HomeMy WebLinkAbout2017 Annual ReportCity of Bremerton, Washington
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
For the period January 1, 2017 thru December 31, 2017
City of Bremerton, Washington
Annual Financial Report
For the Fiscal Year ended
December 31, 2017
Prepared by the Finance Department
City of Bremerton
345 6th Street, Suite 100
Bremerton, WA 98337
(360)473-5210
Website: www.bremertonwa.gov
City of Bremerton
Comprehensive Annual Financial Report
For the Fiscal Year Ended December 31, 2017
Table of Contents
Page
Introductory Section
Organization Chart ...................................................................................................................................................................1
List of Elected and Appointed Officials ..................................................................................................................................2
Financial Section
Independent Auditor’s Report ............................................................................................................................................4
Management’s Discussion and Analysis ............................................................................................................................7
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ................................................................................................................................................20
Statement of Activities.....................................................................................................................................................21
Fund Financial Statements:
Balance Sheet – Governmental Funds..............................................................................................................................22
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds .................................................................................................................................................23
Reconciliation of the Statement of Revenues, Expenditures, and Changes
In Fund Balances of Governmental Funds to the Statement of Activities ................................................................24
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
General Fund .............................................................................................................................................................25
Statement of Net Position – Proprietary Funds ...............................................................................................................26
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ..........................................27
Statement of Cash Flows – Proprietary Funds .................................................................................................................28
Statement of Fiduciary Net Position – Fiduciary Funds ...................................................................................................30
Notes to the Financial Statements ............................................................................................................................................31
Required Supplementary Information:
LEOFF I Pension Benefits ...............................................................................................................................................69
Schedule of Proportionate Share of Net Pension Liability...............................................................................................70
Schedule of Employer Contribution.................................................................................................................................75
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds ..................................................................................................78
Combining Statement of Revenues, Expenditures and Changes in Fund Balances –Nonmajor Governmental Funds ...........81
Schedules of Revenue, Expenditures, and Changes in Fund Balances – Budget and Actual:
Special Revenue Funds .....................................................................................................................................................84
Debt Service Funds ...........................................................................................................................................................96
Capital Projects Funds ....................................................................................................................................................100
Combining Statement of Net Position – Internal Service Funds ..........................................................................................107
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Internal Service Funds .....................108
Combining Statement of Cash Flows – Internal Service Funds ...........................................................................................109
Combining Statement of Fiduciary Net Position-Agency Funds ..........................................................................................111
Table of Contents
Page
Statistical Section
Financial Trends:
Table 1 – Net Position by Component ...................................................................................................................................112
Table 2 – Changes in Net Position ........................................................................................................................................113
Table 3 – Fund Balance of Government Funds .....................................................................................................................115
Table 4 – Changes in Fund Balances of Government Funds .................................................................................................116
Revenue Capacity:
Table 5 – Assessed and Estimated Actual Value of Taxable Property .................................................................................118
Table 6 – Governmental Activities Tax Revenues by Source ...............................................................................................119
Table 7 – Property Tax Rates Direct and Overlapping Governments Last 10 Fiscal Years .................................................120
Table 8 – Principal Property Taxpayers ................................................................................................................................121
Table 9 - Property Tax Levies and Collections .....................................................................................................................122
Debt Capacity
Table 10 – Ratio of Net General Bonded Debt ......................................................................................................................123
Table 11 – Computation of Direct and Overlapping Debt .....................................................................................................124
Table 12 – Computation of Legal Debt Margin ....................................................................................................................125
Table 13 – Water and Sewer Revenue Bond Coverage .........................................................................................................126
Demographic and Economic Information:
Table 14 – Miscellaneous Statistics .......................................................................................................................................127
INTRODUCTORY SECTION
CITIZENS OF BREMERTONJUDGEMUNICIPAL COURTMAYOR'SOFFICECITYATTORNEYCouncil to CityCivil Legal ServicesProsecutionCivil LitigationRisk ManagementHuman Resources& Labor RelationsSafety ProgramPOLICESERVICESPatrolTrafficInvestigationCrime PreventionHome DetentionJail ContractPhoto EnforcementCommunity PolicingReserve OfficeProgramSpecial OperationsGroupFINANCIALSERVICESRecords ManagementAdmin Support ServicesPublic Acess TVInformation TechnologyCity ClerkConference CenterOperatingB & O TaxBusiness &Regulatory LicensingDebt ManagementFiscal PolicyOversightCash & BankManagementAccounting & BudgetAnimal ControlParkingPUBLIC WORKS& UTILITIESEngineeringStreet Lighting &Road MaintenanceUtility Operations& MaintenanceFacility MaintenanceForestry ManagementWater SupplyWastewater TreatmentSurface WaterManagementConstruction AdminEquipment RentalReserve & OperationsSurveying & MappingPermit CoordinationUtility Billing &Customer ServiceCOMMUNITYDEVELOPMENTLand & Use PlanningBuilding InspectionsCode EnforcementEnvironmental ReviewOne-StopPermit CenterZoning Administration& EnforcementCDBG Home ProgramAnnexationsPARKS &RECREATIONParks Building& MaintenanceRecreation ProgramsCity FountainsGold Mountain GolfSenior Center& ProgramsParks CommissionSupportOne Percent for ArtFIRE - EMSSERVICESFire SuppressionEmergency MedicalServicesFire PreventionCITYCOUNCILAuditCommitteeCity of Bremerton / 1City of Bremerton / 1
Directory of Officials
2017
Elected Officials:
Mayor ................................................................................................................................. Patty Lent
District #1 Council Member ............................................................................................ Pat Sullivan
District #2 Council Member ........................................................................................... Leslie Daugs
District #3 Council Member ...................................................................................... Jerry McDonald
District #4 Council Member ......................................................................................... Greg Wheeler
District #5 Council Member ............................................................................................. Dino Davis
District #6 Council Member ........................................................................................ Richard Huddy
District #7 Council Member .......................................................................................... Eric Younger
Judge, Municipal Court ................................................................................................. James Docter
Appointed Officials:
City Attorney ............................................................................................................. Roger Lubovich
Director, Public Works and Utilities ............................................................................... Chal Martin
Fire Chief .......................................................................................................................David Schmitt
Police Chief ............................................................................................................... Steven Strachan
Director of Financial Services ...................................................................................... DeWayne Pitts
Director of Community Development ....................................................................... Andrea Spencer
Director of Parks and Recreation ............................................................................. .......Jeff Elevado
City Auditor ....................................................................................................................Jennifer Sims
City of Bremerton / 2City of Bremerton / 2
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City of Bremerton / 3City of Bremerton / 3
FINANCIAL SECTION
Washington State Auditor’s Office
INDEPENDENT AUDITOR’S REPORT ON
FINANCIAL STATEMENTS
City of Bremerton
January 1, 2017 through December 31, 2017
Mayor and City Council
City of Bremerton
Bremerton, Washington
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information of the City
of Bremerton, as of and for the year ended December 31, 2017, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed on page 14.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these finan cial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
City of Bremerton / 4City of Bremerton / 4
Washington State Auditor’s Office
relevant to the City’s preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund and the aggregate remaining fund information of the City of Bremerton, as of
December 31, 2017, and the respective changes in financial position and, where applicable, cash
flows thereof, and the budgetary comparison for the General fund, for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and required supplementary information listed on page 14
be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
City of Bremerton / 5City of Bremerton / 5
Washington State Auditor’s Office
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The accompanying Schedule of
Expenditures of Federal Awards is presented for purposes of additional analysis as required by
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). This schedule
is not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated,
in all material respects, in relation to the basic financial statements taken as a whole.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING
STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated
September 17, 2018 on our consideration of the City’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in
considering the City’s internal control over financial reporting and compliance.
Pat McCarthy
State Auditor
Olympia, WA
September 17, 2018
City of Bremerton / 6City of Bremerton / 6
City of Bremerton
Management’s Discussion and Analysis
December 31, 2017
The City of Bremerton (City) presents this Management Discussion and Analysis (MD&A) in order to provide a
narrative overview of the City’s financial activities, focus on significant financial issues, and highlight significant
changes in the City’s financial position for the fiscal year ended December 31, 2017. 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 2017, the assets and deferred outflows of the City exceeded its liabilities and deferred
inflows by $287 million. The net investment in capital assets accounts for 85 percent of this amount ($244 million).
Net position restricted primarily for construction projects, debt service, Community Development Block Grant
(CDBG) programs, tourism promotion, worker’s compensation liability and public safety account for another 3.0
percent of this amount ($9.6 million). The remaining net assets of $33 million may be used to meet the City’s
ongoing obligations to citizens and creditors.
•The City’s net position increased by $16 million 6% during the fiscal year. The governmental net position increased
by $11.3 million (12%) from the amount reported in 2016. Business-type net position increased by $4.9 million
(3%).
•As of December 31, 2017, the City’s governmental funds reported a combined fund balance of $20.8 million, an
increase of 13% from the prior year end. The fund balance of the General Fund increased by $3.1 million while the
remaining non-major governmental funds had a fund balance increase of $58,000. $7.3 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 $13 million fund balance, $4.1 million has been
committed or assigned for specific purposes while $9.1 million is unassigned and available to the City for future
appropriation. The remaining fund balance of $18,957 is non-spendable inventories.
•At the end of 2017, the unassigned fund balance of the General Fund was $9.1 million or approximately 26 percent
of total General Fund expenditures of $35.5 million. The General Fund’s unassigned fund balance increased by
$2.4 million from the prior year’s amount of $7.96 million.
•The City’s total outstanding debt decreased by 3.1 million 5% during the current fiscal year to $63.1 million.
General obligation debt decreased by $1.7 million and revenue debt decreased by 1.1 million. The city did not issue
any new debt in 2017.
•
The City’s net investment in Capital Assets increased 12.9 million in 2017. Total Capital assets from governmental
activities increased $6.3 million or (6%). Total Capital assets from business type activities increased $6.5 million
or 4%. The Governmental increases are primarily due to the close out of multiple major projects in the City,
including, Washington Avenue Connector, Austin Drive, the purchase of the first floor of the Norm Dicks
Government Center and other transportation related projects.
Overview of the Financial Statements
The City’s basic financial statements are presented in three parts: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. Other supplementary information in addition to the basic
financial statements is also contained in this report. This section of the management’s discussion and analysis is
intended to introduce and explain the basic financial statements.
Management Discussion and Analysis
City of Bremerton / 7
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, legislative and human
resources), community development, public safety (police and fire), utilities and environment, transportation, economic
environment, and culture and recreation. The City’s business-type activities are limited to the City’s municipal golf
course and water, wastewater and stormwater utility activities. Governmental activities are primarily supported by
taxes, charges for services, and grants while business-type activities are self-supporting through user fees and charges.
The statement of net position presents information on all of the City’s assets and deferred outflows of resources and
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 City’s overall financial health.
The statement of activities presents information designed to show how the City’s net position changed during the year.
This statement distinguishes revenue generated by specific functions from revenue provided by taxes and other sources
not related to a specific function. The revenue generated by the specific functions (charges for services, grants, and
contributions) is compared to the expenses for those functions to show how much each function either supports itself
or relies on taxes and other general funding sources for support. All activity on this statement is reported on the accrual
basis of accounting, requiring that revenues are reported when they are earned and expenses are reported when they are
incurred, regardless of when cash is received or disbursed. Items such as uncollected taxes, unpaid vendor invoices for
goods or services received during the year, and earned but unused vacation leave are included in the statement of
activities as revenue and expenses even though no cash has changed hands.
Fund Financial Statements
The annual financial report includes fund financial statements in addition to the government-wide financial statements.
While the government-wide statements present the City’s finances based on the type of activity, general government
versus business-type, the fund financial statements are presented by fund type such as the general fund, special revenue
funds, and proprietary funds. A fund is a fiscal and accounting entity with a self-balancing set of accounts used to
account for specific activities or meet certain objectives. Funds are often set up in accordance with special regulations,
restrictions or limitations. The City, like other state and local governments, uses fund accounting to ensure and show
compliance with finance-related legal requirements. The City’s funds are divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Governmental funds are used to account for essentially the same functions as are reported as governmental activities
in the government-wide financial statements. The basis of accounting is different between the governmental fund
statements and the government-wide financial statements. The governmental fund statements focus on near-term
revenues/financial resources and expenditures while the government-wide financial statements include both near-term
and long-term revenues/financial resources and expenses. The information in the governmental fund statements can be
used to evaluate the City’s near-term financing requirements and immediate fiscal health. Comparing the governmental
fund statements with the government-wide statements can help the reader better understand the long-term impact of the
City’s current year financing decisions. To assist in this comparison, reconciliations between the governmental fund
statements and the government-wide financial statements are included with the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in fund balances.
The City maintained twenty-six (26) individual governmental funds in 2017. The City’s General fund is presented
separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balances. The remaining governmental funds are combined into a single column labeled “Other
Governmental Funds”. Information for each of the non-major governmental funds is provided in the combining
statements in this report.
Management Discussion and Analysis
City of Bremerton / 8
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.
Proprietary funds are used by governments to account for their business-type activities. Business-type activities
provide specific goods or services to a group of customers that are paid for by fees charged to those customers. There
is a direct relationship between the fees paid and the services received.
The City has two types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to
account for goods and services provided to citizens. Internal service funds are used to account for goods and services
provided internally to various City departments.
The City’s four (4) enterprise funds are used to report the same functions presented as business-type activities in the
government-wide statements with the fund statements providing more detail than is reported in the government-wide
statements. The enterprise fund statements provide separate information for the City’s municipal golf course, water,
wastewater and stormwater utilities. The only other remaining enterprise fund is stormwater utility and it is reported
in a single column labeled “Stormwater”.
Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s
various functions. The City uses internal service funds to account for maintenance and acquisition of its fleet of vehicles,
self-insured insurance programs and claims, unemployment insurance obligations, termination benefits as well as
information technology services. Internal service funds benefit both governmental and business-type activities and are
allocated accordingly in the government-wide statement of activities.
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individuals, private
organizations, other governments, or other funds. Fiduciary funds are not included in the government-wide financial
statements because their assets are not available to support the City’s activities.
The City has one type of fiduciary fund – agency funds. Agency funds are custodial in nature and do not include
revenues and expenses as they do not measure the results of operations.
Government-wide Financial Analysis
Statement of net position
The statement of net position can serve as a useful indicator of the City’s financial position. The City’s net position at
December 31, 2017 totaled $287 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 Management’s Discussion and Analysis – for State
and Local Governments. Two years of financial information in the GASB 34 format are presented.
Management Discussion and Analysis
City of Bremerton / 9
Net Position
The largest component of the City’s net position, $287 million (or 85%), is its investment in capital assets less any
related outstanding debt issued to acquire those assets. These capital assets, such as utility plant, streets, trails, parks,
fire and police vehicles, are used to provide services to the citizens. Consequently, these assets are not available to sell
and convert to cash for future spending. Although the City’s investment in its capital assets is reported net of related
debt, the resources needed to repay the debt must be provided from other sources, as capital assets cannot be used to
liquidate these liabilities.
Restricted net position consists of amounts legally or otherwise externally restricted for debt service and other programs.
Of the $5.9 million of governmental restrictions, $3.69 million or 63% is restricted for the construction of capital assets.
$.756 million are special revenues restricted primarily for use in the Community Development Block Grant program,
for public safety services $.490, tourism promotion $.589, public access television $.142 and workers compensation
liability $.100. $.167 million is restricted for debt service on outstanding debt. $4.4 million of business-type restrictions
are reserves required for debt service payments and asset replacement. A total of $22.5 million represents the
unrestricted net position of the City’s business-type activities and may only be spent on golf course operations, water,
wastewater and other utility activities. Maintenance of utility delivery systems (water lines, pump station, wells), storm
drain flushing, water meter reading, and capital construction projects, such as well rehabilitation, are examples of utility
activities. Other functions of the City may access the remaining $10.5 million to meet ongoing obligations to citizens
and creditors. Examples of other City obligations which this remaining amount may be used for are: public safety
employee salaries, parks maintenance (mowing, fence repair, etc.), and ongoing street maintenance (street sweeping,
restriping, resurfacing, etc.).
At the end of the fiscal year, the City reported positive balances in all three categories of net position for the government
as a whole, as well as for the separate governmental and business-type activities.
Amounts in 000's
2017 2016 Difference 2017 2016 Difference 2017 2016 Difference
Current Assets 24,773$ 20,967$ 3,806$ 34,647$ 37,706$ (3,059)$ 59,420$ 58,673$ 747$
Restricted Assets 6,810 7,876 (1066) 1,711 2,051 (340) 8,521 9,927 (1,406)
Capital Assets 120,094 113,758 6336 183,564 177,237 6,327 303,658 290,995 12,663
Other Noncurrent Assets 7,715 4,001 3714 199 - 199 7,914 4,001 3,913
Total assets 159,392 146,602 12,790 220,121 216,994 3,127 379,513 363,596 15,917
Deferred outflows of resources 2,282 3,863 (1,581) 654 913 (259) 2,936 4,776 (1,840)
Current Liabilities 3,703 2,679 1,024 2,011 1,905 106 5,714 4,584 1,130
Payable from Restricted Assets - - - - - - - - -
Noncurrent Liabilities 46,015 49,476 (3,461) 40,074 42,662 (2,588) 86,089 92,138 (6,049)
Total liabilities 49,718 52,155 (2,437) 42,085 44,567 (2,482) 91,803 96,722 (4,919)
Deferred inflows of resources 2,578 315 2,263 637 173 464 3,215 488 2,727
Net position
Net Investment in Capital Assets 92,734 82,393 10,341 151,096 147,931 3,165 243,830 230,324 13,506
Restricted 5,930 7,876 (1,946) 4,415 9,751 (5,336) 10,345 17,627 (7,282)
Unrestricted 10,714 7,726 2,988 22,542 15,485 7,057 33,256 23,211 10,045
Total Net Position 109,378$ 97,995$ 11,383$ 178,053$ 173,167$ 4,886$ 287,431$ 271,162$ 16,269$
TotalGovernmental Activities Business-Type Activities
Management Discussion and Analysis
City of Bremerton / 10
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 City’s overall financial position improved in 2017 with net position increasing approximately
$8.1 million. The net position of governmental activities increased by $7.2 million and the net position of business-type
activities increased by $.851 million.
Following is a condensed version of the City’s 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 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
Governmental activities accounted for an increase of $8.2 million of the total change in net position of $9 million.
Significant elements of the increase are as follows:
The City saw a significant increase in sales, property and utility tax $.603 million, $.129 million and $.564 million
respectively.
Expenditures decreased by 2.7% in 2017 compared to 2016. Small changes occurred in many functional areas, as
a significant effort was made to match available resources.
Total revenue from governmental activities in 2017 increased by $9.2 million from 2016. Program revenues
increased by $1.087 million. Capital Grants had the largest impact on the increase in Fund Balance $7 million.
Amounts in 000's
2017 2016 Difference 2017 2016 Difference 2017 2016 Difference
Revenues
Program revenues
Charges for services 9,658$ 8,568$ 1,090$ 35,986$ 34,192$ 1,794$ 45,644$ 42,760$ 2,884$
Operating grants/contributions 547 564 (17) -25 (25) 547 589 (42)
Capital grants/contributions 8,862 1,820 7,042 3,691 1,976 1,715 12,553 3,796 8,757
General revenues - -
Property taxes 9,747 9,618 129 - - - 9,747 9,618 129
Sales taxes 9,626 8,951 675 87 76 11 9,713 9,027 686
Business taxes 3,788 4,018 (230) 8 18 (10) 3,796 4,036 (240)
Utility taxes 10,338 9,774 564 - - - 10,338 9,774 564
Other taxes 3,970 4,210 (240) -- - 3,970 4,210 (240)
Other general revenues 455 192 263 (109) 153 (262)346 345 1
Total revenues 56,991$ 47,715$ 9,276$ 39,663$ 36,440$ 3,223$ 96,654$ 84,155$ 12,499$
Expenses
Governmental activities
General government 4,368 4,206 162 - - - 4,368 4,206 162
Public safety 26,646 25,840 806 - - - 26,646 25,840 806
Transportation 6,015 5,515 500 - - - 6,015 5,515 500
Economic Enivironment 2,143 1,906 237 - - - 2,143 1,906 237
Culture and recreation 6,211 5,968 243 - - - 6,211 5,968 243
Interest on long-term debt 1,212 1,098 114 - - - 1,212 1,098 114
Business-type activities
Water - - - 13,690 13,164 526 13,690 13,164 526
Wastewater - - - 13,653 12,726 927 13,653 12,726 927
Golf course - - - 4,016 3,973 43 4,016 3,973 43
Stormwater - - - 3,417 2,565 852 3,417 2,565 852
Total expenses 46,595$ 44,533$ 2,062$ 34,776$ 32,428$ 2,348$ 81,371$ 76,961$ 4,410$
Excess of revenues over expenses 10,396 3,182 7,214 4,887 4,012 875 15,283 7,194 8,089
Transfers -(24) 24 -24 (24) -- -
Change in net position 10,396 3,158 7,238 4,887 4,036 851 15,283 7,194 8,089
Net position - beginning 97,995 94,837 3,158 173,167 169,131 4,036 271,162 263,968 7,194
Prior period adjustment 987 - 987 - - - 987 - 987
Net position - ending 109,378$ 97,995$ 11,383$ 178,054$ 173,167$ 4,887$ 287,432$ 271,162$ 16,270$
Governmental Activities Business-Type Activities Total
Management Discussion and Analysis
City of Bremerton / 11
Governmental net position increased overall by $8.2 million in 2017. The major contribution to this was the
increase in capital grant revenue of $7 million.
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Management Discussion and Analysis
City of Bremerton / 12
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Management Discussion and Analysis
City of Bremerton / 13
Business-type activities increased the City’s net position by $.851 million
•The significant change in fund balance can be mainly attributed to capital asset additions and reduction in
expenses (attributable to recognized reduction in pension expense per GASB 68). The utilities remained
consistent from the prior year.
(5,000)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Charges for
Service
Operating Grants
and Contributions
Capital Grants and
Contributions
Taxes Other General
Revenues
Revenue by Source -Business-type Activities
2016 and 2017
(amount in thousands)
2016 2017
Management Discussion and Analysis
City of Bremerton / 14
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Management Discussion and Analysis
City of Bremerton / 15
0
10,000
20,000
30,000
40,000
50,000
60,000
Business-Type
Revenue
Business-Type
Expenses
Governmental
Revenue
Governmental
Expenses
Comparison of Total Revenues and Total Expenses
2016 and 2017
(amounts in thousands)
Financial Analysis of the City’s Funds
As discussed earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental funds
The General Fund is the primary operating fund of the City through which all receipts and payments of 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 2017, the fund balance of the General Fund was $10.3 million. As a measure of
the fund’s liquidity, the 2017 ending fund balance is 29% of the fund’s 2017 expenditures, an increase of 6%
over 2016’s 23%.
The General Fund ending fund balance increased in 2017 by $2.4 million in 2017. Revenues increased from
$36.8 million in 2016 to $37.8 million in 2017. The City saw steady increases over all revenue categories in
2018. Sales and Business taxes generated $656 thousand of the $1 million increase. Expenditures increase from
$33.7 million to $35.5 million during the same period. Major highlights from the 2017 expenditure activity
include the purchase of the 1st floor of the Norm Dick’s Government Center from Housing Kitsap in November
and increased public safety costs attributable to additional bike officer added in 2017.
Management Discussion and Analysis
City of Bremerton / 16
Proprietary funds
The City’s proprietary funds provide the same type of information found in the government-wide financial statements,
but in more detail. There were no significant transactions pertaining to the proprietary funds.
General Fund Budget Variations
The General Fund collected revenues at 102% of the amended amount budgeted or $.857 million more than budgeted.
Expenditures for 2017 were 93% of the amended budget resulting in actual expenditures being $3.1 million less than
the budgeted amount. The positive expenditure budget variance is largely attributable savings in budgeted personnel.
The General Fund budget was balanced in 2017. The original budget provided for a decrease to the fund balance of
$957,978. The budget was amended two times during 2017. The final amended budget provided for a decrease to fund
balance of $1,682,305. At the conclusion of 2017, the General Fund increased budgetary fund balance by $2,255,381.
Capital Asset and Debt Administration
Capital Assets
The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2017,
amounts to $304 million (net of accumulated depreciation). This investment in capital assets includes land, buildings,
improvements, machinery and equipment, construction in progress, utility transmission/distribution systems, roads and
intangibles.
The major capital asset additions for governmental activities during 2017 street related projects in the amount of $6.2
million. Specifically the City worked on the following:
•Washington Avenue Connector $2,071,905
•Acceptance of Infrastructure Bayside Project $2,324,695
The major capital assets changes for business-type activities included the construction of wastewater and water capital
improvement projects identified within the City’s 2017 capital improvement plan.
Capital Assets (net of depreciation)
Additional information on the City’s capital assets can be found in Note 5.
Amounts in 000's
2017 2016 Difference 2017 2016 Difference 2017 2016 Difference
Land 20,082$ 20,316$ (234)$ 9,749$ 9,514$ 235$ 29,831$ 29,830$ 1$
Buildings 46,728 48,419 (1,691) 34,972 33,003 1,969 81,700 81,422 278
Improvements/Infrastructure 39,038 35,333 3,705 97,795 96,148 1,647 136,833 131,481 5,352
Machinery and Equipment 2,511 1,943 568 36,342 32,103 4,239 38,853 34,046 4,807
Construction in Progress 11,669 7,742 3,927 4,492 5,981 (1,489) 16,161 13,723 2,438
Intangibles 5 5 - 213 222 (9) 218 227 (9)
TOTAL 120,033$ 113,758$ 6,275$ 183,563$ 176,971$ 6,592$ 303,596$ 290,729$ 12,867$
Governmental Activities Business-Type Activities Total
Management Discussion and Analysis
City of Bremerton / 17
Long-term debt
Outstanding Debt - General Obligation and Revenue Bonds
Additional Information on the City’s long-term debt can be found in Note 10 of this report.
Economic Factors and Next Year’s Budgets and Rates
Several factors that affect the economic climate in Bremerton were considered when preparing the City’s 2017 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 national, regional and local economic conditions continued to show improvement during 2017.
The State of Washington is continuing to face considerable budget challenges; however, the state’s budget challenges
have had limited effect on Bremerton’s transportation capital funding received from the state. Over the past several
years, Bremerton has been successful in attracting state and federal grant funds for major transportation improvement
projects and the Lower Wheaton Way Washington Ave and Lebo Blvd Pedestrian Access funds. In 2017 the City was
awarded multiple state and federal grants. Future outside funding opportunities will be highly competitive and
Bremerton, due to its current economic demographics, should compete very well for certain projects.
