HomeMy WebLinkAbout2018 Annual Report
City of Bremerton,
Washington
Annual Financial Report
For the Fiscal Year ended
December 31, 201
Preparedby the Finance Department
City of Bremerton
th
345 6Street, Suite 00
Bremerton,WA 98337
(360)473-5210
Website: www.bremertonwa.gov
City of Bremerton
Comprehensive Annual Financial Report
for the Fiscal Year Ended December 31, 2018
TABLE OF CONTENTS
INTRODUCTORY SECTION
O RGANIZATION CHART 1
DIRECTORY OF OFFICIALS 2
FINANCIAL SECTION
INDEPENDENT AUDITORS REPORT 4
MANAGEMENTS DISCUSSION AND ANALYSIS 8
BASIC FINANCIAL STATEMENTS:
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 18
S TATEMENT OF ACTIVITIES 19
FUND FINANCIAL STATEMENTS
BALANCE SHEET GOVERNMENTAL FUNDS 20
S TATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS 21
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 22
STATEMENT OF REVENUES,E XPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL FUND 23
S TATEMENT OF NET POSITION PROPRIETARY FUNDS 24
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS 25
STATEMENT OF CASH FLOWS PROPRIETARY FUNDS 26
STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS 28
NOTES TO THE FINANCIAL STATEMENTS 29
REQUIRED SUPPLEMENTARY INFORMATION:
PERS 167
PERS 2/368
PSERS 69
LEOFF 1 PENSION BENEFITS 70
LEOFF 271
PERS 172
TABLE OF CONTENTS
PERS 2/373
PSERS 74
LEOFF 275
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS
LEOFF 176
C OMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS 77
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS 80
SCHEDULES OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
SPECIAL REVENUE FUNDS 83
DEBT SERVICE FUNDS 95
CAPITAL PROJECTS FUNDS 99
COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUND 106
COMBINING STATEMENT REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION 107
COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS 108
COMBINING STATEMENT OF FIDUCIARY NET POSITION 110
STATISTICAL SECTION
FINANCIAL TRENDS
T ABLE 1N ET P OSITION BY COMPONENT 111
TABLE 2 CHANGES IN NET POSITION 112
TABLE 3 FUND BALANCE OF GOVERNMENTAL FUNDS 114
TABLE 4 CHANGESIN FUND BALANCES OFGOVERNMENTAL FUNDS 115
REVENUE CAPACITY
TABLE 5 ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY 117
TABLE 6 GOVERNMENTAL ACTIVITIES TAX REVENUES BYSOURCE 118
TABLE 7 PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS 119
TABLE 8 PRINCIPAL PROPERTY TAXPAYERS 120
TABLE 9 PROPERTY TAX LEVIESAND COLLECTIONS 121
DEBTCAPACITY
TABLE 10 RATIO OF NET GENERAL BONDED DEBT 122
TABLE 11C OMPUTATION OF D IRECT AND OVERLAPPING DEBT 123
TABLE 12 COMPUTATION OF LEGALDEBT MARGIN 124
TABLE 13 WATER AND SEWER REVENUE BOND COVERAGE 125
DEMOGRAPHIC AND ECONOMIC INFORMATION
TABLE 14 MISCELLANEOUS STATISTICS 126
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Directory of
Officials201
Elected Officials:
Mayor............................................................................................................................
District #1 Council Member ............................................................................................ Pat Sullivan
District #2 Council Member ........................................................................................... LeslieDaugs
District #3 Council Member ...................................................................................... Jerry McDonald
District #4 Council Member ......................................................................................... Greg Wheeler
............................................... Dino Davis
District #5 Council Member ..............................................
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 .....................................................................................................................
Police Chief ............................................................................................................... Steven Strachan
Director of Financial Services .....................................................................................
Director of Community Development ....................................................................... Andrea Spencer
Director ofParks and Recreation ................................................................................... Jeff Elevado
City Auditor .................................................................................................................... Jenny Sims
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Government Auditing
Standards
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Accounting and
Financial Reporting for Postemployment Benefits Other Than Pensions
Required Supplementary Information
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Supplementary and Other Information
U.S. Code
of Federal Regulations Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards
Government Auditing Standards
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Government Auditing Standards
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Management Discussion and Analysis
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statement of net position
statement of activities
governmental
funds proprietary fundsfiduciary funds
Governmental funds
Management Discussion and Analysis
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Proprietary funds
enterprise fundsinternal service funds
Fiduciary funds
Agency funds
Management Discussion and Analysis
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Basic Financial Statements – and Management’s Discussion and Analysis – for State
and Local Governments
Management Discussion and Analysis
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Governmental activities
Management Discussion and Analysis
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Management Discussion and Analysis
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Business-type activities
Management Discussion and Analysis
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Management Discussion and Analysis
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Management Discussion and Analysis
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Management Discussion and Analysis
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governmental activities
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Accounting and Financial Reporting for Postemployment Benefits Other than Pensions
(OPEB)
Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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internal balances
Long-Term Debt
Notes to Financial Statements
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Capital Assets
Notes to Financial Statements
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Pension Plans
Notes to Financial Statements
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Long-Term DebtChanges in Long-term Liabilities
Pension Plans
Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Interest Rate Risk
Credit Risk
Notes to Financial Statements
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Concentration of Credit Risk
Custodial Credit Risk.
Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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2007-2012 Experience Study2017 Economic Experience Study.
Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Schedules of
Employer and Nonemployer Allocations
Notes to Financial Statements
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Notes to Financial Statements
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PERS 1
Notes to Financial Statements
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PERS 2/3
PSERS
LEOFF 1
LEOFF 2
Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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Notes to Financial Statements
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General
FundTotal
Notes to Financial Statements
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Notes to Financial Statements
City of Bremerton / 63
Notes to Financial Statements
City of Bremerton / 64
Notes to Financial Statements
City of Bremerton / 65
Notes to Financial Statements
City of Bremerton / 66
Notes to Financial Statements
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REQUIRED SUPPLEMENTARY INFORMATION
* This schedule is to be built prospectively until it contains ten years of data.
Notes to Financial Statements
City of Bremerton / 68
REQUIRED SUPPLEMENTARY INFORMATION
* This schedule is to be built prospectively until it contains ten years of data.
Notes to Financial Statements
City of Bremerton / 69
REQUIRED SUPPLEMENTARY INFORMATION
* This schedule is to be built prospectively until it contains ten years of data.
Notes to Financial Statements
City of Bremerton / 70
REQUIRED SUPPLEMENTARY INFORMATION
* This schedule is to be built prospectively until it contains ten years of data.
Notes to Financial Statements
City of Bremerton / 71
REQUIRED SUPPLEMENTARY INFORMATION
* This schedule is to be built prospectively until it contains ten years of data.
Notes to Financial Statements
City of Bremerton / 72
REQUIRED SUPPLEMENTARY INFORMATION
* This schedule is to be built prospectively until it contains ten years of data.
Notes to Financial Statements
City of Bremerton / 73
REQUIRED SUPPLEMENTARY INFORMATION
* This schedule is to be built prospectively until it contains ten years of data.
Notes to Financial Statements
City of Bremerton / 74
REQUIRED SUPPLEMENTARY INFORMATION
* This schedule is to be built prospectively until it contains ten years of data.
Notes to Financial Statements
City of Bremerton / 75
REQUIRED SUPPLEMENTARY INFORMATION
* This schedule is to be built prospectively until it contains ten years of data.
Notes to Financial Statements
City of Bremerton / 76
Notes to Financial Statements
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City of Bremerton
Statement of Fiduciary Net Position
Fiduciary Funds
December 31, 2018
Agency
Funds
ASSETS
Cash and cash equivalents$ 541,451
Total assets$ 541,451
Deferred outflows of resources$ -
LIABILITIES
Accounts/contracts payable39,671
Other current liabilities501,780
Total liabilities$ 541,451
Deferred inflows of resources$ -
See accompanying notes to the financial statements.
