HomeMy WebLinkAboutFY14 Comprehensive Annual Financial Report, City of BozemanCITY OF BOZEMAN, MONTANA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Prepared by the City of Bozeman Finance Department
CITY OF BOZEMAN, MONTANA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2014
TABLE OF CONTENTS
I.INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................................................................1 to 9
Governmental Financial Officers’ Association Certificate of Achievement ..................................................................................................10
Organizational Chart .......................................................................................................................................................................................11
City Elected Officials and Officers ......................................................................................................................................................12 and 13
II.FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT ...........................................................................................................................................14 and 15
A.MANAGEMENT’S DISCUSSION AND ANALYSIS ........................................................................................................................16 to 29
B.BASIC FINANCIAL STATEMENTS
Government Wide Financial Statements
Statement of Net Assets ............................................................................................................................................................................30
Statement of Activities ..............................................................................................................................................................................31
Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet –Governmental Funds .....................................................................................................................................32 and 33
Reconciliation of the Balance Sheet to the Statement of Net Assets –Governmental Funds ............................................................34
Statement of Revenues, Expenditures, and Changes in Fund Balances –Governmental Funds ........................................................35
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to
The Statement of Activities –Governmental Funds ...........................................................................................................................36
Proprietary Fund Financial Statements
Statement of Net Position –Proprietary Funds ........................................................................................................................37 and 38
Statement of Revenues, Expenses, and Changes in Fund Net Position–Proprietary Funds ..............................................................39
Statement of Cash Flows –Proprietary Funds .........................................................................................................................40 and 41
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position –Fiduciary Funds .....................................................................................................................42
Notes to Financial Statements ................................................................................................................................................................43 to 88
CITY OF BOZEMAN, MONTANA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2014
TABLE OF CONTENTS (CONTINUED)
C.REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT DISCUSSION AND ANALYSIS
Schedule of Funding Progress –Other Post-Employment Health Care Benefits ...........................................................................................89
Statements of Revenues, Expenditures, and Changes in Fund Balances -Budget to Actual –General and Special Revenue Major Funds
General Fund .............................................................................................................................................................................................90
Street and Fire Impact Fees Fund..............................................................................................................................................................91
Street Maintenance Special Revenue Fund ...............................................................................................................................................92
Building Inspection Special Revenue Fund ..............................................................................................................................................93
Notes to Required Supplementary Information Other Than Management Discussion and Analys is .......................................................94
D.SUPPLEMENTAL INFORMATION
Non-Major Governmental Funds
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet –Non-Major Governmental Funds ......................................................................................95 to 108
Combining Statement of Revenue, Expenditures, and Changes in Fund Balance –Nonmajor Governmental Funds .109 to 115
Budget-to-Actual Statements –Other Major Funds
Statements of Revenues, Expenditures, and Changes in Fund Balances -Budget to Actual -Other Major Funds
SID Sinking Fund .....................................................................................................................................................................116
Note to Budget-to-Actual Statements –Other Major Funds ....................................................................................................117
Budget-to-Actual Statements-Nonmajor Funds
Statements of Revenues, Expenditures, and Changes in Fund Balances -Budget to Actual –Nonmajor Governmental Funds
Non-Major Governmental Funds ..................................................................................................................................118 to 132
Non-Major Proprietary Funds
Combining and Individual Fund Statements and Schedules
Combining Statements of Net Position–Non-Major Proprietary Funds ....................................................................133 and 134
Combining Statements of Revenue, Expenditures, and Changes in Fund Net Position–Non-Major Proprietary Funds ........135
Combining Statements of Cash Flows -Non-Major Proprietary Funds .....................................................................136 and 137
CITY OF BOZEMAN, MONTANA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2014
TABLE OF CONTENTS (CONTINUED)
Internal Service Funds Statements
Combining Statements of Net Position –Internal Service Funds ...........................................................................................................138
Combining Statements of Revenues, Expenses, and Changes in Fund Net Position–Internal Service Funds ......................................139
Combining Statements of Cash Flows .......................................................................................................................................140 and 141
Agency Funds
Combining Statements of Fiduciary Net Position...................................................................................................................................142
Combining Schedules of Changes in Assets and Liabilities –Agency Funds ...........................................................................143 and 144
III.STATISTICAL SECTION
Financial Trends Section
Net Assets by Component .......................................................................................................................................................................145
Changes in Net Position ..........................................................................................................................................................................146
Past Ten Fiscal Years ..............................................................................................................................................................................147
Fund Balance,Governmental Funds .......................................................................................................................................................148
Changes in Fund Balances, Governmental Funds...................................................................................................................................149
Revenue Capacity Section
Assessed value of Taxable Property .......................................................................................................................................................150
City Taxable Market and Taxable Values ...............................................................................................................................................151
Tax Increment District Taxable Valuation Detail ...................................................................................................................................152
Downtown Business Improvement District and Comparison to City Taxable Value ............................................................................153
Property Tax Levies in the Downton Bozeman Improvement District...................................................................................................154
Direct and Overlapping Property Tax Rates ...........................................................................................................................................155
Principal Property Tax Payers.................................................................................................................................................................156
Principal Property Tax Payers in Downtown Bozeman Improvement District ......................................................................................157
Property Tax Levies and Collections ......................................................................................................................................................158
Water Sold by Type of Customer............................................................................................................................................................159
Water and Sewer Rates ...........................................................................................................................................................................160
CITY OF BOZEMAN, MONTANA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
JUNE 30, 2014
TABLE OF CONTENTS (CONTINUED)
Debt Capacity Section
Ratios of Outstanding Debt by Type .......................................................................................................................................................161
Ratios of General Bonded Debt Outstanding ..........................................................................................................................................162
Direct and Overlapping General Bonded Debt Outstanding...................................................................................................................163
Legal Debt Margin Information ..............................................................................................................................................................164
Pledged Revenue Coverage.....................................................................................................................................................................165
Debt Service Requirement ......................................................................................................................................................................166
Summary of Outstanding SID’s ..............................................................................................................................................................167
Revolving Fund Balance .........................................................................................................................................................................168
Special Improvement District Assessment Billing and Collections .......................................................................................................169
Demographics and Economic Section
Demographic and Economic Statistics....................................................................................................................................................170
Principal Employers ................................................................................................................................................................................171
Operating Section
Full-time Equivalent City Government Employees by Function/Program .............................................................................................172
Operating Indicators by Function/Program .............................................................................................................................................173
Capital Assets Statistics by Function/Program..............................................................................................................................................174
IV.REPORTS OF INDEPENDENT PUBLIC ACCOUNTANTS AND SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AS
REQUIRED BY OMB CIRCULAR A-133
Schedule of Expenditures of Awards ............................................................................................................................................................175
Notes to Schedule of Expenditures of Federal Awards ................................................................................................................................176
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters
Based On an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ................................................................................................................................................177 and 178
Independent Auditor’s Report on Compliance with Requirements Applicable to
Each Major Program and Internal Control over Compliance in Accordance with
OMB Circular A-133 .................................................................................................................................................................179 and 180
Schedule of Findings and Questioned Costs ......................................................................................................................................181 to 184
PART I
INTRODUCTORY SECTION
1
CITY OF BOZEMAN, MONTANA
December 22, 2014
To the Citizens of the
City of Bozeman, Montana
The Comprehensive Annual Financial Report of the CITY OF BOZEMAN, MONTANA for the fiscal year ended June 30, 2014 is hereby submitted.
Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclo sures, rests with the City. To the best
of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financi al position
and results of operations of the various funds of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial
activities have been included.
The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of 1984 and the Office of Management and
Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Information related to the single audit, including the Schedule of
Expenditures of Federal Awards and the Auditor’s Reports on Basic Financial Statements and Supplementary Schedule of Expenditures of Federal Awards,
Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards, and Compliance with Requirements Applicable to Each Major Pr ogram and Internal Control over Compliance in Accordance
with OMB Circular A-133, are included in the single audit section of this report.
Management’s Discussion and Analysis (MD&A) is a narrative introduction, overview and analysis written to accompany the basic financial statements and
should be read in conjunction with the transmittal letter.
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CITY OF BOZEMAN, MONTANA
CITY OF BOZEMAN PROFILE
The City of Bozeman was incorporated in April of 1883 with a city council form of government, and later in January 1922 transitioned to its current city
manager/city commission form of government. Bozeman encompasses an area over 18 square miles and is located on the eastern slope of the Rocky Mountains.
The 2012 census put Bozeman's population at 38,695 which is a total increase of 37.90% from 2000 to 2012 and making it the fourth largest city in the state.
Bozeman is at the county seat of Gallatin County and is the home to Montana State University –Bozeman, and the fighting Bobcats.
The government provides a full range of services. These services include police and fire protection; sanitation services; water, waste water & storm water
utilities; the construction and maintenance of streets and infrastructure; recreational activities; cultural events; planning and zoning; and general administrative
services. The City, as a primary government, is supported or works closely with certain entities to provide these services to the citizens of the City of Bozeman.
Of these entities, Bozeman Public Library Foundation, Inc. is considered a component unit subject to the requirements for inclusion as a discretely presented
component unit. The City Planning Board is presented as a blended component unit. The Bozeman Public Library Board of Trustees, Senior Advisory Council
and the Parking Commission are excluded from presentation in these financial statements, since their relationship with the City is strictly advisory in nature at
this time.
BUDGET DEVELOPMENT PROCESS
The City of Bozeman budget serves several purposes. For the citizens of the City of Bozeman, it presents a picture of the city government operations and
intentions for the year. For the City Commission, it serves as a policy tool and as an expression of goals and objectives. For City Management, it is used as an
operating guide and a control mechanism.
The City Manager’s Recommended Budget is created and submitted to the City Commission. Public work sessions are then held by the Commissioners at
which time the City Manager, Administrative Services Director, and department staff explain the budget recommendations and underlying justification for the
requests. The Commission also reviews departmental requests which could not be funded, as an indication of unmet needs. During (or following) the work
sessions, the Commissioners may make adjustments to the proposed budget. Following any adjustments to the City Manager's budget recommendation, a
tentative appropriation ordinance is prepared and a public hearing is held. The Commission may again make adjustments to the budget following the public
hearing, after which time, the Commission passes the appropriation ordinance in final form.
Fiscal Year 14 marked the second year in a row, where the final budget was adopted before start of the year. It was completed in late April and presented in
early May with an adoption of a final budget before June 30th. This revised budget calendar was developed in Fiscal Year 13 in an effort to improve
understandability of our financial plans and to improve staff and commission efficiency. The overall goal of the City’s financial policies is to establish and
maintain effective management of the City’s financial resources.
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CITY OF BOZEMAN, MONTANA
ECONOMIC CONDITION AND OUTLOOK
The Bureau of Business and Economic Research (BBER) is the research and public service branch of the
University of Montana’s School of Business Administration. The Bureau is regularly involved in a wide variety
of activities, including economic analysis and forecasting. Excerpts from the Bureau’s forecasts contained in the
spring 2014 issue of the Montana Business Quarterly relating to Gallatin County and City of Bozeman are stated
below.
The economic growth figures for Gallatin County received a one-time boost due to the sale of RightNow
Technologies to Oracle. Because of the way in which the U.S. Bureau of Labor Statistics counts things, the stock
options of RightNow employees were included in reported wages during 2011 and 2012. The negative growth in
2013 is simply the arithmetic consequence of the large one-time increases in earlier years. Even after correcting
for this event, Gallatin County is tied with Flathead County and trails only Bakken-fueled Yellowstone County in
terms of overall economic growth since the recession trough in 2009.
Gallatin County’s construction industry was particularly hit hard and has recently only shown a hint of
recovery. The recent growth has been due to stability in the traditional basic industries such as Montana State
University, nonresident travel, and high-tech manufacturing combined with robust expansion in Bozeman’s role
as a regional trade and service center.
Montana State University is the largest basic industry in Gallatin County, accounting for about 32 percent of
total basic earnings. Growth in contract research rather than state funding has maintained the contribution of
MSU despite wage freezes and other recession-related impacts on government. Bozeman’s high-tech sector
includes firms in manufacturing and professional services (software), and accounts for another 32 percent of
basic earnings.
The forecasts call for increases to be 4 percent or greater between 2014 and 2017. Gallatin County is projected
to be the fastest growing urban area in the state. The end of the wage freeze at Montana State University,
continued moderate recovery in construction, increases in nonresident travel as Americans once again take
vacations, and strength in the high-tech industries will fuel the economic growth.
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CITY OF BOZEMAN, MONTANA
FOR THE YEAR
Significant Changes During Fiscal Year 2014:
Increased Building Permit Activities:The Building Inspection division has seen strong permit issuance over the past 12 months. While never completely
stopping, building construction significantly slowed during the recession. For fiscal year 2014, the total value of Building Permits for New Construction is
approximately 130% of the previous year. Remodel and addition activity also continues to be strong. As vacant, buildable lots are consumed, we expect to see
increased planning and subdivision activity. The City added building inspection staff and outside contracts mid-year to keep up with workload demands.
Increased Citizen Participation with Online City Hall Budget Forum:Online City Hall is a new interactive tool for citizens to provide feedback to
the City on a variety of topics. The forum was installed in Fiscal Year 2014 as a way to utilize social media features to “welcome citizen involvement”,
furthering our core value of Teamwork.
MMIA Declaratory Action:In December 2009, the Montana Supreme Court ruled against the City in our appeal of Delaney v. City of Bozeman. At issue
was the City’s purchase of the Mandeville Farm property in 2003. Delaney was awarded $3 Million. The City and Montana Municipal Interlocal Authority
(MMIA) sought judicial determination on the amounts owed by each party. In April 2012, a District Court in Helena determined that the City owed the full
amount. The City filed an appeal with the Montana Supreme Court. Prior to a determination by the Court, the City and MMIA settled the case. Under the terms
of the settlement, the City is to pay the MMIA a total of $2 Million over a 3 year period. The second of three payments was made in Fiscal Year 14.
Refinance of Water & Wastewater System Loans:The City has outstanding loans with the Montana Department of Natural Resources and Conservation
(DNRC) to finance the construction of the Water Plant and the Water Reclamation Facility. In August 2013, the DNRC approved, and the City adopted, an
interest rate reduction from 3.75% to 3.00%. The decrease will save the Water Fund and average of $83,535 per year, totaling $1,670,694 over the remaining
life of the loan. The decrease will save the Wastewater Fund an average of $99,047 per year, totaling $1,782,853 over the remaining life of the loan.
Energy Saving Projects:There was an in-depth audit of City buildings and facilities for potential energy savings. The firm McKinstry was selected as
the energy performance contractor for this assessment.They have very recently delivered a preliminary report that outlines a number of energy-saving projects
and identifies estimated “payback” periods, where energy savings will cover the costs of the improvements. They also expect to issue another report in the fall
of 2014 that will add projects to the analysis that couldn’t be considered due to time constraints in the spring.
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CITY OF BOZEMAN, MONTANA
Beall Park Recreation Center
FOR THE YEAR (CONTINUED)
Gallatin College Received Voter Support:On November 4th, 2013, Gallatin County voters passed a modest property tax increase to support and expand
job-training and two-year education at Gallatin College. The 1.5 mill levy will cost a median home owner $4.15/year, raising $370,000/year to support the
College. This levy also fulfills a requirement set by the Montana Board of Regents in 2010 when the board approved putting the MSU-Bozeman campus in
charge of the two-year program. As result of voter approval, the City will no longer budget 1.5 mills out of its all purpose levy/general fund.
FOR THE FUTURE
Family Aquatics Center:Previous studies have identified the limited life-span
of Bogert Pool, the City’s only public outdoor swimming pool. There is money set
aside for the design of a replacement facility for Bogert Pool so that a voter-approved
bond measure can be considered in the future.
Storm Water Utility:In 2012 the City created its Storm Water Utility. During the
last two years, the City has been working to identify assessment methodologies,
infrastructure locations and conditions, and develop a funding plan for future storm
water improvements. It has been decided that citizens will be assessed based on an
“impervious surface” method rather than the current “meter-sized” method. The
impervious surface method of assessment is expected to begin in the second half of
Fiscal Year 2015.
Transportation System:The City’s network of streets, sidewalks, and intersections continues to be a significant concern. In the developing areas of the
City, expansion and completion of the system is a hurdle; in the older areas of town, reconstruction and replacement are our pressing tasks. The City plans to
develop a sustainable transportation management and funding model.
Voter Approval of the Trails, Open Space, and Parks (TOP) Bond $15 Million:In November 2012, City voters approved the issuance of $15 Million
in General Obligation Bonds to fund trail, open space, and park (TOP) projects. In December 2013, the City issued $9.9 Million of those bonds. Since that time,
nearly $14 Million has been allocated to specific projects through a TOP application process. Staff will be working over the coming months to complete land
acquisition and project construction. The City anticipates the issuance of the remaining $5.1 Million in December of 2014.
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CITY OF BOZEMAN, MONTANA
FOR THE FUTURE
Police & Municipal Court Facility:In 2014, the City swapped land with the Montana Department of Transportation for an 8-acre parcel of land on Rouse
to build a new police and municipal court facility. Design of the facility was completed in fiscal year 2014. In November 2014, the City will be asking voters
to approve approximately $22 Million in General Obligation bonds plus an operations levy to build the facility and operate into the future.
Other
Design and construction of a landfill soil gas remediation system.
Pursue building a Bozeman convention center.
Develop a plan for the City to get broadband for growing local businesses.
Water Pipe Replacement Program -approximately $1M every year for the construction of necessary water system replacement work.
Waste Water Pipe Replacement Program –approximately $1M every year for the construction of necessary sewer system replacement work.
Intersection Control -approximately $750,000 every year for improved traffic flow and safety at various intersections.
Widen Cottonwood Road from West Babcock to Oak Street.
Continue implementation of financial plans and asset management systems to properly maintain and replace the City’s infrastructure and facilities.
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CITY OF BOZEMAN, MONTANA
FINANCIAL POLICIES
The overall goal of the City's financial policies is to establish and maintain effective management of the city's financial resources. Formal policy statements and
major objectives provide the foundation for achieving this goal.
The City avoids budgetary practices that balance current expenditures at the expense of meeting future years' expenses and seeks to maintain a diversified and
stable revenue base that is estimated in a realistic and conservative manner. For one-time revenues, highest priority is given to the funding of capital assets or
other non-recurring expenditures.
On-going expenditures are limited to levels which can be supported by current revenues. Construction projects and capital purchases of $10,000 or more are
included in the Capital Improvement Plan (CIP). Minor capital outlays of less than $10,000 are included in the regular operating budget.
Spending of resources happen in the following order (they are categorized according to Generally Accepted Accounting Principles (GAAP) for state and local
governments, with the following general definitions):
Restricted --Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government) through
constitutional provisions or by enabling legislation.
Committed --Amounts constrained to specific purposes by the City Commission; to be reported as committed, amounts cannot be used for any other
purpose unless the City Commission takes action to remove or change the constraint.
Assigned --Amounts the City intends to use for a specific purpose; intent can be expressed by the Commission or by an official or body to which the
Commission delegates the authority. The City Commission delegates this authority to the City Manager.
Unassigned --Amounts that are available for any purpose; these amounts are reported only in the General Fund.
Long-term debt is limited to capital improvements which cannot be financed from current revenues and repays borrowed funds within a period that does not
exceed the expected useful life of the project. The City does not use long-term debt for financing current operations and adheres to a policy of full public
disclosure with regard to the issuance of debt.
A minimum level of general fund reserve equal to 16.67% of annual revenues is maintained. This reserve is committed to be used for: cash flow purposes,
accrued employee payroll benefits which are not shown as a liability, unanticipated equipment acquisition and replacement, and to enable the city to meet
unexpected expenditure demands or revenue shortfalls.
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CITY OF BOZEMAN, MONTANA
FINANCIAL POLICIES (CONTINUED)
The City manages and accounts for its financial activity in accordance with Generally Accepted Accounting Principles (GAAP), as set forth by the
Governmental Accounting Standards Board (GASB).
The city maintains its accounting records for general governmental operations on a modified accrual basis, with revenues recorded when available and
measurable, and expenditures recorded when services or goods are received and liabilities incurred. Accounting records for proprietary fund types and similar
trust funds are maintained on an accrual basis, with all revenues recorded when earned and expenses recorded at the time liabilities are incurred, without regard
to receipt or payment of cash.
Internal Controls
Internal accounting controls are designed to provide reasonable (but not absolute) assurance of the safeguarding of assets against loss, theft or misuse. They are
also designed to aid in the reliability of financial records. The concept of reasonable assurance recognizes that the cost of a control should not exceed the
benefits likely to be derived and that the evaluation of costs and benefits requires estimates and judgments by management.
In developing and evaluating the City’s accounting system, great consideration is given to the adequacy of internal accounting controls. We believe that the
City of Bozeman’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.
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CITY OF BOZEMAN, MONTANA
OTHER INFORMATION
Independent Audit
The State of Montana requires a biannual audit of the books of accounts, financial records, and transactions of all administrative departments of the City by
independent certified accountants selected by the City Commission. It is the belief of the City Commission and Executive staff that an annual audit assures a
higher level of financial management and fiscal responsibility. This policy, along with the legal requirements, has been complied with and the auditors' opinion
of Anderson, ZurMuehlen & Co. P.C., has been included in this report.
Awards
The Government Finance Officers' Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bozeman
for its comprehensive annual financial report for the fiscal year ended June 30, 2013. This was the 30th consecutive year that the City has received this
prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized comprehensive annual
financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to meet the
Certificate of Achievement Program's requirement and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgements
The preparation of the Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated service of the entire staff of the Finance
Department, with special appreciation extended to Assistant Controller Lieveka White. Each member of the department has our sincere appreciation for the
contributions made in the preparation of this report.
In closing, without the leadership and support of the governing body of the City, preparation of this report would not have been possible.
Sincerely,
Chris Kukulski Anna Rosenberry, CPA Brian LaMeres, CPA
City Manager Director of Finance City Controller
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CITY OF BOZEMAN, MONTANA
GOVERNMENT FINANCE OFFICERS’ ASSOCIATION CERTIFICATE
11
CITY OF BOZEMAN, MONTANA
ORGANIZATIONAL CHART
CITY CLERK
Stacy Ulmen
CITY COMMISSION
PARKING
COMMISSION
MUNICIPAL JUDGES
Karl Seel &
Colleen Herrington
LIBRARY
BOARD OF
TRUSTEES
LIBRARY
DIRECTOR
Susan Gregory
CITY MANAGER
Chris Kukulski
ECONOMIC
DEVELOPMENT
Brit Fontenot
PARKING MANAGER
Scott Lee
ASSISTANT CITY
MANAGER
Chuck Winn
FACILITIES
James Goehrung
FIRE
DEPARTMENT
Jason Shrauger
PUBLIC SERVICE
Craig Woolard
PARKS &
RECREATION
Mitch Overton
PLANNING &
COMMUNITY
DEVELOPMENT
Wendy Thomas
LEGAL
Greg Sullivan
ADMINISTRATIVE
SERVICES
Anna Rosenberry
POLICE
DEPARTMENT
Ron Price
CITIZENS OF BOZEMAN
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CITY OF BOZEMAN, MONTANA
CITY ELECTED OFFICIALS AND OFFICERS
ELECTED OFFICIALS
Legislative
Jeffrey Kruass Mayor
Carson Taylor Deputy Mayor
Cynthia Andrus Commissioner
Christopher Mehl Commissioner
I-Ho Pomeroy Commissioner
Judicial
Karl Seel
Colleen Herrington
Municipal Judge
Municipal Judge
OFFICERS
Executive
Chris Kukulski
Chuck Winn
Stacy Ulmen
City Manager
Assistant City Manager
City Clerk
Department of Law
Gregory Sullivan City Attorney
Timothy A. Cooper Assistant City Attorney
Cory Allen
Ryan McCarty
Kyla Murray
Anna Saverud
Karen Stambaugh
Assistant City Attorney
Assistant City Attorney
Assistant City Attorney
Assistant City Attorney
Assistant City Attorney
Department of Administrative Services
Anna Rosenberry, CPA Director of Administrative Services
Brian LaMeres, CPA Controller
Laurae Clark Treasurer
Scott McMahan Information Technology Manager
Bethany Jorgenson Human Resources Manager
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CITY OF BOZEMAN, MONTANA
CITY ELECTED OFFICIALS AND OFFICERS (CONTINUED)
OFFICERS (CONTINUED)
Department of Economic Development
Brit Fontenot
Department of Public Safety
Director of Economic Development
Ronald Price Chief of Police
Richard McLane Deputy Chief of Police
Jason Shrauger Fire Chief
Greg Megaard Deputy Fire Chief of Operations
Department of Public Service
Craig Woolard Director of Public Service
Rick Hixson City Engineer
John Alston Superintendent of Water and Waste Water Operations
John VanDelinder Superintendent of Street Operations
Kevin Handelin Superintendent of Sanitation Operations
Rick Moroney Superintendent of Water Treatment Plant
Herb Bartle Superintendent of Water Reclamation Facility
James Goehrung Superintendent of Facilities
Department of Public Welfare
Mitch Overton
Thomas White
Jamie Saitta
Vacant
Director of Parks & Recreation
Superintendent of Parks & Cemetery
Recreation Program Manager
Aquatics Manager
Susan Gregory Director of Bozeman Public Library
Department of Planning and Community Development
Wendy Thomas
Chris Saunders
Brian Krueger
Director of Planning and Community Development
Community Development Manager
Development Review Manager
PART II
FINANCIAL SECTION
14
1 0 1 9 E M A I N S T
• S U I T E 2 0 1
• B O Z E M A N , M O N T A N A 5 9 7 1 5
T E L : 4 0 6 .5 5 6 .6 1 6 0
• F A X :
4 0 6 .5 8 6 .8 7 1 9
• W E B : w w w .a z w o r l d .c o m
ANDERSON ZURMUEHLEN & CO., P.C. • CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
MEMBER: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • MSI GLOBAL ALLIANCE INDEPENDENT MEMBER FIRM
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor, City Commissioners, and City Manager of the
City of Bozeman, Montana
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 City of Bozeman, Montana (the City), as of and for the year ended June 30, 2014, and related notes to the financial
statements which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial 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 co ntained 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 missta tement.
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 relevant to the entity’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
entity’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.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Bozeman, Montana, as of June 30, 2014,
and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
15
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison
information –General Fund and Special Revenue Major Funds, and Schedule of Funding Progress -Other Postemployment Benefits (OPEB) 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise City of Bozeman’s basic financial
statements. The introductory section and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The schedule of expenditures of federal awards and other supplemental information, as listed in the table of contents, are presented for purposes
of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and is also not a required part of the basic financial statements.
The schedule of expenditures of federal awards and other supplemental information, as listed in the table of contents,are the responsibility of management
and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 schedule of expenditures of federal awards and other supplemental information, as listed in the table of contents, are fairly stated in all
material respects in relation to the basic financial statements as a whole.
The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 22, 2014, 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.
Bozeman, Montana
December 22, 2014
ANDERSON ZURMUEHLEN & CO., P.C.
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
A. MANAGEMENT’S DISCUSSION AND ANALYSIS
16
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2014
Our discussion and analysis of the City of Bozeman’s financial performance provides an overview of the City’s financial activities for the fiscal year ended
June 30, 2014. Please read it in conjunction with the transmittal letter on page 1 and the City’s financial statements, which begin on page 34.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities (on pages 34 and 35) provide
information about the activities of the City as a whole and present a longer-term view of the City’s finances. Fund financial statements start on page 36. For
governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial
statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant
funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those
outside of the government.
Reporting the City as a Whole
The Statement of Net Position and the Statement of Activities
Our analysis of the City as a whole begins on page 23. One of the most important questions asked about the City’s finances is, “Is the City as a whole better off
or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and
about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting,which is
similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when
cash is received or paid.
These two statements report the City’s net position and changes in net position. You can think of the City’s net position, the difference between assets, what
the citizens own, and liabilities, what the citizens owe, as one way to measure the City’s financial health, or financial position. Over time, increases or
decreases in the City’s net position are one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial
factors, however, such as changes in the City’s property tax base, income tax base, and the condition of the City’s capital assets (roads, buildings, water and
sewer lines) to assess the overall health of the City.
In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities:
Governmental activities—Most of the City’s basic services are reported here, including police, fire, public works, parks, and general administration.
Property taxes, state shared revenues, court fines, and recreation fees finance most of these activities.
Business-type activities—The City charges a fee to customers to help it cover all or most of the cost of certain services it provides. The City’s water,
waste water, storm water, solid waste, and parking systems are reported here.
17
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
Reporting the City’s Most Significant Funds
Fund Financial Statements
Our analysis of the City’s funds begins on page 28. The fund financial statements begin on page 36 and provide detailed information about the most significant
funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, the City Commission establishes
many other funds to help it control and manage money for particular purposes (like Street Maintenance District Funds) or to show that it is meeting legal
responsibilities for using certain taxes, grants, and other money (like grants received from the Environmental Protection Agency). The City’s two kinds of
funds, governmental and proprietary, use different accounting approaches.
Governmental funds--Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and
the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which
measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the
City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer
financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship (or differences) between governmental
activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in reconciliation on pages 38 and 40 of the fund
financial statements.
Proprietary funds--When the City charges customers for the services it provides, whether to outside customers or to other units of the City, these services are
generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the
Statement of Activities. In fact, the City’s enterprise funds (a component of the proprietary funds) are the same as the business-type activities we report in the
government-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds. We use internal service funds (the
other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities, such as the Vehicle
Maintenance Fund and Health Insurance Fund. Internal service fund activity is reported as governmental activity in the government-wide statements since this
activity, the financing of goods and services for other funds of the government, is more governmental than business-type in nature.
The City as Trustee
Reporting the City’s Fiduciary Responsibilities
The City is the trustee, or fiduciary, for other funds, including the Municipal Court Fund, the Montana Arts Council Fund (Montana Ballet, Bozeman
Symphony Orchestra, and Big Sky Association for the Arts), and the CMC Bozeman Asbestos Site Remediation Fund. It is also responsible for other assets
that, because of a trust arrangement, can be used only for the trust beneficiaries. The guidelines for the administration of these funds are contained in applicable
financial agreements and/or City ordinances. These documents contain the rules governing the receipt, expenditure, and management of the City’s fiduciary
funds. All of the City’s fiduciary activities are reported in the Statement of Fiduciary Net Position on page 46 and in the Combining Statement of Changes in
Assets and Liabilities-Agency Funds on page 143. As the statements reflect, the financial activity during the year for these funds is nominal. We exclude these
activities from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that
the assets reported in these funds are used for their intended purposes.
18
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
THE CITY AS A WHOLE
The City’s combined net position increased by $13.7 million this year as compared to an $11.3 million increase last year.The primary reason for this is that the
increase in revenues, driven mainly by Charges for Services and Restricted Capital Grants & Contributions (infrastructure provided by private developers) was
simply greater than the increase in expenses. The specific contributing factors are outlined in the following discussion. Our analysis focuses on the net position
(Table 1) and changes in net position (Table 2) of the City’s governmental and business-type activities.
The net position of the City’s governmental activities increased by 7.2% ($137 million this year compared to $127.8 million last year). Unrestricted net
position for governmental activities, the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants,
enabling legislation or other legal requirements increased to $12.1 million. The net position of the City’s business-type activities increased by 2.1% ($217.6
million compared to $213.1 million in 2013). This net position cannot be used to make up for deficits reported by governmental activities in the event any such
deficits were reported. The City generally can only use the net position of business-type activities to finance the continuing operations of the water, waste
water, solid waste, storm water, and parking operations.
2014 2013 2014 2013 2014 2013
Cur rent and Ot her Assets 56.2$ 46.0$ 23.1$ 22.3$ 79.4$ 68.3$
Capital Assets 108.3 99.7 244.7 235.6 352.9 335.3
Total Assets 164.5$ 145.7$ 267.8$ 257.9$ 432.3$ 403.6$
Long-term Debt Outstandin g (20.3) (12.3) (44.9) (27.2) (65.2) (39.5)
Ot her Liabilit ies (7.2) (5.5) (5.3) (7.7) (12.5) (13.2)
Total Liabilit ies (27.5)$ (17.8)$ (50.2)$ (34.9)$ (77.7)$ (52.7)$
Net P osit ion:
Net investment in capit al assets 89.3$ 89.1$ 196.3$ 199.4$ 285.6$ 288.5
Rest rict ed for parking capit al p roject s - - 0.3 - 0.3 -
Rest rict ed for debt service 4.0 3.8 - 2.8 4.0 6.6
Rest rict ed for capit al project s 9.4 - - 0.3 9.4 0.3
Rest rict ed for general government 1.0 1.0 1.0 1.0
Rest rict ed for P ublic Safet y 2.3 2.0 - - 2.3 2.0
Rest rict ed for P ublic Service 13.2 13.6 - - 13.2 13.6
Rest rict ed for P ublic W elfare 4.5 5.6 - - 4.5 5.6
Nonspendable 1.3 1.2 1.3 1.2
Unrestricted 12.1 11.5 21.0 10.6 33.1 22.1
Total Net P osit ion 137.0$ 127.8$ 217.6$ 213.1$ 354.6$ 340.9$
Acti vi ti es Acti vi ti es Pri mary Government
Ta bl e 1
Ne t Position
(i n Mi llions)
Governmental Business-type To tal
19
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
The City’s total revenues (excluding special items) increased by 22.7% ($13.5 million), driven primarily by a $9.7 million increase in Restricted Capital Grants
and Contributions, which included infrastructure provided by private developers. The total cost of all programs and services increased by $11.5 million, or
23.8%. The largest contributors to this increase in expenses were Solid Waste ($4.5 million) and Waste Water ($2.9 million) followed by Public
Service/Streets ($2.1 million). Our analysis below separately considers the operations of governmental and business-type activities.
2014 2013 2014 2013 2014 2013
Re ve nues
Program revenues:
Ch arges for Services 14.0$ 13.4$ 22.3$ 21.3$ 36.3$ 34.7$
Rest rict ed Operat in g Gr ants & Contribut io ns 0.5 0.4 0.0 - 0.5 0.4
Rest rict ed Capit al Grant s & Contribut io ns 4.8 0.8 5.9 0.2 10.7 1.0
Ge neral Revenues
Propert y T axes 17.6 16.4 - - 17.6 16.4
Unrestrict ed Operat in g Gr ants & Contribut ions 7.4 6.3 - 0.5 7.4 6.8
Ot her General Rev enues 0.6 0.2 - - 0.6 0.2
Total Revenues 44.8 37.5 28.2 22.0 73.0 59.5
Program Expenses
Ge neral Government 7.0 7.4 - - 7.0 7.4
Publ ic Safet y 15.3 14.3 - - 15.3 14.3
Publ ic Service 6.0 3.9 - - 6.0 3.9
Publ ic Welfare 7.4 6.5 - - 7.4 6.5
Int erest and Fiscal Fees 0.2 0.4 - - 0.2 0.4
Water - - 6.9 6.2 6.9 6.2
Wast e Wat er - - 9.0 6.1 9.0 6.1
So lid Waste - - 7.0 2.5 7.0 2.5
Non-major act iv it ies - - 1.0 0.9 1.0 0.9
Total Expenses 35.9 32.5 23.8 15.7 59.7 48.2
Excess (deficiency ) before
sp ecial it ems and t ransf ers 8.9 5.0 4.5 6.3 13.4 11.3
Sa le of Capit al Assets 0.2 - - - 0.2 -
In cre ase (de cre ase) i n net position 9.2$ 5.0$ 4.5$ 6.3$ 13.6$ 11.3$
Acti vi ties Acti vi ties Pri mary Government
Ta bl e 2
Changes i n Ne t Position
(in Mi llions)
Governmental Business-type To tal
20
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
Governmental Activities
Revenues for the year from governmental activities increased by 19.5% ($7.3 million) to $44.8 million while total expenses increased by $3.4 million to $35.9
million. This excess of revenues over expenses contributed to a $9.2 million increase in the total net position for governmental activities. While revenue from
charges for services and tax revenue did increase, the primary cause of this increase in net position was a substantial increase in Restricted Capital Grants &
Contributions. This generally includes street infrastructure constructed by private developers which becomes part of the City’s public road network and is
reported as revenue in the City’s financial statements. This and the other contributing factors listed below are primarily responsible for this year’s increase in
net position:
Charges for services increased by $.6 million, or 4.5%, from $13.4 million last year to $14 million this year. Street Impact Fees were the biggest factor here,
with revenues increasing by $357,495, or 14.4%, from $2.5 million last year to $2.8 million this year. Secondly was the increase in Street Maintenance
Assessment rates and resulting revenue increase in response to the City Commission’s policy direction to address deferred street infrastructure maintenance and
to build a reserve for curb and sidewalk replacement. Accordingly, revenue from Street Maintenance Assessments increased by $246,131, or 8.4%, from
$2,917,499 last year to $3,163,630 this year.
Property Tax collections also increased by approximately $1.2 million, or 7.3%, from $16.4 million last year to $17.6 million this year due to a 2.9% increase
this year in the mill value (from $83,226 to $85,637) and a 3.8% increase in the number of property tax mills levied (from 166.75 to 173.08). Revenues in the
North 7th Avenue Corridor Tax Increment Financing District increased by 14.8%, or $96,466, from $650,989 to $747,455. Despite the increase in property tax
revenue, this year’s tax levy was still 24 mills lower than the statutory maximum allowable tax rate.
Unrestricted Operating Grants and Contributions increased by $1.1 million, or 17.5%, from $6.3 million last year to $7.4 million this year mainly due a 7.7%
increase in State Entitlement Share revenue from $3.7 to 4 million and a 2.3% increase in the State’s share of City employee retirement from $2.18 million to
$2.23 million, in addition to a general increase in various federal and state grants.
Interest on Investments increased this year significantly by $112,000, or 46%, from $243,744 to $355,790. This increase was not due to a change in interest
rates but rather an increase in cash balances. Interest rates actually continued to decline for the 5th consecutive year, down from .82% last year to .81% this
year. However, overall cash balances for Governmental Activities increased significantly this year resulting in higher interest on investments. The largest
contributor was the TOP Trail Open Space Parks Program which issued $9.9 million in debt. As of year-end a sizeable amount still remained unspent on TOP
projects and thus was earning interest.
The cost of all governmental activities this year was $35.9 million compared to $32.5 million last year. However, as shown in the Statement of Activities on
page 35 under Net(Expense) Revenue for Total governmental activities, the amount that our taxpayers ultimately financed for these activities through City
taxes and other general revenues was only $16,715,266 because some of the cost was paid by those who directly benefited from the programs ($13,980,088) or
by other governments and organizations that subsidized certain programs with operating and capital grants and contributions ($457,354 + $4,762,416 =
$5,219,770).
Overall, the City’s revenues from governmental activities –including intergovernmental revenues and charges for services –increased this year from $37.5 to
$44.8 million. Charges for services increased by $.6 million, or 4.5%, from $13,435,013 to $13,980,088 mainly due to Street Impact Fees revenues increasing
by $357,500, or 14.5%, from $2.48 million last year to $2.84 million this year. Street Maintenance Assessments also increased by $246,131, or 8.4%. Licenses
and permits also increased by $154,538, or 9.5%, from $1,629,744 to $1,784,282 mainly due to increased Building Permit construction activity.
21
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
Overall expenses increased by $3.4 million, or 10.5%, to $35.9 million this year. The largest increase was in Public Service, where expenses increased by $2.1
million, or 54%, from $3.9 million to $6 million due mainly to higher spending on Street Maintenance. Street maintenance expenses increased by $579,229, or
29.3%, from $1.98 million last year to $2.56 million this year. Vehicle Maintenance expenses also increased by $172,000, or 18.8%, from $914,423 to
$1,086,227. Additionally, the GIS Geographic Information Systems function was moved from General Government to Public Service, which increased
expenses this year by $149,356. Expenses increased in Public Safety as well. Police, Fire and Building Inspection reported a combined $1 million increase in
expenses over last year, mostly due to $767,196 in increased personnel costs as the City continued to fill the new positions authorized and funded by the Public
Safety mill levy.
Table 3 presents the cost of each of the City’s six largest programs—Police, Fire, Public Service, Library, Parks and Recreation—as well as each program’s net
cost (total cost less revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these
functions.
Business-type Activities
Total revenues of the City’s business-type activities (see Table 2) increased by 28.2% ($28.2 million in 2014 compared to $22.0 million in 2013) while
expenses increased significantly by 51.6% ($23.8 million in 2014 compared to $15.7 million in 2013). The increase in revenues was due primarily to a large
increase in the amount of privately-constructed infrastructure that was contributed to the City by developers. This activity is recorded under Program revenues
as Restricted Operating Grants & Contributions. The significant increase in expenses was due primarily to landfill soil gas remediation costs. Specific factors
driving the other regular operating results include:
Water The City’s water system operating revenue (charges for services) have steadily increased over the past decade as a result of both an increase in
the customer base in past years and as a result of regular rate changes. The City’s customer-base growth was 398 customers, or 3.7%, for this year. This growth
rate is more closely in line with the 5% growth trend of 2005-2008. In updating the rate study for slower customer growth in recent years, decreased Water
Impact Fee collections and new estimates of Water Plant costs, the City implemented water rate increases of 4.5% each year in fiscal years 2011, 2012, and
2013 in order to fund plant construction and other scheduled operations and maintenance costs. Accordingly the City was able to revitalize its water
distribution pipe replacement program and replace or rehabilitate aging infrastructure every year instead of every two years.
2014 2013 2014 2013
Police 7.9$ 7.7$ 6.3$ 6.0$
Fire 5.6 5.6 5.0 4.7
Public Service 6.0 3.9 (1.2) (1.0)
Libr ary 1.6 1.5 0.9 0.9
Parks 1.3 1.2 1.2 1.2
Recreat io n 1.3 1.2 0.8 0.8
All Ot hers 12.3 11.3 12.9 13.3
To tals 35.9$ 32.5$ 26.0$ 26.0$
Ta bl e 3
Governmental Acti vi ti es
(i n Mi llions)
To tal C ost Ne t C ost
of Servi ce s of Servi ce s
22
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
This year the Commission voted to hold rates steady and not to implement a water rate increase in light of the other tax and rate increases imposed upon City
residents this year.