Revitalization efforts are a product of both public and private investment. Public investment in this multi-year effort
includes the construction or renovation of facilities to provide city services including new police, fire, court and
administrative buildings, the construction of 2 new parks and the renovation of several major parks, transportation and
utility projects are all designed to improve the lives of city residents. Private investment has included the construction
of the 606 and Spyglass apartments. Additionally, there are other projects underway, including new commercial
buildings for business and recreational purposes as well as new single family and multifamily residential projects.
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 Bremerton’s governmental
services. The ability of Bremerton to provide sufficient funding for future core government services will be impacted
by the success of its economic development efforts. However, these efforts alone will be insufficient to fund these core
services without the identification and implementation of additional revenue sources.
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. As a result of a yearlong
comprehensive rate analysis on it Water, Wastewater and Stormwater utilities the City Council adopted the analysis
and the first of planned annual rates increases on April 3, 2013 to adequately fund the operations and maintenance,
capital, and the anticipated debt service needs for the three utilities. Rates have been increase gradually from 2014 to
2017 to keep up with the funding requirements of the utilities. The analysis anticipated the issuance of up to a maximum
of $35 million in revenue bonds over six years. In 2016 the City issued $7.855 million in Revenue bonds to finance
identified capital improvements.
Amounts in 000's
2017 2016 Difference 2017 2016 Difference 2017 2016 Difference
General Obligation Bonds 29,520$ 31,235$ (1,715)$ 3,925$ 4,225$ (300)$ 33,445$ 35,460$ (2,015)$
General Obligation Notes - - - - - - -
Revenue Bonds - - - 15,440 16,335 (895) 15,440 16,335 (895)
Revenue Loans - - - 14,217 14,415 (198) 14,217 14,415 (198)
TOTAL 29,520$ 31,235$ (1,715)$ 33,582$ 34,975$ (1,393)$ 63,102$ 66,210$ (3,108)$
Governmental Activities Business-Type Activities Total
Management Discussion and Analysis
City of Bremerton / 18
Requests for information
This financial report is designed to provide a general overview of the City’s finances for readers with an interest in
municipal finances. Questions concerning any of the information provided in this report, or requests for additional
information, may be addressed to the Director of Financial Services, City of Bremerton, 345 Sixth Street, Suite 100,
Bremerton, WA 98337-1873.
Management Discussion and Analysis
City of Bremerton / 19
BASIC FINANCIAL STATEMENTS
City of Bremerton
Statement of Net Position
December 31, 2017
Primary Government
Governmental
Activities
Business-Type
Activities Total
Assets
Current assets:
Cash & Cash Equivalents 6,233,397$ 12,454,272$ 18,687,669$
Investments 10,214,649 14,475,482 24,690,131
Receivables 6,273,271 5,894,299 12,167,570
Internal balances (311,034) 311,036 2
Due from other governments 1,446,041 25,443 1,471,484
Inventories 111,379 1,463,364 1,574,743
Prepayments 805,826 23,440 829,266
Restricted assets:
Cash & Cash Equivalents 4,241,147 697,925 4,939,072
Investments 2,114,256 1,013,080 3,127,336
Receivables 97,559 - 97,559
Due from other governments 356,834 - 356,834
Notes and contracts receivable:
Due within one year - - -
Due in more than one year - 198,516 198,516
Capital assets net of depreciation 120,093,644 183,564,169 303,657,813
Net Pension Asset 7,715,058 - 7,715,058
Total assets 159,392,027$ 220,121,026$ 379,513,053$
Deferred outflows of resources
Deferred amount on refunding 820,390$-$ 820,390$
Deferred amount related to pension 1,461,627$ 654,518$2,116,145$
Total Deferred outflow of resources 2,282,017$ 654,518$2,936,535$
Liabilities
Accounts payable and other current liabilities 2,335,745$ 1,258,496$ 3,594,241$
Employee wages payable 1,055,719 416,684 1,472,403
Other accrued liabilities 229,061 206,613 435,674
Custodial accounts 83,059 128,818 211,877
Noncurrent liabilities
Net Pension Liability 5,313,696 4,618,132 9,931,828
Unearned Revenue - 98,195 98,195
Due within one year 2,688,758 3,970,901 6,659,659
Due in more than one year 38,012,475 31,387,369 69,399,844
Total liabilities 49,718,513$ 42,085,208$ 91,803,721$
Deferred inflows of resources related to pension 2,577,731$ 636,702$3,214,433$
Net Position
Net investment in capital assets 92,733,677$ 151,096,269$ 243,829,946$
Restricted for:
Tourism promotion & facilities 589,147 - 589,147
Community development block grant 756,224 - 756,224
Public safety 490,550 - 490,550
Public Access Television 141,634 - 141,634
Debt service 166,662 2,098,215 2,264,877
Workers compensation 100,000 - 100,000
Capital projects 3,685,968 2,316,890 6,002,858
Unrestricted 10,713,938 22,542,260 33,256,198
Total Net Position 109,377,800$ 178,053,634$ 287,431,434$
See accompanying notes to the financial statements.
City of Bremerton / 20City of Bremerton / 20
City of Bremerton
Statement of Activities
For the Year Ended December 31, 2017
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Business-Type
Activities Total
Function/Program
Governmental activities:
General government 4,368,302$ 1,014,634$ -$-$(3,353,668)$ -$(3,353,668)$
Public safety 26,645,815 2,949,104 84,144 -(23,612,567)$ -(23,612,567)
Transportation 6,014,666 2,924,824 -8,737,567 5,647,725$ -5,647,725
Economic environment 2,142,745 1,029,158 462,517 -(651,070)$ -(651,070)
Culture and recreation 6,210,732 1,740,478 -124,196 (4,346,058)$ -(4,346,058)
Interest on long-term debt 1,211,659 - --(1,211,659)$ -(1,211,659)
Total governmental activities 46,593,919 9,658,198 546,661 8,861,763 (27,527,297) -(27,527,297)
Business-type activities
Water 13,690,176 13,350,060 -1,054,593 -714,477 714,477
Wastewater 13,653,478 14,897,564 -1,614,984 -2,859,070 2,859,070
Stormwater 3,417,408 3,435,182 1,021,517 1,039,291 1,039,291
Golf course 4,016,057 4,303,513 ---287,456 287,456
Total business-type activities 34,777,119 35,986,319 -3,691,094 -4,900,294 4,900,294
Total government 81,371,038$ 45,644,517$ 546,661$ 12,552,857$ (27,527,297)$ 4,900,294$ (22,627,003)$
General Revenues
Taxes:
Property 9,746,766 -9,746,766
Sales 9,626,108 87,043 9,713,151
Business 3,788,009 8,316 3,796,325
Utility 10,337,783 -10,337,783
Other 3,969,957 -3,969,957
Unrestricted investment interest 233,665 243,906 477,571
Miscellaneous 153,716 433,187 586,903
Gain/(Loss) on disposal of capital assets 67,272 (786,086) (718,814)
Transfers, internal activities ---
Total general revenues and transfers 37,923,276 (13,634) 37,909,642
Change in net position 10,395,979 4,886,660 15,282,639
Net position-beginning 97,994,914 173,166,974 271,161,888
Prior period adjustment 986,907 -986,907
Special Items ---
Net position-ending 109,377,800$ 178,053,634$ 287,431,434$
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
See accompanying notes to the financial statements.
City of Bremerton / 21City of Bremerton / 21
City of Bremerton
Balance Sheet
Governmental Funds
December 31, 2017
General
Other
Governmental
Funds
Total
Governmental
Funds
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Cash and equivalents 4,136,442$ 4,903,735$ 9,040,177$
Investments 6,004,291 4,243,397 10,247,688
Receivables, net 5,337,894 999,873 6,337,767
Due from other funds 1,055,892 219,899 1,275,791
Due from other governments 20,208 1,746,594 1,766,802
Inventories 18,957 - 18,957
Other assets - 552,941 552,941
Total assets 16,573,684 12,666,439 29,240,123
Deferred outflows of resources - - -
Total assets and deferred outflows of resources 16,573,684$ 12,666,439$ 29,240,123$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts/contracts payable 843,272$ 996,947$ 1,840,219$
Due to other funds 1,335,860 347,050 1,682,910
Due to other governments 17,269 495 17,764
Employee wages payable 862,698 51,401 914,099
Custodial Accounts 68,059 15,000 83,059
Unearned revenue 1,871,712 696,860 2,568,572
Total liabilities 4,998,870 2,107,753 7,106,623
Deferred inflows of resources 1,255,882 111,409 1,367,291
Total liabilities and Deferred inflows of resources 6,254,752 2,219,162 8,473,914
Fund balances:
Nonspendable 18,957$ -$ 18,957$
Restricted 173,169 7,320,354 7,493,523$
Committed 1,024,537 785,236 1,809,773$
Assigned - 2,341,687 2,341,687$
Unassigned 9,102,269 0 9,102,269$
Total fund balances 10,318,932 10,447,277 20,766,209
Total liabilities and fund balances 16,573,684$ 12,666,439$ 29,240,123$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore not
120,032,918
Other long-term assets are not available to pay for current-period expenditures and therefore
are deferred in the funds. 13,124,408
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. 1,678,552
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the funds.(46,224,287)
Net position of governmental activities 109,377,800$
reported in the funds.
See accompanying notes to the financial statements.
City of Bremerton / 22City of Bremerton / 22
City of Bremerton
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
for the Year Ended December 31, 2017
General
Fund
Other
Governmental
Funds
Governmental
Funds
Total
REVENUES
Taxes
Property 8,422,369$ 1,319,678$ 9,742,047$
Sales 9,197,776 993,498 10,191,274
Business 13,153,456 321,498 13,474,954
Other 153,008 2,888,810 3,041,818
Licenses and permits 1,172,596 297,796 1,470,392
Intergovernmental 1,245,194 7,971,111 9,216,305
Charges for services 2,907,428 253,259 3,160,687
Fines and forfeitures 1,093,946 477,831 1,571,777
Miscellaneous 406,186 1,772,239 2,178,425
Total revenues 37,751,959 16,295,720 54,047,679
EXPENDITURES
Current:
General government 5,479,194 199,094 5,678,288
Public safety 23,150,243 180,154 23,330,397
Utilities and environment 24,450 -24,450
Transportation 534,935 3,559,486 4,094,421
Economic environment 1,620,443 710,144 2,330,587
Mental/physical health 80,929 45,350 126,279
Culture and recreation 3,950,667 593,580 4,544,247
Debt service:
Principal -1,715,000 1,715,000
Interest and other debt issue costs 2,350 1,225,789 1,228,139
Capital outlay 621,081 8,641,659 9,262,740
Intergovernmental payments ---
Total expenditures 35,464,292 16,870,256 52,334,548
Excess (deficiency) of revenues over
expenditures 2,287,667 (574,536) 1,713,131
OTHER FINANCING SOURCES (USES)
Capital asset donations & disposal 1,151,667 34,587 1,186,254
Insurance recoveries 10,076 3,142 13,218
Transfers in 281,330 1,997,375 2,278,705
Transfers out (1,376,910) (1,401,795) (2,778,705)
Total other financing sources and uses 66,163 633,309 699,472
Net change in fund balances 2,353,830 58,773 2,412,603
Fund balances-beginning 7,965,102 10,388,507 18,353,609
Prior period adjustments ---
Fund balances-ending 10,318,932$ 10,447,280$ 20,766,212$
See accompanying notes to the financial statements.
City of Bremerton / 23City of Bremerton / 23
City of Bremerton
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, 2017
2,412,603$
6,335,158
1,040,913
1,723,694
(1,116,389)
Change in net position of governmental activities 10,395,979$
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.
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.
See accompanying notes to the financial statements
City of Bremerton / 24City of Bremerton / 24
City of Bremerton
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual General Fund
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes 30,089,730$ 30,089,730$ 30,926,610$ 836,880$
Licenses and permits 1,207,185 1,207,485 1,172,596 (34,889)
Intergovernmental 1,127,430 1,286,670 1,245,194 (41,476)
Charges for services 5,213,444 5,293,444 1,714,673 (3,578,771)
Fines and forfeitures 1,220,800 1,220,800 1,093,946 (126,854)
Other revenues 340,470 1,615,316 1,688,459 73,143
Total revenues 39,199,059 40,713,445 37,841,478 (2,871,967)
EXPENDITURES
City Council 356,542 372,942 213,995 158,947
Executive 437,016 437,016 250,626 186,390
Finance 1,570,997 1,570,997 788,860 782,137
Legal 1,140,796 1,149,596 572,697 576,899
Human Resources 578,207 620,607 299,964 320,643
Community development 1,785,892 1,885,698 1,552,189 333,509
Municipal Court 1,393,329 1,393,329 1,356,418 36,911
City Auditor 79,541 79,541 47,574 31,967
Law enforcement 10,795,058 10,795,058 10,181,024 614,034
Fire/Emergency medical services 9,439,332 9,439,332 9,395,983 43,349
Police & fire pension 1,812,800 1,812,800 1,646,965 165,835
Facilities 1,268,829 1,895,646 1,214,552 681,094
Parks and recreation 2,826,066 2,841,066 2,605,806 235,260
Engineering 2,240,412 2,428,152 550,870 1,877,282
Non-departmental 4,432,220 5,673,970 4,878,761 795,209
Total expenditures 40,157,037 42,395,750 35,556,284 6,839,466
Excess (deficiency) of revenues over
expenditures (957,978) (1,682,305) 2,285,194 3,967,499
Fund balances-beginning 5,866,029 7,498,995 7,498,995 -
Fund balances-ending 4,908,051$ 5,816,690$ 9,784,189$ 3,967,499$
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.534,743$
Fund Balances Ending 10,318,932$
EXPENDITURES
Personnel 29,229,264 29,174,070 29,174,070
Supplies, services & taxes 9,831,890 10,691,243 10,691,243
Capital expenditure 115,000 839,554 839,554
Debt Service -- -
Transfers 980,883 1,690,883 1,690,883
Total expenditures 40,157,037 42,395,750 - 42,395,750
City of Bremerton / 25City of Bremerton / 25
City of Bremerton
Statement of Net Position
Proprietary Funds
December 31, 2017
Governmental
Activities
Water
Golf
Course Wastewater Stormwater Total
Internal
Service Funds
ASSETS AND DEFERRED OUTFLOWS
Current assets:
Cash and cash equivalents 2,932,541$ 266,761$ 5,609,732$ 2,065,760$ 10,874,794$ 2,913,845$
Restricted cash 56,797 - 641,128 - 697,925 100,000
Investments 4,256,757 387,219 6,566,614 972,187 12,182,777 4,373,922
Restricted Investments 114,537 - 898,543 - 1,013,080 -
External receivables 1,969,814 81,952 2,730,833 679,674 5,462,273 -
Special assessments receivable 384,493 - - - 384,493 -
Interest receivables 12,018 1,038 19,722 2,607 35,385 17,730
Due from other funds 146,714 - 430,916 73,881 651,511 822,026
Due from other governments -- - 25,443 25,443 -
Inventories 695,900 185,169 582,295 - 1,463,364 92,422
Prepayments -23,440 - - 23,440 252,885
Total current assets 10,569,571 945,579 17,479,783 3,819,552 32,814,485 8,572,830
Noncurrent assets:
Notes and contracts receivable 198,516 - - - 198,516 -
Capital assets net of depreciation 68,866,726 6,811,334 94,061,888 8,938,411 178,678,359 4,946,536
Total noncurrent assets 69,065,242 6,811,334 94,061,888 8,938,411 178,876,875 4,946,536
Total assets 79,634,813 7,756,913 111,541,671 12,757,963 211,691,360 13,519,366
Deferred outflows of resources 329,195 76,794 168,046 80,483 654,518 51,694
Total assets and deferred outflows 79,964,008$ 7,833,707$ 111,709,717$ 12,838,446$ 212,345,878$ 13,571,060$
LIABILITIES AND DEFERRED INFLOWS
Current liabilities:
Accounts/contract payable 636,530 194,948 280,677 146,341 1,258,496 123,248
Claims and Judgements Payable -- - - -354,514
Due to other funds 457,296 79,138 348,620 104,040 989,094 77,322
Due to other governments 35,957 - - 35,957 -
Employee wages payable 280,816 159,309 195,547 78,566 714,238 141,620
Other accrued liabilities 35,586 10,132 72,078 6,777 124,573 24
Current portion of long-term debt 956,477 315,000 2,327,106 86,664 3,685,247 -
Custodial accounts 3,504 124,814 - 500 128,818 -
Other current liabilites 46,083 - - - 46,083 -
Total current liabilities 2,416,292 919,298 3,224,028 422,888 6,982,506 696,728
Noncurrent liabilities:
Claims and judgments payable -- - - -1,418,058
Bonds, notes and loans payable 8,675,755 3,610,000 16,614,318 2,029,066 30,929,139 -
Net pension liability 2,955,847 - 1,071,868 590,417 4,618,132 239,457
Unearned revenue 98,195 - -- 98,195 -
Compensated absences 229,728 - 155,423 61,179 446,330 44,004
Total noncurrent liabilities 11,959,525 3,610,000 17,841,609 2,680,662 36,091,796 1,701,519
Total liabilities 14,375,817 4,529,298 21,065,637 3,103,550 43,074,302 2,398,247
Deferred inflows of resources 328,211 - 214,146 94,345 636,702 75,501
Total liabilities and deferred inflows 14,704,028$ 4,529,298$ 21,279,783$ 3,197,895$ 43,711,004$ 2,473,748$
NET POSITION
Net investment in capital assets 59,234,494 2,963,128 75,847,117 8,165,720 146,210,459 4,946,536
Restricted for capital assets -247,198 726,654 1,343,038 2,316,890 -
Restricted for debt service 556,431 - 1,541,784 - 2,098,215 -
Restricted for Worker's Compensation -- - - -100,000
Unrestricted 5,469,055 94,083 12,314,379 131,793 18,009,310 6,050,776
Total net position 65,259,980$ 3,304,409$ 90,429,934$ 9,640,551$ 168,634,874$ 11,097,312$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 9,418,760$
Net position of business-type activities 178,053,634$
Business-type Activities
Enterprise Funds
See accompanying notes to the financial statements.
City of Bremerton / 26City of Bremerton / 26
City of Bremerton
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
for the Year Ended December 31, 2017
Governmental
Activities
Water
Golf
Course Wastewater Stormwater Total
Internal
Service Funds
OPERATING REVENUES
Charges for services 12,607,530$ 4,303,513$ 14,879,928$ 3,425,836$ 35,216,807$ 5,122,199$
Other operating revenue 742,530 - 17,636 9,346 769,512 1,413
Total operating revenues 13,350,060 4,303,513 14,897,564 3,435,182 35,986,319 5,123,612
OPERATING EXPENSES
Operations and maintenance 11,007,785 118,736 9,306,135 2,965,722 23,398,378 3,564,804
Contracted Operations - 3,583,520 - - 3,583,520 -
Customer service and marketing 299,562 - 160,259 154,130 613,951 -
General administration 228,716 - 73,393 130,775 432,884 320,801
Depreciation and amortization 2,143,774 162,359 3,694,103 130,914 6,131,150 677,182
Risk transfer payments - - - - - 682,111
Payments to claimants & beneficiaries - - - - - 1,722,530
Other operating expenses - - - - - 7,308
Total operating expenses 13,679,837 3,864,615 13,233,890 3,381,541 34,159,883 6,974,736
Operating income (loss)(329,777) 438,898 1,663,674 53,641 1,826,436 (1,851,124)
NONOPERATING REVENUES (EXPENSES)
Interest and investment revenue 86,693 3,335 92,723 33,922 216,673 46,124
Interest expense (269,106) (151,442) (514,674) (85,745) (1,020,967) -
Gain (loss) on capital asset disposal (640,368) 1,500 (147,218) - (786,086) (17,507)
Other nonoperating revenue/expense 322,071 15,092 141,656 49,727 528,546 3,488
Total nonoperating revenues (expenses)(500,710) (131,515) (427,513) (2,096) (1,061,834) 32,105
Income (loss) before contributions and transfers (830,487) 307,383 1,236,161 51,545 764,602 (1,819,019)
Capital contributions 1,054,593 - 1,614,984 1,021,517 3,691,094 1,133,478
Transfers to other funds - - - - -
Transfers from other funds - - - - - -
Change in net position 224,106 307,383 2,851,145 1,073,062 4,455,696 (685,541)
Total net position - beginning 65,035,874 2,997,026 87,578,789 8,567,489 164,179,178 11,782,737
Prior period adjustment - - - - - 116
Total net position - ending 65,259,980$ 3,304,409$ 90,429,934$ 9,640,551$ 168,634,874$ 11,097,312$
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.430,848
Change in net position of business-type activities.4,886,544$
Business-type Activities
Enterprise Funds
See accompanying notes to the financial statements.
City of Bremerton / 27City of Bremerton / 27
City of Bremerton
Statement of Cash Flows
Proprietary Funds
for the Year Ended December 31, 2017 Page 1 of 2
Governmental
Activities
Water
Golf
Course Wastewater Stormwater Total
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 12,594,257$ 4,251,539$ 14,820,533$ 3,382,840$ 35,049,169$ -$
Cash receipts from interfund services 59,496 - -- 59,496 4,975,876
Other receipts and payments 917,894 15,092 101,884 450 1,035,320 2,991
Cash payments to suppliers (3,262,508) (3,384,924) (2,932,067) (656,510) (10,236,009) (2,588,866)
Cash payments to employees (3,622,787) - (2,747,519)(928,815) (7,299,121) (1,461,570)
Cash payments for interfund services (3,993,876) (118,736) (5,132,224) (1,389,468) (10,634,304) (583,673)
Purchase of insurance --- - (473,982)
Payment for insurance claims --- - (1,164,152)
Net cash provided (used) by operating activities 2,692,476 762,971 4,110,607 408,497 7,974,551 (1,293,376)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Grant proceeds -- -70,297 70,297 -
Transfer ins -- -- - -
Transfer outs -- -- - -
Other receipts and payments -- -- - 1,910
Net cash provided (used) by noncapital financing activities -- -70,297 70,297 1,910
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Bond proceeds -- -- - -
Loan proceeds 1,940,355 - -- 1,940,355 -
Capital contributions 504,156 - 342,090 169,543 1,015,789 1,133,478
Collections on notes receivable 66,984 - -- 66,984 -
Sale or involuntary conversion of capital assets -1,500 -- 1,500 60,775
Transfer in for asset construction ---- - -
Acquisition and construction of capital assets (6,228,179) - (1,920,602)(2,101,078) (10,249,859) (1,416,342)
Principal paid bonds (178,383) (300,000) (671,817) (64,800) (1,215,000) -
Principal paid on other debt (862,960) - (1,648,079)(9,865) (2,520,904) -
Bond issuance costs -- -- - -
Interest paid on bonds and other debt (256,817) (125,912) (517,662) (80,822) (981,213) -
Net cash provided (used) by capital and related financing
activities (5,014,844) (424,412) (4,416,070) (2,087,022) (11,942,348) (222,089)
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from repayment of loans -- -- - -
Interest on loans and investments 84,030 2,725 87,772 34,806 209,333 45,255
Net change in investments (829,907) (222,125) (1,695,713) 375,001 (2,372,744) (182,729)
Net cash provided (used) by investing activities (745,877) (219,400) (1,607,941) 409,807 (2,163,411) (137,474)
Net increase (decrease) in cash and cash equivalents (3,068,245) 119,159 (1,913,404) (1,198,421) (6,060,911) (1,651,029)
Cash and equivalents - beginning 6,057,583 147,602 8,164,264 3,264,181 17,633,630 4,664,874
Cash and equivalents - ending 2,989,338$ 266,761$ 6,250,860$ 2,065,760$ 11,572,719$ 3,013,845$
Cash at the end of the year consists of:
Operating fund cash 2,932,541 266,761 5,609,732 2,065,760 10,874,794 2,913,845
Restricted cash 56,797 - 641,128 - 697,925 100,000
Total cash at end of year 2,989,338$ 266,761$ 6,250,860$ 2,065,760$ 11,572,719$ 3,013,845$
Business-type Activities
Enterprise Funds
See accompanying notes to the financial statements.
City of Bremerton / 28
City of Bremerton
Statement of Cash Flows
Proprietary Funds
for the Year Ended December 31, 2017 Page 2 of 2
Governmental
Activities
Water
Golf
Course Wastewater Stormwater Total
Internal
Service Funds
Reconciliation of operating income to net cash provided by
operating activities:
Operating income (loss) (329,777)$ 438,898$ 1,663,674$ 53,641$ 1,826,436$ (1,851,124)$
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation 2,143,774 162,359 3,694,103 130,914 6,131,150 677,182
Nonoperating revenue in cash flow from operating activities 293,953 15,092 101,884 450 411,379 1,578
Contra pension expense 361,866 -(703,553) 223,728 (117,959) (37,744)
Prior year correction - - - - --
Decrease (increase) in receivables (100,630) (38,267) (77,031) (93,095) (309,023) -
Decrease (increase) in due from other funds/govt (146,714) -(401,955) - (548,669) (146,324)
Decrease (increase) in prepaid expenses - 5,128 - - 5,128 208,129
Decrease (increase) in inventory (9,528) 37,944 (15,055) - 13,361 2,961
Increase (decrease) in accounts payable 105,438 100,310 (208,110) 54,328 51,966 (302,288)
Increase (decrease) in due to other funds/govt 293,952 9,942 51,424 21,765 377,083 77,322
Increase (decrease) in employee wages payable 25,556 45,272 (1,642) 7,337 76,523 379
Increase (decrease) in employee leaves payable 26,322 - 6,868 9,429 42,619 2,844
Increase (decrease) in other payables 28,264 (13,707) - - 14,557 73,709
Net cash provided by operating activities 2,692,476$ 762,971$ 4,110,607$ 408,497$ 7,974,551$ (1,293,376)$
Noncash investing, capital and financial activities
Developers contributed infrastructure 550,437$ -$ 1,272,894$ 851,974$ 2,675,305$ -$
Business-type Activities
Enterprise Funds
See accompanying notes to the financial statements.
City of Bremerton / 29
City of Bremerton
Statement of Fiduciary Net Position
Fiduciary Funds
December 31, 2017
Agency
Funds
ASSETS
Cash and cash equivalents 486,834$
Total assets 486,834$
Deferred outflows of resources -$
LIABILITIES
Accounts/contracts payable 30,600
Other current liabilities 456,234
Total liabilities 486,834$
Deferred inflows of resources -$
See accompanying notes to the financial statements
City of Bremerton / 30
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 City’s reporting entity because of the significance of their operational or financial relationships with the
City.
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.
