-year term. Effective January 1, 2014, the number of Council Districts was reduced to seven with
initial terms of two and four years. 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 Council approval.
City of Bremerton / 2
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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,
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 2013 population of
37,850 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 Citys
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/Factors Affecting the Citys Financial Condition
Information presented in the financial statements is best considered in the broader context of the
economic environment in Bremerton and the surrounding area.
Local Economy
(Source: Employment Security Dept., Bureau of Economic Analysis; US Census
Bureau)
As stated above, the City of Bremerton has been home to Puget Sound Naval Shipyard (PSNS) for over a
century. PSNS employs over 10,900 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 2442 employees and Olympic College with 1206 employees.
Kitsap Countys business climate remains as healthy as our environment thanks to the presence of major
Naval installations, including the PSNS, Naval Base Kitsap, Naval Undersea Warfare Center Division
Keyport, and Naval Hospital Bremerton. Our county has a skilled workforce of approximately 125,000.
Local jobs are found in approximately 119,000 non-agricultural positions and in thousands of other sole
proprietorships. About ½ of these non-agricultural jobs are military, federal civil service, and private
sector defense contractor jobs that directly or indirectly support our major Naval installations.
For 2013, the countys average unemployment rate was 6.9 percent. In comparison, the State of
Washingtons unemployment rate for the same period was 7.0 percent. Per Capita income for the
Bremerton-Silverdale MSA is also improving. 2012 per capita income was $44,547, a slight increase
over 2011s figure of $43,117. The median household income projections for Kitsap County also
continue to improve. The 2013 projection for Kitsap County is $58,418 as compared to $57,155 for 2012,
and as compared to the 2013 Washington State projected median household income figure of $58,577.
The naval and Department of Defense installations in the county have a significant impact on the Citys
economy. The naval presence has served the City well in the past and is expected to continue to help it
recover from the effects of the current recession. In addition, it has been the Citys policy to encourage
and facilitate diversification in the regions employment base. The City has completed its master plan for
the South Kitsap Industrial Area, which encourages manufacturing and industrial development.
Relevant Financial Policies
Financial and Budget Policy Statements are presented on pages 163-166 of the 2014 Annual Budget,
which may be found on the Citys 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
Citys Comprehensive Plan which was adopted in December 2004 and updated annually. The
Comprehensive Plan represents the expressed vision of the City and related expectations on the nature of
growth and services to be provided. The Financial and Budget Policy statements define what constitutes
a good outcome for the City in regards to financial planning and decisions and the boundaries or
demonstrated performance deemed necessary to achieve those objectives.
Revenue Limitations
State law allows the City to levy a property tax rate of up to $3.825 per thousand of assessed property
value annually (Bremerton is eligible for the additional $0.225 for firemans 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 2013, the City levied at the statutory limitation of $3.26 per thousand
of assessed value, inclusive of the $0.50 per thousand emergency management services levy.
Major Initiatives
The City of Bremerton, in partnership with other public entities, provided significant public sector
stimulus investment to the Citys revitalization program by infusing public dollars into key infrastructure
improvements. Over the past five years, these projects have included a newly expanded Conference
Center, two hotels, two condominium complexes, an expanded marina, Harborside Park and Plaza, as
well as ferry terminal traffic tunnel. The City continued this investment in its revitalization program with
the completion of a new parking garage downtown. This new garage led to the development of a multi-
plex cinema (opened June 2012) and commitment from private development for a new 71 unit residential
apartment complex to commence construction during 2014. Other upcoming significant road and
bike/pedestrian improvement projects include Lower Wheaton Way and Washington Avenue Connector.
Acknowledgments
The preparation of this report could not have been accomplished without the efforts of the staff in the
Department of Financial Services. We would like to express our appreciation to all those who assisted
and contributed to the preparation. We would like to specifically thank Ashley Tuttle, Accountant
Financial Analyst, 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 Citys governmental operations.
Respectfully submitted,
Patty Lent Cathy Johnson
Mayor Director of Financial Services
City of Bremerton / 4
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Directory of Officials
2013
Elected Officials:
Mayor ................................................................................................................................. Patty Lent
District #1 Council Member ........................................................................................ Jim McDonald
District #2 Council Member ........................................................................................... Leslie Daugs
District #3 Council Member ........................................................................................ Adam Brockus
District #4 Council Member ........................................................................................... Roy Runyon
District #5 Council Member ......................................................................................... Greg Wheeler
District #6 Council Member ........................................................................................ Faye Flemister
District #7 Council Member .......................................................................................... Carol Arends
District #8 Council Member .......................................................................................... Eric Younger
District #9 Council Member ......................................................................................... Nick Wofford
Judge, Municipal Court ................................................................................................. James Docter
Appointed Officials:
City Attorney ............................................................................................................. Roger Lubovich
Director, Public Works and Utilities ............................................................................... Chal Martin
Fire Chief .............................................................................................................................. Al Duke
Police Chief ................................................................................................................... Craig Rogers
Interim Director of Financial Services .......................................................................... Becky Hasart
Director of Community Development ....................................................................... Andrea Spencer
Director of Parks and Recreation ............................................................................. Wyn Birkenthal
City Auditor .................................................................................................................... Gary Nystul
City of Bremerton / 6
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Managements 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 Citys financial activities, focus on significant financial issues, and highlight significant
changes in the Citys financial position for the fiscal year ended December 31, 2013. 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 2013, the assets of the City exceeded its liabilities by $262.4 million. The net investment
·
in capital assets accounts for over 85.9 percent of this amount ($225.4 million). Net position restricted primarily
for construction projects, debt service, Community Development Block Grant (CDBG) programs, tourism
promotion, workers compensation liability and public safety account for another 2.2 percent of this amount ($5.9
million). The remaining net assets of $31.1 million may be used to meet the Citys ongoing obligations to citizens
and creditors.
The Citys net position increased by $5.6 million (2.1%) during the fiscal year. The governmental net position
·
increased by $2.6 million (2.8%) from the amount reported in 2012. Business-type net position increased by $3.0
million (1.7%). The Business-type increase included net income before contributions and transfers for the Water
utility of $1,295,459, Wastewater utility of $3,381,128, other non-major proprietary funds of $737,274 and Golf
Course $(156,724).
As of December 31, 2013, the Citys governmental funds reported a combined fund balance of $10.3 million, an
·
increase of 11.2% from the prior year end. The fund balance of the General Fund increased by $266,618 while
the remaining non-major governmental funds had a fund balance increase of $771.520. The overall increase of
$1,038,138 is primarily attributable to a transfer of $1.0 million to the governmental funds from the citys utilities
for utility improvements being carried out in conjunction with a road improvement project. $3.1 million of the
combined ending governmental fund balances is restricted for specific purposes by external parties or enabling
legislation or otherwise not available for expenditure. Of the remaining $7.2 million of unrestricted fund balance
$2.4 million has been committed or assigned for specific purposes while $4.8 million is unassigned and available
to the City for future appropriation.
At the end of 2013, the unassigned fund balance of the General Fund was $4.8 million or approximately 15.3
·
percent of total General Fund expenditures of $31.3 million. The General Funds unassigned fund balance
increased by $775,786 from the prior years amount of $4.0 million, a 19.3 percent increase. This increase over
2012 is primarily due to a reduction in assigned fund balances from 2012. The 2012 assigned fund balance
included $545,168 of fund balance obligated by the passage of the 2013 budget. The Government Accounting
Standards Board has subsequently clarified that this practice does not meet the criteria for assigned balances,
therefore this practice has been discontinued.
The Citys total outstanding debt decreased by $4.5 million (7.4%) during the current fiscal year to $60.6 million.
·
General obligation debt decreased by $1.5 million and revenue debt decreased by $3.0 million.
The Citys net investment in Capital Assets increased $3.6 million (1.2%) in 2013. Total Capital assets from
·
governmental activities increased $.1 million or .7%. Total Capital assets from business type activities increased
$2.8 million or 1.6%. These increases are primarily due to Pacific Avenue road reconstruction project ($2.3
million) and $7.2 million in for the construction of water, wastewater and stormwater capital improvements
identified within the Citys 2013 capital improvement plan. In addition, roads, lighting and utility infrastructure
in the Bayside development, valued at $1.8 million, were conveyed to the City by the developers of the plat.
Overview of the Financial Statements
The Citys 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 managements discussion and analysis is
intended to introduce and explain the basic financial statements.
Government-wide Financial Statements
The government-wide financial statements are designed to give the reader a picture of the financial condition and
activities of the City as a whole. This broad overview is similar to the financial reporting of private-sector businesses.
The government-wide financial statements have separate columns for governmental activities and business-type
activities. Governmental activities of the City include general government (finance, executive, human resources),
community development, public safety (police and fire), utilities and environment, transportation, economic
environment, and culture and recreation. The Citys business-type activities are limited to the Citys municipal golf
course and water, wastewater and non-major utility activities. Governmental activities are primarily supported by
taxes, charges for services, and grants while business-type activities are self-supporting through user fees and
charges.
The presents information on all of the Citys assets and deferred outflows of resources and
statement of net position
liabilities and deferred inflows of resources, highlighting the difference between the two as net position. This
statement is similar to the balance sheet of a private sector business. Over time, increases or decreases in net position
may be one indicator of improvement or deterioration in the Citys overall financial health.
The presents information designed to show how the Citys net position changed during the
statement of activities
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 Citys 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 Citys funds are divided into three
categories: ,, and .
governmental funds proprietary fundsfiduciary funds
are used to account for essentially the same functions as are reported as governmental activities
Governmental funds
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 Citys 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 Citys current year financing decisions. To assist in this comparison, reconciliations between the
City of Bremerton / 12
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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-five (25) individual governmental funds in 2013. The Citys General fund and Parking
System fund are 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 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 for major governmental funds is presented with the basic financial statements. Budgetary
comparison statements for other governmental funds are included with the combining statements.
are used by governments to account for their business-type activities. Business-type activities
Proprietary funds
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: and . Enterprise funds are used to
enterprise fundsinternal service funds
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 Citys five (5) enterprise funds are used to report the same functions presented as business-type activities in the
government-wide statements with the fund statements providing more detail than is reported in the government-wide
statements. The enterprise fund statements provide separate information for the Citys municipal golf course, water
and wastewater utilities. The remaining enterprise funds are combined into a single column labeled Non-major
Enterprise Funds. Information for each of the non-major enterprise funds is provided in the combining statement in
this report.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the Citys
various functions. The City uses internal service funds to account for maintenance and acquisition of its fleet of
vehicles, insurance premiums and claims, unemployment insurance obligations, termination benefits as well as
information technology services. Internal service funds benefit both governmental and business-type activities and are
allocated accordingly in the government-wide statement of activities.
account for assets held by the City in a trustee capacity or as an agent for individuals, private
Fiduciary funds
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 Citys activities.
The City has one type of fiduciary fund an agency fund. are custodial in nature and do not include
Agency funds
revenues and expenses as they do not measure the results of operations.
Government-wide Financial Analysis
Statement of net position
The statement of net position can serve as a useful indicator of the Citys financial position. The Citys net position
at December 31, 2013 total $262.4 million. Following is a condensed version of the government-wide statement of
net position. The City presents its financial statements in compliance with Governmental Accounting Standards
Board Statement No. 34 (GASB 34),
Basic Financial Statements and Managements Discussion and Analysis for
. Two years of financial information in the GASB 34 format are presented.
State and Local Governments
Net Position
Governmental ActivitiesTotal
Amounts in 000'sBusiness-Type Activities
20132012Difference20132012Difference20132012Difference
Current Assets$ 16,061$ 17,450$ (1,389)$ 22,808$ 25,203$ ( 2,395)$ 38,869$ 42,653$ (3,784)
Restricted Assets 3,191 4 722719 1,747 1,739 8 4 ,9382,211 2 ,727
Capital Assets 111,045 110,243802 174,478 171,700 2 ,778 2 85,523281,943 3 ,580
Other Noncurrent Assets 1,014 1,590(576) 6 91 1,021 (330) 1 ,7052,611(906)
Total assets 131,311 129,755 1,556 199,724 199,663 6 1 331,035 329,418 1 ,617
Deferred outflows of resources 1,120 - 1,120 1 79 - 1 79 1,299 - 1 ,299
Current Liabilities 2,749 13,508 (10,759) 1,566 1,462 1 04 4 ,31514,970(10,655)
Payable from Restricted Assets - - - 8 1 - 81 8 10 81
Noncurrent Liabilities 35,764 24,955 10,809 29,772 32,670 (2,898) 6 5,53657,625 7 ,911
Total liabilities 38,513 38,463 50 31,419 34,132 (2,713) 69,932 72,595 (2,663)
Deferred inflows of resources 1 5 - 15 - - - 1 5 - 1 5
Net position
Net Investment in Capital Assets 80,093 78,295 1,798 145,318 139,494 5 ,824 2 25,411217,789 7 ,622
Restricted 4,105 4,201 (96) 1,779 1,617 1 62 5 ,8845,818 66
Unrestricted 9,705 8,796 909 21,387 24,420 (3,033) 3 1,09233,216(2,124)
Total Net Position$ 93,903$ 91,292$ 2,611$ 168,484$ 165,531$ 2 ,953$ 262,387$ 256,823$ 5 ,564
The largest component of the Citys net position, $225.4 million (or 85.9%), 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 Citys 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 position consist of amounts legally or otherwise externally restricted for debt service and other
programs. Of the $4.1 million of governmental restrictions, $2.1 million or 50.1% is restricted for the construction of
capital assets. $2.0 million are special revenues restricted primarily for use in the Community Development Block
Grant program (53.7%), for public safety services (33%), tourism promotion (8.4%) and workers compensation
liability (4.9%). 0.6% ($25,512) is restricted for debt service on outstanding debt. $1.8 million of business-type
restrictions are reserves required for debt service payments and asset replacement. A total of $21.4 million represents
the unrestricted net position of the Citys business-type activities and may only be spent on golf course operations,
water, wastewater and other utility activities. Maintenance of utility delivery systems (water lines, pump station,
wells), storm drain flushing, water meter reading, and capital construction projects, such as well rehabilitation, are
examples of utility activities. Other functions of the City may access the remaining $9.7 million to meet ongoing
obligations to citizens and creditors. Examples of other City obligations which this remaining amount 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 position for the
government as a whole, as well as for the separate governmental and business-type activities.
Changes in net position
The Changes in Net Position table illustrates the increase or decrease in net position of the City resulting from its
operating activities. The Citys overall financial position improved in 2013 with net position increasing
approximately $6.0 million before prior period adjustments. The net position of governmental activities increased by
$2.9 million and the net position of business-type activities increased by $3.1 million.
Following is a condensed version of the Citys changes in net position. The table shows the revenues, expenses, and
related changes in net position in tabular form for the governmental activities separate from the business-type
City of Bremerton / 14
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activities. The graphs that follow compare program revenues to program expenses and illustrate the revenues by
source separately for the governmental and business-type activities.
Changes in Net Position
Amounts in 000'sGovernmental ActivitiesBusiness-Type ActivitiesTotal
20132012Difference20132012Difference20132012Difference
Revenues
Program revenues
Charges for services$ 7,554$ 8,148$ (594)$ 29,197$ 26,808$ 2,389$ 36,751$ 34,956$ 1,795
Operating grants and contributions 756 678 78 392 3 389 1,148 681 467
Capital grants and contributions 3,752 6,847 (3,095) 3,878 9,254 (5,376) 7,630 16,101 (8,471)
General revenues -
Property taxes 8,512 8,579 (67) - - - 8,512 8,579 (67)
Sales taxes 7,679 7,296 383 30 16 14 7,709 7,312 397
Business taxes 2,665 3,257 (592) 4 1 3 2,669 3,258 (589)
Utility taxes 4,416 4,407 9 - - - 4,416 4,407 9
Other taxes 3,147 2,679 468 - - - 3,147 2,679 468
Other general revenues (721) 488 (1,209) 475 683 (208) (246) 1,171 (1,417)
Total revenues$ 37,760$ 42,379$ (4,619)$ 33,976$ 36,765$ (2,789)$ 71,736$ 79,144$ (7,408)
Expenses
Governmental activities
General government 3,353 2,336 1,017 - - 3,353 2,336 1,017
Public safety 23,337 23,177 160 - - 23,337 23,177 160
Utilities and environment 220 220 - - - 220 220 -
Transportation 4,459 4,207 252 - - 4,459 4,207 252
Economic Enivironment 1,814 1,865 (51) - - 1,814 1,865 (51)
Culture and recreation 5,992 6,061 (69) - - 5,992 6,061 (69)
Interest on long-term debt 1,222 1,172 50 - - 1,222 1,172 50
Business-type activities
Water - - 9,277 8,923 354 9,277 8,923 354
Wastewater - - 9,946 9,944 2 9,946 9,944 2
Golf course - - 4,008 2,271 1,737 4,008 2,271 1,737
Other proprietary funds - - 2,152 2,282 (130) 2,152 2,282 (130)
Total expenses$ 40,397$ 39,038$ 1,359$ 25,383$ 23,420$ 1,963$ 65,780$ 62,458$ 3,322
Excess of revenues over expenses (2,637) 3,341 (5,978) 8,593 13,345 (4,752) 5,956 16,686 (10,730)
Transfers 5,492 4,462 1,030 (5,492) (4,462) (1,030) - - -
Change in net position 2,855 7,803 (4,948) 3,101 8,883 (5,782) 5,956 16,686 (10,730)
Net position - beginning 91,292 83,489 7,803 165,531 156,857 8,674 256,823 240,346 16,477
Prior period adjustment (244) - (244) (148) (209) 61 (392) (209) (183)
Net position - ending$ 93,903$ 91,292$ 2,611$ 168,484$ 165,531$ 2,953$ 262,387$ 256,823$ 5,564
accounted for an increase of $2.6 million of the total change in net position of $5.6 million.
Governmental activities
Significant elements of the increase are as follows:
Transfers continued to play a significant role in the increase to net position in 2013. Transfers from Business-
type activities increased $1,030,000 in 2013. A transfer of $1,050,000 from the Water and Wastewater funds to
the Pacific Avenue Construction fund in support of utility work performed during the road reconstruction project
was the major item contributing to the increase.
Expenditures increased by 3.5% in 2013 compared to 2012. Small changes occurred in many functional areas, as
a significant effort was made to match available resources. The most notable exception was an increase of $1.0M
in expenditures for General Government activities. This is directly related to a decrease in net income from
operations of the Risk Management internal service fund as compared to 2012. The net income from 2013
activities was $667,235 or 64.6% less than the net income from 2012 due to decreased charges to participating
funds in 2013 as a result of higher than required reserves at the end of 2012. Expenditure increases in Public
Safety, Transportation and interest expense activities ($462,000) were offset by small decreases in Economic
Environment and Culture and Recreation activities ($120,000).
Total revenue from governmental activities in 2013 decreased by $4.6 million from 2012. Program revenues
accounted for the largest portion of this decrease, $4.3 million or 83%. Within program revenue, Capital Grants
and Contributions decreased $3.1 million or 45%. Charges for Services also decreased 7.2% from 2012 levels.
A major component of the decrease of $594,000 was a 29.7% ($257,317) decrease in photo enforcement
penalties. The remaining decrease in revenue for governmental activities is attributable to general revenues. Tax
revenues that support ongoing operations increased by $.2 million in 2013 from the 2012 level. Sales taxes
increased $0.4 million or 5.2%. Business taxes decreased by $0.6 million or 0.18%. Property, utility, and other
taxes increased $0.4 million or 2.6% with the largest increase being other general taxes ($.5 million). Other
general revenues which include interest earnings, gains and losses on disposal of assets, and miscellaneous
income, decreased by $14.2 million in 2013 from the 2012 level, or 247%. The largest component of this
decrease ($.9 million) was related to a loss on the sale of property previously acquired as part of a the SR303 road
construction project.
Governmental activities were reduced by $244,420 in 2013 by a prior period adjustment, a result of the
implementation of GASB Statement No. 65. Implemented in 2013, the statement changed the recognition of debt
issuance costs as an expense of the period in which the costs are incurred. Implementation guidance requires that
the cumulative effect of applying this Statement should be reported as a restatement of beginning net position or
fund balance for the earliest period reported.
City of Bremerton / 16
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increased Citys net position by $3.1 million, before prior period adjustments, accounting for
Business-type activities
approximately fifty three percent of the total growth in the governments net position.
A key element of this increase is in capital grants and contributions which continued to be a significant
·
revenue source in 2013. Revenue of $3.9 million from this source decreased $5.4 million or 58% in 2013
from 2012 but was still a significant component of the increase. Of the $3.9 million received from this
contribution in 2013, 40% was from developer contributions. The largest contribution, $1,181,378, was from
the Freestone Corporation for utility and street infrastructure at the Bayside development. 34% or $1.3
million were capital grants including the upgrade of equipment at the wastewater treatment plant, which
resulted in substantial energy savings as well as a project to retrofit existing streets with green concepts to
mitigate and treat stormwater using low impact development techniques. The remaining 26% were general
facilities fees collected for new development within the utility service area. This was a 15% increase over
fees collected in 2012.