As would be expected with no rate increase, operating revenues increased only slightly by .83% from $7,806,922 last year to $7,871,386 this year due to 3.7%
increase in customer base and consumption. Water impact fee revenues increased by $179,828, or 10.8%, and cash-in-lieu of water rights revenue increased
substantially by $221,392, or 163%, from $135,814 to $357,206. Most significant was the contribution of infrastructure by private developers, which increased
dramatically from $156,123 last year to $3,137,978 this year due to an upturn in construction and development. Operating expenses increased by $448,936, or
7.5%, from $5,991,496 last year to $6,440,432 this year mainly due to increased personnel and operating costs. Major accomplishments projects completed
during the year include spending the final $6 million to replace/construct the City’s new $42 million Water Treatment Plant and spending $827,776 spent on the
afore-mentioned water distribution pipe replacement and rehabilitation program.
Wastewater Revenues in the Wastewater Fund have generally been increasing over the past 10 years and are estimated at $7.2 Million for the upcoming
year. Three years ago the City borrowed significantly to construct the new Water Reclamation Facility. This debt is being repaid by system users over the next
20 years. Accordingly, the City Commission adopted a two-year rate resolution of a 6% increase for the fiscal years 2012 and 2013 and 3% for this year and
next year. As a result of the rate increase, combined with the same volume increase experienced in the water system which accompanied the increase in
customer base of 398 customers, operating revenues for the year increased by 4.2% from $6,916,226 last year to $7,204,486 this year. Wastewater operating
expenses increased 57.3% from $5,273,875 last year to $8,294,821 this year due mainly to a $580,049, or 37.4% increase in personnel costs due to additional
staffing and due to a $1,256,304 increase in the cost estimate for the Bozeman Solvent Site based on updated information from legal counsel following the most
recent engineering update. Major projects during the year included $1.4 million spent on the collection pipe rehabilitation and replacement program, which is
now done every year instead of every other year. While this was a large outlay of cash, it had relatively little effect on the operating expense amount referred to
previously because these rehabilitation and replacement outlays are treated as capital costs, which are booked as assets and then expensed as depreciation on an
annual basis throughout the course of the assets’ service life.
Solid Waste During fiscal year 2006, the Commission discussed how the City would continue solid waste disposal services as our landfill was nearing its
capacity. In a measure to reserve the remaining cell space for residential use only, the Commission closed the landfill to tipping by commercial customers and
non-city residents and to any construction and demolition waste. The Landfill officially closed in June 2008. Since the closure the City’s solid waste collection
and disposal system revenues had been declining steadily up until this year when revenues actually increased. The Solid Waste Collection Division continues
to operate residential and commercial collection, and in FY09 the Division began to provide curb-side recycling collection services. Three years ago, the
garbage rates were increased 5%, to cover fuel costs, employee salary and benefit increases, and the assumption of costs that were once shared with the
Landfill/Disposal division. The garbage rates increased this year by 2%.
This year saw a reversal of the trend experienced in previous years where collection revenues were declining due to a slowdown in local construction activity
and corresponding demand for “roll-off” containers and associated hauling and tipping services. Operating revenues increases moderately by $184,992, or
7.4%, from $2,494,892 last year to $2,679,884 this year. Operating expenses would generally follow accordingly, however this year the increase was
additionally significant due to a $2,754,601 net increase in the estimate for Landfill Post-Closure costs. Additional information is available in Footnote 21 on
page 87. Regular operating expenses also increased by $1.7 million, or 69.5%, from $2,475,680 to $4,195,562 primarily due to additional engineering, legal,
and remediation costs associated with the Landfill Soil Gas issue described in that same footnote. As a result, total overall operating expenses increased by
$4,482,529, or 181%, from $2,475,680 last year to $6,958,209 this year.
23
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
THE CITY’S FUNDS
As the City completed the year, its governmental funds (as presented in the balance sheet on pages 36-37) reported a combined fund balance of $45,357,103.
Included in this year’s total change in fund balance is a positive General Fund balance of $6,614,294, down $713,079, or 9.7%, from $7,327,375. The
following five separate categories of fund balance are recognized, based on the extent to which the government is bound to honor constraints on the specific
purposes for which amounts can be spent: nonspendable fund balance, restricted fund balance, committed fund balance, assigned fund balance, and unassigned
fund balance. The total of the last three categories, which include only resources without a constraint on spending or for which the constraint on spending is
imposed by the government itself, is termed unrestricted fund balance. The Government Finance Officers Association’s recommends maintaining an
unrestricted general fund balance of no less than two months of regular general fund operating revenues, or $4,084,688 for this year. The City’s ending
general fund balance of $6,614,294 exceeds this recommendation by $2,529,606. However, as illustrated below, all but $193,534 of this apparent surplus is
already assigned to be used for specific purposes. The primary reasons for this year’s General Fund surplus are explained after the table below, along with an
analysis of each major fund.
The general fund balance of $6,614,294 has been assigned as shown:
FY14 ENDING G ENERAL FUND BALANCE - TOTAL:6,614,294$
ASSIGNMENTS:
1 CIP / CAPITAL CARRY-OVER BU DG ETED IN FY14 BUT NOT SPENT UNTIL FY15:
POLICE DEPT: CIP GF 050 - POLICE & COURT FA CILITY DES IGN 1,256,134$
RECREATI ON DEP T: P OOL DESIGN 386,642$
BROADBA ND MASTER PLAN 60,000$
SUSTAINABILITY PROJECTS 13,720$
FACILITIES MGMT : V ARIOUS FACILITY PROJECTS 27,500$
TOTAL CIP / CAPITAL CARRY -OVER ITEMS:1,743,996$
2 16.67% MINIMUM RESERV E LEV EL REQU IRED BY CITY CHARTER (2 MONTHS OF REVENUES):4,084,688$
3 FY15 BU DG ET: FY14 YEAR-END FUND BA LANCE NEEDED TO BALANCE FY15 BUDG ET:592,076$
TOTAL G ENERAL FUND ASSIGNMENTS:6,420,760$
UNASSIGNED G ENERAL FUND BALANCE - F Y14:193,534$
24
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
General Fund The City’s general fund balance decreased by $713,081, or 9.7%, from $7,327,375 in FY13 to $6,614,294 this year. The City had budgeted for
fund balance to actually end up being $2.5 million lower than that at $4,094,107, but not as much spending occurred during the year as expected, as indicated
by the TOTAL CIP / CAPITAL CARRY-OVER ITEMS in the preceding table. Other savings were realized through careful and cautious budgetary
management practices implemented throughout all City departments.
Property tax revenues increased noticeably in the General Fund by $765,116, or 6.5%, from $11,744,306 to $12,509,422 mainly due to a 2.9% increase in the
value of the property tax mill value (from $83,226 to $85,637) and a 5.6% increase in the number of general fund property tax mills levied (from 127.66 to
134.76). Intergovernmental revenues increased by $293,082, or 4.6%, from $6,277,896 last year to $6,570,978 this year. Most of this increase was driven a
long-waited increase in Montana State Entitlement Share, which beginning in 2001 replaced the City’s dedicated revenue sources from personal property tax
reimbursements and taxes on motor vehicles, gaming, alcohol, and banking, among others. After several stagnant years of minimal or no change, Entitlement
Share increased this year by $277,613, or 7.8%, from $3,561,160 to $3,838,772. The State of Montana’s share of City employee retirement also showed a
marginal increase of $42,899, or 2%, from $2,117,333 last year to $2,160,232 this year. This revenue amount is a non-cash book-entry only on the City’s
general accounting ledger, and is offset by an expenditure in the exact same amount (most of which is reported under Public Safety for the police and fire
employees), which results in no change to ending fund balance. Other intergovernmental revenue activity included a $41,797, or 8.2%, increase in Gallatin
County’s support of the City Library.
While overall revenues did increase, expenditures increased by a greater amount, which resulted in the $713,081 decrease in general fund balance. Most
notable was $914,001 increase in Capital Outlay expenditures. The largest expenditures were in the Police Department, where $473,000 was spent on
engineering and design of a new Police-Court Justice Center and $310,741 was spent on acquiring and outfitting new patrol vehicles. Public Safety salary
expenditures also increased as positions continued to be filled pursuant to the public safety mill levy beginning in 2009. Police personnel costs (net of State
Share of Retirement) increased by $289,398, or 5.6%, from $5,181,179 last year to $5,470,577. Fire Department personnel costs (net of State Share of
Retirement) increased by $313,434, or 8.5%, from $3,669,662 last year to $3,983,096.
Also contributing to the strength and relative stability of the General Fund balance is the utilization of conservative budgetary practices. Conservative, yet
realistic, revenue estimates, combined with departments operating within their original budgets,naturally has a favorable effect on the bottom line. Maintaining
adequate reserves has several internal and external benefits. Internally, reserves can provide for cash flow needs until property tax revenues are received,
reducing or eliminating the need for cash flow borrowing; provide funds to leverage state or federal grants; and provide for the unexpected. Externally,
reserves tend to be viewed favorably by investors, rating agencies, and local banks with which we do business, thus benefiting rating and the potential need for
lines of credit.
The City’s General Fund balance was a primary focus of a recent bond ratings when Moody’s Investor Services assigned a debt rating of Aa3 in November of
2013 and a rating of Aa3 “Positive Outlook” in November of 2014 for the two issuances of Trails, Open Space and Parks general obligation bonds. This
affirmed Moody’s rating assigned in May, 2012 of Aa3 rating to the City’s General Obligation Refunding Bonds, Series 2012, issued in the amount of $3.1
million. At the same time, Moody's also affirmed the Aa3 rating on the city's rated outstanding general obligation debt not being refunded by this issue, which
included $.6 million outstanding for the 2003 refinancing of the City’s General Obligation Transportation Bonds and the remaining bonds issued in 2003 for the
new Library. In each instance bond analysts looked favorably on the amount and trend of the General Fund balance in determining the City’s bond rating.
As shown on page 95, variances in the General Fund between the original budget and the final budget appropriations totaled $601,990, which increased the
original appropriation budget of $26,856,548 up to $27,458,538. Approximately $249,000 of this increase was for the non-cash “book entry only” expenditure
previously discussed for the Public Safety budget in order to record the additional amount of the State’s share of Police and Firefighter retirement in excess of
25
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
the $1.9 million that was initially budgeted. As stated, this entire expenditure, including the amount requiring a budget amendment, is offset/“reimbursed” by
intergovernmental revenue booked in the same amount. By design, the $1.9 million of appropriation authority was initially budgeted under General
Government and then later moved to the Public Safety budget at year-end, at which time the $249,124 additional amount necessary to cover Police and
Firefighter retirement was added as a true amendment to increase appropriation authority. This $249,124 combined with the $1.9 million shift from General
Government accounts for the $2.1 million overall increase to the Public Safety budget, and it also explains the $1.9 million reduction in the budget for General
Government. The $257,821 amendment to the Capital outlay budget is related to carryover from the prior year for design and engineering of the previously
mentioned Police-Court Justice Center.
Street Impact Fees Special Revenue Fund balance decreased by $432,276, or 4.1%, from $10,226,240 last year to $9,793,964 this year. Revenues actually
increased by $385,292, or 15.1%, from $2,549,257 to $2,934,549 due to an upturn in construction and development. Construction activity for the year which
required the payment of impact fees included $513,000 for the Sundance Apartments at Baxter Meadows, $157,608 for Country Inn & Suites, $79,693 for the
new Town Pump Gas Station & Convenience Center, and $63,144 for HRDC’s West Edge Condominiums. However, expenditures exceeded revenues for the
year by $432,276 mainly due to the City’s contribution of $3.3 million to the widening and reconstruction of College Street between 19th Avenue and Main
Street/Huffine Lane.
Street Maintenance Special Revenue Fund balance increased by $215,803, or 12.3%, from $1,761,976 last year to $1,977,779 this year due to revenues
exceeding expenditures, even though the increase in expenditures was larger than the increase in revenues. Street Assessment total revenues increased by
$258,603, or 8.7%, from $2,982,313 last year to $3,240,916 this year. Driving this was continued expansion of the City’s Street Maintenance Assessment
program to include major street reconstruction projects; the first being the reconstruction of South 8th Avenue completed this year. With the Commission’s
focused goal of addressing deferred street and curb maintenance, Street Maintenance Assessment rates were increased three years ago by 18%, with the 18%
allocated as follows: Continued increase to Curb Replacement Fund (2%); Debt Service Payments for the Reconstruction of South 8th Avenue (7%);
Establishment of a Street Reconstruction Fund (6%); and Increase in Operating Budget (3%). Continuing the City Commission’s goal of addressing deferred
street maintenance, this year rates were increased 6.9% allocated as follows: 2% continued increase to Curb Replacement Fund, resulting in a $54,000 annual
increase; 3% increase to a Street Reconstruction Reserve, resulting in a $75,000 annual increase; 1.9% increase for Other Operating needs, resulting in a
$50,000 annual increase.
Expenditures increased considerably this year by $881,521, or 40.1%, from $2,167,287 to $3,048,808. Major costs included $174,000 for the purchase of a
new flex-fuel low-emission low-decibel Caterpillar front-end loader to replace the existing 1978 loader, $123,523 to finish up the reconstruction of South 8th
Avenue, and $122,188 spent on the Micropaver Asset Management System. Additionally, debt service expenditures increased significantly this year by
$114,388, or 162%, year from $70,531 to $184,919 due mainly to new debt issued to help fund the reconstruction of South 8th Avenue.
Building Inspection Special Revenue The City’s Building Inspection division again experienced strong permit issuance over the past year. While never
completely stopping, building construction significantly slowed during the recession. However, this year the total value of Building Permits for New
Construction, upon which most permit revenue calculation are based, was 136% of the previous year. Accordingly, fund balance increased by $262,191, or
23.2%, from $1,132,359 last year to $1,394,550 this year Revenues increased by $150,695, or 11.3%, from $1,333,048 last year to $1,483,743 this year due to
this revived increase in construction and other activity requiring a Building Permit. Total expenditures increased only moderately by $15,379, or 1.3%, from
$1,206,173 last year to $1,221,552 this year. However, last year’s expenditures included $226,788 for capital purchases of technology equipment, including
hardware and software for electronic plan review, mobile field inspections, and an online permit portal. The reason this year’s expenditure level kept pace is
not due to continued capital outlays (only $27,610 this year) but instead due to a $123,847, or 17.4%, increase in personnel costs for the hiring of additional
Building Inspectors.
26
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
SID Sinking Debt Service Fund balance increased by $371,965, or 42%, from $886,462 last year to $1,258,427 this year. Revenues from Special
Improvement District (SID) assessment collections along with fund interest income and other income amounted to $1,063,253 which is $226,183, or 27%,
higher than last year’s $837,070. This marked increase was due to a payoff (paying the entire amount due instead of choosing to pay installments annually) of
the Valley Center Road/North 19th Avenue Special Improvement District (SID) by Gallatin Center this year. Total expenditures actually decreased this year by
$206,413, or 27.4%, from $754,173 to $547,760 because more SID debt was paid off by the City last year than in the current year. When enough cash has
accumulated in the SID Sinking Funds due to regularly-scheduled repayments, or due to one-time payoffs such as the Gallatin Center, the City can choose to
call/pay some of its SID bonds early to avoid future interest costs. Because of the timing of these bond calls and the minimum amounts that can be called, this
doesn’t always necessarily occur in the same year that the customer makes a payoff. So any bond call made by the City related to the Gallatin Center payoff
won’t occur until next year.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets As shown in Table 4, at the end of 2014 the City had $352.8 million invested in a broad range of capital assets, including police and fire
equipment, buildings, park facilities, roads, and water and sewer lines. This amount represents a net increase (including additions and deductions) of roughly
$17.5 million, or 5.2% over last year. Refer to capital assets disclosure Note 7 beginning on page 59 for more information.
2014 2013 2014 2013 2014 2013
Land 11.1$ 10.5$ 4.9$ 4.9$ 16.0$ 15.4$
Water Rights - - 2.1 2.1 2.1 2.1
Buildings 32.1 31.2 111.6 108.9 143.7 140.1
Ot her Struc tures and Improvements 1.2 1.2 30.8 30.8 32.0 32.0
Machin ery & Equip ment 11.2 9.7 6.8 6.7 18.0 16.4
Propert y un de r Capit al Lease 0.3 0.3 - - 0.3 0.3
Ve hicle 3.3 3.1 1.8 1.9 5.1 5.0
Infrastructure 141.8 133.0 260.8 252.6 402.6 385.6
Subt otal 201.0 189.0 418.8 407.9 619.8 596.9
Accumulat ed Depreciat io n (92.8) (89.3) (174.2) (172.2) (267.0) (261.5)
To tal C apital Assets 108.2$ 99.7$ 244.6$ 235.7$ 352.8$ 335.4$
Activities Acti vi ti es To tal s
Ta bl e 4
Capi tal As sets at Ye ar-e nd
(i n Mi llions)
Governmental Business-type
27
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
Major additions and projects underway include the following expenditures made during this year:
Debt
At year-end, the City had $58.1 million in bonds and notes outstanding versus $47.0 million last year –a notable increase of $11.2 million, or 23.8%, as shown
in Table 5. This increase was primarily due to the $9.9 million in general obligation bonds issued for the $15 million voter-approved Trails Open Space and
Parks (TOP) program. The remaining $5.1 million will be issued next year. General obligation debt, which is reported under Governmental Activities,
consists of this $9.9 million for the TOP Bonds along with $1.8 million in Series 2012 Refunding Bonds issued to refinance both the Series 2003A
Transportation Refunding bonds and the Series 2001A and Series 2003B Library Construction Project bonds. Debt reported under Business-Type Activities
includes $18.1 million of water revenue bonds and $21 million of wastewater revenue bonds issued to finance construction of the new Water Treatment and
Wastewater Reclamation Facilities.
Moody’s Investor Services assigned a debt rating of Aa3 in November of 2013 for the first issuance of TOP general obligation bonds. Moody’s views the
city’s financial operations as sound, noting in their report that City officials have delivered operating surpluses in four of the last five audited financial years
and that the City has a moderately-sized tax base that did not decline during the recession, in addition to a low debt burden. This affirmed the rating assigned
by Moody’s in May, 2012 of Aa3 to the City’s General Obligation Refunding Bonds, Series 2012, issued in the amount of $3.1 million.
As expressed in the fiscal year 2015 Approved Budget, City officials expect to end next fiscal year with general fund reserves totaling $4.7 million, or 17.9%
ofoperating revenues. This exceeds the minimum level of 16 2/3% required by City Charter, which in May of 2011 was amended to include adoption of
Wate r P lant Constructi on - final pay ments: s tate of the art me mbrane filtrati on system 5,537,041$
College Stre et w idening and re constructi on: Mai n St. to 19t h Ave - City's Share o f MT De pt of Transp. Project 3,392,247$
Sewer Re habilitati on and Re pai r - annual collecti on pipe re place ment program 1,382,832$
2013 S utphen Ladder Truck f or the F ire De partme nt 1,159,106$
Wate r Li ne Re place me nt and Re habilitation - annual d istri bution pipe re place ment program 745,292$
TOP Bonds: Trai ls, Open Space and Parks - Boze man Ponds Land Purch ase on Fowler Lane 607,119$
Police Station and Mu nici pal Court Share d Facility: Arch itectural and De sign Serv ices 473,016$
Stre et Improveme nts - Gas Tax 444,497$
Le nco Be arcat G3 A rmore d Vehicle for t he P olice Departme nt 250,093$
North 7t h Avenue Tax Incre me nt Financing Di strict Li ghti ng project 235,629$
Police Patrol Car Fl eet Renewal: m ultiple SUV's and cars acce ssori zed with tech nology and equipment 310,741$
De velopment Impacts "Bi g Box" Fund Contribution to Hay nes Ice Pavilion at Gal lati n County Fairgrounds 175,000$
Li ndley Park Re stroom Up grade 174,211$
Caterpillar Front End Loader f or Street De partme nt 174,024$
Wate r Re cl amation Faci lity post-construction project payments 169,712$
Mi cropaver A sset Manageme nt System for S tre et Department 122,188$
Bogert Swimming Pool Boiler Re place me nt 113,606$
28
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
GFOA’s Best Practice for Unreserved General Fund Balance into the City’s Budget Administration Ordinance. Property taxes are the City's primary general
revenue source (67.8%), followed by unrestricted grants and contributions (28.7%), and investment earnings (1.4%) Moody's expects the City to maintain a
moderate debt position given current moderate debt burdens, above average principal payout, and expected tax base growth. More detailed information about
the City’s long-term liabilities is presented in Note 9 to the financial statements.
2014 2013 2014 2013 2014 2013
Ge neral Obligat io n
Bo nds (backed by t he Cit y)11.7$ 2.4$ -$ -$ 11.7$ 2.4$
Tax Increment Fin ancing
Dist rict (T IFD) bonds 5.0 5.2 - - 5.0 5.2
Sp ecial Improvement
Dist rict Debt 1.2 1.8 - - 1.2 1.8
Notes Payable 1.1 1.2 - - 1.1 1.2
Lease P ayable 0.1 0.1 - - 0.1 0.1
Water Revenue Bonds
(backed by specific fee revenue s)- - 18.1 13.8 18.1 13.8
Wast ewat er Revenue Bonds
(backed by specific fee revenue s)- - 21.0 22.5 21.0 22.5
To tal s 19.1$ 10.7$ 39.1$ 36.3$ 58.1$ 47.0$
Acti vi ti es Activi ti es To tals
Ta bl e 5
Outstanding De bt, at Ye ar-e nd
(in Mi llions)
Governmental Business-type
29
CITY OF BOZEMAN, MONTANA
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
JUNE 30, 2014
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The City’s elected and appointed officials considered many factors when adopting the 2014-2015 budget for next fiscal year’s tax rates and fees that will be
charged for the business-type activities. Some of these factors include: capital improvements identified in the City’s Capital Improvement Program; inflation
rates, the City’s collective bargaining units, the local economy,and the citizen’s ability to pay. For the year, inflation rates continued to remain at relatively
low yet increasing levels. The Bureau of Labor Statistics of the U.S. Department of Labor reported that over the year US annual inflation rate was recorded at
1.7 percent, the smallest advance in 5 years, as the fall in energy prices was enough to offset higher food and shelter cost. Inflation rates will also impact the
cost of future City capital projects.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a general overview of the City’s finances and to
show the City’s accountability for the money it receives. If you have questions about this report or need additional information, contact the City’s
Administrative Services Director, Controller, or Assistant Controller at the City of Bozeman, 121 North Rouse Avenue, Bozeman, Montana 59715.
B. BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
30
CITY OF BOZEMAN, MONTANA
STATEMENT OF NET POSITION
JUNE 30, 2014
The Notes to Financial Statements are an integral part of this statement.
Governmental
Activit ies
Business-type
Activit ies Total
ASSET S
Cash and investments 36,304,485$ 17,095,305$ 53,399,790$
Restrict ed cash and inves tments 11,409,933 4,379,735 15,789,668
Accrued int erest 63,981 23,361 87,342
Receivables, net 7,728,962 1,622,960 9,351,922
Notes receivable 326,570 15,924 342,494
Prepaid expenses 388,875 - 388,875
Capital assets
Non-depreciable land and wat er right s 11,127,553 6,999,716 18,127,269
Other cap it al as sets, net of depreciat ion 97,144,914 237,667,206 334,812,120
Total cap it al as sets 108,272,467 244,666,922 352,939,389
Tot al as sets 164,495,273 267,804,207 432,299,480
LIABILIT IES
Account s payable and accrued expenses 4,365,581 2,962,675 7,328,256
Unearned revenue 106,450 - 106,450
Current p ortion of long-t erm liabilit ies
Comp ensat ed absences p ay able 1,198,200 349,700 1,547,900
Cap it al leases 33,495 - 33,495
Clos ure and p ost-closure care cos ts - 177,873 177,873
Lit igat ion set tlement payable 666,667 - 666,667
Bonds and not es 803,122 1,825,000 2,628,122
Long-term liabilit ies , due in more t han one y ear
Comp ensat ed absences 510,667 168,311 678,978
Cap it al leases 60,681 - 60,681
Clos ure and p ost-closure care cos ts - 4,061,974 4,061,974
Pollut ion remediat ion obligat ions 16,874 2,939,057 2,955,931
Other p ost-emp loy ment healt h benefits - imp licit rat e subsidy 1,548,659 381,415 1,930,074
Bonds and not es 18,168,774 37,340,565 55,509,339
Tot al liabilit ies 27,479,170 50,206,570 77,685,740
NET POSITION
Net investment in cap it al as sets 89,267,076 205,501,357 294,768,433
Nonsp endable 1,269,557 - 1,269,557
Restrict ed:
Restrict ed for p arking cap it al project s - 270,450 270,450
Restrict ed for general go vernment 954,556 - 954,556
Restrict ed for p ublic safet y 2,349,030 - 2,349,030
Restrict ed for p ublic service 13,219,766 - 13,219,766
Restrict ed for p ublic welfar e 4,686,271 - 4,686,271
Restrict ed for cap it al project s 9,369,420 - 9,369,420
Restrict ed for debt service 7,314,913 3,102,477 10,417,390
Unrestrict ed 8,585,514 8,723,353 17,308,867
Total net p osition 137,016,103$ 217,597,637$ 354,613,740$
31
CITY OF BOZEMAN, MONTANA
STATEMENT OF ACTIVITIES
Year Ended June 30, 2014
The Notes to Financial Statements are an integral part of this statement.
Net (Expense) Revenue and Changes in Net Assets
Op erat ing Cap it al
Charges for Grant s and Grant s and Governmental Business-type
Expenses Ser vices Cont ribut ions Contribut ions Activit ies Activit ies Total
Primary Government
Government al act ivit ies
General government 6,989,830$ 2,453,015$ -$ -$ (4,536,815)$ (4,536,815)$
Public safet y 15,297,088 3,290,573 362,670 249,537 (11,394,308) (11,394,308)
Public service 6,031,768 7,623,178 - 4,472,963 6,064,373 6,064,373
Public welfare 7,417,158 613,322 94,684 39,916 (6,669,236) (6,669,236)
Int eres t and fiscal fees 179,280 - - - (179,280) (179,280)
Total governmental act ivit ies 35,915,124 13,980,088 457,354 4,762,416 (16,715,266) (16,715,266)
Business-type act ivit ies
Wat er 6,869,870 9,842,699 1,494 3,137,978 6,112,301$ 6,112,301
Was te water 8,955,592 8,462,038 1,575 2,760,945 2,268,966 2,268,966
Solid was te 6,958,209 2,725,465 1,002 - (4,231,742) (4,231,742)
966,454 872,325 5,525 - (88,604) (88,604)
Total business-ty pe act ivit ies 23,750,125 21,902,527 9,596 5,898,923 4,060,921 4,060,921
Total p rimary go vernment 59,665,249$ 35,882,615$ 466,950$ 10,661,339$ (16,715,266) 4,060,921 (12,654,345)
General revenues
Prop ert y taxe s 17,561,022 - 17,561,022
Unrestrict ed grant s and cont ribut ions 7,436,419 - 7,436,419
Investment earnings 355,790 - 355,790
Miscellaneous 293,884 - 293,884
Sale of cap it al assets 236,688 - 236,688
ARRA debt forgiveness - 390,700 390,700
Transfers (10,000) 10,000 -
Total general revenues and transfers 25,873,803 400,700 26,274,503
Change in net p osition 9,158,537 4,461,621 13,620,158
Net position, beginning of t he y ear 127,857,566 213,136,016 340,993,582
Net position, end of t he y ear 137,016,103$ 217,597,637$ 354,613,740$
Non major act ivit ies
Functions/Programs
Primar y Governmen t
Program Revenues
FUND FINANCIAL STATEMENTS
GOVERNMENTAL FUND FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
General Fund –the fund accounts for the financial operations of the City which are not accounted for in any other Fund. Principal sources of
revenue are property taxes, state and local shared revenues, licenses and permits and charges for services provided to other Funds. Principal
expenditures in the general fund are made for police and fire protection, public works and general government.
Street Impact Fees Special Revenue Fund –this Fund accounts for the collection and expenditures associated with the street impact fees.
Street Maintenance –Accounts for special assessment revenues levied, received and expended for street maintenance provided to specific property
owners.
Building Inspection –This Fund was established to account for all activity of enforcing the building regulation adopted by the City. It includes all
the money and staff associated with executing any aspect of the code enforcement program. Section 50-60-101 MCA established the code
enforcement program requirement.
SID Sinking Debt Service Fund -the Fund accounts for the accumulation of resources and payment of special assessment bond principal and
interest related to general improvement, sidewalk and curb construction projects.
32
CITY OF BOZEMAN, MONTANA
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2014
St reet St reet Building SI D Other Total
General Impact F ees Maint enance Inspect ion Sinking Government al Government al
Fund Sp ecial Revenue Sp ecial Revenue Sp ecial Revenue Debt Service Funds Funds
ASSET S
Cash and investment s 8,314,832$ -$ 2,085,470$ 1,427,347$ 1,405,621$ 22,368,796$ 35,602,066$
Receivables:
Prop erty t axes 1,039,927 - - - - 387,535 1,427,462
Accrued int erest 10,281 23,658 3,773 3,126 - 23,143 63,981
Customers, net 1,934,272 - 3,073 112 - 663,650 2,601,107
Sp ecial assessment s 276 - 151,567 - 3,349,159 47,806 3,548,808
Other governments 7,701 - - - - 127,896 135,597
Advances t o ot her cit y funds - - - - - 131,726 131,726
Prep aid expendit ures - - - - - 388,875 388,875
Notes receivable - - - - - 326,570 326,570
Restrict ed cash and investment s - 9,772,303 - - - 1,637,630 11,409,933
Total as sets 11,307,289$ 9,795,961$ 2,243,883$ 1,430,585$ 4,754,780$ 26,103,627$ 55,636,125$
33
CITY OF BOZEMAN, MONTANA
BALANCE SHEET (CONTINUED)
GOVERNMENTAL FUNDS
June 30, 2014
St reet St reet Build ing SI D Other Total
General Impact F ees Maint en ance Insp ect ion Sin king Government al Government al
Fund Sp ecial Revenue Sp ecial Revenue Sp ecial Revenue Debt Ser vice Funds Funds
LIA BILIT IES A ND FUND BALANCES
Liabilit ies
Account s p ay able 2,436,595$ 1,997$ 150,720$ 24,492$ 29,617$ 1,304,431$ 3,947,852$
Es ch eat p rop erty p ay able 47,219 - - - - 17,774 64,993
Matured int eres t payable - - - -
Accrued emp loyee benefit s 258,295 - 14,290 11,543 - 17,460 301,588
Advanced from ot her cit y funds - - - - 131,726 - 131,726
Total liabilit ies 2,742,109 1,997 165,010 36,035 161,343 1,339,665 4,446,159
Deferred inflow s of resources
Unavailab le revenue-p rop erty t axes 228,811 - - - - 104,207 333,018
Unavailab le revenue-special as sessment s - - 101,094 - 3,335,010 15,096 3,451,200
Unavailab le revenue-deferred loans - - - - - 326,570 326,570
Unavailab le revenue-court fines 1,722,075 - - - - - 1,722,075
Total deferred inflows of resources 1,950,886 - 101,094 - 3,335,010 445,873 5,832,863
Fund balan ces
Nonsp endable - - - - - 1,269,557 1,269,557
Restrict ed - 9,793,964 1,977,779 1,394,550 1,258,427 19,927,526 34,352,246
Commit ted - - - - - 3,075,505 3,075,505
Assign ed 6,420,760 - - - - 229,602 6,650,362
Unassign ed 193,534 - - - - (184,101) 9,433
Total fund balances 6,614,294 9,793,964 1,977,779 1,394,550 1,258,427 24,318,089 45,357,103
Total liabilit ies and fund balances 11,307,289$ 9,795,961$ 2,243,883$ 1,430,585$ 4,754,780$ 26,103,627$ 55,636,125$
34
CITY OF BOZEMAN, MONTANA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
June 30, 2014
Amounts rep ort ed for gov er nm ental activ ities in t he stat ement of net as sets are
different because:
Fund balances - t otal government al funds 45,357,103$
Capital as sets used in government al act ivit ies are not financial res ources and therefore are not rep ort ed
in the government al funds.
Governmental cap it al as sets 201,064,643
Les s: accumulat ed dep reciat ion (92,792,176) 108,272,467
Int ernal s ervice funds are used by management to charge the co sts of certain act ivit ies t o individual
funds. The assets and liabilit ies of t he int ernal s ervice funds are included in government al act ivit ies
in the stat ement of net position.
Net position 1,844,048
Less: cap it al as sets included in governmental act ivit ies (1,639,697)
Plus: accumulat ed depreciat ion included in government al act ivit ies 418,748
Plus: ot her p ost-emp lo yment benefit s included in government al act ivit ies 23,645
Plus: comp en sated absen ces included in government al act ivit ies 20,515 667,259
Deferred inflows of resources are not available t o p ay for current p eriod exp endit ures and, t herefore,
are deferred in t he funds.5,832,863
Impact fee credit s do not affect current financial resources and t herefore are not rep ort ed in t he
go vernment al funds.(106,450)
Long-t erm liabilit ies are not due and p ay able in t he current p eriod and t herefore are not report ed
in the government al funds.
Bonds and not es p ay ab le (18,971,896)
Capital lease obligat ions (94,176)
Pollut ion remediation obligat ions (16,874)
Post-emp loyment healt h benefit s (1,548,659)
Legal settlement (666,667)
Compensat ed absences (1,708,867) (23,007,139)
Net position of government al act ivit ies 137,016,103$
35
CITY OF BOZEMAN, MONTANA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNEMENTAL FUNDS
For the Year Ended June 30, 2014
St reet St reet Building SI D Ot her Total
Imp act Fees Main tenance Insp ect ion Sinking Governmental Governmen tal
General Sp ecial Revenue Sp ecial Rev enue Sp ecial Revenue Debt Service Funds Funds
REVENUES
Taxes 12,509,422$ -$ -$ -$ -$ 4,875,949$ 17,385,371$
Sp ecial as sessment s 4,268 - 24,283 - 1,054,483 928,910 2,011,944
Licens es and p ermit s 313,264 - 25,091 1,445,927 - - 1,784,282
Int ergo vernment al 6,570,978 - 1,008 23,141 - 1,613,643 8,208,770
Charges for services 2,395,464 2,838,071 3,163,630 1,911 - 1,257,047 9,656,123
Fines and forfeit ures 1,291,245 - - - 119,917 1,411,162
Int eres t on investment s 41,578 95,678 15,714 12,643 8,770 154,703 329,086
Loan rep ay ment - - - - - 63,980 63,980
Ot her 122,699 800 11,190 121 - 152,279 287,089
Total revenues 23,248,918 2,934,549 3,240,916 1,483,743 1,063,253 9,166,428 41,137,807
EX PENDITURES
Current
General government 5,343,067 - - - - 795,508 6,138,575
Public s afet y 12,927,866 - - 1,193,942 - 516,078 14,637,886
Public s ervice 319,377 18,345 2,561,885 - - 599,163 3,498,770
Public w elfare 4,881,542 - - - - 1,796,805 6,678,347
Other 961,124 - - - - 85,588 1,046,712
Cap it al out lay 1,401,317 3,348,480 302,004 27,610 - 2,974,045 8,053,456
Debt service
Princip al p ay men ts - - 168,142 - 474,000 840,000 1,482,142
Int er es t and fiscal fees - - 16,777 - 73,760 290,413 380,950
Total expenditures 25,834,293 3,366,825 3,048,808 1,221,552 547,760 7,897,600 41,916,838
Revenues over (under) expenditures (2,585,375) (432,276) 192,108 262,191 515,493 1,268,828 (779,031)
OTHER FINANCING SOURCES (USES)
Transfers in 2,193,678 - - - - 910,109 3,103,787
Transfers out (326,756) - - - (143,528) (2,643,503) (3,113,787)
Long-t erm debt issued - - - - - 10,012,647 10,012,647
Sa le of cap it al assets 5,372 - 23,695 - - 214,025 243,092
Total ot her financing sources (uses )1,872,294 - 23,695 - (143,528) 8,493,278 10,245,739
Net chan ge in fund balances (713,081) (432,276) 215,803 262,191 371,965 9,762,106 9,466,708
FUND BALA NCE, beginning of y ear 7,327,375 10,226,240 1,761,976 1,132,359 886,462 14,555,983 35,890,395
FUND BALA NCE, end of y ear 6,614,294$ 9,793,964$ 1,977,779$ 1,394,550$ 1,258,427$ 24,318,089$ 45,357,103$
36
CITY OF BOZEMAN, MONTANA
RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
OF GOVERNEMENTAL FUNDS TO THE STATEMENT OF ACTIVITES
Year Ended June 30, 2014
Amount s report ed for gov er nm ental activ ities in t he st at ement of act iv it ies are different becaus e:
Net chan ge in fund balances - t otal go vernmental funds 9,466,708$
Governmental funds report cap it al out lay s as exp endit ures. However, in t he stat ement of act ivit ies , t he cost
of t hes e as sets is allocat ed over t heir estimat ed useful lives and report ed as depreciat ion expense. T his is
the amount by which dep reciat ion exp ense exceeded cap it al out lay s in t he current p er iod.
Expendit ures for capital as sets 8,053,456$
Donated infrastructure 4,447,151
Les s: current y ear dep reciat ion (3,961,359) 8,539,248
Governmental funds report asset disp osals as sale of fixed assets for t he cash receiv ed. In t he st at emen t of
act ivit ies , t hose gains and losses mus t be adjust ed by t he assets basis, net of any depreciat ion.(7,529)
The issuance of long-t erm debt (e.g. bonds, leas es) p rovides current financial r es ources t o government al funds,
while the rep ay ment of t he p rincip al of long-t erm debt cons umes t he current financial res ources of
go vernmen tal funds. Neit her t rans act ion, however, has any effect on net position. A ls o, government al funds
thes e amount s report t he effect of p remiums, disco unt s, and similar items when debt is first is sued, whereas
are deferred and amort iz ed in t he statement of activit ies , unless immat erial. T his amo unt is the net effect of t hes e
differences in t he t reat ment of long-t erm debt and relat ed items .(8,720,352)
So me revenues rep ort ed in t he statement of act ivit ies do not require t he use of current financial res ources and,
therefore, are not report ed as revenues in government al funds.(748,473)
Governmental funds do not report a liabilit y for compens at ed absences . The change in t he liabilit y is a current
period expense.(164,373)
Governmental funds do not report a liabilit y for ot her p ost-emp loy ment healt h benefits.(69,026)
Governmental funds do not recogn iz e a liabilit y for long-t erm legal settlemen ts. T he current y ear p ay ment
was recorded as an exp endit ure in t he government al funds . T he liab ilit y and exp ense w as p reviously accrued
in t he government al act iv it ies .666,667
Governmental funds do not report imp act fee credit s. T he change in t hese cr edit s during t he y ear are charged
to t he statement of activit ies .5,515
Int ernal service funds are us ed by management t o charge the cos ts of certain act ivit ies t o individual funds. T he
net revenue of t he int ernal s ervice funds is report ed in t he governmen tal act ivit ies .190,152
Change in net p osition of government al act ivit ies 9,158,537$
PROPRIETARY FUND FINANCIAL STATEMENTS
PROPRIETARY FUNDS
These funds are used to account for the financing, acquisition, operation and maintenance of water, sewer and solid waste facilities, which are
supported by user charges.
Enterprise Funds –
Water Fund –Accounts for the City’s water utility operations and to collect and administer water impact fees.
Waste Water Fund –Accounts for the City’s sewer utility operations and to collect and administer waste water impact fees.
Solid Waste Fund –Accounts for the City’s garbage service operations.
Internal Service Funds –used to account for the goods and services provided by one department to other departments of the City on a cost-
reimbursement basis.
37
CITY OF BOZEMAN, MONTANA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30, 2014
The Notes to Financial Statements are an integral part of this statement.
Governmental
Activities
Was te So lid Non M ajor Internal
Wat er Fund Wat er F und Was te F und Ent erp rise Funds Total Service Funds
ASSET S
Current asset s
Cash and invest ments 12,665,223$ 2,505,870$ 1,792,276$ 131,936$ 17,095,305$ 702,419$
Receivables
Accrued int erest 19,916 - 3,445 - 23,361 -
Customers , net 642,721 628,169 237,006 114,326 1,622,222 15,988
Sp ecial assessment s 139 55 544 - 738 -
Total current as sets 13,327,999 3,134,094 2,033,271 246,262 18,741,626 718,407
Non current assets
Other assets
Notes receivable - - - 15,924 15,924 -
Restrict ed cash and inves tmen ts 2,195,560 1,913,725 - 270,450 4,379,735 -
Total ot her asset s 2,195,560 1,913,725 - 286,374 4,395,659 -
Prop erty, p lant and equip ment
Nondep reciable:
Land 162,518 754,043 3,714,577 303,436 4,934,574 -
Wat er right s 2,065,142 - - - 2,065,142 -
Depreciable:
Buildings 39,603,915 59,534,338 868,302 11,629,362 111,635,917 1,388,583
Other struct ures and imp rovements 13,907,432 14,745,401 2,155,300 - 30,808,133 -
Machinery and equip ment 1,343,122 2,582,828 2,613,695 258,196 6,797,841 167,302
Veh icles 449,076 711,682 529,231 158,581 1,848,570 83,812
Infrast ructure 159,498,382 101,220,253 78,531 - 260,797,166 -
Accumulat ed depreciat ion and amort iz at ion (97,294,170) (68,218,589) (5,551,796) (3,155,866) (174,220,421) (418,748)
Net prop erty, p lant and equip ment 119,735,417 111,329,956 4,407,840 9,193,709 244,666,922 1,220,949
Total non current asset s 121,930,977 113,243,681 4,407,840 9,480,083 249,062,581 1,220,949
Total assets 135,258,976$ 116,377,775$ 6,441,111$ 9,726,345$ 267,804,207$ 1,939,356$
Ent erp rise Funds
Business-type Activities
38
CITY OF BOZEMAN, MONTANA
STATEMENT OF NET POSITION (CONTINUED)
PROPRIETARY FUNDS
June 30, 2014
The Notes to Financial Statements are an integral part of this statement.