Notes to Financial Statements
City of Bremerton
Notes to Financial Statements
January 1, 2017 - December 31, 2017
City of Bremerton / 31
Notes to Financial Statements
Property taxes, fines and certain receivables for services provided are associated within the current period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessment receivable due within the current fiscal period is considered to be susceptible to accrual as
revenue of the current period. All other revenue items are considered to be measurable and available only when cash is
received by the City.
The City reports the following major governmental funds:
The general fund is the City’s operating fund. It accounts for all financial resources and transactions except those
required to be accounted and reported for in another fund.
The City reports the following major proprietary funds:
The water and wastewater funds account for activities related to the ongoing operations of the City’s water and
sewer systems. The City’s stormwater fund does not meet the criteria for presentation as a major fund but because
it is the only other proprietary fund it is listed on the face of the proprietary fund statements with the major funds.
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, and grants from other agencies and contributions from other funds.
Internal service funds account for the accumulation of funds used to repair City vehicles and equipment and to
replace them at the end of their useful lives. Funds are also accumulated for the purpose of carrying out the city’s
Risk Management, Information Technology Services, Self-insured medical program, 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 utility
taxes levied on the city’s own utilities. 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
fund’s principal ongoing operations. Operating revenues includes charges for services rendered for water, sewer,
stormwater as well as golf fees and timber revenues. Operating expenses include 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.
Notes to Financial Statements
City of Bremerton / 32
Notes to Financial Statements
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 within 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 separately from the General fund. The budgetary comparison for the
General Fund does not include the managerial funds.
2.Amending the Budget
The City’s budget is adopted at the department and category group level. The five distinct category groups are 1)
Personnel, 2) Supplies, Services and Taxes, 3) Debt Service, 4) Capital Expenditures and 5) Transfers. Expenditures
may not legally exceed appropriations at that level of detail. The Mayor may authorize a one-time transfer of less than
$10,000 between category groups within a department. All other 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 City’s budget was amended two times in 2017.
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 City’s policy to invest all temporary cash surpluses. At December 31, 2017, the City was holding $23,626,741
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 City’s bank
in lieu of payments for services rendered. The average compensating balance maintained during 2017 was $4,492,369.
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
Receivables consist of property, B&O, utility, sales and parking taxes, and housing rehabilitation loans resulting from
the federal Department of Housing and Urban Development., as well as other revenues earned by the City from the
County, State and other taxpayers but not yet received. Also included are customers’ 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. As of December 31, 2017, $384,493 of special assessments receivable
were delinquent.
Notes to Financial Statements
City of Bremerton / 33
Notes to Financial Statements
4.Amounts Due to and From Other Funds and Governments
Amounts due to and from other funds include interfund loans receivable/payable as well as outstanding balances that
have resulted from the provision of services between funds as well as corrections of prior transactions. Any residual
balances outstanding between the governmental activities and business-type activities are reported in the government-
wide financial statements as internal balances. A summary schedule of interfund loans receivable and payable is
furnished in Note 14.
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in
applicable governmental funds to indicate that they are not available for appropriation and are not expendable available
financial resources.
5.Inventories
Inventories in governmental funds consist of expendable supplies held for consumption. The cost is recorded as
expenditure at the time individual inventory items are purchased. The portion of fund balance not available for future
expenditure is included in the non-spendable category of fund balance. A comparison to market value is not considered
necessary.
In proprietary funds, a perpetual inventory is maintained, in which the cost is capitalized when inventory items are
purchased, and expensed when the item is consumed. Inventory is recorded by the FIFO (first in first out) method which
approximates market value.
6.Restricted Assets and Liabilities
These accounts contain resources for programs, construction, replacement, and debt service. Related liabilities are
shown as Payable from Restricted Assets. Specific debt service reserve requirements are described in Note 10, Long-
Term Debt.
Restricted assets are composed of the following:
Governmental type:
Cash and investments - Construction 4,842,432$
Cash and investments - HUD programs 159,825
Cash and invesments - Public safety 424,236
Cash and invesments - Public Television 141,634
Cash and investments - Workers compensation 100,000
Cash and investments - Tourism promotion 546,086
Cash and investments - Debt Service 141,190
Receivables - Construction 94,709
Receivables - Debt Service 2,850
Due from other governments - HUD 43,458
Due from other governments - Construction 313,376
Total governmental 6,809,796$
Business type:
Cash and Investments - Debt service 1,711,005$
Total business 1,711,005$
7.Capital Assets. See Note 5, Capital Assets.
Capital assets, which include property, plant, equipment, intangible 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
Notes to Financial Statements
City of Bremerton / 34
Notes to Financial Statements
$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 acquisition value per GASB
72, 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 7-10 Years
Data Processing/Electronic Equipment 5 Years
8.Other Assets
This account reflects various non-current assets of the City including utility water rights and the city’s net pension asset,
resulting from the funded plans of LEOFF 1 and II.
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. This account
also includes pension costs attributable to future periods. See Note 8, Pension Plans for a discussion on pension
reporting.
10.Compensated Absences
It is the City’s 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
Non-represented personnel
300 hours
240 hours
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:
Notes to Financial Statements
City of Bremerton / 35
Notes to Financial Statements
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, employee’s ineligible 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.Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of all state sponsored pension
plans and additions to/deductions from those plans’ fiduciary net position have been determined on the same basis as
they are reported by the Washington State Department of Retirement Systems. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
12.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.
13.Long-term Debt See Note 10, Long-Term Debt.
14.Unearned revenue
This account includes amounts recognized as receivables but not revenues in governmental funds because the revenue
recognition criteria have not been met. In proprietary funds this amount represents credit balances on customer utility
accounts.
15.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.
Notes to Financial Statements
City of Bremerton / 36
Notes to Financial Statements
16.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:
Non-spendable 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 non-spendable 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 government’s highest level of
decision making authority. Furthermore, the constraints imposed on the use of assigned amounts are more
easily removed or modified than those imposed on committed fund balances. The City Council may authorize
executive officers to assign fund balances for specific purposes through Council ordinances and resolutions.
Unassigned – includes amounts that are not assigned to other funds and do not meet the criteria for being
classified as restricted, committed, or assigned. Fund balances that can be utilized for economic stabilization,
emergencies and contingencies that do not qualify as restricted or committed are reported as unassigned.
General Other
Fund Funds Total
Fund balances:
Nonspendable:
Inventory 18,957$ -$ 18,957$
Restricted for:
Tourism promotion & facilities - 546,086 546,086
Community development block grant - 203,283 203,283
Public safety - 490,550 490,550
Public Access Television - 141,634 141,634
Debt service - 144,040 144,040
Capital projects 173,169 5,011,034 5,184,203
Committed to:
Fund balance stabilization 1,024,537 - 1,024,537
Employee Wellness - 3,948 3,948
Parks - 20,464 20,464
Building Abatement - --
Public Access Television - 455,225 455,225
Public safety - 30,424 30,424
Public art - 38,710 38,710
Transportation - 224,034 224,034
Other - 12,430 12,430
Notes to Financial Statements
City of Bremerton / 37
Notes to Financial Statements
General Other
Fund Funds Total
Fund balances:
Assigned to:
Street Operations - 1,485,275 1,485,275
Tourism promotion & facilities - 28,443 28,443
Parking System - 530,073 530,073
Building Abatement - 299,310 299,310
Court Improvement - 6,161 6,161
Debt Service - 281,884 281,884
Park Capital - 98,923 98,923
Capital Improvements - 395,345 395,345
Unassigned:9,102,269 - 9,102,269
Total Fund Balances 10,318,932$ 10,447,277$ 20,766,209$
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources
first, then unrestricted resources as needed. The City’s Financial Goals and Policies call for unrestricted resources to be
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 City’s General, Water, Wastewater,
Stormwater and Golf Course funds. The following table shows the status at December 31, 2017.
Target Target Balance
Fund Rate Balance 12/31/2017
General 8.5% 3,329,350$ 10,318,932$
Water 12%1,673,873 8,413,856
Wastewater 12% 1,649,828 16,000,566
Stormwater 12% 416,074 3,483,328
Golf Course 12% 481,927 156,112
A contingency reserve fund, for the purposes of economic stabilization, was created by the City Council to protect the
City’s General Fund in the event of unforeseen and unfunded emergency requirements. The target fund balance is set at
0.375/$1,000 of assessed valuation. 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 the target amount a repayment plan shall be established to replenish the fund to its minimum level. Balances in
excess of the stated amount can be used for capital purposes upon City Council approval by simple majority vote. For
2017 the target fund balance of the contingency reserve fund is $1,024,536. At 12/31/17 the balance was $1,024,536
2.Reconciliation of Government-wide and Fund Financial Statements
A.Explanation of aggregated differences between the governmental fund balance sheet and the government-wide
statement of net position
The governmental fund balance sheet includes reconciliation between total fund balance and total net position as
reported in the government-wide statement of net position. The details of the aggregated differences are presented
below.
Notes to Financial Statements
City of Bremerton / 38
Notes to Financial Statements
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds:
Capital Assets of governmental funds net of depreciation 120,032,918$
Net adjustment to increase fund balance - total governmental funds to arrive at
net position of governmental activities $ 120,032,918
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 3,935,863$
Investment interest accrued beyond the city's 30 day measurable
and available period 27,481
Build America Bond subsidy beyond the city's 30 day measurable
and available period 36,073
Net Pension Asset 7,715,058
Deferred Pension Outflows 1,409,933
Net adjustment to increase fund balance - total governmental funds to arrive at
net position - governmental activities $ 13,124,408
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 1,678,552$
Net adjustment to increase fund balance - total governmental funds to arrive at
net position - governmental activities $ 1,678,552
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 (29,520,000)$
Less: Issuance premiums (942,319)
Add: Deferred amount on refunding 820,390
Accrued interest payable (229,037)
Compensated absences (2,296,897)
Net Pension Liability (5,074,239)
Deferred Pension Inflow (2,502,230)
Other Post Employment Benefits (6,479,955)
Net adjustment to reduce fund balance - total governmental funds to arrive
at net position - governmental activities $ (46,224,287)
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.
Notes to Financial Statements
City of Bremerton / 39
Notes to Financial Statements
Capital outlay 9,262,739$
Depreciation (4,088,645)
Gain/loss on retirement (1,163,631)
Contributions of capital assets 2,324,695
Transfer of Assets to Utilities 0
Net adjustment to increase net change in fund balances - governmental funds
to arrive at change in net position - govermental activities $ 6,335,158
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial resources of governmental funds. Also, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these
amounts are deferred and amortized in the statement of activities.
GO bond principal paid 1,715,000$
Principal of GO Bonds Issued -
Premiums on Bonds Sold -
Deferred Amount on Refunding (74,858)
Ammortized Premium 83,552
Net adjustment to decrease net change in fund balances - governmental funds
to arrive at change in net position of governmental activities $ 1,723,694
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 9,544$
Change in deferred property taxes receivable 4,719
Change in court fines receivable 8,661
Change in block grant loans receivable (26,762)
Change in parking/red light fines receivable 66,409
Change in BKAT contracts receivable 0
Change in Build America Bond subsidy receivable 4,267
Change in LEOFF 2 Special Rev GASB 68 0
Change in Pension Expense GASB 68 2,340,552
Change in other post-employment benefits payable (1,658,202)
Change in accrued interest payable 7,787
Change in compensated absences payable 191,834
Net adjustment to decrease net change in fund balances - governmental funds
to arrive at change in net position of governmental funds $ 948,809
The net revenue of certain internal service funds 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 (260,930)$
Net revenue of self insurance activities (526,896)$
Net revenue of employment security activities (27,537)
Net revenue of accrued leave activities (261,150)
Net revenue of information technology activities 93,852
Net revenue of equipment maintenance activities (133,728)
Net adjustment to decrease net change in fund balances - governmental funds
to arrive at change in net position of governmental funds $ (1,116,389)
Notes to Financial Statements
City of Bremerton / 40
Notes to Financial Statements
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 Treasurer’s Investment
Pool, or certificates of deposit with Washington State banks and savings and loan institutions. All temporary investments are
stated at market value. Other property and investments are shown on the statement of net position at cost.
Cash & Cash Equivalents
Cash on hand 6,659,276
Total Cash & Cash Equivalents 6,659,276$
Fair <12 Months 13-24 Months >25Months
Federal National Mortgage Association 4,952,910$ -$ 4,952,910$ 0
Federal Home Loan Bank 8,925,600 1,997,820 4,936,640 1,991,140
Federal Farm Credit Bank 1,980,700 0 1,980,700 0
State Treasurer's Investment Pool 17,438,084 17,438,084 0 0
US Treasury 11,958,260 7,984,600 1,993,820 1,979,840
Total 45,255,554$ 27,420,504$ 13,864,070$ 3,970,980$
Total Cash and Investments 51,914,830$
Investment Maturity (in Years)
Interest Rate Risk. As a means of limiting its exposure to realized fair value losses arising from rising interest rates, the City’s
investment policy requires that to the extent possible maturities be matched with anticipated cash flow requirements. Unless
matched to a specific cash flow, the City is limited by the investment policy to maturities of five years or less.
Fair
Investment Type Value AAA/Aaa (2) AA/Aa (2)A (2)Unrated
Federal Agency Obligations 15,859,210$ 15,859,210$
State Treasurer's Investment Pool 17,438,084 17,438,084
US Treasury 11,958,260 11,958,260
Bank Deposits 6,659,276 6,659,276
Total 51,914,830$ 27,817,470$ -$ -$ 24,097,360$
(1) Fair Value includes accrued interest
(2) Rating agencies: Moody's AAA, AA, A; S&P Aaa, A
(3) Measured at amortized cost
Investment Maturity (in Years)
Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The City’s
investment policy limits investments to those authorized by State of Washington statutes governing the investment of public
funds. The City’s investments in agency securities were rated AA+ by Standard & Poor’s Rating Service. The Washington
State Local Government Investment Pool which operates in a manner consistent with the section 2a-7 of the SEC’s Investment
Act of 1940, is unrated.
Concentration of Credit Risk. The City’s investment policy states that (with the exception of U.S. Treasury securities
and the State Investment Pool) no more than 30% of the City’s total investment portfolio will be invested in a single
security type or with a single financial institution. At 12/31/16 the portfolio was in compliance with this policy.
Notes to Financial Statements
City of Bremerton / 41
Notes to Financial Statements
Local Government Investment Pool 34%
Federal National Mortgage As sociation 10%
Federal Home Loan Bank 17%
Federal Farm Credit Bank 4%
US Treasury 23%
Custodial Credit Risk. The custodial credit risk for deposits is the risk that in the event of bank failure, the City’s
deposits may not be recovered. The City of Bremerton’s investment policy requires deposits to be in a qualified
financial institution. The definition of qualified institution is described in RCW 39.58.080 and the bank must be a
participant in the State of Washington’s Public Depository Protection Commission (PDPC).
The custodial credit risk for safekeeping of securities is the risk in the event that the City would not have access to
investment holdings. The City’s investment policy requires that all security transactions be conducted on a delivery
versus payment basis. Securities will be held in a third party custodial account designated by the City Treasurer.
Investments Measured at Fair Value
The City measures and reports investments at fair value using the valuation input hierarchy established by generally accepted
accounting principles, as follows:
• Level 1 – Quoted prices in active markets for identical assets or liabilities;
• Level 2 – These are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or
liabilities in markets that are not active, or other than quoted prices that are not observable
• Level 3 – Unobservable inputs for an asset or liability
Fair
Investments measured at Fair Value Level Value Level 1 Level 2 Level 3
Federal Agency Obligations 15,859,210$ -$ 15,859,210$
US Treasury 11,958,260 11,958,260
Total 27,817,470$ 11,958,260$ 15,859,210$ -$
Investments measured at amortized cost
WA State LGIP 17,438,084$
Bank Deposits 6,659,276
Total 24,097,360$
Total Investmetnts 51,914,830$
Fair Value Measurements Using
Investments Measured at Amortized Cost
The Washington State Local Investment Pool (LGIP) is an unrated 2a-7 like pool, as defined by GASB 31, and therefore is not
subject to interest rate risk, as the weighted average maturity of the portfolio will not exceed 90 days. The balance of the LGIP
is not subject to custodial risk since all the investments or deposits held by the LGIP are either insured or held by a third-party
custody provider in the LGIP’s name. The City may withdraw its participation for the same or next day settlement.
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.
May 31 - Assessed value of property established for next year's levy at 100 percent of market value.
Notes to Financial Statements
City of Bremerton / 42
Notes to Financial Statements
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 2017, the Kitsap Regional Library District levied $0.39 per $1,000 of assessed valuation, and
therefore the City’s 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 2017 was $2.83 per $1,000 on an assessed valuation of $2.503 billion, for a total regular levy of
$7,099,825.
Special levies, approved by the voters are not subject to the above limitations. In 2017, the City levied an additional $1.06 per
$1,000 for General Obligation Bonds and Emergency Medical Services, for a total additional levy of $2,648,417.
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, 2017, was as follows:
Beginning Ending
Balance Balance
Governmental Activities 1/1/2017 Increases Decreases 12/31/2017
Capital assets, not being depreciated:
Land $ 20,316,233 $-$ 234,622 $ 20,081,611
Construction in progress 7,741,810 9,262,739 5,335,402 11,669,147
Intangibles 4,500 - - 4,500
Total capital assets, not being depreciated 28,062,543 9,262,739 5,570,024 31,755,258
Capital assets, being depreciated:
Buildings/building improvements 64,164,070 506,650 1,639,757 63,030,963
Improvements other than buildings 21,271,398 242,220 376,627 21,136,991
Machinery and equipment 8,926,732 867,455 16,145 9,778,042
Infrastructure 51,535,113 6,160,821 - 57,695,934
Total capital assets, being depreciated 145,897,313 7,777,146 2,032,529 151,641,930
Beginning Ending
Balance Balance
Governmental Activities 1/1/2017 Increases Decreases 12/31/2017
Less accumulated depreciation for:
Buildings/buildings improvements 15,744,577 1,309,677 751,649 16,302,605
Improvements other than buildings 12,172,375 713,040 195,977 12,689,439
Machinery and equipment 6,983,335 261,702 38,847 7,206,190
Infrastructure 25,301,086 1,804,225 - 27,105,311
Total accumulated depreciation 60,201,373 4,088,643 986,472 63,303,544
Total capital assets, being depreciated, net 85,695,940 3,688,503 1,046,057 88,338,386
Governmental activities capital assets, net $ 113,758,483 $ 12,951,242 $ 6,616,081 $ 120,093,644
Notes to Financial Statements
City of Bremerton / 43
Notes to Financial Statements
Beginning Ending
Balance Balance
Business-type Activities 1/1/2017 Increases Decreases 12/31/2017
Capital assets, not being depreciated:
Land $ 9,514,283 $ 234,622 $ - $ 9,748,905
Construction in progress 5,980,814 10,249,859 11,738,425 4,492,249
Intangibles 78,781 - - 78,781
Total capital assets, not being depreciated 15,573,878 10,484,481 - 11,738,425 - 14,319,934
Capital assets, being depreciated:
Buildings/building improvements 56,116,133 3,428,596 541,958 59,002,772
Intangibles 2,406,314 900 - 2,407,214
Improvements other than buildings 148,057,264 4,548,168 107,446 152,497,986
Machinery and equipment 64,629,932 7,549,343 2,520,908 69,658,367
Total capital assets, being depreciated 271,209,644 15,527,007 3,170,313 283,566,338
Less accumulated depreciation for:
Buildings/buildings improvements 23,113,306 1,069,285 151,748 24,030,842
Intangibles 2,263,183 9,220 - 2,272,403
Improvements other than buildings 51,909,266 2,869,793 76,493 54,702,566
Machinery and equipment 32,526,462 2,860,033 2,070,203 33,316,292
Total accumulated depreciation 109,812,217 6,808,331 2,298,444 114,322,104
Total capital assets, being depreciated, net 161,397,426 8,718,677 871,868 169,244,235
Business-type activities Capital assets, net $ 176,971,304 $ 19,203,157 $ 12,610,293 $ 183,564,169
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government $ 222,516
Public safety 366,585
Transportation, including depreciation of general infrastructure assets 1,946,459
Economic environment 348
Culture and recreation 1,552,737
Capital assets held by the government's internal service funds
are charged to the various functions based on their usage of the assets -
Total depreciation expense - Governmental activities $ 4,088,645
Business-type activities:
Water $ 2,143,774
Wastewater 3,694,103
Stormwater 130,914
Golf 162,359
Capital assets held by the government's internal service funds
are charged to the various functions based on their usage of the assets 677,182
Total depreciation expense - Business-type activities $ 6,808,331
6. Construction Commitments
At December 31, 2017, the City had several construction projects underway. The following table contains the projects
and status at year end.
Notes to Financial Statements
City of Bremerton / 44
Notes to Financial Statements
Remaining
Project Spent to Date Commitment
Water System Scada Lifecycle Upgrade 602,774 5,226
ESTP Outfall Replacement Project 120,952 46,520
OB Transmission Main Repl Project 110,712 23,687
WWTP Sewer Interceptor Upgrades 178,825 134,662
Sewer Grit Study & OB Sewer Pre-design 147,836 147,836
Lebo Blvd Rodway Improvement Project 4,934,570 241,449
Construction Mgmt for Lebo Blvd Rd Proj 232,145 27,993
Rain Garden project 65,000 46,411
HSI Phase II & PSNS Safety Project 1,619,296 964,737
Manette Park Renovation 56,558 15,571
Crownhill Elementary Safe Routes to School 456,101 18,279
Interior Coating Repairs to Res 21 100,000 7,323
Admin of US EPA Brownfields Grant 75,000 64,299
Pavement Mgmt Prog & Sidewalk Assess 59,850 67,725
Sewage PS CW4 Upgrade & OF-12 Mod 260,760 221,271
$9,020,379 $ $2,032,989
7. Pension Plans
The following table represents the aggregate pension amounts for all plans subject to the requirements of the GASB Statement
68, Accounting and Financial Reporting for Pensions for the year 2017:
Pension liabilities $(9,931,829)
Pension assets $7,715,058
Deferred outflows of resources $2,116,145
Deferred inflows of resources $(3,214,433)
Pension expense/expenditures $375,769
Aggregate Pension Amounts – All Plans
State Sponsored 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 and defined contribution retirement plans. The state Legislature establishes, and amends, laws
pertaining to the creation and administration of all public retirement systems.
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
P.O. Box 48380
Olympia, WA 98540-8380
Or the DRS CAFR may be downloaded from the DRS website at www.drs.wa.gov.
Public Employees’ Retirement System (PERS)
PERS members include elected officials; state employees; employees of the Supreme, Appeals and Superior Courts; employees
of the legislature; employees of district and municipal courts; employees of local governments; and higher education employees
not participating in higher education retirement programs. PERS is comprised of three separate pension plans for membership
Notes to Financial Statements
City of Bremerton / 45
Notes to Financial Statements
purposes. PERS plans 1 and 2 are defined benefit plans, and PERS plan 3 is a defined benefit plan with a defined contribution
component.
PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
member’s average final compensation (AFC) times the member’s years of service. The AFC is the average of the member’s 24
highest consecutive service months. Members are eligible for retirement from active status at any age with at least 30 years of
service, at age 55 with at least 25 years of service, or at age 60 with at least five years of service. Members retiring from active
status prior to the age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect the
choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional cost-of-living
adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the Department of Labor and Industries.
PERS 1 members were vested after the completion of five years of eligible service. The plan was closed to new entrants on
September 30, 1977.
Contributions
The PERS Plan 1-member contribution rate is established by State statute at 6 percent. The employer contribution rate is
developed by the Office of the State Actuary and includes an administrative expense component that is currently set at 0.18
percent. Each biennium, the state Pension Funding Council adopts Plan 1 employer contribution rates. The PERS Plan 1
required contribution rates (expressed as a percentage of covered payroll) for 2017 were as follows:
PERS Plan 1
Actual Contribution Rates:Employer Employee*
January - June 2017:
PERS Plan 1 6.23%6.00%
PERS Plan 1 UAAL 4.77%
Administrative Fee 0.18%
Total 11.18%6.00%
July - December 2017:
PERS Plan 1 7.49%6.00%
PERS Plan 1 UAAL 5.03%
Administrative Fee 0.18%
Total 12.70%6.00%
* For employees participating in JBM, the contribution rate was 12.26%
The city’s actual contributions to the plan were $751,889 for the year ended December 31, 2017.
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
member’s average final compensation (AFC) times the member’s years of service for Plan 2 and 1 percent of AFC for Plan 3.
The AFC is the average of the member’s 60 highest-paid consecutive service months. There is no cap on years of service
credit. Members are eligible for retirement with a full benefit at 65 with at least five years of service credit. Retirement before
age 65 is considered an early retirement. PERS Plan 2/3 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 benefit that is reduced by a factor that varies according to age for each
year before age 65. PERS Plan 2/3 members who have 30 or more years of service credit and are at least 55 years old can retire
under one of two provisions:
• With a benefit that is reduced by three 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 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a reduction of five 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 credit. PERS Plan 2/3 retirement benefits are also actuarially reduced to reflect the choice of a survivor benefit.
Other PERS Plan 2/3 benefits include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI),
capped at three percent annually and a one-time duty related death benefit, if found eligible by the Department of Labor and
Industries. PERS 2 members are vested after completing five years of eligible service. 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 12 months of that service are
earned after age 44.
Notes to Financial Statements
City of Bremerton / 46
Notes to Financial Statements
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and investment earnings on those
contributions. PERS Plan 3 members choose their contribution rate upon joining membership and have a chance to change
rates upon changing employers. As established by statute, Plan 3 required defined contribution rates are set at a minimum of 5
percent and escalate to 15 percent with a choice of six options. Employers do not contribute to the defined contribution
benefits. PERS Plan 3 members are immediately vested in the defined contribution portion of their plan.
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include a component to address the PERS Plan 1
UAAL and an administrative expense that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council
adopts Plan 2 employer and employee contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required
contribution rates (expressed as a percentage of covered payroll) for 2017 were as follows:
PERS Plan 2/3
Actual Contribution Rates:Employer 2/3 Employee 2*
January - June 2017:
PERS Plan 2/3 6.23%6.12%
PERS Plan 1 UAAL 4.77%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 11.18%6.12%
July - December 2017:
PERS Plan 2/3 7.49%7.38%
PERS Plan 1 UAAL 5.03%
Administrative Fee 0.18%
Employee PERS Plan 3 Varies
Total 12.70%7.38%
* For employees participating in JBM, the contribution rate was 15.30%
The city’s actual contributions to the plan were $945,761 for the year ended December 31, 2017.
Public Safety Employees’ Retirement System (PSERS)
PSERS Plan 2 was created by the 2004 Legislature and became effective July 1, 2006. To be eligible for membership, 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 membership includes:
•PERS 2 or 3 employees hired by a covered employer 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.