City of Bremerton / 121
Table 9
Property Tax levies and Collections
Last Ten Fiscal Years
(In Thousands)
% of Total% of
% of Tax Delinquent Tax OutstandingOutstanding
FiscalCurrent TaxLevy TaxTotal TaxCollectionsDelinquentDelinquent to
YearTax LevyCollectionsCollectedCollectionsCollectionsto Tax LevyTaxesTax Levy
20098,5078,06494.79%1928,25697.05%7358.64%
20108,6138,20995.31%4118,620100.08%6697.77%
20118,5908,27896.37%2838,56199.66%6557.63%
20128,5878,24295.98%3178,55999.67%6147.15%
20138,6478,32196.23%2908,61199.58%5756.65%
20148,8128,57597.31%2568,831100.22%4324.90%
20159,0198,82497.84%2079,031100.13%3734.14%
20169,7309,53197.95%1469,67799.46%3213.30%
20179,7569,60398.43%1279,73099.73%3193.27%
201810,0319,88598.54%14810,033100.02%3273.26%
Annual Property Tax Levies and Taxes Collected
12,000
10,000
8,000
6,000
4,000
2,000
0
2009201020112012201320142015201620172018
Tax LevyTotal Tax Collected
City of Bremerton / 122
Table 10
Ratio of Net General Bonded Debt
To Assessed Value and Net Bonded Debt Per Capita
Last Ten Fiscal Years
General Percentage
ObligationNet Bonded
Fiscal AssessedBondedLess DebtNet Bonded Debt to Debt per
YearPopulation*Value**DebtService FundDebtAssessed ValueCapita
200936,6203,084,741,01726,847,185313,94826,533,2370.86%725
201036,1902,899,484,50835,705,685474,30335,231,3821.22%974
201138,7902,748,747,79439,511,239426,51339,084,7261.42%1,008
201239,6502,548,965,49237,768,000275,19037,492,8101.47%946
201337,8502,394,781,60036,260,000203,72536,056,2751.51%953
201437,8502,293,000,72934,770,000293,16034,476,8401.50%911
201538,1802,354,542,74737,430,000546,56136,883,4391.57%966
201639,4102,503,409,55935,460,000464,06034,995,9401.40%888
201740,6302,736,605,13733,445,000438,76633,006,2341.21%812
201841,5003,073,499,58431,360,000475,59530,884,4051.00%744
*
State of Washington, Office of Financial Management
**
Kitsap County Treasurer's Office
POPULATION
42,000
41,000
40,000
39,000
38,000
37,000
36,000
35,000
34,000
33,000
2009201020112012201320142015201620172018
City of Bremerton / 123
Table 11
Computation of Direct and Overlapping Debt
December 31, 2018
Gross General Amount Applicable
Percentage Applicable
Obligationto Bremerton
Jurisdictionto Bremerton
City of Bremerton27,750,000100.00%27,750,000
Kitsap County67,882,8798.60%5,837,928
Central Kitsap Schools188,665,00021.68%40,902,572
School District #1002,501,67773.27%1,832,979
So. Kitsap Schools #402 1,861,3110.36%6,701
TOTAL288,660,86776,330,179
Percentage of Direct & Overlapping Debt
Applicable to the City of Bremerton
8%
2%
63%
0%
54%
City of BremertonKitsap CountyCentral Kitsap Schools
School District #100So. Kitsap Schools #402
City of Bremerton / 124
Table 12
Computation of Legal Debt Margin
as of December 31, 2018
Total Taxable Property Value 3,073,499,584
2.5% General purpose limit is allocated between:76,837,490
Up to 1.5% debt without a vote (RCW 39.36.020)46,102,494
Less: Outstanding Debt (non-voted)21,925,000
Less: Excess of Debt with a Vote-
Add: Available Assets367,392
Equals remaining debt capacity without a vote24,544,886
Up to 2.5% debt with a vote (RCW 39.36.020)55,279,882
Less: Outstanding Debt (voted)9,435,000
Add: Available Assets56,299
Equals remaining debt capacity with a vote45,901,181
2.5% Utility purpose limit, voted (RCW 39.36.020)76,837,490
Less: Outstanding Debt-
Less: Contracts Payable-
Add: Available Assets-
Equals remaining debt capacity- Utility purpose, voted76,837,490
2.5% Open Space, park & capital facilities, voted (RCW 39.36.020)76,837,490
Less: Outstanding Debt-
Less: Contracts Payable-
Add: Available Assets-
Equals remaining debt capacity - Open space, park & capital facilites voted76,837,490
City of Bremerton / 125
Table 13
Water and Sewer Revenue Bond Coverage
Last Ten Fiscal Years
Maintenance &Net Revenue Current
FiscalGrossOperatingAvailable for Current Coverage
YearRevenueExpenses*Debt ServicePrincipalInterestTotalRatio
200922,697,79413,160,5069,537,288320,000210,148530,14817.99
201022,172,23212,563,5199,608,713330,000196,452526,45218.25
201122,869,30412,807,72610,061,578335,000182,328517,32819.45
201223,000,40112,822,74810,177,653350,000167,990517,99019.65
201323,418,12312,907,62510,510,498365,000153,010518,01020.29
201427,651,62315,502,85312,148,770375,000137,388512,38823.71
201531,231,38615,924,25315,307,133595,000420,3441,015,34415.08
201630,712,60217,041,37313,671,229620,000352,046972,04614.06