Government al
Activities
Waste So lid Non M ajor Internal
Wat er Fund Wat er Fund Waste F und Ent erprise Funds Total Service Funds
LIABILIT IES
Current liabilit ies :
Accounts payable and accrued expenses 1,985,763$ 624,418$ 326,504$ 25,990$ 2,962,675$ 51,148$
Compensat ed absences p ay able 96,753 174,092 57,715 21,140 349,700 -
Closure and p ost -closure care costs, current p ort ion - - 177,873 - 177,873 -
Bonds, notes , and loans p ay able 780,000 1,045,000 - - 1,825,000 -
Total current liabilit ies 2,862,516 1,843,510 562,092 47,130 5,315,248 51,148
Noncurrent liabilit ies
Closure and p ost -closure care costs - - 4,061,974 - 4,061,974 -
Revenue bonds due aft er one y ear 17,360,000 19,980,565 - - 37,340,565 -
Compensat ed absences p ay able 111,935 13,712 42,664 - 168,311 20,515
162,735 109,068 80,885 28,727 381,415 23,645
So lvent site remediat io n liabilit y - 2,939,057 - - 2,939,057 -
Total noncurrent liabilit ies 17,634,670 23,042,402 4,185,523 28,727 44,891,322 44,160
Total liabilit ies 20,497,186 24,885,912 4,747,615 75,857 50,206,570 95,308
NET POSIT ION
Net investment in cap it al as sets 101,595,417 90,304,391 4,407,840 9,193,709 205,501,357 1,220,949
Restrict ed for p arking cap it al project s - - - 270,450 270,450 -
Restrict ed for debt service 1,313,885 1,788,592 - - 3,102,477 -
Unrestrict ed 11,852,488 (601,120) (2,714,344) 186,329 8,723,353 623,099
Total net p osition 114,761,790 91,491,863 1,693,496 9,650,488 217,597,637 1,844,048
Total liabilit ies and net position 135,258,976$ 116,377,775$ 6,441,111$ 9,726,345$ 267,804,207$ 1,939,356$
Other p ost-emp loyment healt h benefits -
imp licit rate subsidy
Ent erprise Funds
Business-type Activit ies
39
CITY OF BOZEMAN, MONTANA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
Year Ended June 30, 2014
The Notes to Financial Statements are an integral part of this statement.
Government al
Activit ies
Waste So lid Non M ajor Int ernal
Wat er Fund Wat er Fund Waste Fund Ent erp rise Funds Totals Service Funds
OPERATING REVENUES
Charges for services 7,871,386$ 7,204,486$ 2,679,884$ 865,619$ 18,621,375$ 5,066,443$
OPERATING EXPENSES
Salaries and benefit s 2,039,652 2,129,310 1,131,551 368,604 5,669,117 327,186
Materials and sup plies 889,831 337,710 402,906 45,398 1,675,845 609,048
Rep airs and maintenance 36,658 233,158 226,705 9,302 505,823 7,938
Utilit ies 217,547 469,247 407,783 30,848 1,125,425 5,028
Adminis trat ive charges 750,054 617,187 278,873 61,736 1,707,850 56,916
Insurance claims - - - - - 3,775,898
Other exp ens es 471,722 2,109,139 1,598,279 135,432 4,314,572 108,916
Depreciat ion and amort iz at ion 2,034,968 2,399,070 149,465 315,134 4,898,637 54,197
Changes in estimat ed closure and p ost-
closure care costs - - 2,762,647 - 2,762,647 -
Total op erat ing expenses 6,440,432 8,294,821 6,958,209 966,454 22,659,916 4,945,127
Op erat ing income (loss)1,430,954 (1,090,335) (4,278,325) (100,835) (4,038,541) 121,316
NON-OPERATING REVENUES (EXPENSES)
Int erest income 74,661 12,689 19,899 2,363 109,612 3,425
Int erest expense (429,438) (660,771) - - (1,090,209) (370)
Other income 56,467 105,415 21,351 4,343 187,576 6,795
Int ergo vernment al income 1,494 1,575 1,002 5,525 9,596 -
Impact fees 1,839,502 1,139,448 - - 2,978,950 -
Gain (loss) on disp osal of asset s 683 - 4,331 - 5,014 1,125
Total non-op erat ing revenues (exp enses)1,543,369 598,356 46,583 12,231 2,200,539 10,975
Income (loss) before contribut ions and transfers 2,974,323 (491,979) (4,231,742) (88,604) (1,838,002) 132,291
Cont ributions of infrast ruct ure - develop ers 3,137,978 2,760,945 - - 5,898,923 -
ARRA debt forgiveness - 390,700 - - 390,700 -
Transfers in - - - 10,000 10,000 -
Change in net position 6,112,301 2,659,666 (4,231,742) (78,604) 4,461,621 132,291
NET POSITION, begi nning of y ear 108,649,489 88,832,197 5,925,238 9,729,092 213,136,016 1,711,757
NET POSITION, end of y ear 114,761,790$ 91,491,863$ 1,693,496$ 9,650,488$ 217,597,637$ 1,844,048$
Enterp rise Funds
Business-ty pe Activities
40
CITY OF BOZEMAN, MONTANA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended June 30, 2014
The Notes to Financial Statements are an integral part of this statement.
Governmental
Activit ies
Waste So lid Nonmajor Int ernal
Wat er Fund Wat er Fund Waste Fund Funds Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receip ts from cust omers 7,831,611$ 7,149,406$ 2,679,447$ 795,879$ 18,456,343$ 5,064,611$
Receip ts from others 56,467 105,415 21,351 4,343 187,576 6,795
Payments to sup pliers (3,165,997) (2,249,580) (2,423,350) (242,596) (8,081,523) (719,272)
Payments to emp loyees (2,053,481) (2,070,228) (1,129,557) (355,344) (5,608,610) (4,099,420)
Payments to int ernal service funds and adminis trat ive fees (750,054) (617,187) (278,873) (61,736) (1,707,850) (56,916)
Net cash flows from op erat ing act ivit ies 1,918,546 2,317,826 (1,130,982) 140,546 3,245,936 195,798
CASH FLOWS FROM NON-CAPITAL F INANCING ACTIVITIES
Transfers in - - - 10,000 10,000 -
Receip ts from grant s and intergo vernment al sources 2,177 1,575 5,333 5,525 14,610 -
Net cash flows from non-cap it al financing act ivit ies 2,177 1,575 5,333 15,525 24,610 -
Acquisit ion of cap it al as sets (6,386,197) (1,616,569) - (16,317) (8,019,083) (16,980)
Princip al p aid on bonds, interfund loans, loans and leases 4,388,122 (1,084,854) - - 3,303,268 -
Int erest paid on bonds, interfund loans, loans and leases (429,438) (660,771) - - (1,090,209) (370)
Proceeds from issuance of long-t erm debt - - - - - -
Impact fees received 1,839,502 1,139,448 - - 2,978,950 -
Net cash flows from cap it al and relat ed financing act ivit ies (588,011) (2,222,746) - (16,317) (2,827,074) (17,350)
CASH FLOWS FROM INVESTING ACTIVIT IES
Collect ions on notes - - - 2,383 2,383 -
Int erest on investments 86,735 31,401 18,771 2,363 139,270 3,425
Net cash flows from investing act ivit ies 86,735 31,401 18,771 4,746 141,653 3,425
Net change in cash and investments 1,419,447 128,056 (1,106,878) 144,500 585,125 181,873
Cash and invest ment s, beginning of y ear 13,441,336 4,291,539 2,899,154 257,886 20,889,915 459,251
Cash and invest ment s, end of y ear 14,860,783$ 4,419,595$ 1,792,276$ 402,386$ 21,475,040$ 641,124$
Classified as:
Cas h and investments 12,665,223$ 2,505,870$ 1,792,276$ 131,936$ 17,095,305$ 702,419$
Res trict ed cas h and investments 2,195,560 1,913,725 - 270,450 4,379,735 -
Totals 14,860,783$ 4,419,595$ 1,792,276$ 402,386$ 21,475,040$ 702,419$
CASH FLOWS FROM CAPITAL AND RELATED
FIN ANCING ACTIVIT IES
Busines s-type Activities
Ent erp ris e Funds
41
CITY OF BOZEMAN, MONTANA
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
Year Ended June 30, 2014
The Notes to Financial Statements are an integral part of this statement.
Government al
Activities
Was te Solid Nonmajor Int ernal
RECO NCILIAT IO N OF OPERATING IN COME T O Wat er Fund Wat er Fund Was te Fund Funds Total Ser vice Funds
NET CASH FROM OPERAT IN G ACT IVIT IES:
Op erat ing income (los s)1,430,954$ (1,090,335)$ (4,278,325)$ (100,835)$ (4,038,541)$ 121,316$
Adjus tment s to reconcile op erat ing income (los s)
to net cash p rovided (used ) by op er at ing act ivit ies
Depreciat ion and amort iz at ion 2,034,968 2,399,070 149,465 315,134 4,898,637 54,197
Change in estimat ed closure
and p os t-closure care costs - - 2,754,601 - 2,754,601 -
Change in solvent site remediat ion obliga tion - 1,256,304 - - 1,256,304 -
Other income 56,466 105,415 21,351 4,343 187,575 6,795
Change in A ssets and Liabilit ies :
(Increase) Decrease in:
Account s receivable (39,774) (55,080) (437) (69,740) (165,031) (1,832)
Increas e (Decreas e) in:
Account s p ay able (1,550,239) (356,630) 220,369 463 (1,686,037) 25,746
Accrued emp loyee benefit s payable (13,829) 59,082 1,994 13,260 60,507
Interfund Borrowings - - - (22,079) (22,079) (10,424)
Total adjus tment s 487,592 3,408,161 3,147,343 241,381 7,284,477 74,482
Net cas h from
op er at ing act iv it ies 1,918,546$ 2,317,826$ (1,130,982)$ 140,546$ 3,245,936$ 195,798$
Enterp ris e F unds
Bus ines s-type Act ivit ies
FIDUCIARY FUND FINANCIAL STATEMENTS
FIDUCIARY FUINDS
AGENCY FUNDS
Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other
funds.
Montana Arts Council –Accounts for pass-through grant monies given for use by the Montana Arts Council for various programs.
Municipal Court –Accounts for monies held for appearance bonds and restitution.
CMC Bozeman Site Remediation -Accounts for pass-through monies provided by the State of Montana Department of Environmental
Quality to Olive & Wallace, LLC, to reimburse the cost of work performed as part of the Voluntary Cleanup Plan of the CMC Asbestos
Bozeman Facility.
42
CITY OF BOZEMAN, MONTANA
STATEMENT OF FIDUCIARY NET POSITIONS
FIDUCIARY FUNDS
June 30, 2014
The Notes to Financial Statements are an integral part of this statement.
Agency
Funds
ASSETS
Ca sh and cash equiva le nts 353,326$
Customer receiva bles 2,278
Tota l assets 355,604$
LIABILITIES
Accounts payable 355,604$
Tota l lia bilit ie s 355,604$
NOTES TO FINANCIAL STATEMENTS
43
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Bozeman of Gallatin County, Montana (the City) was incorporated as a municipal corporation in 1883. The present City Code of
Ordinances was adopted October 3, 2011. Under the charter, the City is governed by a mayor and commission members who comprise the City
Commission. The day-to-day affairs of the City are conducted under the supervision of the City Manager, who is appointed by and serves at the
pleasure of a majority of the City Commission.
The accompanying financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as
prescribed by the Governmental Accounting Standards Board (GASB), the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. In June 1999 the GASB issued Statement 34 Basic Financial Statements-and Management’s
Discussion and Analysis-for State and Local Governments (GASB 34). This Statement establishes new financial reporting requirements for state
and local governments throughout the United States. It requires new information and restructures much of the information that governments have
presented in the past. Comparability with reports issued in prior years is affected.
The accompanying financial statements present the financial position of the City and the various funds and fund types, the results of operations of
the City and the various funds and fund types, and the cash flows of the proprietary funds. The financial statements are presented as of June 30,
2014, and for the year then ended.
The more significant accounting policies of the City are described below.
New Accounting Pronouncements
For the fiscal year ended June 30, 2014, the City implemented GASB Statement 65, Items Previously Reported as Assets and Liabilities.This
Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of
resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources,
certain items that were previously reported as assets and liabilities.
Reporting Entity
The City has considered all potential component units for which it is financially accountable and other organizations for which the nature and
significance of their relationship with the City are such that exclusion would cause the City’s financial statements to be misleading or incomplete.
The Governmental Accounting Standards Board has set forth criteria to be considered in determining financial accountability in Statement 14 The
Financial Reporting Entity and Statement 61,The Financial Reporting Entity: Omnibus –an Amendment of GASB Statements No. 14 and No. 34.
These criteria include appointing a voting majority of an organization's governing body and (1) the ability of the City to impose its will on that
organization or (2) the potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the City.
44
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Reporting Entity (Continued)
Although the following entities meet the requirements of Statement 61, they are strictly advisory in nature. Therefore, the government-wide
financial statements do not include the financial information of the following entities and their omission does not cause the City’s financial
statements to be misleading or incomplete. Should there develop a financial element at some point in the future, the City shall include these
entities on its government-wide financial statements.
Senior Center Advisory Council -This council is advisory in nature on senior issues and on how to run the City-owned Senior Center
building. The City is responsible for the maintenance and operation of the building.
Blended Component Units
The following have been presented as blended component units since their governing bodies are substantially the same as the primary
government’s government body and because their services are provided entirely or almost entirely to the primary government.
Parking Commission -The City Commission appoints the governing board of the Parking Commission, which was created by ordinance.
The City owns the parking lots, collects the rents and assigns the lots to the individuals.
City Planning Board -The agreement forming the City Planning Board holds that it will submit its budget to the City Commission for
approval and the City provides all accounting functions and is responsible for the issuance of debt. It is presented with the Special Revenue
Funds.
Basis of Accounting/Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each
fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or
expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they
are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The Government-Wide Financial Statements (the Statement of Net Position and the Statement of Activities) present information of all the non-
fiduciary activities of the primary government and its component units. These statements present summaries of Governmental and Business-Type
Activities for the City accompanied by a total column.
These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s
assets and liabilities, including capital assets and long-term liabilities, are included in the accompanying Statement of Net Position. The City has
retroactively included infrastructure in its assets.
45
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of Accounting/Measurement Focus (Continued)
Government-Wide Financial Statements (Continued)
The Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in
which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program
revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and
contributions.
Certain eliminations have been made as prescribed by GASB 34 in regards to inter-fund activities, payables and receivables. All internal balances
in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-
type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities,
internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not
been eliminated.
The City applies all applicable GASB pronouncements (including all National Council on Governmental Accounting Statements and
Interpretations currently in effect) as well as the following pronouncements issued on or before November 30, 1989, unless those pronouncements
conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations,Accounting
Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) of the Committee on Accounting Procedure.
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for
all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in
fund balances and changes in fund balances as presented in these statements to the net position and changes in net position presented in the
Government-Wide Financial Statements. The City has presented all major funds that met those qualifications.
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of
accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues,
Expenditures, and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other
financing uses) in net current position. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which
they become both measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in
cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources which
have been treated as susceptible to accrual by the City are property taxes, intergovernmental revenues, and other taxes.
46
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of Accounting/Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
Expenditures are recorded in the accounting period in which the related fund liability is incurred. The City has elected to apply the early
recognition option of recognizing debt services expenditures provided by GASB Interpretation No. 6, Recognition and Measurement of Certain
Liabilities and Expenditures in Governmental Fund Financial Statements. Under this option, an expenditure and a liability are recorded in debt
service funds in the current year for amounts due early in the following year, for which resources have been provided during the current year.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and
a Statement of Cash Flows for each major proprietary fund. A column representing internal service funds is also presented with the Proprietary
Fund Financial Statements. Internal service balances and activities, however, have been combined with the governmental activities in the
Government-Wide Financial Statements.
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all
assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and
Changes in Net Position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are
reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other
expenses are reported as non-operating expenses.
Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Net Position. The City’s Fiduciary Funds represent Agency Funds, which are
custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Therefore, Agency Funds do not have a
measurement focus. These funds are accounted for using the accrual basis of accounting. The following Agency Funds are included in the
Fiduciary Fund financial statements:
Montana Arts Council –Accounts for pass-through monies received from the State of Montana to fund local chapters of cultural
enhancement activities such as the Bozeman Symphony Orchestra, Montana Ballet, Mandolin Society, Intermountain Opera Association,
and the Emerson Cultural Center.
Municipal Court –Accounts for monies held for appearance bonds and restitution related to criminal arrests and reimbursement for damage
caused.
47
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of Accounting/Measurement Focus (Continued)
Fiduciary Fund Financial Statements (Continued)
CMC Bozeman Site Remediation Fund -Accounts for pass-through monies provided by the State of Montana Department of Environmental
Quality to Olive & Wallace, LLC, to reimburse the cost of work performed as part of the Voluntary Cleanup Plan of the CMC Asbestos
Bozeman Facility.
Internal Service Funds
Internal Service Funds are used to account for goods and services provided by one department to other departments of the City on a cost-
reimbursement basis. These direct costs and certain indirect costs are included as part of the program expense reported for the individual functions
and activities of these other departments. The following Internal Service Funds are included in the Proprietary Fund Financial Statements:
Vehicle Maintenance Shop –Accounts for the maintenance and repair of vehicles used in the operation of City services.
Medical Health Insurance –Accounts for insurance premium revenues received from the various City departments and retirees, and the
related costs of health, vision, and dental insurance premiums incurred by City employees and retirees.
Funds
As mentioned, the Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in
Fund Balances for all major governmental funds and nonmajor funds aggregated. The following major funds are presented in separate columns on
the Governmental Funds Financial Statements, and the Proprietary Funds Financial Statements, respectively:
Governmental Funds
General Fund –this fund accounts for the financial operations of the City which are not accounted for in any other fund. Principal sources of
revenue are property taxes, state and local shared revenues, licenses and permits, and charges for services provided to other funds. Principal
expenditures in the General Fund are made for police and fire protection, public welfare, and general government.
Street Impact Fees Special Revenue Fund –on January 22, 1996, the City Commission adopted fire, street, water, and waste impact fees in
Ordinance Number 1414. This fund accounts for the collection and expenditures associated with the street impact fees.
Street Maintenance Special Revenue Fund –Accounts for special assessment revenues levied, received, and expended for street maintenance
provided to specific property owners.
48
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Funds (Continued)
Governmental Funds (Continued)
Building Inspection Special Revenue Fund –This fund was established to account for all activity of enforcing the building regulations
adopted by the City. It includes all the money and staff associated with executing any aspect of the code enforcement program. Section 50-
60-101 MCA established the code enforcement program requirement.
SID Sinking Debt Service Fund –Accounts for the accumulation of resources and payment of special assessment debt principal and interest
related to general improvement, sidewalk, and curb construction projects.
Proprietary Funds
Water Fund -Accounts for the City's water utility operations and to collect and administer water impact fees.
Waste Water Fund -Accounts for the City's sewer utility operations and to collect and administer waste water impact fees.
Solid Waste Fund -Accounts for the City's garbage service operations.
Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply
restricted net position first.
Cash and Investments
Cash and investments are under the management of the City's Treasurer and consist primarily of demand deposits and investments in U.S.
Government Bonds. Interest income earned as a result of pooling of City deposits is distributed to the appropriate funds utilizing a formula based
on the average balance of cash and investments of each fund.
Montana State statutes authorize the City to invest in interest-bearing savings accounts, certificates of deposits, and time deposits insured up to
$250,000 by the Federal Deposit Insurance Corporation or fully collateralized, U.S. government and U.S. agency obligations and repurchase
agreements where there is a master repurchase agreement and collateral held by a third party.
Restricted Cash and Investments
Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on
the balance sheet because their use is limited by applicable bond covenants. Impact fees collected and line-oversizing fees are restricted for
applicable use. Payments in lieu of parking are restricted by code for future parking related capital projects.
49
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Eliminations and Reclassifications
In the process of aggregating data for the Statement of Net Position and the Statement of Activities, some amounts reported as inter-fund activity
and balances in the funds have been eliminated or reclassified. Internal service fund activity has also been eliminated in the Statement of
Activities to remove the “doubling-up” effect.
Capital Assets
The City’s assets are capitalized at historical cost or estimated historical cost. City policy has set the capitalization threshold for reporting capital
assets at $5,000. Gifts or contributions of capital assets are recorded at fair market value when received. Depreciable capital assets are reported
on the Statement of Net Position, net of applicable accumulated depreciation. Capital assets which are not depreciable, such as land, and
construction in progress are reported separately. Depreciation expense is reported in Statement of Activities and is calculated using the straight-
line method based on the assets estimated useful life.
Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
In accordance with GASB 34, the City has recorded infrastructure assets prospectively from 2005, the date of implementation,and has included
infrastructure acquired prior to implementation within the four-year required period. The City defines infrastructure as the basic physical assets
that allow the City to function. These assets include the street system, comprised of roads, sidewalks, curbs, and street lights; the water
purification and distribution system; the sewer collection and treatment system; park and recreation lands and related improvements; storm water
conveyance system; and buildings and site amenities, including parking and landscaped areas.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable.
Vehicles 5 to 10 years
Machinery and equipment 5 to 30 years
Buildings 20 to 80 years
Other structures and improvements 10 to 100 years
Infrastructure 25 to 100 years
50
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Compensated Absences Payable
Earned but unpaid vacation and sick pay is included as a liability in the proprietary fund types and Government-Wide Financial Statements. The
portion relating to the governmental fund types not expected to be paid with expendable and available resources is not reported in the
governmental fund statements unless the liability has matured (i.e., unused reimbursable leave still outstanding following an employee's
resignation or retirement).
Inter-fund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those
short-term loans related to goods and services type transactions are classified as “due to and from other funds”. Long-term inter-fund loans
(noncurrent portion) are reported as “advances to and from other funds”. Inter-fund receivables and payables between funds are eliminated in the
Statement of Net Position.
On-Behalf Payments for Fringe Benefits
On-behalf payments for fringe benefits are direct payments made by one entity to a third-party recipient for the employees of another legally
separate entity. On-behalf payments include pension plan contributions. The State's pension contribution is recorded as intergovernmental
revenue with an offsetting public safety or general government expenditure in the Pension Special Revenue Fund. (See Note 14)
Budgets
Each year, the City Manager must submit to the City Commission a proposed operating budget for all budget units within the City for the fiscal
year commencing July 1. This operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted
to obtain citizen comments on the proposed budget. The budget is then legally adopted through passage of the appropriation resolution by the
City Commission.
The City adopts a final budget each June and amends the budget in August if the initial taxable value estimates were significantly different from
the final Certified Values received from the State.
Budgets are legally required for all governmental fund types. These budgets are prepared on the same basis and using the same accounting
practices as are used to account and prepare financial reports for the funds. Budgets presented in this report for comparison to actual amounts are
presented in accordance with generally accepted accounting principles. Annual appropriated budgets are adopted for all funds and all
appropriations lapse at year end. The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated
amount) is established at the fund level.
51
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Budgets (Continued)
The City Commission may amend the budget during the course of the fiscal year. Montana state statute provides a number of different ways to
amend the budget. The first involves a reallocation of existing appropriations among the line items within a specific fund. The second defines a
series of scenarios where the governing body has authority to amend the budget without a hearing for donations, land sales, and fee-based budgets.
All other increases in appropriation authority that are not specifically permitted by statute must be approved through a public hearing process.
Any accruing revenue of the municipality not appropriated and any balance at any time remaining after the purpose of an appropriation has been
satisfied or abandoned,may from time to time be appropriated to other uses that do not conflict with any uses for which specifically the revenue
was accrued. A public hearing is required for an overall increase in appropriation authority, except in the case of an emergency.
In its annual appropriation resolution, the City Commission delegated budget amendment authority to the City Manager for the expenditure of
funds from any or all of the following: debt service funds, enterprise funds, internal service funds, trust funds, federal and state grants accepted
and approved by the governing body, special assessments, and donations. In all other funds, the City Manager may, without approval from the
City Commission, make budget amendments as long as the total appropriation for the department is not exceeded.
Spending control is established by the total amount of expenditures budgeted for the fund, but management may exercise control at budgetary line
items.
Fund Balance
In accordance with GASB Statement 54, the City reports fund balance for governmental funds in two general classifications, nonspendable and
spendable.
Nonspendable represents the portion of fund balance that is not in spendable form such as inventories, and, in the general fund, long-term notes
and loans receivable. Spendable fund balance is further categorized as restricted, committed, assigned, and unassigned.
The restricted fund balance category contains balances that can be spent only for the specific purposes stipulated by external parties or through
enabling legislation. External parties include grantors, debt covenants, votes, and laws and regulations of other governments.
The committed fund balance category includes amounts that can be used only for the specific purposes determined by a formal action of the
government’s highest level of decision-making authority, the City Commission. The City Commission needs to formally adopt a Resolution in
order to establish, modify, or rescind a fund balance commitment.
52
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Fund Balance (Continued)
Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to
be classified as restricted or committed.The City’s policy to authorize the assignment of fund balance is as follows:Assigned Fund Balance can
be expressed and authorized directly by the City Commission or by an official to whom the Commission delegates the authority. The City
Commission delegates this authority to the City Manager.
On December 15, 2014, the City Commission accepted and approved the City Manager’s recommendation for the amount of General Fund
balance presented on page 33 to be assigned this fiscal year for the specific purposes listed on page 23.Included in the assigned fund balance for
the general fund are assignments for the portion of the current general fund balance that is projected to be used to fund expenditures and other cash
outflows in excess of the expected revenues and other cash inflows projected for the next fiscal year.
Similarly the City Manager exercised his delegated authority to assign the Nonmajor Capital Projects Fund balances presented on pages 33 and
108 for the for the specific purposes listed on page 87.
Unassigned fund balance is the residual classification for the government’s general fund and includes all spendable amounts not contained in the
other classifications. In other funds, the unassigned classification should be used only to report a deficit balance resulting from overspending for
specific purposes for which amounts had been restricted, committed, or assigned.
When both restricted and unrestricted resources are available, spending will occur in the following order, for the identified fund types:
General Fund: Restricted, Committed, Assigned, Unassigned
Special Revenue Funds: Restricted, Committed, Assigned
Debt Service Funds: Assigned, Committed, Restricted
Capital Projects Funds: Restricted, Committed, Assigned
Minimum General Fund –Fund Balance
The City does not maintain a stabilization fund. However, the City’s Charter requires an established minimum level of “General Fund Unreserved
Fund Balance”, in accordance with the Government Finance Officers’ Association (GFOA) Best Practices. The GFOA significantly changed their
Best Practice Recommendation in October 2009. As a result, in May 2010, the Commission increased the required minimum from 12% to 16
2/3%, or 2 months’ worth of revenues.
53
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Net Position
In funds other than governmental, net position represent the difference between assets and liabilities. Net investment in capital assets consists of
capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction, or
improvement of those assets. Net position is reported as restricted when there are limitations imposed on its use either through enabling
legislation or through external restrictions imposed by creditors, grantors, or laws and regulations of other governments.
NOTE 2.CASH AND INVESTMENTS
At June 30, 2014, the carrying amount of the City's deposits in local banks and investments is $69,542,784. Interest bearing account balances are
covered by the Federal Depository Insurance Corporation (FDIC) up to $250,000 per bank, per depositor. In additional, all noninterest bearing
transaction account balances are fully insured by FDIC coverage. The remaining balances are covered by collateral held by the pledging bank's
agent in the City's name.
The City’s cash and investments are reported as follows:
Unrestricted Restricted Total
Gove rnme ntal activ it ie s 36,304,485$ 11,409,933$ 47,714,418$
Busine ss-type activ it ie s 17,095,305 4,379,735 21,475,040
Fiduc ia ry funds 353,326 - 353,326
53,753,116$ 15,789,668$ 69,542,784$
Custodial credit risk for deposits is the risk that in the event of a financial institution failure, the City’s deposits may not be returned or the City
will not be able to recover the collateral securities in the possession of the outside party. The City minimizes custodial credit risk by restrictions
set forth in City policy and state law. The City’s policy requires deposits to be 104 percent secured by collateral valued at market value. The City
Treasurer maintains a listing of financial institutions, which are approved for investment purposes. Typ es of securities that may be pledged as
collateral are detailed in Section 17-6-103 of the Montana Code Annotated (MCA). City policy requires that specific safeguards against risk of
loss be evidenced when the City does not physically hold the securities.
54
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 2.CASH AND INVESTMENTS (CONTINUED)
On June 30, 2014, the book value approximated the fair value of the investments, therefore no unrealized gain or loss was recorded for the year.
The following table provides information about the interest rate risks associated with the City’s deposits and investments.
Inve stme nt Ma turities Credit Risk Rating Fa ir Value
U.S. Gove rnme nt bonds Jul 2014 - Jun 2015 S&P AA+6,201,289$
U.S. Gove rnme nt bonds Jul 2015 - Jun 2016 S&P AA+2,129,038
U.S. Gove rnme nt bonds Jul 2017 - Jun 2018 S&P AA+47,365,190
U.S. Bank Municipa l Inve stor Account N/A N/A 1,160,450
U.S. Bank ICS Account N/A N/A 3,000,658
STIP Account N/A N/A 8,000,000
Demand de pos it s N/A N/A 1,680,114
Petty cash N/A N/A 6,045
69,542,784$
Credit risk is defined as the risk that an issuer or other counterpart to an investments will not fulfill its obligation. The above credit risk rating
indicates the probability that the issuer may default in making timely principal and interest payments. The credit ratings presented in the previous
tables are provided by Standard and Poor’s Corporation (S&P). The City’s investment policy is to hold investments to maturity with the
contractual understanding that these investments are low risk, locked in to a guaranteed rate of return, are therefore not impacted significantly by
changes in short term interest rates. The City has no formal policy relating to interest risk and no formal policy relating to credit risk.
NOTE 3. PROPERTY TAX AND SPECIAL ASSESSMENTS REVENUE AND RECEIVABLES
Property Taxes
Real property taxes are assessed and collected each fiscal year according to the following property tax calendar:
Lien Date:December 1 for the 1st installment and June 1 for the 2nd installment
Levy Date:November 1
Due Dates:November 30th for the 1st installment and May 31 for the 2nd installment
Personal property taxes are assessed on January 1 of each year and billed in May, with payment due within thirty days.
Gallatin County collects all property taxes on behalf of the City and remits collections, including penalties and interest, on a monthly basis. The
County assesses a delinquency penalty of 2%. If taxes become delinquent the County tax collector may sell the property to collect taxes due plus
.83% per month interest.
55
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 3.PROPERTY TAX AND SPECIAL ASSESSMENTS REVENUE AND RECEIVABLES (CONTINUED)
In the fund financial statements, the City accrues as receivable all property taxes received during the first sixty (60) days of the new fiscal year
from Gallatin County, in accordance with the modified accrual basis. In the government-wide financial statements, all taxes billed, but not yet
collected are accrued in accordance with the full accrual basis of accounting, as described in Note 1.
Special Assessments
Special assessments receivable represent the uncollected amounts levied against benefited property for the cost of local improvements.
Assessments are payable over a period of 18 to 20 years and bear interest of 2.5% to 5.75% per annum. Recognition of the revenues from these
assessments has been deferred until both measurable and available in governmental funds. In the Government-Wide Financial Statements,
however, these amounts are reported as revenues in the period they are levied. Once received, the monies will be used to meet the annual debt
service requirements on related bonds and notes payable.
NOTE 4.DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources in the General Fund represent outstanding general property taxes at June 30, 2014. These amounts are reported as
revenue in the Government-Wide Financial Statements in the period in which they are levied. Deferred revenues in Special Revenue Funds
represent either revenues received but not considered earned or amounts to be received in the future that are recorded as receivables but not yet
earned. The deferred revenues in Debt Service Funds represent future assessments to be received to meet the related debt obligation.
NOTE 5.PREPAID RENT (OPERATING LEASE)
On October 22, 1992, the City signed a memorandum of understanding with Gallatin County, Montana, in which the City agreed to lease space
from the County's Law and Justice Center for the City Police Department and Municipal Court. The City paid to the County $765,000 during the
renovation of the building which started 1993. The $765,000 constitutes rent for four rental terms of ten years each. During the term of the lease
and renewal of the lease, the principal balance of $765,000 will be decreased by equal annual rental payments in the amount of $19,125. If the
City and County mutually agree to terminate the lease after the second ten-year term, the County will refund $382,500, to the City for the unused
portion of the rent. The lease began when renovations were complete on November 1, 1994. For the year ended June 30, 2014, rent expenditure
was $19,125 regarding this lease.
56
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 6. NOTES RECEIVABLE
The City had the following loans in funds:
Spe cial Revenue Funds :
Economic Developme nt Loa n Fund 212,056$
Community Hous in g Fund 62,500$
Housin g Revolving Loa n Fund 16,721$
Departme ntal Spe cial Revenue s 35,293$
Ente rprise Funds
Parkin g Fund 15,924$
NOTE 7.CAPITAL ASSETS
In accordance with GASB 34, the City has reported all capital assets, with the exception of pre-July 1, 2001 infrastructure in the Government-
Wide Statement of Net Position. For the year ended June 30, 2014, depreciation expense on capital assets was charged to the functions and
programs as follows:
Go ve rnme nta l Activities:
Ge ne ral Gove rnme nt 284,427$
Public Safety 543,331
Public Servic es 2,440,821
Public Welfare 692,780
Tota l de preciatio n expe ns e - gove rnme nta l activ it ie s 3,961,359$
Busine ss-type Activit ie s:
Parking 285,490$
Storm Water 29,644
Water 2,034,968
Waste Water 2,399,070
Solid Waste 149,465
Tota l de preciatio n expe ns e - bus in ess-type activ it ie s 4,898,637$
57
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 7.CAPITAL ASSETS (CONTINUED)
All capital assets of the City are depreciable with the exception of land, and construction in process, when applicable. Capital assets activity of the
City for the year ended June 30, 2014,consisted of the following:
Ju ne 30, 2013 Additions Dis posals Tra ns fers Ju ne 30, 2014
Go vern me ntal A ctivities :
No n-depreciable
La nd 10,483,143$ 644,410$ -$ -$ 11,127,553$
Depreciab le
Bu ild in gs 31,205,271 925,851 (12,047) - 32,119,075
Ot her s tructures a nd improveme nts 1,210,726 - - - 1,210,726
Machinery and eq uipment 9,643,097 1,878,386 (292,748) - 11,228,735
Pro perty under c apital le as e 329,435 - - - 329,435
Ve hicles 3,096,305 334,825 (150,034) - 3,281,096
In fra stru cture 133,033,910 8,734,113 - - 141,768,023
Total 189,001,887 12,517,585 (454,829) - 201,064,643
Accu mu la ted depreciation (89,278,117) (3,961,359) 447,300 - (92,792,176)
To tal g overn me ntal activities 99,723,770$ 8,556,226$ (7,529)$ -$ 108,272,467$
Bu siness-type A ctivities :
No n-depreciable
La nd 4,934,574$ -$ -$ -$ 4,934,574$
Water rig hts 2,065,142 - - - 2,065,142
Depreciab le
Bu ild in gs 108,858,591 5,641,160 (2,863,831) - 111,635,920
Ot her s tructures a nd improveme nts 30,821,362 (13,229) - 30,808,133
Machinery and eq uipment 6,712,063 100,377 (14,605) - 6,797,835
Ve hicles 1,846,618 21,750 (19,798) - 1,848,570
In fra stru cture 252,642,442 8,154,724 - - 260,797,166
Total 407,880,792 13,918,011 (2,911,463) - 418,887,340
Accu mu la ted depreciation (172,233,244) (4,898,637) 2,911,463 - (174,220,418)
To tal b us in es s-type activities 235,647,548$ 9,019,374$ -$ -$ 244,666,922$
To tal capit al assets 335,371,318$ 17,575,600$ (7,529)$ -$ 352,939,389$
58
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 7.CAPITAL ASSETS (CONTINUED)
Changes in accumulated depreciation are as follows for the year ended June 30, 2014:
June 30, 2013 Additions Dis posals Trans fers June 30, 2014
Go vern me ntal A ctivities :
Bu ild in gs (12,657,391)$ (818,641)$ 4,518$ -$ (13,471,514)$
Ot her s tructures and improveme nts (1,003,889) (28,275) - - (1,032,164)
Machinery and equipment (7,687,605) (587,069) 292,748 - (7,981,926)
Property under capital le as e (116,652) (25,195) - - (141,847)
Ve hicles (2,706,712) (151,501) 150,034 - (2,708,179)
In frastru cture (65,105,868) (2,350,678) - - (67,456,546)
Total g overn me ntal activities (89,278,117) (3,961,359) 447,300 - (92,792,176)
Bu siness-type A ctivities :
Bu ild in gs (10,502,982) (1,953,313) 2,863,831 - (9,592,464)
Ot her s tructures and improveme nts (26,357,249) (525,221) 13,229 - (26,869,241)
Machinery and equipment (5,706,077) (255,577) 14,605 - (5,947,049)
Ve hicles (1,714,056) (34,840) 19,798 - (1,729,098)
In frastru cture (127,952,880) (2,129,686) - - (130,082,566)
Total b usin es s-type activities (172,233,244) (4,898,637) 2,911,463 - (174,220,418)
Total accumu la ted depreciation (261,511,361)$ (8,859,996)$ 3,358,763$ -$ (267,012,594)$
NOTE 8.COMPENSATED ABSENCES
The City’s policy relating to compensated absences is described in Note 1. The current portion is that which is expected to be paid within one
year. This amount is estimated based on past trends and expected upcoming events. Actual amounts could differ. Historically, compensated
absences have been liquidated primarily b y the general fund and the proprietary funds.
59
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 8.COMPENSATED ABSENCES (CONTINUED)
Ba la nce
June 30, 2013 In curred Satisfie d
Ba la nce
Ju ne 30, 2014
Co mp ensated absences
Go vernmental A ctivities 1,544,494$ 1,362,564$ (1,198,191)$ 1,708,867$
Bu siness-type Activities 476,581 391,128 (349,698) 518,011
To tal compensated absences 2,021,075$ 1,753,692$ (1,547,889)$ 2,226,878$
Du e wit hin one
year
Du e after o ne
year Total
Co mp ensated absences
Go vernmental A ctivities 1,198,200$ 510,667$ 1,708,867$
Bu siness-type Activities 349,700 168,311 518,011
To tal compensated absences 1,547,900$ 678,978$ 2,226,878$
NOTE 9.LONG-TERM DEBT
Governmental Activities Long Term Debt
The following is a summary of long-term debt transactions of the City’s governmental activities for the year ended June 30, 2014:
Balance
June 30, 2013 Issuances Re pa yme nts
Balance
June 30, 2014
Ge ne ral oblig ation bonds 2,445,000$ 9,900,000$ (660,000)$ 11,685,000$
Ta x in crement fina nc in g bonds 5,195,000 - (180,000) 5,015,000
Spe cial assessment de bt 1,659,500 - (474,000) 1,185,500
Intercap note s payable 1,198,823 - (112,427) 1,086,396
Tota ls 10,498,323$ 9,900,000$ (1,426,427)$ 18,971,896$
60
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 9.LONG-TERM DEBT (CONTINUED)
Governmental Activities Long Term Debt (Continued)
The above long-term debt of the City’s governmental activities is presented in the accompanying Statement of Net Position as follows:
Current P ortion
(Due within
one year)
Long-term
Portion
(Due after one
ye ar)
Total
Long Te rm
Debt
Ge ne ral oblig atio n bonds 465,000$ 11,220,000$ 11,685,000$
Ta x in crement fina nc in g bonds 190,000 4,825,000 5,015,000
Spe cial assessment de bt 25,000 1,160,500 1,185,500
Inte rcap notes payable 123,122 963,274 1,086,396
803,122$ 18,168,774$ 18,971,896$
General Obligation Bonds -The City issues general obligation bonds to provide funds for the acquisition and construction of major capital assets.
General obligation bonds are direct obligations of the City and are backed by the full faith and credit of the City. General obligation bonds
currently outstanding are as follows:
Interest Rate Amount
Due within one
ye ar
Ge ne ral Oblig atio n Refunding Bonds, series 2012
serial matur it ie s through 2021 1.50%1,785,000$ 240,000$
Ge ne ral Oblig atio n TOP Bonds , Se ries 2013
serial matur it ie s through 2034 2.00%9,900,000 225,000
Tota l ge ne ral obligatio ns bonds 11,685,000$ 465,000$
61
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 9.LONG-TERM DEBT (CONTINUED)
Governmental Activities Long Term Debt (Continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Prin cipa l Interest Tota l
Year ending June 30,
2015 465,000$ 522,556$ 987,556$
2016 640,000 346,600 986,600
2017 655,000 332,025 987,025
2018 665,000 321,925 986,925
2019 795,000 324,103 1,119,103
2020-2024 2,195,000 1,074,772 3,269,772
2025-2026 6,270,000 1,572,774 7,842,774
11,685,000$ 4,494,755$ 16,179,755$
Tax Increment Financing Bonds -Tax Increment Financing (TIF) Bonds are not general obligations, but are special limited obligations of the City.