Notes to Financial Statements
City of Bremerton / 47
Notes to Financial Statements
PSERS covered employers include:
•Certain 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),
•Correctional entities formed by PSERS employers under the Interlocal Cooperation Act.
PSERS Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
average final compensation (AFC) for each year of service. The AFC is based on the member’s 60 consecutive highest
creditable months of service. Benefits are actuarially reduced for each year that the member’s age is less than 60 (with ten or
more service credit years in PSERS), or less than 65 (with fewer than ten service credit years). There is no cap on years of
service credit. Members are eligible for retirement at the age of 65 with five years of service; or at the age of 60 with at least ten
years of PSERS service credit; or at age 53 with 20 years of service. Retirement before age 60 is considered an early
retirement. 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 three percent per year reduction for each year between the age at retirement and age 60 applies.
PSERS Plan 2 retirement benefits are actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty
and non-duty disability payments, an optional cost-of living adjustment (COLA), and a one-time duty-related death benefit, if
found eligible by the Department of Labor and Industries. PSERS Plan 2 members are vested after completing five years of
eligible service.
Contributions
The PSERS Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
Plan 2. The Plan 2 employer rates include components to address the PERS Plan 1 unfunded actuarial accrued liability and
administrative expense currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts Plan 2 employer
and employee contribution rates.
The PSERS Plan 2 required contribution rates (expressed as a percentage of current-year covered payroll) for 2017 were as
follows:
PSERS Plan 2
Actual Contribution Rates:Employer Employee
January - June 2017:
PSERS Plan 2 6.59%6.59%
PERS Plan 1 UAAL 4.77%
Administrative Fee 0.18%
Total 11.54%6.59%
PSERS Plan 2
July - August 2017:
PSERS Plan 2 6.73%6.73%
PERS Plan 1 UAAL 5.03%
Administrative Fee 0.18%
Total 11.94%6.73%
September - December 2017:
PSERS Plan 2 6.74%6.74%
PERS Plan 1 UAAL 5.03%
Administrative Fee 0.18%
Total 11.95%6.74%
The city’s actual contributions to the plan were $12,572 for the year ended December 31, 2017.
Notes to Financial Statements
City of Bremerton / 48
Notes to Financial Statements
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned officers, firefighters, and
as of July 24, 2005, emergency medical technicians. LEOFF is comprised of two separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per year of service
calculated as a percent of final average salary (FAS) as follows:
•20+ years of service – 2.0% of FAS
•10-19 years of service – 1.5% of FAS
•5-9 years of service – 1% of FAS
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 ten years of service. Members are eligible for retirement with five years of service at the age of 50. Other benefits
include duty and non-duty disability payments, a cost-of living adjustment (COLA), and a one-time duty-related death benefit,
if found eligible by the Department of Labor and Industries. LEOFF 1 members were vested after the completion of five years
of eligible service. The plan was closed to new entrants on September 30, 1977.
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the plan remains fully
funded. The LEOFF Plan I had no required employer or employee contributions for fiscal year 2017. Employers paid only the
administrative expense of 0.18 percent of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as two percent of the
final average salary (FAS) per year of service (the FAS is based on the highest consecutive 60 months). Members are eligible
for retirement with a full benefit at 53 with at least five years of service credit. Members who retire prior to the age of 53
receive reduced benefits. If the member has at least 20 years of service and is age 50, the reduction is three percent for each
year prior to age 53. Otherwise, the benefits are actuarially reduced for each year prior to age 53. LEOFF 2 retirement benefits
are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and non-duty disability
payments, a cost-of-living allowance (based on the CPI), capped at three percent annually and a one-time duty-related death
benefit, if found eligible by the Department of Labor and Industries. LEOFF 2 members are vested after the completion of five
years of eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State Actuary to fully fund
Plan 2. The employer rate included an administrative expense component set at 0.18 percent. Plan 2 employers and employees
are required to pay at the level adopted by the LEOFF Plan 2 Retirement Board. The LEOFF Plan 2 required contribution rates
(expressed as a percentage of covered payroll) for 2017 were as follows:
LEOFF Plan 2
Actual Contribution Rates:Employer Employee
January - June 2017:
State and local governments 5.05%8.41%
Administrative Fee 0.18%
Total 5.23%8.41%
Ports and Universities 8.41%8.41%
Administrative Fee 0.18%
Total 8.59%8.41%
July - December 2017:
State and local governments 5.25%8.75%
Administrative Fee 0.18%
Total 5.43%8.75%
Ports and Universities 8.75%8.75%
Administrative Fee 0.18%
Total 8.93%8.75%
Notes to Financial Statements
City of Bremerton / 49
Notes to Financial Statements
The city’s actual contributions to the plan were $560,851 for the year ended December 31, 2017.
The Legislature, by means of a special funding arrangement, appropriates money from the state General Fund to supplement the
current service liability and fund the prior service costs of Plan 2 in accordance with the recommendations of the Pension
Funding Council and the LEOFF Plan 2 Retirement Board. This special funding situation is not mandated by the state
constitution and could be changed by statute. For the state fiscal year ending June 30, 2017, the state contributed $58,339,032
to LEOFF Plan 2.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial valuation completed
in 2017 with a valuation date of June 30, 2017. The actuarial assumptions used in the valuation were based on the results of the
Office of the State Actuary’s (OSA) 2007-2012 Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2015 actuarial valuation report. The TPL
was calculated as of the valuation date and rolled forward to the measurement date of June 30, 2017. Plan liabilities were rolled
forward from June 30, 2015, to June 30, 2017, reflecting each plan’s normal cost (using the entry-age cost method), assumed
interest and actual benefit payments.
•Inflation: 3% total economic inflation; 3.75% salary inflation
•Salary increases: In addition to the base 3.75% salary inflation assumption, salaries are also expected to grow by
promotions and longevity.
•Investment rate of return: 7.5%
Mortality rates were based on the RP-2000 report’s Combined Healthy Table and Combined Disabled Table, published by the
Society of Actuaries. The OSA applied offsets to the base table and recognized future improvements in mortality by projecting
the mortality rates using 100 percent Scale BB. Mortality rates are applied on a generational basis; meaning, each member is
assumed to receive additional mortality improvements in each future year throughout his or her lifetime.
There were minor changes in methods and assumptions since the last valuation.
•The OSA updated demographic assumptions, consistent with the changes from the 2007-2012 Experience Study
Report, used when valuing the PERS 1 and TERS 1 Basic Minimum COLA.
•The OSA corrected how valuation software calculates a member’s entry age under the entry age normal actuarial cost
method. Previously, the funding age was rounded, resulting in an entry age one year higher in some cases.
•For purposes of calculating the Plan 2/3 Entry Age Normal Cost contribution rates, the OSA now uses the current
blend of Plan 2 and Plan 3 salaries rather than using a long-term membership assumption of two-thirds Plan 2
members and one-third Plan 3 members.
•The OSA changed the way it applies salary limits, as described in the 2007-2012 Experience Study Report.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.5 percent.
To determine that rate, an asset sufficiency test included an assumed 7.7 percent long-term discount rate to determine funding
liabilities for calculating future contribution rate requirements. (All plans use 7.7 percent except LEOFF 2, which has assumed
7.5 percent). Consistent with the long-term expected rate of return, a 7.5 percent future investment rate of return on invested
assets was assumed for the test. Contributions from plan members and employers are assumed to continue being made at
contractually required rates (including PERS 2/3, PSERS 2, SERS 2/3, and TRS 2/3 employers, whose rates include a
component for the PERS 1, and TRS 1 plan liabilities). Based on these assumptions, the pension plans’ fiduciary net position
was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return of 7.5 percent was used to determine the total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.5 percent was determined using a building-
block-method. The Washington State Investment Board (WSIB) used a best estimate of expected future rates of return
(expected returns, net of pension plan investment expense, including inflation) to develop each major asset class. Those
Notes to Financial Statements
City of Bremerton / 50
Notes to Financial Statements
expected returns make up one component of WSIB’s capital market assumptions. The WSIB uses the capital market
assumptions and their target asset allocation to simulate future investment returns at various future times. The long-term
expected rate of return of 7.5 percent approximately equals the median of the simulated investment returns over a 50-year time
horizon.
Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as
of June 30, 2017, are summarized in the table below. The inflation component used to create the table is 2.2 percent and
represents the WSIB’s most recent long-term estimate of broad economic inflation.
Asset Class Target Allocation % Long-Term Expected Real
Rate of Return Arithmetic
Fixed Income 20%1.70%
Tangible Assets 5%4.90%
Real Estate 15%5.80%
Global Equity 37%6.30%
Private Equity 23%9.30%
100%
Sensitivity of Net Pension Liability
The table below presents the city’s proportionate share of the net pension liability calculated using the discount rate of 7.5
percent, as well as what the city’s proportionate share of the net pension liability would be if it were calculated using a discount
rate that is 1-percentage point lower (6.5 percent) or 1-percentage point higher (8.5 percent) than the current rate.
1% Decrease Current Discount
Rate 1% Increase
6.50%7.50%8.50%
PERS 1 $ 6,537,126 $ 5,366,256 $ 4,352,032
PERS 2/3 $ 12,273,597 $ 4,555,724 $ (1,767,928)
PSERS 2 $66,131 $9,849 $(34,280)
LEOFF 1 $ (1,979,841) $ (2,669,093) $ (3,261,004)
LEOFF 2 $ 1,091,939 $ (5,045,965) $ (10,046,872)
Pension Plan Fiduciary Net Position
Detailed information about the State’s pension plans’ fiduciary net position is available in the separately issued DRS financial
report.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At June 30, 2017, the City reported a total pension liability of $2,216,771 for its proportionate share of the net pension liabilities
as follows:
Liability (or Asset)
PERS 1 $5,366,256
PERS 2/3 $4,555,724
PSERS 2 $9,849
LEOFF 1 $(2,669,093)
LEOFF 2 $(5,045,965)
Notes to Financial Statements
City of Bremerton / 51
Notes to Financial Statements
The amount of the asset reported above for LEOFF Plan 2 reflects a reduction for State pension support provided to the city.
The amount recognized by the city as its proportionate share of the net pension asset, the related State support, and the total
portion of the net pension asset that was associated with the city were as follows:
LEOFF 1 Asset LEOFF 2 Asset
Employer's proportionate share $ (2,669,093) $ (5,045,965)
State's proportionate share of the net pension asset
associated with the employer $ (18,053,682) $ (3,273,223)
TOTAL $ (20,722,775) $ (8,319,188)
At June 30, 2017 the city’s proportionate share of the collective net pension liabilities was as follows:
PERS 1 0.1188%0.1131%-0.0057%
PERS 2/3 0.1352%0.1311%-0.0041%
PSERS 2 0.0469%0.0503%0.0034%
LEOFF 1 0.1742%0.1759%0.0017%
LEOFF 2 0.3792%0.3636%-0.0156%
Proportionate Share
6/30/17 Change in ProportionProportionate Share
6/30/16
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30 are used as the basis
for determining each employer’s proportionate share of the collective pension amounts reported by the DRS in the Schedules of
Employer and Nonemployer Allocations for all plans except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1 from 1971 through
2000 and the retirement benefit payments in fiscal year 2017. Historical data was obtained from a 2011 study by the Office of
the State Actuary (OSA). In fiscal year 2017, the state of Washington contributed 87.12 percent of LEOFF 1 employer
contributions and all other employers contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully
funded and no further employer contributions have been required since June 2000. If the plan becomes underfunded, funding
of the remaining liability will require new legislation. The allocation method the plan chose reflects the projected long-term
contribution effort based on historical data.
In fiscal year 2017, the state of Washington contributed 39.80 percent of LEOFF 2 employer contributions pursuant to RCW
41.27.726 and all other employers contributed the remaining 60.20 percent of employer contributions.
The collective net pension liability (asset) was measured as of June 30, 2017, and the actuarial valuation date on which the total
pension liability (asset) is based was as of June 30, 2015, with update procedures used to roll forward the total pension liability
to the measurement date.
Pension Expense
For the year ended December 31, 2017, the city recognized pension expense as follows:
Pension Expense
PERS 1 $ 28,872
PERS 2/3 $ 570,684
PSERS $ 14,025
LEOFF 1 $ (443,437)
LEOFF 2 $ 205,626
TOTAL $ 375,770
Notes to Financial Statements
City of Bremerton / 52
Notes to Financial Statements
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2017, the city reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
PERS 1 Deferred Outflows of
Resources
Deferred Inflows of
Resources
TOTAL 395,236 (200,254)
Differences between expected and actual
experience $- $-
Net difference between projected and actual
investment earnings on pension plan
investments
$- $(200,254)
Changes of assumptions $- $-
Changes in proportion and differences
between contributions and proportionate share
of contributions
$- $-
Contributions subsequent to the measurement
date $395,236 $-
PERS 2-3 Deferred Outflows of
Resources
Deferred Inflows of
Resources
TOTAL 1,159,041 (1,680,449)
Changes in proportion and differences
between contributions and proportionate share
of contributions
$123,922 $(316,173)
Contributions subsequent to the measurement
date $525,126 $-
Net difference between projected and actual
investment earnings on pension plan
investments
$- $(1,214,446)
Changes of assumptions $48,391 $-
Differences between expected and actual
experience $461,602 $(149,830)
PSERS Deferred Outflows of
Resources
Deferred Inflows of
Resources
Changes of assumptions $83 $-
Changes in proportion and differences
between contributions and proportionate share
of contributions
$2,598 $(144)
Differences between expected and actual
experience $5,825 $(700)
Net difference between projected and actual
investment earnings on pension plan
investments
$- $(6,907)
Notes to Financial Statements
City of Bremerton / 53
Notes to Financial Statements
TOTAL 14,923 (7,751)
Contributions subsequent to the measurement
date $6,417 $-
Deferred outflows of resources related to pensions resulting from the city’s contributions subsequent to the measurement date
will be recognized as a reduction of the net pension liability in the year ended December 31, 2017. Other amounts reported as
deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year ended December 31:PERS 1
2018 $(135,359)
2019 $42,735
2020 $(9,923)
2021 $(97,707)
Total (200,254)$
Year ended December 31:PERS 2/3
2018 $(532,075)
2019 $81,062
2020 $(144,388)
2021 $(512,010)
2022 $17,488
Thereafter $43,388
Total (1,046,535)$
Year ended December 31:PSERS
2018 $(1,113)
2019 $1,601
2020 $703
2021 $(1,083)
2022 $83
Thereafter $563
Total 754$
Year ended December 31:LEOFF 1
2018 $(155,654)
2019 $41,980
2020 $(16,764)
2021 $(117,583)
Total (248,021)$
Notes to Financial Statements
City of Bremerton / 54
Notes to Financial Statements
Year ended December 31:LEOFF 2
2018 $(488,073)
2019 $150,223
2020 $(45,393)
2021 $(458,049)
2022 $(7,155)
Thereafter $(32,911)
Total (881,358)$
8. Risk Management
The City’s Risk Management Fund is used to finance its various exposures to loss. These exposures include theft, damage or
destruction of assets, errors and omissions, property damage and injury of others. Smaller losses are self-insured while
commercially available excess insurance is purchased for many larger losses. The City’s General and Utility funds participate
in financing the Risk Management Fund.
Following is a summary of the City’s 2017 insurance coverage and risk retention:
Coverage Limit Self-Insured
Risk Per Occurrence Retention Insurer
Excess liability $10,000,000 $500,000 Lexington Insurance Company
Excess workers' compensation Statutory 500,000 Midwest Employers Casualty Company
Blanket property 100,000,000 100,000 Lexington Insurance Cormpany
Employee blanket bond 1,000,000 25,000 Great American Insurance Company
Pollution legal liability 1,000,000 100,000 Indian Harbor Insurance Company
The risk manager and claims administrators establish reserves for open claims on a case by case basis, after an assessment of
each claim’s settlement value. Actuarial techniques are used to estimate the long-term liability of the fund for both reported and
unreported losses. As of December 31, 2017, the Risk Management Fund had cash and investment reserves of $851,868. 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 $1,418,058. 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 $354,514
The following table shows the actual claims activity for 2016 and 2017:
2016 2017
Claims liability - beginning of year 1,154,731$ 1,698,748$
Claims incurred 726,748 852,698
Estimate change prior years 206,073 0
Payment on claims (388,804)(778,874)
Claims liability - end of year $ 1,698,748 $ 1,772,572
9. Long-term Debt
A.Long Term Debt
The City issues general obligation and revenue bonds to finance the purchase or construction of capital assets. Bonded
indebtedness has also been entered into in prior years 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.
Notes to Financial Statements
City of Bremerton / 55
Notes to Financial Statements
General obligation bonds currently outstanding are as follows:
Maturity Interest Outstanding
Date Rate 12/31/2017
LTGO 2010 BABS 9/1/2035 3.6125 5,595,000$
2010 UTGO Refunding 12/1/2030 3.4191 7,005,000
2015 UTGO Fire Bonds 12/31/2025 3,410,000
2010 LTGO (B) BABS 12/1/2027 3.0664 1,595,000
2012 LTGO REFUNDING - GOVT CENTER 7/1/2034 2.7954 4,315,000
2013 LTGOA Refunding - Conf Ctr Pkg 12/1/2036 3.0082 7,600,000
2013 LTGOB Refunding - Golf Course 12/1/2028 3.0082 3,925,000
Total General Obligation Bonds and Notes 33,445,000$
The annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending Governmental Activities Business Activities
December 31 Principal Interest Principal Interest
2017 1,715,000 1,223,537 300,000 125,785
2018 1,770,000 1,176,978 315,000 121,585
2019 1,820,000 1,123,837 320,000 116,230
2020 1,880,000 1,068,797 325,000 109,670
2021-2025 10,520,000 4,286,085 1,755,000 412,465
2026-2030 7,325,000 2,285,153 1,210,000 95,745
2031-2035 5,640,000 864,107 0
2036-2040 565,000 20,905
Total 31,235,000$ 12,049,399$ 4,225,000$ 981,480$
Maturity Interest Outstanding
Date Rate 12/31/2017
W/S REF & REVENUE BOND 2007 12/1/2021 4.28 1,700,000
W/S REF & REVENUE BOND 2014 12/1/2034 3.85 1,756,050
W/S REF & REVENUE BOND 2014 12/1/2034 3.85 4,398,950
W/S REF & REVENUE BOND 2016 12/1/2035 2.51 2,904,297
W/S REF & REVENUE BOND 2016 12/1/2035 2.51 2,860,304
W/S REF & REVENUE BOND 2016 12/1/2035 2.51 1,820,400
PWTF CALLOW CSO PRIORITY II 7/1/2017 1 (0)
PWTF SR 303 WATER MAIN 7/1/2018 1.00 165,790
PWTF CSO REDUCTION DESIGN 7/1/2020 1.00 97,584
PWTF EAST BREMERTON CSO 7/1/2021 0.50 633,333
PWTF MULTI BASIN CSO 7/1/2020 1.00 447,978
PWTF CALLOW CSO PRI. 3 / 5 7/1/2020 1.00 670,288
PWTF ANDERSON COVE BASIN 12 7/1/2023 0.50 173,094
PWTF NAVAL AVE 7/1/2023 4.00 78,947
PWTF BRENTWOOD STORM DRAIN REPAIR 7/1/2024 4.00 69,049
PWTF PACIFIC AVE BASIN CSO 7/1/2024 0.50 489,841
PWTF TRACYTON WATER SYS PH 2 7/1/2019 2.00 19,815
PWTF WWTP UPGRADE 7/1/2025 0.50 85,379
Revenue Bonds and Loans, Issuancee, Redemption, and Balance Outstanding
Notes to Financial Statements
City of Bremerton / 56
Notes to Financial Statements
Maturity Interest Outstanding
Date Rate 12/31/2017
Revenue Bonds and Loans, Issuancee, Redemption, and Balance Outstanding
PWTF ANDERSON COVE SEW PS CW1 7/1/2027 0.50 355,264
PWTF WWTP UPGRADES 7/1/2027 0.50 1,629,604
CCWF CALLOW CSO DESIGN 5/1/2017 0 -
CCWF CALLOW CSO PRIORITY I PH 1 7/31/2018 4.80 202,332
DWSRF CORROSION CONTROL 10/1/2018 4.00 55,016
DWSRF CASAD DAM VALVE REPL 10/1/2023 1.50 26,406
DWSRF EASTSIDE FLOW & PRESSURE IMP 10/1/2022 2.50 305,101
DWSRF SEISMIC UPGRADE 10/1/2022 2.50 196,379
DWSRF ANDERSON CREEK 10/1/2024 1.50 37,673
DWSRF PUMP STATION 4 UPGRADE 10/1/2023 1.50 345,667
DWSRF SEISMIC UPGRADES 10/1/2024 1.50 198,088
DWSRF TRACYTON WD UPGRADE 10/1/2021 2.50 558,329
ARRA DWSRF UV TREATMENT UPGRADE 10/1/2017 0.00 0
DWSRF SEISMIC VALVE FLOW CONTROL 12/1/2036 1.00 872,715
DWSRF RESERVOIR 4 COVER 10/1/2024 1,695,087
WPCRF CSO PLAN UPDATE 12/31/2022 1.50 71,681
WPCRF ANDERSON COVE CSO 2/27/2021 1.50 193,472
WPCRF CALLOW DESIGN FINAL 12/31/2022 1.50 165,776
WPCRF ANDERSON COVE CSO 1/23/2022 1.50 164,679
WPCRF TRENTON/CHERRY 10/15/2024 1.50 403,032
WPCRF ANDERSON COVE BASIN 12 9/17/2026 1.50 131,690
WPCRF TRENTON PUMP STATION 10/15/2024 1.50 402,771
WPCRF TRACYTON BEACH CSO 2/9/2025 1.50 250,423
WPCRF PACIFIC AVE CSO RED - SEP 6/30/2024 1.50 147,042
WPCRF PACIFIC AVE CSO REDUCTION 12/31/2027 1.50 586,518
WPCRF CHERRY/TRENTON CSO RED -F 12/31/2026 1.50 548,342
WPCRF WWTP UPGRADE 1/1/2029 2.60 411,935
WPCRF GORST SEWERAGE CONSTR 12/31/2030 1.40 419,132
WPCRF GORST SEWERAGE CONSTR 10/17/2032 1.40 42,469
WPCRF GORST SEPTIC SYSTEM DES 12/31/2030 2.90 83,147
WPCRF GORST SEWERAGE DESIGN 12/31/2030 1.40 403,772
Total Revenue Bonds and Loans 29,274,642
Revenue bond and loan debt service requirements to maturity are as follows:
Year Ending Governmental Activities Business Activities
December 31 Principal Interest Principal Interest
2018 1,770,000 1,176,978 315,000 121,585
2019 1,820,000 1,123,837 320,000 116,230
2020 1,880,000 1,068,794 325,000 109,670
2021 1,940,000 1,008,751 330,000 102,195
2022 2,010,000 942,069 340,000 93,450
2023-2027 10,345,000 3,458,933 1,875,000 296,185
2028-2032 5,810,000 1,663,437 420,000 16,380
2033-2036 3,945,000 383,060 - -
Total 29,520,000$ 10,825,860$ 3,925,000$ 855,695$
Notes to Financial Statements
City of Bremerton / 57
Notes to Financial Statements
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, 2017, the city has $425,924 available in debt service funds to service the general bonded debt.
Restricted assets in proprietary funds contain $2,098,215 in sinking funds and reserves as required by bond indentures.
B. Refunded Debt
In prior years, the City defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable
trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the
liability for defeased bonds are not included in the City’s financial statements. At December 31, 2017 there were no
defeased bonds outstanding
10. Changes in Long Term Liabilities
During the year ended December 31, 2017, the following changes occurred in long-term liabilities:
Balance Balance Due Within
1/1/2017 Additions Reductions 12/31/2017 One Year
Governmental Activities:
Bonds payable:
General obligation bonds 31,235,000$ -$ 1,715,000$ 29,520,000 1,770,000$
Notes Payable - - - - -
Add unamortized premiums 1,025,871 - 83,552 942,319 -
Total bonds payable:32,260,871 - 1,798,552 30,462,319 1,770,000
Claims and judgments 1,698,748 - 280,690 1,418,058 -
Compensated absences 2,530,818 - 189,917 2,340,901 918,759
Self Ins urance 395,632 - 395,632 - -
Other Post Employment Benefits 4,821,753 1,658,202 - 6,479,955 -
Pension Liability 7,767,783 - 2,454,087 5,313,696 -
Governmental activity
long-term liabilities:49,475,605$ 1,658,202$ 5,118,878$ 46,014,929$ 2,688,759$
Beginning Ending
Balance Balance Due Within
1/1/2017 Additions Reductions 12/31/2017 One Year
Business-type Activities:
Bonds payable:
General obligation bonds 4,225,000$ -$ 300,000$ 3,925,000$ 315,000$
Revenue bonds 16,355,000 - 915,000 15,440,000 990,000
Add unamortized premiums 1,495,265 - 80,520 1,414,745 -
Total bonds payable:22,075,265 20,779,745 1,305,000
Intergovernmental loans 14,415,189 1,940,355 2,520,904 13,834,640 2,368,347
Compensated Absences 658,248 85,636 - 743,884 297,554
Pension Liability 5,432,716 - 814,584 4,618,132 -
Business-type activity
long-term liabilities:42,581,418$ 2,025,991$ 3,335,488$ 39,976,401$ 3,970,901$
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
Notes to Financial Statements
City of Bremerton / 58
Notes to Financial Statements
governmental activities. At year end $2,094,380 of Risk Management claims and judgments and $42,087 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.
11. Contingencies and Litigation
As of December 31, 2017, there were a small number of claims for damages and lawsuits pending against the City. In the
opinion of the City’s 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 assistance 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.
12. Restricted Net Position
The government-wide statement of net position reports $9,583,601 of restricted net position, all of which is restricted by
enabling legislation and external contractual commitments.
13. Interfund Balances and Transfers
A.Interfund Balances
Interfund balances at December 31, 2017, were as follows:
General Other Waste-Storm-Internal
Fund Govt Water Water Golf Water Service Total
General Fund -$ 185,447$ 440,869$ 340,585$ -$ 31,664$ 7,624$ 1,006,189$
Other governmental funds 41,910 128,465 - - - 49,523 - 219,898
Water 146,714 - - - - - - 146,714
Wastewater 430,916 - - - - - - 430,916
Stormwater 73,881 - - - - - - 73,881
Internal Service 120,544 33,108 16,427 8,036 39,754 22,853 69,698 310,420
Total 813,965$ 347,020$ 457,296$ 348,621$ 39,754$ 104,040$ 77,322$ 2,188,018$ Due ToDue From
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 2018. 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 General
Loaned From Purpose Payment Fund Golf Course Total
Internal service Equipment purchase 2018 - 39,384 39,384
Internal service Conference Ctr Exp 2034 472,222 - 472,222
Total 472,222$ 39,384$ 511,606$
B.Interfund Transfers
Interfund transfers at December 31, 2017 were as follows:
Notes to Financial Statements
City of Bremerton / 59
Notes to Financial Statements
General Other
Fund Govt Total
General Fund -$ 281,330$ 281,330$
Other governmental funds 876,910 1,120,465 1,997,375
Total 876,910$ 1,401,795$ 2,278,705$
Transfer From
Transfer ToInterfund transfers are the flow of assets without equivalent flows of assets in return and without a requirement for
repayment. Generally, funds flow between funds with tax or other resources to funds for payment of debt service,
capital construction or in support of operations. This category also includes payment in lieu of taxes levied by the
General fund on city utility funds that are not payments for, and are not reasonably equivalent in value to, services
provided.