201732,292,43218,577,19113,715,241915,000651,7821,566,7828.75
201833,149,20619,014,39014,134,816988,950575,1101,564,0609.04
* Net of depreceiation, amortization and City taxes
18,000,000
Net Revenue Available for Debt Service
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2009201020112012201320142015201620172018
Available Net RevenueTotal Debt Principal & Interest
City of Bremerton / 126
Table 14
Miscellaneous Statistics
DATE OF INCORPORATION
October 14, 1901
FORM OF GOVERNMENT
Council - Mayor
Type of Government
Home-Rule Charter
Demographics in 2018
Total Area for City of Bremerton32.1 Square Miles
Number of City Employees 2018
Full-Time Equivalents321.00
Fire Protection
Number of Personnel59
Number of Stations3
Fire and Aid Calls - 20189,120
Priority 1 Response Time (minutes)5:35
Police Protection
Number of Police Officers54
Calls for Service - 201849,679
Average Priority 1 Response Time (minutes) 3:36
Average Priority 2 Response Time (minutes)4:50
Parks & Recreation
Number of Developed Parks36
Number of Park Acres709.50
Senior Centers1
Bremerton Family YMCA1
Community Pool - Jarstad Aquatic Center1
Golf - Gold Mountain Golf Complex1
Ice Arena - Bremerton Ice Arena1
Business Licenses
Number of Business Licenses Issued - 20184,481
Number of Business Licenses Issued in City Limits1,413
Number of Landlord Licenses Issued - 20181,692
City of Bremerton / 127
Table 14
Miscellaneous Statistics
Water Utility Services 2018
Residential Accounts17,428
Commercial Accounts1,887
Storage Capacity (gallons)33,240,000
Cascade Dam Capacity (gallons)1.4 billion
Average Daily Demand (millions per gallon-MG)6.2
Reservoirs17
Watershed Land (square miles)12.96
Sources:
Surface Supply (MG)1,082
Ground Supply (MG)1,150
Miles of Main322
Bremerton supplies 3 billion gallons of water each year to 55,000 people, representing 36% of all the water supplied in Kitsap
County. Bremerton regularly monitors the physical, chemical, and bacteriological characteristics to ensure that the drinking
water is safe and water quality is the best possible.
Sewer Utility Services 2018
Residential Sewer Accounts10,341
Commercial Sewer Accounts934
Miles of Main151
Miles of Force Main31
Sewage Pump Stations39
Grinder Pump Stations169
Westside Wastewater Treatment Plant:
Average Annual Flow - MGD5.0
Hydraulic Peak Capacity - MGD45
Permitted Average12.5
Eastside CSO Plant
Peak Treatment Capacity - MGD20
Bremerton's sewage system provides sewer service to approximately 37,000 people. The wastewater collection system serves
City residents as well as nearby areas in unincorporated Kitsap County.
Stormwater Utility Services 2018
Residential Accounts10,466
Commercial Accounts1,034
Miles of Mains148
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 / 128
Table 14
Miscellaneous Statistics
City Streets
Street Miles144
State Highway Miles19
Miles of Sidewalks127
Signalized Traffic Intersections39
Street Lights:
City Owned948
Leased from Puget Sound Energy1,738
Signs, Crosswalks & Lane Markings7,700
Forestry
Water and Utlity Forest Lands (acres)8,300
Miles of Forest Roads60
Timber Harvested (board feet)1.19 MBF
Biosolids applied (cubic yards)2,936
Reforestation (seedlings planted)32,050
Public Schools
Bremerton is served primarily by Bremerton School District #100. A small percentage of children attend Central Kitsap
School District #401.
Elementary6
Middle School1
Junior High1
High School1
Vocational School1
Colleges
Olympic CollegeNavy College
Naval Kitsap Bremerton
1600 Chester Ave., Bremerton
360 792-60502255 Cole Ave. Bldg. 853, Bremerton
360 476-4282 Ext. 9176
1 800 259-6718
Hospitals
Harrison Medical Center Naval Hospital Bremerton
2520 Cherry Ave., Bremerton1 Boone Road, Bremerton
360 377-39111 800 422-1383
City of Bremerton / 129
Table 14
Miscellaneous Statistics
Local Transportation
Washington State Ferries
Seattle Bremerton Route - Total Annual Rides 20182,893,235
Kitsap Transit 2018
Foot Ferry
Annual Rides - Port Orchard & Annapolis554,188
Buses (County Wide)
Annual Bus Rides (Routed Service)2,152,638
Kitsap Access & VanLink296,602
Worker/Driver Service357,573
Fast Ferry299,471
2018 Total Bus Ridership3,106,284
Vanpool and Other
Vanpool Service168,271
2018 Total Vanpool Ridership168,271
Guaranteed Ride Home
Guaranteed Ride Home
2018 Total Guaranteed Ride Home131
Total Kitsap Transit Ridership3,828,874
Sources: Washington State Ferries
Kitsap Transit