Charges for services increased $2.39 million in 2013. This increase was largely a result of the City entering
·
into a contract with Columbia Hospitality for management of the Citys Gold Mountain Golf Course. The
contract includes the provision of food services at the golf course that were formerly not part of the citys
management contract. Increased revenues at the golf course were $1.9 million or 97% higher than 2012.
Expenditures for Business Type activities increased $2.0 million in 2013 over 2012. $1.7 million of this
·
increase was attributable to additional costs associated with the provision of food services in the management
contract for the golf course. The remainder was mainly general cost increases for fuel, utilities and supplies.
Transfers to Governmental Activities increased by $1,030,000 in 2013. This increase was attributable to
·
transfers of $1,050,000 from the Water and Wastewater utilities to the Pacific Avenue Construction to fund
utility improvements associated with the street restoration project.
Business-Type activities were reduced by $148,347 in 2013 by a prior period adjustment, a result of the
·
implementation of GASB Statement No. 65. Implemented in 2013, the statement changed the recognition of
debt issuance costs as an expense of the period in which the costs are incurred. Implementation guidance
requires that the cumulative effect of applying this Statement should be reported as a restatement of
beginning net position or fund balance for the earliest period reported.
City of Bremerton / 18
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City of Bremerton / 20
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Financial Analysis of the Citys 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 2013, the fund balance of the General Fund was $4.9 million. As a measure of the funds
liquidity, the 2013 ending fund balance is 15.6% of the funds 2013 expenditures, an increase of 2.3% over 2012s
13.3%.
The General Fund balance increased in 2013 by $.27 million. Revenues decreased from $32 million in 2012 to $27.9
million in 2013. Expenditures decreased from $34.5 million to $31.3 million during the same period. The decrease in
both revenues and expenditures is largely attributable to the issuance of $5.2 million in debt in 2012. Expenditures
exceeded revenues in the General Fund by $3.3 million in 2013 but were offset by net transfers and other financing
sources of $3.6 million.
Proprietary funds
The Citys 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 2013 capital improvement
program there were no significant transactions pertaining to the proprietary funds.
General Fund Budget Variations
The General Fund collected revenues at 99.4% of the amended amount budgeted or $.19 million less than budgeted.
Expenditures for 2013 were 94% of the amended budget resulting in actual expenditures being $2 million less than
the budgeted amount. The negative revenue budget variance is substantially attributable to a decrease in anticipated
charges for services. The positive expenditure budget variance is largely attributable to personnel cost savings from
attrition and lower pension expenditures than anticipated in the Police, Engineering and Police & Fire Pension
departments.
The General Fund budget was balanced in 2013. The original budget provided for a decrease to the fund balance of
$531.589. The budget was amended two times during 2013. The final amended budget provided for a decrease to
fund balance of $1,386,646. At the conclusion of 2013, the General Fund increased fund balance by $1.8 million.
Capital Asset and Debt Administration
Capital Assets
The Citys investment in capital assets for its governmental and business-type activities as of December 31, 2013,
amounts to $285.5 million (net of accumulated depreciation). This investment in capital assets includes land,
buildings, improvements, machinery and equipment, construction in progress, utility transmission/distribution
systems, and roads.
The major capital asset additions for governmental activities during 2013 was the reconstruction of Pacific Avenue
and the addition of roads, sidewalks and lighting in the Bayside development, conveyed to the City by the developers
of the plat.
The major capital assets changes for business-type activities included the construction of wastewater and water
capital improvement projects identified within the Citys 2013 capital improvement plan.
Capital Assets (net of depreciation)
Amounts in 000'sGovernmental ActivitiesBusiness-Type ActivitiesTotal
20132012Difference20132012Difference20132012Difference
Land$ 20,402$ 17,434$ 2,968$ 9,117$ 9,107$ 10$ 29,519$ 26,541$ 2,978
Buildings 51,728 46,036 5,692 34,015 34,557 (542) 85,743 80,593 5,150
Improvements/Infrastructure 31,555 26,619 4,936 95,798 92,794 3,004 127,353 119,413 7,940
Machinery and Equipment 3,062 2,987 75 32,535 30,948 1,587 35,597 33,935 1,662
Construction in Progress 4,298 17,167 (12,869) 3,013 4,294 (1,281) 7,311 21,461 ( 14,150)
TOTAL$ 111,045$ 110,243$ 802$ 174,478$ 1 71,700$ 2,778$ 285,523$ 281,943$ 3,580
Additional information on the Citys capital assets can be found in Note 5.
Long-term debt
For governmental activities in 2013, the City replaced the outstanding limited tax general obligation note, 2011
associated with the Citys parking system, in the amount of $8,910,000 which matured on July 29, 2013 with
$8,590,000 in limited tax general obligation bonds (non-taxable). New debt for business-type activities in 2013
consisted of $5,200,000 in limited tax general obligation bonds (taxable) to refund the Citys outstanding limited tax
general obligation bonds, 2009, in the amount of $5,058,000. These bonds are associated with the Citys Gold
Mountain Golf Complex. The refunding resulted in an economic gain of $420,473. In addition, $53,883 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 2013 totaled $18,325,077.
Outstanding Debt - General Obligation and Revenue Bonds
Amounts in 000'sGovernmental ActivitiesBusiness-Type ActivitiesTotal
20132012Difference20132012Difference20132012Difference
General Obligation Bonds$ 3 1,240$ 32,675$ ( 1,435)$ 4,985$ 5,058$ ( 73)$ 36,225$ 3 7,733$ ( 1,508)
General Obligation Notes 3 5 35 - - - - 35 35 -
Revenue Bonds - - - 3,210 3,575 (365) 3 ,210 3,575 (365)
Revenue Loans - - - 21,143 23,777 ( 2,634) 21,143 2 3,777 ( 2,634)
TOTAL$ 31,275$ 32,710$ ( 1,435)$ 29,338$ 32,410$ ( 3,072)$ 60,613$ 6 5,120$ ( 4,507)
Additional Information on the Citys long-term debt can be found in Note 10 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 Citys 2014 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 slightly due to the major effort to rehabilitate Bremertons downtown core and attract new investors to
the community. In addition, the national, regional and local economic conditions began to show improvement during
2013.
The State of Washington is continuing to face considerable budget challenges; however, the states budget challenges
have had limited effect on Bremertons 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
City of Bremerton / 22
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compete very well for certain projects. Mid- to long-term, Bremerton must increase its local revenue to address
transportation needs. In an effort to do so, the Bremerton City Council, acting as the Bremerton Transportation
Benefit District Board, enacted a $20 per vehicle car tab fee to be used solely for transportation projects. This fee
was adopted in December 2011. At 12/31/13 $651,034 in fees had been collected. The TBD Board has adopted a
work plan that includes various repairs on substandard city streets as well as contribution of matching funds toward a
major road restoration project in the Manette neighborhood.
Bremerton continues to move forward with its 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 2013; the Harborside
Conference Center, Hotel and Plaza, Bremerton Ice Arena, Kitsap Credit Union Headquarters/Office building,
downtown Naval Parking Garage, waterfront condominiums, Harborside Fountain Park and Naval Museum,
downtown police station, Norm Dicks Government Center building, downtown fire station, downtown marina
facility, the Downtown Pedestrian Bremerton Transit Center Access, PSNS Memorial Plaza, Fairfield Inn & Suites,
downtown Municipal Courthouse, First Street Plaza, the revitalization of Lions Park, construction of a parking garage
and retail commercial pads at Burwell and Park Ave, a new multi-screen movie theater in association with the newly
developed retail commercial pads and the renovation of Kiwanis Park. Highmark Homes LLC of Tukwila has
purchased East Park, a 50-acre hillside site in East Bremerton for development of as many as 437 housing units. If
built in its entirety, the new East Park will be among the largest neighborhoods constructed in Bremerton. The entire
project would be constructed in six phases, to be built out over several years. The first phase of this project is
underway.
Projects that are in the various stages of completion include; Bay Vista mixed use redevelopment project, a multi-unit
apartment complex to be placed on top of the Park Plaza parking facility in the Harborside district, the redevelopment
of Evergreen Rotary Park to add an inclusive playground that will provide recreational opportunities for all children
regardless of ability and the reconstruction of a portion of Lower Wheaton Way that will provide a vital link to the
vision of a bridge to bridge urban trail. In addition there has been an increase in activity related to residential
development and several projects are in various stages of the financing and permitting process.
These projects occurring throughout Bremerton are a product of both public and private investment. Economic
development is a critical component to 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 Bremertons 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.
In May 2012, the City began a yearlong comprehensive rate analysis on its Water, Wastewater, and Stormwater
utilities, to include an analysis of its revenue and capital requirements for a minimum six year horizon. On April 3,
2013, the City completed and adopted this analysis on its three utilities, raising rates to adequately fund the operations
and maintenance, capital, and the anticipated debt service needs for the three utilities over the next six years. This
adopted analysis anticipates the issuance of up to a maximum of $35 million in revenue bonds. The rate increases
recommended in the analysis included the related debt service on these bonds.
Requests for information
is financial report is designed to provide a general overview of the Citys finances for readers with an interest in
Th
municipal finances. Questions concerning any of the information provided in this report, or requests for additional
information, may be addressed to the Director of Financial Services, City of Bremerton, 345 Sixth Street, Suite 600,
Bremerton, WA 98337-1873.
Statement of Net Position
December 31, 2013
Primary Government
GovernmentalBusiness-Type
ActivitiesActivities
Total
Assets
Current assets:
Cash & Cash Equivalents$ 4,854,333$ 7,242,482$ 12,096,815
Investments 5,393,139 8,510,254 13,903,393
Receivables 4,644,971 5,244,309 9,889,280
Internal balances (239,586) 239,586 -
Due from other governments 915,388 361,029 1,276,417
Inventories 114,729 1,182,284 1,297,013
Prepayments 378,276 27,938 406,214
Restricted assets:
Cash & Cash Equivalents 1,125,819 - 1,125,819
Investments 1,834,352 1,428,425 3,262,777
Receivables 74,362 318,231 392,593
Due from other governments 156,189 - 156,189
Notes and contracts receivable:
Due within one year 46,000 51,707 97,707
Due in more than one year862,919 416,284 1,279,203
Capital assets net of depreciation111,045,108 174,478,105 285,523,213
Other assets 105,296 223,052 328,348
Total assets$ 131,311,295$ 199,723,686$ 331,034,981
Deferred outflows of resources$ 1,119,825$ 179,187$ 1,299,012
Liabilities
Accounts payable and other current liabilities$ 2,095,443$ 980,726$ 3,076,169
Employee wages payable 1,032,667 359,229 1,391,896
Other accrued liabilities 47,038 120,367 167,405
Custodial accounts - 105,984 105,984
Noncurrent liabilities
Payable from restricted assets - 81,289 81,289
Due within one year 3,567,739 3,693,438 7,261,177
Due in more than one year 31,770,071 26,077,545 57,847,616
Total liabilities$ 38,512,958$ 31,418,578$ 69,931,536
Deferred inflows of resources$ 15,000$ -$ 15,000
Net Position
Net investment in capital assets$ 80,093,194$ 145,318,353$ 225,411,547
Restricted for:
Tourism promotion & facilities 169,526 - 169,526
Community development block grant 1,085,861 - 1,085,861
Public safety 666,272 - 666,272
Debt service25,512 1,541,910 1,567,422
Workers compensation 100,000 - 100,000
Capital projects 2,057,809 237,044 2,294,853
Unrestricted 9,704,988 21,386,988 31,091,976
Total Net Position$ 93,903,162$ 168,484,295$ 262,387,457
See accompanying notes to the financial statements.
City of Bremerton / 24
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Statement of Activities
For the Year Ended December 31, 2013
Net (Expense) Revenue and
Program RevenuesChanges in Net Position
OperatingCapital
Charges forGrants andGrants andGovernmentalBusiness-Type
ServicesContributionsContributionsActivitiesActivities
ExpensesTotal
Function/Program
Governmental activities:
General government3,353,284$ $ 1,157,719$ -$ (2,195,565)-$ $ (2,195,565)-$
Public safety 23,337,415 2,221,956 87,045 - (21,028,414) - (21,028,414)
Utilities and environment 220,176 46,421 45,260 - (128,495) - (128,495)
Transportation 4,459,164 1,574,590 32,201 3,659,009 806,636 - 806,636
Economic environment 1,813,732 693,783 591,972 - (527,977) - (527,977)
Culture and recreation 5,991,865 1,859,950 - 93,049 (4,038,866) - (4,038,866)
Interest on long-term debt 1,221,700 - - - (1,221,700) - (1,221,700)
Total governmental activities40,397,336 7,554,419 756,478 3,752,058 (28,334,381) - (28,334,381)
Business-type activities
Water 9,276,527 9,830,918 - 764,585 - 1,318,976 1,318,976
Wastewater 9,945,606 13,105,172 - 2,427,968 - 5,587,534 5,587,534
Golf course 4,008,939 3,846,550 - - - (162,389) (162,389)
Other proprietary funds 2,151,899 2,414,686 392,179 684,993 - 1,339,959 1,339,959
Total business-type activities25,382,971 29,197,326 392,179 3,877,546 - 8,084,080 8,084,080
Total government$ 65,780,307$ 36,751,745$ 1,148,657$ 7,629,604$ (28,334,381)$ 8,084,080$ (20,250,301)
General Revenues
Taxes:
Property 8,511,679 - 8,511,679
Sales 7,678,855 30,041 7,708,896
Business 2,665,107 2,669,7054,598
Utility 4,415,712 - 4,415,712
Other 3,147,164 - 3,147,164
Unrestricted investment interest 120,563 133,271 253,834
Miscellaneous 54,312 351,539 405,851
Gain/(Loss) on disposal of capital assets (895,538) (10,148) (905,686)
Transfers, internal activities 5,492,002 (5,492,002) -
Total general revenues and transfers 31,189,856 (4,982,701) 26,207,155
Change in net position 3,101,3792,855,475 5,956,854
Net position-beginning 91,292,107 165,531,263 256,823,370
Prior period adjustment (244,420) (148,347) (392,767)
Net position-ending$ 93,903,162$ 168,484,295$ 262,387,457
See accompanying notes to the financial statements.
Balance Sheet
Governmental Funds
December 31, 2013
OtherTotal
GovernmentalGovernmental
Parking SystemFundsFunds
General
ASSETS
Cash and equivalents$ 2,011,158$ 113,144$ 2,433,037$ 4,557,339
Investments 2,734,918 155,265 2,384,817 5,275,000
Receivables, net 3,809,218 375,433 517,334 4,701,985
Due from other funds 479,858 - 76,711 556,569
Due from other governments 4,854 - 1,021,826 1,026,680
Inventories 24,801 - - 24,801
Other assets - - 908,919 908,919
Total assets 9,064,807 643,842 7,342,644 17,051,293
Deferred outflows of resources - - - -
Total assets and deferred outflows of resources$ 9,064,807$ 643,842$ 7,342,644$ 17,051,293
LIABILITIES, DEFERRED INFLOW of RESOURCES and
FUND BALANCES
Liabilities:
Accounts/contracts payable$ 582,303$ 40,687$ 1,098,282$ 1,721,272
Due to other funds 744,012 35,707 62,040 841,759
Employee wages payable 905,727 - 54,757 960,484
Other current liabilities 24,765 20 22,229 47,014
Unearned revenue 1,923,712 284,369 938,579 3,146,660
Total liabilities 4,180,519 360,783 2,175,887 6,717,189
Deferred inflows of resources 15,000 - - 15,000
Fund balances:
Nonspendable$ 24,801$ -$ -$ 24,801
Restricted 50,179 - 3,040,543$ 3,090,722
Committed - - 357,663$ 357,663
Assigned - 283,059 1,768,551$ 2,051,610
Unassigned 4,794,308 - -$ 4,794,308
Total fund balances 4,869,288 283,059 5,166,757 10,319,104
Total liabilities, deferred inflows of resources and fund balances$ 9,064,807$ 643,842$ 7,342,644$ 17,051,293
Amounts reported for in the statement of net position are different because:
governmental activities
Capital assets used in governmental activities are not financial resources and therefore not
reported in the funds.
111,045,108
Other long-term assets are not available to pay for current-period expenditures and therefore
are deferred in the funds. 3,304,108
Internal service funds are used by management to charge the costs of certain activities to individual
funds. These assets and liabilities are included in governmental activities in the statement of assets.2,710,713
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the funds.(33,475,871)
Net position of governmental activities$ 93,903,162
See accompanying notes to the financial statements.
City of Bremerton / 26
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Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
for the Year Ended December 31, 2013
OtherGovernmental
GeneralParking GovernmentalFunds
FundSystemsFundsTotal
REVENUES
Taxes
Property$ 7,778,225$ -$ 833,018$ 8,611,243
Sales 6,952,785 - 726,070 7,678,855
Business 7,080,819 - - 7,080,819
Other 111,758 - 1,410,852 1,522,610
Licenses and permits 992,460 - 271,863 1,264,323
Intergovernmental 897,937 - 4,699,524 5,597,461
Charges for services 2,819,369 - 525,692 3,345,061
Fines and forfeitures 1,041,637 178,340 32,183 1,252,160
Miscellaneous 270,062 1,101,787 366,008 1,737,857
Total revenues 27,945,052 1,280,127 8,865,210 38,090,389
EXPENDITURES
Current:
General government4,531,162 -302,5004,833,662
Public safety 21,105,050 - 368,499 21,473,549
Utilities and environment 28,166 - - 28,166
Transportation 496,195 784,176 1,962,321 3,242,692
Economic environment 1,214,182 - 402,351 1,616,533
Mental/physical health 73,543 - 197,495 271,038
Culture and recreation 3,670,021 - 556,751 4,226,772
Debt service: - -
Principal - 9,065,000 960,000 10,025,000
Interest and other debt issue costs 688 277,799 896,075 1,174,562
Capital outlay 156,257 - 4,624,878 4,781,135
Total expenditures 31,275,264 10,126,975 10,270,870 51,673,109
Excess (deficiency) of revenues over
expenditures (3,330,212) (8,846,848) (1,405,660) (13,582,720)
OTHER FINANCING SOURCES (USES)
Proceeds of long-term debt - 8,590,000 - 8,590,000
Premiums on bonds sold -401,073 -401,073
Capital asset donations & disposal 1,250 - 136,248 137,498
Insurance recoveries - -285285
Transfers in 4,354,335 - 2,578,409 6,932,744
Transfers out(758,755)(80,000)(601,987)(1,440,742)
Total other financing sources and uses 3,596,830 8,911,073 2,112,955 14,620,858
Net change in fund balances 266,618 64,225 707,295 1,038,138
Fund balances-beginning4,602,670218,8344,459,4629,280,966
Fund balances-ending$ 4,869,288$ 283,059$ 5,166,757$ 10,319,104
See accompanying notes to the financial statements.
Reconcilliation of the Statement of Revenues,
Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities
For the Year Ended December 31, 2013
Amounts reported for governmental activities in the statement of activities are different
because:
Net change in fund balances total government funds
Governmental funds report capital outlays as expenditures, however, in the
statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by
which capital outlays exceeded depreciation in the current period.
Revenues and expenses in the statement of activities that do not provide
current financial resources are not reported in the funds.
The issuance of long-term debt (e.g. bonds) provides current financial
resources to governmental funds, while the repayment of the prinicpal of long-
term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net assets. Also, government
funds report the effect of premiums, discounts, and similar items when debt is
first issued, whereas these amounts are deferred and amortized in the
statement of activities. This amount is the net effect of these differences in
the treatment of long-term debt and related items.
Internal service funds are used by management to charge the costs of fleet
maintenance and risk management to individual funds. The net revenue of
certain activities of internal service funds is reported with governmental
activities.