There were no significant transfers in 2017.
14. Receivable and Payable Balances
A.Receivables
Receivables at December 31, 2017, were as follows:
Special Notes
Accounts Taxes Assessments Contracts Other Total
Governmental Activities:
General Fund 2,041,510$ 2,318,499$ -$ 10,282$ -$ 4,370,291$
Non-major and other funds 183,033 422,075 - 127,436 155,920 888,464
Reconciliation of balances in fund
financial statements to government-wide
financial statements - - - - 33,064 33,064
Total governmental activities 2,224,543$ 2,740,574$ -$ 137,718$ 188,984$ 5,291,819$
Business-Type Activities:
Water 1,923,582$ -$ 384,492$ 46,232$ -$ 2,354,306$
Golf 81,953 - -- - 81,953
Wastewater 2,715,242 15,590 - - - 2,730,832
Stormwater 679,673 - - - - 679,673
Reconciliation of balances in fund
financial statements to government-wide
financial statements - - - - 47,535 47,535
Total business-type activities 5,400,450$ 15,590$ 384,492$ 46,232$ 47,535$ 5,894,299$
B.Payables
Accounts Payable at December 31, 2017 were as follows:
Vendors Retainage Other Total
Governmental Activities:
General Fund 837,921$ 5,351$ 17,269$ 860,541$
Non-major and other funds 947,832 49,115 495 997,442$
Reconciliation of balances in fund
financial statements to government-
wide financial statements - - 477,762 477,762
Total governmental activities 1,785,753$ 54,466$ 495,526$ 2,335,745$
Notes to Financial Statements
City of Bremerton / 60
Notes to Financial Statements
Vendors Retainage Other Total
Business-Type Activities:
Water 586,287$ 50,243$ -$ 636,530$
Golf 194,948 - - 194,948
Wastewater 247,122 33,555 - 280,677
Stormwater 135,352 10,989 - 146,341
Reconciliation of balances in fund
financial statements to government-
wide financial statements - - - -
Total business-type activities 1,163,709$ 94,787$ -$ 1,258,496$
15.Post-Employment Benefits other than Pension
Statement No. 45 of the Governmental Accounting Standards Board, Accounting and Financial Reporting by Employers
for Postemployment Benefits Other Than Pensions, establishes standards for reporting of post-employment benefits other
than pensions for financial statement for periods beginning after December 15, 2007.
Plan Description
As required by the Revised Code of Washington (RCW) Chapter 41.26, the City provides lifetime medical care for
members of the Law Enforcement Officers and Firefighters (LEOFF) retirement system hired before October 1, 1977
under a defined benefit healthcare plan administered by the City. The members necessary hospital, medical, and nursing
care expenses not payable by worker’s compensation, social security, insurance provided by another employer, other
pension plan, or any other similar source are covered. Most medical coverage for eligible retirees is provided by one of
the City’s employee medical insurance programs. Under the authorization of the LEOFF Disability Board, direct
payment is made for other retiree medical expenses not covered by standard medical plan benefit provisions. Finance
reporting for the LEOFF retiree healthcare plan is included in the City’s Comprehensive Annual Financial Report.
Funding Policy
Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by RCW. The City’s funding
policy is based upon pay-as-you-go financing requirements.
Annual OPEB Cost and Net OPEB Obligation
The City’s annual other postemployment benefit (OPEB) cost is calculated based upon the annual required contribution
(ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and
amortize any unfunded actuarial liabilities over a period of fifteen years as of June 30, 2014. The following table shows
the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in
the City’s net OPEB. The net OPEB obligation of $6,479,955 is included as a noncurrent liability on the Statement of
Net Position.
Fiscal Year Ending
12/31/17
Determination of Annual Required Contribution:
Annual Normal Cost 3,353,100$
Interest on Amortization Payment 192,870
Annual Required Contribution (ARC)3,545,970$
Determination of NET OPEB Obligation:
Annual Required Contribution 3,545,970$
Adjustment to ARC (240,803)
Annual OPEB Cost 3,305,167$
Contributions (1,646,965)
Change in Net OPEB Obligations 1,658,202$
Notes to Financial Statements
City of Bremerton / 61
Notes to Financial Statements
Fiscal Year Ending
12/31/17
Net OPEB Obligations - beginning of year 4,821,753$
Net OPEB Obligations - end of year 6,479,955$
*Unfunded Actuarial Accrued Liability (UAAL)
The City’s OPEB cost, the percentage OPEB cost contributed to the plan and the net OPEB Assets for 2017 and the
preceding three years, was as follows:
Fiscal year Annual OPEB Contribution as a Net OPEB
Ended Cost Percentage of OPEB Cost Obligation
12/31/2011 1,366,185$ 104.22%(414,716)$
12/31/2012 1,515,169$ 97.88%(382,547)$
12/31/2013 1,515,169$ 81.70%(105,296)$
12/31/2014 1,515,169$ 83.20%149,310$
12/31/2015 4,255,852$ 29.81%3,136,336$
12/31/2016 3,409,795$ 37.21%4,821,753$
12/31/2017 3,305,167$ 38.39%6,479,955$
Funded Status and Funding Progress
As of December 31, 2017, the City’s LEOFF I member count is below 100 members. The City utilized the alternative
actuary method prescribe by the Office of the State Actuary and permitted und GASB Statement No. 45. A single
retirement age of 55.3 was assumed for all active members for the purpose of determining the AAL and normal cost. The
retirement, disability, termination and mortality rates were assumed to follow LEOFF 1 rates used in the June 2014
actuarial valuation report issued by the Office of The State Actuary (OSA). Healthcare costs and trends were determined
by Milliman and used by OSA in the state-wide LEOFF 1 medical study performed in 2013. The results were based on
grouped data with four active groupings and four inactive groupings. The actuarial cost method to determine the AAL
was the Projected Unit Credit. The AAL and NOO are amortized on an open basis as a level dollar over 15 years. These
assumptions are individual and collectively reasonable for the purposes of this valuation. The actuarial accrued liability
(AAL) for benefits was $39,425,470.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions
of the employer are subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress presented as required supplementary information following
the notes to the financial statement, presents multiyear trend information that show whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial liabilities for benefits.
16. Segment Information
The City operates a utility system providing water, wastewater and stormwater management services to the citizens of
Bremerton and a portion of Kitsap County outside city boundaries. Operations are financed by user fees imposed on
customers of each utility. The City has issued revenue bonds to finance improvements to its sewer system. While the
operations of each utility are accounted for in separate funds, the repayment of the revenue bonds relies on the combined
revenues of all three utilities. In addition, the City operates a public golf course whose operations are funded entirely
through user fees. With the exception of the combined utility, there are no revenue bonds issued or other revenue-
backed debt outstanding for which full, detailed segment data is not provided in the proprietary fund financial
statements.
Notes to Financial Statements
City of Bremerton / 62
Notes to Financial Statements
The key financial data for the year ended December 31, 2017, for the combined utility operations are as follows:
Condensed Statement of Net Position
Assets and Deferred Outflows
Current assets 30,157,901$
Restricted assets 1,711,005
Capital assets 171,867,025
Other assets 198,516
Total assets 203,934,447
Deferred outflows of resources 577,724
Total assets and deferred outflows 204,512,171
Liabilities and Deferred Inflows
Current liabilities 5,141,352
Due to other funds 909,956
Payable from restricted assets 0
Long-term liabilities 32,493,696
Total liabilities 38,545,004
Deferred inflows of resources 636,702
Total liabilities and deferred inflows 39,181,706
Net Position
Restricted for debt service 2,098,215
Restricted for capital replacement 2,069,692
Unrestricted 17,915,227
Net investment in capital assets 143,247,331
Total net position 165,330,465$
Condensed Statement of Revenues, Expenses and Changes in Net Position
Total operating revenues 31,682,806$
Operating Expenditures:
Operations & maintenance 24,326,477
Depreciation/amortization/depletion 5,968,791
Total operating expenses 30,295,268
Operating income(loss)1,387,538
Non-Operating Revenues/Expenses
Interest revenue/expense (net)(656,187)
Other (net)(274,132)
Total non-operating revenues/expenses (930,319)
Condensed Statement of Revenues, Expenses and Changes in Net Position
Total operating revenues 31,682,806$
Operating Expenditures:
Operations & maintenance 24,326,477
Depreciation/amortization/depletion 5,968,791
Total operating expenses 30,295,268
Operating income(loss)1,387,538
Notes to Financial Statements
City of Bremerton / 63
Notes to Financial Statements
Condensed Statement of Revenues, Expenses and Changes in Net Position
Non-Operating Revenues/Expenses
Interest revenue/expense (net)(656,187)
Other (net)(274,132)
Total non-operating revenues/expenses (930,319)
Capital contributions 3,691,094
Transfers 0
Change in net position 4,148,313
Beginning net position 161,182,152
Prior period adjustment 0
Ending net position 165,330,465$
Condensed Statement of Cash Flows
Net cash provided By:
(a)Operating activities 7,211,580$
(b)Noncapital financing activities 70,297
(c)Capital and related financing activities (11,517,936)
(d)Investing activities (1,944,011)
Beginning cash and equivalents balance 17,486,028
Ending cash and equivalents balance 11,305,958$
17. Tax Abatements
The City established a Multi-Family tax exemption in 2008. The program allows developers to defer property taxes on
improvements to the property for either an eight or 12-year period. To get the 12-year exemption the development would
require 20% of the unit’s rents be at low to moderate income levels. As of December 31, 2017, the City of Bremerton
had one development receiving the eight-year exemption, 606 Apartments. The deferred taxes in 2017 are reported as
$91,441. The overall assessed value of the property in 2017 was $6,989,930
18.Prior Period Adjustments
The City recorded February receipts from derived taxes in 2017 that should have been recognized as revenue at the
Government Wide level in 2016. In 2017 the City recorded a prior period correction to revenue in the amount of
$986,907.
Notes to Financial Statements
City of Bremerton / 64
Notes to Financial Statements
Vendors Retainage Other Total
Business-Type Activities:
Water 586,287$ 50,243$ -$ 636,530$
Golf 194,948 - - 194,948
Wastewater 247,122 33,555 - 280,677
Stormwater 135,352 10,989 - 146,341
Reconciliation of balances in fund
financial statements to government-
wide financial statements - - - -
Total business-type activities 1,163,709$ 94,787$ -$ 1,258,496$
15.Post-Employment Benefits other than Pension
Statement No. 45 of the Governmental Accounting Standards Board, Accounting and Financial Reporting by Employers
for Postemployment Benefits Other Than Pensions, establishes standards for reporting of post-employment benefits other
than pensions for financial statement for periods beginning after December 15, 2007.
Plan Description
As required by the Revised Code of Washington (RCW) Chapter 41.26, the City provides lifetime medical care for
members of the Law Enforcement Officers and Firefighters (LEOFF) retirement system hired before October 1, 1977
under a defined benefit healthcare plan administered by the City. The members necessary hospital, medical, and nursing
care expenses not payable by worker’s compensation, social security, insurance provided by another employer, other
pension plan, or any other similar source are covered. Most medical coverage for eligible retirees is provided by one of
the City’s employee medical insurance programs. Under the authorization of the LEOFF Disability Board, direct
payment is made for other retiree medical expenses not covered by standard medical plan benefit provisions. Finance
reporting for the LEOFF retiree healthcare plan is included in the City’s Comprehensive Annual Financial Report.
Funding Policy
Funding for LEOFF retiree healthcare costs is provided entirely by the City as required by RCW. The City’s funding
policy is based upon pay-as-you-go financing requirements.
Annual OPEB Cost and Net OPEB Obligation
The City’s annual other postemployment benefit (OPEB) cost is calculated based upon the annual required contribution
(ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and
amortize any unfunded actuarial liabilities over a period of fifteen years as of June 30, 2014. The following table shows
the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in
the City’s net OPEB. The net OPEB obligation of $6,479,955 is included as a noncurrent liability on the Statement of
Net Position.
City of Bremerton / 65
Notes to Financial Statements
City of Bremerton / 65
Notes to Financial Statements
Fiscal Year Ending
12/31/17
Determination of Annual Required Contribution:
Annual Normal Cost 3,353,100$
Interest on Amortization Payment 192,870
Annual Required Contribution (ARC)3,545,970$
Determination of NET OPEB Obligation:
Annual Required Contribution 3,545,970$
Adjustment to ARC (240,803)
Annual OPEB Cost 3,305,167$
Contributions (1,646,965)
Change in Net OPEB Obligations 1,658,202$
Net OPEB Obligations - beginning of year 4,821,753$
Net OPEB Obligations - end of year 6,479,955$
*Unfunded Actuarial Accrued Liability (UAAL)
The City’s OPEB cost, the percentage OPEB cost contributed to the plan and the net OPEB Assets for 2017 and the
preceding three years, was as follows:
Fiscal year Annual OPEB Contribution as a Net OPEB
Ended Cost Percentage of OPEB Cost Obligation
12/31/2011 1,366,185$ 104.22%(414,716)$
12/31/2012 1,515,169$ 97.88%(382,547)$
12/31/2013 1,515,169$ 81.70%(105,296)$
12/31/2014 1,515,169$ 83.20%149,310$
12/31/2015 4,255,852$ 29.81%3,136,336$
12/31/2016 3,409,795$ 37.21%4,821,753$
12/31/2017 3,305,167$ 38.39%6,479,955$
Funded Status and Funding Progress
As of December 31, 2017, the City’s LEOFF I member count is below 100 members. The City utilized the alternative
actuary method prescribe by the Office of the State Actuary and permitted und GASB Statement No. 45. A single
retirement age of 55.3 was assumed for all active members for the purpose of determining the AAL and normal cost. The
retirement, disability, termination and mortality rates were assumed to follow LEOFF 1 rates used in the June 2014
actuarial valuation report issued by the Office of The State Actuary (OSA). Healthcare costs and trends were determined
by Milliman and used by OSA in the state-wide LEOFF 1 medical study performed in 2013. The results were based on
grouped data with four active groupings and four inactive groupings. The actuarial cost method to determine the AAL
was the Projected Unit Credit. The AAL and NOO are amortized on an open basis as a level dollar over 15 years. These
assumptions are individual and collectively reasonable for the purposes of this valuation. The actuarial accrued liability
(AAL) for benefits was $39,425,470.
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions
of the employer are subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress presented as required supplementary information following
the notes to the financial statement, presents multiyear trend information that show whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial liabilities for benefits.
City of Bremerton / 66
Notes to Financial Statements
City of Bremerton / 66
Notes to Financial Statements
16. Segment Information
The City operates a utility system providing water, wastewater and stormwater management services to the citizens of
Bremerton and a portion of Kitsap County outside city boundaries. Operations are financed by user fees imposed on
customers of each utility. The City has issued revenue bonds to finance improvements to its sewer system. While the
operations of each utility are accounted for in separate funds, the repayment of the revenue bonds relies on the combined
revenues of all three utilities. In addition, the City operates a public golf course whose operations are funded entirely
through user fees. With the exception of the combined utility, there are no revenue bonds issued or other revenue-
backed debt outstanding for which full, detailed segment data is not provided in the proprietary fund financial
statements.
The key financial data for the year ended December 31, 2017, for the combined utility operations are as follows:
Condensed Statement of Net Position
Assets and Deferred Outflows
Current assets 30,157,901$
Restricted assets 1,711,005
Capital assets 171,867,025
Other assets 198,516
Total assets 203,934,447
Deferred outflows of resources 577,724
Total assets and deferred outflows 204,512,171
Liabilities and Deferred Inflows
Current liabilities 5,141,352
Due to other funds 909,956
Payable from restricted assets 0
Long-term liabilities 32,493,696
Total liabilities 38,545,004
Deferred inflows of resources 636,702
Total liabilities and deferred inflows 39,181,706
Net Position
Restricted for debt service 2,098,215
Restricted for capital replacement 2,069,692
Unrestricted 17,915,227
Net investment in capital assets 143,247,331
Total net position 165,330,465$
Condensed Statement of Revenues, Expenses and Changes in Net Position
Total operating revenues 31,682,806$
Operating Expenditures:
Operations & maintenance 24,326,477
Depreciation/amortization/depletion 5,968,791
Total operating expenses 30,295,268
Operating income(loss)1,387,538
Non-Operating Revenues/Expenses
Interest revenue/expense (net)(656,187)
Other (net)(274,132)
Total non-operating revenues/expenses (930,319)
City of Bremerton / 67
Notes to Financial Statements
City of Bremerton / 67
Notes to Financial Statements
Condensed Statement of Revenues, Expenses and Changes in Net Position
Total operating revenues 31,682,806$
Operating Expenditures:
Operations & maintenance 24,326,477
Depreciation/amortization/depletion 5,968,791
Total operating expenses 30,295,268
Operating income(loss)1,387,538
Non-Operating Revenues/Expenses
Interest revenue/expense (net)(656,187)
Other (net)(274,132)
Total non-operating revenues/expenses (930,319)
Capital contributions 3,691,094
Transfers 0
Change in net position 4,148,313
Beginning net position 161,182,152
Prior period adjustment 0
Ending net position 165,330,465$
Condensed Statement of Cash Flows
Net cash provided By:
(a) Operating activities 7,211,580$
(b) Noncapital financing activities 70,297
(c) Capital and related financing activities (11,517,936)
(d) Investing activities (1,944,011)
Beginning cash and equivalents balance 17,486,028
Ending cash and equivalents balance 11,305,958$
17. Tax Abatements
The City established a Multi-Family tax exemption in 2008. The program allows developers to defer property taxes on
improvements to the property for either an eight or 12-year period. To get the 12-year exemption the development would
require 20% of the units rents be at low to moderate income levels. As of December 31, 2017, the City of Bremerton had
one development receiving the eight-year exemption, 606 Apartments. The deferred taxes in 2017 are reported as
$91,441. The overall assessed value of the property in 2017 was $6,989,930
18.Prior Period Adjustments
The City recorded February receipts from derived taxes in 2017 that should have been recognized as revenue at the
Government Wide level in 2016. In 2017 the City recorded a prior period correction to revenue in the amount of
$986,907.
City of Bremerton / 68
Notes to Financial Statements
City of Bremerton / 68
Notes to Financial Statements
City of Bremerton
Required Supplementary Information
LEOFF 1 Retiree Medical Benefits
Schedule of Funding Progress
Actuarial UAAL as a
Actuarial Accrued Unfunded Actuarial Percentage
Fiscal Year Value of Liability Unit Accrued Liabilities Funded Covered of Covered
Ended Assets Cost (UAAL)Ratio Payroll Payroll
12/31/2012 -$16,191,238$ 16,191,238$0.0%461,567$3500.00%
12/31/2013 -$21,632,822$ 21,632,822$0.0%214,934$10100.00%
12/31/2014 -$17,942,584$ 17,942,584$0.0%179,183$10000.00%
12/31/2015 -$47,180,003$ 47,180,003$0.0%185,375$25500.00%
12/31/2016 -$39,652,915$ 39,652,915$0.0%-$0.00%
12/31/2017 -$39,425,470$ 39,425,470$0.0%-$0.00%
City of Bremerton / 69City of Bremerton / 69
REQUIRED SUPPLEMENTARY INFORMATION2017 2016 2015Employer's proportion of the net pension liability (asset) 0.11309% 0.11877% 0.12367%Employer's proportionate share of the net pension liability 5,366,256$ 6,378,508$ 6,468,882$ Employer's covered employee payroll 13,566,127 13,389,026 13,311,432 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 39.56% 47.64% 48.60%Plan fiduciary net position as a percentage of the total pension liability 61.24% 57.03% 59.10%Notes to Schedule:* This schedule is to be built prospectively until it contains ten years of data.City of BremertonSchedule of Proportionate Share of the Net Pension LiabilityPERS 1As of June 30, 2017Last 10 Fiscal Years*City of Bremerton / 70City of Bremerton / 70
REQUIRED SUPPLEMENTARY INFORMATION2017 2016 2015Employer's proportion of the net pension liability (asset) 0.13112% 0.13515% 0.14288%Employer's proportionate share of the net pension liability 4,555,724$ 6,804,696$ 5,105,327$ Employer's covered employee payroll 12,854,513 12,623,875 12,565,311 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll 35.44% 53.90% 40.63%Plan fiduciary net position as a percentage of the total pension liability 90.97% 85.82% 89.20%Notes to Schedule:* This schedule is to be built prospectively until it contains ten years of data.City of BremertonSchedule of Proportionate Share of the Net Pension LiabilityPERS 2/3As of June 30, 2017Last 10 Fiscal Years*City of Bremerton / 71City of Bremerton / 71
REQUIRED SUPPLEMENTARY INFORMATION2017 2016 2015Employer's proportion of the net pension liability (asset) 0.05027% 0.04069% 0.04270%Employer's proportionate share of the net pension liability (asset) 9,849$ 17,294$ 7,794$ Employer's covered employee payroll177,976 131,920 126,609 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll5.53% 13.11% 6.16%Plan fiduciary net position as a percentage of the total pension liability96.26% 90.41% 95.08%Notes to Schedule:* This schedule is to be built prospectively until it contains ten years of data.City of BremertonSchedule of Proportionate Share of the Net Pension LiabilityPSERSAs of June 30, 2017Last 10 Fiscal Years*City of Bremerton / 72City of Bremerton / 72
REQUIRED SUPPLEMENTARY INFORMATION2017 20162015Employer's proportion of the net pension liability (asset) 0.17592% 0.17424% 0.17571%Employer's proportionate share of the net pension liability (asset) (2,669,093)$ (1,795,160)$ (2,117,718)$ Employer's covered employee payroll 99,976 126,465 122,729Employer's proportionate share of the net pension liability as a percentage of covered employee payroll (2669.74%) (1419.49%) (1725.52%)Plan fiduciary net position as a percentage of the total pension liability 135.96% 123.74% 127.36%Notes to Schedule:* This schedule is to be built prospectively until it contains ten years of data.City of BremertonSchedule of Proportionate Share of the Net Pension LiabilityLEOFF 1As of June 30, 2017Last 10 Fiscal Years*City of Bremerton / 73City of Bremerton / 73
REQUIRED SUPPLEMENTARY INFORMATION2017 2016 2015Employer's proportion of the net pension liability (asset) 0.36363% 0.37915% 0.39748%Employer's proportionate share of the net pension liability (5,045,965)$ (2,205,262)$ (4,085,289)$ State's proportionate share of the net pension liability (asset) associated with the employer(3,273,223)$ (1,437,670)$ (2,701,196)$ TOTAL(8,319,188)$ (3,642,932)$ (6,786,485)$ Employer's covered employee payroll 11,374,905 11,486,092 11,496,279 Employer's proportionate share of the net pension liability as a percentage of covered employee payroll (44.36%) (19.20%) (35.54%)Plan fiduciary net position as a percentage of the total pension liability 113.36% 106.04% 111.67%Notes to Schedule:* This schedule is to be built prospectively until it contains ten years of data.City of BremertonSchedule of Proportionate Share of the Net Pension LiabilityLEOFF 2As of June 30, 2017Last 10 Fiscal Years*City of Bremerton / 74City of Bremerton / 74
REQUIRED SUPPLEMENTARY INFORMATION2017 2016 2015Contractually required contributions 751,960$ 663,672$ 620,110$ Contributions in relation to the contractually required contributions 751,889$ 663,672$ 620,110$ Contribution deficiency (excess)71 0 0Employer's covered employee payroll 14,680,139 13,155,996 12,333,775Contributions as a percentage of covered employee payroll 5.12% 5.04% 5.03%Notes to Schedule:* This schedule is to be built prospectively until it contains ten years of data.City of BremertonSchedule of Employer ContributionsPERS 1As of Decmeber 31, 2017Last 10 Fiscal Years*City of Bremerton / 75City of Bremerton / 75
REQUIRED SUPPLEMENTARY INFORMATION2017 2016 2015Contractually required contributions 945,685$ 773,957$ 708,885$ Contributions in relation to the contractually required contributions 945,761$ 773,957$ 708,885$ Contribution deficiency (excess)-75 0 0Employer's covered employee payroll 13,965,767 12,423,072 12,713,675Contributions as a percentage of covered employee payroll 6.77% 6.23% 5.58%Notes to Schedule:* This schedule is to be built prospectively until it contains ten years of data.City of BremertonSchedule of Employer ContributionsPERS 2/3As of Decmeber 31, 2017Last 10 Fiscal Years*City of Bremerton / 76City of Bremerton / 76
REQUIRED SUPPLEMENTARY INFORMATION2017 2016 2015Contractually required contributions 12,572$ 10,081$ 8,916$ Contributions in relation to the contractually required contributions12,572$ 10,081$ 8,196$ Contribution deficiency (excess)000Employer's covered employee payroll189,011 152,968 126,758Contributions as a percentage of covered employee payroll6.65% 6.59% 6.47%Notes to Schedule:* This schedule is to be built prospectively until it contains ten years of data.City of BremertonSchedule of Employer ContributionsPSERSAs of Decmeber 31, 2017Last 10 Fiscal Years*City of Bremerton / 77City of Bremerton / 77
COMBINING FUND
STATEMENTS
City of Bremerton
Combining Balance Sheet
NonMajor Govermental Funds
December 31, 2017 Page 1 of 3
Street
Lodging
Tax
Parking
System
Community
Block Grant
Abatement
Revolving
Police Special
Projects BKAT
Gift &
Donation
ASSETS and DEFERRED OUTFLOWS
of RESOURCES
Cash and cash equivalents 578,816$ 226,973$ 206,241$ 159,825$ 118,780$ 176,367$ 249,362$ 30,510$
Investments 840,185 329,466 299,371 - 172,416 256,007 361,964 44,287
Receivables 268,642 81,068 252,888 - 8,114 - - -
Due from other funds 50,463 - - 41,910 - - - -
Due from other governments - - - 287,609 - - - -
Other assets - - - 552,941 - - - -
Total assets 1,738,106 637,507 758,500 1,042,285 299,310 432,374 611,326 74,797
Total assets and deferred outflows of
resources 1,738,106$ 637,507$ 758,500$ 1,042,285$ 299,310$ 432,374$ 611,326$ 74,797$
LIABILITIES and FUND BALANCES
Liabilities:
Accounts/contracts payable 113,052$ 19,917$ 47,965$ 285,208$ -$ 8,138$ 2,868$ 7,490$
Due to other funds 32,884 - 59,147 3 - - 194 -
Due to other governments - - - 495 - - - -
Employee wages payable 38,547 - 18 355 - - 11,405 40
Custodial Accounts - - - - - - - -
Unearned revenue - - 121,297 552,941 - - - -
Total liabilities 184,483 19,917 228,427 839,002 - 8,138 14,467 7,530
Deferred Inflows of Resources 68,348 43,061 - - - - - -
Fund balances:
Nonspendable -$ -$ -$ -$ -$ -$ -$ -$
Restricted 783,727 546,086 - 203,283 - 424,236 141,634 -
Committed - - - -- -455,225 67,267
Assigned 701,548 28,443 530,073 - 299,310 - - -
Unassigned - 0 - - - - - -
Total fund balances 1,485,275 574,529 530,073 203,283 299,310 424,236 596,859 67,267
Total liabilities and fund balances 1,738,106$ 637,507$ 758,500$ 1,042,285$ 299,310$ 432,374$ 611,326$ 74,797$
See accompanying notes to the finanical statements.