The Series 2007 Bonds, the premium, and the interest thereon are not a charge against the general credit or taxing powers of the City. The bonds
are payable solely, and equally and ratably from the tax increment revenues received by the City from its Downtown Bozeman Improvement
District. If the incremental revenues are insufficient to pay the principal and interest due on the TIF bonds when due, such payment shortfall shall
not constitute a default under the TIF agreement. If and when the incremental revenues are sufficient, the City shall pay the amount of any
shortfall to the paying agent and registrar without any penalty interest or premium thereon. Due to the uncertainty of the future tax increment
receipts, future payments on the TIF bonds may vary from the summary of debt service requirements Annual debt services requirements to
maturity for the TIF bonds are as follows:
Principa l Inte rest Tota l
Year ending June 30,
2015 190,000$ 235,088$ 425,088$
2016 195,000 228,288 423,288
2017 205,000 220,488 425,488
2018 210,000 212,288 422,288
2019 220,000 203,573 423,573
2020-2024 1,255,000 736,981 1,991,981
2025-2029 1,585,000 424,915 2,009,915
2030-2032 1,155,000 192,750 1,347,750
5,015,000$ 2,454,371$ 7,469,371$
62
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 9.LONG-TERM DEBT (CONTINUED)
Governmental Activities Long Term Debt (Continued)
Special Assessment Debt -Special assessment bonds are payable from the collection of special assessments levied against benefited property
owners within each special improvement district. To the extent that such special assessment collections are not sufficient to make the required
debt service payments, the City is obligated to levy and collect a general property tax on all taxable property in the City to provide additional
funding for the debt service payments. The cash balance in the SID Revolving Fund must equal at least 5% of the principal amount of bonds
outstanding. If the cash balance is less than 5%, a levy is required to bring the cash balance to the required minimum.
The City has issued various special assessment bonds with various maturities through 2025 at interest rates ranging from 2.5% to 5.75%. In
addition, the City has issued two notes payable to finance special assessment projects. The following is a schedule of changes in special
assessment debt:
Bala nc e
June 30, 2013 Issuances Repa yme nts
Bala nc e
June 30, 2014
Spe cial assessment bonds 1,325,000$ -$ (450,000)$ 875,000$
Note Payable to Department of Natural
Resources and Cons erva tion, #WRF-05067 63,500 - (4,000) 59,500
Note Payable to Department of Natural
Resources and Cons erva tion, #SRF-05132 271,000 - (20,000) 251,000
1,659,500$ -$ (474,000)$ 1,185,500$
Annual debt service requirements to maturity for special assessment notes payable are as follows:
Notes Payable
Prin cipa l Interest Total
Year ending June 30,
2015 25,000$ 6,080$ 31,080$
2016 28,000 5,570 33,570
2017 26,500 5,020 31,520
2018 30,000 4,470 34,470
2019 29,500 3,875 33,375
2020-2024 171,500 9,765 181,265
310,500$ 34,780$ 345,280$
63
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 9.LONG-TERM DEBT (CONTINUED)
Governmental Activities Long Term Debt (Continued)
Annual debt service requirements to maturity for special assessment bonds are as follows:
Bonds
Year ending June 30,
2017 60,000$
2018 60,000
2019 65,000
2020-2024 480,000
2025-2029 210,000
875,000$
Substantially all special assessment bonds mature eighteen to twenty years after the date of issuance but are redeemable at the option of the City
whenever cash is available in the respective funds for each issue. The City follows the policy of early redemption on these bonds. Accordingly, a
schedule of future interest payments through maturity of the bonds is deemed to be not meaningful and has been excluded.
The net revenues of the water fund have been pledged as collateral to secure the debt service related to SID 665. This collateral is subordinate to
commitments made prior to July 12, 1993 to pledge this collateral as a guarantee of the payment of other debt. In the event that the resources
available to service debt related to SID 665 are insufficient, the City shall transfer amounts from the water fund to satisfy this obligation. The
District will be under no obligation to reimburse the water fund for any such transfer. At this time, the City does not anticipate the need to make
any such transfers.
Intercap Loans –The City entered in a loan agreement with the Montana Board of Investments to partially finance the reconstruction of South
Eight Avenue. This intercap loan payable had a balance outstanding at June 30, 2014 as follows:
Due within one
year
Due after one
ye ar Tota l
Note payable to Montana Board of Inve stments in une ve n
semi-annua l in stallments inc lu ding inte rest at variable rates
through Augus t 2022 123,122$ 963,274$ 1,086,396$
64
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 9.LONG-TERM DEBT (CONTINUED)
Governmental Activities Long Term Debt (Continued)
The debt service requirements for the intercap loan at June 30, 2014 are as follows:
Principa l Interest Total
Year ending June 30,
2015 123,122$ 31,670$ 154,792$
2016 124,355 27,867 152,222
2017 125,602 24,228 149,830
2018 126,862 20,450 147,312
2019 128,134 16,635 144,769
2020-2023 458,321 27,620 485,941
$ 1,0 86,396 $ 148,470 $ 1,234,866
Business-type Activities Long Term Debt
Revenue Bonds -The City also issues bonds where the City pledges income derived from the acquired or constructed assets to pay debt service.
Water Revenue Bonds
Water revenue bonds outstanding at June 30, 2014 are as follows:
Balance
June 30, 2013 Issuances
Repayme nt s
and
settlements
Balance
June 30,
2014
Due in One
Year Long Te rm
Portion
State Revolving Fund Reve nue Bond - 12247
Se ries 2011A , serial maturit ie s through 2032, 3% interest rate $ 9,491,000 $ - $ (390,000) $ 9,101,000 $ 403,000 8,698,000$
State Revolving Fund Reve nue Bond - 13291
Se ries 2011B , serial maturit ie s thr ough 2032, 3% interest rate 4,260,878 5,139,122 (361,000) 9,039,000 377,000 8,662,000
$ 13,751,878 $5,139,122 $ (751,000) $18,140,000 $ 780,000 $17,360,000
The revenue bond ordinances specifies that the City shall establish various restricted asset accounts and distribute the net revenues for the water
fund to the restricted asset accounts and set user rates at levels which will generate minimum net revenues, as defined. The revenue bond
ordinances specify that City management and/or the City Commission shall take corrective actions to bring the City into compliance with the
revenue bond ordinances, if necessary, and that bondholders shall have the right to institute proceedings, judicial or otherwise, to enforce the
covenants of the revenue bond ordinances. The City is in compliance with applicable covenants as of June 30, 2014.
65
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 9.LONG-TERM DEBT (CONTINUED)
Business-type Activities Long Term Debt (Continued)
Water revenue bond debt service requirements to maturity are as follows:
Prin cipa l Inte rest Tota l
Year ending June 30,
2015 780,000$ 360,710$ 1,140,710$
2016 807,000 344,980 1,151,980
2017 833,000 328,710 1,161,710
2018 862,000 311,910 1,173,910
2019 891,000 294,520 1,185,520
2020-2024 4,930,000 1,190,520 6,120,520
2025-2029 5,827,000 658,450 6,485,450
2030-2032 3,210,000 100,050 3,310,050
$ 18,140,000 $ 3,589,850 $ 21,729,850
Due within one year $ 780,000
Due after one year 17,360,000
$ 18,140,000
The revenue bond ordinance specifies that the City shall establish various restricted asset accounts and distribute the net revenues for the water
fund to the restricted asset accounts and set user rates at levels which will generate minimum net revenues, as defined. The revenue bond
ordinances specify that City management and/or the City Commission shall take corrective actions to bring the City into compliance with the
revenue bond ordinances, if necessary, and that bondholder shall have the right to institute proceedings, judicial or otherwise, to enforce the
covenants of the revenue bond ordinances. The City is in compliance with applicable covenants as of June 30, 2014.
66
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 9.LONG-TERM DEBT (CONTINUED)
Business-type Activities Long Term Debt (Continued)
Waste Water Revenue Bonds
Waste Water revenue bonds outstanding at June 30, 2014 are as follows:
Inte rest
Rate Balance
June 30, 2013
Repayme nts
and
settlements
Ba la nc e
June 30,
2014
Due in One
Year Long Term
Portion
Wa ste Water Sta te Revolving -10252
Se ries 2010B, serial maturities through 2030 1.75% $ 304,000 $ (16,000) $ 288,000 16,000$ 272,000$
Wa ste Water Reclamation Fa cilit y Revenue Bonds - 10230,
Se ries 2010D , serial maturities thr ough 2030 3.00% 8,308,000 (395,000) 7,913,000 407,000 7,506,000
Wa ste Water Reclamation Fa cilit y Revenue Bonds - 10262,
Se ries 2010F, serial maturit ie s through 2030 3.00% 729,000 (34,000) 695,000 34,000 661,000
Wa ste Water Reclamation Fa cilit y Revenue Bonds ARRA A- 10251,
Se ries 2010A , serial maturities thr ough 2030 0.00% 390,700 (390,700) - - -
Wa ste Water Reclamation Fa cilit y Revenue Bonds ARRA A- 10261,
Se ries 2010E, serial maturit ie s through 2030 0.00% 384,000 - 384,000 - 384,000
Wa ste Water Reclamation Fa cilit y Revenue Bonds - 11291,
Se ries 2010C, serial maturities through 2031 3.00% 885,081 (38,081) 847,000 40,000 807,000
Wa ste Water Reclamation Fa cilit y Revenue Bonds - 11292,
Se ries 2010G, serial maturities through 2031 3.00% 2,726,338 (134,773) 2,591,565 153,000 2,438,565
Wa ste Water Reclamation Fa cilit y Revenue Bonds - 11281
Se ries 2010H , serial maturities thr ough 2031 3.00% 8,774,000 (467,000) 8,307,000 395,000 7,912,000
$ 22,501,119 $(1,475,554) $21,025,565 $1,045,000 $19,980,565
67
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 9.LONG-TERM DEBT (CONTINUED)
Business-type Activities Long Term Debt (Continued)
Waste Water Revenue Bonds (Continued)
Waste water revenue bond debt service requirements to maturity are as follows:
Prin cipa l Inte rest Tota l
Year ending June 30,
2015 1,045,000$ 423,320$ 1,468,320$
2016 1,079,000 402,300 1,481,300
2017 1,113,000 380,600 1,493,600
2018 1,150,000 358,184 1,508,184
2019 1,185,000 335,059 1,520,059
2020-2024 6,500,000 1,302,770 7,802,770
2025-2029 7,161,565 586,685 7,748,250
2030-2032 1,792,000 24,696 1,816,696
$ 21,025,565 $ 3,813,614 $ 24,839,179
Due within one year $ 1,045,000
Due after one year 19,980,565
$ 21,025,565
Industrial Revenue and Private Activity Bonds
The City issues tax exempt industrial revenue and private activity bonds to finance construction of facilities within the City which it sells on
installment contracts to the facilities' users. The bonds and the interest payable thereon are not obligations of the City and do not constitute or give
rise to a pecuniary liability or contingent liability of the City or a charge against the general credit or taxing power of the City. The bonds are
issued under and collateralized by the indentures and are payable solely from the payments to be made pursuant to the loan agreements between
the City and the facilities users. The bonds are not a lien on any of the City’s properties or revenues, other than the facilities for which they were
issued.
To provide financial assistance for the acquisition and improvements of the building occupied by a private elementary school, the City has issued
a Private Activity Revenue Bond.This bond is secured by the property financed and is payable solely from payments received on the underlying
mortgage loan.Upon repayment of the bond, ownership of the acquired facility transfers to the private-sector entity served by the bond issuance.
Neither the City nor any political subdivision thereof is obligated in any manner for repayment of the bond.Accordingly, the bond is not reported
as a liability in the accompanying financial statements. As of June 30, 2014, the Revenue Bond outstanding had an aggregate principal amount
payable of $305,964.
68
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 10. CAPITAL LEASE OBLIGATIONS
On February 24, 2009, the City entered into a lease for an Elgin Street Sweeper. The lease term is five years payable in annual installments of
$27,900 at 6.3%. The total amount capitalized of $143,905 represents the present value of the future lease payments. The payments for this
obligation are being recorded in the street maintenance fund. This lease was paid off during the year ended June 30, 2014.
On April 30, 2012, the City entered into a lease for an Elgin Street Sweeper. The lease term is five years payable in annual installments of $33,495
at 3.3%. The total amount capitalized of $185,530 represents the present value of the future lease payments. The payments for this obligation are
being recorded in the street maintenance fund.
The capital lease balance outstanding for governmental activities at June 30, 2014 is as follows:
Balance
June 30, 2013 Issuances Repayme nts
Bala nc e
June 30, 2014
Street Sweeper $ 26,315 $ - $ (26,315) $ -
2012 Street Sweeper 123,577 - (29,401) 94,176
$ 149,892 $ - $ (55,716) $ 94,176
The following is a schedule, by year, of future minimum lease payments under capital lease, together with the present value of minimum lease
payments at June 30, 2014:
Gove rnme ntal
Activ it ie s
Year ending June 30,
2015 $ 33,495
2016 33,495
2017 33,495
Less amount representing in te rest (6,309)
Present va lue of future min im um le ase payme nts 94,176$
The property under capital lease for governmental activities and the corresponding accumulated depreciation at June 30, 2014, is as follows:
Gove rnme ntal
Actvities
Ma chin ery and equipme nt 329,435$
Less: accumulated depreciation (141,847)
187,588$
69
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 11.CLASSIFICATION OF NET POSITION
In the Government-Wide Financial Statements, net position are classified in the following categories:
Net Investment in Capital Assets –This category groups all capital assets, including infrastructure in future years, into one component
of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or
improvement of these assets reduce this category.
Restricted Net Position –This category represents external restrictions imposed by creditors, grantors, contributors or laws or
regulations of other governments and restrictions imposed by law through constitutional provision or enabling legislation. Net
Position is presented as restricted by major purpose.
Unrestricted Net Position –This category represents the net position of the City which are not restricted for any project or other
purpose.
In the Fund Financial Statements, commitments and assignments segregate portions of fund balance that are either not available or have been
earmarked for specific purposes. The various commitments and assignments are established by actions of the City Commission and
Management and can be increased, reduced or eliminated by similar actions. Refer to Note 25 for a further disclosure related to net position
classifications.
NOTE 12.DEFICIT FUND BALANCES
At June 30, 2014, no individual reporting funds had deficit fund balances.
NOTE 13.DEFERRED COMPENSATION PLAN
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan,
available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available
to employees until termination, retirement, death, or unforeseeable emergency.
In accordance with GASB Statement No. 32, the City does not report any balances related to the deferred compensation plan, as these
amounts represent neither assets nor liabilities to the City, and the plan is administered by an independent third party.
70
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 14.EMPLOYEE BENEFIT PLANS
Plan Description and Provisions
All City of Bozeman full-time employees participate in one of three statewide cost-sharing multiple-employer retirement benefit plans
administered by the Public Employees Retirement Division (PERD). Contributions to the three plans are as required by State statute. Fiscal
years 2014 and 2013 total payroll and covered payroll for all retirement plans were $19,562,240 and $18,551,066, respectively. Financial
information for all three plans is reported in the Public Employees' Retirement Board's published Comprehensive Annual Financial Report for
the fiscal year end. It is available from the PERD at 100 North Park Avenue, Suite 220, P.O. Box 200131, Helena, MT 59620-0131. The
authority to establish, amend and provide cost of living adjustments to all three plans is assigned to the State legislature. The authority to
establish and amend contribution rates to all three plans is also assigned to the State legislature.
In accordance with GASB Statement 24, on-behalf payments of fringe benefits and salaries for the City of Bozeman are recognized as
revenues and expenditures in the fund financial statements during the period.
Public Employees' Retirement System (PERS)
All City employees, except firefighters and police officers, are provided pension benefits by this multi-employer plan. Funding is provided
by participating units of government and their covered employees. Plan members are required to contribute 7.9% of their compensation
(6.9% if hired prior to July 1, 2011). The City contributes 8.07% and the State of Montana contributes 0.1% (on behalf of the City), of
members’ compensation. One hundred percent of required contributions were made for all three years. Total covered payroll for the City and
total contributions to the plan by the employees and by the City for the year ended June 30, 2014 and the two previous years is presented in
the following table:
June 30 Payr oll Contributio ns Contributio ns Contributions
2014 12,352,840$ 975,874$ 996,874$ 12,353$
2013 11,471,294 793,196 811,021 11,471
2012 11,066,629 768,957 782,411 11,067
Defined Benefit Retirement Plan (DBRP)-Participants become eligible for benefits after age 60 and 5 years of service, after age 65
regardless of service, or 30 years of service regardless of age. The benefit is 1/56 of the final compensation for each year of credited service,
paid as a modified cash refund annuity. A participant is eligible for early retirement benefits after age 50 and 5 years of service or after 25
years of service regardless of age. Rights become vested after 5 years of service.
Defined Contribution Retirement Plan (DCRP) -Participants may elect the defined contribution plan, in which the contributions into the plan
are known, but the benefit is not. The retirement benefit received is based upon account balance, which is determined by contributions made
plus investment earnings, or losses, less administrative costs.The total number of participating employees in both the defined benefit and
defined contribution plans at the City at June 30, 2014 is 239.
71
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 14.EMPLOYEE BENEFIT PLANS (CONTINUED)
Firefighters' Unified Retirement System (FURS)
Funding is provided by units of local government, their covered employees and the State of Montana. Plan members are required to contribute
10.7% of monthly compensation, since all employees have elected to be covered under the guaranteed annual benefit adjustment (GABA). The
City contributes 14.36% and the State of Montana contributes 32.61% of members' compensation. One hundred percent of required contributions
were made for all three years. On-behalf payments of fringe benefits for the government’s employees were recognized as revenues and
expenditures/expenses during the period. Total covered payroll for the City and total contributions to the plan by the employees and by the City
for the year ended June 30, 2014 and the two previous years is presented in the following table:
Year Ende d Cove red Employe e Employe r Sta te
June 30 Payroll Contributio ns Contributio ns Cont ributions
2014 3,150,081$ 337,059$ 452,352$ 1,027,241$
2013 2,862,805 306,320 411,099 933,561
2012 2,876,756 307,596 413,102 938,110
Participants are eligible for benefits after 5 years of service and age 50. The benefit for participants hired prior to July 1, 1981 who have attained
50 years of age and 20 years of service is 50% of the monthly salary last received by the participant. Also, an additional 1% for each year of
service in excess of 20 years, not to exceed a maximum of 60% of the recipient's latest monthly salary. A participant hired on or after July 1,
1981, or who retires prior to completion of 20 years of service, receives a benefit equal to 2.5% of average salary for each year of service, not to
exceed 60%. Salary is averaged over the last 36 months for those hired on or after July 1, 1981. Rights become vested after 5 years of service.
The total number of participating employees at the City of Bozeman at June 30, 2014 is 45.
Municipal Police Officers' Retirement System (MPORS)
Funding is provided by local units of government, their covered employees, and the State of Montana. Plan members are required to contribute
9% of their compensation. The City contributes 14.41% and the State of Montana contributes 29.37% of members' compensation. One hundred
percent of required contributions were made for all three years. Total covered payroll for the City and total contributions to the plan by the
employees and by the City for the year ended June 30, 2014 and the two previous years is presented in the following table:
Year Ende d Cove red Employe e Employe r Sta te
June 30 Payroll Contributio ns Contributio ns Cont ributions
2014 4,059,319$ 365,339$ 584,948$ 1,192,222$
2013 4,216,967 379,527 607,665 1,238,523
2012 3,474,328 312,047 500,651 1,050,410
72
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 14.EMPLOYEE BENEFIT PLANS (CONTINUED)
Municipal Police Officers' Retirement System (MPORS)(Continued)
Participants are eligible for retirement benefits after 20 years of service and age 50. The minimum age requirement does not apply to
participants first employed prior to July 1, 1975. The benefit is 1/2 of average monthly salary during the highest 36 consecutive months of
earnings plus 1% of average monthly salary for each additional year of service in excess of 20 years, to a maximum of 60%. Benefits are paid
as a modified cash refund annuity. Rights become vested after 5 years of service. The total number of participating employees at the City at
June 30, 2014 is 60.
NOTE 15.POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS
In addition to providing a deferred compensation plan, the City provides other post-employment benefits (OPEB) allowing its retired
employees to continue their medical, dental and vision care coverage through the City's group health plan until death (Retiree Health Plan).
The plan allows retirees to participate, as a group, at a rate that does not cover all of the related costs. This results in the reporting of an
implied rate subsidy in the financial statements and footnotes. The City's contract with Allegiance Benefits details the plan eligibility.
MMIA is the administrator of the benefit plan which covers both active and retired members. In accordance with MCA 2-18-704, the City’s
retirees may continue coverage for themselves and their covered eligible dependents if they are eligible for public employees' retirement by
virtue of their employment with the City of Bozeman. The City's current labor contracts do not include any obligations for payments to
retirees. The City also allows terminated employees to continue their health care coverage for 18 months past the date of termination as
required by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).
OPEB is recorded on an accrual basis for all enterprise and internal service funds. OPEB is recorded on a modified accrual basis for the
governmental funds. Plan contributions are recognized in the period in which the contributions are made. Benefits and refunds are
recognized when due and payable in accordance with the terms of the plan.
Funding Policy. The plan is unfunded by the City and plan members receiving benefits contribute 100 percent of their cost of the benefits on
a pay-as-you-go basis. The City plan’s administratively established retiree medical, dental and vision premiums vary between $37 and $912
per month depending on the medical plan selected, family coverage, and Medicare eligibility. The plan provides different coinsurance
amounts depending on whether members use preferred, non-preferred, or other hospitals. For a single individual, after an annual deductible
of $300 for most non-Medicare-eligible retirees, the plan reimburses 70% for the first $500 medical claims and 100% thereafter. For a
family, after an annual deductible of $600 for most non-Medicare-eligible retirees, the plan reimburses 70% for the first $1,000 medical
claims and 100% thereafter. For fiscal year ended June 30, 2014, the City has 35 retired members receiving benefits.
73
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 15.POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
Annual OPEB Cost and Net OPEB Obligation. The City’s annual other post-employment benefit (OPEB) cost (expense) is calculated based
on the annual required contribution of the employer (ARC). The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and to amortize any unfunded actuarial liabilities (or funding excess) over a closed amortization
period not to exceed thirty years.
The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and
changes in the City’s net OPEB obligation to the Retiree Health Plan:
Annua l required contribution 252,049$
Inte rest on ne t OPEB oblig atio n 73,679
Adjustment to annua l require d contributio n (106,521)
Annua l OPEB cos t (expe ns e)219,207
Contributio ns made (131,104)
Inc rease in ne t OPEB oblig atio n 88,103
Net OPEB oblig atio n - begin ning of year 1,841,971
Net OPEB oblig atio n - end of ye ar 1,930,074$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for fiscal year ended
June 30, 2014 and the two preceding fiscal years were as follows:
Percentage of
Fiscal Year Annua l Annua l OPEB Cost Net OPEB
Ende d OPEB Cost Contributed Obligatio n
June 30, 2012 234,397$ 48.33%1,729,462$
June 30, 2013 221,212$ 49.14%1,841,971$
June 30, 2014 219,207$ 59.81%1,930,074$
74
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 15.POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
The June 30, 2014 year end OPEB obligation is reported in the City’s funds as follows:
Func tions /P rogr ams Expe ns es
Primary Gove rnme nt:
Gove rnme ntal activ it ie s:
Ge ne ral gove rnme nt 13,892$
Public safety 26,603
Public servic e 6,156
Public welfare 22,371
Total gove rnme nta l activ it ie s 69,022
Busine ss-type activ it ie s:
Water 6,589
Waste water 7,290
Solid waste 3,048
Parking 1,508
Storm water 646
Total bus in ess-type activ it ie s 19,081
Total primary gove rnme nt 88,103$
Funded Status and Funding Progress. The projection of future benefit payments for an ongoing plan involves 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 statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liabilities for benefits. The City has elected not to fund this liability.
75
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 15.POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
SCHEDULE OF FUNDING PROGRESS
UA AL a s a
Actuaria l Actuaria l Actuaria l Un fu nded Fu nded Co vered Perc entage of
Va lu ation Va lu e of Accrued Liabilit y AAL (UA AL)Ra tio Pa yroll Co vered Pa yroll
Da te Assets (a)(A AL) (b )(b -a )(a /b)(c ) (b -a )/c)
7/1/2011 -$ 2,203,253$ 2,203,253$ 0.0%12788780 17.2
7/1/2013 -$ 2,002,345$ 2,002,345$ 0.0%No t availa ble No t availa ble
Actuarial Methods and Assumptions. The City’s actuarial valuation is completed on a biennial frequency, provided no significant events have
occurred warranting new measurement. The City completed the valuation for fiscal year 2013, with an estimate provided for fiscal year
2014.For fiscal year 2014, an estimated valuation was derived based on the 2013 actual costs and participants.As a result of this biennial
valuation, we have marked the fields as “n/a” where actual financial data was not used to generate the estimate.As of July 1, 2013, the most
recent valuation date, the City’s actuarially accrued liability (AAL) for benefits was $2,202,345. The AAL by status breakdown is shown
below:
Fiscal Fiscal Fiscal
2012 2013 2014
Activ es N/A 1,223,031$ N/A
Retirees, Dependents and Surviving Spouses N/A 779,314 N/A
Total AAL N/A 2,002,345$ N/A
Normal Cos t N/A 131,013$ N/A
Impa ct on Stateme nt of Activ it ie s
Annual OP EB Cost 234,397$ 221,212$ 219,207$
Impa ct on Stateme nt of Net Assets
Assume d Contributions 113,273$ 108,703$ 131,104$
Net OPEB Oblig atio n at June 30 1,729,462$ 1,841,971$ 1,930,074$
Participa nt Informatio n
Activ es N/A 309 N/A
Retirees, Depende nts and Surviving Spouses N/A 73 N/A
Tota l N/A 382 N/A
76
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 15.POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (CONTINUED)
The following key assumptions were chosen by the City:
1.Discount Rate: 4.0%
2.Inflation Rate: 3.0%
3.Expected Long Term Rate of Return on Assets: 4.0%
4.Health Care Claim and Contribution Trend Rates: 7.5% for 2012, 7.0% for 2013, 6.5% for 2014, 6.0% for 2015, 5.5% for 2016,
5.0% for 2017, 5.0% for 2018 and thereafter.
5.Average Salary Increase: 4.0%
6.Retirement Rates: Based upon the separate rates used to value the pension obligations for Police Officers, Firefighters, and all other
employees, respectively.
7.Retiree Participation Rate: 30%
8.Marital Assumption: For future retirees, 60% of participants are assumed to be married, with husbands 3 years older than wives.
The Projected Unit Credit Actuarial Cost Method was used to determine the annual required contribution. Actuarial valuations of an ongoing
plan involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Examples,as
detailed above, include assumptions about future employment, mortality, and the healthcare cost trend. Actuarially determined amounts are
subject to continual revisions as actual results are compared with past expectations, and new estimates are made about the future. Actuarial
calculations reflect a long-term perspective. The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, is designed to present multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial liabilities for benefits. Historically, the net other post-employment benefit
obligation has been liquidated primarily by the general fund and the proprietary funds.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan
members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
This report constitutes the only analysis and presentation of the City’s post-employment benefit plan. There is no separate, audited GAAP-
basis post-employment benefit plan report.
77
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 16.JOINT VENTURE AGREEMENTS
Joint ventures are legal entities or other organizations that result in a contractual arrangement and that are owned, operated, or governed by
two or more participants. Each participant retains both an ongoing financial interest and an ongoing financial responsibility.
Joint ventures are legal entities or other organizations that result in a contractual arrangement and that are owned, operated, or governed by
two or more participants. Each participant retains both an ongoing financial interest and an ongoing financial responsibility. As of June 30,
2014, the City has entered into joint venture contractual arrangements, as described below.
911 Communication Center
The City and Gallatin County, Montana (the County) have entered into an inter-local agreement for the purposes of establishment of the
operation and financing of a 911 communication services division (the Division) for dispatch and records services, to define the relationship
of the Administrative Board with the City and County, and to establish the line of authority for personnel furnishing the communication
services to the City and County and others who may contract for the services.
Though the City has no equity interest in the Division, the City has indirect access to the joint venture’s resources, as the Division’s purpose
is of direct interest to the City, and the City has the ability to influence the management of the Division. In addition, the City and County
have agreed to pay 45% and 55% of the Division expenditures, respectively. The agreement expired December 19, 2005, and automatically
renewed until terminated by either party. Financial information regarding the Division can be obtained by contacting Shelley Vance, Gallatin
County, Clerk and Records Office, 311 West Main, Bozeman, MT 59715.
City-County Drug Forfeitures
The City and Gallatin County, Montana (the County) have entered into an inter-local agreement for the purposes of establishment of a joint
drug forfeiture account funded from drug related forfeitures, seizures and prosecutions of City and County law enforcement cases and to
establish an equitable means of distributing those funds to continue drug interdiction activities. The goal of the agreement is to make the City
and County Drug Enforcement operations less reliant on the general and public safety fund monies of the City and County. The original term
of the agreement was for a period of one year, beginning September 20, 2004 and automatically renews for a period of one year until
terminated by either party with written notice of intent to terminate. Financial information regarding the joint drug forfeiture account can be
obtained by contacting the City of Bozeman Department of Finance, 411 East Main Street, Bozeman, MT 59715.
Montana Municipal Interlocal Authority
The City and Montana Municipal Interlocal Authority (MMIA) have entered into a 20-year agreement in December 2012 to share up to $1
million in profits from the sale of city-owned property known as the Mandeville Farm. The agreement came about as part of a settlement on
legal claims from the City of Bozeman vs. MMIA litigation. A “profit” shall occur only when the City has recovered its total investment in
the property, which includes the original purchase price together with all “costs of development” as defined in the settlement agreement.
78
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 17.RESTRICTED ASSETS
At June 30, 2014, the balances of restricted asset accounts for business-type activities are as follows:
Water Fu nd
Waste Water
Fu nd
So lid W as te
Fund Pa rkin g Fu nd Total
Re stricted by revenue bond covenants
Fo r b ond reserv e 1,313,885$ 1,788,592$ -$ -$ 3,102,477$
Re stricted by ordinance
Ca sh in lie u of parkin g - - - 270,450 270,450
1,313,885$ 1,788,592$ -$ 270,450$ 3,372,927$
Bu siness-Type A ctivities
NOTE 18. INTERFUND TRANSFERS AND ASSETS/LIABILITIES
A summary of interfund transfers reported in the fund financial statements for the year ended June 30, 2014 follows:
General Fu nd
No nmajor
Go vern me ntal Total
Ge neral Fu nd -$ 2,193,678$ 2,193,678$
No nmajor Governmental 326,756 583,353 910,109
Pa rkin g En terpris e - 10,000 10,000
To tal 326,756$ 2,787,031$ 3,113,787$
T r a n s f e r s T o
Tran sfers Fro m
Transfers are used to (1) move revenues from the fund that statute or budgets requires to collect them to the fund that statute or budgets
require to expend them, (2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in
accordance with budgetary authorizations, and (3) to transfer non-restricted interest income from the permanent fund to the general fund.
79
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 18. INTERFUND TRANSFERS AND ASSETS/LIABILITIES (CONTINUED)
A summary of advances from/to other funds at June 30, 2014, is as follows:
Adva nc es to
other City
funds
Adva nc es from
othe r City
funds
Ma jo r Funds
SID Sin king Debt Se rvic e -$ 131,726$
Nonma jo r Gove rnme nta l Funds
SID Revolving Debt Se rvic e 131,726 -
131,726$ 131,726$
There are no due from/due to balances as of June 30, 2014. Interfund balances reported as due from or due to other funds are usually a result
of transfers for reporting purposes to cover negative cash balances within a fund. These transfers are reversed as cash becomes available in a
fund where cash previously had been in a deficit.
NOTE 19.RISK MANAGEMENT
The City faces a considerable number of risks of loss, including a) damage to and loss of property and contents, b) employee torts, c)
professional liability (i.e. errors and omissions), d) environmental damage, e) workers' compensation (i.e. employee injuries), and f) medical
insurance cost of employees. A variety of methods are used to provide insurance for these risks. Commercial policies, transferring all risks
of loss except for small deductible amounts, are purchased for property and content damage and professional liabilities. The City participates
in two state-wide public risk pools operated by the Montana Municipal Interlocal Authority, for workers' compensation and for tort liability.
Employee medical insurance is provided through a privately-administered, partially self-insured plan. Given the lack of coverage available,
the City has no coverage for potential losses from environmental damages.
Commercial Policies
Coverage limits and the deductibles on the commercial policies have stayed relatively constant for the last several years. The premiums for
the policies are allocated between the City's Enterprise Funds and the General Fund. Premiums are subsidized through a special purpose
property tax levy, based on total appropriations. Settled claims resulting from these risks did not exceed commercial insurance coverage
during the three years ended June 30, 2014, 2013, and 2012.
80
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 19.RISK MANAGEMENT (CONTINUED)
Public Entity Risk Pools
In 1986, the City joined together with other Montana cities to form the Montana Municipal Interlocal Authority which established a workers'
compensation plan, and a tort liability plan. Both public entity risk pools currently operate as common risk management and insurance
programs for the member governments.
The liability limits for damages in tort action are $750,000 per claim and $1.5 million per occurrence, and $12.5 million per occurrence for
any claim that is not subject to the limitations on governmental liability, as described in Montana Code Annotated Section 2-9-108 (the
Statute) or any successor statute, either as matter of law, by operation of the Statute, or by a judicial determination that the Statute is
inapplicable or is otherwise invalid, with $11,250 deductible per occurrence. State tort law limits the City's liability to $1.5 million. The City
pays premiums for its employee injury insurance coverage, which is allocated to the employer funds based on total salaries and wages. The
agreements for formation of the pools provide that they will be self-sustaining through member premiums. The tort liability plan and workers'
compensation program issued debt of $4.41 million and $6.155 million, respectively, to immediately finance the necessary insurance reserves.
All members signed a contingent note for a pro rata share of this liability in case operating revenues were insufficient to cover the debt
service; the debt was retired in 2011.
The City also owns a policy with MMIA for loss or damage to property. This is an all risk policy, essentially all property owned by the City
being insured for 100% of replacement cost, subject to a $5,000 deductible per occurrence. MMIA reinsures their property insurance with a
national municipal pool, Public Entities’ Property Insurance.
NOTE 20.CONTINGENCIES
Arnone, et al., v. City of Bozeman
This case was filed in August 2014, and is pending in the Montana Eighteenth Judicial District Court, Gallatin County. In this case, the
Plaintiffs allege that the City and its Commissioners passed an ordinance without the authority to do so. The City has filed a Motion to
Dismiss the individual commissioners. The City plans to file for a Motion for Summary Judgment by the end of 2014. At this time, it is not
possible to estimate the likelihood of success in this case. The City’s exposure would be limited to potential attorney fees incurred by the
plaintiffs.
Plaintiff v. City of Bozeman
Plaintiff alleges a grievance with the City regarding her termination. Case is scheduled for binding arbitration in 2014. The parties have
agreed to resolve this matter and are negotiating a settlement agreement. The settlement amount is not likely to be significant to the overall
financial positon of the City.
81
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 20.CONTINGENCIES (CONTINUED)
Zahara vs. Montana Firefighter Consortium, Scottsdate Ins. Co., Colony Ins. Co., et al.
The Montana Firefighter Consortium is a group of Montana municipalities (including the City of Bozeman) which conducts joint testing of
prospective firefighters. Plaintiff was tested as a prospective firefighter in the Summer of 2013, at which time Plaintiff suffered an injury.
Plaintiff alleges negligence on the part of the consortium. The case is currently pending insurance resolution. At this time, it is not possible
to determine whether there exist the potential for an unfavorable outcome or to estimate the potential range of loss.
The City is involved with several other lawsuits which arise out of the normal course of operations by the City. Management of the City
intends to vigorously defend each claim and believes no material losses will be incurred on such claims.
Story Mill Landfill Claims
The City has been named in several claims made by residential property owners located near the now closed Story Mill landfill.One of the
claimant groups has filed a complaint in the Gallatin County District Court. As of the date of these statements, the complaint has not been
served on the City.These claims are dated between January 2014 and May 2014, and allege damages incurred in connection with the
development, operation, and closure of the landfill, and the development of certain residential subdivisions in the area. Given the preliminary
status of these claims, it is not possible to estimate a likely outcome or possible loss.
On December 15, 2014, the City was made aware that the City's insurer, the Montana Municipal Interlocal Authority (MMIA), filed a
complaint for declaratory relief requesting a Montana state district court determine whether indemnity and defense exist for these claims under
the MMIA Memorandum of Liability Coverage and the XL America, Inc. supplemental pollution policy obtained by the MMIA on the City's
behalf. As of December 15, 2014 the complaint has not been served on the City.
The MMIA complaint involves the City of Bozeman, the MMIA, the MMIA's reinsurer Government Entities Mutual, Inc. and XL America,
Inc. and XL America’s affiliated companies. MMIA’s contends through the allegations in the complaint that XL America, Inc. and its
affiliated companies is obligated to provide the City defense and indemnity as well as remediation coverage. Although the MMIA is currently
providing a defense under a reservation of rights, in the complaint MMIA denies the City coverage under the MMIA Memorandum.
The City continues to assert liability coverage exists for these claims under the MMIA/XL program including both the MMIA Memorandum
and the XL America, Inc. policy and as such the City asserts indemnity and defense should be provided to the City for all claims related to the
Story Mill landfill under the MMIA/XL program. The City will continue to assert coverage exists under the XL America, In c. insurance
agreement for remediation and legal expenses.
82
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 21.SOLID WASTE LANDFILL CLOSURE AND POST-CLOSURE CARE COSTS
The City has a municipal solid waste landfill. State and Federal laws and regulations require the City to place a final cover on its landfill site
when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for 30 years after final closure. The
City stopped accepting waste effective June 30, 2008. The final capping of the cells is still pending. The City has accrued a liability for
$4,239,847, which is its estimate of future landfill closure and post-closure care costs as of June 30, 2014. This amount is based on a
Corrective Measures Assessment completed in September 2014 by a third party engineering firm, from which a remediation plan has been
adopted by the City and has been approved the Montana Department of Environmental Quality.
NOTE 22.SEGMENT INFORMATION FOR WATER ENTERPRISE FUND
The City’s Water Fund accounts for the City’s water utility operations and collection and administration of water impact fees. Segment
information for the utility operations, excluding impact fees, is as follows:
Conde ns ed Sta te me nt of Net P osit io n
Current a ssets 15,523,559$
Ca pital assets 118,900,865
Tota l assets 134,424,424$
Current lia bilit ie s 1,753,936$
Nonc ur re nt lia bilit ie s 18,708,606
Tota l lia bilit ie s 20,462,542
Net inve stme nt in capit al assets 100,760,866
Re stricted for de bt servic e 1,313,885
Unrestricted 11,887,131
Tota l ne t assets 113,961,882
Total lia bilit ie s and ne t assets 134,424,424$
83
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 22.SEGMENT INFORMATION FOR WATER ENTERPRISE FUND (CONTINUED)
Condensed Stateme nt of Revenue s, Expe ns es and Change s in Net Assets
OPERATING REVENUES AND EXPENSES
Operating reve nue s 7,871,386$
Operating expe ns es
Depreciation 1,987,791
Other ope rating 4,388,234
Total operating expe ns es 6,376,025
Operating lo ss 1,495,361
NONOPERATING REVENUES (EXPENSES)
Interest income 80,548
Interest expe ns e (429,438)
Gr ant inc ome 1,494
Ga in on sale of assets 683
Contributions of infrastructur e 3,194,445
Transfers 1,811,402
Total nonope rating revenue s 4,659,134
Change in ne t posit ion 6,154,495
Net pos it ion, beginning of year 107,807,387
Net pos it ion, end of year 113,961,882$
Conde nsed Sta te me nt of Cash Flo ws
Net cash provide d by ope rating activ it ie s 1,877,585$
Net cash flow s from capit al and rela ted fina nc in g activit ie s 1,811,402
Net cash flow s from noncapit al and financ in g activit ie s (2,350,088)
Net cash flow s from in vestin g activit ie s 80,548
Net change in cash flo ws 1,419,447
Beginning cash and equiva le nts 13,441,336
Ending cash and equiva le nts 14,860,783$
84
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 23.IMPACT FEES
On January 22, 1996, the City Commission adopted fire, water, waste water and street impact fees in Ordinance number 1414. The impact
fees were first effective on March 23, 1996. Impact fees were set at a percentage of the cost of the impact, as follows:
Origina l, as of
March 23,
1996
Change as of
Ma y 10, 1998
Change as of
Janua ry 15,
1999
Change as of
July 15, 1999
Change as of
Janua ry 1,
2013
Change as of
Ma rch 30,
2013
Fire impa ct fee 90%90%90%90%100%100%
Wa te r impa ct fee 35%50%90%90%100%100%
Wa ste water impa ct fee 35%50%90%90%100%100%
Street impa ct fee 10%10%75%90%90%100%
An applicant may obtain an Impact Fee Credit by dedication of non-site-related land or construction of non-site-related improvements.