Change in net position of governmental activities
See accompnaying notes to the financial statements
City of Bremerton / 28
_____________________________________________________________________________________________________________________________
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual General Fund
for the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ 21,896,97821,896,978$ 21,923,588$ 26,610$
Licenses and permits 780,825 780,825 992,460 211,635
Intergovernmental 644,702 644,702 897,937 253,235
Charges for services 5,221,902 5,221,902 4,673,758 (548,144)
Fines and forfeitures 1,124,800 1,124,800 1,041,637 (83,163)
Other revenues 4,390,300 4,512,191 4,461,645 (50,546)
Total revenues 34,059,507 34,181,398 33,991,025 (190,373)
EXPENDITURES
City Council 340,929 346,929 337,774 9,155
Executive 364,662 369,662 350,449 19,213
Finance 1,147,119 1,162,419 1,132,147 30,272
Legal 979,431 979,431 924,609 54,822
Human Resources 383,512 383,512 341,176 42,336
Community development 1,438,922 1,438,922 1,129,179 309,743
Municipal Court 1,427,534 1,427,534 1,350,004 77,530
City Auditor 173,168 173,168 170,349 2,819
Law enforcement 9,713,071 9,713,071 9,304,144 408,927
Fire/Emergency medical services 8,363,145 8,386,145 8,396,093 (9,948)
Police & fire pension 2,493,000 2,493,000 1,966,524 526,476
Facilities 743,223 861,000 806,162 54,838
Parks and recreation 2,560,935 2,642,806 2,557,845 84,961
Engineering 2,089,047 2,089,047 1,862,976 226,071
Non-departmental2,373,3983,101,3982,915,585185,813
Total expenditures34,591,09635,568,04433,545,0162,023,028
Excess (deficiency) of revenues over
expenditures (531,589) (1,386,646) 446,009 1,832,655
Fund balances-beginning 2,240,856 2,524,467 4,126,602 1,602,135
Fund balances-ending$ 1,709,267$ 1,137,821$ 4,572,611$ 3,434,790
Adjustment to reflect consolidation of Contingency
Reserve and Conference Center activity included in the
General Fund of the Statement of Revenues, Expenditures
and Changes in Fund Balances for Governmental funds.$ 296,677
Fund Balances Ending $ 4,869,288
EXPENDITURES
Personnel 26,539,714 26,649,931 25,428,044 1,221,887
Supplies, services & taxes 7,894,034 7,977,765 7,356,272 621,493
Capital expenditure 65,000 131,000 156,257 (25,257)
Debt Service 700 700 688 12
Transfers 91,648 808,648 603,755 204,893
Total expenditures 34,591,096 35,568,044 33,545,016 2,023,028
See accompanying notes to the financial statements.
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual Parking System
for the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental -- - -
Charges for services -- - -
Fines and forfeitures 250,000 250,000 178,340 (71,660)
Other revenue 888,350 9,912,960 10,092,860 179,900
Total revenues 1,138,350 10,162,960 10,271,200 108,240
EXPENDITURES
Personnel - - - -
Supplies, services & taxes 655,491 733,265 784,176 (50,911)
Capital expenditure - - - -
Debt service 510,304 9,342,900 9,342,799 101
Transfers 80,000 80,000 80,000 -
Total expenditures1,245,79510,156,16510,206,975(50,810)
Excess (deficiency) of revenues over
expenditures (107,445) 6,795 64,225 57,430
Fund balances-beginning 213,645 218,834 218,834 -
Fund balances-ending$ 106,200$ 225,629$ 283,059$ 57,430
City of Bremerton / 30
_____________________________________________________________________________________________________________________________
Statement of Net Position
Proprietary Funds
December 31, 2013
Business-type ActivitiesGovernmental
Enterprise FundsActivities
Nonmajor
GolfEnterprise Internal
CourseFundsService Funds
WaterWastewaterTotal
ASSETS
Current assets:
Cash and cash equivalents$ 2,147,850 $ 163,274$ 1,852,448$ 864,231$ 5,027,803$ 3,637,492
Restricted investments 46,222 - 1,382,203 - 1,428,425 100,000
Investments 2,901,220 224,057 1,159,865 1,185,963 5,471,105 4,891,640
External receivables 1,736,817 - 2,499,370 1,035,972 5,272,159 -
Restricted special assessments receivables 284,578 - - - 284,578 -
Interest receivables 7,075 538 6,102 2,847 16,562 11,981
Due from other funds 240,658 - 161,012 30,307 431,977 695,358
Due from other governments - - - 361,029 361,029 5,407
Inventories 660,680 73,783 447,821 - 1,182,284 89,928
Prepayments - 27,938 - - 27,938 378,276
Total current assets 8,025,100 489,590 7,508,821 3,480,349 19,503,860 9,810,082
Noncurrent assets:
Restricted special assessments 33,653 - - - 33,653 -
Notes and contracts receivable 416,284 - - - 416,284 -
Capital assets net of depreciation 59,905,852 7,305,433 97,854,908 6,118,371 171,184,564 3,295,193
Other noncurrent assets 103,612 - 119,440 - 223,052 -
Total noncurrent assets 60,459,401 7,305,433 97,974,348 6,118,371 171,857,553 3,295,193
Total assets 68,484,501 7,795,023 105,483,169 9,598,720 191,361,413 13,105,275
Deferred outflows of resources - 179,187 - - 179,187 -
Total assets and deferred outflows
$ 7,974,21068,484,501$ $ 105,483,169$ 9,598,720$ 191,540,600$ 13,105,275
LIABILITIES
Current liabilities:
Accounts/contract payable 287,110 139,724 468,145 84,771 979,750 437,340
Due to other funds 220,147 262,943 299,777 57,367 840,234 1,911
Employee wages payable 359,961 98,708 236,563 87,410 782,642 130,859
Other accrued liabilities 23,861 11,032 83,206 2,184 120,283108
Current portion of long-term debt 578,705 230,000 2,448,521 9,864 3,267,090 -
Bonds payable from restricted assets 41,289 - - - 41,289 -
Custodial accounts 96,750 8,734 - 500 105,984 -
Total current liabilities 1,607,823 751,141 3,536,212 242,096 6,137,272 570,218
Noncurrent liabilities:
Claims and judgments payable - - - - - 613,387
Bonds, notes and loans payable 3,631,957 4,755,000 17,504,621 98,642 25,990,220 -
Bonds payable from restricted assets 40,000 - - - 40,000 -
Compensated absences 48,032 - 29,677 9,764 87,473 10,645
Total noncurrent liabilities 3,719,989 4,755,000 17,534,298 108,406 26,117,693 624,032
Total liabilities 5,327,812 5,506,141 21,070,510 350,502 32,254,965 1,194,250
Deferred inflows of resources - - - - - -
Total liabilities and deferred inflows
$ 5,327,812$ 5,506,141$ 21,070,510$ 350,502$ 32,254,965$ 1,194,250
NET POSITION
Net investment in capital assets 55,614,190 2,499,620 77,901,137 6,009,865 142,024,812 3,295,193
Restricted for capital assets - 113,587 123,457 - 237,044 -
Restricted for debt service 283,164 - 1,258,746 - 1,541,910 -
Restricted for Worker's Compensation - - - - - 100,000
Unrestricted 7,259,335 (145,138) 5,129,319 3,238,353 15,481,869 8,515,832
Total net position
$ 2,468,06963,156,689$ $ 84,412,659$ 9,248,218$ 159,285,635$ 11,911,025
9,198,660
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Net position of business-type activities
$ 168,484,295
See accompanying notes to the financial statements.
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
for the Year Ended December 31, 2013
Business-type ActivitiesGovernmental
Activities
Enterprise Funds
GolfOther Internal
WaterCourseWastewaterProprietaryTotalService Funds
OPERATING REVENUES
Charges for services$ 8,823,025 $ 3,846,550$ 13,118,681$ 2,410,168$ 28,198,424$ 4,550,066
Other operating revenue 1,007,894 - 21,129 396,697 1,425,720 15,922
Total operating revenues 9,830,919 3,846,550 13,139,810 2,806,865 29,624,144 4,565,988
OPERATING EXPENSES
General operations 2,424,844 240,847 2,622,695 795,113 6,083,499 2,924,391
Contracted Operations - 3,352,575 - - 3,352,575 -
Maintenance 2,567,365 - 1,919,787 764,673 5,251,825 -
Customer service and marketing 358,470 - 229,518 103,819 691,807 -
General administration 987,712 - 1,007,950 264,037 2,259,699 380,582
Depreciation and amortization 2,064,840 172,252 3,282,051 106,668 5,625,811 584,043
Property, excise and B&O taxes 403,353 - 386,111 38,193 827,657 -
Risk transfer payments - 18,471 - - 18,471 493,179
Payments to claimants & beneficiaries - - - - - 334,059
Total operating expenses 8,806,584 3,784,145 9,448,112 2,072,503 24,111,344 4,716,254
Operating income (loss) 1,024,335 62,405 3,691,698 734,362 5,512,800 (150,266)
NONOPERATING REVENUES (EXPENSES)
Interest and investment revenue 71,676 1,574 26,794 7,426 107,470 36,696
Interest expense (99,058) (224,794) (376,134) (4,538) (704,524) -
Gain (loss) on capital asset disposal (9,740) 1,500 (1,908) - (10,148) (15,669)
Other nonoperating revenue/expense 308,246 2,591 40,678 24 351,539 6,878
Total nonoperating revenues (expenses) 271,124 (219,129) (310,570) 2,912 (255,663) 27,905
Income (loss) before contributions and transfers1,295,459 (156,724) 3,381,128 737,274 5,257,137 (122,361)
Capital contributions 764,584 - 2,427,969 684,993 3,877,546 28,069
Transfers to other funds (1,866,011) - (3,171,252) (481,739) (5,519,002) -
Transfers from other funds 27,000 27,000 -
Change in net assets 194,032 (156,724) 2,637,845 967,528 3,642,681 (94,292)
Total net position - beginning 63,057,045 2,645,796 81,807,770 8,280,690 155,791,301 12,005,317
Prior period adjustments (Note 19)
Prior period adjustment (94,388) (21,003) (32,956) - (148,347) -
Total net position - ending$ 63,156,689$ 2,468,069$ 84,412,659$ 9,248,218$ 159,285,635$ 11,911,025
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. (541,302)
Change in net position of business-type activities.$ 3,101,379
See accompanying notes to the financial statements.
City of Bremerton / 32
_____________________________________________________________________________________________________________________________
Statement of Cash Flows
Proprietary Funds
for the Year Ended December 31, 2013
Page 1 of 2
Business-type ActivitiesGovernmental
Activities
Enterprise Funds
Nonmajor
GolfEnterprise Internal
WaterCourseWastewaterFundsTotalService Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers$ 8,653,555$ 3,853,846$ 13,114,996$ 2,169,632$ 27,792,029$ 4,542,479
Cash payments to suppliers (2,782,779) (3,527,696) (3,107,549) (1,031,009) (10,449,033) (1,988,836)
Cash payments to employees (3,950,042) - (3,181,232) (1,136,964) (8,268,238) (1,253,664)
Purchase of insurance - - - - - (515,685)
Payment for insurance claims - - - - - (319,664)
Other operating receipts and payments 888,753 - 21,129 488,736 1,398,618 14,047
Net cash provided by operating activities 2,809,487 326,150 6,847,344 490,395 10,473,376 478,677
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfer ins - - - 27,000 27,000 -
Transfer outs (1,844,860) - (2,605,399) (473,718) (4,923,977) -
Other nonoperating revenues/expenses 308,973 (592) 39,578 24 347,983 6,059
Net cash provided (used) by noncapital financing activities(1,535,887) (2,565,821)(592) (446,694) (4,548,994) 6,059
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,367,261) - (4,797,957) (815,654) (6,980,872) (222,072)
Proceeds/costs on sale of assets - 2,320 - - 2,320 -
Capital contributions 422,837 - 811,723 115,147 1,349,707 -
Insurance recoveries 6,291 - - - 6,291 7,000
Collections on notes receivable 85,719 - - - 85,719 -
Loan/grant proceeds - - 583,960 638,809 1,222,769 -
Bond proceeds - 5,175,000 - - 5,175,000 -
Bond issuance costs - (47,014) - (47,014) -
Principal paid bonds (5,248,000)(41,000) (324,000) - (5,613,000) -
Principal paid on other debt (578,706) - (2,098,508) (2,687,079)(9,865) -
Interest paid on bonds and other debt (102,534) (139,950) (388,755) (4,735) (635,974) -
Net cash provided (used) for capital and related financing
activities (1,574,654) (257,644) (6,213,537) (76,298) (8,122,133) (215,072)
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from repayment of loans 12,284 - - - 12,284 -
Net change in investments 128,223 (41,737) 1,068,932 4,112 1,159,530 2,788
Issuance of interfund loans - - - - - (385,000)
Interest on loans and investments 15,321 1,16823,332 5,44945,27026,421
Net cash provided (used) in investing activities 155,828 (40,569) 1,092,264 9,561 1,217,084 (355,791)
Net increase (decrease) in cash and cash equivalents(145,226) 27,345(839,750)(23,036)(980,667)(86,127)
Cash and equivalents - beginning 2,293,076 135,9292,692,198 887,2676,008,4703,723,619
Cash and equivalents - ending
$ 2,147,850$ 163,274$ 1,852,448$ 864,231$ 5,027,803$ 3,637,492
Cash at the end of the year consists of:
Operating fund cash 2,147,850 163,274 1,852,448 864,231 5,027,803 3,637,492
Restricted cash - - - - - -
Total cash at end of year
$ 2,147,850$ 163,274$ 1,852,448$ 864,231$ 5,027,803$ 3,637,492
See accompanying notes to the financial statements.
Statement of Cash Flows
Proprietary Funds
for the Year Ended December 31, 2013
Page 2 of 2
Business-type ActivitiesGovernmental
Activities
Enterprise Funds
Nonmajor
GolfEnterprise Internal
CourseFundsService Funds
WaterWastewaterTotal
Reconciliation of operating income to net cash provided by
operating activities:
Operating income (loss)$ 1,024,335$ 62,405$ 3,691,698$ 734,362$ 5,512,800 $ (150,266)
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 2,064,840 172,252 3,282,051 106,668 5,625,811 584,043
Decrease (increase) in receivables (248,284) 2,528 4,216 (234,955) (476,495) -
Decrease (increase) in due from other funds/govt (36,098) (101,720) (25,051) 126,213 (36,656) (17,526)
Decrease (increase) in prepaid expenses 11,256 - - - 11,256 16,141
Decrease (increase) in inventory 15,505 - - - 15,505 398
Increase (decrease) in accounts payable (60,871) 64,889 (48,336) (217,986) (262,304) 31,586
Increase (decrease) in due to other funds/govt 606 19,629 (64,132) (43,878) (87,775) (18,314)
Increase (decrease) in employee wages payable 8,652 98,709 (4,433) 11,509 114,437 (4,033)
Increase (decrease) in employee leaves payable 29,466 - 11,396 8,462 49,324 6,026
Increase (decrease) in other payables (4,543) 7,458 (65) - 2,850 30,622
Increase (decrease) in deferred revenues 4,623 - - - 4,623 -
Net cash provided by operating activities
$ 2,809,487$ 326,150$ 6,847,344$ 490,395$ 10,473,376$ 478,677
Noncash investing, capital and financial activities
Developers contributed infrastructure$ 774,363$ -$1,511,143 $ 166,680$ 2,452,186 $ 28,069
See accompanying notes to the financial statements.
City of Bremerton / 34
_____________________________________________________________________________________________________________________________
Statement of Fiduciary Net Position
Fiduciary Funds
December 31, 2013
Agency
Funds
Assets
Cash and cash equivalents$ 194,534
Total assets$ 194,534
Deferred outflows of resources
$ -
Liabilities
Accounts/contracts payable 42,252
Other current liabilities 152,281
Total liabilities$ 194,533
Deferred outflows of resources
$ -
See accompanying notes to the financial statements.
Notes to Financial Statements
January 1, 2013 December 31, 2013
1. Summary of significant accounting policies
The financial statements of the City of Bremerton have been prepared in conformity with generally accepted accounting
principles (GAAP) 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. As required by GAAP, the financial
statements present the City, the primary government, and its component units. The component units discussed below are
included in the Citys reporting entity because of the significance of their operational or financial relationships with the
City.
In 2009, the City established the Bremerton Transportation Benefit District (TBD) that meets the criteria of a component
unit. See Note 7 for discussion of the TBD.
B. Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report
information on all of the non-fiduciary activities of the City (and its component units). For the most part, the effect of
interfund activity has been removed from these statements. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree 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 fund 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.
City of Bremerton / 36
_____________________________________________________________________________________________________________________________
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 Citys operating fund. It accounts for all financial resources and transactions except those
required to be accounted and reported for in another fund.
The Parking fund is used to account for the revenues and expenditures for the entire Citys parking facilities and lots
along with all fees collected from parking violations.
The City reports the following major proprietary funds:
The water and wastewater funds account for activities related to the ongoing operations of the Citys water and
sewer systems.
The golf course fund accounts for the operations and maintenance of the City owned Gold Mountain Golf Course.
Additionally, the City reports the following fund types:
Debt Service Funds account for the resources accumulated and payments made for principal and interest on general
obligation debt except those required to be accounted for in another fund.
Special Revenue Funds account for the proceeds of specific revenue sources to finance specific activities as required
by law or administrative regulation. Their revenues are earmarked to finance certain activities or functions.
Capital Project Funds account for the acquisition or development of capital facilities for governmental activities.
Their major sources of revenues are from proceeds from general obligation bonds, loans, real estate excise tax,
impact fees, grants from other agencies and contributions from other funds.
Nonmajor Enterprise funds account for the operations, maintenance and capital additions of the Citys stormwater
utility.
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 citys
Risk Management, Information Technology Services, Unemployment and Employee leave payout activities. In all
cases, City departments contribute according to the benefit provided by each fund.
Agency funds account for assets held by a government as an agent for individuals, private organizations, other
governments, and/or other funds. All funds are used for custodial or clearing purposes.
The City eliminates the effect of interfund activity from the government-wide financial statements. There are some
exceptions to this rule such as charges between the utility function and other functions within the City, and any
payments-in-lieu of taxes. Elimination of these charges would distort the direct costs and program revenues reported for
the various functions concerned.
Amounts reported as program revenues include charges to customers, special assessments, operating grants and
contributions and capital grants and contributions. General revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
funds 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 administration, operations and
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.
D. Budgetary Information
1. Scope 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 budgetary basis of accounting differs from generally accepted accounting
principles. The city budgets the Contingency Reserve and Conference Center activities as if they were special revenue
funds. However, GAAP requires these activities to be reported with the General fund. The Conference Center fund does
not have a significant stream of restricted resources and under GAAP the Contingency Reserve fund was established for
a specific purpose, stabilization, which should be included in the General fund. From a budgetary perspective, the city
budgets for each of these funds separate from the General fund. The budgetary comparison for the General Fund does
not include the managerial funds.
2. Amending the Budget
The Citys 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 revisions within a fund or any revisions that alter the
total expenditures of a fund, or affect the number of authorized employee positions or salary ranges must be approved by
the City Council. The Citys budget was amended two times in 2013.
The financial statements contain the original and final budget information. The original budget is the first complete
appropriated budget. The final budget is the original budget adjusted by all supplemental appropriations authorized for
the fiscal year.
E. Assets, Liabilities and Net Position
1. Cash and Cash Equivalents
It is the Citys policy to invest all temporary cash surpluses. At December 31, 2013, the City was holding $8,890,655 in
short-term residual investments of surplus cash. This amount is classified on the balance sheet as cash and cash
equivalents in various funds. The interest on these investments is prorated to the various funds.
The amounts reported as cash and cash equivalents also include compensating balances maintained with the Citys bank
in lieu of payments for services rendered. The average compensating balance maintained during 2013 was $4,590,285.
For purposes of the statement of cash flows, the City considers all highly liquid investments (including restricted assets)
with a maturity of three months or less when purchased to be cash equivalents.
2. Investments - See Note 3 Deposits and Investments.
3. 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.
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, 2013, $105,460 of special
ssessments receivable were delinquent.
a
City of Bremerton / 38
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The amounts reported as notes and contracts receivable primarily represents housing rehabilitation loans resulting from
the federal Department of Housing and Urban Development Community Development Block Grant programs. Deferred
notes and contracts on the fund financial statement consist of outstanding loan balances that are liens against the property
benefited and the note receivable from property sold. An indeterminate portion of the Block Grant loans will be forgiven
if certain qualifying conditions are met by the loan recipients.
4. Amounts Due To and From Other Funds and Governments
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. A summary schedule of interfund loans receivable and payable is
internal balances
furnished in Note 14.
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in
applicable governmental funds to indicate that they are not available for appropriation and are not expendable available
financial resources.
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 portion of fund balance not available for future
expenditure is included in the nonspendable category of fund balance. 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 by the FIFO (first in first out) method which
approximates market value.
6. Restricted Assets and Liabilities
These accounts contain resources for programs, construction, replacement, and debt service, including current and
delinquent special assessments receivable in enterprise funds. Related liabilities are shown as
Payable from Restricted
. Specific debt service reserve requirements are described in Note 10, .
AssetsLong-Term Debt
Restricted assets are composed of the following:
Governmental type:
Cash and investments - Contruction$ 1,870,924
Cash and investments - HUD programs 126,106
Cash and invesments - Public safety665,382
Cash and invesments - Public Television86,238
Investments - Workers compensation 100,000
Cash and investments - Tourism promotion 94,521
Cash and investments - Debt Service 17,000
External receivables - Tourism promotion24,827
External receivables - Construction 44,392
External Receivables - Debt Service5,143
Due from other governments - HUD142,836
Due from other governments - Construction 13,353
Total governmental$ 3,190,722
Business type:
Investments - Debt service $ 1,304,968
Investments - Construction123,457
Receivables - Debt service318,231
Total business$ 1,746,656
7. Capital Assets. See Note 5, .
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 and an
estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
Costs for additions or improvements to capital assets are capitalized when they increase the effectiveness or efficiency of
the asset.