City of Bremerton / 78City of Bremerton / 78
City of Bremerton
Combining Balance Sheet
NonMajor Govermental Funds
December 31, 2017 Page 2 of 3
ASSETS and DEFERRED OUTFLOWS
of RESOURCES
Cash and cash equivalents
Investments
Receivables
Due from other funds
Due from other governments
Other assets
Total assets
Total assets and deferred outflows of
resources
LIABILITIES and FUND BALANCES
Liabilities:
Accounts/contracts payable
Due to other funds
Due to other governments
Employee wages payable
Custodial Accounts
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Fund balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities and fund balances
Special Revenue
Trial
Improvement
One Percent
for Art
Total Special
Revenue
2010
LTGO
2010
UTGO/
LTGO (B)
2012
Government
Center
LTGO
2015 Public
Safety Bond
Total Debt
Service
32,459$ 19,984$ 1,799,317$ 62,961$ 37,233$ 34,430$ 20,359$ 154,983$
47,116 29,008 2,379,820 91,391 54,045 49,977 29,553 224,966
- - 610,712 40,717 15,540 - 13,840 70,097
- - 92,373 - - - --
- - 287,609 - - - --
- - 552,941 - - - --
79,575 48,992 5,722,772 195,069 106,818 84,407 63,752 450,046
79,575$ 48,992$ 5,722,772$ 195,069$ 106,818$ 84,407$ 63,752$ 450,046$
7,100$ 10,282$ 502,020$ 300$ 600$ 300$ 300$ 1,500$
- - 92,228 - - - - -
- - 495 - - - - -
- - 50,365 - - - - -
- - -- - - - -
- - 674,238 -11,280 - 11,342 22,622
7,100 10,282 1,319,346 300 11,880 300 11,642 24,122
- - 111,409 - - - - -
-$ -$ -$-$-$-$ -$ -$
66,314 2,165,280 -91,930 - 52,110 144,040
- 38,710 561,202 --- --
6,161 - 1,565,535 194,769 3,008 84,107 - 281,884
- - 0 - - - - -
72,475 38,710 4,292,017 194,769 94,938 84,107 52,110 425,924
79,575$ 48,992$ 5,722,772$ 195,069$ 106,818$ 84,407$ 63,752$ 450,046$
Debt Service
See accompanying notes to the finanical statements.
City of Bremerton / 79City of Bremerton / 79
City of Bremerton
Combining Balance Sheet
NonMajor Govermental Funds
December 31, 2017 Page 3 of 3
ASSETS and DEFERRED OUTFLOWS
of RESOURCES
Cash and cash equivalents
Investments
Receivables
Due from other funds
Due from other governments
Other assets
Total assets
Total assets and deferred outflows of
resources
LIABILITIES and FUND BALANCES
Liabilities:
Accounts/contracts payable
Due to other funds
Due to other governments
Employee wages payable
Custodial Accounts
Unearned revenue
Total liabilities
Deferred Inflows of Resources
Fund balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities and fund balances
General Govt
Cap Impr
Parks
Construction
Residential
Street
Capital
Trans
Capital
Projects
Fire Public
Safety Lebo Blvd.
Washington
Avenue
Connector
Total
Capital
Projects
900,462$ 31,589$ 196,812$ (283,210)$ 2,365,941$ (178,040)$ (84,119)$ 2,949,435$ 4,903,735
1,307,073 45,853 285,685 - - - 1,638,611 4,243,397
138,772 - - 24,372 - - 155,920 319,064 999,873
-78,003 - 49,523 - - - 127,526 219,899
--- 1,010,643 - 448,342 - 1,458,985 1,746,594
--- - - -- -552,941
2,346,307 155,445 482,497 801,328 2,365,941 270,302 71,801 6,493,621 12,666,439
2,346,307$ 155,445$ 482,497$ 801,328$ 2,365,941$ 270,302$ 71,801$ 6,493,621$ 12,666,439
-$56,522$ -$ 275,127$ 27,928$ 133,850$ -$ 493,427$ 996,947
254,795 - - - - 27 - 254,822 347,050
- - - - - - - -495
-- - - - 1,036 - 1,036 51,401
-- - 15,000 - - - 15,000 15,000
-- - - - - - - 696,860
254,795 56,522 - 290,127 27,928 134,913 - 764,285 2,107,753
-- - - - - - - 111,409
-$-$ -$ -$ -$ -$ -$ -$ -
2,047,095 480,000 - 2,338,013 135,336 10,590 5,011,034 7,320,354
-- - 224,034 - - - 224,034 785,236
44,417 98,923 2,497 287,167 - 53 61,211 494,268 2,341,687
-- - - - -- - 0
2,091,512 98,923 482,497 511,201 2,338,013 135,389 71,801 5,729,336 10,447,277
2,346,307$ 155,445$ 482,497$ 801,328$ 2,365,941$ 270,302$ 71,801$ 6,493,621$ 12,666,439
Total
Nonmajor
Governmental
Funds
Capital Projects
See accompanying notes to the finanical statements.
City of Bremerton / 80City of Bremerton / 80
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
for the Year Ended December 31, 2017 1 of 3
Street
Lodging
Tax Parking
Community
Block Grant
Abatement
Revolving
Police
Special
Projects BKAT
Gift &
Donation
REVENUES
Taxes
Property -$ -$ -$ 8,114$ -$ -$ -$
Sales - 637,423 - - - - - -
Business
Other 1,200,385 - - - - - - -
Licenses and permits 25 - - - - - 297,771 -
Intergovernmental 873,621 - - 462,517 - - - -
Charges for services 143,813 - - 8,877 - - 100,430 139
Fines and forfeitures - - 397,096 - 53,950 26,785 - -
Miscellaneous 11,676 2,162 1,309,302 4,216 1,888 55,807 64,092 22,263
Total revenues 2,229,520$ 639,585$ 1,706,398$ 475,610$ 63,952$ 82,592$ 462,293$ 22,402$
EXPENDITURES
Current:
General government 45,093$ -$ -$ 125,363$ -$ -$ -$ -$
Public safety - - - -102,605 52,990 - 16,044
Transportation 2,664,034 - 895,452 - - - - -
Economic environment - 216,200 - 493,944 - - - -
Mental/physical health - - - 45,350 - - - -
Culture and recreation 23,628 150,000 - - - - 386,298 90
Debt service:
Principal - - 230,000 - - - - -
Interest and other debt issue costs - - 273,208 - - - - -
Capital outlay 79,432 - - - - - - -
Total expenditures 2,812,187$ 366,200$ 1,398,660$ 664,657$ 102,605$ 52,990$ 386,298$ 16,134$
Excess (deficiency) of revenues over
expenditures (582,667) 273,385 307,738 (189,047) (38,653) 29,602 75,995 6,268
OTHER FINANCING SOURCES (USES)
Capital asset donations & disposal 36,587$ - - - - - - -
Insurance recoveries 3,142 - - - - - - -
Transfers in 810,462 - - 41,910 - - - -
Transfers out - (155,000) (170,000) - - - - -
Total other financing sources and uses 850,191$ (155,000)$ (170,000)$ 41,910$ -$ -$ -$ -$
Net change in fund balances 267,524 118,385 137,738 (147,137) (38,653) 29,602 75,995 6,268
Fund balances-beginning 1,217,750 456,144 392,335 350,420 337,963 394,634 520,864 61,000
Prior period adjustments - - - - - - - -
Fund balances-ending 1,485,274$ 574,529$ 530,073$ 203,283$ 299,310$ 424,236$ 596,859$ 67,268$
City of Bremerton / 81City of Bremerton / 81
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
for the Year Ended December 31, 2017 2 of 3
REVENUES
Taxes
Property
Sales
Business
Other
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Transportation
Economic environment
Mental/physical health
Culture and recreation
Debt service:
Principal
Interest and other debt issue costs
Capital outlay
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Capital asset donations & disposal
Insurance recoveries
Transfers in
Transfers out
Total other financing sources and uses
Net change in fund balances
Fund balances-beginning
Prior period adjustments
Fund balances-ending
Special Revenue
Trial
Improvement
One Percent
for Art
Total Special
Revenue
2010
LTGO
2010
UTGO/
LTGO (B)
2012
Government
Center
LTGO
2015 Public
Safety Bond
Total Debt
Service
-$ -$ 8,114$ 1,968$ 813,821$ -$ 495,775$ 1,311,564$
- - 637,423 356,075 - - - 356,075
- -
- - 1,200,385 - - - - -
- - 297,796 - - - - -
22,278 - 1,358,416 106,421 31,136 - - 137,557
- - 253,259 - - - - -
- - 477,831 - - - - -
487 5,285 1,477,178 860 3,645 1,005 1,741 7,251
22,765$ 5,285$ 5,710,402$ 465,324$ 848,602$ 1,005$ 497,516$ 1,812,447$
28,638$ -$ 199,094$ -$ -$ -$ -$ -$
- - 171,639 - - - - -
- - 3,559,486 - - - - -
- - 710,144 - - - - -
- - 45,350 - - - - -
- 17,519 577,535 - - - - -
- - 230,000 225,000 685,000 200,000 375,000 1,485,000
- - 273,208 317,481 372,686 133,663 128,751 952,581
- - 79,432 - - - - -
28,638$ 17,519$ 5,845,888$ 542,481$ 1,057,686$ 333,663$ 503,751$ 1,933,830$
(5,873) (12,234) (135,486) (77,157) (209,084) (332,658) (6,235) (625,134)
- - 36,587$ - - - - -
- - 3,142 - - - - -
- - 852,372 90,000 170,000 327,000 - 587,000
- - (325,000) - - - -
-$ -$ 567,101$ 90,000$ 170,000$ 327,000$ -$ 587,000$
(5,873) (12,234) 431,615.00 12,843 (39,084) (5,658) (6,235) (38,134)
78,349 50,945 3,860,404 181,927 134,022 89,765 58,345 464,059
- - - - - -
72,476$ 38,711$ 4,292,019$ 194,770$ 94,938$ 84,107$ 52,110$ 425,925$
City of Bremerton / 82City of Bremerton / 82
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
for the Year Ended December 31, 2017 3 of 3
REVENUES
Taxes
Property
Sales
Business
Other
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Public safety
Transportation
Economic environment
Mental/physical health
Culture and recreation
Debt service:
Principal
Interest and other debt issue costs
Capital outlay
Total expenditures
Excess (deficiency) of revenues over
expenditures
OTHER FINANCING SOURCES (USES)
Capital asset donations & disposal
Insurance recoveries
Transfers in
Transfers out
Total other financing sources and uses
Net change in fund balances
Fund balances-beginning
Prior period adjustments
Fund balances-ending
General
Govt
Cap Impr
Parks
Construction
Residential
Streets Capital
Transportation
Capital
Fire Public
Safety Capital Lebo Blvd
Washington
Ave.
Connector
Total
Capital
Projects
-$ -$ -$ -$ -$ -$ -$ -$ 1,319,678$
- - - - - - - - 993,498
321,498 - - - 321,498 321,498
1,688,425 - - - - - - 1,688,425 2,888,810
- - - - - - - - 297,796
- 124,196 - 1,569,318 - 4,781,624 - 6,475,138 7,971,111
- -- -- -- -253,259
- -- -- -- -477,831
8,075 58,531 2,497 26,793 35,488 54 156,372 287,810 1,772,239
1,696,500$ 182,727$ 2,497$ 1,917,609$ 35,488$ 4,781,678$ 156,372$ 8,772,871$ 16,295,720$
-$ -$ -$ -$ -$ -$ -$ -$ 199,094$
- - - - 8,515 - - 8,515 180,154
- - - - - - - - 3,559,486
- - - - - - - - 710,144
- - - - - - - - 45,350
- 16,045 - - - - - 16,045 593,580
- - - - - - - - 1,715,000
- - - - - - - - 1,225,789
- 255,310 - 1,676,957 1,790,803 4,693,826 145,331 8,562,227 8,641,659
-$ 271,355$ -$ 1,676,957$ 1,799,318$ 4,693,826$ 145,331$ 8,586,787$ 16,870,256$
1,696,500 (88,628) 2,497 240,652 (1,763,830) 87,852 11,041 186,084 (574,536)
- - - - (2,000)$ - -(2,000)$ 34,587$
- - - - - - - - 3,142
- 78,003 480,000 - - - - 558,003 1,997,375
(1,076,795) - - - - - - (1,076,795) (1,401,795)
(1,076,795)$ 78,003$ 480,000$ -$ (2,000)$ -$ -$ (520,792)$ 633,309$
619,705 (10,625) 482,497 240,652 (1,765,830) 87,852 11,041 (334,708) 58,773
1,471,807 109,548 - 270,549 4,103,842 47,538 60,760 6,064,044 10,388,507
- - - - - -
2,091,512$ 98,923$ 482,497$ 511,201$ 2,338,012$ 135,390$ 71,801$ 5,729,336$ 10,447,280$
Total
Nonmajor
Governmental
Funds
City of Bremerton / 83City of Bremerton / 83
Street Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes 1,160,000$ 1,160,000$ 1,200,386$ 40,386$
Licenses and permits - - 25 25
Intergovernmental 844,020 844,020 873,621 29,601
Charges for services 88,300 88,300 143,814 55,514
Other revenue 912,645 912,645 861,868 (50,777)
Total revenues 3,004,965 3,004,965 3,079,714 74,749
EXPENDITURES
Personnel 1,312,390 1,312,390 1,121,289 191,101
Supplies, services & taxes 1,529,437 1,529,437 1,611,467 (82,030)
Capital expenditure 195,000 195,000 79,432 115,568
Transfers - -
Total expenditures 3,036,827 3,036,827 2,812,188 224,639
Excess (deficiency) of revenues over
expenditures (31,862) (31,862) 267,526 299,388
Fund balances-beginning 986,229 1,217,748 1,217,748 -
Fund balances-ending 954,367$ 1,185,886$ 1,485,274$ 299,388$
City of Bremerton / 84City of Bremerton / 84
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, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Other revenue 90,883$ 90,883$ 85,163$ (5,720)$
Total revenues 90,883 90,883 85,163 (5,720)
EXPENDITURES
Supplies, services & taxes - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures 90,883 90,883 85,163 (5,720)
Fund balances-beginning 939,695 939,373 939,373 -
Fund balances-ending 1,030,578$ 1,030,256$ 1,024,536$ (5,720)$
City of Bremerton / 85City of Bremerton / 85
Lodging Tax Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes 605,000$ 605,000$ 637,423$ 32,423$
Other revenue 2,000 2,000 2,161 161
Total revenues 607,000 607,000 639,584 32,584
EXPENDITURES
Supplies, services & taxes 374,200 374,200 366,200 8,000
Transfers 155,000 155,000 155,000 -
Total expenditures 529,200 529,200 521,200 8,000
Excess (deficiency) of revenues over
expenditures 77,800 77,800 118,384 40,584
Fund balances-beginning 500,611 456,145 456,145 -
Fund balances-ending 578,411$ 533,945$ 574,529$ 40,584$
City of Bremerton / 86City of Bremerton / 86
Parking System Revenue Special Revenue Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
for the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Fines and forfeitures 250,000$ 250,000$ 397,096$ 147,096$
Other revenue 1,353,900 1,353,900 1,309,301 (44,599)
Total revenues 1,603,900 1,603,900 1,706,397 102,497
EXPENDITURES
Supplies, services & taxes 934,165 955,530 895,452 60,078
Capital expenditure 25,000 25,000 - 25,000
Debt service 502,907 502,907 503,208 (301)
Transfers 170,000 170,000 170,000 -
Total expenditures 1,632,072 1,653,437 1,568,660 84,777
Excess (deficiency) of revenues over
expenditures (28,172) (49,537) 137,737 187,274
Fund balances-beginning 235,048 392,336 392,336 -
Fund balances-ending 206,876$ 342,799$ 530,073$ 187,274$
City of Bremerton / 87City of Bremerton / 87
Community Development Block Grant Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental 415,000$ 415,000$ 462,517$ 47,517$
Charges for services 51,000 51,000 8,877 (42,123)
Other revenue 64,150 64,150 46,126 (18,024)
Total revenues 530,150 530,150 517,520 (12,630)
EXPENDITURES
Personnel 132,600 132,600 119,381 13,219
Supplies, services & taxes 342,283 342,283 545,275 (202,992)
Transfers -
Total expenditures 474,883 474,883 664,656 (189,773)
Excess (deficiency) of revenues over
expenditures 55,267 55,267 (147,136) (202,403)
Fund balances-beginning 399,875 350,420 350,420 -
Fund balances-ending 455,142$ 405,687$ 203,284$ (202,403)$
City of Bremerton / 88City of Bremerton / 88
Abatement Revolving Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes -$ -$ 8,114$ 8,114$
Fines and forfeitures 25,000 25,000 53,950 28,950
Other revenue 2,000 2,000 1,888 (112)
Total revenues 27,000 27,000 63,952 36,952
EXPENDITURES
Supplies, services & taxes 153,500 153,500 102,605 50,895
Transfers -
Total expenditures 153,500 153,500 102,605 50,895
Excess (deficiency) of revenues over
expenditures (126,500) (126,500) (38,653) 87,847
Fund balances-beginning 268,107 337,963 337,963 -
Fund balances-ending 141,607$ 211,463$ 299,310$ 87,847$
City of Bremerton / 89City of Bremerton / 89
Police Special Projects Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Fines and forfeitures 15,000$ 15,000$ 26,785$ 11,785$
Other revenue 28,000 28,000 55,807 27,807
Total revenues 43,000 43,000 82,592 39,592
EXPENDITURES
Supplies, services & taxes 108,500 108,500 52,990 55,510
Capital expenditure 90,000 90,000 - 90,000
Total expenditures 198,500 198,500 52,990 145,510
Excess (deficiency) of revenues over
expenditures (155,500) (155,500) 29,602 185,102
Fund balances-beginning 349,209 394,634 394,634 -
Fund balances-ending 193,709$ 239,134$ 424,236$ 185,102$
City of Bremerton / 90City of Bremerton / 90
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, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Licenses and permits 293,200$ 293,200$ 297,772$ 4,572$
Charges for services 112,535 112,535 100,430 (12,105)
Other revenue 65,400 65,400 64,092 (1,308)
Total revenues 471,135 471,135 462,294 (8,841)
EXPENDITURES
Personnel 349,600 349,600 311,807 37,793
Supplies, services & taxes 89,472 89,472 74,492 14,980
Capital expenditure 70,000 70,000 70,000
Total expenditures 509,072 509,072 386,299 122,773
Excess (deficiency) of revenues over
expenditures (37,937) (37,937) 75,995 113,932
Fund balances-beginning 507,633 520,864 520,864 -
Fund balances-ending 469,696$ 482,927$ 596,859$ 113,932$
City of Bremerton / 91City of Bremerton / 91
Gift and Donation Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Charges for services -$ -$ 139$ 139$
Other revenue 2,000 30,340 22,263 (8,077)
Total revenues 2,000 30,340 22,402 (7,938)
EXPENDITURES
Supplies, services & taxes 3,200 30,040 16,134 13,906
Total expenditures 3,200 30,040 16,134 13,906
Excess (deficiency) of revenues over
expenditures (1,200) 300 6,268 5,968
Fund balances-beginning 55,210 60,999 60,999 -
Fund balances-ending 54,010$ 61,299$ 67,267$ 5,968$
City of Bremerton / 92City of Bremerton / 92
Trial Improvement Revenue Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental 20,000$ 20,000$ 22,277$ 2,277$
Other revenue 300 300 487 187
Total revenues 20,300 20,300 22,764 2,464
EXPENDITURES
Supplies, services & taxes 24,200 30,900 28,638 2,262
Capital expenditure - - -
Total expenditures 24,200 30,900 28,638 2,262
Excess (deficiency) of revenues over
expenditures (3,900) (10,600) (5,874) 4,726
Fund balances-beginning 63,571 78,350 78,350 -
Fund balances-ending 59,671$ 67,750$ 72,476$ 4,726$
City of Bremerton / 93City of Bremerton / 93
One Percent for Arts Special Revenue Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Charges for services 9,500$ 9,500$ -$ (9,500)$
Other revenue 300 300 5,285 4,985
Total revenues 9,800 9,800 5,285 (4,515)
EXPENDITURES
Supplies, services & taxes 18,000 18,000 17,519 481
Total expenditures 18,000 18,000 17,519 481
Excess (deficiency) of revenues over
expenditures (8,200) (8,200) (12,234) (4,034)
Fund balances-beginning 43,476 50,945 50,945 -
Fund balances-ending 35,276$ 42,745$ 38,711$ (4,034)$
City of Bremerton / 94City of Bremerton / 94
Conference Center 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, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Charges for services 1,493,892$ 1,147,771$ 1,192,755$ 44,984$
Other revenue 186,000 366,000 365,297 (703)
Total revenues 1,679,892 1,513,771 1,558,052 44,281
EXPENDITURES
Supplies, services & taxes 1,719,187 1,503,955 1,542,416 (38,461)
Debt service 32,778 32,778 30,128 2,650
Total expenditures 1,751,965 1,536,733 1,572,544 (35,811)
Excess (deficiency) of revenues over
expenditures (72,073) (22,962) (14,492) 8,470
Fund balances-beginning 87,444 26,734 26,734 -
Fund balances-ending 15,371$ 3,772$ 12,242$ 8,470$
City of Bremerton / 95City of Bremerton / 95
2010 LTGO Debt Service Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes 357,280$ 357,280$ 358,043$ 763$
Intergovernmental 106,325 106,325 106,421 96
Other revenue 91,225 91,225 90,859 (366)
Total revenues 554,830 554,830 555,323 493
EXPENDITURES
Debt service 542,607 542,607 542,481 126
Total expenditures 542,607 542,607 542,481 126
Excess (deficiency) of revenues over
expenditures 12,223 12,223 12,842 619
Fund balances-beginning 182,717 181,927 181,927 -
Fund balances-ending 194,940$ 194,150$ 194,769$ 619$
City of Bremerton / 96City of Bremerton / 96
2010 UTGO Ref/LTGO (B) Debt Service Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes 815,000$ 815,000$ 813,822$ (1,178)$
Intergovernmental 31,086 31,086 31,135 49
Other revenue 172,525 172,525 173,645 1,120
Total revenues 1,018,611 1,018,611 1,018,602 (9)
EXPENDITURES
Debt service 1,057,937 1,057,937 1,057,686 251
Total expenditures 1,057,937 1,057,937 1,057,686 251
Excess (deficiency) of revenues over
expenditures (39,326) (39,326) (39,084) 242
Fund balances-beginning 137,785 134,022 134,022 -
Fund balances-ending 98,459$ 94,696$ 94,938$ 242$
City of Bremerton / 97City of Bremerton / 97
Government Center LTGO Debt Service Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Other revenue 328,025$ 328,025$ 328,005$ (20)$
Total revenues 328,025 328,025 328,005 (20)
EXPENDITURES
Debt service 333,788 333,788 33,663 300,125
Total expenditures 333,788 333,788 33,663 300,125
Excess (deficiency) of revenues over
expenditures (5,763) (5,763) 294,342 300,105
Fund balances-beginning 89,870 89,765 89,765 -
Fund balances-ending 84,107$ 84,002$ 384,107$ 300,105$
City of Bremerton / 98City of Bremerton / 98
2015 Public Safety Bond Debt Services Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes 500,000$ 500,000$ 495,775$ (4,225)$
Other revenue 450 450 1,740 1,290
Total revenues 500,450 500,450 497,515 (2,935)
EXPENDITURES
Debt service 503,425 503,425 503,751 (326)
Total expenditures 503,425 503,425 503,751 (326)
Excess (deficiency) of revenues over
expenditures (2,975) (2,975) (6,236) (3,261)
Fund balances-beginning 44,581 58,346 58,346 -
Fund balances-ending 41,606$ 55,371$ 52,110$ (3,261)$
City of Bremerton / 99City of Bremerton / 99
General Government Capital Projects Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes 1,450,000$ 1,450,000$ 1,688,425$ 238,425$
Other revenue 5,560 5,560 8,076 2,516
Total revenues 1,455,560 1,455,560 1,696,501 240,941
EXPENDITURES
Capital expenditure - -
Transfers 952,000 1,336,928 1,076,795 260,133
Total expenditures 952,000 1,336,928 1,076,795 260,133
Excess (deficiency) of revenues over
expenditures 503,560 118,632 619,706 501,074
Fund balances-beginning 1,398,772 1,471,806 1,471,806 -
Fund balances-ending 1,902,332$ 1,590,438$ 2,091,512$ 501,074$
City of Bremerton / 100City of Bremerton / 100
Park Facilities Capital Projects Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental 107,500$ 124,197$ 124,196$ (1)$
Other revenue 500 180,666 136,534 (44,132)
Total revenues 108,000 304,863 260,730 (44,133)
EXPENDITURES
Supplies, services & taxes 7,500 32,666 16,045 16,621
Capital expenditure 100,000 285,692 255,310 30,382
Total expenditures 107,500 318,358 271,355 47,003
Excess (deficiency) of revenues over
expenditures 500 (13,495) (10,625) 2,870
Fund balances-beginning 110,164 109,548 109,548 -
Fund balances-ending 110,664$ 96,053$ 98,923$ 2,870$
City of Bremerton / 101City of Bremerton / 101
Residential Street Capital Fund
Other Government Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2016
Final
Budget
2016
Actual
2016
Variance with
Final Budget
Positive
(Negative)
REVENUES
Other revenue 480,000$ 480,000$ 482,497$ 2,497$
Total revenues 480,000 480,000 482,497 2,497
EXPENDITURES
Capital expenditure - - - -
Transfers - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures 480,000 480,000 482,497 2,497
Fund balances-beginning - - - -
Prior period adjustments - - - -
Fund balances-ending 480,000$ 480,000$ 482,497$ 2,497$
City of Bremerton / 102City of Bremerton / 102
Transportation Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Taxes 272,630$ 272,630$ 321,498$ 48,868$
Licenses and permits - - - -
Intergovernmental 2,133,398 4,109,381 1,569,318 (2,540,063)
Other revenue - - 26,793 26,793
Total revenues 2,406,028 4,382,011 1,917,609 (2,464,402)
EXPENDITURES
Supplies, services & taxes -
Capital expenditure 2,147,498 4,260,457 1,676,957 2,583,500
Total expenditures 2,147,498 4,260,457 1,676,957 2,583,500
Excess (deficiency) of revenues over
expenditures 258,530 121,554 240,652 119,098
Fund balances-beginning 318,615 270,549 270,549 -
Fund balances-ending 577,145$ 392,103$ 511,201$ 119,098$
City of Bremerton / 103City of Bremerton / 103
Fire Public Safety Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Other revenue 13,000$ 13,000$ 33,488$ 20,488$
Total revenues 13,000 13,000 33,488 20,488
EXPENDITURES
Supplies, services & taxes - - 8,515 (8,515)
Capital expenditure 3,830,000 3,830,000 1,790,802 2,039,198
3,830,000 3,830,000 1,799,317 2,030,683
Excess (deficiency) of revenues over
expenditures (3,817,000) (3,817,000) (1,765,829) (2,010,195)
Fund balances-beginning 4,020,142 4,103,842 4,103,842 -
Fund balances-ending 203,142$ 286,842$ 2,338,013$ (2,010,195)$
City of Bremerton / 104City of Bremerton / 104
Lebo Boulevard 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, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental 93,500$ 5,351,128$ 4,781,624$ (569,504)$
Other revenue 100,500 54 (100,446)
Total revenues 93,500 5,451,628 4,781,678 (669,950)
EXPENDITURES
Capital expenditure 80,000 5,499,165 4,693,826 805,339
80,000 5,499,165 4,693,826 805,339
Excess (deficiency) of revenues over
expenditures 13,500 (47,537) 87,852 (1,475,289)
Fund balances-beginning 58,900 47,537 47,537 -
Fund balances-ending 72,400$ -$ 135,389$ (1,475,289)$
City of Bremerton / 105City of Bremerton / 105
Washington Avenue Connector Capital Projects Fund
Other Governmental Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended December 31, 2017
Original
Budget
2017
Final
Budget
2017
Actual
2017
Variance with
Final Budget
Positive
(Negative)
REVENUES
Intergovernmental -$ 90,640$ -$ (90,640)$
Other revenue - 214,230 156,372 (57,858)
Total revenues - 304,870 156,372 (148,498)
EXPENDITURES
Supplies, services & taxes -
Capital expenditure - 300,946 145,331 155,615
Total expenditures - 300,946 145,331 155,615
Excess (deficiency) of revenues over
expenditures - 3,924 11,041 7,117
Fund balances-beginning - 60,760 60,760 -
Fund balances-ending -$ 64,684$ 71,801$ 7,117$
City of Bremerton / 106City of Bremerton / 106
Combining Statement of Net Position
Internal Service Funds
December 31, 2017
Governmental Activities
Internal Service Funds
Risk
Management
Self Insurance
Health &
Welfare
Employment
Security
Accrued
Leave
Liability
Equipment
Rental
Operations
Equipment
Reserve
Information
Technology Total
ASSETS AND DEFERRED OUTFLOWS
Current assets:
Cash and cash equivalents 873,588$ 587$ 225,859$ 28,724$ 75,482$ 1,579,478$ 130,127$ 2,913,845$
Restricted cash 100,000 - -- - - 100,000
Investments 1,413,221 327,847 41,695 109,567 2,292,705 188,887 4,373,922
External receivables --- - -
Interest receivables 3,790 879 112 294 12,148 507 17,730
Due from other funds 13,002 550 9,386 147,780 649,630 1,678 822,026
Inventories -- -92,422 - - 92,422
Prepayments 252,885 - - - - 252,885
Total current assets 2,656,486 587 555,135 79,917 425,545 4,533,961 321,199 8,572,830
Noncurrent assets:
Capital assets net of depreciation -- -- 4,885,810 60,726 4,946,536
Total noncurrent assets --- -- 4,885,810 60,726 4,946,536
Total assets 2,656,486 587 555,135 79,917 425,545 9,419,771 381,925 13,519,366
Deferred outflows of resources - - - - 22,317 - 29,377 51,694
Total assets and deferred outflows 2,656,486$ 587$ 555,135$ 79,917$ 447,862$ 9,419,771$ 411,302$ 13,571,060$
LIABILITIES AND DEFERRED INFLOWS
Current liabilities:
Accounts/contract payable 32,046 1,431 - -76,959 12,812 123,248
Claims and Judgements Payable 354,514 -- -- - - 354,514
Due to other funds --- -76,100 1,011 211 77,322
Employee wages payable --- 77,850 26,821 - 36,949 141,620
Other accrued liabilities --- -24 - -24
Current portion of long-term debt --- -- - - -
Custodial accounts --- -- - - -
Total current liabilities 386,560 1,431 - 77,850 179,904 1,011 49,972 696,728
Noncurrent liabilities:
Claims and judgments payable 1,418,058 -- -- - - 1,418,058
Net pension liability --- -103,377 - 136,080 239,457
Compensated absences --- -17,527 - 26,477 44,004
Total noncurrent liabilities 1,418,058 -- -120,904 - 162,557 1,701,519
Total liabilities 1,804,618 1,431 - 77,850 300,808 1,011 212,529 2,398,247
Deferred inflows of resources 32,595 - 42,906 75,501
Total liabilities and deferred inflows 1,804,618$ 1,431$ -$ 77,850$ 333,403$ 1,011$ 255,435$ 2,473,748$
NET POSITION
Net investment in capital assets --- -- 4,885,810 60,726 4,946,536
Restricted for Worker's Compensation 100,000 -- -- - - 100,000
Unrestricted 751,868 (844)555,135 2,067 114,459 4,532,950 95,141 6,050,776
Total net position 851,868$ (844)$ 555,135$ 2,067$ 114,459$ 9,418,760$ 155,867$ 11,097,312$
See accompanying notes to the financial statements.