Credits must be made before the beginning of improvement construction, must comply with the City’s Capital Improvements Program, and
must be approved by the City Commission. Credits may be used only for like-type impact fees. The full provisions for impact fee credits are
contained in Chapter 3.24 of the Bozeman Municipal Code. For proprietary type funds, the City records a liability for the impact fee credit
and capitalizes the underlying asset. For governmental-type funds,the credits are only disclosed in the footnotes. For government-wide
financial reporting the outstanding credits are reported as unearned revenue. The Water Impact Fee Fund, Street Impact Fee Fund, and
Wastewater Impact Fee Fund have recorded impact fee credits amounting to $33,232, $106,450, and $135,751, respectively, as of June 30,
2014. The Fire Impact Fee Fund does not have any outstanding credits. The following impact fee revenues were collected and
expensed/expended during fiscal year 2014:
Beginning
ba la nces Impa ct fees Other inc ome
Expe ns es,
expe nditures
and trans fers
Ending
ba la nc es
Fire 167,942$ 296,261$ 2,428$ (2,634)$ 463,997$
Wate r 842,103 1,839,502 - (1,881,695) 799,910
Waste water 274,244 1,139,448 - (1,162,555) 251,137
Streets 10,226,240 2,838,071 96,478 (3,366,825) 9,793,964
Total 11,510,529$ 6,113,282$ 98,906$ (6,413,709)$ 11,309,008$
85
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 24. POLLUTION REMEDIATION OBLIGATIONS
Jewel v. City of Bozeman / State of Montana v. City of Bozeman
This action was filed in the United States District Court for the District of Montana. The multi-count complaint reduced itself to a cost
recovery action under the Federal Superfund (CERCLA) and State Superfund (CECRA). On July 8, 1999, the City, Jewel Food Stores, In c.
and the other parties reached a final settlement agreement in this action. The settlement, in part, required Jewel Food Stores, Inc. to pay the
City of Bozeman $1,200,000, the City and Jewel to extend alternative water supply to businesses and residents in the North 19th Avenue area
of the City; and Jewel and the City to share specified remediation costs on an equal basis (50% each) up to a cumulative amount of
$4,000,000, and for eligible costs in excess of that amount, to be shared 70% by Jewel and 30% by the City. The City is reimbursed by
insurers for 23% of the City’s expenditures for these purposes.
The Montana Department of Environmental Quality (MDEQ) issued the Record of Decision (ROD) for the Bozeman Solvent Site (BSS)in
August 2011. The Administrative Order of Consent (AOC) was finalized in January 2012. The ROD and AOC specifically delineate the
remediation to be completed for the BSS. The AOC serves as the legal mechanism for the implementation of the selected remedies identified
in the ROD. Though remediation may be completed relatively quickly, monitoring of the site will continue for a period of up to 30 years.
ATC and Associates, Inc. serves as the Project Engineer for the potentially liable parties (the City of Bozeman and CVS Pharmacy, Inc.).
Based on the selected remedies identified in the ROD, ATC has completed a long-term cost projection for the project. The long-term cost
projection for the City is $2,591,609 in remediation costs and $1,042,899 to the MDEQ for its cost recovery, for a total of $3,634,508.
Reduced by its insurer’s reimbursement, the amount is $2,939,057. This liability is recorded in the Waste Water Fund.
CMC Asbestos Bozeman CECRA Facility
In 2001, the City purchased the former CMC Heartland Partners property, the main portion of the CMC Asbestos Bozeman CECRA Facility
(“Facility”), in order to build a new public library. The City submitted a Voluntary Cleanup Plan (“VCP”) pursuant to Montana statutes, to the
Department of Environmental Quality (“DEQ”) in order to remediate contamination within the Facility. The DEQ approved the City’s VCP
on December 20, 2002. The City implemented the VCP and its addendums and submitted a Voluntary Cleanup Completion Report for the
CMC East Main Depot Site in August 2004. In 2003, at the commencement of the remedial activity, the City of Bozeman petitioned the DEQ
for an allocation of liability at the facility. Montana statutes provide a voluntary process (CALA) that allows potentially liable parties to
petition for an allocation of liability as an alternative to the strict, joint and several liability scheme included in state law. CALA involves
negotiations designed to allocate liability among persons involved at the facility, including bankrupt or defunct persons, referred to as the
“orphan shares.” CALA also provides the funding for the orphan share of the cost of remediation. An agreement was reached that allocates
79% liability to the orphan shares.
86
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 24. POLLUTION REMEDIATION OBLIGATIONS (CONTINUED)
CMC Asbestos Bozeman CECRA Facility (Continued)
On December 21,2006, the City agreed to act as lead person to conduct remaining remedial activates at the CMC Facility. In 2008, the City
submitted and the Montana Department of Environmental Quality (DEQ) approved an addendum to the 2002 Voluntary Cleanup Plan (VCP).
The remaining remedial activities at the Facility were completed in 2009. On October 25, 2010, the DEQ issued a “no further action” letter
for the work completed under the VCP. The DEQ determined that all the requirements of CECRA were fully met, including the requirement
that “conditions at the facility assure present and long term protection of public health, safety and welfare, and the environment.” Certain
inaccessible areas within the Facility were suspected to contain asbestos ore. Various institutional controls and restrictions were put in place
on specific properties within the Facility to mitigate the risk posed to the public health, safely, and welfare and the environment. Although
DEQ has issued “no further action” letters for certain properties, the ongoing presence of contamination of City property as well as the nature
of the institutional controls prohibit delisting of the Facility, and it will remain on the CECRA Priority List until the contamination is
addressed or the institutional controls are otherwise no longer necessary to ensure protection of human health or the environment.
The allocation agreement requires the City to complete remedial actions at the facility. The City retained the services of an environmental
engineering firm, Tetra Tech, to prepare a Supplemental Investigation (SI) Work Plan. The plan was approved by the DEQ and implemented
from December 2007 through June 2008. Tetra Tech’s Final SI Report was submitted to DEQ on June 20, 2008. This report describes the
contaminated soils remaining at the Facility and provides recommendations for corrective actions. The recommendation for corrective action
involves a DEQ-approved Addendum to the City’s original Voluntary Cleanup Plan.
At the City’s request, the DEQ made a hardship determination for the City on August 8, 2007, pursuant to state statute. This hardship
determination means that the City is eligible to have all of its ongoing actual documented remedial action costs reimbursed, subject to
eligibility, as soon as the City expends the money.
Montana law provides that costs may not be reimbursed until all remedial actions are complete. To date, all payments from DEQ to the City
for the initial remedial action have been received, leaving no estimated remaining reimbursement amount.
On September 29, 2013, the City entered into an agreement with Olive & Wallace, LLC to remediate the Former Harrington’s property,
including the small portion of potential asbestos on a property-line light post shared with the adjacent Story Distributing site. The agreement
releases the City from any liability for amounts beyond what the State’s Orphan Share Fund will provide. The agreement also calls for the
City to act as a “pass through” for payments from the Orphan Share Fund to the property owner. Clean-up activities occurred in the spring
and summer of 2014. The final status of the property cleanup is still pending with the DEQ. When DEQ determines that the property is
sufficiently cleared of contaminants, the City’s remediation liability will be adjusted.
As of June 30, 2014, the City has accrued $16,874 on the entity-wide financials for governmental activities, which is the potential remediation
liability net of projected recoveries.
87
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 25. NET POSITION COMPOSITION
The table presented below displays the City’s fund balances by major purpose as displayed on page 33 of the governmental funds balance
sheet.
Street Street Building Nonmajor Total
Ge neral Impac t Fees Ma inte nance In spection SID S inking Gove rnme ntal Gove rnme ntal
Fu nd Special Reve nue Special Reve nue Special Re ve nue Debt S ervice Fu nds Fu nds
Nons pe ndable
Prepaids -$ -$ -$ -$ -$ 388,875$ 388,875$
Ce me tery perpetual care - - - - - 880,682 880,682
Total n onspendable - - - - - 1,269,557 1,269,557
Re stricted
Ge neral g overnment-Planning - - - - - 728,073 728,073
Ge neral g overnment-He alth In surance - - - - - 226,483 226,483
Pu blic s afety - - - 1,394,550 - 954,480 2,349,030
Pu blic s ervice - 9,793,964 1,977,779 - - - 11,771,743
Pu blic s ervice - Gas Tax & Com. Tra nsp.- - - - - 780,909 780,909
Pu blic s ervice - Lig hting Dis tric ts - - - - - 672,470 672,470
Pu blic we lfa re - Tax In crement Dis tric ts - - - - - 3,500,384 3,500,384
Pu blic we lfa re - Econ Develop Lo an Fu nd - - - - - 646,981 646,981
Pu blic we lfa re - Tree Maint. Dis tric t - - - - - 232,927 232,927
Pu blic we lfa re - o ther - - - - - 93,923 93,923
Ca pital p ro je cts -Trail Op en Sp ace Parks - - - - - 9,369,420 9,369,420
De bt serv ic e - - - - 1,258,427 - 1,258,427
De bt serv ic e-SID Re volving Fu nd - - - - - 2,721,476 2,721,476
Total restric ted - 9,793,964 1,977,779 1,394,550 1,258,427 19,927,526 34,352,246
Commi tte d
Ge neral g overnment - - - - - 1,259,399 1,259,399
Pu blic s afety - - - - - 461,530 461,530
Pu blic s ervice - - - - - 22,680 22,680
Pu blic we lfa re - - - - - 1,331,896 1,331,896
Total committed - - - - - 3,075,505 3,075,505
As signed
Ge neral g overnment 592,076 - - - - 30,052 622,128
Ca pital p ro je cts 1,743,996 - - - - - 1,743,996
De bt serv ic e - - - - - 199,550 199,550
Bu dget ordinance mi nimu m 16.67%4,084,688 - - - - - 4,084,688
Total assigned 6,420,760 - - - - 229,602 6,650,362
Un as signed 193,534 - - - - (184,101) 9,433
Total fu nd balances 6,614,294$ 9,793,964$ 1,977,779$ 1,394,550$ 1,258,427$ 24,318,089$ 45,357,103$
88
CITY OF BOZEMAN, MONTANA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2014
NOTE 26. SUBSEQUENT EVENTS
Land Exchange
In July 2014, the City traded a 12-acre parcel of land on Frontage Road for an 8-acre parcel of land on Rouse Avenue owned by the Montana
Department of Transportation. The land exchange was executed for a contemplated location for a new City justice center. In connection with
the exchange, the City paid $966,535.
Trails, Open Space, and Parks (TOPs) Bonds
In October 2014, the City issued $5,100,000 of general obligation bonds for future trails, open space and parks projects. In addition, the City
expended $2,000,000 in capital outlay from the TOPs Bonds for construction of a sports complex.
C. REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT DISCUSSION AND ANALYSIS
89
CITY OF BOZEMAN, MONTANA
Net OPEB Oblig atio n
1,729,462$
1,841,971$
1,930,074$
The funde d status of the pla n was as follo ws:
2,002,345$
-
2,002,345$
0.0%
Not availa ble
Not availa ble
Actua rial
Valu ation
Date
Actua rial
Value of
Assets (a)
Actua rial
Accrued
Liabilit y
(AAL) (b)
Unfunded
AAL (UAAL)
(b-a)
Funded
Ratio
(a/b)
Cove red
Payr oll
(c)
UAAL as a
Percenta ge of
Cove red Payroll
((b - a) / c)
7/1/2011 -$ 2,203,253$ 2,203,253$ 0%12,788,780$ 17.2%
7/1/2013 -$ 2,002,345$ 2,002,345$ 0%Not availa ble Not availa ble
Retiree Medic al Pla n
(c) Cove red pa yroll
Year Ende d
6/30/2012
Annua l OP EB Cost
234,397$
Percentage of OP EB Cost
48.33%
FUNDED STATUS
Unfunde d actua rial accrue d lia bilit y (funding excess) as a percenta ge of cove red pa yroll
({(a) - (b)} / (c))
(a) Actua rial accrue d lia bilit y (AAL)
(b) Actua rial value of pla n assets (UAAL)
Unfunde d actua rial accrue d lia bilit y (funding excess) [(a) - (b)]
Funde d ratio (b) / (a)
SCHEDULE OF FUNDING P ROGRESS - OTHER POST-EMP LOYMENT HEALTHCARE BENEFITS
For the Year Ende d June 30, 2014
ANNUAL OPEB COST
Retiree Health Plan
The annua l OPEB costs, the percentage of OPEB cos t contributed to the pla n, and the net OPEB oblig atio n for June 30, 2013 for the
Retir ee Health Pla n are as follows:
6/30/2014 219,207$ 59.81%
6/30/2013 221,212$ 49.14%
SCHEDULE OF FUNDING PROGRESS
90
CITY OF BOZEMAN, MONTANA
Variance with
Actua l Fina l Budge t
Origina l Fina l Amounts Positive (Negativ e)
Budge tary fund ba la nc e, July 1 7,327,377$ 7,327,377$ 7,327,377$ -$
Resources (inflow s):
Taxe s 12,419,986 12,419,986 12,509,422 89,436
Spe cial assessments - - 4,268 4,268
Licenses and pe rmit s 285,370 285,370 313,264 27,894
Intergove rnme ntal 6,167,861 6,183,749 6,570,978 387,229
Charge s for servic es 2,115,729 2,158,729 2,395,464 236,735
Fine s and forfeiture s 1,199,500 1,199,500 1,291,245 91,745
Sa le of assets - - 5,372 5,372
Interest on in ve stments 35,000 35,000 41,578 6,578
Tra nsfers from othe r funds 2,184,293 2,184,293 2,193,678 9,385
Other 41,500 41,500 122,699 81,199
Amounts availa ble for appropria tion 31,776,616 31,835,504 32,775,345 939,841
Charge s to appr opr ia tions (outflow s):
Current
Ge ne ral gove rnme nt 5,445,677 5,537,177 5,343,067 194,110
Public safety 10,997,642 13,128,917 12,927,866 201,051
Public servic e 273,759 319,759 319,377 382
Public welfare 4,959,425 4,962,425 4,881,542 80,883
Other 3,008,946 1,029,521 961,124 68,397
Capital outlay 1,896,913 2,154,734 1,401,317 753,417
Debt servic e - - - -
Tra nsfers to othe r funds 274,186 326,005 326,756 (751)
Total charge s to appropria tions 26,856,548 27,458,538 26,161,049 1,297,489
Budge tary fund ba la nc e, June 30 4,920,068$ 4,376,966$ 6,614,296$ 2,237,330$
Budge ted Amounts
SCHEDULE OF REVENUES, EXP ENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
GE NERAL FUND
For the Year Ende d June 30, 2014
91
CITY OF BOZEMAN, MONTANA
Va ria nce wit h
Actual A mo unts Final Bu dget
Orig in al Fin al Bu dgetary Ba sis Po sitive (Ne gative)
Bu dgetary fu nd balance, Ju ly 1 10,226,240$ 10,226,240$ 10,226,240$ -$
Re sources (in flo ws ):
Taxes - - - -
Sp ecial a ssessments - - - -
Licens es and permits - - - -
In tergovern me ntal - - - -
Ch arges fo r s ervices 921,000 921,000 2,838,071 1,917,071
Fines and fo rfeit ures - - - -
In teres t on in vestme nts 60,000 60,000 95,678 35,678
Trans fers fro m other fu nds - - - -
Pro ceeds fro m lo ng term debt - - - -
Premiu m on bonds issued - - - -
Pro ceeds fro m the sale o f fixed assets - - - -
Ot her - - 800 800
Amounts availa ble fo r appropria tion 11,207,240 11,207,240 13,160,789 1,953,549
Ch arges to appropria tions (o utflo ws ):
Cu rre nt
Ge nera l g overn me nt - - - -
Pu blic s afety - - - -
Pu blic s ervice - 20,000 18,345 1,655
Pu blic we lfa re - - - -
Ca pital o utlay 350,000 3,480,000 3,348,480 131,520
De bt serv ic e - - - -
Trans fers t o other fu nds - - - -
Total c harg es t o appropria tions 350,000 3,500,000 3,366,825 133,175
Bu dgetary fu nd balance, Ju ne 30 10,857,240$ 7,707,240$ 9,793,964$ 2,086,724$
Bu dgeted Amounts
SCHEDULE OF REVENUES, EXP ENDITURES, AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
OTHER MAJOR FUNDS - STREET IMPACT FEES SP ECIAL REVENUE
Year Ende d June 30, 2014
92
CITY OF BOZEMAN, MONTANA
Va ria nce wit h
Actual A mo unts Final Bu dget
Orig in al Fin al Bu dgetary Ba sis Po sitive (Ne gative)
Bu dgetary fu nd balance, Ju ly 1 1,761,976$ 1,761,976$ 1,761,976$ -$
Re sources (in flo ws ):
Taxes - - - -
Sp ecial a ssessments 20,000 20,000 24,283 4,283
Licens es and permits 15,000 15,000 25,091 10,091
In tergovern me ntal - - 1,008 1,008
Ch arges fo r s ervices 3,107,999 3,107,999 3,163,630 55,631
Fines and fo rfeit ures - - - -
In teres t on in vestme nts 15,000 15,000 15,714 714
Trans fers fro m other fu nds - - - -
Pro ceeds fro m lo ng term debt - - - -
Premiu m on bonds issued - - - -
Pro ceeds fro m the sale o f fixed assets - - 23,695 23,695
Ot her - - 11,190 11,190
Amounts availa ble fo r appropria tion 4,919,975 4,919,975 5,026,587 106,612
Ch arges to appropria tions (o utflo ws ):
Cu rre nt
Ge nera l g overn me nt - - - -
Pu blic s afety - - - -
Pu blic s ervice 2,368,206 2,568,206 2,561,885 6,321
Pu blic we lfa re - - - -
Ca pital o utlay 1,205,383 1,215,383 302,004 913,379
De bt serv ic e 255,000 255,000 184,919 70,081
Trans fers t o other fu nds - - - -
Total c harg es t o appropria tions 3,828,589 4,038,589 3,048,808 989,781
Bu dgetary fu nd balance, Ju ne 30 1,091,386$ 881,386$ 1,977,779$ 1,096,393$
SCHEDULE OF REVENUES, EXP ENDITURES, AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
OTHER MAJOR FUNDS - STREET MAINTENANCE SPECIAL REVENUE
Year Ende d June 30, 2014
Bu dgeted Amounts
93
CITY OF BOZEMAN, MONTANA
Va ria nce wit h
Actual A mo unts Final Bu dget
Orig in al Fin al Bu dgetary Ba sis Po sitive (Ne gative)
Bu dgetary fu nd balance, Ju ly 1 1,132,359$ 1,132,359$ 1,132,359$ -$
Re sources (in flo ws ):
Taxes - - - -
Sp ecial a ssessments - - - -
Licens es and permits 1,153,700 1,153,700 1,445,927 292,227
In tergovern me ntal - - 23,141 23,141
Ch arges fo r s ervices - - 1,911 1,911
Fines and fo rfeit ures - - - -
In teres t on in vestme nts 7,000 7,000 12,643 5,643
Trans fers fro m other fu nds - - - -
Pro ceeds fro m lo ng term debt - - - -
Premiu m on bonds issued - - - -
Pro ceeds fro m the sale o f fixed assets - - - -
Ot her - - 121 121
Amounts availa ble fo r appropria tion 2,293,059 2,293,059 2,616,102 323,043
Ch arges to appropria tions (o utflo ws ):
Cu rre nt
Ge nera l g overn me nt - - - -
Pu blic s afety 1,128,610 1,195,610 1,193,942 1,668
Pu blic s ervice - - - -
Pu blic we lfa re - - - -
Ca pital o utlay 100,000 100,000 27,610 72,390
De bt serv ic e - - - -
Trans fers t o other fu nds - - - -
Total c harg es t o appropria tions 1,228,610 1,295,610 1,221,552 74,058
Bu dgetary fu nd balance, Ju ne 30 1,064,449$ 997,449$ 1,394,550$ 397,101$
SCHEDULE OF REVENUES, EXP ENDITURES, AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
OTHER MAJOR FUNDS - BUILDING INSPECTION SPECIAL REVENUE
Year Ende d June 30, 2014
Bu dgeted Amounts
94
CITY OF BOZEMAN, MONTANA
Street
Ge ne ral Impa ct Street Build in g
Fund Fe es Ma in tena nc e Inspectio n
Sources/in flow s of resources
Actua l amounts (budge tary basis) "availa ble for appr opria tion" from the budge ta ry
comparis on schedule 32,775,345$ 13,160,789$ 5,026,587$ 2,616,102$
Differenc es - budge t to GA AP:
The fund ba la nc e at the begin ning of the year is a budge ta ry resource but is
not a current-ye ar revenue for fina nc ia l reporting pur poses.(7,327,377) (10,226,240) (1,761,976) (1,132,359)
Transfers from othe r funds are inflo ws of budge tary resour ces but are not
reve nue s for fina nc ia l repor ting pur poses.(2,193,678) - - -
The proceeds from the issuance of long-term debt are a budge tary resource
but are a other fina nc in g source for fina nc ia l repor ting pur pos es - - - -
The proceeds from the sale of assets are budge tary resour ces but are regarde d
as a special item, rathe r than revenue , for fina nc ia l repor ting pur pos es (5,372) - (23,695) -
Tota l revenue s as repor ted on the statement of revenue s, expe nditure s, and
change s in fund ba la nc es - gove rnme nta l funds 23,248,918$ 2,934,549$ 3,240,916$ 1,483,743$
Uses/outflows of resources
Actua l amounts (budge tary basis) "tota l charge s to appropria tions" from the
budge tary compa rison schedule 26,161,049$ 3,366,825$ 3,048,808 1,221,552
Differenc es - budge t to GA AP:
Transfers to othe r funds are outflow s of budge ta ry resources but are not
expe nditure s for fina nc ia l reporting pur pos es.(326,756) - - -
Tota l expe nditures as reported on the statement of revenue s, expe nditures, and
change s in fund ba la nc es - gove rnme nta l funds 25,834,293$ 3,366,825$ 3,048,808$ 1,221,552$
NOTES TO REQUIRED SUPPLEMEN TARY INFORMATION
Year Ende d June 30, 2014
D. SUPPLEMENTAL INFORMATION
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Departmental Special Revenues –Accounts for monies received and expended for projects relating to various City departments.
Fire Impact Fees Special Revenues -Accounts for the collection and expenditures associated with the fire impact fees.
City Planning Board –Accounts for monies received from various sources including property taxes, fees, and County revenues. Expenditures are for short-
term and long-term planning of City and adjacent County zones. Section 76-1-102 MCA provides that the purpose of City planning is to encourage local
governments to improve the present health, safety, convenience, and welfare of the citizens.
Health-Medical Insurance –Accounts for property tax revenues received and transferred to the general fund for premiums and deductibles on group
insurance coverage for City employees.
Gas Tax Apportionment –Accounts for revenues from State gasoline taxes apportioned from the State of Montana Department of Highways.
Drug Forfeitures –Accounts for monies received from fines and forfeitures of drug-related criminal prosecution, to be expended on drug law enforcement
and education.
City-County Drug Forfeitures –Accounts for monies received from fines and forfeitures of drug-related criminal prosecution, from an inter-local
agreement with Gallatin County,to be expended on drug law enforcement and education.
Victim/Witness Advocate -Accounts for monies collected through the Court system to assist with Victim and Witness Advocate Program.
Tree Maintenance –Accounts for special assessment revenues levied, received, and expended for tree maintenance provided to specific property owners.
Law and Justice Center –Accounts for the receipt and expenditure of monies earmarked by the City Commission for the City’s share of the Law and
Justice Center renovation.
Community Transportation –Accounts for federal funding for highways, mass transit, and alternative transportation programs as defined by the Intermodal
Surface Transportation Efficiency Act (ISTEA). Money is distributed on a per-capita basis.
Fire Department Equipment–Accounts for Public Safety mill levy tax revenues for fire department capital and equipment.
Economic Development Revolving Loan Fund –Accounts for revenues received and expended relative to loans made in accordance with the Community
Development Block Grant Program, for economic development purposes.
Housing Revolving Loan Fund –Accounts for revenues received and expended relative to loans made in accordance with the Community Development
Block Grant Program, for housing development purposes.
Community Housing –Accounts for money set aside by the City Commission and related expenditure for the establishment of safe, decent and affordable
housing for low and moderate-income citizens.
Downtown Improvement District –In November 1995, the City adopted an Urban Renewal Plan for the downtown area. This fund accounts for the revenue and
expenditures associated with the district.
Tourism Business Improvement District –Accounts for program income derived from hotels within the district to enhance the economic vitality of Bozeman by
promoting tourism through sales and marketing strategies.
Street Lighting –Accounts for special assessment revenues levied, received and expended for street and public highway lighting provided to specific property owners.
Park Land –Accounts for monies donated for the purpose of acquiring and developing City Parks.
Municipal Court Restitution –Accounts for checks that were canceled on the restitution checking account, per MCA 46-18-250.
TIF N.E. Urban Renewal –In August of 2005, the City created an Urban Renewal Plan for the Northeast Urban section of Bozeman. This fund accounts for the
revenue and expenditures associated with the district.
TIF N 7th Corridor -I n August of 2005, the City created a Renewal Plan for the North 7th Avenue business district. This fund accounts for the revenue and expenditures
associated with the district.
DEBT SERVICE FUNDS
Special Improvement District (SID) Revolving –Accounts for property tax revenues received and expended for the payment of special improvement district bond
principal and interest.
General Obligation Bonds Debt Service Fund –Accounts for the debt service payments associated with the Library and Transportation general obligation bonds.
Tax Increment Financing Bonds Debt Service Fund –Accounts for the debt service payments associated with the Tax Increment Urban Renewal Revenue Bonds
issued as partial funding for the construction of a Downtown Intermodal Parking Facility.
CAPITAL PROJECTS FUNDS
General Improvements Capital Projects Fund –Accounts for the construction of general improvement projects financed by special assessments other than those
financed by proprietary funds.
PERMANENT FUNDS
Perpetual Cemetery Care-Accounts for 15% maintenance fee received from the sale of City cemetery plots which is to be used for perpetual care. The interest income
from the trust is transferred to the general fund for use in maintaining the City’s cemetery.
95
CITY OF BOZEMAN, MONTANA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FU NDS
June 30, 2014
Sp ecial Revenue Funds
Cit y
Planning Healt h-M edical Communit y
Depart ment al Board Insurance Tran sp ort at ion
ASSE TS
Cash and cash equivalent s 1,880,698$ 503,741$ 140,083$ 123,991$
Receivables
Prop erty t axes 5,427 12,559 122,909 -
Accrued int eres t - - - -
Cust omers , net - - - -
Sp ecial as sessmen ts - - - -
Other governments 127,896 - - -
Others - - - -
Advances t o ot her cit y funds - - - -
Prep aid exp endit ures - - - -
Notes receivable 35,293 - - -
Restrict ed cas h and cash equivalen ts 25,000 266,397 - -
Total as sets 2,074,314$ 782,697$ 262,992$ 123,991$
(cont inued)
96
CITY OF BOZEMAN, MONTANA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
June 30, 2014
Sp ecial Revenue Funds
Depart ment al Cit y
Sp ecial Planning Healt h-M ed ical Communit y
Revenues Board Insurance Transp ort at ion
Liabilit ies :
Acco unts p ay able 185,682 41,575 - 660
Es cheat p rop ert y payable - - - -
Accrued emp loyee benefit s p ay able 528 9,909 - -
Total liabilit ies 186,210 51,484 - 660
Deferred inflow s of resources:
Unavailable revenue-p rop ert y taxes 1,563 3,140 36,509 -
Unavailable revenue-s pecial assessmen ts - - - -
Unavailable revenue-deferred loans 35,293 - - -
Unavailable revenue-court fines - - - -
Total deferred inflows of resources 36,856 3,140 36,509 -
Fund balances :
Nonsp endable - - - -
Restrict ed 150,387 728,073 226,483 123,331
Commit ted 1,884,442 - - -
Assign ed - - - -
Unas sign ed (183,581) - - -
Total fund balances 1,851,248 728,073 226,483 123,331
Total liabilit ies , deferred inflows of resources,
and fund balances 2,074,314$ 782,697$ 262,992$ 123,991$
(cont inued)
97
CITY OF BOZEMAN, MONTANA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
June 30, 2014
Sp ecial Revenue Funds
Downtown
Gas Tax Tree Fire Imp rovement
Ap port ionment Maint en ance Impact Fees District
ASSETS
Cash and cas h equivalent s 657,578$ 258,335$ -$ 2,406,234$
Receivables
Prop erty t axes - - - 121,207
Accrued int erest - - - 3,697
Customers, net - - - -
Sp ecial as sessments - 14,197 - 2,024
Ot her governmen ts - - - -
Ot hers - - - -
Advances t o ot her cit y funds - - - -
Prep aid expendit ures - - - -
Notes receivable - - - -
Restrict ed cash and cash equivalents - - 464,142 -
Total as sets 657,578$ 272,532$ 464,142$ 2,533,162$
(cont inued)
98
CITY OF BOZEMAN, MONTANA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
June 30, 2014
Sp ecial Revenue Funds
Downtown
Gas T ax Tree Fire Imp rovement
Ap port ionment Maint enance Impact F ees District
Liabilit ies:
Account s p ay able - 28,208 145 774,972
Es cheat p rop ert y payable - - - -
Accrued emp lo yee benefit s p ay able - 4,055 - -
Total liabilit ies - 32,263 145 774,972
Deferred inflows of resources:
Unavailable revenue-p rop ert y taxe s - - - 40,821
Unavailable revenue-special as sessments - 7,342 - -
Unavailable revenue-deferred loans - - - -
Unavailable revenue-security agr eement - - - -
Total deferred inflow s of resources - 7,342 - 40,821
Fund balances :
Nonsp endable - - - -
Restrict ed 657,578 232,927 463,997 1,717,369
Commit ted - - - -
Assign ed - - - -
Unassign ed - - - -
Total fund balances 657,578 232,927 463,997 1,717,369
Total liabilit ies , deferred inflows of resources ,
and fund balan ces 657,578$ 272,532$ 464,142$ 2,533,162$
(cont inued)
99
CITY OF BOZEMAN, MONTANA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
June 30, 2014
Sp ecial Revenue F unds
Eco nomic Housing Cit y-Count y
Developmen t Community Revolving Drug Drug
Revolving Loan Housing Loan Fund Forfeit ures Forfeit ures
ASSETS
Cash and cas h equivalent s -$ 347,768$ 5,317$ 21,038$ 154,531$
Receivables
Prop erty t axes - - - - -
Accrued int erest - - -
Customers, net 646,981 - - 9,929 -
Sp ecial as sessments - - - - -
Other governmen ts - - - - -
Others - - - - -
Advances t o ot her cit y funds - - - - -
Prep aid expendit ures - - - - -
Notes receivable 212,056 62,500 16,721 - -
Restrict ed cash and cash equivalent s - - - - -
Total as sets 859,037$ 410,268$ 22,038$ 30,967$ 154,531$
(cont inued)
100
CITY OF BOZEMAN, MONTANA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
June 30, 2014
Sp ecial Revenue Funds
Economic Housing Cit y-Count y
Development Community Revolving Drug Drug
Revolving Loan Housing Loan Fund Forfeit ures Forfeit ures
Liabilit ies:
Account s p ay able - - - 719 -
Escheat p rop ert y payable - - - - -
Accrued emp lo yee benefit s p ay able - - - 2,968 -
Total liabilit ies - - - 3,687 -
Deferred inflows of resources:
Unavailable revenue-p rop ert y taxe s - - - - -
Unavailable revenue-special as sessments - - - - -
Unavailable revenue-deferred loans 212,056 62,500 16,721 - -
Unavailable revenue-security agr eement - - - - -
Total deferred inflow s of resources 212,056 62,500 16,721 - -
Fund balances :
Nonsp endable - - - - -
Restrict ed 646,981 - 5,317 27,280 -
Commit ted - 347,768 - - 154,531
Assign ed - - - - -
Unas sign ed - - - - -
Total fund balances 646,981 347,768 5,317 27,280 154,531
Total liabilit ies , deferred inflows of resources ,
and fund balan ces 859,037$ 410,268$ 22,038$ 30,967$ 154,531$
(cont inued)
101
CITY OF BOZEMAN, MONTANA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
June 30, 2014
Sp ecial Revenue Funds
Law and
Justice TIF TIF N.E.Vict im/Wit ness Fire Depart ment
Cent er N 7t h Corridor Urban Renewal Advocat e Equip ment
ASSE TS
Cash and cash equivalent s -$ 1,453,714$ 319,148$ 384,070$ 2,688$
Receivables
Prop ert y taxe s - 50,693 7,171 - 20,396
Accrued int eres t - - - - -
Cust omers, net - - - 5,920 -
Sp ecial as sessmen ts - - - - -
Other governments - - - - -
Others - - - - -
Advances t o ot her cit y funds - - - - -
Prep aid exp endit ures 388,875 - - - -
Notes receivable - - - - -
Restrict ed cas h and cash equivalen ts - - - - -
Total as sets 388,875$ 1,504,407$ 326,319$ 389,990$ 23,084$
(cont inued)
102
CITY OF BOZEMAN, MONTANA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
June 30, 2014
Sp ecial Revenue Funds
Law and
Justice TIF TIF N.E.Vict im/Wit ness Fire Depart ment
Cent er N 7t h Corridor Urban Renewal Advocat e Equip ment
Liabilit ies :
Acco unts p ay able - 37,247 8,931 - -
Es cheat p rop ert y payable - - - - -
Accrued emp loyee benefit s p ay able - - - - -
Total liabilit ies - 37,247 8,931 - -
Deferred inflow s of resources:
Unavailable revenue-p rop ert y taxes - 909 624 - 5,074
Unavailable revenue-s pecial assessmen ts - - - - -
Unavailable revenue-deferred loans - - - - -
Unavailable revenue-s ecurity agr eement - - - - -
Total deferred inflows of resources - 909 624 - 5,074
Fund balances :
Nonsp endable 388,875 - - - -
Restrict ed - 1,466,251 316,764 389,990 -
Commit ted - - - - 18,010
Assign ed - - - - -
Unas sign ed - - - - -
Total fund balan ces 388,875 1,466,251 316,764 389,990 18,010
Total liabilit ies , deferred inflows of resources,
and fund balances 388,875$ 1,504,407$ 326,319$ 389,990$ 23,084$
(cont inued)
103
CITY OF BOZEMAN, MONTANA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FU NDS (CONTINUED)
June 30, 2014
Sp ecial Revenue Funds
Tourism
Busines s St reet Park Municip al Court
Improvement Light ing Land Restit ut ion Total
ASSET S
Cash and cas h equivalent s 186,412$ 686,998$ 303,852$ 18,879$ 9,855,075$
Receivables
Prop erty t axes - - - - 340,362
Accrued interest - - - 3,697
Customers, net - 820 - - 663,650
Sp ecial as sessment s 19,081 12,504 - - 47,806
Other government s - - - - 127,896
Others - - -
Advances t o ot her city funds - - - - -
Prep aid expendit ures - - - - 388,875
Notes receivable - - - - 326,570
Restrict ed cash and cas h equivalent s - - - - 755,539
Total as sets 205,493$ 700,322$ 303,852$ 18,879$ 12,509,470$
(cont inued)
104
CITY OF BOZEMAN, MONTANA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FU NDS (CONTINUED)
June 30, 2014
Sp ecial Revenue Funds
Touris m
Busines s St reet Park Municip al Court
Improvement Light ing Land Restit ut ion Total
Liabilit ies:
Account s p ay able 186,412 27,852 - 1,000 1,293,403
Esch eat p rop erty p ay able - - - 17,774 17,774
Accrued emp loy ee benefit s p ay able - - - - 17,460
Total liabilit ies 186,412 27,852 - 18,774 1,328,637
Deferred inflows of resources :
Unavailable revenue-p rop ert y taxe s - - - - 88,640
Unavailable revenue-special assessment s 7,754 - - - 15,096
Unavailable revenue-deferred loans - - - - 326,570
Unavailable revenue-security agr eement - - - - -
Total deferred inflows of resources 7,754 - - - 430,306
Fund balances :
Nonspendable - - - 388,875
Restrict ed 11,327 672,470 - 105 7,836,630
Commit ted - - 303,852 - 2,708,603
Assign ed - - - -
Unas sign ed - - - - (183,581)
Total fund balances 11,327 672,470 303,852 105 10,750,527
Total liabilit ies , deferred inflows of resources ,
and fund balances 205,493$ 700,322$ 303,852$ 18,879$ 12,509,470$
(cont inued)
105
CITY OF BOZEMAN, MONTANA
Debt Service F unds
SID G.O.TIF
Revolving Bonds Bonds Total
ASSET S
Cash and cas h equivalent s 2,474,971$ 78,512$ -$ 2,553,483$
Receivables
Prop erty t axes - 47,173 - 47,173
Accrued int erest 4,661 - - 4,661
Customers, net - - - -
Sp ecial as sessment s - - - -
Other government s - - - -
Others - - - -
Advances t o other city funds 131,726 - - 131,726
Prep aid expendit ures - - - -
Notes receivable - - - -
Restrict ed cas h and cas h equivalent s - - - -
Total as sets 2,611,358$ 125,685$ -$ 2,737,043$
(cont inued)
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
June 30, 2014
106
CITY OF BOZEMAN, MONTANA
Debt Service F unds
SID G.O.TIF
Revolving Bonds Bonds Total
Liabilit ies :
Account s p ay able - - - -
Es cheat p rop erty p ay ab le - - - -
Accrued emp loy ee benefit s p ay able - - - -
Total liabilit ies - - - -
Deferred inflows of resources :
Unav ailable revenue-p rop ert y taxe s - 15,567 - 15,567
Unav ailable revenue-special as sessment s - - - -
Unav ailable revenue-deferred loans - - - -
Unav ailable revenue-security agr eement - - - -
Total deferred inflows of resources - 15,567 - 15,567
Fund balances :
Nons pendable - - - -
Restrict ed 2,611,358 110,118 - 2,721,476
Commit ted - - - -
Assign ed - - - -
Unas sign ed - - - -
Total fund balances 2,611,358 110,118 - 2,721,476
Total liabilit ies , deferred inflows of resources ,
and fund balances 2,611,358$ 125,685$ -$ 2,737,043$
(cont inued)
COMBINING BALANCE SHEET
June 30, 2014
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
107
CITY OF BOZEMAN, MONTANA
Capital P roject s Permanent
Fund Fund Total
Nonmajor
General Perp et ual Government al
Improvement s Cemet ery Care Funds
ASSETS
Cash and cash equivalents 9,960,238$ -$ 22,368,796$
Receivab les
Prop erty t axes - - 387,535
Accrued int eres t 14,785 - 23,143
Customers , net - - 663,650
Sp ecial as sessment s - - 47,806
Other government s - - 127,896
Others - -
Advances t o ot her cit y funds - - 131,726
Prep aid expendit ures - - 388,875
Notes receivable - - 326,570
Rest rict ed cas h and cas h equivalent s - 882,091 1,637,630
Total assets 9,975,023$ 882,091$ 26,103,627$
(cont inued)
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
June 30, 2014
108
CITY OF BOZEMAN, MONTANA
Capital P roject s Permanent
Fund Fund Total
Nonmajor
General Perp et ual Government al
Improvement s Cemet ery Care Funds
Liabilit ies:
Account s payable 9,619 1,409 1,304,431
Es cheat p rop ert y payable - - 17,774
Accrued emp loyee benefit s p ay able - - 17,460
Total liabilit ies 9,619 1,409 1,339,665
Deferred inflows of resources :
Unavailable revenue-p rop erty t axes - - 104,207
Unavailable revenue-special as sessment s - - 15,096
Unavailable revenue-deferred loans - - 326,570
Unavailable revenue-securit y agreement - - -
Total deferred inflows of resources - - 445,873
Fund balances :
Nonspendable - 880,682 1,269,557
Restrict ed 9,369,420 - 19,927,526
Commit ted 366,902 - 3,075,505
Assign ed 229,602 - 229,602
Unassign ed (520) - (184,101)
Total fund balances 9,965,404 880,682 24,318,089
Total liabilit ies , deferred inflows of resources,
and fund balances 9,975,023$ 882,091$ 26,103,627$
June 30, 2014
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
109
CITY OF BOZEMAN, MONTANA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
NONMAJOR GOVERNMENTAL FUNDS
Year Ende d June 30, 2014
Sp ecial Revenue Funds
City
Planning Healt h-M edical Communit y
Depart ment al Board Insurance Tran sport at ion
REVEN UES
Taxe s 100,913$ 170,047$ 1,901,150$ -$
Sp ecial as sessment s - - - -
Licenses and p ermit s - - - -
Int er go vernment al 586,918 106,061 - 25,812
Charges for services 30,575 416,017 - -
Fines and forfeit ures - - - -
Int er es t on inves tment s 15,112 3,446 365 812
Loan repaymen t 5,167 - - -
Other 109,797 12,624 - -
Total revenues 848,482 708,195 1,901,515 26,624
EX PENDITURES
Current
General government - 727,730 - -
Public safet y 239,427 - - -
Public service 11,238 - - 162
Public welfare 321,791 - - -
Other 85,588 - - -