The cost of normal maintenance and repairs 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.
Property, plant and equipment of the City are depreciated using the straight line method over the following estimated
useful lives:
Assets Years
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 Citys utility land management plan and the citys negative net pension obligation.
9. Deferred outflow of resources
A deferred outflow of resources is a consumption of net assets by the government that is applicable to a future reporting
period. This account includes the portion of a loss on the refunding of debt attributable to future periods.
10. Compensated Absences
It is the Citys policy to permit employees to accumulate earned but unused vacation, compensatory time, and sick leave
benefits.
The City records a liability for all outstanding vacation pay. The payment is based on current wages at termination.
Employees with the required length of service may receive cash payouts for all accumulated vacation leave. Maximum
vacation payout is dependent on which labor group covers a specific employee based on the following chart:
Employee Group Maximum Vacation Cash Out
Teamsters 240 hours
IAFF Local 437 (firefighters) 315 hours
Police Guild 360 hours
Police Management 300 hours
Non-represented personnel 240 hours
City of Bremerton / 40
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Non-exempt employees may request compensatory time off in lieu of overtime payment. Unused compensatory time is
cashed out upon termination based on wages at that time. The City records a liability for all outstanding compensatory
time. Compensatory time is accrued at a rate of one and one-half hours for each hour of overtime worked up to the
following maximums allowed:
Employee Group Maximum Compensatory Time Cash Out
Teamsters 40 hours
IAFF Local 437 (shift personnel) 275 hours
IAFF Local 437 (non-shift personnel) 209 hours
Police Guild 60 hours
Compensatory time may be carried over from year to year.
Upon resignation, employees not eligible for retirement do not receive any compensation for unused sick leave.
Employees that meet the eligibility criteria for service retirement may receive cash payouts of 35% of unused sick leave
up to the maximum allowed based on the following:
Employee Group Maximum Sick Leave Cash out
Teamsters 35% of 960 hours (336 hours max)
IAFF Local 437 (shift firefighters) 35% of 1440 hours (504 hours max)
IAFF Local 437 (non-shift personnel) 35% of 1166 hours (408 hours max)
Police Guild 35% of 1200 hours (420 hours max)
Police Management 35% of 1200 hours (420 hours max)
Non-represented personnel 35% of 960 hours (336 hours max)
The City records a liability for sick leave for all personnel that meet the eligibility criteria for retirement. The payment is
based on current wages at time of retirement.
The entire eligible compensated absence liability is reported on the government-wide financial statements. In the
proprietary funds, the entire amount of compensated absences is reported as a fund liability.
11. Other Current/Accrued Liabilities
These accounts on the fund statements include deposits payable held on open contracts as well as the current portion of
claims and judgments payable.
12. Long-term Debt See Note 10, .
Long-Term Debt
13. Unearned revenue
This account includes amounts recognized as receivables but not revenues in governmental funds because the revenue
recognition criteria have not been met.
14. Deferred inflow of resources
A deferred inflow of resources is an acquisition of net assets by the government that is applicable to a future reporting
period. This account includes grants received in advance of the start date and deferred gains on refunding attributable to
future periods.
15. Fund Balance Classification, Details, and Minimum Fund Balance
In the fund financial statements, governmental funds report fund balances based on the extent to which the City is bound
to observe constraints on the use of the governmental funds resources. Fund balances are classified in the following
manner:
Nonspendable includes amounts that are either 1) not in spendable form, or 2) legally or contractually required
to be maintained intact. Inventories, prepaid items and permanent trust are classified as nonspendable fund
balances.
Restricted includes amounts which are constrained for specific purposes that are 1) externally imposed by
creditors, grantors, contributors, or laws or regulations of other governments, or 2) imposed by law through
enabling legislation.
Committed includes amounts that can be used for specific purposes with constraints imposed by formal action
of the highest level of decision-making authority. The authorization specifying the purposes for which
committed funds can be used should have the consent of both the legislative and executive branches of
government. The City operates under a Mayor-Council form of government. As Executive Officer, the Mayor
supervises the administrative process of the City and works with the City Council. The City Council enacts
ordinances and resolutions that may impose, modify or rescind fund balance commitments.
Assigned includes amounts that are intended to be used for specific purposes, but are neither restricted nor
committed. The authority for assignment of funds is not required to be the governments highest level of
decision making authority. Furthermore, the constraints imposed on the use of assigned amounts are more
easily removed or modified than those imposed on committed fund balances. The City Council may authorize
executive officers to assign fund balances for specific purposes through Council ordinances and resolutions.
Unassigned includes amounts that are not assigned to other funds and do not meet the criteria for being
classified as restricted, committed, or assigned. Fund balances that can be utilized for economic stabilization,
emergencies and contingencies that do not qualify as restricted or committed are reported as unassigned.
GeneralOther
FundFundsTotal
Fund balances:
Nonspendable:
Inventory$ 24,801$ 24,801-$
Restricted for:
Tourism promotion & facilities50,179119,348169,527$
Community development block grant268,942268,942$
Public safety665,382665,382$
Debt service22,14322,143$
Capital projects1,964,7281,964,728$
Committed to:
Employee Wellness7,2597,259
Parks33,85933,859
Public Access Television223,834223,834
Public safety40,80540,805
Public art51,90651,906
Assigned to:
Street Operations175,765175,765
Tourism promotion & facilities23,77423,774
Parking System283,059283,059
Building Abatement261,563261,563
Court Improvement4,4064,406
Debt Service151,922151,922
Park Capital256,347256,347
Capital Improvements894,774894,774
Unassigned:
4,794,3084,794,308
Total Fund Balances $ 4,869,288$ 5,449,816$ 10,319,104
City of Bremerton / 42
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When both restricted and unrestricted resources are available for use, it is the Citys policy to use restricted resources
first, then unrestricted resources as needed. Under the default policy provided in GASB 54, unrestricted resources are
reduced in the following order when expenditures are incurred for purposes for which amounts in any of those
unrestricted fund balance classifications could be used: committed amounts are reduced first, followed by assigned
amounts, and then unassigned.
A minimum fund balance policy has been established by the City Council that establishes target year end operating cash
and investment balances as a percentage of budgeted operating expenditures for the Citys General, Water, Wastewater,
Stormwater and Golf Course funds. The following table shows the status at December 31, 2013.
TargetTargetBalance
FundRateBalance12/31/2013
General8.5%3,023,284$ $ 3,958,334
Water12%1,569,768 5,049,070
Wastewater12%2,201,363 3,012,312
Stormwater12%373,7502,024,350
Golf Course12%514,606387,331
A contingency reserve fund, for the purposes of economic stabilization, was created by the City Council to protect the
Citys General Fund in the event of unforeseen and unfunded emergency requirements. The minimum fund balance is
set at $1,000,000. The proceeds of sale of all General Fund real property are committed to this purpose. Funds are to be
expended, with the unanimous vote of the City Council, only in the event of a bona fide emergency defined as a
significant crisis threatening the financial viability of the City. If the balance of the fund is less than one million dollars
a repayment plan shall be established to replenish the fund to its minimum level. Balances in excess of $1,000,000 can
be used for capital purposes upon City Council approval by simple majority vote.
In May of 2011 the City Council authorized the expenditure of $1,150,000 to settle a dispute over a contingent loan
agreement between the City, Kitsap County and Kitsap Consolidated Housing Authority. At 12/31/13 the balance was
$464,496. The fund balance of this management fund is reported as part of the General Fund. The 2013 amended budget
includes $50,000 towards the rebuilding of the reserve amount.
2. Reconciliation of Government-wide and Fund Financial Statements
A. Explanation of aggregated differences between the governmental fund balance sheet and the government-wide
statement of net position
The governmental fund balance sheet includes a reconciliation between total fund balance and total net position as
reported in the government-wide statement of net position. The details of the aggregated differences are presented
below.
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds:
Capital Assets of governmental funds net of depreciation$ 111,043,456
Capital Assets of Internal Service funds included in govermental activities
net of depreciation1,652
Net adjustment to increase fund balance - total governmental funds to arrive at
net position of governmental activities $ 111,045,108
Other long-term assets are not available to pay for current-period expenditures and therefore are not reported in the
funds:
Deferred revenue for taxes and receivables due beyond the city's 30 day
measurable and available period$ 3,146,660
Investment interest accrued beyond the city's 30 day measurable
and available period12,662
Build America Bond subsidy beyond the city's 30 day measurable
and available period39,490
Other post-employment benefits105,296
Net adjustment to increase fund balance - total governmental funds to arrive at
net position - governmental activities $ 3,304,108
Internal Service funds are used by management to charge the costs of certain activities to individual funds:
Net position of Internal service funds included in governmental activities$ 2,712,365
Net capital assets of Internal Service funds included in governmental activities(1,652)
Net adjustment to increase fund balance - total governmental funds to arrive at
net position - governmental activities $ 2,710,713
Some liabilities, including bonds, loans and compensated absences payable, are not due and payable in the current
period and therefore are not reported in the funds:
GO bonds payable$ (31,275,000)
Less: Issuance premiums(796,739)
Add: Deferred amount on refunding1,119,825
Accrued interest payable(247,316)
Compensated absences(2,276,641)
Net adjustment to reduce fund balance - total governmental funds to arrive
at net position - governmental activities $ (33,475,871)
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 position 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$ 4,752,140
Depreciation(3,653,079)
Contributions of capital assets736,603
Loss on retirement of capital assets(1,028,976)
Net adjustment to increase net change in fund balances - governmental funds
to arrive at change in net position - govermental activities $ 806,688
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.
City of Bremerton / 44
_____________________________________________________________________________________________________________________________
GO bond principal paid$ 10,025,000
Principal of GO Bonds Issued (8,590,000)
Long Term Notes Issued
Unamortized debt issuance costs(683,892)
Net adjustment to decrease net change in fund balances - governmental funds
to arrive at change in net position of governmental activities $ 751,108
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$ 9,680
Change in deferred property taxes receivable(99,564)
Change in court fines receivable(15,414)
Change in block grant loans receivable(33,376)
Change in parking/red light fines receivable(5,531)
Change in BKAT contracts receivable(38,000)
Change in Build America Bond subsidy receivable(3,677)
Change in other post-employment benefits payable(277,251)
Change in accrued interest payable(8,739)
Change in compensated absences payable39,983
Net adjustment to decrease net change in fund balances - governmental funds
to arrive at change in net position of governmental funds $ (431,889)
The net revenue of certain internal service fund activities are governmental in nature and are included in the change in
net position in the government-wide statements.
Net revenue of risk management activities$ 338,625
Net Revenue of employment security activities 203,212
Net Revenue of Accrued Leave activities 52,225
Net revenue of information technology activities (7,577)
Net revenue of equipment maintenance activities (139,475)
Net adjustment to decrease net change in fund balances - governmental funds
to arrive at change in net position of governmental funds $ 447,010
3. Deposits and Investments
A. Deposits
The City's deposits are entirely covered by federal depository insurance (FDIC) or by collateral held in a multiple financial
institution collateral pool administered by the Washington Public Deposit Protection Commission (PDPC).
B. Investments
As required by state law, all investments of the City funds are obligations of the U.S. Government, U.S. agency issues,
obligations of the State of Washington, general obligations of Washington State municipalities, the State Treasurers 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 position at cost.
Weighted
AverageFair% of
Investment TypeRatingMaturitiesValuePortfolio
Cash & Cash Equivalents
Washington State Local Government Inv. PoolNR$ 9,419,949
Cash on hand 3,997,219
Total Cash & Cash Equivalents
13,417,168
Investments
US Agency securities
Federal National Mortgage AssnAA 6,014,90035%
Federal Farm Credit BanksAA 2,008,16012%
Federal Home Loan BankAA 3,994,14023%
Federal Home Loan Mortgage CorpAA 5,148,97030%
Total Investments 17,166,170
Total Cash & Investments 30,583,338
. As a means of limiting its exposure to realized fair value losses arising from rising interest rates, the
Interest Rate Risk
Citys 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 is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Citys
Credit Risk
investment policy limits investments to those authorized by State of Washington statutes governing the investment of public
funds. The Citys investments in agency securities were rated AAA by Standard & Poors Rating Service. The Washington
State Local Government Investment Pool which operates in a manner consistent with the section 2a-7 of the SECs Investment
Act of 1940, is unrated.
. The Citys investment policy states that (with the exception of U.S. Treasury securities
Concentration of Credit Risk
and the State Investment Pool) no more than 30% of the Citys total investment portfolio will be invested in a single
security type or with a single financial institution. At 12/31/13 the Citys investment in Federal National Mortgage Assn
securities exceeded the 30% limit. In May of 2014 $2M of FNMA securities were called and replaced by $2M of US Treasury
securities which brought the portfolio back into compliance with the policy.
The custodial credit risk for deposits is the risk that in the event of bank failure, the Citys
Custodial Credit Risk.
deposits may not be recovered. The City of Bremertons 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 Washingtons Public Depository Protection Commission (PDPC).
The custodial credit risk for safekeeping of securities is the risk in the event that the City would not have access to
investment holdings. The Citys 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.
4. Property Taxes
The Kitsap County Treasurer acts as an agent to collect property taxes levied in the County for all taxing authorities.
Collections are distributed the end of each month.
A. Property Tax Calendar
January 1 - Taxes are levied and become an enforceable lien against properties.
February 14 - Tax bills are mailed.
April 30 - First of two equal installment payments is due.
City of Bremerton / 46
_____________________________________________________________________________________________________________________________
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 inflow of resources 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 2013, the Kitsap Regional Library District levied $0.39 per $1,000 of assessed valuation, and
therefore the Citys maximum levy rate is $3.21 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 2013 was $2.761835 per $1,000 on an assessed valuation of $2.395 billion, for a total regular levy of
$6,629,413.
Special levies, approved by the voters are not subject to the above limitations. In 2013, the City levied an additional $0.85 per
$1,000 for General Obligation Bonds and Emergency Medical Services, for a total additional levy of $2,035,183.
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.
5. Capital Assets
Capital asset activity for the year ended December 31, 2013, was as follows:
BeginningEnding
BalanceBalance
Governmental Activities1/1/2013IncreasesDecreases12/31/2013
Capital assets, not being depreciated:
Land $ 17,433,782 $ 3,997,604 $ 1,028,976 $ 20,402,410
Construction in progress 17,167,537 4,753,066 17,622,367 4,298,236
Total capital assets, not being depreciated 34,601,319 8,750,670 18,651,343 24,700,646
Capital assets, being depreciated:
Buildings/building improvements 56,690,930 6,851,537 63,542,467-
Improvements other than buildings 17,675,569 2,367,253 20,042,822-
Machinery and equipment 8,879,774 554,721 200,278 9,234,217
Infrastructure 37,282,840 4,586,930 41,869,770-
Total capital assets, being depreciated 120,529,113 14,360,441 200,278 134,689,276
Less accumulated depreciation for:
Buildings/buildings improvements 10,654,446 1,160,631 11,815,077-
Improvements other than buildings 9,051,956 821,574 9,873,530-
Machinery and equipment 5,893,263 478,814 200,278 6,171,799
Infrastructure 19,287,841 1,196,566 20,484,407-
Total accumulated depreciation 44,887,506 3,657,585 200,278 48,344,813
Total capital assets, being depreciated, net 75,641,607 10,702,856 86,344,463-
$ 110,242,926 $ 19,453,526 $ 18,651,343 $ 111,045,109
Governmental activities capital assets, net
BeginningEnding
BalanceBalance
Business-type Activities1/1/2013IncreasesDecreases12/31/2013
Capital assets, not being depreciated:
Land $ 9,106,702 $ 9,991 $ - $ 9,116,693
Construction in progress 4,294,244 7,265,857 8,546,744 3,013,357
Total capital assets, not being depreciated 13,400,946 7,275,848 8,546,744 12,130,050
Capital assets, being depreciated:
Buildings/building improvements 53,984,553 486,822 54,471,375-
Improvements other than buildings 134,256,794 5,611,053 218,732 139,649,115
Machinery and equipment 55,607,1514,063,208 961,679 58,708,680
Total capital assets, being depreciated 243,848,498 10,161,083 1,180,411 252,829,170
Less accumulated depreciation for:
Buildings/buildings improvements 19,427,622 1,028,600 20,456,222-
Improvements other than buildings 41,462,415 2,607,069 218,732 43,850,752
Machinery and equipment 24,659,731 2,429,083 914,670 26,174,144
Total accumulated depreciation 85,549,768 6,064,752 1,133,402 90,481,118
Total capital assets, being depreciated, net 158,298,730 4,096,331 47,009 162,348,052
$ 171,699,676 $ 11,372,179 $ 8,593,753 $ 174,478,102
Business-type activities Capital assets, net
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 215,099
Public safety 577,272
Transportation, including depreciation of general infrastructure assets 1,178,763
Economic environment 348
Culture and recreation 1,681,597
Capital assets held by the government's internal service funds
are charged to the various functions based on their usage of the assets 4,506
$ 3,657,585
Total depreciation expense - Governmental activities
Business-type activities:
Water $ 1,931,268
Wastewater 3,275,026
Stormwater 106,668
Golf 172,252
Capital assets held by the government's internal service funds
are charged to the various functions based on their usage of the assets 579,538
$ 6,064,752
Total depreciation expense - Business-type activities
City of Bremerton / 48
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6. Construction Commitments
At December 31, 2013, the City had several construction projects underway. The following table contains the projects
and status at year end.
Remaining
ProjectSpent to DateCommitment
$ 2,852,905 $ 147,062
#5371- Primary Effluent Pump Construction
#102160- Pacific Avenue Construction
2,214,819 127,456
#827- Anderson Cove LID
294,017 5,921
#859- CIPP
82,202 3,103
#4392- Chemical Resistant Building
- 13,340
#4489- Warren Ave Bridge Main
24,435 1,430,805
Kitsap Conference Center
437,367 457,075
#59148- Evergreen Playground
- 267,548
#1066- 11th & Warren Improvements
86,871 7,229
$ 5,992,616 $ $ 2,459,539
7. Component Unit
On February 4, 2009, the City authorized and approved the creation of a Transportation Benefit District (TBD) 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 streets and related infrastructure. The TBD is an independent taxing district and was
established primarily to benefit the City of Bremerton satisfying GASB Statement No. 14s criteria for the recognition of the
TBD as a blended component unit of the City. Beginning fiscal year 2013, the TBD has enacted a $20 per vehicle license fee to
fund appropriate projects. In 2013, the TBD received total collections from vehicle license fees of $431,866. $53,629 was
expended in 2013 for crack sealing of several city streets. A separately issued Bremerton
Transportation Benefit District comprehensive annual financial report (CAFR) is available on the TBDs page on the City of
Bremertons web site at www.ci.bremerton.wa.us .
8. Pension Plans
Substantially all City full-time and qualifying part-time employees participate in one of the following statewide retirement
systems administered by the Washington State Department of Retirement Systems, under cost-sharing multiple-employer
public employee defined benefit retirement plans. The Department of Retirement Systems (DRS), a department within the
primary government of the State of Washington, issues a publicly available comprehensive annual financial report (CAFR) that
includes financial statements and required supplementary information for each plan. The DRS CAFR may be obtained by
writing to: Department of Retirement Systems, Communications Unit, PO Box 48380, Olympia, WA 98504-8380; or it may
be downloaded from the DRS website at www.drs.wa.gov. The following disclosures are made pursuant to GASB Statements
27, and No. 50
Accounting for Pensions by State and Local Government Employers Pension Disclosures, an Amendment of
GASB Statements No. 25 and No. 27.
Public Employees' Retirement System (PERS) Plans 1, 2 and 3
Plan Description
The Legislature established PERS in 1947. Membership in the system includes: elected officials; state employees; employees
of the Supreme, Appeals, and Superior courts; employees of legislative committees; employees of district and municipal courts;
and employees of local governments. Membership also includes higher education employees not participating in higher
education retirement programs. Approximately 49 percent of PERS salaries are accounted for by state employment. PERS
retirement benefit provisions are established in Chapters 41.34 and 41.40 RCW and may be amended only by the State
Legislature.
PERS is a cost-sharing multiple-employer retirement system comprised of three separate plans for membership purposes: Plans
1 and 2 are defined benefit plans and Plan 3 is a defined benefit plan with a defined contribution component.