City of Bremerton / 107City of Bremerton / 107
Combining Statement of Revenues, Expenses and Changes in Fund Net Position
Internal Service Funds
for the Year Ended December 31, 2017
Risk
Management
Self
Insurance
Employment
Security
Accrued
Leave
Liability
Equipment
Rental
Operations
Equipment
Rental
Reserve
Information
Technology Total
OPERATING REVENUES
Charges for services 2,029,591$ -$ 13,486$ 229,077$ 1,643,433$ -$ 1,206,612$ 5,122,199$
Interest & dividend income - - - - - - -
Other operating revenue 1,413 - - - - - 1,413
Total operating revenues 2,031,004 -13,486 229,077 1,643,433 - 1,206,612 5,123,612
OPERATING EXPENSES
Operations and maintenance 99,877 -44,396 490,782 1,779,751 35,174 1,114,824 3,564,804
General administration 277,200 43,601 - - - 320,801
Depreciation and amortization - - - 677,182 - 677,182
Risk transfer payments 682,111 - - - - 682,111
Payments to claimants & beneficiaries 1,237,976 484,554 - - - 1,722,530
Other operating expenses 7,308 - - - - 7,308
Total operating expenses 2,304,472 528,155 44,396 490,782 1,779,751 712,356 1,114,824 6,974,736
Operating income (loss)(273,468) (528,155) (30,910) (261,705) (136,318) (712,356) 91,788 (1,851,124)
NONOPERATING REVENUES (EXPENSES)
Interest and investment revenue 12,538 -3,373 555 1,012 27,233 1,413 46,124
Gain (loss) on capital asset disposal - - - (17,507) - (17,507)
Other nonoperating revenue/expense -1,259 1,578 - 651 3,488
Total nonoperating revenues (expenses)12,538 1,259 3,373 555 2,590 9,726 2,064 32,105
Income (loss) before contributions and transfers (260,930) (526,896) (27,537) (261,150) (133,728) (702,630) 93,852 (1,819,019)
Capital contributions - - - - - 1,133,478 - 1,133,478
Transfers to other funds - - - - - -- -
Transfers from other funds - - - - - -- -
Change in net position (260,930) (526,896) (27,537) (261,150) (133,728) 430,848 93,852 (685,541)
Total net position - beginning 1,112,798 526,052 582,672 263,217 248,187 8,987,796 62,015 11,782,737
Prior period adjustments - - - - - 116 - 116
Total net position - ending 851,868$ (844)$ 555,135$ 2,067$ 114,459$ 9,418,760$ 155,867$ 11,097,312$
Governmental Activities
Internal Service Funds
See accompanying notes to the financial statements.
City of Bremerton / 108City of Bremerton / 108
Combining Statement of Cash Flows
Internal Service Funds
for the Year Ended December 31, 2017
Page 1 of 2
Risk
Management
Self
Insurance
Employment
Security
Accrued
Leave
Liability
Equipment
Rental
Operations
Equipment
Rental
Reserve
Information
Technology Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers -$ -$ -$ -$ -$ -$ -$ -$
Cash receipts from interfund services 2,029,866 - 14,565 227,312 1,498,851 - 1,205,282 4,975,876
Other receipts and payments 1,413 - - - 1,578 - - 2,991
Cash payments to suppliers (81,210) (922,356) (44,396) - (1,036,077) - (504,827) (2,588,866)
Cash payments to employees - - - (453,507) (437,794) - (570,269) (1,461,570)
Cash payments for interfund services (277,200) - - - (212,055) (34,163) (60,255) (583,673)
Purchase of insurance (473,982) - - - - - - (473,982)
Payment for insurance claims (1,164,152) - - - - - - (1,164,152)
Net cash provided (used) by operating activities 34,735 (922,356) (29,831) (226,195) (185,497) (34,163) 69,931 (1,293,376)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Grant proceeds - - - - - - - -
Transfer ins - - - - - - - -
Transfer outs - - - - - - - -
Other receipts and payments - 1,259 - - - - 651 1,910
Net cash provided (used) by noncapital financing activities - 1,259 - - - - 651 1,910
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Bond proceeds - - - - - - - -
Loan proceeds - - - - - - - -
Capital contributions - - - - - 1,133,478 - 1,133,478
Collections on notes receivable - - - - - - - -
Sale or involuntary conversion of capital assets - - - - - 60,775 - 60,775
Transfer in for asset construction - - - - - - - -
Acquisition and construction of capital assets - - - - - (1,416,342) - (1,416,342)
Principal paid bonds - - - - - - - -
Principal paid on other debt - - - - - - - -
Bond issuance costs - - - - - - - -
Interest paid on bonds and other debt - - - - - - - -
Net cash provided (used) by capital and related financing
activities - - - - - (222,089) - (222,089)
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from repayment of loans - - - - - - - -
Interest on loans and investments 11,951 - 3,288 848 1,224 26,699 1,245 45,255
Net change in investments (177,094) - (21,341) 114,538 85,521 (126,038) (58,315) (182,729)
Net cash provided (used) by investing activities (165,143) - (18,053) 115,386 86,745 (99,339) (57,070) (137,474)
Net increase (decrease) in cash and cash equivalents (130,408) (921,097) (47,884) (110,809) (98,752) (355,591) 13,512 (1,651,029)
Cash and equivalents - beginning 1,103,996 921,684 273,743 139,533 174,234 1,935,069 116,615 4,664,874
Cash and equivalents - ending 973,588$ 587$ 225,859$ 28,724$ 75,482$ 1,579,478$ 130,127$ 3,013,845$
Cash at the end of the year consists of:
Operating fund cash 873,588 587 225,859 28,724 75,482 1,579,478 130,127 2,913,845
Restricted cash 100,000 - - - - - - 100,000
Total cash at end of year 973,588$ 587$ 225,859$ 28,724$ 75,482$ 1,579,478$ 130,127$ 3,013,845$
See accompanying notes to the financial statements.
City of Bremerton / 109City of Bremerton / 109
Combining Statement of Cash Flows
Internal Service Funds
for the Year Ended December 31, 2017
Page 2 of 2
Risk
Management
Self
Insurance
Employment
Security
Accrued
Leave
Liability
Equipment
Rental
Operations
Equipment
Rental
Reserve
Information
Technology Total
Reconciliation of operating income to net cash provided by
operating activities:
Operating income (loss)(273,468) (528,155) (30,910) (261,705) (136,318) (712,356) 91,788 (1,851,124)
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation - - - - - 677,182 - 677,182
Nonoperating revenue in cash flow from operating
activities - - - - 1,578 - - 1,578
Contra pension expense - - - - (11,291) - (26,453) (37,744)
Prior year correction - - - - - - - -
Decrease (increase) in receivables - - - - - - - -
Decrease (increase) in due from other funds/govt 275 - 1,079 (1,765) (144,583) - (1,330) (146,324)
Decrease (increase) in prepaid expenses 208,129 - - - - - - 208,129
Decrease (increase) in inventory - - - - 2,961 - - 2,961
Increase (decrease) in accounts payable 25,975 (394,201) - 37,275 23,292 - 5,371 (302,288)
Increase (decrease) in due to other funds/govt - - - - 76,100 1,011 211 77,322
Increase (decrease) in employee wages payable - - - - 562 - (183) 379
Increase (decrease) in employee leaves payable - - - - 2,317 - 527 2,844
Increase (decrease) in other payables 73,824 - - - (115) - - 73,709
Increase (decrease) in deferred revenues - - - - - - - -
Net cash provided by operating activities 34,735$ (922,356)$ (29,831)$ (226,195)$ (185,497)$ (34,163)$ 69,931$ (1,293,376)$
Noncash investing, capital and financial activities
Developers contributed infrastructure -$ -$ -$ -$ -$ -$ -$ -$
City of Bremerton / 110City of Bremerton / 110
Combining Statement of Fiduciary Net Position
Agency Funds
December 31, 2017
Salary
Clearing
Administrative
Trust Total
Assets
Cash and cash equivalents 292,474$ 194,360$ 486,834$
Total assets 292,474$ 194,360$ 486,834$
Deferred outflows of resources -$ -$ -$
Liabilities
Accounts/contracts payable - 30,600 30,600
Other current liabilities 292,474 163,760 456,234
Total liabilities 292,474$ 194,360$ 486,834$
Deferred inflows of resources -$ -$ -$
See accompanying notes to the financial statements.
City of Bremerton / 111City of Bremerton / 111
STATISTICAL SECTION
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Table 1
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets 72,451,892$ 72,087,573$ 66,905,386$ 71,532,476$ 78,295,484$ 80,093,194$ 83,690,399$ 82,209,827$ 82,392,861$ 92,668,578$
Restricted 2,682,534 3,111,288 8,275,949 6,008,032 4,200,925 4,104,980 3,767,053 8,629,268 7,876,417 5,168,496
Unrestricted 10,777,450 9,159,249 9,434,193 5,948,429 8,795,698 9,704,988 9,237,898 3,997,964 7,725,636 10,461,715
Total government activities net position 85,911,876$ 84,358,110$ 84,615,528$ 83,488,937$ 91,292,107$ 93,903,162$ 96,695,350$ 94,837,059$ 97,994,914$ 108,298,789$
Business-type activities
Net investment in capital assets 103,397,203$ 122,329,665$ 128,158,641$ 128,930,881$ 139,290,172$ 145,318,353$ 147,992,658$ 147,071,444$ 151,010,043$ 151,096,269$
Restricted 3,988,736 1,174,604 1,305,903 1,527,135 1,616,969 1,778,954 7,648,222 2,201,230 9,750,551 4,415,105
Unrestricted 21,514,830 21,386,589 23,973,489 26,398,932 24,624,122 21,386,988 14,110,023 19,858,485 12,406,380 22,542,260
Total business-type activities net position 128,900,769$ 144,890,858$ 153,438,033$ 156,856,948$ 165,531,263$ 168,484,295$ 169,750,903$ 169,131,159$ 173,166,974$ 178,053,634$
Primary government
Net investment in capital assets 175,849,095$ 194,417,238$ 195,064,027$ 200,463,357$ 217,789,699$ 225,411,547$ 231,683,057$ 229,281,271$ 233,402,904$ 243,764,847$
Restricted 6,671,270 4,285,892 9,581,852 7,535,167 5,817,894 5,883,934 11,415,275 10,830,498 17,626,968 9,583,601
Unrestricted 32,292,280 30,545,838 33,407,682 32,347,361 33,215,777 31,091,976 23,347,921 23,856,449 20,132,016 33,003,975
Total primary government net position 214,812,645$ 229,248,968$ 238,053,561$ 240,345,885$ 256,823,370$ 262,387,457$ 266,446,253$ 263,968,218$ 271,161,888$ 286,352,423$
December 31,
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total Net Position
Governmental Business-Type
City of Bremerton / 112City of Bremerton / 112
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Table 2
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Program Revenues
Governmental activities:
Program revenues
Charges for services 8,911,480$ 9,065,757$ 7,974,533$ 8,134,426$ 8,147,866$ 7,554,419$ 7,375,242$ 8,149,740$ 8,567,603$ 9,658,198$
Operating grants and contributions 2,321,404 2,226,968 2,685,281 1,862,766 677,864 756,478 686,422 821,207 564,000 546,661
Capital grants and contributions 4,638,620 3,922,004 3,748,282 1,753,775 6,847,248 3,752,058 3,072,619 3,342,402 1,819,614 8,861,763
General revenues
Property taxes 7,799,723 8,490,418 8,553,934 8,546,532 8,578,750 8,511,679 8,688,122 8,971,576 9,618,496 9,746,766
Sales taxes 7,790,117 6,541,673 6,538,977 7,050,928 7,295,954 7,678,855 8,129,965 8,662,583 8,950,661 9,626,108
Business taxes 3,454,258 3,706,834 3,406,535 3,175,405 3,256,913 2,665,107 2,733,787 2,878,276 4,018,179 3,788,009
Utility taxes 5,087,768 4,753,803 4,531,307 4,512,670 4,407,473 4,415,712 4,332,386 9,695,992 9,773,769 10,337,783
Other taxes 2,572,169 2,461,170 2,391,050 2,384,628 2,679,142 3,147,164 4,045,311 4,045,245 4,209,946 3,969,957
Other general revenues 1,142,115 217,758 1,428,517 657,845 488,144 (720,663) 692,314 484,086 192,569 454,653
Total governmental program revenues 43,717,654 41,386,385 41,258,416 38,078,975 42,379,354 37,760,809 39,756,168 47,051,107 47,714,837 56,989,898
Business-type activities:
Charges for services:26,764,076 27,619,991 25,981,745 26,471,213 26,807,859 29,197,326 31,020,945 34,561,549 34,191,517 35,986,319
Operating grants and contributions 235,414 34,341 65,812 258,531 3,000 392,179 - 11,005 24,951 -
Capital grants and contributions 8,449,263 3,882,290 7,417,318 2,580,408 9,253,974 3,877,546 1,386,750 2,132,266 1,975,830 3,691,094
General revenues
Sales taxes 21,857 14,678 - 16,735 16,201 30,041 28,022 47,570 75,552 87,043
Business taxes 229 - 6,486 395 1,120 4,598 3,915 14,020 17,948 8,316
Other general revenues 867,602 556,994 584,246 613,062 683,660 474,662 531,817 644,409 153,087 (108,993)
Total business-type activities program revenues 36,338,441 32,108,294 34,055,607 29,940,344 36,765,814 33,976,352 32,971,449 37,410,819 36,438,885 39,663,779
Total primary government program revenues 80,056,095$ 73,494,679$ 75,314,023$ 68,019,319$ 79,145,168$ 71,737,161$ 72,727,617$ 84,461,926$ 84,153,722$ 96,653,677$
Expenses
Governmental activities:
General government 3,838,442$ 4,801,924$ 4,001,383$ 3,250,587$ 4,585,130$ 2,335,832$ 3,353,284$ 3,898,120$ 4,205,961$ 4,368,302$
Public safety 21,823,943 22,951,485 23,922,957 24,187,445 23,718,909 23,177,212 23,337,415 24,347,998 25,840,494 26,645,815
Utilities and environment 374,985 223,469 226,975 219,431 219,631 219,560 220,176 - - -
Transportation 8,936,077 9,045,766 4,214,922 4,012,477 4,235,164 4,206,821 4,459,164 5,801,997 5,515,358 6,014,666
Economic environment 2,601,899 3,148,575 2,031,753 3,310,097 2,231,951 1,865,434 1,813,732 1,889,697 1,905,763 2,142,745
Cultural and recreation 6,429,966 6,931,036 5,944,853 6,510,247 5,975,233 6,061,443 5,991,865 6,127,784 5,967,564 6,210,732
Interest on long-term debt 1,378,912 1,181,513 961,926 976,987 1,511,968 1,172,255 1,221,700 1,214,965 1,097,787 1,211,659
Total governmental activities expenses 45,384,224 48,283,768 41,304,769 42,467,271 42,477,986 39,038,557 40,397,336 43,280,561 44,532,927 46,593,919
Business-type activities:
Water 8,247,875 8,829,441 9,242,707 8,298,916 8,868,640 8,923,134 9,276,527 10,222,657 13,163,870 13,690,176
Wastewater 8,589,358 8,917,620 8,927,299 9,009,876 9,822,019 9,943,879 9,945,606 10,128,629 12,725,757 13,653,478
Golf course 3,498,529 3,254,936 3,198,390 2,256,772 2,135,886 2,271,036 4,008,939 3,827,264 3,972,630 3,417,408
Other proprietary funds 1,328,735 1,212,461 1,478,026 1,603,135 1,831,098 2,281,994 2,151,899 1,823,388 2,564,868 4,016,057
Total business-type activities expenses 21,664,497 22,214,458 22,846,422 21,168,699 22,657,643 23,420,043 25,382,971 26,001,938 32,427,125 34,777,119
Total primary government expenses 67,048,721$ 70,498,226$ 64,151,191$ 63,635,970$ 65,135,629$ 62,458,600$ 65,780,307$ 69,282,499$ 76,960,052$ 81,371,038$
December 31,
City of Bremerton / 113City of Bremerton / 113
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Table 2
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
December 31,
Change in Net Position
Governmental activities:
Excess of revenues over expenses (1,666,570)$ (6,897,383)$ (46,353)$ (4,388,296)$ (98,632)$ (1,277,748)$ (641,168)$ 3,770,546$ 3,181,910$ 10,395,979$
Transfers 1,944,641 1,973,245 4,175,924 3,610,764 3,737,965 4,462,373 5,492,002 6,416,953 (24,055) -
Governmental activities change in net position 278,071 (4,924,138) 4,129,571 (777,532) 3,639,333 3,184,625 4,850,834 10,187,499 3,157,855 10,395,979
Business-type activities:
Excess of revenues over expenses 14,673,944 9,893,836 11,209,185 8,771,645 14,108,171 10,556,309 7,588,478 11,408,881 4,011,760 4,886,660
Transfers (1,944,641) (1,973,245) (4,175,924) (3,610,764) (3,737,965) (4,462,373) (5,492,002) (6,416,953) 24,055 -
Business-type activities change in net position 12,729,303 7,920,591 7,033,261 5,160,881 10,370,206 6,093,936 2,096,476 4,991,928 4,035,815 4,886,660
Governmental Activities Net Position:
Net position - beginning 80,171,606 88,645,471 85,911,876 84,358,110 84,615,528 83,488,937 91,292,107 93,903,162 94,837,059 97,994,914
Prior period adjustment/special items 1,708,823 (140,726) (5,811,306) (2,144,491) (465,545) - (244,420) (100,372) - 986,907
Net position - ending 82,158,500 83,580,607 84,230,141 81,436,087 87,789,316 86,673,562 95,898,521 103,990,289 97,994,914 109,377,800
Business-type activities net position
Net position - beginning 107,202,624 117,455,560 128,900,769 144,890,858 153,438,033 156,856,948 165,531,263 168,484,295 169,131,159 173,166,974
Prior period adjustment/special items 350,000 (705,529) 10,904,141 (728,969) (125,821) (209,083) (148,347) 714,050 - -
Net position - ending 120,281,927 124,670,622 146,838,171 149,322,770 163,682,418 162,741,801 167,479,392 174,190,273 173,166,974 178,053,634
Total Primary Government Net Position 202,440,427$ 208,251,229$ 231,068,312$ 230,758,857$ 251,471,734$ 249,415,363$ 263,377,913$ 278,180,562$ 271,161,888$ 287,431,434$
City of Bremerton / 114City of Bremerton / 114
Fund Balance of Governmental Funds
Last Ten Fiscal Years Table 3
2008 2009 2010 2011*2012 2013 2014 2015 2016 2017
General fund
Nonspendable -$ -$ -$ 18,683$ 18,418$ 24,801$ 20,060$ 18,827$ 23,407$ 18,957$
Restricted - - - 48,556 20,562 50,179 50,179 76,836 59,868 173,169
Committed - - - - - - - 729,705 939,373 1,024,537
Assigned - - - 65,926 545,168 - - - - -
Unassigned - - - 3,274,281 4,018,522 4,794,308 4,725,880 4,658,608 6,942,454 9,102,269
General fund *
Reserved 19,070 - - - - - - - - -
Unreserved 1,313,146 1,957,308 3,049,878 - - - - - - -
Total General Fund 1,332,216$ 1,957,308$ 3,049,878$ 3,407,446$ 4,602,670$ 4,869,288$ 4,796,119$ 5,483,976$ 7,965,102$ 10,318,932$
All other governmental funds
Nonspendable -$ -$ -$ 23,264$ -$ -$ -$ -$ -$ -$
Restricted - - - 4,592,196 2,786,592 3,040,543 2,923,689 7,813,051 7,121,639 6,536,627
Committed - - - 232,026 313,984 357,663 652,253 674,653 566,466 785,236
Assigned - - - 1,045,415 1,577,720 2,051,610 1,927,149 1,674,781 2,700,402 3,125,414
Unassigned - - - (96,866) - - - - - -
All other governmental funds *
Reserved 198,472 350,758 391,078 - - - - - - -
Unreserved, reported in:
Special revenue funds 5,867,682 5,758,691 4,488,327 - - - - - - -
Capital projects funds 1,578,618 2,096,861 6,662,498 - - - - - - -
Debt service funds 590,314 262,834 433,778 - - - - - - -
Total All Other Governmental Funds 8,235,086$ 8,469,144$ 11,975,681$ 5,796,035$ 4,678,296$ 5,449,816$ 5,503,091$ 10,162,485$ 10,388,507$ 10,447,277$
December 31,
0%
32%
9%
15%
44%
2017 Governmental Fund Balances
Nonspendable Restricted Committed Assigned Unassigned
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2008 2009 2010 2011*2012 2014 2015 2016 2017
Governmental Fund Balances by Fiscal Year
2008 2009 2010 2011*2012 2014 2015 2016 2017
*Fund Balance reporting change resulting from implementation of GASB54 in 2011
City of Bremerton / 115City of Bremerton / 115
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Table 4
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Revenues
Taxes 25,132,935$ 24,259,262$ 23,958,593$ 24,139,778$ 24,476,535$ 24,893,527$ 25,964,771$ 32,486,301$ 34,904,810$ 36,450,093$
License and permits 1,037,771 1,174,918 1,165,394 1,233,719 1,133,301 1,264,323 1,306,759 1,439,387 1,499,846 1,470,392
Intergovernmental 8,846,813 8,126,087 8,266,451 5,650,308 6,961,371 5,597,461 6,010,619 4,982,307 4,476,429 9,216,305
Charges for services 5,005,728 5,188,790 5,648,907 4,950,225 6,601,588 3,345,061 3,079,275 3,507,757 3,113,149 6,889,927
Fines and forfeits 1,689,080 1,929,836 1,581,937 1,536,690 1,492,213 1,252,160 1,260,469 1,377,204 1,475,329 1,571,777
Miscellaneous 2,497,255 1,636,519 2,962,238 1,706,691 1,985,835 1,737,857 2,030,651 2,129,699 1,702,113 2,178,425
Total revenues 44,209,582 42,315,412 43,583,520 39,217,411 42,650,843 38,090,389 39,652,544 45,922,655 47,171,676 57,776,919
Expenditures
General government 6,830,197 6,793,202 6,878,458 7,237,760 6,096,052 4,833,662 4,713,790 5,204,949 5,384,977 7,638,665
Public safety 21,205,949 22,222,451 22,369,568 21,787,632 21,161,867 21,473,549 22,513,669 23,534,874 23,363,734 23,430,397
Utilities and environment 223,469 226,975 219,431 219,631 219,560 28,166 23,165 28,694 28,401 24,450
Transportation 7,401,334 3,372,750 3,010,848 3,135,657 4,419,430 3,242,692 4,236,661 4,382,943 3,807,174 5,763,284
Economic environment 3,142,196 1,950,417 3,269,259 2,292,909 1,891,527 1,616,533 1,647,643 1,799,656 1,832,929 2,330,587
Mental/physical health 73,525 74,922 75,126 75,573 69,963 271,038 274,877 275,421 154,084 126,279
Cultural and recreation 5,357,250 4,548,291 4,867,545 4,364,162 4,530,933 4,226,772 4,480,333 4,552,498 4,458,543 4,544,247