Capital outlay 318,303 8,916 - 29,879
Debt service
Princip al - - - -
Int eres t an d fiscal fees - - - -
Total expendit ures 976,347 736,646 - 30,041
Revenues over (under) exp enditures (127,865) (28,451) 1,901,515 (3,417)
OT HER FINANCING SOURCES (USES)
Tran sfers in 84,900 184,036 - 30,150
Tran sfers out (70,691) - (2,124,374) -
Long-t erm debt is sued - - - -
Sale of cap it al as sets 3,905 - - -
Total ot her financing sources (uses)18,114 184,036 (2,124,374) 30,150
Net ch ange in fund balance (109,751) 155,585 (222,859) 26,733
FUND BALANCES, beginning of y ear 1,960,999 572,488 449,342 96,598
FUND BALANCES, end of y ear 1,851,248$ 728,073$ 226,483$ 123,331$
(cont inued)
110
CITY OF BOZEMAN, MONTANA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
Year Ende d June 30, 2014
Sp ecial Revenue Funds
Downtown
Gas T ax Tree Fire Improvement
Ap portio nment Maintenance Imp act F ees District
REVEN UES
Taxes -$ -$ -$ 817,363$
Sp ecial as sessment s - 1,877 - 120,153
Licenses and p ermit s - - -
Int ergo vernment al 655,654 1,052 - 45,437
Charges for services - 425,148 296,261 -
Fines and forfeit ures - - - -
Int eres t on investment s 3,983 1,696 2,428 14,951
Lo an repayment - - - -
Ot her - 11,903 - -
Total revenues 659,637 441,676 298,689 997,904
EX PENDITURES
Current
General government - - - -
Public safet y - - 2,635 -
Public service 202,125 - - -
Public w elfare - 455,940 - 350,839
Other - - - -
Cap it al out lay 444,497 15,592 - -
Debt service
Princip al - - - -
Int erest and fiscal fees - - - -
Total expenditures 646,622 471,532 2,635 350,839
Revenues over (under) expendit ures 13,015 (29,856) 296,054 647,065
OTHER F INANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - (433,438)
Lo ng-t erm debt is sued - - - -
Sa le of cap it al assets - 10,570 - -
Total ot her financing sources (uses )- 10,570 - (433,438)
Net change in fund balances 13,015 (19,286) 296,054 213,627
FUND BALANCES, beginning of y ear 644,563 252,213 167,943 1,503,742
FUND BALANCES, end of y ear 657,578$ 232,927$ 463,997$ 1,717,369$
(cont inued)
111
CITY OF BOZEMAN, MONTANA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
NONMAJOR GOVERNMEN TAL FU NDS (CONTINUED)
Year Ende d June 30, 2014
Sp ecial Revenue Funds
Economic Housing Cit y-Count y
Development Communit y Revolving Drug Drug
Revolving Loan Housing Loan Fund Forfeitures Forfeit ures
REVEN UES
Taxe s -$ -$ -$ -$ -$
Sp ecial assessment s - - - - -
Licenses and p ermit s - - - - -
Int ergo vernmen tal - - - 133,525 -
Charges for services - - - - -
Fines and forfeit ures - - - 45,885 -
Int erest on investmen ts 802 2,555 62 311 1,126
Loan rep ay ment 48,620 5,000 5,193 - -
Other - - - - -
Total revenues 49,422 7,555 5,255 179,721 1,126
EX PENDITURES
Current
General government - - - - -
Public safety - - - 221,737 -
Public service - - - - -
Public welfare 41,000 40,000 14,400 - -
Other - - - - -
Cap it al out lay - - - - -
Debt service
Prin cip al - - - - -
Int erest an d fiscal fees - - - - -
Total expendit ures 41,000 40,000 14,400 221,737 -
Revenues over (under) expenditures 8,422 (32,445) (9,145) (42,016) 1,126
OTHER FINANCING SOURCES (U SES)
Tran sfers in - 42,819 - - -
Tran sfers out - - - - -
Long-term debt issued - - - - -
Sale of capital as sets - - - - -
Total ot her financing sources (uses )- 42,819 - - -
Net change in fund balance 8,422 10,374 (9,145) (42,016) 1,126
FUND BALANCES, beginning of y ear 638,559 337,394 14,462 69,296 153,405
FUND BALANCES, end of y ear 646,981$ 347,768$ 5,317$ 27,280$ 154,531$
(cont inued)
112
CITY OF BOZEMAN, MONTANA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
Year Ende d June 30, 2014
Sp ecial Revenue F unds
Law and
Justice TIF TIF N.E.Vict im/Wit ness Fire Dep art ment
Cent er N 7t h Corridor Urban Renewal Advocat e Equip men t
REVEN UES
Taxe s -$ 747,455$ 106,872$ -$ 337,202$
Sp ecial as sessment s - - - - -
Licenses and p ermit s - - - - -
Int er go vernment al - 19,067 201 - -
Charges for services - - - - -
Fines and forfeit ures - - - 74,032 -
Int er es t on investment s - 6,578 2,048 2,950 359
Loan repayment - - - - -
Other - 6,077 - - -
Total revenues - 779,177 109,121 76,982 337,561
EX PENDITURES
Current
General government - - - 67,778 -
Public safety 19,125 - - - 33,154
Public service - - - - -
Public welf are - 49,049 49,835 - -
Other - - -
Cap it al out lay - 235,554 - - 1,156,535
Debt service
Princip al - - - - -
Interest and fiscal fees - - - - -
Total expenditures 19,125 284,603 49,835 67,778 1,189,689
Revenues over (under) expendit ures (19,125) 494,574 59,286 9,204 (852,128)
OT HER FINANCING SOURCES (USES)
Trans fers in - - - - -
Trans fers out - (10,000) (5,000) - -
Long-t erm debt is sued - - - - -
Sale of cap it al as sets - - - - -
Total other financing sources (uses)- (10,000) (5,000) - -
Net change in fund balance (19,125) 484,574 54,286 9,204 (852,128)
FUND BALANCES, beginning of y ear 408,000 981,677 262,478 380,786 870,138
FUND BALANCES, end of y ear 388,875$ 1,466,251$ 316,764$ 389,990$ 18,010$
(cont inued)
113
CITY OF BOZEMAN, MONTANA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
NONMAJOR GOVERNMENTA L FU NDS (CONTINUED)
Year Ende d June 30, 2014
Sp ecial Revenue Funds
Touris m Municip al
Business St reet Park Court
Improvement Light ing Land Res titution Totals
REVENUES
Taxes -$ -$ -$ -$ 4,181,002$
Sp ecial assessment s 434,969 371,911 - - 928,910
Licenses and p ermit s - - - - -
Int ergovernment al - - - - 1,573,727
Charges for services - - - - 1,168,001
Fines and forfeitures - - - - 119,917
Int erest on investment s - 5,001 2,190 1 66,776
Loan repayment - - - - 63,980
Other - - 10,435 - 150,836
Total revenues 434,969 376,912 12,625 1 8,253,149
EX PENDITURES
Current
General government - - - - 795,508
Public safet y - - - - 516,078
Public service - 385,638 - - 599,163
Public welfare 431,137 - - - 1,753,991
Other - - - - 85,588
Cap it al out lay - - - - 2,209,276
Debt service
Princip al - - - - -
Int erest and fiscal fees - - - - -
Total expendit ures 431,137 385,638 - - 5,959,604
Revenues over (under) exp endit ures 3,832 (8,726) 12,625 1 2,293,545
OTHER FINANCING SOURCES (USES)
Transfers in - - - - 341,905
Transfers out - - - - (2,643,503)
Long-term debt issued - - - - -
Sale of cap it al assets - - - - 14,475
Total ot her financing sources (uses)- - - - (2,287,123)
Net change in fund balance 3,832 (8,726) 12,625 1 6,422
FUND BALANCES, beginning of y ear 7,495 681,196 291,227 104 10,744,105
FUND BALANCES, end of y ear 11,327$ 672,470$ 303,852$ 105$ 10,750,527$
(cont inued)
114
CITY OF BOZEMAN, MONTANA
Debt Service Funds
SI D G.O.TIF
Revolving Bonds Bonds Totals
REVEN UES
Taxes -$ 694,947$ -$ 694,947$
Sp ecial as sessmen ts - - - -
Licens es and p ermit s - - - -
Int ergovernment al - - - -
Charges for services - - - -
Fines and forfeit ures - - - -
Int eres t on inves tment s 18,854 - - 18,854
Lo an rep ay ment - - - -
Ot her 1,443 - - 1,443
Total revenues 20,297 694,947 - 715,244
EXPENDIT URES
Current
General government - - - -
Public safet y - - - -
Public service - - - -
Public welfare - - - -
Other - - -
Cap it al out lay - - - -
Debt service -
Princip al - 660,000 180,000 840,000
Int er es t and fiscal fees - 46,975 243,438 290,413
Total expendit ures - 706,975 423,438 1,130,413
Revenues over (under) exp endit ures 20,297 (12,028) (423,438) (415,169)
OTHER FINANCING SOURCES (USES)
Transfers in 143,528 - 423,438 566,966
Transfers out - - - -
Lo ng-t erm debt is sued - - - -
Sa le of cap it al as sets - - - -
Total ot her financing sources (uses )143,528 - 423,438 566,966
Net change in fund balance 163,825 (12,028) - 151,797
FUND BALANCES, begin ning of y ear 2,447,533 122,146 - 2,569,679
FUND BALANCES, end of y ear 2,611,358$ 110,118$ -$ 2,721,476$
(cont inued)
COMBINING STATEMEN T OF REVENUES, EXP ENDITURES AND CHANGES IN FUND BALANCES-
NONMAJOR GOVERNMENTAL FU NDS (CONTINUED)
Year Ende d June 30, 2014
115
CITY OF BOZEMAN, MONTANA
Capital P roject s Fund Permanent Fund Total
Nonmajor
General Cemet ery Government al
Improvement s Perp et ual Care Funds
REVEN UES
Taxe s -$ -$ 4,875,949$
Sp ecial as sessment s - - 928,910
Licens es and p ermit s - - -
Int ergovernment al 39,916 - 1,613,643
Charges for services - 89,046 1,257,047
Fines and forfeitures - - 119,917
Int erest on investment s 62,967 6,106 154,703
Loan rep ay ment - - 63,980
Other - - 152,279
Total revenues 102,883 95,152 9,166,428
EX PENDITURES
Current
General government - - 795,508
Public safet y - - 516,078
Public service - - 599,163
Public welfare 42,814 - 1,796,805
Other - - 85,588
Capital out lay 764,769 - 2,974,045
Debt service
Princip al - - 840,000
Int er est and fis cal fees - - 290,413
Total expendit ures 807,583 - 7,897,600
Revenues over (under) expendit ures (704,700) 95,152 1,268,828
OT HER FIN ANCING SO URCES (USES)
Transfers in 1,238 - 910,109
Transfers out - - (2,643,503)
Long-t erm debt is sued 10,012,647 - 10,012,647
Sale of capital assets 199,550 - 214,025
Total other financing sources (uses)10,213,435 - 8,493,278
Net change in fund balance 9,508,735 95,152 9,762,106
FUND BALANCES, beginning of y ear 456,669 785,530 14,555,983
FUND BALANCES, end of y ear 9,965,404$ 880,682$ 24,318,089$
COMBINING STATEMENT OF REV ENUES, EXP ENDITURES AND CHANGES IN FUND BALANCES-
NONMAJOR GOVERNMEN TAL FUNDS (CONTINUED)
Year Ende d June 30, 2014
BUDGET TO ACTUAL SCHEDULES OTHER MAJOR FUNDS
116
CITY OF BOZEMAN, MONTANA
Va ria nce wit h
Actual A mo unts Final Bu dget
Orig in al Fin al Bu dgetary Ba sis Po sitive (Ne gative)
Bu dgetary fu nd balance, Ju ly 1 886,462$ 886,462$ 886,462$ -$
Re sources (in flo ws ):
Taxes - - - -
Sp ecial a ssessments 1,619,500 1,619,500 1,054,483 (565,017)
Licens es and permi ts - - - -
In tergovern me ntal - - - -
Ch arges fo r s ervices - - - -
Fines a nd fo rfeit ures - - - -
In teres t on in vestme nts - - 8,770 8,770
Trans fers fro m other fu nds - - - -
Pro ceeds fro m lo ng term debt - - - -
Premiu m on bonds issued - - - -
Pro ceeds fro m the sale of fixed as sets - - -
Ot her - - - -
Amounts availa ble fo r appropria tion 2,505,962 2,505,962 1,949,715 (556,247)
Ch arges to appropria tions (o utflo ws ):
Cu rrent
Ge nera l g overn me nt - - - -
Pu blic s afety - - - -
Pu blic s ervice - - - -
Pu blic welfa re - - - -
Ca pital o utlay - - - -
De bt serv ic e 1,464,500 1,464,500 547,760 916,740
Trans fers t o other fu nds 155,000 155,000 143,528 11,472
Total c harg es to appropria tions 1,619,500 1,619,500 691,288 928,212
Bu dgetary fu nd balance, Ju ne 30 886,462$ 886,462$ 1,258,427$ 371,965$
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL
Bu dgeted Amounts
OTHER MAJOR FUNDS - SID SINKING FUND
Year Ende d June 30, 2014
117
CITY OF BOZEMAN, MONTANA
SID Sinking
Fund
Sources/in flow s of resour ces
Actual amounts (budge ta ry basis) "availa ble for appropr ia tion" from the budge ta ry
compa rison schedule 1,949,715$
Differenc es - budge t to GA AP:
The fund ba la nc e at the begin ning of the year is a budge tary resour ce but is
not a current-year revenue for fina nc ia l repor ting pur pos es.(886,462)
Trans fers from othe r funds are inf lo ws of budge tary resour ces but are not
revenue s for fina nc ia l reporting purpos es.-
The proceeds from the issuance of long-term debt are a budge ta ry resource
but are a other fina nc in g source for fina nc ia l re porting pur pos es -
The proceeds from the sale of assets are budge ta ry resources but are regarde d
as a special item, rathe r than revenue , for fina nc ia l repor ting purpos es -
Tota l revenue s as repor te d on the statement of revenue s, expe nditures, and
change s in fund ba la nc es - gove rnme nt al funds 1,063,253$
Uses/outflo ws of resources
Actual amounts (budge ta ry basis) "tota l charges to appr opr ia tions " from the
budge tary compa rison schedule 691,288$
Differenc es - budge t to GA AP:
Trans fers to othe r funds are outflo ws of budge tary resources but are not
expe nditures for fina nc ia l repor ting pur poses.(143,528)
Tota l expe nditures as repor ted on the statement of reve nue s, expe nditures, and
change s in fund ba la nc es - gove rnme nt al funds 547,760$
NOTE TO BUDGET TO ACTUAL STATEMENT-OTHER MAJOR FUNDS
Year Ende d June 30, 2014
BUDGET TO ACTUAL SCHEDULES –NONMAJOR FUNDS
118
CITY OF BOZEMAN, MONTANA
SCHEDULES OF REVEN UES, EXPENDITURES A ND CHA NGES IN FUND BALANCES - BUDGET TO A CT UA L
NONM AJOR GOVERNM EN TA L FUNDS
Ye ar Ended June 30, 2014
Sp ecial Revenue Funds
Variance Var iance
Positive Positive
Budget Actual (Negative)Budget Actual (Negat ive)
REVEN UES
Taxe s 130,891$ 100,913$ (29,978)$ 169,782$ 170,047$ 265$
Sp ecial assessment s - - - - - -
Licenses and p ermit s - - - - - -
Int ergovernment al 515,000 586,918 71,918 101,480 106,061 4,581
Charges for services 15,547 30,575 15,028 146,700 416,017 269,317
Fines and forfeit ures - - - - - -
Int erest on investment s 18,100 15,112 (2,988) - 3,446 3,446
Loan rep ay ment - 5,167 5,167 - - -
Other 27,000 109,797 82,797 16,000 12,624 (3,376)
Total revenues 706,538 848,482 141,944 433,962 708,195 274,233
EXPENDITURES - BUDGET
UNIT 1,320,141 976,347 343,794 782,979 736,646 46,333
Revenues over (under) expendit ures (613,603) (127,865) 485,738 (349,017) (28,451) 320,566
OTHER FINANCING SOURCES (USES)
Transfers in 75,000 84,900 9,900 199,036 184,036 (15,000)
Transfers out (71,500) (70,691) 809 - - -
Long-term debt issued - - - - - -
Sa le of cap it al assets - 3,905 3,905 - - -
Total ot her financing sources (uses)3,500 18,114 14,614 199,036 184,036 (15,000)
Revenues and ot her sources over
(under) expendit ures (610,103)$ (109,751) 500,352$ (149,981)$ 155,585 305,566$
FUND BALANCES, beginning of y ear 1,960,999 572,488
FUND BALANCES, end of y ear 1,851,248$ 728,073$
(cont inued)
Depart mental Special Revenues City Planning Board
119
CITY OF BOZEMAN, MONTANA
SCHEDULES OF REVENUES, EXPENDITURES A ND CHA NGES IN FUND BALANCES - BUDGET TO A CT UA L
NONM AJOR GOVERNMENT AL FUNDS (CONTINUED)
Ye ar Ended Ju ne 30, 2014
Sp ecial Revenue Funds
Varian ce Variance
Positive Positive
Budget Actual (Nega tive)Budget Actual (N egat ive)
REVEN UES
Taxe s 1,982,204$ 1,901,150$ (81,054)$ -$ -$ -$
Sp ecial as sessment s - - - - - -
Licenses and p ermit s - - - - - -
Int ergovernmental - - - - 25,812 25,812
Charges for services - - - - - -
Fines and forfeit ures - - - - - -
Int erest on investmen ts - 365 365 - 812 812
Loan rep ay ment - - - - - -
Other - - - - - -
Total revenues 1,982,204 1,901,515 (80,689) - 26,624 26,624
EX PENDITURES - BUDGET
UNIT - - - 30,515 30,041 474
Revenues over (under) expenditures 1,982,204 1,901,515 (80,689) (30,515) (3,417) 27,098
OT HER FINANCING SOURCES (USES)
Transfers in - - - 30,150 30,150 -
Transfers out (2,178,484) (2,124,374) 54,110 - - -
Long-t erm debt issued - - - - - -
Sale of cap it al assets - - - - - -
Total ot her financing sources (uses )(2,178,484) (2,124,374) 54,110 30,150 30,150 -
Revenues and ot her s ources over
(under) exp endit ures (196,280)$ (222,859) (26,579)$ (365)$ 26,733 27,098$
FUND BALANCES, beginning of y ear 449,342 96,598
FUND BALANCES, end of y ear 226,483$ 123,331$
(cont inued)
Healt h-M edical Insurance Communit y Trans port at io n
120
CITY OF BOZEMAN, MONTANA
Variance Variance
Positive Positive
Budget Actual (Nega tive)Budget Actual (Nega tive)
REVEN UES
Taxe s -$ -$ -$ -$ -$ -$
Sp ecial assessment s - - - 4,000 1,877 (2,123)
Licenses and p ermit s - - - - - -
Int ergovernment al 650,400 655,654 5,254 - 1,052 1,052
Charges for services - - - 420,745 425,148 4,403
Fines and forfeitures - - - - - -
Int eres t on investment s 4,000 3,983 (17) 2,000 1,696 (304)
Loan repayment - - - - - -
Other - - - 6,000 11,903 5,903
Total revenues 654,400 659,637 5,237 432,745 441,676 8,931
EX PENDITURES - BUDGET
UNIT 703,000 646,622 56,378 545,609 471,532 74,077
Revenues over (under) exp endit ures (48,600) 13,015 61,615 (112,864) (29,856) 83,008
OTHER FINANCING SOURCES (U SES)
Trans fers in - - - - - -
Trans fers out - - - - - -
Long-t erm debt issued - - - - - -
Sale of cap it al as sets - - - - 10,570 10,570
Total other financing sources (uses)- - - - 10,570 10,570
Revenues and ot her sources over
(under) expenditures (48,600)$ 13,015 61,615$ (112,864)$ (19,286) 93,578$
FUND BALANCES, beginning of y ear 644,563 252,213
FUND BALANCES, end of y ear 657,578$ 232,927$
(cont inued)
Tree Maintenance
Ye ar Ended Ju ne 30, 2014
Sp ecial Revenue Funds
Gas Tax Ap port ionment
SCHEDULES OF REVEN UES, EXPENDITURES A ND CHA NGES IN FUND BALANCES - BUDGET TO A CT UA L
NONM AJOR GOVERNMENTAL FUNDS (CONTINUED)
121
CITY OF BOZEMAN, MONTANA
Ye ar Ended Ju ne 30, 2014
Sp ecial Revenue Funds
Fire Imp act Fees Special Revenue
Variance Variance
Positive Positive
Budget Actual (Nega tive)Budget Actual (Negat ive)
REVEN UES
Taxes -$ -$ - 1,425,195$ 817,363$ (607,832)$
Sp ecial assessment s - - - 120,000 120,153 153
Licens es and p ermit s - - - - - -
Int ergovernment al - - - 31,158 45,437 14,279
Charges for services 190,000 296,261 106,261 - - -
Fines and forfeit ures - - - - - -
Int eres t on investment s - 2,428 2,428 11,000 14,951 3,951
Loan rep ay ment - - - - - -
Other - - - - - -
Total revenues 190,000 298,689 108,689 1,587,353 997,904 (589,449)
EX PENDIT URES - BUDGET
UNIT 3,500 2,635 865 1,672,600 350,839 1,321,761
Revenues over (under) expendit ures 186,500 296,054 109,554 (85,247) 647,065 732,312
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out - - - (438,388) (433,438) 4,950
Long-t erm debt issued - - - - - -
Sale of cap it al as sets - - - - - -
Total ot her financing sources (uses)- - - (438,388) (433,438) 4,950
Revenues and ot her sources over
(under) expendit ures 186,500$ 296,054 109,554$ (523,635)$ 213,627 737,262$
FUND BALANCES, beginning of y ear 167,943 1,503,742
FUND BALANCES, end of y ear 463,997$ 1,717,369$
(cont inued)
Downtown Imp rovement District
NONM AJOR GOVERNM ENTAL FUNDS (CONTINUED)
SCHEDULES OF REVENUES, EXPENDIT URES A ND CHA NGES IN FUND BA LA NCES - BUDGET T O A CT UA L
122
CITY OF BOZEMAN, MONTANA
SCHEDULES OF REVEN UES, EXPENDITURES A ND CHA NGES IN FUND BALANCES - BUDGET TO A CT UA L
NONM AJOR GOVERN MENT AL FUNDS (CONTINUED)
Ye ar Ended Ju ne 30, 2014
Sp ecial Revenue Funds
Variance Varian ce
Positive Positive
Budget Actual (N egat iv e)Budget Actual (Nega tive)
REVENUES
Taxe s -$ -$ -$ -$ -$ -$
Sp ecial assessments - - - - - -
Licenses an d p ermit s - - - - - -
Int ergo vernment al - - - - - -
Charges for services - - - - - -
Fines and forfeit ures - - - - - -
Int eres t on invest ments - 802 802 3,000 2,555 (445)
Loan rep ay ment - 48,620 48,620 5,000 5,000 -
Other - - - - - -
Total revenues - 49,422 49,422 8,000 7,555 (445)
EX PENDITURES - BUDGET
UNIT 41,000 41,000 - 47,000 40,000 7,000
Revenues over (under) expenditures (41,000) 8,422 49,422 (39,000) (32,445) 6,555
OTHER FINANCING SOURCES (USES)
Transfers in - - - 42,819 42,819 -
Transfers out - - - - - -
Long-t erm debt issued - - - - - -
Sale of cap it al as sets - - - - - -
Total ot her financing sources (uses)- - - 42,819 42,819 -
Revenues and ot her sources over
(under) expendit ures (41,000)$ 8,422 49,422$ 3,819$ 10,374 6,555$
FUND BALANCES, begi nning of y ear 638,559 337,394
FUND BALANCES, end of y ear 646,981$ 347,768$
(cont inued)
Economic Develop ment Revolving Loan Fumd Communit y Housing
123
CITY OF BOZEMAN, MONTANA
Variance Variance
Positive Positive
Budget Actual (Negative)Budget Actual (Nega tive)
REVEN UES
Taxe s -$ -$ -$ -$ -$ -$
Sp ecial as sessment s - - - - - -
Licenses and p ermit s - - - - - -
Intergovernment al - - - 56,000 133,525 77,525
Charges for services - - - - - -
Fines and forfeit ures - - - 50,000 45,885 (4,115)
Interest on investments 750 62 (688) - 311 311
Loan rep ay ment 4,950 5,193 243 - - -
Other - - - - - -
Total revenues 5,700 5,255 (445) 106,000 179,721 73,721
EX PENDITURES - BUDGET
UNIT 14,400 14,400 - 225,452 221,737 3,715
Revenues over (under) exp endit ures (8,700) (9,145) (445) (119,452) (42,016) 77,436
OTHER FINANCING SOURCES
Transfers in - - - 90,000 - (90,000)
Transfers out - - - - - -
Long-t erm debt issued - - - - - -
Sale of cap it al as sets - - 14,462 - - -
Total ot her financing sources (uses )- - 14,462 90,000 - (90,000)
Revenues and other sources over
(under) exp endit ures (8,700)$ (9,145) (445)$ (29,452)$ (42,016) (12,564)$
FUND BALANCES, beginning of y ear 14,462 69,296
FUND BALANCES, end of y ear 5,317$ 27,280$
(continued)
SCHEDULES OF REVENUES, EXPENDITURES A ND CHA NGES IN FUND BALANCES - BUDGET TO A CT UA L
NONM AJOR GOVERNMENTA L FUNDS (CONT INUED)
Year Ende d June 30, 2014
Sp ecial Revenue Funds
Drug ForfeituresHousing Revolving Loan Fund
124
CITY OF BOZEMAN, MONTANA
Variance Variance
Positive Positive
Budget Actual (Nega tive)Budget Actual (N egat ive)
REVENUES
Taxe s -$ -$ -$ -$ -$ -$
Sp ecial assessment s - - - - - -
Licenses and p ermit s - - - - - -
Int er go vernment al - - - - - -
Charges for services - - - - - -
Fines and forfeit ures 500 - (500) - - -
Int er est on investmen ts 1,500 1,126 (374) - - -
Loan rep ay ment - - - - - -
Other - - - - - -
Total revenues 2,000 1,126 (874) - - -
EX PENDITURES - BUDGET
UNIT - - - 20,000 19,125 875
Revenues over (under) exp endit ures 2,000 1,126 (874) (20,000) (19,125) 875
OTHER FINANCING SOURCES
Tran sfers in - - - - - -
Tran sfers out - - - - - -
Long-term debt issued - - - - - -
Sale of capital as sets - - - - - -
Total ot her financing sources (uses)- - - - - -
Revenues and ot her sources over
(under) expendit ures 2,000$ 1,126 (874)$ (20,000)$ (19,125) 875$
FUND BALANCES, beginning of y ear 153,405 408,000
FUND BALANCES, end of y ear 154,531$ 388,875$
(cont inued)
SCHEDULES OF REVEN UES, EXPENDITURES A ND CHA NGES IN FUND BA LA NCES - BUDGET TO A CT UA L
NONM AJOR GOVERNM ENTA L FUNDS (CONTINUED)
Year Ende d June 30, 2014
Law and Justice Center
Sp ecial Reven ue Funds
Cit y-County Drug Forfeit ures
125
CITY OF BOZEMAN, MONTANA
Year Ended June 30, 2014
Var iance Variance
Positive Positive
Budget Actual (Negat ive)Budget Actual (Nega tive)
REVENUES
Taxe s 645,000$ 747,455$ 102,455$ 79,000$ 106,872$ 27,872$
Sp ecial as sessment s - - - - - -
Licens es and p ermit s - - - - - -
Int ergovernment al - 19,067 19,067 - 201 201
Charges for ser vices - - - - - -
Fines and forfeit ures - - - - - -
Int eres t on investments 7,500 6,578 (922) 1,600 2,048 448
Loan rep ay ment - - - - - -
Other - 6,077 6,077 - - -
Total revenues 652,500 779,177 126,677 80,600 109,121 28,521
EX PENDITURES - BUDGET
UNIT 856,849 284,603 572,246 92,400 49,835 42,565
Revenues over (under) exp en dit ures (204,349) 494,574 698,923 (11,800) 59,286 71,086
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out (10,000) (10,000) - (5,000) (5,000) -
Long-t erm debt is sued - - - - - -
Sale of cap it al as sets - - - - - -
Total ot her financin g sources (uses )(10,000) (10,000) - (5,000) (5,000) -
Revenues and other sources over
(under) exp endit ures (214,349)$ 484,574 698,923$ (16,800)$ 54,286 71,086$
FUND BALANCES, begin ning of y ear 981,677 262,478
FUND BALANCES, end of y ear 1,466,251$ 316,764$
(continued)
NONM AJOR GOVERNMENTA L FUNDS (CONT INUED)
SCHEDULES OF REVEN UES, EXPENDITURES A ND CHA NGES IN FUND BALANCES - BUDGET TO A CT UA L
TIF N.E. Urb an Re newalTIF N 7t h Corridor
Sp ecial Revenue F unds
126
CITY OF BOZEMAN, MONTANA
Variance Va riance
Positive Positive
Budget Actual (N egat ive)Budget Actual (Nega tive)
REVEN UES
Taxe s -$ -$ -$ 339,564$ 337,202$ (2,362)$
Sp ecial as sessment s - - - - - -
Licens es and p ermit s - - - - - -
Int ergovernmental - - - - - -
Charges for services - - - - - -
Fines and forfeit ures 65,000 74,032 9,032 - - -
Int erest on investmen ts 3,500 2,950 (550) 1,000 359 (641)
Loan rep ay ment - - - - - -
Other - - - - - -
Total revenues 68,500 76,982 8,482 340,564 337,561 (3,003)
EX PENDITURES - BUDGET
UNIT 125,000 67,778 57,222 1,214,864 1,189,689 25,175
Revenues over (under) exp endit ures (56,500) 9,204 65,704 (874,300) (852,128) 22,172
OT HER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out - - - - - -
Long-t erm debt issued - - - - - -
Sale of cap it al assets - - - - - -
Total ot her financing sources (uses )- - - - - -
Revenues and ot her s ources over
(under) exp endit ures (56,500)$ 9,204 65,704$ (874,300)$ (852,128) 22,172$
FUND BALANCES, beginning of y ear 380,786 870,138
FUND BALANCES, end of y ear 389,990$ 18,010$
(cont inued)
SCHEDULES OF REVENUES, EXPENDITURES A ND CHA NGES IN FUND BALANCES - BUDGET TO A CT UA L
NONM AJOR GOVERNMENTA L FUNDS (CONT INUED)
Fire Dep art ment Equip ment
Year Ende d June 30, 2014
Vict im/Wit ness Advocat e
Sp ecial Revenue F unds
127
CITY OF BOZEMAN, MONTANA
Sp ecial Revenue F unds
Var iance Varian ce
Positive Positive
Budget Actual (N egat iv e)Budget Actual (Nega tive)
REVEN UES
Taxe s -$ -$ -$ -$ -$ -$
Sp ecial as sessment s 435,000 434,969 (31) 150,000 371,911 221,911
Licenses and p ermit s - - - - - -
Int er go vernment al - - - - - -
Charges for services - - - - - -
Fines and forfeit ures - - - - - -
Int er es t on inves tment s - - - - 5,001 5,001
Loan repaymen t - - - - - -
Other - - - - - -
Total revenues 435,000 434,969 (31) 150,000 376,912 226,912
EX PENDITURES - BUDGET
UNIT 435,000 431,137 3,863 388,300 385,638 2,662
Revenues over (under) exp enditures - 3,832 3,832 (238,300) (8,726) 229,574
OT HER FINANCING SOURCES (USES)
Tran sfers in - - - - - -
Tran sfers out - - - - - -
Long-t erm debt is sued - - - - - -
Sale of cap it al as sets - - - - - -
Total ot her financing sources (uses)- - - - - -
Revenues and other sources over
(under) expendit ures -$ 3,832 3,832$ (238,300)$ (8,726) 229,574$
FUND BALANCES, beginning of y ear 7,495 681,196
FUND BALANCES, end of y ear 11,327$ 672,470$
(cont inued)
NONM AJOR GOVER NM EN TA L FUNDS (CONTINUED)
SCHEDULES OF REVE NUES, EXPENDITURES A ND CHA NGES IN FUND BALANCES - BUDGET T O A CT UA L
Year Ende d June 30, 2014
St reet Light ingTourism Bus ines s Imp rovement District
128
CITY OF BOZEMAN, MONTANA
Var iance Variance
Positive Positive
Budget Actual (Negat ive)Budget Actual (Nega tive)
REVENUES
Taxe s -$ -$ -$ -$ -$ -$
Sp ecial as sessment s - - - - - -
Licens es and p ermit s - - - - - -
Int ergovernment al - - - - - -
Charges for ser vices - - - - - -
Fines and forfeit ures - - - - - -
Int eres t on investments - 2,190 2,190 - 1 1
Loan rep ay ment - - - - - -
Other - 10,435 10,435 - - -
Total revenues - 12,625 12,625 - 1 1
EX PENDITURES - BUDGET
UNIT - - - - - -
Revenues over (under) exp en dit ures - 12,625 12,625 - 1 1
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out - - - - - -
Long-t erm debt is sued - - - - - -
Sale of cap it al as sets - - - - - -
Total ot her financin g sources (uses )- - - - - -
Revenues and other sources over
(under) exp endit ures -$ 12,625 12,625$ -$ 1 1$
FUND BALANCES, begin ning of y ear 291,227 104
FUND BALANCES, end of y ear 303,852$ 105$
(continued)
NONM AJOR GOVERNMENTA L FUNDS (CONT INUED)
SCHEDULES OF REVEN UES, EXPENDITURES A ND CHA NGES IN FUND BALANCES - BUDGET TO A CT UA L
Year Ended June 30, 2014
Sp ecial Revenue F unds
Park Land Municip al Court Restitution
129
CITY OF BOZEMAN, MONTANA
Variance
Positive
Budget Actual (N egat ive)
REVEN UES
Taxes 4,771,636$ 4,181,002$ (590,634)$
Sp ecial assessment s 709,000 928,910 219,910
Licenses and p ermit s - - -
Int ergovernment al 1,354,038 1,573,727 219,689
Charges for services 772,992 1,168,001 395,009
Fines and forfeit ures 115,500 119,917 4,417
Int erest on investment s 53,950 66,776 12,826
Loan rep ay ment 9,950 63,980 54,030
Other 49,000 150,836 101,836
Total revenues 7,836,066 8,253,149 417,083
EXPENDITURES - BUDGET
UNIT 8,518,609 5,959,604 2,559,005
Revenues over (under) exp endit ures (682,543) 2,293,545 2,976,088
OTHER FINANCING SOURCES (USES)
Transfers in 437,005 341,905 (95,100)
Transfers out (2,703,372) (2,643,503) 59,869
Long-term debt issued - - -
Sa le of cap it al assets - 14,475 14,475
Total other financing sources (uses)(2,266,367) (2,287,123) (20,756)
Revenues and ot her sources over
(under) exp endit ures (2,948,910)$ 6,422 2,955,332$
FUND BALANCES, beginning of y ear 10,744,105
FUND BALANCES, end of y ear 10,750,527$
(cont inued)
Sp ecial Revenue Funds
SCHEDULES OF REVENUES, EXPENDIT URES A ND CHA NGES IN FUND BALANCES - BUDGET T O A CT UA L
NONM AJOR GOVERNM EN TAL FUNDS (CONTINUED)
Year Ende d June 30, 2014
Total
130
CITY OF BOZEMAN, MONTANA
Debt Ser vice Funds
Variance Variance
Positive Positive
Budget Actual (N egat iv e)Budget Actual (N egat iv e)
REVENUES
Taxe s -$ -$ -$ 706,500$ 694,947$ (11,553)$
Int eres t on invest ments 20,000 18,854 (1,146) - - -
Loan rep ay ment - - - - - -
Other 11,240 1,443 - - - -
Total revenue 31,240 20,297 (1,146) 706,500 694,947 (11,553)
EX PENDITURES
Other - - - - - -
Debt service
Princip al - - - 660,000 660,000 -
Int eres t and fiscal fees - - - 50,500 46,975 3,525
Total expendit ures - - - 710,500 706,975 3,525
Revenues over (under)
expendit ures 31,240 20,297 (10,943) (4,000) (12,028) (8,028)
OTHER FINANCING SOURCES
(USES)
Transfers in - 143,528 143,528 - - -
Transfers out (200,000) - 200,000 - - -
Total ot her financing
sources (uses )(200,000) 143,528 343,528 - - -
Revenues and ot her sources over
(under) expendit ures (168,760)$ 163,825 332,585$ (4,000)$ (12,028) (8,028)$
FUND BALANCES, begi nning of y ear 2,447,533 122,146
FUND BALANCES, end of y ear 2,611,358$ 110,118$
(cont inued)
G.O. Bonds
SCHEDULES OF REVENUES, EXPENDITURES A ND CHA NGES IN FUND BA LA NCES - BUDGET A ND A CTUA L
NONM AJOR GOVERNMENTAL FUNDS (CONTINUED)
Ye ar Ended June 30, 2014
SID Revolving
131
CITY OF BOZEMAN, MONTANA
Variance Variance
Favorable Positive
Budget Actual (Unfavorable)Budget Actual (Nega tive)
REVEN UES
Taxe s -$ -$ -$ 706,500$ 694,947$ (11,553)$
Int erest on investment s - - - 20,000 18,854 (1,146)
Loan repayment - - - - - -
Other - - - 11,240 1,443 (9,797)
Total revenue - - - 737,740 715,244 (22,496)
EXPENDITURES
Other - - - - - -
Debt service
Princip al 175,000 180,000 (5,000) 835,000 840,000 (5,000)
Interest and fiscal fees 253,388 243,438 9,950 303,888 290,413 13,475
Total expendit ures 428,388 423,438 4,950 1,138,888 1,130,413 8,475
Revenues over (under)
expenditures (428,388) (423,438) 4,950 (401,148) (415,169) (14,021)
OTHER FINANCING SOURCES
(U SES)
Transfers in 428,388 423,438 (4,950) 428,388 566,966 138,578
Transfers out - - - (200,000) - 200,000
Total ot her financing
sources (uses )428,388 423,438 (4,950) 228,388 566,966 338,578
Revenues and other sources over
(under) expendit ures -$ - -$ (172,760)$ 151,797 324,557$
FUND BALANCES, beginning of y ear - 2,569,679
FUND BALANCES, end of y ear -$ 2,721,476$
(cont inued)
TIF Bonds Total
Debt Service Funds
SCHEDULES OF REVEN UES, EXPENDITURES A ND CHA NGES IN FUND BA LA NCES - BUDGET A ND A CTUA L
NONM AJOR GOVERNMENTAL FUNDS
Ye ar Ended Ju ne 30, 2014
132
CITY OF BOZEMAN, MONTANA
Var iance Var iance
Positive Positive
Budget Actual (Nega tive)Budget Actual (Nega tive)
REVEN UES
Int ergo vernment al -$ 39,916$ 39,916$ -$ -$ -$
Charges for services - - - 80,000 89,046 9,046
Int eres t on investment s - 62,967 62,967 8,000 6,106 (1,894)
Total revenues - 102,883 102,883 88,000 95,152 7,152
EX PENDITURES - BUDGET
UNIT 5,041,380 807,583 4,233,797 - - -
Revenues over (under) expendit ures (5,041,380) (704,700) 4,336,680 88,000 95,152 7,152
OTHER F INANCING SOURCES (USES)
Lo ng-t erm debt is sued 5,000,000 10,012,647 5,012,647 - - -
Sa le of fixed assets - 199,550 - - - -
Total ot her financing sources (uses)5,000,000 10,213,435 5,013,885 - - -
Revenues and ot her s ources over
(under) expendit ures (41,380)$ 9,508,735 9,550,115$ 88,000$ 95,152 7,152$
FUND BALANCES, beginning of y ear 456,669 785,530
FUND BALANCES, end of y ear 9,965,404$ 880,682$
SCHEDULES OF REVEN UES, EXPENDITURES A ND CHA NGES IN FUND BA LA NCES - BUDGET A ND A CT UA L
NONM AJOR GOVERNM ENTA L FUNDS (CONTINUED)
Cemet ery Perp et ual Care
Permanent FundCapital Project s Fund
General Imp rovement s
Year Ended June 30, 2014
COMBINING NONMAJOR PROPRIETARY FUNDS
NONMAJOR PROPRIETARY FUNDS
133
CITY OF BOZEMAN, MONTANA
Busines s-t ype Activit ies
En terp rise Funds
Parking St ormwater
Fund Fund Total
ASSET S
Current as sets
Cash and invest ment s 15,095$ 116,841$ 131,936$
Receiv ab les
Cus tomers, net 86,331 27,995 114,326
Total current assets 101,426 144,836 246,262
Non current assets
Other assets
Not es receivable 15,924 - 15,924
Res trict ed cas h and invest men ts 270,450 - 270,450
Total ot her asset s 286,374 - 286,374
Prop ert y, p lant and equip ment, net
N ondep reciable:
Land 303,436 - 303,436
D ep reciable:
Buildings 11,629,362 - 11,629,362
Other s truct ures and imp rovement s - - -
Machinery and equip ment 98,918 159,278 258,196
Veh icles 62,753 95,828 158,581
Infrastruct ure -
Accumulat ed dep reciat ion and amort iz at ion (3,016,098) (139,768) (3,155,866)
Net prop er ty, p lant and equipment 9,078,371 115,338 9,193,709
Total non current as sets 9,364,745 115,338 9,480,083
Total assets 9,466,171$ 260,174$ 9,726,345$
NON M AJOR PROPRIET ARY FUNDS
June 30, 2014
COM BININ G STATEMENT OF NET POSIT ION
134
CITY OF BOZEMAN, MONTANA
Business-type A ct ivit ies
Ent erprise F unds
Parking St ormwater
Fund Fund Total
LIABILITIES
Current liabilit ies:
Account s payable and accrued expenses 21,268$ 4,722$ 25,990$
Comp ensat ed absences p ay able 17,431 3,709 21,140
Total current liabilit ies 38,699 8,431 47,130
Noncurrent liabilit ies
26,900 1,827 28,727
Total noncurrent liabilit ies 26,900 1,827 28,727
Total liabilit ies 65,599 10,258 75,857
NET POSITION
Net Investment in cap it al as sets 9,078,371 115,338 9,193,709
Restrict ed for imp act cap it al project s - - -
Restrict ed for p arking cap it al project s 270,450 - 270,450
Restrict ed for debt service - - -
Unrestrict ed 51,751 134,578 186,329
Total net p osit ion 9,400,572 249,916 9,650,488
Total liabilit ies and net position 9,466,171$ 260,174$ 9,726,345$
Other p ost-emp loyment healt h benefits -
imp licit rat e subsidy
COM BINING STATEMENT OF NET POSIT ION (CONTINUED)
NON MAJOR PROPRIETARY FUNDS
June 30, 2014
135
CITY OF BOZEMAN, MONTANA
Parking St ormwater
Fund Fund Totals
OPERATING REVEN UES
Charges for services 602,838$ 262,781$ 865,619$
OPERATING EXPENSES
Salaries and benefits 272,241 96,363 368,604
Materials and sup plies 43,851 1,547 45,398
Rep airs and maintenance 9,302 - 9,302
Utilit ies 29,890 958 30,848
Administrat ive charges 60,750 986 61,736
Other expenses 103,750 31,682 135,432
Depreciat ion and amortiz at ion 285,490 29,644 315,134
Changes in estimat ed closure and p ost-
closure care costs - - -
Total op erat ing expenses 805,274 161,180 966,454
Op erat ing income (loss)(202,436) 101,601 (100,835)
NON-OPERATING REVENUES (EXPENSES)
Int eres t income 1,933 430 2,363
Int eres t expense - - -
Other income 4,343 - 4,343
Int ergo vernment al income 205 5,320 5,525
Imp act fees - - -
Gain (loss) on disposal of assets - - -
Total non-op erat ing revenues (exp enses )6,481 5,750 12,231
Income (loss) before cont ribut ions and t ransfers (195,955) 107,351 (88,604)
Cont ribut ions of infrastruct ure - develop ers - - -
Transfers in 10,000 - 10,000
Transfers out - - -
Change in net p osit ion (185,955) 107,351 (78,604)
NET POSIT IO N, beginning of y ear 9,586,527 142,565 9,729,092
NET POSIT IO N, end of y ear 9,400,572$ 249,916$ 9,650,488$
Business-type Activities
Enterp rise Funds
COM BINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSIT ION
- NON M AJOR PROPRIETARY FUNDS
Year Ended June 30, 2014
136
CITY OF BOZEMAN, MONTANA
Parking St ormwat er
Fund Fund Total
CA SH FLO WS FROM OPERA TING ACT IVITIES
Receip ts from customer s 539,545$ 256,334$ 795,879$
Receip ts from ot hers 4,343 - 4,343
Operat ing lo ans from ot her funds - - -
Paymen ts to sup pliers (207,873) (34,723) (242,596)
Paymen ts to emp loy ees (262,127) (93,217) (355,344)
Paymen ts to int ernal ser vice funds and administrat iv e fees (60,750) (986) (61,736)
Net cas h flows from op erat ing act ivit ies 13,138 127,408 140,546
CA SH FLO WS FROM NON-CAPITAL FINANCING ACT IVIT IES
Transfers in 10,000 - 10,000
Transfers out - - -
Receip ts from grant s and int ergovernment al sources 205 5,320 5,525
Net cas h flows from non-cap it al financing act ivit ies 10,205 5,320 15,525
Acquisition of cap it al as sets - (16,317) (16,317)
Princip al p aid on bonds, int erfund loans , loans and leas es - - -
Interest paid on bonds, int er fund loans, loans and leas es - - -
Proceeds from issuance of long-t erm debt - - -
Imp act fees receiv ed - - -
Proceeds from sale of p rop ert y, p lant an d equipmen t - - -
Net cas h flows from cap it al and relat ed financing act ivit ies - (16,317) (16,317)
CA SH FLO WS FROM INVEST IN G ACT IVIT IES
Collect ions on not es 2,383 - 2,383
Interest on investment s 1,933 430 2,363
Net cas h flows from investing act ivit ies 4,316 430 4,746
Net change in cas h and investment s 27,659 116,841 144,500
Cas h and investment s, begi nning of y ear 257,886 - 257,886
Cas h and investment s, end of y ear 285,545$ 116,841$ 402,386$
Clas sified as:
Cash and invest ment s 15,095$ 116,841$ 131,936$
Restrict ed cas h and inves tment s 270,450 - 270,450
Totals 285,545$ 116,841$ 402,386$
CA SH FLO WS FROM CAPIT AL AND RELA TED
FINANCING ACT IVIT IES
ST ATEMENT OF CASH FLOWS - NON-M AJOR PROPRIETARY FUNDS
Year Ended J une 30, 2014
137
CITY OF BOZEMAN, MONTANA
Parking St ormwat er
RECONCILIAT ION OF OPERAT ING INCOM E TO Fund Fund Total
NET CASH FROM OPERA TING ACTIVI TIES:
Op erat in g income (los s)(202,436)$ 101,601$ (100,835)$
Adjustmen ts t o reconcile op erat ing income (los s)
to net cas h p rovided (used) by op erat ing act ivit ies
Depreciat ion and amort iz at ion 285,490 29,644 315,134
Other income 4,343 - 4,343
Change in A ssets and Liabilit ies:
(Increas e) Decreas e in:
Acco unt s receivab le (63,293) (6,447) (69,740)
Ot her governments receivable - - -
Increas e (Decreas e) in:
Acco unt s p ay able (3,061) 3,524 463
Accrued emp loy ee benefit s p ay ab le 10,114 3,146 13,260
Int erfund Borrowings (18,019) (4,060) (22,079)
Total adju stment s 215,574 25,807 241,381
Net cas h p rovided (used) by
op erat in g act ivit ies 13,138$ 127,408$ 140,546$
ST ATEM EN T OF CASH FLOWS - NON MAJOR P RO PRIETARY FUNDS (CO NTINUED)
Year Ended June 30, 2014
INTERNAL SERVICE FUND STATEMENTS
IN TERNAL SERVICE FUNDS
Internal Service Funds are used to account for the goods or services provided by one department to other departments of the City on a cost-
reimbursement basis.