PERS members who joined the system by September 30, 1977, are Plan 1 members. Those who joined on or after October 1,
1977 and by either, February 28, 2002, for state and higher education employees or August 31, 2002, for local government
employees, are Plan 2 members unless they exercised an option to transfer their membership to Plan 3. PERS members joining
the system on or after March 1, 2002 for state and higher education employees, or September 1, 2002, for local government
employees have the irrevocable option of choosing membership in either PERS Plan 2 or Plan 3. The option must be exercised
within 90 days of employment. Employees who fail to choose within 90 days default to PERS Plan 3.
PERS is comprised of and reported as three separate plans for accounting purposes; Plan 1, Plan 2/3, and Plan 3. Plan 1
accounts for the defined benefits of Plan 1 members. Plan 2/3 accounts for the defined benefits of Plan 2 members and the
defined benefit portion of benefits for Plan 3 members. Plan 3 accounts for the defined contribution portion of benefits for Plan
3 members. Although members can only be a member of either Plan 2 or Plan 3, the defined benefit portions of Plan 2 and Plan
3 are accounted for in the same pension trust fund. All assets of this Plan 2/3 may legally be used to pay the defined benefits of
any of the Plan 2 or Plan 3 members or beneficiaries, as defined by the terms of the plan. Therefore, Plan 2/3 is considered to
be a single plan for accounting purposes.
PERS Plan 1 and Plan 2 retirement benefits are financed from a combination of investment earnings and employer and
employee contributions. Employee contributions to the PERS Plan 1 and Plan 2 defined benefit plans accrue interest at a rate
specified by the Director of DRS. During DRS Fiscal Year 2013, the rate was five and on-half percent compounded quarterly.
Members in PERS Plan 1 and Plan 2 can elect to withdraw total employee contributions and interest thereon, in lieu of any
retirement benefit, upon separation from PERS-covered employment.
PERS Plan 1 members are vested after the completion of five years of eligible service.
PERS Plan 1 members are eligible for retirement from active status at any age with at least 30 years of service, at the age of 55
with 25 years of service, or at age 60 with five years of service,. Plan 1 members retiring from inactive status prior to the age of
65 may receive actuarially reduced benefits.
The monthly benefit is 2 percent of the average final compensation (AFC) per year of service, but the benefit may not exceed
60 percent of the AFC. The AFC is the monthly average of the 24 consecutive highest-paid service credit months.
PERS Plan 1 retirement benefits are actuarially reduced to reflect the choice, if made, of a survivor option.
Plan 1 members may elect to receive an optional COLA that provides an automatic annual adjustment based on the Consumer
Price Index. The adjustment is capped at 3 percent annually. To offset the cost of this annual adjustment, the benefit is
reduced.
PERS Plan 1 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. The benefit amount is $350 a month, or two-thirds of the monthly AFC, whichever is
less. The benefit is reduced by any workers compensation benefit and is payable as long as the member remains disabled or
until the member attains the age of 60, at which time the benefit is converted to the members service retirement amount.
A member with five years of covered employment is eligible for non-duty disability retirement. Prior to the age of 55, the
benefit amount is 2 percent of the AFC for each year of service reduced by 2 percent for each year the members 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.
Plan 1 members may elect to receive an optional 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 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 of service. The monthly benefit is 2 percent of the AFC per year of service. The
AFC is the monthly average of the 60 consecutive highest-paid service months. 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 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, if hired prior to May 1, 2013:
City of Bremerton / 50
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With a benefit that is reduced by 3 percent for each year before age 65; or
·
With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter return-to-work rules.
·
PERS Plan 2 members hired on or after May 1, 2013, have the option to retire early by accepting a reduction of 5 percent for
each year of retirement before age 65. This option is available only to those who are age 55 or older and have at least 30 years
of service.
PERS Plan 2 retirement benefits are also actuarially reduced to reflect the choice, if made, of a survivor option.
PERS Plan 3 has a dual benefit structure. Employer contributions finance a defined benefit component, and member
contributions finance a defined contribution component. As established by Chapter 41.34 RCW, employee contribution rates to
the defined contribution component range from 5 percent to 15 percent of salaries, based on member choice. There are
currently no requirements for employer contributions to the defined contribution component of PERS Plan 3.
PERS Plan 3 defined contribution retirement benefits are dependent upon the results of investment activities. Members may
elect to self-direct the investment of their contributions. Any expenses incurred in conjunction with self-directed investments
are paid by members. Absent a members self-direction, PERS Plan 3contributions are invested in the Retirement Strategy
Fund that assumes the member will retire at age 65.
For DRS fiscal year 2013, PERS Plan 3 employee contributions were $99.0 million, and plan refunds paid out were $69.4
million.
The defined benefit portion of PERS Plan 3 provides members a monthly benefit that is 1 percent of the AFC per year of
service. The AFC is the monthly average of the 60 consecutive highest-paid service months. There is no cap on years of
service credit, and Plan 3 provides the same cost-of-living allowance as Plan 2.
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 by 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.
If they have 30 service credit years, are at least 55 years old, and were hired after May 1, 2013, they have the option to
·
retire early by accepting a reduction of 5 percent for each year before age 65.
PERS Plan 3 benefits are actuarially reduced to reflect the choice, if made, of a survivor option.
PERS Plan 2 and Plan 3 provide disability benefits. There is no minimum amount of service credit required for eligibility. The
Plan 2 monthly benefit amount is 2 percent of the AFC per year of service. For Plan 3, the monthly benefit amount is 1 percent
of the AFC per year of service. These disability benefit amounts are actuarially reduced for each year that the members age is
less than 65, and to reflect the choice of a survivor option. There is no cap on years of service credit, and a cost-of-living
allowance is granted (based on the Consumer Price Index) capped at 3 percent annually.
PERS members meeting specific eligibility requirements have options available to enhance their retirement benefits. Some of
these options are available to their survivors.
A one-time duty-related death benefit is provided to the beneficiary or the estate of a PERS member who 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 the members covered employment, if found eligible by the Department of Labor and Industries.
From January 1, 2007 through December 31, 2007, judicial members of PERS were given the choice to elect participation in
the Judicial Benefit Multiplier (JBM) Program enacted in 2006. Justices and judges in PERS Plan 1 and 2 were able to make a
one-time irrevocable election to pay increased contributions that would fund a retirement benefit with a 3.5 percent multiplier.
The benefit would be capped at 75 percent of AFC. Judges in PERS Plan 3 could elect a 1.6 percent of pay per year of service
benefit, capped at 37.5 percent of AFC.
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.
There are 1,176 participating employers in PERS. Membership in PERS consisted of the following as of the latest actuarial
valuation date for the plans of June 30, 2012:
Retirees and Beneficiaries Receiving Benefits82,242
Terminated Plan Members Entitled to But Not Yet Receiving Benefits30,515
Active Plan Members Vested106,317
Active Plan Members Nonvested44,273
Total263,347
Funding Policy
Each biennium, the state Pension Funding Council adopts PERS Plan 1 employer contribution rates, PERS Plan 2 employer
and employee contribution rates, and PERS Plan 3 employer contribution rates. Employee contribution rates for Plan 1 are
established by statute at 6 percent for state agencies and local government unit employees, and at a 7.5 percent for state
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. Under
PERS Plan 3, employer contributions finance the defined benefit portion of the plan and member contributions finance the
defined contribution portion. The Plan 3 employee contribution rates range from 5 percent to 15 percent.
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, 2013, are as
follows:
Members Not Participating in JBM:
PERS Plan IPERS Plan 2PERS Plan 3
Employer *9.21%**9.21%**9.21%**
Employee 6.00%**** 4.92%**** *****
* The employer rates
include the employer administrative expense fee currently set at 0.18%.
** The employer rate for state elected officials is 13.73% for Plan 1 and 9.21% for Plan 2 and Plan 3.
*** Plan 3 defined benefit portion only.
**** The employee rate for state elected officials is 7.50% for Plan 1 and 4.92% for Plan 2.
***** Variable from 5.0% minimum to 15.0% maximum based on rate selected by the PERS 3 member.
Members Participating in JBM:
PERS Plan IPERS Plan 2PERS Plan 3
Employer-State Agency*11.71%11.71%11.71%**
Employer-Local Agency*9.21%9.21% 9.21%**
Employee-State Agency9.76%9.80% 7.50%***
Employee-Local Agency12.26%12.30% 7.50%***
*The employer rates include the employer administrative expense fee currently set at 0.18%.
**Plan 3 defined benefit portion only.
***Minimum rate.
City of Bremerton / 52
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Both the City and the employees made the required contributions. The Citys required contributions for the years ended
December 31 were as follows:
PERS Plan IPERS Plan 2PERS Plan 3
2013$ 60,423$ 886,733$ 110,633
2012$ 57,198$ 771,999$ 102,682
2011$ 59,297$ 690,533$ 88,187
Law Enforcement Officers and Fire Fighters Retirement System (LEOFF) Plans 1 and 2
Plan Description
LEOFF was established in 1970 by the Legislature. Membership includes all full-time, fully compensated, local law
enforcement commissioned officers, firefighters and, as of July 24, 2005, emergency medical technicians. LEOFF membership
is comprised primarily of non-state employees, with Department of Fish and Wildlife enforcement officers, who were first
included effective July 27, 2003, being an exception. LEOFF retirement benefit provisions are established in Chapter 41.26
RCW and may be amended only by the State Legislature.
LEOFF is a cost-sharing multiple-employer retirement system comprised of two separate defined benefit plans. LEOFF
members who joined the system by September 30, 1977 are Plan 1 members. Those who joined on or after October 1, 1977 are
Plan 2 members.
LEOFF 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:
Effective July 1, 2003, the LEOFF Plan 2 Retirement Board was established by Initiative 790 to provide governance of LEOFF
Plan 2. The Boards duties include adopting contribution rates and recommending policy changes to the Legislature.
LEOFF 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. Employee contributions to the
LEOFF Plan 1 and Plan 2 defined benefit plans accrue interest at a rate specified by the Director of DRS. During DRS fiscal
year 2013, the rate was five and one-half percent compounded quarterly. Members in LEOFF Plan 1 and Plan 2 can elect to
withdraw total employee contributions and interest earnings, in lieu of any retirement benefit, upon separation from LEOFF-
covered employment.
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 ServicePercent of Final Average Salary
20 or more years2.0%
10 but less than 20 years1.5%
5 but less than 10 years1.0%
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 there is an 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 there is no eligible spouse, eligible children
receive 30 percent of FAS for the first child plus 10 percent for each additional child, subject to a 60 percent limitation of FAS,
divided equally.
A one-time duty-related death benefit is provided to the estate of a LEOFF Plan 1 member who dies as a result of injuries or
illness sustained in the course of employment, or if the death resulted from an occupational disease or infection that arose
naturally and proximately out of the members covered 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 members disability benefit or service retirement
benefit.
LEOFF Plan 2 members are vested after the completion of five years of eligible service.
Plan 2 members are eligible for retirement at the age of 53 with five years of service, or at age 50 with 20 years of service. Plan
2 members receive a benefit of 2 percent of the FAS per year of service, (the FAS is based on the highest consecutive 60
months), actuarially reduced to reflect the choice of a survivor option. Members who retire prior to the age 53 receive reduced
benefits. 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.
Otherwise, the benefits are actuarially reduced 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
benefit amount is 2 percent of the FAS for each year of service. Benefits are reduced to reflect the choice of survivor option
and for each year that the members age is less than 53, unless the disability is duty-related. 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 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 catastrophically 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 receive a retirement benefit 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.
A one-time duty-related death benefit is provided to the beneficiary or the estate of a LEOFF Plan 2 member who dies as result
of injuries or illness sustained in the course of employment, or if the death resulted from an occupational disease or infection
that arose naturally and proximately out of the members covered employment, if found eligible by 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 eligible health care insurance premiums.
Legislation passed in 2009 provides to the Washington state registered domestic partners of LEOFF Plan 2 members the same
treatment as married spouses, to the extent that the treatment is not in conflict with federal laws.
LEOFF members meeting specific eligibility requirements have options available to enhance their retirement benefits. Some of
these options are available to their survivors.
There are 374 participating employers in LEOFF. Membership in LEOFF consisted of the following as of the latest actuarial
valuation date for the plans of June 30, 2012:
Retirees and Beneficiaries Receiving Benefits10,189
Terminated Plan Members Entitled to But Not Yet Receiving Benefits689
Active Plan Members Vested14,273
Active Plan Members Nonvested2,633
Total27,784
City of Bremerton / 54
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Funding Policy
Employer and employee contribution rates are developed by the Office of the State Actuary to fully fund the plan. Starting on
July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent as long as the plan remains fully funded. Plan 2
employers and employees are required to pay at the level adopted by LEOFF Plan 2 Retirement Board.
The Legislature, by means of a special funding arrangement, appropriated money from the state General Fund to supplement
the current service liability and fund the prior service costs of LEOFF Plan 2 in accordance with the recommendations of the
Pension Funding Council and the LEOFF Plan 2 Retirement Board. However, this special funding situation is not mandated by
the state constitution and this funding requirement could be returned to the employers by a change of statute. For DRS fiscal
year 2013, the state contributed $54.2 million to LEOFF Plan 2.
The methods used to determine the contribution requirements are established under state statute in accordance with Chapters
41.26 and 41.45 RCW.
The required contribution rates expressed as a percentage of current-year covered payroll, as of December 31, 2013, are as
follows:
LEOFF Plan 1LEOFF Plan 2
Employer*0.18% 5.23%**
Employee0.00%8.41%
StateN/A3.36%
* The employer rates include the employer administrative expense fee currently set at 0.18%.
** The employer rate for ports and universities is 8.59%
Both the City and the employees made the required contributions. The Citys required contributions for the years ended
December 31 were as follows:
LEOFF Plan 1LEOFF Plan 2
2013$ 357$ 555,943
2012$ 545$ 549,928
2011$ 758$ 555,170
Public Safety Employees Retirement System (PSERS) Plan 2
Plan Description
PSERS was created by the 2004 Legislature and became effective July 1, 2006. PSERS retirement benefit provisions
have been established by Chapter 41.37 RCW and may be amended only by the State Legislature.
PSERS is a cost-sharing multiple-employer retirement system comprised of a single defined benefit plan, PSERS Plan
2.
PSERS membership includes:
PERS 2 or 3 employees hired by a covered employer on or before July 1, 2006, who met at least one of the
·
PSERS eligibility criteria and elected membership during the period of July 1, 2006 to September 30, 2006;
and
Employees hired on or after July 1, 2006, by a covered employer, that meet at least one of the PSERS
·
eligibility criteria.
Covered employers include the following:
State of Washington agencies: Department of Corrections, Department of Natural Resources, Gambling
·
Commission, Liquor Control Board, Parks and Recreation Commission, and Washington State Patrol;
Washington State counties;
·
Washington State cities except for Seattle, Spokane and Tacoma; and
·
Correctional entities formed by PSERS employers under the Interlocal Cooperation Act.
·
To be eligible for PSERS, an employee must work on a full-time basis and:
Have completed a certified criminal justice training course with authority to arrest, conduct criminal
·
investigations, enforce the criminal laws of Washington and carry a firearm as part of the job; or
Have primary responsibility to ensure the custody and security of incarcerated or probationary individuals; or
·
Function as a limited authority Washington peace officer, as defined in RCW 10.93.020; or
·
Have primary responsibility to supervise eligible members who meet the above criteria.
·
PSERS retirement benefits are financed from a combination of investment earnings and employer and employee
contributions. Employee contributions to the plan accrue interest at a rate specified by the Director of DRS. During
DRS fiscal year 2013, the rate was five and one-half percent compounded quarterly. Members in PSERS Plan 2 can
elect to withdraw total employee contributions and interest thereon upon separation from PSERS-covered employment.
PSERS Plan 2 members are vested after completion of five years of eligible service.
PSERS members may retire with a monthly benefit of 2 percent of the average final compensation (AFC) 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, or at age 53 with 20
years of service. The AFC is the monthly average of the members 60 consecutive highest-paid service credit months.
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 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.
PSERS Plan 2 provides disability benefits. There is no minimum amount of service credit required for eligibility. The
benefit is 2 percent of the average final compensation (AFC) for each year of service. The AFC is based on the
members 60 consecutive highest creditable months of service. Benefits are actuarially reduced for each year that the
members 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). 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 members can receive service credit for military service that interrupts employment. Additionally,
PSERS members who become totally incapacitated for continued employment while serving in the uniformed services,
or a surviving spouse or eligible child(ren), may request interruptive military service credit.
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. This provision applies to any member killed in the course of
employment, if found eligible by the Director of the Department of Labor and Industries.
A one-time duty-related death benefit is provided to the estate (or duly designated nominee) of a PSERS member who dies as a
result of injuries or illness sustained in the course of employment, or if the death resulted from an occupational disease or
infection that arose naturally and proximately out of the members covered employment, if found eligible by the Department of
Labor and Industries.
There are 75 participating employers in PSERS. Membership in PSERS consisted of the following as of the latest
actuarial valuation date for the plan of June 30, 2012:
City of Bremerton / 56
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Retirees and Beneficiaries Receiving Benefits27
Terminated Plan Members Entitled to But Not Yet Receiving Benefits60
Active Plan Members Vested2,083
Active Plan Members Nonvested2,167
Total4,337
Funding Policy
Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee contribution rates. The
employer and employee contribution rates for Plan 2 are developed by the Office of the State Actuary to fully fund Plan
2. 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, 2012, are
as follows:
PSERS Plan 2
Employer*10.54%
Employee6.36%
*The employer rate includes an employer administrative expense fee of 0.16%.
Both the City and the employees made the required contribution. The Citys required contributions for the years ended
December 31 were as follows:
PSERS Plan 2
201311,719$
201210,667$
20119,864$
9. Risk Management
The Citys 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 Citys General and Utility funds participate
in financing the Risk Management Fund.
Following is a summary of the Citys 2013 insurance coverage and risk retention:
Coverage LimitSelf-Insured
RiskPer OccurrenceRetentionInsurer
Excess liability
$10,000,000$500,000Ironshore Specialty Insurance Company
Excess workers' compensation
Statutory500,000Safety National Casualty Corporation
Blanket property100,000,000100,000Lexington Insurance Cormpany
Employee blanket bond1,000,00025,000Great American Insurance Company
Pollution legal liability1,000,000100,000Indian 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 claims 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, 2013, the Risk Management Fund had cash and investment reserves of $2,433,969. 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 Position for the Risk Management fund includes the unspent portion of this
amount in prepayments. Long-term fund liabilities have been estimated at $613,387. 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 $446,524.
The following table shows the actual claims activity for 2012 and 2013:
20122013
Claims liability - beginning of year$ 1,759,683$ 892,184
Claims incurred409,438296,185
Estimate change prior years(903,812)26,536
Payment on claims(373,125)(292,009)
Claims liability - end of year $ 892,184 $ 922,896
10. 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 bonds have been issued for
both general government and business-type activities and are being repaid from the applicable resources. The revenue
bonds are repaid with proprietary fund revenues.