Debt service
Principle 986,000 1,035,500 771,500 1,382,500 1,458,239 10,025,000 1,260,000 1,255,000 1,685,000 1,715,000
Interest and other debt issue costs 1,165,883 946,444 964,772 1,402,902 1,140,116 1,174,562 1,192,256 1,222,366 1,259,364 1,228,139
Capital 4,515,778 4,874,658 9,361,248 7,256,768 5,708,349 4,781,135 6,028,569 4,879,056 2,598,779 9,262,740
Intergovernmental Payments - - - 42,203 - - - - - -
Total expenditures 50,901,581 46,045,610 51,787,755 49,197,697 46,696,036 51,673,109 46,370,963 47,135,457 44,572,985 56,063,788
Excess of revenues over (under)
expenditures (6,691,999) (3,730,198) (8,204,235) (9,980,286) (4,045,193) (13,582,720) (6,718,419) (1,212,802) 2,598,691 1,713,131
Other Financing Sources (Uses)
Proceeds of long-term debt - - 19,407,267 9,675,000 5,215,000 8,590,000 - 4,160,000 - -
Premiums on bonds sold 122,033 401,073 - 399,823 - -
Payments to refunded escrow agent - - (10,387,010) (9,675,000) (5,653,814) - - - - -
Capital asset donation and disposal 428,319 398,759 40,930 511,823 - 137,498 199,550 67,728 123,770 1,186,254
Insurance recoveries - 14,664 18,629 1,251 349 285 8,817 10,620 8,741 13,218
Transfers in 6,461,827 7,415,810 5,630,979 6,921,147 6,074,690 6,932,744 8,098,633 4,746,365 1,885,584 2,568,366
Transfers out (4,195,667) (3,239,886) (2,020,214) (3,282,833) (1,612,316) (1,440,742) (1,681,679) (2,840,790) (1,909,639) (3,068,366)
Total other financing sources and uses 2,694,479 4,589,347 12,690,581 4,151,388 4,145,942 14,620,858 6,625,321 6,543,746 108,456 699,472
December 31,
City of Bremerton / 116City of Bremerton / 116
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Table 4
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
December 31,
Other Change in Fund Balance
Change in reserves for inventory (1,507) - (10,666) 6,820 (23,264) - - - - -
Net change in fund balances (3,999,027) 859,149 4,475,680 (5,822,078) 77,485 1,038,138 (93,098) 5,330,944 2,707,147 2,412,603
Fund balances-beginning 13,707,055 9,567,302 10,426,451 15,025,559 9,203,481 9,280,966 10,319,104 10,299,210 15,646,461 18,353,609
Prior Period Adjustments (140,726) - 123,428 - - - 73,204 16,307 - -
Fund balances-ending 9,567,302$ 10,426,451$ 15,025,559$ 9,203,481$ 9,280,966$ 10,319,104$ 10,299,210$ 15,646,461$ 18,353,608$ 20,766,212$
Debt service as a percentage of
noncapital expenditures 4.64%4.81%4.09%6.64%6.34%23.88%6.08%5.86%7.01%6.29%
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Changes in Fund Balance by Fiscal Year
Beginning Fund Balance Ending Fund Balance
City of Bremerton / 117City of Bremerton / 117
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Table 5
Fiscal
Year Assessed Value
Estimated
Actual Value Assessed Value
Estimated
Actual Value Assessed Value
Estimated
Actual Value
2008 2,974,663,326 3,395,734,390 140,113,102 143,118,592 3,114,776,428 3,538,852,982 87.8%2.51
2009 2,950,336,030 3,430,623,291 134,404,987 138,704,837 3,084,741,017 3,569,328,128 86.2%2.76
2010 2,738,164,824 3,187,619,120 161,319,684 163,279,032 2,899,484,508 3,350,898,152 86.2%2.97
2011 2,592,959,827 2,939,863,749 155,787,967 157,999,967 2,748,747,794 3,097,863,716 88.4%3.13
2012 2,396,294,922 2,704,621,808 152,670,570 155,153,018 2,548,965,492 2,859,774,826 88.8%3.37
2013 2,250,204,824 2,445,874,809 144,576,776 148,436,115 2,394,781,600 2,594,310,924 92.1%3.61
2014 2,143,730,007 2,358,338,842 149,270,722 156,304,421 2,293,000,729 2,514,643,263 91.0%3.85
2015 2,206,109,042 2,346,924,513 148,433,705 149,480,065 2,354,542,747 2,496,404,578 94.1%3.83
2016 2,358,328,229 2,508,859,818 145,081,330 146,104,058 2,503,409,559 2,654,963,876 88.9%3.57
2017 2,596,377,541 2,762,103,767 140,227,596 141,216,109 2,736,605,137 2,903,319,876 89.2%3.27
Ratio of
Assessed Value
to Estimated
Actual Value
Total Levy
Rate per
$1,000
Real Property Personal Property Total
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
PERSONAL PROPERTY
Personal Property Assessed Value Personal Property Estimated
Actual Value
0
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
7,000,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
REAL PROPERTY
Assessed Value Estimated
Actual Value
City of Bremerton / 118City of Bremerton / 118
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
Table 6
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General Revenues
Taxes
Property Tax 7,799,723 8,490,418 8,553,934 8,546,532 8,578,750 8,511,679 8,688,122 8,971,576 9,618,497 9,746,766
Local Sales & Use Tax
Local Retail Sales & Use Tax 7,313,178 6,114,008 6,120,060 6,604,669 6,844,193 6,489,850 6,864,848 7,288,823 8,007,178 8,568,933
Local Revitalization Financing - - 146,258 370,613 339,594 337,450 340,860 349,901 352,173 356,075
Hotel/Motel Sales & Use Tax 317,385 362,410 347,792 393,288 417,131 388,620 434,001 529,682 555,833 637,423
Criminal Justice Sales & Use Tax 476,939 427,665 418,917 446,258 451,761 462,935 490,256 541,747 591,310 628,843
Total Local Sales & Use Tax 8,107,502 6,904,083 7,033,027 7,814,828 8,052,679 7,678,855 8,129,965 8,710,153 9,506,494 10,191,274
Business Taxes
Business & Occupation Taxes 2,889,482 3,155,501 2,811,903 2,765,879 2,698,574 2,609,466 2,664,794 2,838,188 3,254,215 3,075,502
Gambling Excise Taxes 268,174 239,959 276,734 93,146 81,841 55,641 68,993 54,108 68,301 712,506
Total Business Taxes 3,157,656 3,395,460 3,088,637 2,859,025 2,780,415 2,665,107 2,733,787 2,892,296 3,322,516 3,788,008
Utility Taxes
Electric Utility 1,685,415 1,714,605 1,716,776 1,776,770 1,756,362 1,822,957 1,839,046 1,786,917 1,921,464 2,056,594
Gas Utility 907,311 527,349 419,100 449,995 375,524 365,522 394,593 371,878 346,428 401,961
Garbage/Solid Waste Utility 428,975 460,037 454,929 455,621 459,818 476,599 483,359 573,835 653,451 681,545
Cable TV Utility 563,620 575,472 601,782 619,550 617,149 618,076 636,564 609,528 727,765 659,854
Telephone Utility 1,502,447 1,475,421 1,338,542 1,210,552 1,198,455 1,132,558 978,824 987,549 860,916 788,543
Water Utility 684,855 1,004,461 1,267,675 1,307,466 1,310,542 1,366,011 1,722,961 1,767,957 1,717,541 2,063,033
Wastewater Utility 1,124,299 1,579,797 2,015,319 2,044,970 2,699,404 2,621,252 2,750,903 3,051,164 2,964,677 2,999,130
Stormwater Utility 164,091 244,916 327,771 343,308 452,427 481,739 376,536 547,164 581,527 687,123
-
Total Utility Taxes 7,061,013 7,582,058 8,141,894 8,208,232 8,869,681 8,884,714 9,182,786 9,695,992 9,773,769 10,337,783
Other Taxes and State Shared Revenue
Leasehold Tax 53,055 62,232 101,570 110,491 112,087 111,758 123,721 128,893 127,049 153,008
TBD Vehicle Fees - - - - 189,169 431,866 444,012 480,625 510,642 549,548
Parking Tax 296,602 311,374 317,898 316,380 476,499 497,088 547,288 626,078 695,664 650,837
Real Estate Excise Tax 709,894 570,619 412,518 336,378 427,807 481,898 788,594 982,512 1,291,762 1,688,426
State & Local Shared Revenue 1,491,835 1,465,909 1,529,170 1,544,471 1,722,117 1,624,554 2,141,696 1,827,137 2,280,493 1,562,466
Total Other Taxes and State Shared Revenue 2,551,386 2,410,134 2,361,156 2,307,720 2,927,679 3,147,164 4,045,311 4,045,245 4,905,610 4,604,285
28,677,280 28,782,153 29,178,648 29,736,337 31,209,204 30,887,519 32,779,971 34,315,262 37,126,886 38,668,116
December 31,
City of Bremerton / 119City of Bremerton / 119
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Table 7
Fiscal
Year
Operating
Milage
EMS
Milage
Debt Service
Milage
Total City
Milage
Kitsap County
Milage
State School
Milage
Bremerton
School District
Milage/Debt
Port of
Bremerton
Milage/Debt
Public Utility
Milage
Kitsap Regional
Library Milage
Total
Overlapping
Rates
Total Direct &
Overlapping
Rates
2008 1.90323 0.31487 0.29256 2.51065 0.87703 2.02829 3.18750 0.69372 0.06180 0.28021 7.12855 9.63919
2009 1.96901 0.50000 0.29004 2.75905 0.90091 2.02559 3.41376 0.71533 0.06348 0.28792 7.40699 10.16604
2010 2.16239 0.50000 0.30911 2.97151 0.98964 2.13360 3.75818 0.77433 0.06847 0.32040 8.04462 11.01613
2011 2.32957 0.50000 0.29627 3.12583 1.06784 2.37752 4.13613 0.79156 0.07376 0.34726 8.79406 11.91989
2012 2.55906 0.50000 0.30861 3.36767 1.13920 2.49738 4.54333 0.81469 0.07804 0.37076 9.44340 12.81107
2013 2.76184 0.50000 0.35143 3.61327 1.20157 2.50708 5.52472 0.38352 0.08173 0.39111 10.08973 13.70299
2014 2.95020 0.50000 0.39533 3.84554 1.23562 2.47237 5.88763 0.39439 0.08544 0.40208 10.47753 14.32307
2015 2.94554 0.50000 0.38686 3.83240 1.20167 2.17682 5.81830 0.38814 0.08312 0.39013 10.05818 13.89058
2016 2.83000 0.49000 0.57000 3.89000 1.16649 2.35544 5.56692 0.38170 0.08059 0.38179 9.93293 13.82293
2017 2.63000 0.45000 0.48000 3.56000 1.08619 2.11674 5.53232 0.35055 0.07411 0.35337 9.51326 13.07326
Overlapping RatesCity of Bremerton Direct Rates
0.00000
0.50000
1.00000
1.50000
2.00000
2.50000
3.00000
3.50000
4.00000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
City of Bremerton Direct Property Tax Rate
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
0.00000
2.00000
4.00000
6.00000
8.00000
10.00000
12.00000
14.00000
16.00000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total Direct & Overlapping Property Tax Rates
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Source: Kitsap County Assessor's Office
City of Bremerton / 120City of Bremerton / 120
Principal Property Taxpayers
Current Year and Nine Years Ago
Table 8
Taxpayer
Taxable
Assessed
Valuation Rank
Percentage
of Assessed
Valuation Taxpayer
Taxable
Assessed
Valuation Rank
Percentage
of Assessed
Valuation
Puget Sound Energy 41,276,911$ 1 1.6%Puget Sound Energy 32,103,305$ 1 2.0%
Bremerton Fee Owner 19,693,900 2 0.8%East Park LLC 20,796,880 2 0.7%
EP Holdings LLc 17,512,980 3 0.7%Kitsap Community Credit Union 18,925,960 3 0.6%
Health Care Reit Inc 16,102,000 4 0.6%SHP II Bremerton LLC 11,968,680 4 0.4%
PC Pine Ridge Bremerton LLC 15,923,030 5 0.6%New Albertsons Inc 11,295,780 5 0.4%
Arch BPBRMWA01 LLC 13,174,170 6 0.5%Bremer Trust 11,208,290 6 0.4%
Oyster Bay Holdings LLC 12,548,670 7 0.5%Bremerton Residential Investments 10,609,630 7 0.3%
Qwest Corporation 11,561,668 8 0.5%Toyexpansion 10,046,230 8 0.3%
Heartland Automobile Prop LLC 10,553,210 9 0.4%R & L Property Management 9,831,040 9 0.3%
Winco Foods LLC 9,879,105 10 0.4%Ryan Tim Properties LP 9,735,710 10 0.3%
Top Ten Taxpayer Taxable Assessed Valuation 168,225,644 6.7%Top Ten Taxpayer Taxable Assessed Valuation 146,521,505 4.7%
All Other Taxpayer Taxable Assessed Valuation 2,335,183,915 93.3%All Other Taxpayer Taxable Assessed Valuation 2,968,236,923 95.3%
Total Taxpayer Taxable Assessed Valuation 2,503,409,559$ 100.0%Total Taxpayer Taxable Assessed Valuation 3,114,758,428$ 100.0%
2017 2008
6.7%
93.3%
Assessed Valuation of 2017 Top Ten Taxpayers Compared to
Total Taxable Assessed Valuation
Top 10 Taxpayers All Other Taxpayers
City of Bremerton / 121City of Bremerton / 121
Property Tax levies and Collections
Last Ten Fiscal Years
(In Thousands)
Table 9
Fiscal
Year Tax Levy
Current Tax
Collections
% of Tax
Levy
Collected
Delinquent
Tax
Collections
Total Tax
Collections
% of Total
Tax
Collections
to Tax Levy
Outstanding
Delinquent
Taxes
% of
Outstanding
Delinquent to
Tax Levy
2008 7,816 7,498 95.93%190 7,688 98.36%506 6.47%
2009 8,507 8,064 94.79%192 8,256 97.05%735 8.64%
2010 8,613 8,209 95.31%411 8,620 100.08%669 7.77%
2011 8,590 8,278 96.37%283 8,561 99.66%655 7.63%
2012 8,587 8,242 95.98%317 8,559 99.67%614 7.15%
2013 8,647 8,321 96.23%290 8,611 99.58%575 6.65%
2014 8,812 8,575 97.31%256 8,831 100.22%432 4.90%
2015 9,019 8,824 97.84%207 9,031 100.13%373 4.14%
2016 9,730 9,531 97.95%146 9,677 99.46%321 3.30%
2017 9,756 9,603 98.43%127 9,730 99.73%319 3.27%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Annual Property Tax Levies and Taxes Collected
Tax Levy Total Tax Collected
City of Bremerton / 122City of Bremerton / 122
Ratio of Net General Bonded Debt
To Assessed Value and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Table 10
Fiscal
Year Population*
Assessed
Value**
General
Obligation
Bonded
Debt
Less Debt
Service Fund
Net Bonded
Debt
Percentage
Net Bonded
Debt to
Assessed Value
Debt per
Capita
2008 36,860 3,114,776,428 27,424,767 623,385 26,801,382 0.86%727
2009 36,620 3,084,741,017 26,847,185 313,948 26,533,237 0.86%725
2010 36,190 2,899,484,508 35,705,685 474,303 35,231,382 1.22%974
2011 38,790 2,748,747,794 39,511,239 426,513 39,084,726 1.42%1,008
2012 39,650 2,548,965,492 37,768,000 275,190 37,492,810 1.47%946
2013 37,850 2,394,781,600 36,260,000 203,725 36,056,275 1.51%953
2014 37,850 2,293,000,729 34,770,000 293,160 34,476,840 1.50%911
2015 38,180 2,354,542,747 37,430,000 546,561 36,883,439 1.57%966
2016 39,410 2,503,409,559 35,460,000 464,060 34,995,940 1.40%888
2017 40,630 2,736,605,137 33,445,000 438,766 33,006,234 1.21%812
*State of Washington, Office of Financial Management
** Kitsap County Treasurer's Office
33,000
34,000
35,000
36,000
37,000
38,000
39,000
40,000
41,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
POPULATION
City of Bremerton / 123City of Bremerton / 123
Computation of Direct and Overlapping Debt
December 31, 2017
Table 11
Gross General
Obligation
Amount Applicable
to Bremerton
City of Bremerton 72,275,000 100.00 %72,275,000
Kitsap County 74,367,047 8.60 %6,395,566
Port of Bremerton 3,000,000 21.68 %650,400
School District #100 3,783,736 73.27 %2,772,343
So. Kitsap Schools #402 2,319,521 0.36 %8,350
TOTAL 155,745,304 82,101,660
Jurisdiction
Percentage Applicable
to Bremerton
63%
8%
1%
3%
0%
Percentage of Direct & Overlapping Debt
Applicable to the City of Bremerton
City of Bremerton Kitsap County Port of Bremerton
School District #100 So. Kitsap Schools #402
City of Bremerton / 124City of Bremerton / 124
Computation of Legal Debt Margin
as of December 31, 2017
Total Taxable Property Value 2,736,605,137
2.5% General purpose limit is allocated between:68,415,128
Up to 1.5% debt without a vote (RCW 39.36.020)41,049,077
Less: Outstanding Debt (non-voted)23,030,000
Less: Excess of Debt with a Vote -
Add: Available Assets 241,767
Equals remaining debt capacity without a vote 18,260,844
Up to 2.5% debt with a vote (RCW 39.36.020)45,626,895
Less: Outstanding Debt (voted)10,415,000
Add: Available Assets 141,841
Equals remaining debt capacity with a vote 35,353,736
2.5% Utility purpose limit, voted (RCW 39.36.020)68,415,128
Less: Outstanding Debt -
Less: Contracts Payable -
Add: Available Assets -
Equals remaining debt capacity- Utility purpose, voted 68,415,128
2.5% Open Space, park & capital facilities, voted (RCW 39.36.020)68,415,128
Less: Outstanding Debt -
Less: Contracts Payable -
Add: Available Assets -
Equals remaining debt capacity - Open space, park & capital facilites voted 68,415,128
/ 125City of Bremerton / 125
Tables 12
Water and Sewer Revenue Bond Coverage
Last Ten Fiscal Years
Table 13
Fiscal
Year
Gross
Revenue
Maintenance &
Operating
Expenses*
Net Revenue
Available for
Debt Service
Current
Principal Interest Total
Current
Coverage
Ratio
2008 23,021,132 13,023,575 9,997,557 305,000 223,202 528,202 18.93
2009 22,697,794 13,160,506 9,537,288 320,000 210,148 530,148 17.99
2010 22,172,232 12,563,519 9,608,713 330,000 196,452 526,452 18.25
2011 22,869,304 12,807,726 10,061,578 335,000 182,328 517,328 19.45
2012 23,000,401 12,822,748 10,177,653 350,000 167,990 517,990 19.65
2013 23,418,123 12,907,625 10,510,498 365,000 153,010 518,010 20.29
2014 27,651,623 15,502,853 12,148,770 375,000 137,388 512,388 23.71
2015 31,231,386 15,924,253 15,307,133 595,000 420,344 1,015,344 15.08
2016 30,712,602 17,041,373 13,671,229 620,000 352,046 972,046 14.06
2017 32,292,432 18,577,191 13,715,241 915,000 651,782 1,566,782 8.75
* Net of depreceiation, amortization and City taxes
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Net Revenue Available for Debt Service
Available Net Revenue Total Debt Principal & Interest
City of Bremerton / 126City of Bremerton / 126
Miscellaneous Statistics
Table 14
DATE OF INCORPORATION
October 14, 1901
FORM OF GOVERNMENT
Council - Mayor
Type of Government
Home-Rule Charter
Demographics in 2017
Total Area for City of Bremerton 32.1 Square Miles
Number of City Employees 2017
Full-Time Equivalents 328.00
Fire Protection
Number of Personnel 58
Number of Stations 3
Fire and Aid Calls - 2017 9,014
Priority 1 Response Time (minutes)5:41
Police Protection
Number of Police Officers 59
Calls for Service - 2017 50,419
Average Priority 1 Response Time (minutes) 3:46
Average Priority 2 Response Time (minutes)4:43
Parks & Recreation
Number of Developed Parks 36
Number of Park Acres 709.50
Senior Centers 1
Bremerton Family YMCA 1
Community Pool - Jarstad Aquatic Center 1
Golf - Gold Mountain Golf Complex 1
Ice Arena - Bremerton Ice Arena 1
Business Licenses
Number of Business Licenses Issued - 2017 4,547
Number of Business Licenses Issued in City Limits 1,434
Number of Landlord Licenses Issued - 2017 1,688
City of Bremerton / 127City of Bremerton / 127
Miscellaneous Statistics
Table 14
Water Utility Services 2017
Residential Accounts 17,264
Commercial Accounts 1,869
Storage Capacity (gallons)33,240,000
Cascade Dam Capacity (gallons)1.4 billion
Average Daily Demand (millions per gallon-MG)6.2
Reservoirs 17
Watershed Land (square miles)12.96
Sources:
Surface Supply (MG)1,082
Ground Supply (MG)1,150
Miles of Main 322
Sewer Utility Services 2017
Residential Sewer Accounts 10,200
Commercial Sewer Accounts 929
Miles of Main 151
Miles of Force Main 31
Sewage Pump Stations 39
Grinder Pump Stations 169
Westside Wastewater Treatment Plant:
Average Annual Flow - MGD 5.0
Hydraulic Peak Capacity - MGD 45
Permitted Average 12.5
Eastside CSO Plant
Peak Treatment Capacity - MGD 20
Stormwater Utility Services 2017
Residential Accounts 10,303
Commercial Accounts 1,035
Miles of Mains 148
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.
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.
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 / 128City of Bremerton / 128
Miscellaneous Statistics
Table 14
City Streets
Street Miles 144
State Highway Miles 19
Miles of Sidewalks 127
Signalized Traffic Intersections 39
Street Lights:
City Owned 926
Leased from Puget Sound Energy 1,738
Signs, Crosswalks & Lane Markings 7,700
Forestry
Water and Utlity Forest Lands (acres)8,300
Miles of Forest Roads 60
Timber Harvested (board feet)1.19 MBF
Biosolids applied (cubic yards)2,936
Reforestation (seedlings planted)32,050
Public Schools
Elementary 6
Middle School 1
Junior High 1
High School 1
Vocational School 1
Colleges
Olympic College
1600 Chester Ave., Bremerton
360 792-6050 2255 Cole Ave. Bldg. 853, Bremerton
1 800 259-6718
Hospitals
Harrison Medical Center
2520 Cherry Ave., Bremerton 1 Boone Road, Bremerton
360 377-3911 1 800 422-1383
360 476-4282 Ext. 9176
Naval Hospital Bremerton
Bremerton is served primarily by Bremerton School District #100. A small percentage of children attend Central Kitsap
School District #401.
Navy College
Naval Kitsap Bremerton
City of Bremerton / 129City of Bremerton / 129
Miscellaneous Statistics
Table 14
Local Transportation
Washington State Ferries
Seattle Bremerton Route - Total Annual Rides 2017 2,778,668
Kitsap Transit 2017
Foot Ferry
Annual Rides - Port Orchard & Annapolis 232,323
Buses (County Wide)
Annual Bus Rides (Routed Service )1,077,866
Kitsap Access Bus 139,665
Worker/Driver Service 210,550
Fast Ferry NEW
2017 Total Bus Ridership 1,428,081
Vanpool and Other
Vanpool Service 89,065
2017 Total Vanpool Ridership 89,065
Guaranteed Ride Home
Guaranteed Ride Home 100
2017 Total Guaranteed Ride Home 100
Total Kitsap Transit Ridership 1,749,569
Sources: Washington State Ferries
Kitsap Transit
City of Bremerton / 130City of Bremerton / 130