Vehicle Maintenance Shop –Accounts for the maintenance and repair of vehicles used in operation of City services.
Medical Health Insurance –Accounts for insurance premiums received from the various City departments and retirees, and the related costs
of health and dental premiums paid to the City’s insurance provider.
138
CITY OF BOZEMAN, MONTANA
Ve hicle Medical
Main tenance He alth
Sh op In surance To tal
ASSETS
Cu rrent as sets
Ca sh and eq uivale nts 467,538$ 234,881$ 702,419$
Cu stomer receivables , n et - 15,988 15,988
To tal curre nt assets 467,538 250,869 718,407
Machinery and equipment 167,302 - 167,302
Ve hicles 83,812 - 83,812
Bu ild in gs 1,388,583 - 1,388,583
Le ss: accumulated depreciation (418,748) - (418,748)
Ne t property, p la nt, a nd equipment 1,220,949 - 1,220,949
To tal assets 1,688,487$ 250,869$ 1,939,356$
LI ABILITIES
Cu rrent lia bilit ie s
Accounts p ayable 51,148$ -$ 51,148$
Co mp ensated abs ences p ayable 20,515 - 20,515
Other p ost-emp loy ment healt h benefits - imp licit rat e subsidy 23,645 - 23,645
To tal curre nt lia bilit ie s 95,308 - 95,308
NET POSIT ION
Ne t in ves tment in c apital assets 1,220,949 - 1,220,949
Un restric ted 372,230 250,869 623,099
To tal net pos it io n 1,593,179$ 250,869$ 1,844,048$
COM BINING STA TEMENT OF NET POSITION
Ju ne 30, 2014
INTERNA L SERVICE FUNDS
139
CITY OF BOZEMAN, MONTANA
Ve hicle Medical
Maintenance He alth
Shop In surance Total
OPERA TING REVENUES
Ch arges fo r s ervices 959,472$ 4,106,971$ 5,066,443$
OPERA TING EXPENSES
Salarie s and benefit s 327,186 - 327,186
Materia ls and supplie s 609,048 - 609,048
Re pairs and ma in tenance 7,938 - 7,938
Ut ilit ie s 5,028 - 5,028
Admin is trative charges 56,916 - 56,916
In sura nce claims - 3,775,898 3,775,898
Ot her exp en ses 25,914 83,002 108,916
De preciation 54,197 - 54,197
To tal o perating expenses 1,086,227 3,858,900 4,945,127
Op erating in come (loss)(126,755) 248,071 121,316
NON-OPERA TING REVEN UES (EXPENSES)
In teres t in come 3,425 - 3,425
In teres t expense - (370) (370)
Ot her in come 3,627 3,168 6,795
Sale of a ssets 1,125 - 1,125
To tal n on-opera ting revenue (e xp ens es )8,177 2,798 10,975
Ch ange in n et posit io n (118,578) 250,869 132,291
NET POSITION, b eginning of y ear 1,711,757 - 1,711,757
NET POSITION, e nd of y ear 1,593,179$ 250,869$ 1,844,048$
COM BINING STA TEMENT OF REVEN UES, EXPENSES A ND CHA NGES IN NET POSITION
INTERNAL SERVICE FUNDS
Ye ar Ended June 30, 2014
140
CITY OF BOZEMAN, MONTANA
Ve hicle Medical
Main tenance He alth
Sh op In sura nce Total
CA SH FLOW S FROM OPERA TIONS:
Re ceipts fro m customers 959,472$ 4,105,139$ 5,064,611$
Re ceipts fro m others 3,627 3,168 6,795
Op erating lo an s fro m other Cit y fu nds - - -
Payme nts t o supplie rs (622,114) (97,158) (719,272)
Payme nts t o employees (323,522) (3,775,898) (4,099,420)
Payme nts t o In ternal Serv ic e Funds and admin is trative fe es (56,916) - (56,916)
Net Ca sh Flo ws Fro m Op erating Activities (39,453) 235,251 195,798
CA SH FLOW S FROM CA PITAL A ND RELA TED FINA NCING A CT IVITIES:
Additions t o property, p la nt an d equipment (16,980) - (16,980)
Pro ceeds fro m sale o f c apit al a ssets 1,125 - 1,125
In teres t paid o n bonds , in terfu nd lo ans , lo ans and le as es - (370) (370)
Net Ca sh Flo ws Fro m Ca pital a nd Re la ted Fin ancing Activities (15,855) (370) (16,225)
CA SH FLOW S FROM INVES TING A CT IVITIES:
In teres t on in vestme nts 3,423 - 3,423
Ne t In creas e (De creas e) in Ca sh and Ca sh Equivale nts (51,885) 234,881 182,996
CA SH A ND EQUIVALENTS, b eginning of y ear 519,423 - 519,423
CA SH A ND EQUIVALENTS, end of y ear 467,538$ 234,881$ 702,419$
(continued)
INTER NA L SERVICE FUNDS
COM BINING STA TEMENT OF CA SH FLOW S
Ye ar Ended Ju ne 30, 2014
141
CITY OF BOZEMAN, MONTANA
Ve hicle Medical
Maintenance He alth
RECONCILIAT IO N OF OPERAT ING INCOM E T O Sh op In sura nce To tal
NET CASH FROM OPERAT ING ACTIVIT IES:
OPERA TING INCOM E (LOSS)(126,755)$ 248,071$ 121,316$
Adjustments t o re concile o perating in come (lo ss)
to net cash provided (u sed) b y operating activities
Depreciation 54,197 - 54,197
Other in come 3,627 3,168 6,795
Ch anges in a ssets and lia bilit ie s:
(In creas e) De creas e in :
Customer receivables - (1,832) (1,832)
Prepaid expenses - - -
In creas e (De creas e) in:
A ccounts p ayab le 25,814 (68) 25,746
Compensated ab sences p ayable 3,664 (14,088) (10,424)
In terfu nd borro win gs - - -
Total a djustments 87,302 (12,820) 74,482
Net cas h provided (u sed) b y operating activities (39,453)$ 235,251$ 195,798$
INTERNA L SERVICE FUNDS
COMBINING STA TEMENT OF CASH FLOW S (CONTINUED)
Ye ar Ended June 30, 2014
AGENCY FUND STATEMENTS
AGENCY FUNDS
Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments.
Montana Arts Council –Accounts for pass-through monies received from the State of Montana to fund local chapters of cultural
enhancement activities such as the Bozeman Symphony Orchestra, Montana Ballet, Mandolin Society, Intermountain Opera Association,
and the Emerson Cultural Center.
Municipal Court –Accounts for monies held for appearance bonds and restitution related to criminal arrests and reimbursement for damage
caused.
CMC Bozeman Site Remediation Fund -Accounts for pass-through monies provided by the State of Montana Department of Environmental
Quality to Olive & Wallace, LLC, to reimburse the cost of work performed as part of the Voluntary Cleanup Plan of the CMC Asbestos
Bozeman Facility.
142
CITY OF BOZEMAN, MONTANA
AGENCY FUNDS
COM BINING STATEM EN T OF FIDUCIA RY NET POSITION
Ju ne 30, 2014
CM C To tal
Montana Municipal Bo ze ma n Site Agency
Arts Council Co urt Re me diation Fu nds
ASSETS
Ca sh and cas h equivalents -$ 353,326$ -$ 353,326$
Cu stomer receivables - 705 1,573 2,278
Total assets -$ 354,031$ 1,573$ 355,604$
LI ABILITIES
Accounts p ayable - 354,031$ 1,573$ 355,604$
Total lia bilit ie s -$ 354,031$ 1,573$ 355,604$
143
CITY OF BOZEMAN, MONTANA
Mont ana
Art s Council
Balance
June 30, 2013 Additions Delet ions
Balance
June 30, 2014
ASSETS
Cash and cash equivalent s 9,812$ 1,090$ (10,902)$ -$
Total as sets 9,812$ 1,090$ (10,902)$ -$
LI ABILIT IES
Account s p ay able 9,812$ 1,090$ (10,902)$ -$
Total liabilit ies 9,812$ 1,090$ (10,902)$ -$
Municip al
Court
Balance
June 30, 2013 Additions Delet ions
Balance
June 30, 2014
ASSETS
Cash and cash equivalent s 301,556$ 51,770$ -$ 353,326$
Customer receivables 335 370 705
Total as sets 301,891$ 52,140$ -$ 354,031$
LI ABILIT IES
Account s p ay able 301,891$ 52,140$ -$ 354,031$
Total liabilit ies 301,891$ 52,140$ -$ 354,031$
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year ende d June 30, 2014
144
CITY OF BOZEMAN, MONTANA
CM C Boz eman
Sit e Remediat ion
Balance
June 30, 2013 Additions Delet ions
Balance
June 30, 2014
ASSETS
Cash and cash equivalent s -$ 125,174$ (125,174)$ -$
Customer receivables - 1,573 - 1,573
Total assets
-$ 126,747$ (125,174)$ 1,573$
LIABILIT IES
Account s p ay ab le -$ 126,747$ (125,174)$ 1,573$
Total liabilit ies
-$ 126,747$ (125,174)$ 1,573$
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year ended June 30, 2014
PART III
STATISTICAL SECTION
Statistical Section
This part of the City of Bozeman's comprehensive annual financial report presents detailed information as a context for understanding what the information in
the financial statements, note disclosures and required supplementary information says about the government's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time
Revenue Capacity
These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's
ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities
take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the
services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the City of Bozeman comprehensive annual financial reports for the
relevant year.
This information is unaudited
FINANCIAL TRENDS SECTION
145
CITY OF BOZEMAN, MONTANA
NET POSITION BY COMPO NENT
Past Te n Fi scal Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Government al act ivit ies
Net investment in cap it al as sets 8,409,053 22,987,166 77,734,584 80,873,924 83,707,824 84,113,904 88,844,404 88,500,437 89,081,484 89,267,076
Restrict ed 12,343,248 5,242,903 546,916 9,254,307 7,699,511 8,082,181 20,962,038 20,797,365 27,255,029 35,621,803
Unrestrict ed 21,077,779 25,537,959 28,481,673 23,443,921 20,871,106 25,076,908 16,049,044 15,470,543 11,521,053 12,127,224
Total government al act ivit ies 41,830,080$53,768,028$ 106,763,173$113,572,152$112,278,441$117,272,993$125,855,486$124,768,345$127,857,566$137,016,103$
Busin ess-type act ivit ies
Net investment in cap it al as sets 28,124,307 28,416,015 154,227,534 177,379,168 188,077,778 189,965,189 188,180,889 192,485,459 199,394,551 205,501,357
Restrict ed 11,041,147 13,462,443 17,099,866 18,322,089 19,775,588 9,044,280 12,660,466 11,446,886 3,098,125 3,372,927
Unrestrict ed 12,284,379 12,899,363 16,550,235 17,547,218 11,936,119 16,069,597 12,382,018 2,809,558 10,643,337 8,723,353
Total business-t ype act iv it ies 51,449,833$54,777,821$ 187,877,635$213,248,475$219,789,485$215,079,066$213,223,373$206,741,903$213,136,013$217,597,637$
Primary go vernment
Net investment in cap it al as sets 36,533,360 51,403,181 231,962,118 258,253,092 271,785,602 274,079,093 277,025,293 280,985,896 288,476,035 294,768,433
Restrict ed 23,384,395 18,705,346 17,646,782 27,576,396 27,475,099 17,126,461 33,622,504 32,244,251 30,353,154 38,994,730
Unrestrict ed 33,362,158 38,437,322 45,031,908 40,991,139 32,807,225 41,146,505 28,431,062 18,280,101 22,164,390 20,850,577
Total p rimary government net p osition 93,279,913$108,545,849$294,640,808$326,820,627$332,067,926$332,352,059$339,078,859$331,510,248$340,993,579$354,613,740$
Fi scal Year
146
CITY OF BOZEMAN, MONTANA
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Ex pe nses
Government al A ct ivit ies:
General G overnment 4,986,413 5,666,069 5,733,371 6,969,181 6,629,783 6,299,831 6,122,190 8,706,665 7,373,368 6,989,830
Public Saf et y 8,834,875 9,858,055 10,488,873 11,183,637 11,556,016 12,382,157 12,859,702 13,215,680 14,340,301 15,297,088
Public Ser vice 3,475,067 4,163,644 8,511,308 8,979,085 10,130,184 9,703,594 9,190,515 8,174,461 3,939,061 6,031,768
Public Welfare 4,372,959 5,477,065 5,536,741 5,412,192 6,465,940 6,915,557 7,500,727 7,249,008 6,518,822 7,417,158
Interes t and Fiscal F ees 709,178 550,296 549,667 649,226 737,762 714,714 679,652 636,478 433,766 179,280
Total Government al A ct ivit ies Expenses 22,378,492$25,715,129$30,819,960$33,193,321$35,519,685$ 36,015,853$ 36,352,786$ 37,982,292$ 32,605,318$ 35,915,124$
Business-Type Act ivit ies :
Wat er 4,292,503 4,824,505 10,490,811 11,150,266 11,872,984 12,016,149 11,649,639 11,674,222 6,154,746 6,869,870
Was te Wat er 4,246,156 4,586,959 7,376,348 8,061,412 10,293,894 9,143,077 10,128,397 10,203,165 6,121,663 8,955,592
So lid Waste 2,720,738 3,547,902 3,283,135 2,574,651 2,687,590 2,561,124 2,578,109 2,584,899 2,475,680 6,958,209
Non-M ajor Act ivit ies 766,454 967,077 991,712 990,229 852,561 966,454
Total Bus iness-Type Act ivit ies Expenses 11,259,397 12,959,366 21,150,294 21,786,329 25,620,922 24,687,427 25,347,857 25,452,515 15,604,650 23,750,125
Total P rimary Government Expenses 33,637,889$38,674,495$51,970,254$54,979,650 61,140,607 60,703,280 61,700,643 63,434,807 48,209,968 59,665,249
Program Revenues
Government al A ct ivit ies:
Charges for Services :
General G overnment 1,261,652 1,496,818 2,023,362 2,237,962 1,795,469 2,774,869 2,870,443 1,949,125 1,966,966 2,453,015
Public Saf et y 1,898,531 1,984,642 3,712,280 3,575,133 3,500,929 2,414,893 2,684,724 2,638,811 3,219,231 3,290,573
Public Ser vice 10,302,583 9,217,198 5,361,852 4,858,444 4,790,460 3,742,856 4,454,492 4,983,420 6,655,604 7,623,178
Public Welfare 567,471 718,162 704,790 713,342 779,841 399,280 451,960 1,102,896 1,593,212 613,322
Op erat ing Grants and Cont ributions 360,980 502,198 409,263 502,863 439,131 693,342 1,114,835 566,586 406,239 457,354
Capital Grants and Cont ribut ions 513,034 1,380,553 18,694,375 7,153,103 8,219,791 5,307,118 7,867,093 635,758 844,935 4,762,416
Total Government al A ct ivit ies Program Revenues 14,904,251$15,299,571$30,905,922$19,040,847$19,525,621$ 15,332,358$ 19,443,547$ 11,876,596$ 14,686,187$ 19,199,858$
Business-Type Act ivit ies
Charges for Services :
Wat er 6,547,228 7,434,574 8,604,498 8,222,724 7,221,378 6,986,247 7,064,571 7,921,483 9,585,939 9,842,699
Was te Wat er 6,074,615 6,430,206 7,052,987 6,918,132 6,052,668 6,505,119 6,930,036 7,488,473 8,560,438 8,852,738
So lid Waste 3,648,930 2,582,437 2,428,230 2,608,662 2,391,641 2,716,981 2,569,607 2,570,644 2,532,676 2,725,465
Non-M ajor Act ivit ies - - - - 467,607 326,820 417,114 382,968 644,672 872,325
Op erat ing Grants and Cont ributions 36,129 - - - - - - - - 9,596
Capital Grants and Cont ribut ions:1,595,805 1,624,237 26,464,222 29,405,599 6,465,230 3,621,051 6,589,612 566,138 156,123 5,898,923
Total Bus iness Activit ies Program Revenues 17,902,707 18,071,454 44,549,937 47,155,117 22,598,524 20,156,218 23,570,940 18,929,706 21,479,848 28,201,746
Total P rimary Government Program Revenues 32,806,958$33,371,025$75,455,859$66,195,964 42,124,145 35,488,576 43,014,487 30,806,302 36,166,035 47,401,604
CHAN GES IN NET POSITIO N
Past Te n Fiscal Years
(accrual basis of accounti ng)
Fi scal Year
147
CITY OF BOZEMAN, MONTANA
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Ne t (Expense) / Revenue
Government al Activit ies (7,474,241) (10,415,558)85,962 (14,152,474)(15,994,064) (20,683,495) (16,909,239) (26,105,696) (17,919,131) (16,715,266)
Business-T ype Act ivit ies 6,643,310 5,112,088 23,399,643 25,368,788 (3,022,398) (4,531,209) (1,776,917) (6,522,809) 5,875,198 4,060,921
Total Primary Government Net Expens e (830,931)$ (5,303,470)$ 23,485,605$11,216,314$(19,016,462)$(25,214,704)$(18,686,156)$(32,628,505)$(12,043,933)$(12,654,345)$
General Revenues and Ot her Changes in N et Position
Government al Activit ies :
T axes
Prop ert y Taxe s 10,437,702 11,137,006 11,836,748 12,070,765 14,629,230 15,501,316 16,342,053 15,716,055 16,429,959 17,561,022
Unrestrict ed Grant s and Cont ribut ions 4,910,306 5,163,288 5,375,807 5,617,243 6,125,789 6,284,467 6,782,383 6,898,717 6,342,884 7,436,419
Invest ment Earnings 606,120 852,222 1,093,115 1,362,790 671,859 352,378 301,424 283,090 243,744 355,790
M iscellaneous 2,422,805 3,416,890 1,940,156 1,859,313 2,766,671 2,256,071 1,556,790 155,484 - 293,884
Sale of Capital Assets - - 490,637 51,342 68,057 761,952 (8,168) 4,414 1,765 236,688
T rans fers of Capital Assets - - - - (6,311,324) - - (2,088) - -
T rans fers - 1,784,100 489,780 - (3,249,929) 521,863 517,250 (37,136) (10,000) (10,000)
Extraordinary Items (2,231,410) - - - - - - - - -
Total Government al Activit ies 16,145,523$22,353,506$21,226,243$20,961,453$14,700,353$ 25,678,047$ 25,491,732$ 23,018,536$ 23,008,352$ 25,873,803$
Business-T ype Act ivit ies :
Unrestrict ed Grant s and Cont ribut ions - - 3,182 2,052 2,155 342,653 438,475 2,115 508,912 -
T rans fers of Capital Assets - - - - 6,311,324 - - 2,088 - -
ARRA debt forgivenes s - - - - - - - - - 390,700
T rans fers - (1,784,100) (489,780) - 3,249,929 (521,863) (517,251) 37,136 10,000 10,000
Extraordinary Items (2,899,924) - - - - - - - - -
Total Busines s-T ype Act ivit ies (2,899,924) (1,784,100) (486,598) 2,052 9,563,408 (179,210) (78,776) 41,339 518,912 400,700
Total Primary Government 13,245,599$20,569,406$20,739,645$20,963,505 24,263,761 25,498,837 25,412,956 23,059,875 23,527,264 26,274,503
Change i n Net Posi ti on
Government al Activit ies 8,671,282 11,937,948 21,312,205 6,808,979 (1,293,711) 4,994,552 8,582,493 (3,087,160) 5,089,221 9,158,537
Business-T ype Act ivit ies 3,743,386 3,327,988 22,913,045 25,370,840 6,541,010 (4,710,419) (1,855,693) (6,481,470) 6,394,110 4,461,621
Total Primary Government 12,414,668$15,265,936$44,225,250$32,179,819$5,247,299$ 284,133$ 6,726,800$ (9,568,630)$ 11,483,331$ 13,620,158$
Fi scal Year
CHAN GES IN NET PO SITION
Pas t Te n Fiscal Years
(accrual basis of accounting)
148
CITY OF BOZEMAN, MONTANA
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Ge neral Fu nd
Re serv ed 11,687 5,725 3,000 3,000 63,000 -
Un re serv ed 3,996,600 3,173,374 4,367,538 4,516,814 5,301,397 5,119,400
No nspendable - - - -
Re stric ted - - - -
Co mmi tted - - - -
Assigned 5,991,388 7,062,964 7,327,375 6,420,760
Un as signed 905,862 264,091 - 193,534
Total general fu nd 4,008,287 3,179,099 4,370,538 4,519,814 5,364,397 5,119,400 6,897,250 7,327,055 7,327,375 6,614,294
All Ot her Governmental
Re serv ed 1,606,904 2,164,698 2,996,832 3,045,231 2,660,918 6,597,569
Un re serv ed, reported in :
Sp ecial re venue fu nds 16,296,309 9,776,823 13,205,328 13,723,846 12,516,240 14,916,152
Ca pital projects fu nds 4,545,867 6,598,235 - 2,884,553 - 1,793,287
De bt serv ic e fu nds - - - - - -
No nspendable 999,464 1,113,484 1,193,530 1,269,557
Re stric ted 19,962,574 19,683,881 26,061,499 19,927,526
Co mmi tted 3,278,422 3,463,714 851,322 3,075,505
Assigned 58,419 - - 229,602
Un as signed - (51,586) 456,669 (184,101)
22,449,080 18,539,756 16,202,160 19,653,630 15,177,158 23,307,008 24,298,879 24,209,493 28,563,020 24,318,089
No te: The Cit y of Bozeman implemented the new s tandards fo r re porting fu nd bala nce GA SB Statement 54 in fis cal y ear 2011
Total all other g overn me ntal
fu nds
FUND B ALANCE, GOVERNMEN TAL FUNDS
Past Te n Fiscal Years
(mo dified accrua l basis o f a ccount ing)
Fi scal Year
149
CITY OF BOZEMAN, MONTANA
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Re ve nues
Taxes 10,480,668 11,222,034 11,853,872 12,004,946 14,451,954 15,055,844 16,634,924 16,057,318 16,540,972 17,385,371
Sp ecial assessm ents 2,478,024 1,931,261 1,866,717 1,793,813 1,633,896 1,643,500 1,866,272 1,898,007 1,752,615 2,011,944
Licenses and permits 1,566,812 1,653,546 1,762,086 1,351,887 1,140,831 958,590 1,308,378 1,214,705 1,629,744 1,784,282
Intergovernmental 5,784,320 7,046,039 6,115,697 9,642,918 7,102,049 7,900,176 8,299,803 7,697,637 7,586,007 8,208,770
Charges for service 5,818,566 6,347,087 7,403,739 6,748,891 6,468,006 5,790,382 6,629,507 6,891,594 8,806,969 9,656,123
Fines and forfeitures 1,443,468 1,461,398 1,746,213 1,644,767 1,597,236 1,518,481 1,441,383 1,364,617 1,394,652 1,411,162
Interest on investments 545,805 848,909 1,068,802 1,360,914 671,859 352,378 300,516 281,239 239,778 329,086
lo an repayment 426,076 291,338 10,193 19,849 9,985 10,401 193,302 306,385 157,069 63,980
Ot her 2,421,201 3,412,410 1,940,156 1,859,313 2,766,671 2,256,071 1,556,790 155,484 394,677 287,089
Total revenues 30,964,940 34,214,022 33,767,475 36,427,298 35,842,487 35,485,823 38,230,875 35,866,986 38,502,483 41,137,807
Ex pe nditures
Ge neral government 5,006,986 5,309,637 5,577,810 6,153,838 5,946,355 5,690,488 5,939,771 6,266,566 7,276,839 6,138,575
Public safet y 8,535,646 9,494,622 10,160,291 10,778,917 11,056,742 11,709,170 12,137,616 12,513,270 13,822,691 14,637,886
Public service 2,363,585 2,276,802 3,060,672 3,020,855 2,976,711 2,702,510 3,002,021 2,738,066 2,805,612 3,498,770
Public welfare 4,320,299 5,099,873 4,315,086 4,819,758 5,161,997 4,916,828 6,435,916 6,184,073 6,216,387 6,678,347
Ot her - - - - - - - - 15,776 1,046,712
Capital out lay 6,417,671 18,374,651 11,397,365 12,205,040 9,380,742 4,248,758 3,299,017 3,881,388 2,782,435 8,053,456
Debt service
Principal 6,788,969 989,041 833,158 2,013,232 1,138,051 1,194,819 1,611,087 3,235,664 1,826,126 1,482,142
Int erest & Fiscal Fees 709,178 570,360 549,667 649,662 738,198 715,150 680,088 666,082 445,736 380,950
Total expendit ur es 34,142,334 42,135,050 35,894,049 39,641,302 36,398,796 31,177,723 33,105,516 35,485,109 35,191,602 41,916,838
Excess of revenues
over (under) expenditur es (3,177,394)(7,921,028) (2,126,574) (3,214,004)(556,309) 4,308,100 5,125,359 381,877 3,310,881 (779,031)
Other Financing Source s (Use s)
Proceeds from borrowing 4,804,467 1,376,869 - - - - - - - -
Transfers in 5,497,553 17,619,744 4,565,896 4,604,100 8,394,126 10,857,332 6,985,734 3,482,550 4,291,417 3,103,787
Transfers out (5,497,553)(15,835,644)(4,076,116) (4,604,100)(11,733,378)(11,033,925)(7,255,505)(3,821,010)(4,454,505)(3,113,787)
Issuance of debt 6,554,166 177,346 890,000 - 3,357,798 1,203,279 10,012,647
Premium on Bonds Issued 10,896 - - - - - -
(3,120,000)- -
Sa les of capit al asset s 1,604 1,483 490,637 249,688 86,326 766,922 10,555 59,204 2,775 243,092
Total other financing sources (uses)4,806,071 3,162,452 980,417 6,814,750 (3,075,580) 1,480,329 (259,216) (41,458) 1,042,966 10,245,739
Ex traordinary ite ms
Net change in fund balances 1,628,677$(4,758,576)$(1,146,157)$3,600,746$(3,631,889)$5,788,429$ 4,866,143$340,419$ 4,353,847$9,466,708$
27.0%6.6%5.6%9.7%6.9%7.1%7.7%12.3%7.0%5.5%
Fi scal Ye ar
Payments to Refunded Bond
Escrow Agent
Debt service as a percent age of
noncapital expendi tures
(modified accrual basis of accounting)
Past Ten Fiscal Ye ars
CHANGES IN FUND BALANC ES , GO VERNMEN TA L FU NDS
REVENUE CAPACITY SECTION
150
CITY OF BOZEMAN, MONTANA
Fiscal Tota l Tota l Assessed Taxable
Year Ta xa ble Direct Tota l Value ** as a
Ende d Re side ntial Comme rc ia l & Other Assessed Tax Ma rket Percenta ge of
June 30,Prope rty Industrial P rope rty Prope rty Value **Ra te Value *Tota l Ma rket Value
2005 29,671,600 20,134,300 3,179,100 52,985,000 171.99 1,571,989,123 3.371%
2006 32,515,280 22,063,940 3,483,780 58,063,000 168.26 1,758,938,187 3.301%
2007 35,419,440 24,034,620 3,794,940 63,249,000 163.42 1,959,659,877 3.228%
2008 38,629,360 26,212,780 4,138,860 68,981,000 154.18 2,192,163,035 3.147%
2009 41,539,680 28,187,640 4,450,680 74,178,000 171.16 2,407,420,224 3.081%
2010 43,842,400 29,750,200 4,697,400 78,290,000 170.19 2,655,766,251 2.948%
2011 45,023,440 30,551,620 4,823,940 80,399,000 168.75 2,827,548,097 2.843%
2012 45,954,720 31,183,560 4,923,720 82,062,000 166.75 2,994,740,226 2.740%
2013 46,606,560 31,625,880 4,993,560 83,226,000 166.75 3,176,282,865 2.620%
2014 47,956,720 32,542,060 5,138,220 85,637,000 173.08 3,386,295,608 2.529%
Sour ce: Based on in formatio n pr ovide d by Ga lla tin County and Monta na Department of Revenue
Note : P rope rty in Ga lla tin Count y is reassessed by the Sta te Department of Revenue every six ye ars.
* Sales price of prope rty is not public record in the State of Montana, so the Tota l Ma rket Value was used in stead
** Inc lu de s tax-exempt prope rty
ASSESSED VALUE O F TA XA BLE PR OPERTY
Past Te n Fis cal Ye ars
151
CITY OF BOZEMAN, MONTANA
Fiscal Net Taxable Value
Year Incrementa l Value (excludes T ax Taxa ble Value
Ended Ta xa ble Full for All Tax Increment Dis trict s for Ope n Spa ce
June 30,Ma rke t Value Taxa ble Value Increment Districts Increment al Values )Purpos es
2007 1,959,659,877 64,133,892 884,321 63,249,571 n/a *
2008 2,192,163,035 70,016,605 1,035,352 68,981,253 n/a *
2009 2,407,420,224 75,458,468 1,280,371 74,178,097 n/a *
2010 2,655,766,251 80,850,582 2,560,601 78,289,981 n/a *
2011 2,827,058,097 83,309,165 2,910,650 80,398,515 n/a *
2012 2,994,740,226 85,345,227 3,282,766 82,062,461 n/a *
2013 3,176,282,865 86,934,533 3,708,138 83,226,395 n/a *
2014 3,386,295,608 89,650,917 4,013,561 85,637,356 85,615,328
Sour ce: Based on in formatio n provide d by Ga lla tin County and Monta na Department of Revenue
Note : Property is assessed by the Sta te Department of Reve nue every six ye ars.
* No certified value availa ble, first certificatio n availa ble for FY2014
CITY TAXAB LE MARKET AND TAXAB LE VALUES
Past Eight Fis cal Ye ar s
152
CITY OF BOZEMAN, MONTANA
Fiscal
Year
Ended Base Incrementa l Total Base Incremental Total Ba se Incremental Total
June 30,Taxa ble Taxable Ta xa ble Taxa ble Taxa ble Taxa ble Taxable Taxa ble Taxa ble
2007 1,833,875 884,321 2,718,196 - - - - - -
2008 1,858,491 931,030 2,789,521 423,054 48,790 471,844 2,886,997 55,532 2,942,529
2009 1,858,491 1,115,768 2,974,259 423,054 71,287 494,341 2,886,997 93,316 2,980,313
2010 1,328,695 1,947,249 3,275,944 423,054 104,987 528,041 2,886,997 450,625 3,337,622
2011 1,328,695 2,060,807 3,389,502 423,054 135,162 558,216 2,886,997 664,127 3,551,124
2012 1,328,695 2,251,286 3,579,981 423,054 133,197 556,251 2,886,997 840,137 3,727,134
2013 1,328,695 2,396,293 3,724,988 423,054 150,217 573,271 2,886,997 1,084,216 3,971,213
2014 1,328,695 2,586,963 3,915,658 423,054 172,608 595,662 2,886,997 1,193,297 4,080,294
Fiscal
Year
Ended Base Incrementa l Total Base Incremental Total Ba se Incremental Total
June 30,Taxa ble Taxable Ta xa ble Taxa ble Taxa ble Taxa ble Taxable Taxa ble Taxa ble
2007 - - - - - - 1,833,875 884,321 2,718,196
2008 - - - - - - 5,168,542 1,035,352 6,203,894
2009 - - - - - - 5,168,542 1,280,371 6,448,913
2010 12,059 57,740 69,799 - - - 4,650,805 2,560,601 7,211,406
2011 12,059 50,554 62,613 - - - 4,650,805 2,910,650 7,561,455
2012 12,059 58,146 70,205 - - - 4,650,805 3,282,766 7,933,571
2013 12,059 77,412 89,471 - - - 4,650,805 3,708,138 8,358,943
2014 12,059 60,693 72,752 417 - 417 4,651,222 4,013,561 8,664,783
Sourc e: Based on in formatio n provide d by Ga lla tin County and Monta na Department of Revenue
Note: Prope rty is assessed by the Sta te Department of Revenue every six ye ars.
MA NDEVILLE FARM
INDUSTRIAL BOZEMAN TECHNOLOGY TO TA L
TAX INCREMENT DISTRICT TAXAB LE VALUA TION DETAIL
Past Eight Fiscal Ye ar s
BOZEMAN DOWNTOWN
NORTHEAST URBAN
RENEWAL DISTRICT NORTH 7TH CORRIDOR
153
CITY OF BOZEMAN, MONTANA
Fiscal Ta xa ble City Ta xa ble Value The District's
Year Ma rke t Value Ta xa ble Value of Inc rementa l (Excluding ALL tax Incrementa l Ta xa ble
Ende d of Prope rty in Prope rty in the Ta xa ble increment district Value as P ercentage of
June 30,the District District Value valuations)City's Taxable Value
2007 88,480,413 2,718,196 884,321 63,249,571 1.40%
2008 94,996,536 2,789,521 931,030 68,981,253 1.35%
2009 98,234,423 2,974,259 1,115,768 74,178,097 1.50%
2010 110,487,369 3,275,944 1,947,249 78,289,981 2.49%
2011 119,431,550 3,389,502 2,060,807 80,398,515 2.56%
2012 129,285,686 3,579,981 2,251,286 82,062,461 2.74%
2013 142,099,662 3,724,988 2,396,293 83,226,395 2.88%
2014 153,063,721 3,915,658 2,586,963 85,367,356 3.03%
Sour ce: Based on informatio n provide d by Ga lla tin County and Monta na Department of Revenue
Note : Prope rty is assessed by the State Department of Revenue every six ye ars.
Do wn town Bo ze ma n Improvement Dis tric t
DO WNTO WN B OZEMA N IMP ROVEMENT DISTRICT & COMPARISON TO CITY TAXAB LE VALUE
Past Eight Fiscal Ye ar s
154
CITY OF BOZEMAN, MONTANA
Taxing Entity 2008 2009 2010 2011 2012 2013 2014
Sta tewide School Equa lizatio n 40.00 40.00 40.00 40.00 40.00 40.00 40.00
Ga lla tin County Operatin g and Bond 79.50 79.78 85.19 89.94 88.69 87.40 88.38
Open Spa ce Bond 4.17 4.63 5.81 6.14 5.99 4.89 4.90
County-Wide School 97.05 100.26 94.02 95.74 95.61 96.47 101.28
Boze ma n High Sc hool District 65.34 71.40 69.05 75.34 73.48 71.81 73.16
Boze ma n Elementary School District 118.51 141.13 130.49 121.55 123.38 131.45 145.25
City of Boze ma n 154.18 171.16 170.19 168.75 166.75 166.75 173.08
TOTAL 558.75 608.36 594.75 597.46 593.90 598.77 626.05
Exempt fro m Tax Increment
Univ ersity Milla ge 6.00 6.00 6.00 6.00 6.00 6.00 6.00
Ga lla tin Conserva tion District 1.06 1.04 1.01 0.99 1.00 0.98 0.97
County-Wide Pla nning 2.43 2.58 2.50 2.40 2.40 2.39 2.39
Sourc e: Based on in formatio n provide d by Ga lla tin County and Montana Department of Revenue
Note: Prope rty is assessed by the State Department of Revenue every six ye ars.