General obligation bonds currently outstanding are as follows:
MaturityInterestOutstanding
DateRate12/31/2013
2010 LTGO BABS09/01/353.616,350,000$
2010 UTGO Refunding12/01/273.079,245,000
2010 LTGO (B) BABS12/01/303.422,120,000
2011 Promissory Note - Kitsap County05/16/140 35,000
2012 LTGO Refunding - Govt Center12/31/214.005,090,000
2013 LTGOA Refunding - Conf Ctr Pkg12/01/363.018,435,000
2013 LTGOB Refunding - Golf Course12/01/283.014,985,000
Total General Obligation Bonds and Notes$ 36,260,000
The annual debt service requirements to maturity for general obligation bonds are as follows:
Year EndingGovernmental ActivitiesBusiness Activities
December 31PrincipalInterestPrincipalInterest
2013$ 1,260,000$ 1,189,400$ 230,000$ 132,383
20141,255,0001,162,594245,000131,003
2015 1,310,000 1,130,287 285,000 128,920
2016 1,340,000 1,095,537 300,000 125,785
2017 1,390,000 1,056,478 315,000 121,585
2018-2022 7,670,000 4,587,3111,665,000505,135
2023-2027 8,435,000 2,978,7601,945,000228,975
2028-2032 5,860,000 1,397,362
2033-2036 2,755,000 208,229
Total$ 31,275,000$ 14,805,958$ 4,985,000$ 1,373,785
City of Bremerton / 58
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Revenue bonds and loans currently outstanding are as follows:
DateRate12/31/2013
1994 PWTF Loan - Warren Ave CSO07/01/141.0159,606
1995 PWTF Loan WWTP improvements07/01/151.0370,468
1996 PWTF Loan Callow Ave CSO I07/01/161.0454,336
1997 PWTF Loan Callow Ave CSO II07/01/171.0141,008
1998 PWTF Loan SR 303 water main07/01/181.0828,948
1999 PWTF Loan Tracyton water sys ph207/01/192.059,445
1999 PWTF Loan CSO design07/01/201.0292,755
2000 PWTF Loan Multi-Basin CSO07/01/201.01,045,281
2000 PWTF Loan Callow CSO 3-507/01/201.01,564,007
2001 PWTF Loan East Bremerton CSO07/01/210.51,266,667
2003 PWTF Loan Anderson Cove Basin 1207/01/230.5288,490
2003 PWTF Loan Naval Avenue07/01/234.0131,580
2004 PWTF Loan Brentwood storm drain red07/01/244.0108,507
2004 PWTF Loan Pacific Ave Basin CSO07/01/240.5769,751
2006 PWTF Loan WWTP upgrade07/01/250.5128,070
2007 PWTF Anderson Cove sewer PS CW107/01/270.5497,369
2007 PWTF WWTP upgrades07/01/270.52,281,446
1994 CCWF Loan Callow Ave CSO design05/01/170.0130,447
1997 CCWF Loan Callow Ave CSO I07/31/184.8922,166
1998 DWSRF Loan corrosion control facility10/01/184.0275,083
2009 DWSRF UV Treatment Upgrade (ARRA)10/01/170.037,262
2001 DWSRF Loan Tracyton WD upgrade10/01/212.51,116,659
2002 DWSRF Loan Eastside flow & pressure10/01/222.5549,182
2002 DWSRF Loan Casad Dam seismic upgrade10/01/222.5353,482
2003 DWSRF Loan Casad Dam intake tower10/01/231.544,009
2003 DWSRF Loan Pump Station 4 upgrade10/01/231.5576,112
2004 DWSRF Loan Anderson Creek10/01/241.559,200
2004 DWSRF Loan seismic upgrades10/01/241.5311,281
1999 WPCRF Loan CSO plan update12/31/221.5125,293
1999 WPCRF Loan Anderson Cove CSO02/27/211.5402,539
1999 WPCRF Loan Callow Ave CSO final12/31/221.5289,762
2002 WPCRF Loan Anderson CV CSO red01/23/221.5302,047
2002 WPCRF Loan Cherry/Trenton CSO red10/15/241.5615,099
2002 WPCRF Loan Trenton pump station10/15/241.5614,701
2002 WPCRF Loan Tracyton Beach CSO12/31/251.5372,939
2002 WPCRF Loan Anderson Cove Basin 1212/31/261.5179,096
2003 WPCRF Pacific Ave CSO red-sep06/30/241.5197,245
2003 WPCRF Loan Pacific Ave CSO reduction12/31/271.5786,766
2004 WPCRF Loan Cherry/Trenton CSO red-112/31/261.5769,288
2007 WPCRF WWTP upgrade01/01/292.6523,085
2009 WPCRF Gorst Sewerage Constuction12/31/301.4533,492
2009 WPCRF Gorst Septic System Design12/31/302.9103,040
2009 WPCRF Gorst Sewerage Design12/31/301.4513,941
2013 WPCRF Gorst Sewerage Constuction12/31/321.452,367
2007 W/S Refunding Revenue bond12/01/214.33,210,000
Total revenue bonds and loans24,353,317
Revenue bond and loan debt service requirements to maturity are as follows:
Year EndingGovernmental ActivitiesBusiness Activities
December 31PrincipalInterestPrincipalInterest
2013$ -$ -$ 3,078,090$ 441,693
2014 - - 2,949,119 385,735
2015 - - 2,755,038 330,215
2016 - - 2,604,228 277,077
2017 - - 2,587,592 224,252
2018-2022 - - 7,944,262 487,491
2023-2027 - - 2,231,874 80,057
2028-2032 - - 203,109 4,117
2033-2036 - - - -
Total$ -$ -$ 24,353,312$ 2,230,637
On May 23, 2013, the City issued $8,590,000 in limited tax general obligation bonds (non-taxable) to refund the Citys
outstanding limited tax general obligation note, 2011, in the amount of $8,910,000 maturing on July 29, 2013 associated
with the Citys parking system. Moodys Investor Services affirmed the Citys bond rating of A1 for the 2013 limited
tax general obligation refunding bonds (non-taxable).
In proprietary funds bonds are displayed net of premium or discount. Annual interest expense is decreased by
amortization of debt premium and increased by the discount.
At December 31, 2013, the city has $174,065 available in debt service funds to service the general bonded debt.
Restricted assets in proprietary funds contain $1,541,910 in sinking funds and reserves as required by bond indentures.
B. Refunded Debt
On May 23, 2013, the City issued $5,200,000 in limited tax general obligation bonds (taxable) to refund the Citys
outstanding limited tax general obligation bonds, 2009, in the amount of $5,058,000 maturing on December 1 of the
years 2013 through 2028, inclusive. These bonds are associated with the Citys Gold Mountain Golf Complex. The
2009 Bond was held in the Citys investment portfolio and could be prepaid at any time. As a result, the liability for the
2009 bonds has been removed from the business activities column of the statement of net position. This current
refunding was undertaken to reduce total debt service payments over the next fifteen years by $566,266 and resulted in
an economic gain of $420,473. Moodys Investor Services affirmed the Citys bond rating of A1 for the 2013 limited
tax general obligation refunding bonds (taxable).
City of Bremerton / 60
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11. Changes in Long Term Liabilities
During the year ended December 31, 2013, the following changes occurred in long-term liabilities:
BeginningEnding
BalanceBalanceDue Within
1/1/2013AdditionsReductions12/31/2013One Year
Governmental Activities:
Bonds payable:
General obligation bonds$ 32,675,000$ 8,590,000$ 10,025,000$ 31,240,000$ 1,225,000
Notes Payable 35,000 - 35,000- 35,000
Add unamortized premiums 432,125 401,073 36,459 796,739 43,569
Less unamortized refunding exp(1,194,683) (74,858)- (1,119,825) (74,858)
Total bonds payable: 31,947,442 8,991,073 9,986,601 30,951,914 1,228,711
Claims and judgments 892,184 322,721 292,009 922,896 309,509
Compensated absences 2,377,132 1,947,302 1,997,457 2,343,175 1,954,661
Governmental activity
long-term liabilities:$ 35,216,758$ 11,261,096$ 12,276,067$ 34,217,985$ 3,492,881
Business-type Activities:
Bonds payable:
General obligation bonds$ 5,058,000$ 5,175,000$ 5,248,000$ 4,985,000$ 230,000
Revenue bonds 3,575,000 365,000- 3,210,000 375,000
Less unamortized refunding exp (204,043) (24,856)- (179,187) (25,598)
Total bonds payable: 8,428,957 5,175,000 5,588,144 8,015,813 579,402
Intergovernmental loans 23,776,504 53,883 2,687,077 21,143,310 2,703,090
Compensated Absences464,349431,701 382,377513,673426,200
Business-type activity
long-term liabilities:$ 32,669,810$ 5,660,584$ 8,657,598$ 29,672,796$ 3,708,692
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 $922,895 of Risk Management claims and judgments and $66,534 of compensated
absences are included in the above governmental activities amounts. Also, for the governmental activities, compensated
absences are generally liquidated by the Accrued leave liability internal service fund and claims and judgments by the
Risk Management internal service fund.
12. Contingencies and Litigation
As of December 31, 2013, there were a small number of claims for damages and lawsuits pending against the City. In the
opinion of the Citys legal counsel, neither the potential liability for any single claim or lawsuit, nor the aggregate potential
liability arising from all actions currently pending would materially affect the financial condition of the City.
As discussed in Note 10, Long-Term Debt, the City is contingently liable for repayment of refunded debt.
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.
13. Restricted Net Position
The government-wide statement of net position reports $5,883,934 of restricted net position, all of which is restricted by
enabling legislation and external contractual commitments.
14. Interfund Balances and Transfers
A. Interfund Balances
Interfund balances at December 31, 2013, were as follows:
Due From
GeneralOtherWaste-OtherInternal
FundGovtWaterWaterGolfProprietaryServiceTotal
General Fund$ -$ 49,273$ 119,508$ 279,442$ -$ 16,634$ -$ 464,857
Other governmental funds 14,006 18,101 5,122 38,813 669 76,711
Water 89,161 89,161
Wastewater 55,935 13,316 91,423 339 161,013
Other proprietary funds 12,874 17,433 30,307
Internal Service 35,539 2,057 4,094 2,902 1,943 1,581 1,242 49,358
Total$ 207,515$ 82,747$ 220,147$ 299,777$ 1,943$ 57,367$ 1,911$ 871,407
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 2013. 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.
Loaned To
Yr of final
GeneralOther
Loaned FromPurposePayment FundGovtGolf CourseTotal
WaterPark Land2025$ 151,497$ - $ - 151,497
Internal serviceEquipment purchase2016 - 261,000261,000
Internal serviceConference Ctr Exp2020 385,000385,000
General FundPark Plaza cash flow2014 15,00015,000
Total$ 151,497$ 400,000$ 261,000$ 812,497
B. Interfund Transfers
Interfund transfers at December 31, 2013 were as follows:
Transfer From
GeneralOtherWaste-Other
FundGovtWaterWaterProprietaryTotal
General Fund$ -$ 222,550$ 1,366,011$ 2,621,252$ 144,522$ 4,354,335
Other governmental funds 731,755 459,437 500,000 550,000 337,217 2,578,409
Other proprietary funds 27,000 27,000
Total$ 758,755$ 681,987$ 1,866,011$ 3,171,252$ 481,739$ 6,959,744
Interfund transfers are the flow of assets without equivalent flows of assets in return and without a requirement for
repayment. Generally funds flow between funds with tax or other resources to funds for payment of debt service,
capital construction or in support of operations. This category also includes payment in lieu of taxes levied by the
General fund on city utility funds that are not payments for, and are not reasonably equivalent in value to, services
provided.
City of Bremerton / 62
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Significant transfers during 2013 were as follows:
A total of $1,281,326 was transferred into the Pacific Avenue Construction capital projects fund from the General
($231,326), Water ($500,000) and Wastewater ($550,000) funds. The transfers were to fund the Citys portion of the
thth
reconstruction of the roadway and utilities on Pacific Avenue between 6 and 11 Streets.
$385,000 was transferred from the General fund to the Conference Center Expansion capital projects fund for the
construction of expanded conference facilities on the third floor of the Kitsap Transit building adjacent to the
Harborside Conference Center.
$4,430,698 was transferred from the Citys three utilities to the General ($4,188,976) and Street
($241,722) funds for the payment in lieu of taxes levied on those funds. The transfers were from
the Water ($1,366,011), Wastewater ($2,621,252) and Stormwater ($443,435) proprietary funds.
15. Receivable and Payable Balances
A.Receivables
Receivables at December 31, 2013 were as follows:
SpecialNotes
AccountsTaxesAssessmentsContractsOtherTotal
Governmental Activities:
General Fund$ 1,532,394$ 2,263,332$ 13,492-$ $ -$ 3,809,218
Non-major and other funds 296,879 314,331 281,557- - 892,767
Reconciliation of balances in fund
financial statements to government-wide
financial statements - - - - 17,348 17,348
Total governmental activities$ 1,829,273$ 2,577,663$ 295,049-$ $ 17,348$ 4,719,333
Business-Type Activities:
Water$ 1,565,461$ -$ 318,231$ 171,356$ 7,075$ 2,062,123
Golf - - - - 538 538
Wastewater 2,478,355 6,442 14,573- 6,102 2,505,472
Other Proprietary Funds 1,035,972 - - - 2,847 1,038,819
Reconciliation of balances in fund
financial statements to government-wide
financial statements - - (51,207)- 7,295 (43,912)
Total business-type activities$ 5,079,788$ 6,442$ 318,231$ 134,722$ 23,857$ 5,563,040
B.Payables
Accounts Payable and other accrued liabilities at December 31, 2013 were as follows:
Salaries and
VendorsBenefitsRetainageOtherTotal
Governmental Activities:
General Fund$ 580,568$ -$ 1,735$ -$ 582,303
Non-major and other funds 1,069,967 - 69,002 -$ 1,138,969
Reconciliation of balances in fund
financial statements to government-
wide financial statements 126,855 - - 247,316 374,171
Total governmental activities$ 1,777,390$ -$ 70,737$ 247,316$ 2,095,443
Business-Type Activities:
Water$ 287,110$ -$ -$ -$ 287,110
Golf 139,724 - -$ - 139,724
Wastewater 352,911 - 115,234 - 468,145
Other Proprietary funds 55,481 - 29,290 - 84,771
Reconciliation of balances in fund
financial statements to government-
wide financial statements
976 - - - 976
Total business-type activities$ 836,202$ -$ 144,524$ -$ 980,726
16. Post Employment Benefits other than Pension
Statement No. 45 of the Governmental Accounting Standards Board,
Accounting and Financial Reporting by Employers
establishes standards for reporting of post employment benefits other
for Postemployment Benefits Other Than Pensions,
than pensions for financial statement for periods beginning after December 15, 2007.
Plan Description
As required by the Revised Code of Washington (RCW) Chapter 41.26, the City provides lifetime medical care for
members of the Law Enforcement Officers and Firefighters (LEOFF) retirement system hired before October 1, 1977
under a defined benefit healthcare plan administered by the City. The members necessary hospital, medical, and nursing
care expenses not payable by workers 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 Citys 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 Citys Comprehensive Annual Financial Report.
Funding Policy
Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by RCW. The Citys funding
policy is based upon pay-as-you-go financing requirements.
Annual OPEB Cost and Net OPEB Obligation
The Citys 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 fifteen years as of January 1, 2012. The following table
shows the components of the Citys annual OPEB cost for the year, the amount actually contributed to the plan, and
changes in the Citys net OPEB. The net OPEB obligation of ($105,296) is included as a noncurrent asset on the
Statement of Net Position.
City of Bremerton / 64
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Fiscal Year Ending
12/31/13
Determination of Annual Required Contribution:
Annual Normal Cost $ 1,492,940
Interest on Amortization Payment (11,498)
Annual Required Contribution (ARC)$ 1,481,442
Determination of NET OPEB Obligation:
Annual Required Contribution$ 1,481,442
Adjustment to ARC 33,727
Annual OPEB Cost$ 1,515,169
Contributions (1,237,918)
Change in Net OPEB Obligations$ 277,251
Net OPEB Obligations - beginning of year$ (382,547)
Net OPEB Obligations - end of year$ (105,296)
* Unfunded Actuarial Accrued Liability (UAAL)
The Citys OPEB cost, the percentage OPEB cost contributed to the plan and the net OPEB Assets for 2013 and the
preceding three years, was as follows:
Fiscal yearAnnual OPEBContribution as a Net OPEB
EndedCostPercentage of OPEB CostObligation
12/31/20101,366,185$ 105.61%$ (357,107)
12/31/20111,366,185$ 104.22%$ (414,716)
12/31/20121,515,169$ 102.17%$ (382,547)
12/31/20131,515,169$ 122.40%$ (105,296)
Funded Status and Funding Progress
As of December 31, 2011, the most recent actuarial valuation date, the plan was 0% funded. The accrued liability for
benefits was $17,942,584 and the actuarial value of the assets was $0 resulting in a UAAL of $17,942,584.
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 December 31, 2011, 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 six years
was used along with a long term care inflation rate of 3.0%.
The UAAL is being amortized on an open amortization level dollar amount over 15 years. The remaining amortization
period at December 31, 2013 was 13 years.
17. Segment Information
The City operates a utility system providing water, wastewater and stormwater management services to the citizens of
Bremerton and a portion of Kitsap County outside city boundaries. Operations are financed by user fees imposed on
customers of each utility. The City has issued revenue bonds to finance improvements to its sewer system. While the
operations of each utility are accounted for in separate funds, the repayment of the revenue bonds relies on the combined
revenues of all three utilities. In addition, the City operates a public golf course whose operations are funded entirely
through user fees. With the exception of the combined utility, there are no revenue bonds issued or other revenue-
backed debt outstanding for which full, detailed segment data is not provided in the proprietary fund financial
statements.
The key financial data for the year ended December 31, 2013, for the combined utility operations are as follows:
Condensed Statement of Net Position
Assets
Current assets$ 13,787,265
Restricted assets1,746,656
Capital assets157,760,760
Other assets672,989
Total assets173,967,670
Liabilities
Current liabilities4,582,822
Due to other funds519,924
Payable from restricted assets81,289
Long-term liabilities21,214,287
Total liabilities26,398,322
Net Position
Restricted for debt service1,541,910
Restricted for capital replacement123,457
Unrestricted12,388,654
Net investment in capital assets133,515,327
Total net position$ 147,569,348
City of Bremerton / 66
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Condensed Statement of Revenues, Expenses and Changes in Net Position
T
otal operating revenues$ 22,970,729
Operating Expenditures:
Operations & maintenance12,907,805
Depreciation/amortization/depletion5,346,891
Total operating expenses18,254,696
Operating income(loss)4,716,033
Non-Operating Revenues/Expenses
Interest revenue/expense (net)(376,722)
Other (net)337,276
Total non-operating revenues/expenses(39,446)
Capital contributions3,192,553
Transfers(5,037,263)
Change in net position2,831,877
Beginning net position144,864,815
Prior period adjustment(127,344)
Ending net position$ 147,569,348
Condensed Statement of Cash Flows
Net cash provided By:
(a) Operating activities$ 9,656,831
(b) Noncapital financing activities(4,101,708)
(c) Capital and related financing activities(7,788,191)
(d) Investing activities1,248,092
Beginning cash and investment balance4,985,274
Ending cash and investment balance$ 4,000,298
18. Accounting and Reporting Changes
The financial statements reflect the implementation of Statement No. 65 of the Governmental Accounting Standards
Board (GASB) Items Previously Reported as Assets and Liabilities. The objective of this Statement is to either (a)
properly classify certain items that were previously reported as assets and liabilities as deferred outflows of resources or
deferred inflows of resources or (b) recognize certain items that were previously reported as assets and liabilities as
outflow of resources (expenses or expenditures) or inflows of resources (revenues).
19. Prior Period Adjustments
GASB Statement No. 65, implemented in 2013, changed the recognition of debt issuance costs as an expense of the
period in which the costs are incurred. Implementation guidance requires that the cumulative effect of applying this
Statement should be reported as a restatement of beginning net position or fund balance for the earliest period reported.
The Government wide and proprietary fund statements reflect prior period adjustments of ($244,420) and ($148,347)
respectively as a result of implementation of this statement.
Required Supplementary Information
LEOFF 1 Retiree Medical Benefits
Schedule of Funding Progress
ActuarialUAAL as a
ActuarialAccruedUnfunded ActuarialPercentage
Fiscal YearValue ofLiability UnitAccrued LiabilitiesFundedCoveredof Covered
EndedAssetsCost(UAAL)RatioPayrollPayroll
12/31/2008$ 16,191,238-$ $ 16,191,2380.0%$ 673,1252405.38%
12/31/2009$ 21,632,822-$ $ 21,632,8220.0%$ 461,5674686.82%
12/31/2011$ 17,942,584-$ $ 17,942,5840.0%$ 214,9348300.00%
City of Bremerton / 68
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City of Bremerton / 70
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City of Bremerton / 74
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Arterial Street Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
for the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental 2,508,500 836,000 617,048 (218,952)
Charges for services - 202,720- 202,720
Fines and forfeitures - - - -
Other revenue 400,000 - (469) (469)
Total revenues 2,908,500 836,000 819,299 (16,701)
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure 3,070,000 1,091,000 985,748 105,252
Debt service - - - -
Transfers - - - -
Total expenditures3,070,0001,091,000985,748105,252
Excess (deficiency) of revenues over
expenditures (161,500) (255,000) (166,449) 88,551
Fund balances-beginning 289,831 426,688 426,688 -
Fund balances-ending$ 128,331$ 171,688$ 260,239$ 88,551
City of Bremerton / 76
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Street Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
for the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ 455,000$ 455,000$ 497,088$ 42,088
Licenses and permits - - - -
Intergovernmental 1,207,550 1,207,550 788,807 (418,743)
Charges for services 445,000 445,000 170,879 (274,121)
Fines and forfeitures - - - -
Other revenue 422,300 449,243 586,054 136,811
Total revenues 2,529,850 2,556,793 2,042,828 (513,965)
EXPENDITURES
Personnel 1,089,700 1,068,700 1,023,633 45,067
Supplies, services & taxes 1,236,157 1,218,757 1,106,551 112,206
Capital expenditure 475,000 513,400 63,623 449,777
Debt service - - - -
Transfers - - - -
Total expenditures2,800,8572,800,8572,193,807607,050
Excess (deficiency) of revenues over
expenditures (271,007) (244,064) (150,979) 93,085
Fund balances-beginning 446,341 387,331 387,331 -
Fund balances-ending$ 175,334$ 143,267$ 236,352$ 93,085
Contingency Reserve Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
for the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental -- - -
Charges for services -- - -
Fines and forfeitures -- - -
Other revenue 230,300300 230,303 3
Total revenues 300 230,300 230,303 3
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure - - - -
Debt service - - - -
Transfers - - - -
Total expenditures----
Excess (deficiency) of revenues over
expenditures 300 230,300 230,303 3
Fund balances-beginning 232,305 234,192 234,192 -
Fund balances-ending$ 232,605$ 464,492$ 464,495$ 3
City of Bremerton / 78
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Lodging Tax Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
for the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ 390,000$ 390,000$ 388,620$ (1,380)
Licenses and permits - - - -
Intergovernmental - - - -
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue 100 100 288 188
Total revenues 390,100 390,100 388,908 (1,192)
EXPENDITURES
Personnel - - - -
Supplies, services & taxes 226,000 226,000 226,000 -
Capital expenditure - - - -
Debt service - - - -
Transfers 170,000 170,000 155,000 15,000
Total expenditures396,000396,000381,00015,000
Excess (deficiency) of revenues over
expenditures (5,900) (5,900) 7,908 13,808
Fund balances-beginning 96,862 135,214 135,214 -
Fund balances-ending$ 90,962$ 129,314$ 143,122$ 13,808
Community Development Block Grant Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
for the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental 2,289,793 2,289,793 591,972 (1,697,821)
Charges for services 30,000 30,000 35,230 5,230
Fines and forfeitures -
Other revenue 88,100 103,100 30,550 (72,550)
Total revenues 2,407,893 2,422,893 657,752 (1,765,141)
EXPENDITURES
Personnel 115,200 115,200 113,637 1,563
Supplies, services & taxes 2,125,323 2,125,323 515,460 1,609,863
Capital expenditure - - - -
Debt service - - - -
Transfers 160,850 165,721 11,598 154,123
Total expenditures2,401,3732,406,244640,6951,765,549
Excess (deficiency) of revenues over
expenditures 6,520 16,649 17,057 408
Fund balances-beginning 1,440,816 251,951 251,885 (66)
Fund balances-ending$ 1,447,336$ 268,600$ 268,942$ 342
City of Bremerton / 80
_____________________________________________________________________________________________________________________________
Abatement Revolving Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
for the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental -- - -
Charges for services 500500 6,760 6,260
Fines and forfeitures 5,000 5,000 11,090 6,090
Other revenue 500 500 771 271
Total revenues 6,000 6,000 18,621 12,621
EXPENDITURES
Personnel - - - -
Supplies, services & taxes 42,000 42,000 5,287 36,713
Capital expenditure - - - -
Debt service - - - -
Transfers - - - -
Total expenditures42,00042,0005,28736,713
Excess (deficiency) of revenues over
expenditures (36,000) (36,000) 13,334 49,334
Fund balances-beginning 230,613 248,229 248,229 -
Fund balances-ending$ 194,613$ 212,229$ 261,563$ 49,334
Police Special Projects Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
for the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental -- - -
Charges for services -- - -
Fines and forfeitures 18,000 18,000 21,093 3,093
Other revenue 71,200 71,200 157,845 86,645
Total revenues 89,200 89,200 178,938 89,738
EXPENDITURES
Personnel - - - -
Supplies, services & taxes 438,902 438,902 356,054 82,848
Capital expenditure 50,000 50,000 - 50,000
Debt service - - - -
Transfers - - - -
Total expenditures488,902488,902356,054132,848
Excess (deficiency) of revenues over
expenditures (399,702) (399,702) (177,116) 222,586
Fund balances-beginning 740,038 790,525 790,525 -
Fund balances-ending$ 340,336$ 390,823$ 613,409$ 222,586
City of Bremerton / 82
_____________________________________________________________________________________________________________________________
Public Access TV Operations Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits 240,000 240,000 271,863 31,863
Intergovernmental 38,000 38,000 - (38,000)
Charges for services 96,700 96,700 110,104 13,404
Fines and forfeitures - - - -
Other revenue 200 200 53,552 53,352
Total revenues 374,900 374,900 435,519 60,619
EXPENDITURES
Personnel 238,600 248,300 241,100 7,200
Supplies, services & taxes 58,210 70,210 66,829 3,381
Capital expenditure 38,000 16,300 - 16,300
Debt service - - - -
Transfers 25,000 25,000 25,000 -
Total expenditures359,810359,810332,92926,881
expenditures15,09015,090102,59087,500
Fund balances-beginning141,319207,482207,482-
Fund balances-ending$ 156,409$ 222,572$ 310,072$ 87,500
Gift and Donation Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental -- - -
Charges for services 1,500 1,500 - (1,500)
Fines and forfeitures - - - -
Other revenue 5,125 5,125 9,547 4,422
Total revenues 6,625 6,625 9,547 2,922
EXPENDITURES
Personnel - - - -
Supplies, services & taxes 10,100 16,700 7,158 9,542
Capital expenditure - - - -
Debt service - - - -
Transfers - - - -
Total expenditures10,10016,7007,1589,542
expenditures(3,475)(10,075)2,38912,464
Fund balances-beginning68,13679,53479,534-
Fund balances-ending$ 64,661$ 69,459$ 81,923$ 12,464
City of Bremerton / 84
_____________________________________________________________________________________________________________________________
Trial Improvement Revenue Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental 22,000 22,000 22,796 796
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue - - 183 183
Total revenues 22,000 22,000 22,979 979
EXPENDITURES
Personnel 23,000 23,000 13,997 9,003
Supplies, services & taxes - - - -
Capital expenditure - - - -
Debt service - - - -
Transfers - - - -
Total expenditures23,00023,00013,9979,003
expenditures(1,000)(1,000)8,9829,982
Fund balances-beginning46,33147,39747,397-
Fund balances-ending$ 45,331$ 46,397$ 56,379$ 9,982
One Percent For Arts Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental -- - -
Charges for services -- - -
Fines and forfeitures -- - -
Other revenue 100100 162 62
Total revenues 100100 162 62
EXPENDITURES
Personnel -- - -
Supplies, services & taxes 500500 - 500
Capital expenditure 10,000 10,000 - 10,000
Debt service - - - -
Transfers - - - -
Total expenditures10,50010,500-10,500
Excess (deficiency) of revenues over
expenditures (10,400) (10,400) 162 10,562
Fund balances-beginning 51,330 51,744 51,744 -
Fund balances-ending$ 40,930$ 41,344$ 51,906$ 10,562
City of Bremerton / 86
_____________________________________________________________________________________________________________________________
Conference Center Operations Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental -- - -
Charges for services 1,381,674 1,381,674 1,239,957 (141,717)
Fines and forfeitures - - - -
Other revenue 163,500 163,500 163,698 198
Total revenues 1,545,174 1,545,174 1,403,655 (141,519)
EXPENDITURES
Personnel - - - -
Supplies, services & taxes 1,559,053 1,559,053 1,428,349 130,704
Capital expenditure - - - -
Debt service - - - -
Transfers - 385,000- (385,000)
Total expenditures1,559,0531,559,0531,813,349(254,296)
Excess (deficiency) of revenues over
expenditures (13,879) (13,879) (409,694) (395,815)
Fund balances-beginning 385,982 241,875 241,876 1
Fund balances-ending$ 372,103$ 227,996$ (167,818)$ (395,814)
Transportation Benefit District Blended Component Unit
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ 350,000$ 350,000$ 431,866$ 81,866
Licenses and permits - - - -
Intergovernmental - - - -
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue - - 486 486
Total revenues 350,000 350,000 432,352 82,352
EXPENDITURES
Personnel - - - -
Supplies, services & taxes 500,000 750,000 53,629 696,371
Capital expenditure - - - -
Debt service - - - -
Transfers - - - -
Total expenditures500,000750,00053,629696,371
expenditures(150,000)(400,000)378,723778,723
Fund balances-beginning205,983567,950189,227(378,723)
Fund balances-ending$ 55,983$ 167,950$ 567,950$ 400,000
City of Bremerton / 88
_____________________________________________________________________________________________________________________________
Bond Debt Service Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ 25,943$ 25,943$ -$ (25,943)
Licenses and permits - - - -
Intergovernmental - - - -
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue 200 200 106 (94)
Total revenues 26,143 26,143 106 (26,037)
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure - - - -
Debt service - - - -
Transfers - - - -
Total expenditures----
expenditures26,14326,143106(26,037)
Fund balances-beginning10,01128,88428,884-
Fund balances-ending$ 36,154$ 55,027$ 28,990$ (26,037)
2010 LTGO Debt Service Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ 330,000$ 330,000$ 339,455$ 9,455
Licenses and permits - - - -
Intergovernmental 120,085 114,835 117,966 3,131
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue 41,000 46,250 46,004 (246)
Total revenues 491,085 491,085 503,425 12,340
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure - - - -
Debt service 548,480 548,830 548,399 431
Transfers - - - -
Total expenditures548,480548,830548,399431
expenditures(57,395)(57,745)(44,974)12,771
Fund balances-beginning153,408163,039163,039-
Fund balances-ending$ 96,013$ 105,294$ 118,065$ 12,771
City of Bremerton / 90
_____________________________________________________________________________________________________________________________
2010 UTGO Ref/LTGO (B) Debt Service Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ 809,000$ 809,000$ 831,013$ 22,013
Licenses and permits - - - -
Intergovernmental 37,675 36,025 34,678 (1,347)
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue 177,700 179,350 178,682 (668)
Total revenues 1,024,375 1,024,375 1,044,373 19,998
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure - - - -
Debt service 1,063,750 1,065,150 1,064,377 773
Transfers - - - -
Total expenditures1,063,7501,065,1501,064,377773
expenditures(39,375)(40,775)(20,004)20,771
Fund balances-beginning47,40944,93744,937-
Fund balances-ending$ 8,034$ 4,162$ 24,933$ 20,771
Government Center LTGO Debt Services Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental -- - -
Charges for services -- - -
Fines and forfeitures -- - -
Other revenue 241,648 241,648 242,063 415
Total revenues 241,648 241,648 242,063 415
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure - - - -
Debt service 243,300 243,800 243,299 501
Transfers - - - -
Total expenditures243,300243,800243,299501
Excess (deficiency) of revenues over
expenditures (1,652) (2,152) (1,236) 916
Fund balances-beginning 3,652 3,313 3,313 -
Fund balances-ending$ 2,000$ 1,161$ 2,077$ 916
City of Bremerton / 92
_____________________________________________________________________________________________________________________________
Public Access TV Operations Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental -- - -
Charges for services -- - -
Fines and forfeitures -- - -
Other revenue 496- 102 (394)
Total revenues 496- 102 (394)
EXPENDITURES
Personnel -- - -
Supplies, services & taxes -- - -
Capital expenditure -- - -
Debt service 51,000- 50,795 205
Transfers - 21,000 20,810 190
Total expenditures-72,00071,605395
expenditures-(71,504)(71,503)1
Fund balances-beginning-71,50471,503(1)
Fund balances-ending$ -$ -$ -$ -
Park Plaza Phase II Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental 404,500- 214,504 (189,996)
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue - 21,701 21,414 (287)
Total revenues 426,201- 235,918 (190,283)
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure 534,191- 332,671 201,520
Debt service - - - -
Transfers - - - -
Total expenditures 534,191-332,671201,520
expenditures (107,990)-(96,753)11,237
Fund balances-beginning 107,990-107,990-
Fund balances-ending$ -$ -$ 11,237$ 11,237
City of Bremerton / 94
_____________________________________________________________________________________________________________________________
General Government Improvements Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ 300,000$ 420,000$ 481,898$ 61,898
Licenses and permits - - - -
Intergovernmental - - - -
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue 150 850 14,602 13,752
Total revenues 300,150 420,850 496,500 75,650
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure - - - -
Debt service - - - -
Transfers 345,000 391,900 389,579 2,321
Total expenditures345,000391,900389,5792,321
expenditures(44,850)28,950106,92177,971
Fund balances-beginning138,712258,780258,7811
Fund balances-ending$ 93,862$ 287,730$ 365,702$ 77,972
Park Facilities Construction Capital Projects Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental 29,942- 38,049 8,107
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue 160,850 160,850 58,797 (102,053)
Total revenues 160,850 190,792 96,846 (93,946)
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure 160,850 429,192 245,730 183,462
Debt service - - - -
Transfers - - - -
Total expenditures160,850429,192245,730183,462
expenditures (238,400)-(148,884)89,516
Fund balances-beginning447,766616,317616,317-
Fund balances-ending$ 447,766$ 377,917$ 467,433$ 89,516
City of Bremerton / 96
_____________________________________________________________________________________________________________________________
Evergreen Park Remediation Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental 24,000 52,116 45,260 (6,856)
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue 4,500 19,500 13,282 (6,218)
Total revenues 28,500 71,616 58,542 (13,074)
EXPENDITURES
Personnel - - 1,726 (1,726)
Supplies, services & taxes - - 58,856 (58,856)
Capital expenditure 30,000 73,656 - 73,656
Debt service - - - -
Transfers - - - -
Total expenditures30,00073,65660,58213,074
expenditures(1,500)(2,040)(2,040)-
Fund balances-beginning2,5312,0402,040-
Fund balances-ending$ 1,031$ -$ -$ -
Lower Wheaton Way Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits 25,950 1,339,178 66,366 (1,272,812)
Intergovernmental - - - -
Charges for services - - - -
Fines and forfeitures - - 1,166 1,166
Other revenue - - - -
Total revenues 25,950 1,339,178 67,532 (1,271,646)
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure 30,912 1,681,766 120,889 1,560,877
Debt service - - - -
Transfers - - - -
Total expenditures30,9121,681,766120,8891,560,877
expenditures(4,962)(342,588)(53,357)289,231
Fund balances-beginning357,045347,402347,402-
Fund balances-ending$ 352,083$ 4,814$ 294,045$ 289,231
City of Bremerton / 98
_____________________________________________________________________________________________________________________________
Pacific Avenue Construction Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2013
Variance with
OriginalFinalFinal Budget
BudgetBudgetActualPositive
201320132013(Negative)
REVENUES
Taxes$ --$ -$ -$
Licenses and permits -- - -
Intergovernmental 2,608,674- 2,013,442 (595,232)
Charges for services - - - -
Fines and forfeitures - - - -
Other revenue 1,350,000- 1,280,903 (69,097)
Total revenues 3,958,674- 3,294,345 (664,329)
EXPENDITURES
Personnel - - - -
Supplies, services & taxes - - - -
Capital expenditure 3,958,674- 2,342,022 1,616,652
Debt service - - - -
Transfers - - - -
Total expenditures 3,958,674-2,342,0221,616,652
expenditures- 952,323-952,323
Fund balances-beginning----
Fund balances-ending$ -$ 952,323-$ $ 952,323
Combining Statement of Net Position
Other Proprietary Funds
December 31, 2013
Business-type Activities
Enterprise Funds
Gorst Creek
Watershed
StormwaterTotal
ASSETS
Current assets:
Cash and cash equivalents$ 853,336$ 10,895$ 864,231
Investments 1,171,013 14,950 1,185,963
External receivables 1,035,972 - 1,035,972
Interest receivables 2,811 36 2,847
Due from other funds 30,307 - 30,307
Due from other governments 308,535 52,494 361,029
Total current assets 3,401,974 78,375 3,480,349
Noncurrent assets:
Capital assets net of depreciation 6,118,371 - 6,118,371
Total noncurrent assets 6,118,371 - 6,118,371
Total assets 9,520,345 78,375 9,598,720
Deferred outflows of resources - - -
Total assets and deferred outflows
$ 9,520,345$ 78,375$ 9,598,720
LIABILITIES
Current liabilities:
Accounts/contract payable 84,771 - 84,771
Due to other funds 57,367 - 57,367
Employee wages payable 87,410 - 87,410
Other accrued liabilities 2,184 - 2,184
Current portion of long-term debt 9,864 - 9,864
Custodial accounts 500 - 500
Total current liabilities 242,096 - 242,096
Noncurrent liabilities:
Bonds, notes and loans payable 98,642 - 98,642
Compensated absences 9,764 - 9,764
Total noncurrent liabilities 108,406 - 108,406
Total liabilities 350,502 - 350,502
Deferred inflows of resources - - -
Total liabilities and deferred inflows
$ 350,502$ - $ 350,502
NET POSITION
Net investment in capital assets 6,009,865 - 6,009,865
Unrestricted 3,159,978 78,375 3,238,353
Total net position
$ 9,169,843$ 78,375$ 9,248,218
See accompanying notes to the financial statements.
City of Bremerton / 100
_____________________________________________________________________________________________________________________________
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
Other Proprietary Funds
for the Year Ended December 31, 2013
Business-type Activities
Enterprise Funds
Gorst Creek
Watershed
StormwaterTotal
OPERATING REVENUES
Charges for services$ 2,410,168$ -$ 2,410,168
Other operating revenue 72,925 323,772 396,697
Total operating revenues 2,483,093 323,772 2,806,865
OPERATING EXPENSES
General operation 384,448 410,665 795,113
Maintenance 764,673 764,673-
Customer service and marketing 103,819 103,819-
General administration 264,037 264,037-
Depreciation and amortization 106,668 106,668-
Property, excise and B&O taxes 38,193 38,193-
Total operating expenses 1,661,838 410,665 2,072,503
Operating income (loss) 821,255 (86,893) 734,362
NONOPERATING REVENUES (EXPENSES)
Interest and investment revenue 7,216 210 7,426
Interest expense (4,538) (4,538)-
Gain (loss) on capital asset disposal - - -
Other nonoperating revenue/expense 24 - 24
Total nonoperating revenues (expenses) 2,702 210 2,912
Income (loss) before contributions and transfers 823,957 (86,683) 737,274
Capital contributions 684,993 684,993-
Transfers to other funds (481,739) (481,739)-
Transfers from other funds 27,000- 27,000
Change in net assets 1,027,211 (59,683) 967,528
Total net position - beginning 8,142,632 138,058 8,280,690
Total net position - ending$ 9,169,843$ 78,375$ 9,248,218
See accompanying notes to the financial statements.
Combining Statement of Cash Flows
Other Proprietary Funds
for the Year Ended December 31, 2013
Page 1 of 2
Business-type Activities
Nonmajor Enterprise Funds
Gorst Creek
Watershed
StormwaterTotal
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers$ 2,169,632$ -$ 2,169,632
Cash payments to suppliers (588,105) (442,904) (1,031,009)
Cash payments to employees (1,136,853) (111) (1,136,964)
Other operating receipts and payments 72,925 415,811 488,736
Net cash provided by operating activities 517,599 (27,204) 490,395
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfer ins - 27,000 27,000
Transfer outs (473,718) - (473,718)
Other nonoperating revenues/expenses 24 - 24
Net cash provided (used) by noncapital financing activities (473,694) 27,000 (446,694)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (815,654) - (815,654)
Capital contributions 115,147 - 115,147
Loan/grant proceeds 638,809 - 638,809
Principal paid on other debt (9,865) - (9,865)
Interest paid on bonds and other debt (4,735) - (4,735)
Net cash provided (used) for capital and related financing
(76,298) - (76,298)
activities
CASH FLOW FROM INVESTING ACTIVITIES
Net change in investments 4,245 (133) 4,112
Interest on loans and investments 5,264 185 5,449
Net cash provided (used) in investing activities 9,509 52 9,561
Net increase (decrease) in cash and cash equivalents (22,884) (152) (23,036)
Cash and equivalents - beginning 876,220 11,047 887,267
Cash and equivalents - ending
$ 853,336$ 10,895$ 864,231
Cash at the end of the year consists of:
Operating fund cash 853,336 10,895 864,231
Restricted cash - - -
Total cash at end of year
$ 853,336$ 10,895$ 864,231
See accompanying notes to the financial statements.
City of Bremerton / 102
_____________________________________________________________________________________________________________________________
Combining Statement of Cash Flows
Other Proprietary Funds
for the Year Ended December 31, 2013
Page 2 of 2
Business-type Activities
Nonmajor Enterprise Funds
Gorst Creek
StormwaterWatershedTotal
Reconciliation of operating income to net cash provided by
operating activities:
Operating income (loss)$ 821,255 $ (86,893)$ 734,362
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 106,668 - 106,668
Decrease (increase) in receivables (234,955) - (234,955)
Decrease (increase) in due from other funds/govt 34,174 92,039 126,213
Increase (decrease) in accounts payable (185,636) (32,350) (217,986)
Increase (decrease) in due to other funds/govt (43,878) - (43,878)
Increase (decrease) in employee wages payable 11,509 - 11,509
Increase (decrease) in employee leaves payable 8,462 - 8,462
Net cash provided by operating activities
$ 517,599$ (27,204)$ 490,395
Noncash investing, capital and financial activities
Developers contributed infrastructure$ 166,680 $ - $ 166,680
See accompanying notes to the financial statements.
Combining Statement of Net Position
Internal Service Funds
December 31, 2013
Governmental Activities
Internal Service Funds
Accrued Equipment
RiskEmployment Leave Rental EquipmentInformation
ManagementSecurityLiabilityOperationsReserveTechnologyTotal
ASSETS
Current assets:
Cash and cash equivalents$ 1,026,006 $ 161,162$ 36,593$ 84,917$ 2,214,679$ 114,135$ 3,637,492
Restricted investments 100,000 - - - - - 100,000
Investments 1,307,963 221,159 50,215 116,529 3,039,149 156,625 4,891,640
External receivables - - - - - - -
Restricted special assessments receivables - - - - - - -
Interest receivables 3,379 531 120280 7,295 376 11,981
Due from other funds 13,911 10,516 10,535 7,920 647,943 4,533 695,358
Due from other governments - - - - - 5,407 5,407
Inventories - - - 89,928 - - 89,928
Prepayments 378,276 - - - - - 378,276
Total current assets 2,829,535 393,368 97,463 299,574 5,909,066 281,076 9,810,082
Noncurrent assets:
Capital assets net of depreciation - - - - 3,293,541 1,652 3,295,193
Total noncurrent assets - - - - 3,293,541 1,652 3,295,193
Total assets
$ 2,829,535$ 393,368$ 97,463$ 299,574$ 9,202,607$ 282,728$ 13,105,275
Deferred outflows of resources - - - - - - -
LIABILITIES
Current liabilities:
Accounts/contract payable 315,615 4,782 - 76,915 976 39,052 437,340
Due to other funds - - 491,274 100 488 1,911
Employee wages payable - - 33,252 42,303 2,787 52,517 130,859
Other accrued liabilities - - - 11 84 13 108
Total current liabilities
$ 315,615$ 4,782$ 33,301$ 120,503$ 3,947$ 92,070$ 570,218
Noncurrent liabilities:
Claims and judgments payable 613,387 - - - - - 613,387
Compensated absences - - - 4,131 - 6,514 10,645
Total noncurrent liabilities 613,387 - - 4,131 - 6,514 624,032
Total liabilities
$ 929,002$ 4,782$ 33,301$ 124,634$ 3,947$ 98,584$ 1,194,250
Deferred inflows of resources - - - - - - -
NET POSITION
Net investment in capital assets - - - - 3,293,541 1,652 3,295,193
Restricted for Worker's Compensation 100,000 - - - - - 100,000
Unrestricted 1,800,533 388,586 64,162 174,940 5,905,119 182,492 8,515,832
Total net position
$ 1,900,533$ 388,586$ 64,162$ 174,940$ 9,198,660$ 184,144$ 11,911,025
See accompanying notes to the financial statements.
City of Bremerton / 104
_____________________________________________________________________________________________________________________________
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
Internal Service Funds
for the Year Ended December 31, 2013
Governmental Activities
Internal Service Funds
Accrued EquipmentEquipment
RiskEmployment Leave RentalRentalInformation
ManagementSecurityLiabilityOperationsReserveTechnologyTotal
OPERATING REVENUES
Charges for services$ 1,536,853$ 238,782$ 237,794$ 1,470,265$ -$ 1,066,372$ 4,550,066
Other operating revenue 1,875 - - 14,047 - - 15,922
Total operating revenues 1,538,728 238,782 2 37,794 1,484,312 - 1,066,372 4,565,988
OPERATING EXPENSES
General operation - 36,645 1 85,740 1,626,559 - 1,075,447 2,924,391
General administration 380,582 - - - - - 380,582
Depreciation and amortization - - - - 579,538 4,505 584,043
Risk transfer payments 493,179 - - - - - 493,179
Payments to claimants & beneficiaries334,059 - - - - -334,059
Total operating expenses1,207,820 36,645 1 85,740 1,626,559 579,538 1,079,9524,716,254
Operating income (loss)330,908202,137 5 2,054 (142,247)(579,538) (13,580)(150,266)
NONOPERATING REVENUES (EXPENSES)
Interest and investment revenue 7,708 1,075 170 967 25,801 975 36,696
Gain (loss) on capital asset disposal - - - -(15,669) -(15,669)
Other nonoperating revenue/expense 9 - - 1,806 35 5,028 6,878
Total nonoperating revenues (expenses) 7,717 1,075 170 2,773 10,167 6,003 27,905
Income (loss) before contributions and transfers338,625203,212 5 2,224 (139,474)(569,371) (7,577)(122,361)
Capital contributions - - - - 28,069 - 28,069
Change in net assets 338,625 203,212 5 2,224 (139,474) (541,302) (7,577) (94,292)
Total net position - beginning1,561,908185,374 1 1,938 314,414 9,739,962 191,72112,005,317
Total net position - ending$ 1,900,533$ 388,586$ 6 4,162$ 174,940$ 9,198,660$ 184,144$ 11,911,025
See accompanying notes to the financial statements.
Combining Statement of Cash Flows
Internal Service Funds
for the Year Ended December 31, 2013
Page 1 of 2
AccruedEquipmentEquipment
RiskEmployment Leave RentalRentalInformation
ManagementSecurityLiabilityOperationsReserveTechnology
Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers$ 1,534,847$ 238,479$ 237,458$ 1,465,323$ -$ 1,066,372$ 4,542,479
Cash payments to suppliers (341,965) (35,630) - (1,057,436) - (1,988,836)(553,805)
Cash payments to employees - - (192,886) (562,715) - (1,253,664)(498,063)
Purchase of insurance (515,685) - - - - - (515,685)
Payment for insurance claims (319,664) - - - - - (319,664)
Other operating receipts and payments - - - 14,047 - - 14,047
Net cash provided by operating activities 357,533 202,849 44,572 (140,781) - 14,504 478,677
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Other nonoperating revenues/expenses 9 - - 8,833 (7,812) 5,029 6,059
Net cash provided (used) by noncapital financing
activities 9 - - 8,833 (7,812) 5,029 6,059
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets - - - - (222,072) - (222,072)
Insurance recoveries - - - - 7,000 - 7,000
Net cash provided (used) for capital and related
financing activities - - - - (215,072) - (215,072)
CASH FLOW FROM INVESTING ACTIVITIES
Net change in investments (221,389) (118,697) (26,057) 73,994 3 08,041 (13,104) 2,788
Issuance of interfund loans - - - - (385,000) - (385,000)
Interest on loans and investments 5,196 619 67 826 19,009 704 26,421
Net cash provided (used) in investing activities(216,193) (118,078) (25,990) 74,820 (57,950) (12,400) (355,791)
Net increase (decrease) in cash and cash
equivalents 141,349 84,771 18,582 (57,128) (280,834) 7,133 (86,127)
Cash and equivalents - beginning 884,657 76,391 18,011 142,045 2,495,513 107,002 3,723,619
Cash and equivalents - ending
$ 1,026,006$ 161,162$ 36,593$ 84,917$ 2,214,679$ 114,135$ 3,637,492
Cash at the end of the year consists of:
Operating fund cash 1,026,006 161,162 36,593 84,917 2 ,214,679 114,135 3,637,492
Restricted cash - - - - - - -
Total cash at end of year
$ 1,026,006$ 161,162$ 36,593$ 84,917$2 ,214,679$ 114,135$ 3,637,492
See accompanying notes to the financial statements.
City of Bremerton / 106
_____________________________________________________________________________________________________________________________
Combining Statement of Cash Flows
Internal Service Funds
for the Year Ended December 31, 2013
Page 2 of 2
AccruedEquipmentEquipment
RiskEmployment Leave RentalRentalInformation
ManagementSecurityLiabilityOperationsReserveTechnologyTotal
Reconciliation of operating income to net cash provided
by operating activities:
Operating income (loss) 330,908 202,137 52,055 (142,248) (579,538) (13,580) (150,266)
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation - - - - 579,538 4,505584,043
Decrease (increase) in due from other funds/govt (2,006) (303) (336) (4,941) - (9,940) (17,526)
Decrease (increase) in prepaid expenses 16,141 - - - - - 16,141
Decrease (increase) in inventory - - 398 - -398
Increase (decrease) in accounts payable (18,221) 1,015 16,461 - 32,331 31,586
Increase (decrease) in due to other funds/govt - - 49 (17,276) - (1,087) (18,314)
Increase (decrease) in employee wages payable - - (7,196) 3,541 - (378)(4,033)
Increase (decrease) in employee leaves payable - - - 3,386 - 2,6406,026
Increase (decrease) in other payables 30,711 - - (102) - 13 30,622
Net cash provided by operating activities
$ 357,533$ 202,849$ 44,572$ (140,781)$ -$ 14,504$ 478,677
Noncash investing, capital and financial activities
Developers contributed infrastructure$ -$ -$ -$ -$ 28,069$ - $ 28,069
Combining Statement of Fiduciary Net Position
Agency Funds
December 31, 2013
SalaryAdministrative
Clearing Trust
Total
Assets
Cash and cash equivalents$ 70,019$ 124,515$ 194,534
Total assets$ 70,019$ 124,515$ 194,534
Deferred outflows of resources$ -$ -$ -
Liabilities
Accounts/contracts payable - 42,252 42,252
Other current liabilities 70,019 82,262 152,281
Total liabilities$ 70,019$ 124,514$ 194,533
Deferred inflows of resources$ -$ -$ -
See accompanying notes to the financial statements.
City of Bremerton / 108
_____________________________________________________________________________________________________________________________
THIS PAGE LEFT BLANK INTENTIONALLY.
2004200520062007200820092010201120122013
Business-Type
Total Net Position
Governmental
180,000,000160,000,000140,000,000120,000,000100,000,0000
80,000,00060,000,00040,000,00020,000,000
City of Bremerton / 110
_____________________________________________________________________________________________________________________________
City of Bremerton / 112
_____________________________________________________________________________________________________________________________
Unassigned
2013 Governmental Fund Balances
0%
Assigned
4%
30%
Committed
20%
Restricted
46%
Nonspendable
2004200520062007200820092010201120122013
Governmental Fund Balances by Fiscal Year
Total Annual Fund Balances
-
18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000
City of Bremerton / 114
_____________________________________________________________________________________________________________________________
2004200520062007200820092010201120122013
Ending Fund Balance
Changes in Fund Balance by Fiscal Year
Beginning Fund Balance
-
25,000,000 20,000,000 15,000,000 10,000,000 5,000,000
City of Bremerton / 116
_____________________________________________________________________________________________________________________________
2004200520062007200820092010201120122013
Total Direct & Overlapping Property Tax Rates
Mileage
8.000006.000004.000002.000000.00000
18.0000016.0000014.0000012.0000010.00000
2004200520062007200820092010201120122013
City of Bremerton Direct Property Tax Rate
Mileage
4.500004.000003.500003.000002.500002.000001.500001.000000.500000.00000
Assessed Valuation of 2013 Top Ten Taxpayers Compared to
5.4%
All Other Taxpayers
Total Taxable Assessed Valuation
Top 10 Taxpayers
94.6%
City of Bremerton / 118
_____________________________________________________________________________________________________________________________
Table 8
Property Tax levies and Collections
Last Ten Fiscal Years
(In Thousands)
% of Total% of
% of Tax Delinquent Tax OutstandingOutstanding
FiscalCurrent TaxLevy TaxTotal TaxCollectionsDelinquentDelinquent to
YearTax LevyCollectionsCollectedCollectionsCollectionsto Tax LevyTaxesTax Levy
20047,1056,78495.48%1956,97998.23%5237.36%
20057,0656,80196.26%2147,01599.29%4987.05%
20067,4317,18896.73%3087,496100.87%6318.49%
20077,6587,40696.71%4367,842102.40%4255.55%
20087,8167,49895.93%1907,68898.36%5066.47%
20098,5078,06494.79%1928,25697.05%7358.64%
20108,6138,20995.31%4118,620100.08%6697.77%
20118,5908,27896.37%2838,56199.66%6557.63%
20128,5878,24295.98%3178,55999.67%6147.15%
20138,6478,22195.07%2908,51198.43%5756.65%
Annual Property Tax Levies and Taxes Collected
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
2004200520062007200820092010201120122013
Table 9
Ratio of Net General Bonded Debt
To Assessed Value and Net Bonded Debt Per Capital
Last Ten Fiscal Years
General Percentage
ObligationNet Bonded
Fiscal AssessedBondedLess DebtNet Bonded Debt to Debt per
YearPopulation*Value**DebtService FundDebtAssessed ValueCapita
200437,5201,713,798,77033,170,000273,70832,896,2921.92%877
200534,5801,848,037,21531,875,139401,16431,473,9751.70%910
200635,9102,222,892,52430,318,664457,62629,861,0381.34%832
200735,8102,692,388,79128,619,400573,65428,045,7461.04%783
200836,8603,114,776,42827,424,767623,38526,801,3820.86%727
200936,6203,084,741,01726,847,185313,94826,533,2370.86%725
201036,1902,899,484,50835,705,685474,30335,231,3821.22%974
201138,7902,748,747,79439,511,239426,51339,084,7261.42%1,008
201239,6502,548,965,49237,768,000275,19037,492,8101.47%946
201337,8502,394,781,60036,260,000203,72536,056,2751.51%953
City of Bremerton / 120
_____________________________________________________________________________________________________________________________
Table 10
Computation of Direct and Overlapping Debt
December 31, 2012
Percentage Applicable
Gross General ObligationAmount Applicable
Jurisdictionto Bremerton
Debt Outstandingto Bremerton
City of Bremerton 36,260,000100.00% 36,260,000
Kitsap County 101,827,4389.17% 9,337,576
Port of Bremerton 3,750,00022.39% 839,625
School District #100 14,398,38975.69% 10,898,141
So. Kitsap Schools #402 * 2,903,7710.20% 5,808
TOTAL 159,139,598 57,341,149
* Non-Voted
Percentage of Direct & Overlapping Debt
Applicable to the City of Bremerton
0%
63%
19%
16%
2%
City of BremertonKitsap CountyPort of Bremerton
School District #100So. Kitsap Schools #402
City of Bremerton / 121
_____________________________________________________________________________________________________________________________
Table11
Computation of Legal Debt Margin
as of December 31, 2013
Total taxable property value for collection in 2013
$2,394,781,600
2.5% ($59,869,540) general purposes limit is allocated between:
Up to 1.5% debt without a vote (councilmanic)
35,921,724
Less: outstanding debt 27,015,000
Less: excess of debt with a vote
Add: available assets 154,840
Equals: remaining debt capacity without a vote 9,061,564
1% general purposes debt with a vote
23,947,816
Less: outstanding debt 9,245,000
Add: assets available 48,885
Equals: remaining debt capacity with a vote 14,751,701
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
Equals remaing debt capacity - open space park and capital facilities, voted -
City of Bremerton / 122
_____________________________________________________________________________________________________________________________
Table 12
Water and Sewer Revenue Bond Coverage
Last Ten Fiscal Years
Maintenance &Net Revenue Current
FiscalGrossOperatingAvailable for Current Coverage
YearRevenueExpenses*Debt ServicePrincipalInterestTotalRatio
200417,379,27410,432,5846,946,6902,270,000533,7202,803,7202.48
200519,516,61211,751,6797,764,9332,390,000413,4102,803,4102.77
200621,732,89410,951,00410,781,8902,555,659305,1442,860,8033.77
200723,009,15211,486,86211,522,2902,815,000242,8163,057,8163.77
200823,021,13213,023,5759,997,557305,000223,202528,20218.93
200922,697,79413,160,5069,537,288320,000210,148530,14817.99
201022,172,23212,563,5199,608,713330,000196,452526,45218.25
201122,869,30412,807,72610,061,578335,000182,328517,32819.45
201223,000,40112,822,74810,177,653350,000167,990517,99019.65
201323,418,12312,907,62510,510,498365,000153,010518,01020.29
* Net of depreceiation, amortization and City taxes
14,000,000
N
et Revenue Available for Debt Service
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2004200520062007200820092010201120122013
Available Net RevenueTotal Debt Principal & Interest
Table 13
Demographic Statistics
Last Ten Fiscal Years
Per Capita
PersonalSchoolNumber ofRate of
FiscalPersonal
12345
YearPopulation Income ($000) IncomeEnrollment Housing Units Unemployment
200437,5201,353,78536,0825,70316,6155.9
200534,5801,334,16938,5825,41216,6075.1
200635,9101,441,50240,1425,20916,6154.7
200735,8101,520,21742,4524,99816,7974.4
200836,8601,623,53544,0465,06117,1714.4
200936,6201,552,89242,4064,83517,1707.4
201036,1901,531,34542,3144,85517,2737.3
201138,7901,672,50643,1175,17516,9157.6
201239,6501,766,29744,5474,90417,0907.4
201337,850--4,90417,2406.9
1
State of Washington, Office of Financial Management.
2
U.S. Department of Commerce - Bureau of Economic Analysis (County data prorated based on local population).
2013 data not available at report date.
3
State of Washington, Office of Financial Management - Office of Superintendent of Public Instruction.
4
State of Washington, Office of Financial Management (post centual estinate).
5
State of Washington, Employment Security Department.
City of Bremerton / 124
_____________________________________________________________________________________________________________________________
Table 14
Miscellaneous Statistics
DATE OF INCORPORATION
October 14, 1901
FORM OF GOVERNMENT
Council - Mayor
Type of Government
Home-Rule Charter
Demographics in 2013
Total Area for City of Bremerton26.9 Square Miles
Number of City Employees 2013
Full-Time Equivalents322.59
Fire Protection
Number of Personnel56
Number of Stations3
Fire and Aid Calls - 20136,907
Priority 1 Response Time (minutes)4:48
Police Protection
Number of Police Officers58
Calls for Service - 201368,088
Average Priority 1 Response Time (minutes) 2:13
Average Priority 2 Response Time (minutes)3:46
Parks & Recreation
Number of Developed Parks35
Number of Park Acres709.50
Senior Centers1
Bremerton Family YMCA1
Community Pool - Jarstad Aquatic Center1
Golf - Gold Mountain Golf Complex1
Ice Arena - Bremerton Ice Arena1
Business Licenses
Number of Business Licenses Issued - 2013 5,806
Number of Business Licenses Issued in City Limits 2,560
Table 14
Miscellaneous Statistics
Water Utility Services 2013
Residential Accounts16,564
Commercial Accounts1,828
Storage Capacity (gallons)33,240,000
Cascade Dam Capacity (gallons)1.4 billion
Average Daily Demand (millions per gallon-MG)6.3
Reservoirs16
Watershed Land (square miles)12.96
Sources:
Surface Supply (MG) 1,281
Ground Supply (MG) 1,017
Miles of Main322
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 2013
Residential Sewer Accounts9,709
Commercial Sewer Accounts927
Miles of Main141
Miles of Force Main31
Sewage Pump Stations39
Grinder Pump Stations82
Westside Wastewater Treatment Plant:
Average Annual Flow - MGD5.0
Hydraulic Peak Capacity - MGD45
Permitted Average12.5
Eastside CSO Plant
Peak Treatment Capacity - MGD20
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 2013
Residential Accounts9,973
Commercial Accounts1,036
Miles of Mains114
It is the mission of the Stormwater Program within the Department to control flooding, enhance water quality, protect sensitive
habitat areas, and optimize the recharge of local aquifers.
City of Bremerton / 126
_____________________________________________________________________________________________________________________________
Table 14
Miscellaneous Statistics
City Streets
Street Miles 135
State Highway Miles 19
Miles of Sidewalks 115
Signalized Traffic Intersections 38
Street Lights:
City Owned 694
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 Roads51
Timber Harvested (board feet)1.1 million
Biosolids applied (cubic yards) 3,570
Reforestation (seedlings planted) 67,710
Public Schools
Bremerton is served primarily by Bremerton School District #100. A small percentage of children attend Central Kitsap
School District #401.
Elementary6
Middle School1
Junior High1
High School1
Vocational School1
Colleges
Olympic CollegeNavy College
Naval Kitsap Bremerton
1600 Chester Ave., Bremerton
360 792-6050
2255 Cole Ave. Bldg. 853, Bremerton
360 476-4282 Ext. 9176
1 800 259-6718
Hospitals
Harrison Medical Center Naval Hospital Bremerton
2520 Cherry Ave., Bremerton1 Boone Road, Bremerton
360 377-39111 800 422-1383
Table 14
Miscellaneous Statistics
Local Transportation
Washington State Ferries
Seattle Bremerton Route - Total Annual Rides 20132,293,388
Kitsap Transit 2013
Foot Ferry
Annual Rides - Port Orchard & Annapolis450,732
Buses (County Wide)
Annual Bus Rides ()2,454,221
Routed Service
Kitsap Access Bus 211,096
Worker/Driver Service513,370New addition
2013 Total Bus Ridership3,178,687New addition
Vanpool and Other
VanLink Service72,797New addition
Vanpool Service226,303New addition
Guaranteed Ride Home139New addition
2013 Total Vanpool Ridership299,239New addition
Total Kitsap Transit Ridership3,928,658New addition
Sources: Washington State Ferries
Kitsap Transit
City of Bremerton / 128
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Table 15
Local Revitalization Financing
Revenues Received
YearFunding
2011$ 146,258
2011 370,613
2012 339,594
2013 337,450