PROPERTY TAX LEVIES IN THE DOWNTOWN B OZEM AN IMP ROVEMENT DISTRICT
Past S even Fiscal Ye ar s
Fiscal Year
155
CITY OF BOZEMAN, MONTANA
Fiscal Ge ne ral Tota l
Year Oblig atio n Direct Boze ma n
Ende d Basic Debt Tax Sc hool Ga lla tin Sta te of
June 30,Rate Se rvice Rate District County Monta na
2005 158.67 13.32 171.99 264.68 194.15 46.00
2006 155.89 12.37 168.26 265.55 196.74 46.00
2007 152.07 11.35 163.42 182.74 197.36 46.00
2008 142.98 11.20 154.18 183.85 205.40 46.00
2009 160.59 10.57 171.16 212.53 210.14 46.00
2010 160.18 10.01 170.19 199.54 210.25 46.00
2011 158.96 9.79 168.75 196.89 217.21 46.00
2012 157.19 9.56 166.75 196.86 215.77 46.00
2013 158.38 8.37 166.75 203.26 215.10 46.00
2014 164.83 8.25 173.08 218.41 221.00 46.00
Sour ce: Based on informatio n pr ovide d by Ga lla tin County and Departme nt of Reve nue
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Pas t Te n Fis cal Ye ars
(ra te per $1,000 of assessed value )
156
CITY OF BOZEMAN, MONTANA
Percentag e Percentag e
of Total Ci ty of Total Ci ty
Taxable Taxable Total Taxable
As sessed As sessed As sessed As sessed
Taxpaye r Val ue Rank Val ue Val ue Rank Val ue
No rthwes tern En ergy - Trans mi ssion & Distrib ution 3,668,602 1 4.28%3,131,556 1 5.91%
Qwest Co rp oration 1,040,298 2 1.21%991,162 2 1.87%
Br esnan Co mmu nications 813,246 3 0.95%
Ve rizon Wirele ss 555,252 4 0.65%
Ha rry Da um - Galla tin Mall 500,755 5 0.58%501,727 3 0.95%
St one Rid ge Part ners LLC 468,297 6 0.55%
J & D Fa mi ly Limit ed Part ners hip 350,638 7 0.41%
Br id ger Peaks Ho ld in g LLC 350,440 8 0.41%322,035 5 0.61%
Firs t Securit y Ba nk 349,000 9 0.41%221,399 10 0.42%
Wal-Mart St ores In c 338,929 10 0.40%403,388 4 0.76%
Co stco Wholes ale 279,596 6 0.53%
Bo ze ma n De acones s Fo undation 249,318 7 0.47%
Ho me De pot 224,814 8 0.42%
POB Galla tin LP 223,520 9 0.42%
Total 8,435,457$ 9.85%6,548,515$ 12.36%
To tal Cit y Taxable Assessed Va lu e 85,637,000$ 52,985,000$
So urce: Galla tin Co unty Treasure r
2014 2005
PRIN CIPAL PROPERTY TAX P AYER S
Cur rent Year and Nine Years Ag o
157
CITY OF BOZEMAN, MONTANA
Percentag e Percentag e
of Total City of Total Ci ty
Total Taxable Taxable Taxable
As sessed As sessed As sessed As sessed
Taxpaye r Busine ss Val ue Rank Val ue Val ue Rank Val ue
Firs t Se curit y Ba nk Ba nk 288,194 1 7.36%270,239 1 7.25%
Moose Po in t LP Co mme rcia l Pro perty De veloper 127,174 2 3.25%126,591 2 3.40%
F&H, LLC Pro pert y In ves tor/Developer 121,512 3 3.10%78,209 7 2.10%
777 Bu ild in g Multi Tennant Office Re tail Bu ild in g 113,093 4 2.89%115,894 3 3.11%
M & J Cowdrey LLC Pro pert y In ves tor/Developer 108,799 5 2.78%103,658 4 2.78%
Atlantic Fin ancial Gro up Lt d.Ba nk 88,769 6 2.27%89,124 5 2.39%
Do wn towner Gro up LLC Bu sines s Su pport Se rv ic es 83,096 7 2.12%78,892 6 2.12%
Americ an Ba nk o f M T Wells Farg o Ba nk Ba nk 82,490 8 2.11%77,438 8 2.08%
Ca lle nder St re et LLP De sign-Co nstruction Ov ersight 69,106 9 1.76%65,358 10 1.75%
Martel Plaza Lt d.Multi St ory Office Bu ild in g 65,881 10 1.68%65,392 9 1.76%
To tal 1,148,114$29.32%1,070,795$28.75%
To tal Do wn town BID Taxable As sessed Va lu e 3,915,658$3,724,988$
So urce: Galla tin Co unty Treas urer
PRINCIPAL PRO PERTY TAX P AYER S IN DOWNTOWN BOZEMA N IMP ROVEMENT DISTRICT
Cur rent Year and Prior Ye ar
20132014
158
CITY OF BOZEMAN, MONTANA
Fis cal
Ye ar Taxe s Le vied Colle ctio ns
Ende d fo r the Pe rc entage in Subs eque nt Pe rc entage
June 30,Fis cal Ye ar Amount of Le vy Ye ars Amount of Le vy
2005 9,112,890 8,825,662 96.85%285,746 9,111,407 99.98%
2006 9,769,893 9,490,225 97.14%203,827 9,694,052 99.22%
2007 10,336,467 10,227,386 98.94%106,611 10,333,998 99.98%
2008 10,635,491 10,324,653 97.08%239,140 10,563,793 99.33%
2009 12,696,306 12,493,145 98.40%149,497 12,642,642 99.58%
2010 13,324,175 12,415,922 93.18%887,241 13,303,163 99.84%
2011 13,567,611 13,001,537 95.83%492,141 13,493,678 99.46%
2012 13,683,839 13,108,003 95.79%238,749 13,346,752 97.54%
2013 13,878,293 13,633,347 98.24%61,554 13,694,901 98.68%
2014 14,821,724 14,482,502 97.71%- 14,482,502 97.71%
Source:Ga lla tin County
City Mana ge r's Fin al Adopte d Budge t
Colle cted within the
Fis cal Ye ar of the Le vy Total Colle ctions to Date
PROPERTY TAX LEVIES AND COLLECTIONS
Past Ten Fiscal Ye ar s
159
CITY OF BOZEMAN, MONTANA
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Type of Cus tome r
Re sidential 1,286,670 1,318,837 1,437,114 1,379,115 1,516,359 1,224,164 1,181,195 1,323,816 1,513,986 1,433,833
Go vernment 26,966 27,640 62,913 49,623 66,253 51,168 48,228 49,349 59,589 52,448
MSU 287,923 295,121 298,352 260,232 254,891 228,789 227,019 235,965 233,484 213,698
Co mme rc ia l 694,515 711,878 659,831 626,846 670,961 571,223 568,474 602,352 638,337 607,444
To tal 2,296,074 2,353,476 2,458,209 2,315,816 2,508,464 2,075,343 2,024,916 2,211,481 2,445,396 2,307,423
To tal dire ct rate 1,753.67$ 2,055.72$ 2,190.03$ 2,478.36$ 2,495.43$ 2,679.44$ 2,787.06$ 2,887.40$ 2,955.66$ 3,053.40$
per 1,000 HCF
So urce: Cit y of Bo ze ma n Finance Departmen t
WATER S OLD B Y TYPE OF CUSTOMER
Past Ten Fiscal Ye ar s
(i n hund reds of c ub ic fe et "HCF")
Fi scal Year
160
CITY OF BOZEMAN, MONTANA
Fis cal
Ye ar Monthly Rate per Monthly Rate per
Ende d Base 1,000 Base 1,000
June 30,Rate Gal lons Rate Gal lons
2005 10.42$ 16.83$ 8.59$ 14.20$
2006 11.46$ 18.53$ 9.88$ 16.30$
2007 12.60$ 19.74$ 10.87$ 18.00$
2008 12.60$ 19.74$ 11.17$ 18.50$
2009 12.60$ 19.74$ 12.13$ 20.10$
2010 13.00$ 20.37$ 13.37$ 22.15$
2011 13.42$ 21.02$ 14.73$ 24.41$
2012 14.02$ 21.96$ 15.61$ 25.87$
2013 14.65$ 22.95$ 16.55$ 27.42$
2014 14.65$ 22.95$ 17.56$ 29.10$
* For Reside ntial Cus tome rs, using 5/8 in ch meter size .
Sources:City of Boze ma n, Monta na Commission Resolu tion 3804
City of Boze ma n, Monta na Commission Resolu tion 3805
City of Boze ma n, Monta na Commission Resolu tion 3929
City of Boze ma n, Monta na Commission Resolu tion 3930
City of Boze ma n, Monta na Commission Resolu tion 4042
City of Boze ma n, Monta na Commission Resolu tion 4043
City of Boze ma n, Monta na Commission Resolu tion 4184
City of Boze ma n, Monta na Commission Resolu tion 4185
City of Boze ma n, Monta na Commission Resolu tion 4327
City of Boze ma n, Monta na Commission Resolu tion 4328
City of Boze ma n, Monta na Commission Resolu tion 4454
Wa te r Se we r
WA TER AND SEWER RATES
Past Ten Fis cal Years
DEBT CAPACITY
161
CITY OF BOZEMAN, MONTANA
Fi scal
Ye ar Ge neral Special Tax In crement Wate r Wastewate r Total Percentag e
En de d Obligati on Note s As sessment Fi nancing Re ve nue State of MT Primar y of Pers onal Per
June 30,Bonds Payable Bonds Bonds Bonds RLF Loans Go ve rnme nt In come Capita
2005 6,800,000 235,628 6,065,600 - 1,150,633 - 14,251,861 2.66%446.40$
2006 6,325,000 159,286 7,004,769 - 700,412 - 14,189,467 2.42%426.37$
2007 5,840,000 79,198 6,736,700 - 226,460 - 12,882,358 2.00%369.84$
2008 5,340,000 - 5,601,000 6,000,000 143,729 - 17,084,729 2.43%475.32$
2009 4,815,000 - 5,211,000 5,850,000 56,615 - 15,932,615 1.97%431.39$
2010 4,275,000 851,071 4,819,000 5,695,000 28,992 7,902,127 23,571,191 2.72%632.27$
2011 3,710,000 509,705 4,351,500 5,535,000 - 24,017,080 38,123,285 4.65%1,021.69$
2012 3,080,000 306,727 2,269,500 5,370,000 182,577 23,853,427 35,062,231 4.36%919.88$
2013 2,445,000 1,198,823 1,801,498 5,195,000 13,751,878 22,501,119 46,893,319 5.56%1,210.06$
2014 11,685,000 1,086,396 1,185,500 5,015,000 18,140,000 21,025,565 58,137,461 6.82%1,496.07$
So urces :Cit y Manager's Fin al A dopted Bu dget
Cit y of Bo ze ma n Finance Department
Busines s-Type Ac ti vi ti esGovernmental Ac ti vi ti es
RATIO OF OUTS TANDING DEBT BY TYPE
Past Ten Fis cal Ye ars
162
CITY OF BOZEMAN, MONTANA
Pe rc entage of
Fis cal Actual
Ye ar Ge ne ral Tax Increment Taxable
Ende d Obligatio n Financ ing Dis tric t Val ue of Pe r
June 30,Bonds Bonds To tal Property Capita
2005 6,800,000 - 12,865,600 24.3%402.98$
2006 6,325,000 - 13,329,769 23.0%400.53$
2007 5,840,000 - 12,576,700 19.9%361.07$
2008 5,340,000 6,000,000 11,340,000 16.4%315.49$
2009 4,815,000 5,850,000 10,665,000 14.4%288.77$
2010 4,275,000 5,695,000 9,970,000 12.7%267.44$
2011 3,710,000 5,535,000 9,245,000 11.5%247.76$
2012 3,080,000 5,370,000 8,450,000 10.3%221.69$
2013 2,445,000 5,195,000 7,640,000 9.2%197.15$
2014 11,685,000 5,015,000 16,700,000 19.5%429.75$
Sourc e:City Ma na ge r's Fin al Adopted Budge t
Ge ne ral B onde d De bt Outs tanding
RATIOS OF GENERAL B ONDED DEB T OUTSTANDING
Pas t Te n Fis cal Ye ars
163
CITY OF BOZEMAN, MONTANA
Debt Es tima ted
Ou ts tanding Es tima ted Sh are of
as o f Perc entage Ov erla pping
June 30, 2013 Applic able (1)De bt
Ov erla pping Bo nded In debtedness
Ga lla tin Co unty:
Va rio us issues o uts tanding 52,127,491$ 36%18,649,508$
Bo ze ma n Sch ool Dis tric t #7:
Va rio us issues o uts tanding 81,050,687 31%25,106,449$
Su btotal overla pping debt 43,755,957$
Cit y of Bo ze ma n, M ontana
Dire ct Debt 18,971,896 100%18,971,896$
To tal Dire ct & Ov erla pping Debt 62,727,853
No te: Ov erla pping governments are t hos e that coin cide, at le as t in p art, wit h the geographic boundarie s of the Cit y. Th is
schedule es tima tes t he portion of t he o uts tanding debt of t hose overla pping governments t hat is b orne by the residents and
bus in es ses of Bozeman. This proces s recognize s that, wh en consid erin g the Cit y's ab ilit y to is sue and repay lo ng-term debt,
the entire d ebt burden borne b y the re sidents a nd busin es ses should be t aken in to account. Ho we ver, this does not imply
that every taxpayer is a resident, and therefore responsible fo r repaying the d ebt, o f e ach o verla pping government.
(1) Th e perc entage of o verla pping debt applic able is estimated using taxable as sessed propert y valu es . A pplic able percentages
we re estimated by determining the p ortion of a nother g overnmental u nit's taxable assessed value that is wit hin the Cit y's
boundarie s and dividing it b y each entity's total t axable as sessed value.
So urces :
Cit y of Bozeman Fin an ce De partment
Ga lla tin Co unty Assessor's Office
Bo ze ma n Sch ool Dis tric t #7
DIRECT & OVERLAP PING GOVER NMEN TAL ACTIV ITIES DEBT
164
CITY OF BOZEMAN, MONTANA
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
De bt limit *26,559,967 29,591,000 34,755,653 54,804,000 60,185,000 66,375,000 70,688,000 74,875,000 76,450,000 84,657,000
Total n et debt applic able to limit (3,750,411) (6,568,569) (5,595,558) (5,423,128) (4,842,905) (4,295,240)$ (3,638,239)$ (3,386,727)$ (3,643,823)$ (12,771,396)$
Le gal d ebt ma rg in 22,809,556$23,022,431$29,160,095$49,380,872$55,342,095$62,079,760$67,049,761$71,488,273$72,806,177$71,885,604$
Total n et debt applic able to the limit
as a percentage of d ebt limit 14.1%22.2%16.1%9.9%8.0%6.5%5.1%4.5%4.8%15.1%
*2.5% of t otal marke t value of taxable p ro perty of $3.386 Billio n
So urce: Cit y Manager's Fin al A dopted Bu dget
Past Te n Fiscal Ye ar s
LEGA L DEBT MARGIN INFORMA TIO N
Fi scal Year
165
CITY OF BOZEMAN, MONTANA
Fi scal
Ye ar Ut ility Le ss:Special
En de d Service Operati ng As sessment
June 3 0,Char ges Ex pe ns es Principal In te res t Coverage Col lections Principal In teres t Coverage
-
2005 4,429,294 (2,647,507) (431,666) (65,963) 1,284,158 588,887 (2,951,200) (364,814) (2,727,127)
2006 5,401,069 (2,866,140) (450,220) (45,317) 2,039,392 1,472,058 (437,700) (297,876) 736,482
2007 6,124,533 (3,114,053) (473,952) (23,391) 2,513,137 1,428,084 (268,069) (309,119) 850,896
2008 6,163,883 (3,769,941) (82,731) (10,231) 2,300,981 1,178,846 (1,135,700) (278,393) (235,247)
2009 5,938,745 (3,770,800) (87,009) (5,978) 2,074,958 1,022,641 (390,000) (241,395) 391,246
2010 5,860,144 (3,950,566) (27,622) (2,440) 1,879,516 989,977 (392,000) (223,763) 374,214
2011 6,013,211 (3,869,048) (28,992) (1,070) 2,114,101 1,134,049 (467,500) (211,204) 455,345
2012 6,814,990 (4,063,529) (159,000) (6,405) 2,586,056 858,699 (2,082,000) (192,320) (1,415,621)
2013 7,806,922 (4,364,506) (502,000) (163,250) 2,777,166 820,090 (650,975) (103,198) 65,917
2014 7,871,386 (4,405,464) (751,000) (429,438) 2,285,484 1,054,483 (474,000) (73,760) 506,723
Fi scal
Ye ar Ut ility Le ss:
En de d Service Operati ng
June 3 0,Char ges Ex pe ns es Principal In te res t Coverage
2005 3,388,716 (2,608,972) - - 779,744
2006 3,839,157 (2,675,004) - - 1,164,153
2007 4,262,052 (2,792,274) - - 1,469,778
2008 4,739,702 (2,981,164) - - 1,758,538
2009 4,905,772 (4,843,180) - - 62,592
2010 5,389,070 (3,468,705) (166,300) (69,470) 1,684,594
2011 5,939,996 (4,183,596) (606,000) (494,298) 656,102
2012 6,385,404 (3,784,420) (883,000) (857,842) 860,141
2013 6,916,226 (3,947,821) (1,465,227) (847,778) 655,400
2014 7,204,486 (5,895,751) (1,084,854) (660,771) (436,891)
PLED GED-REVENUE COVERAGE
Past Ten Fis cal Ye ar s
Waste Wate r Re ve nue Bonds
De bt S ervice
Wate r Re ve nue Bonds Special As sessment B onds
De bt S ervice De bt S ervice
166
CITY OF BOZEMAN, MONTANA
Fi scal
Ye ar Re ve nue s Annual
En de d Avai labl e De bt S ervice
June 30,for Debt S ervice Payme nt Coverage
2008 585,839 416,223 1.41
2009 742,192 425,288 1.75
2010 1,147,962 424,288 2.71
2011 1,078,809 423,088 2.55
2012 773,724 421,688 1.83
2013 863,567 425,088 2.03
2014 877,751 423,088 2.07
DEBT S ER VICE REQUIR EM EN TS AND COVERAGE FO R DOWNTO WN TAX INCREMENT DISTRICT
Past S even Fiscal Ye ars
167
CITY OF BOZEMAN, MONTANA
Bond Original Ma turity Bonds Cas h As sessments De linqu ent
Is sue Amount Date Outs tanding Balance Outs tanding As sessments
SID 669 1,160,000$ 7/1/2020 315,000 75,491 303,208 1,556
SID 683 1,372,000 7/1/2024 420,000 77,485 581,465 6,426
SID 684 1,376,869 7/1/2025 140,000 29,458 639,176 2,065
SID 675, 676, 677, 678 3,001,000 7/1/2024 - 254,390 1,063,991 2,052
TOTAL 6,909,869$ 875,000$ 436,824$ 2,587,841$ 12,100$
As of J une 3 0, 2 014
SUMMA RY OF OUTS TANDING S ID 's
CURRENT FIS CAL YEA R
168
CITY OF BOZEMAN, MONTANA
Fi scal
Ye ar
En de d Re vo lving Fu nd Principal
June 3 0,Cas h B al anc e Amount of Bonds
2007 569,446$ 6,271,200$
2008 629,510 5,155,000
2009 647,235 4,785,000
2010 1,228,197 4,415,000
2011 3,160,685 3,970,000
2012 3,190,244 1,910,000
2013 2,443,769 1,468,529
2014 2,474,971 1,006,726
REVOLVING FUN D BALANCE AND B OND S EC UR ED THEREBY
Past Eight Fiscal Ye ar s
169
CITY OF BOZEMAN, MONTANA
Fi scal As sessment Total Annual
Ye ar Billing Col lections
2007 1,040,977$ 1,428,085
2008 1,074,991 1,178,846
2009 951,885 1,022,641
2010 915,398 989,977
2011 871,180 1,134,049
2012 750,418 858,699
2013 741,886 820,090
2014 676,613 1,054,484
SPEC IA L IMP ROVEMEN T DISTRICT AS SESSMEN T BILLING AND COLLECTIONS
Past Eight Fiscal Ye ars
DEMOGRAPHIC AND ECONOMIC INFORMATION
170
CITY OF BOZEMAN, MONTANA
Fi scal Es ti mate d Per Re side nts
Ye ar Annual %Capita Me di an wi th B ac he lors K-12
En de d Chang e in Pers onal Pers onal Ag e De gree or School Un empl oyment
June 3 0,Popu lati on Popu lati on In come In come (ye ars)Hi gher School ing En rollment Rate
2005 31,926 3.5%535,279,901$ 19,575$ 26.1 49.4%5,198 3.0%
2006 33,280 4.1%585,880,500$ 20,553$ 26.3 49.5%5,332 2.5%
2007 34,832 4.5%643,862,953$ 21,581$ 26.5 49.5%5,356 2.2%
2008 35,944 3.1%703,013,220$ 23,387$ 27.2 53.7%5,432 2.7%
2009 36,933 2.7%808,624,803$ 26,313$ 27.0 52.7%5,463 4.6%
2010 37,280 0.9%866,396,960$ 25,909$ 26.0 50.6%5,509 5.8%
2011 37,314 0.1%819,014,169$ 25,611$ 27.2 50.1%5,679 5.6%
2012 38,116 2.1%803,487,262$ 24,709$ 27.2 53.9%5,810 5.0%
2013 38,753 1.6%843,399,480$ 25,608$ 27.1 55.4%5,994 4.5%
2014 38,860 0.3%852,165,042$ 26,427$ 26.8 53.3%6,216 3.6%
So urces :
Bo ze ma n Area Ch amber o f Co mme rce
Bo ze ma n Pu blic Schools
U.S. Census Bureau
DEMO GR AP HIC AND ECONOMIC S TA TIS TIC S
Past Ten Fiscal Ye ar s
171
CITY OF BOZEMAN, MONTANA
Private Empl oye rs By Cl as s Em pl oye r Cl as s Size Private Empl oye rs By Cl as s Em pl oyer Cl as s Size
Bo ze ma n De aconess Ho spit al 9 Bo ze ma n De aconess Ho spit al 8
Ora cle Americ a 7 Ca pital Op portunities (Ho me Care Serv ic es )7
Wal M art 7 Murdoch's Ra nch & Ho me Su pply 7
Albert son's 6 Wal-M art 7
Brid ger Bo wl 6 Alberts ons 6
Co mmu nity Fo od Co -Op 6 Big Sky Pu blis hing (Lone Peak Lookout)6
Co stco 6 Co mmu nity Fo od Co op 6
Fe deral Premium A mmu nition 6 Co stco 6
Firs t Security Ba nk 6 Firs t Securit y Ba nk 6
Firs t Student 6 The Ho me Depot 6
Gr anTree In n 6 JTL Gro up 6
Ke nyon No ble Lu mb er & Hard wa re 6 JW T Re staurant Gr oup (Old Chicago Re staurant)6
Ko rman Marketing Gr oup 6 Kenyon No ble Lu mb er & Hard ware 6
Martel Construction 6 Mart el Cons truction 6
McDonald s 6 Montana Co nservation Co rp s 6
Murdoch's Ra nch & Home Su pply 6 Re ssler M otor Co 6
Re ssler M otor 6 Rig ht No w Technologies 6
To wn & Country Fo ods 6 Schlauch Bo ttcher Cons truction 6
To wn Pu mp Convenience St ores 6 Simk in s Ha llin Lumber 6
Zo ot En terpris es 6 Willia ms Plu mb in g and Heating 6
Public Em pl oye r Publ ic Em pl oyer
Em pl oye rs Cl as s Em pl oyers Cl as s
By Cl as s Size By Cl as s Size
Montana St ate Un iv ersity 9 Montana St ate Un iv ersity 9
Sc hool Dis tric t #7 9 Bo ze ma n School Dis tric t 8
Be lg rade School Dis tric t 8 Ga lla tin Sch ool Dis tric t #44 7
Cit y of Bozeman 7 1s t & 2nd Cla ss Po st Offices 5
De part me nt of A gric ulture 7 Department of Transportation 5
Ga lla tin Co unty 7 Ga lla tin Co unty 5
Class 6 - 100 to 249 Employees
Class 7 - 250 to 499 Employees
Class 8 - 500 to 999 Employees
Class 9 - 1,000+ Em ployees So urce: M ontana Department of Labor & Industry
June 2 014 June 2005
PRINCIPAL EMP LOYERS FOR GALLATIN COUNTY
Current Year and Ni ne Years Ag o
OPERATING INFORMATION
172
CITY OF BOZEMAN, MONTANA
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Ge neral Go vern me nt
Cit y Co mmission 4.00 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10 2.10
Cit y Manager *7.50 9.50 9.50 10.50 10.50 11.50 11.50 8.00 8.00 5.00
Municipal Co urt 6.00 6.00 6.00 7.00 7.00 7.50 8.50 8.50 8.50 8.50
Cit y Attorney 6.00 6.00 6.00 7.00 6.00 11.50 7.00 7.00 7.00 7.00
Admin is trative Serv ic es - - - - - - - - - 19.00
Finance *16.00 16.00 16.00 10.00 10.00 8.75 8.75 10.00 11.00 -
In fo rmation Technology *- - - 6.00 6.00 5.88 5.88 6.00 6.00 -
Co mmu nity De velo pment 12.70 12.70 12.70 15.20 13.70 12.20 12.20 8.75 9.00 8.00
Bu ild in g Maintenance 2.55 2.55 2.55 3.05 3.55 3.55 3.55 3.00 3.50 3.50
Total General Govern me nt 54.75 54.85 54.85 60.85 58.85 62.98 59.48 53.35 55.10 53.10
Pu blic Safe ty
Po lic e De partment 49.75 52.75 54.75 57.75 62.75 71.75 71.75 71.25 72.75 72.75
Fire Department 29.25 29.25 31.25 34.25 45.25 41.75 41.75 41.75 43.75 45.75
Bu ild in g In spection 15.05 15.05 15.55 16.55 13.55 9.55 10.55 10.55 10.55 12.55
Parking 2.75 2.75 3.75 3.75 4.75 4.75 4.75 4.50 4.50 5.50
Total Pu blic Safety 96.80 99.80 105.30 112.30 126.30 127.80 128.80 128.05 131.55 136.55
Pu blic Serv ic es
Pu blic Se rv ic es A dmin is tration / En gineerin g 7.15 7.15 7.15 8.15 8.15 8.15 8.15 10.00 10.00 12.00
Stre ets 13.62 13.62 15.62 15.62 17.62 17.62 17.62 17.62 17.62 18.62
Storm Water - - - - - - - - 1.00 1.00
Water Treatment Plant 9.27 9.27 9.27 9.27 9.27 9.27 9.27 9.77 9.77 11.27
Water Op erations 14.12 14.62 14.62 15.62 16.62 15.62 15.62 15.62 15.62 15.62
Wastewater Op erations 7.75 9.25 9.25 10.25 11.25 10.25 10.25 10.25 10.25 11.25
Wastewater Pla nt 14.87 14.87 14.87 14.87 15.87 15.87 15.87 15.87 16.37 17.47
So lid W as te Co lle ction/Recyclin g 11.74 11.74 12.74 15.74 15.74 15.74 15.74 15.74 15.74 15.74
So lid W as te Dis posal 7.66 7.66 7.66 2.00 - - - - - -
Ve hicle Main tenance 3.50 3.50 4.00 3.00 4.00 5.00 5.00 5.00 5.00 5.00
Total Pu blic Serv ic es 89.68 91.68 95.18 94.52 98.52 97.52 97.52 99.87 101.37 107.97
Pu blic W elfa re
Ce me tery (n umerous s hort terms )5.25 5.25 5.25 5.75 5.75 5.75 5.75 3.33 3.33 3.33
Parks (n umerous short terms )11.95 11.95 12.95 13.45 13.45 13.45 13.45 11.77 11.77 11.77
Fo re stry 3.60 3.60 4.60 4.60 4.60 4.60 4.60 4.60 4.60 4.60
Lib rary 19.66 19.66 19.66 20.66 21.66 21.66 21.66 21.66 21.56 23.11
Re creation (n umerous s hort terms )14.65 14.65 14.65 14.90 15.00 15.00 15.00 15.83 15.83 16.83
Co mmu nity Servic es 1.00 1.00 1.00 2.00 1.00 2.00 2.00 2.00 2.00 4.00
Total Pu blic W elfa re 56.11 56.11 58.11 61.36 61.46 62.46 62.46 59.19 59.09 63.64
Total of all Funds 297.34 302.44 313.44 329.03 345.13 350.76 348.26 340.46 347.11 361.26
So urce: Cit y Manager's Fin al A dopted Bu dget
* Admin is trative Serv ic es was created in fis cal y ear 2014 and consis ts o f Fin ance, In fo rmation Technology and Hu ma n Re sources
FULL-TIME EQUIVALEN T CIT Y GO VERNM ENT EM PLOYEES BY FUNCTION/PROGRA M
Pa st Ten Fiscal Years
Fiscal Year Ended June 30,
173
CITY OF BOZEMAN, MONTANA
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Finance
SI D St at ement s 10,443 11,086 11,086 14,919 15,000 15,816 16,000 16,000 16,200 16,700
Ut ilit y Bills 111,463 111,463 112,775 134,460 134,000 135,000 135,000 135,000 138,000 141,000
Account s Payable Checks Proces sed 11,216 13,211 11,387 13,301 12,218 12,076 12,122 11,962 12,519 11,989
Bus iness Licenses 3,362 3,577 3,711 3,825 3,836 3,789 3,986 3,886 3,831 3,861
Police
Number of Officers 42 47 45 51 52 55 56 60 63 63
Calls for Service 36,842 39,790 40,758 42,728 45,145 43,385 45,131 45,358 47,361 47,854
Arrests 2,106 2,299 2,524 2,581 2,853 2,338 2,325 2,152 2,096 3,464
Traffic Cit at io n Is sued **n/a n/a n/a n/a n/a 3,311 4,504 5,234 5,205 5,397
Traffic Stops **n/a n/a n/a n/a n/a 10,702 10,036 9,358 10,629 10,754
Traffic Crashes 1,521 1,666 1,780 1,519 1,302 1,194 1,486 1,264 1,320 1,750
Fire
Fires , Haz ardous Conditions & Rup ture/Explosions 280 230 242 230 248 248 278 278 309 340
Emerge ncy Medical Services /Res cue 1,270 1,373 1,454 1,658 1,441 1,441 1,483 1,483 1,941 2,051
Ser vice Calls 55 96 118 148 145 145 187 187 145 212
Building Ins pect ion
Commercial P ermit s:
N umber 766 860 1,015 972 1,047 961 1,535 1,420 1,305 1,238
Value (M illions )90.91 90.62 140.95 151.50 140.50 70.41 106.90 95.03 69.64 90.27
Resident ial Permit s:
N umber 2,493 2,067 1,775 1,710 1,571 1,543 3,613 2,421 2,338 2,650
Value (M illions )151.65 173.96 181.89 141.22 79.67 67.02 72.57 89.74 146.32 191.72
Wat er
New Service M ain T ap s 39 76 79 15 39 16 3 20 41 50
Meter Replacemen t/Repair 120 844 663 878 368 650 467 279 113 200
Wat er M ain Breaks /Rep airs 6 5 8 5 6 4 1 6 4 6
Was tewater
Main Line F lu shin g (in M iles )134 101 95 110 90 81 78.26 90 47 90
New Infrastruct ure T V (in M iles )6 10 19 4.8 1 1 1 1 2.6 12
New Service T ap s 41 29 37 22 15 5 4 4 17 25
So lid Was te Collect ion & Recy cling
Resident ial Account s 5,800 6,310 6,608 6,779 6,957 7,130 7,092 7,240 7,470 7,869
Commercial Customers 200 211 239 254 262 268 271 281 265 258
Recy cling Customers - - - 484 881 965 970 1,000 1,135 1,601
Annual T onnage Collect ed: Collect ions Program 9,000 11,171 11,953 11,879 10,397 10,657 10,920 11,248 10,695 10,960
Vehicle Maint enance
Wo rk Orders P rocessed 1,300 1,068 1,070 974 870 1,005 1,435 1,473 1,646 1,717
Gallons of Oil Dis posed 14,500 11,384 10,000 9,350 9,350 9,175 9,445 8,751 8,640 8,740
Parks
Park Reservations 330 340 340 360 221 280 319 320 350 400
So urces : Cit y Manager's Final Adop ted Budget
Cit y of Bozeman Finance Dep art ment
** No t us ed as a n operating in dicator u ntil 2010
OPERA TING INDICA TORS BY FUNCTION/PROGRA M
Pa st Ten Fiscal Years
Fiscal Year Ended J une 30,
174
CITY OF BOZEMAN, MONTANA
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Polic e
St ations 1 1 1 1 1 1 1 1 1 1
Pa trol Un it s (Cars)15 16 17 18 19 20 20 20 20 20
Pa trol Un it s (Motorcycles )4 4 4 4 4 4 4 4 4 4
Fire
St ations 2 2 2 2 3 3 3 3 3 3
Fire Tru cks 5 5 5 5 5 6 6 6 6 7
Streets
St re et & A lle y Mile age 188.694 196.773 229.905 234.736 242.650 246.951 254.565 254.957 255.769 259.133
La ne Mile s Painted 41.0 35.0 40.0 42.0 34.8 40.0 40.3 41.0 37.0 43.0
Nu mb er o f Signs In stalle d/Repaired 649 756 652 652 732 750 722 1120 669 700
Water
Water M ains (M ile s)218.87 230.15 247.23 250.16 253.73 256.32 257.51 261.33 264.61 267.28
Fire Hy drants 1,973 2,045 2,206 2,238 2,274 2,308 2,324 2,351 2,388 2,406
Wastewater
Sa nitary Se wers (M ile s)171.29 179.45 198.17 200.01 201.37 205.00 205.00 207.56 210.22 211.51
Nu mb er o f M anholes 3,397 3,571 3,888 3,946 3,988 4,034 4,080 4,084 4,154 4,185
Solid W aste
Nu mb er o f Colle ction Ve hicles 5 6 8 7 8 8 8 8 8 8
Nu mb er o f Roll-o ff Tru cks 1 1 2 3 4 4 4 4 4 4
Nu mb er o f Recyclin g Tru cks 0 0 0 0 1 1 1 1 1 2
Nu mb er o f Compos t Co lle ction Trucks 2 2 2 2 2 2 2 2 2 2
Parks
Fo rmal Turf A cres 250 258 258 265 120 120 125 125 125 125
Na tural Parkland Acres 118 110 110 115 205 205 210 220 220 220
Mile s of Trails 25 45 45 50 50 54 55 55 55 61
Sources : Cit y Manager's Fin al A dopted Bu dget
Cit y of Bozeman Fin ance De part me nt
Cit y of Bozeman GI S De part me nt
Cit y of Bozeman Po lic e Department
CA PITAL A SSET STA TISTICS BY FUNCTION/PROGRA M
Past Ten Fiscal Years
Fiscal Year Ended June 30,
PART IV
REPORTS OF INDEPENDENT PUBLIC ACCOUNTANTS AND
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
AS REQUIRED BY U.S. OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-133,
AUDITS OF STATE AND LOCAL GOVERNMENTS AND NON-PROFIT ORGANIZATIONS
175
CITY OF BOZEMAN, MONTANA
Gr ant Gr ant Federal
Gr ant Ba la nce Re venue Re venue Total Awards Ba la nce
FEDERAL GRANTOR CFDA Award
June 30,
2013 Re ceived Accrued Re venue Expended
June 30,
2014
U.S. De partment of Ju stic e
Ru ra l Do me stic Vio le nce Assistance Pro gram 16.589 185,477$ -$ 122,581$ 62,896$ 185,477$ 185,477$ -$
Passed through Ga lla tin Co unty:
Missouri Riv er Dru g Tas k Fo rce 16.738 94,442 - 84,513 9,929 94,442 94,442 -
Bu lle t-Pro of Vest Pa rt ners hip 16.607 4,374 - 1,717 2,657 4,374 4,374 -
Passed through MT Dept of Ju stic e, Bo ard of Crime Co ntrol
JA G: Crime Sc ene Co mp uter and So ft ware 16.738 573 - 573 - 573 573 -
JAG: Po lic e Rifle s 2013-DJ-BX-0772 16.738 15,513 - 15,513 - 15,513 15,513 -
U.S. De partment of Ho me la nd Securit y,
FEMA Federal Eme rg ency Management Agency
Passed through the Montana Depart me nt of M ilit ary Affairs
Be arcat EMW-2013-SS-00064 Po lic e HS Res ponse Ve hicle 97.067 249,537 - 249,537 - 249,537 249,537 -
U.S. De partment of Transportation
Passed through MT Dept. o f Transportation: Tra ffic Sa fety
Hig hway Traffic Safety
STEP-Bozeman Occupant Pro tection: 00-03-09-02 20.600 18,123 - 13,079 5,044 18,123 18,123 -
Passed through MT Dept. o f Transportation:
CT EP Commu nity Transportation En hancement Proje cts
STPE 16(90) - Bicycle / Pe destria n Paths 20.205 25,812 - 25,812 - 25,812 25,812 -
U.S. De partment of In terio r
Passed through the His toric al So ciety:
His toric Preserv ation 15.904 5,225 - 5,225 - 5,225 5,225 -
U.S. Enviro nmental Pro tection Agency
Passed through MT Depart me nt of Eviro nmental Qu alit y
Protecting Bo ze ma n's Waters:
St ormw ater Education and Ou treach 66.460 5,280 - 1,605 3,675 5,280 5,280 -
Total Federal Fin ancial A ssistance 604,356$ -$ 520,155$ 84,202$ 604,356$ 604,356$ -$
SCHEDULE OF EXPEN DITURES FEDERAL AWARDS
FO R THE YEA R ENDED J UN E 30, 2 014
176
CITY OF BOZEMAN, MONTANA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2014
NOTE 1.REPORTING ENTITY
The City of Bozeman’s reporting entity is defined in Note 1 of the City’s financial statements. Expenditures of federal awards received directly
from federal agencies as well as federal awards passed through other government agencies are included in the accompanying schedule.
NOTE 2.BASIS OF ACCOUNTING
The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in
Note 1 of the City’s financial statements.
NOTE 3.NON-CASH TRANSACTIONS
The City had no non-cash transactions in the accompanying schedule of expenditures of federal awards.
NOTE 4. SUBRECIPIENTS
The City has passed through Federal funds to subrecipients under the Rural Domestic Violence Assistance Program, as follows:
The Help Cente r (SACC) 40,701$
Haven 40,506
Guardian Ad Lite m 5,160
Ga lla tin County 36,350
122,717$
177
1 0 1 9 E M A I N S T
• S U I T E 2 0 1
• B O Z E M A N , M O N T A N A 5 9 7 1 5
T E L : 4 0 6 .5 5 6 .6 1 6 0
• F A X :
4 0 6 .5 8 6 .8 7 1 9
• W E B : w w w .a z w o r l d .c o m
ANDERSON ZURMUEHLEN & CO., P.C. • CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
MEMBER: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • MSI GLOBAL ALLIANCE INDEPENDENT MEMBER FIRM
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor, City Commissioners, and City Manager of the
City of Bozeman, Montana
We have audited, 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, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Bozeman, Montana (the City), as of and
for the year ended June 30, 2014, which collectively comprise the City’s basic financial statements and have issued our report thereon , dated December 22,
2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Bozeman’s internal control over financial reporting (internal
control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of City of Bozeman’s internal control. Accordingly, we do not express an opinion on
the effectiveness of City of Bozeman’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in
internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that
were not identified. However, as described in the accompanying schedule of findings and questioned costs we identified a deficiency in internal controls
that we consider to be a material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of
performing their assigned functions, to prevent (or detect and correct) misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented (or detected and corrected) on a timely basis. We consider the deficiency described in the accompanying schedule of findings and
questioned costs as 2014-01 to be a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Bozeman’s financial statements are free of material misstatem ent, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncomplia nce with which could have a direct and material effect
on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was no t an objective of our audit,
and accordingly, we do not express such an opinion. The results of our tests disclosed one instance of noncompliance or other matters that are required to
be reported under Government Auditing Standards. See Finding 2014-01.
178
ANDERSON ZURMUEHLEN & CO., P.C.
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
City of Bozeman Response to Findings
City of Bozeman’s response to the finding identified in our audit are described in the accompanying schedule. City of Bozeman’s response was not
subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance, and the results of that testing, and not to provide
an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Bozeman, Montana
December 22, 2014
179
1 0 1 9 E M A I N S T
• S U I T E 2 0 1
• B O Z E M A N , M O N T A N A 5 9 7 1 5
T E L : 4 0 6 .5 5 6 .6 1 6 0
• F A X :
4 0 6 .5 8 6 .8 7 1 9
• W E B : w w w .a z w o r l d .c o m
ANDERSON ZURMUEHLEN & CO., P.C. • CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
MEMBER: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • MSI GLOBAL ALLIANCE INDEPENDENT MEMBER FIRM
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY OMB CIRCULAR A -133
Honorable Mayor, City Commissioners, and City Manager of the
City of Bozeman, Montana
Report on Compliance on Major Federal Program
We have audited City of Bozeman’s compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance
Supplement that could have a direct and material effect on each of City of Bozeman’s major federal programs for the year ended June 30, 2014. City of
Bozeman’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned
costs
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance on each of City of Bozeman’s major federal programs based on our audit of the types of
compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-
133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements
(referred to above), which could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about City of Bozeman’s compliance with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However,our audit does not
provide a legal determination of City of Bozeman’s compliance.
Opinion on Each Major Federal Program
In our opinion, the City of Bozeman complied, in all material respects, with the types of compliance requirements referred to above that could have a
direct and material effect on each of its major federal programs for the year ended June 30, 2014.
Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with OMB Circular A-133
and which are described in the accompanying schedule of findings and questioned costs as Findings 2014-02 and 2014-03. Our opinion on each major
federal program is not modified with respect to these matters.
180
ANDERSON ZURMUEHLEN & CO., P.C.
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
The City of Bozeman’s response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and
questioned costs. The City of Bozeman’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we
express no opinion on the response.
Report on Internal Control Over Compliance
Management of City of Bozeman is responsible for establishing and maintaining effective internal control over compliance with the types of compliance
requirements referred to above. In planning and performing our audit of compliance, we considered City of Bozeman’s internal control over compliance
with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are
appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal
control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Bozeman’s internal control over compliance.
Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify
all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or
significant deficiencies may exist that were not identified. However, as discussed below, we identified a deficiency in internal control over compliance
that we consider to be a material weaknesses.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A significant deficiency in internal control over compliance is a deficiency,or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness
in internal control over compliance, yet important enough to merit attention by those charged with governance. A material weakness in internal control
over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that
material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2014-
03 to be a material weakness.
The City of Bozeman’s response to the internal control over compliance findings identified in our audit is described in the accompanying schedule of
findings and questioned costs. The City of Bozeman’s response was not subjected to the auditing procedures applied in the audit of compliance and,
accordingly, we express no opinion on the response.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the
results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
Bozeman, Montana
December 22, 2014
181
CITY OF BOZEMAN, MONTANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2014
Section I -Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued:Unmodified
Internal control over financial reporting:
Material weakness identified?Yes
Significant deficiencies identified not considered to be
material weaknesses?None reported
Noncompliance material to financial statements noted?Yes
Federal Awards
Internal control over major programs:
Material weakness identified?Yes
Significant deficiencies identified not considered to be
material weaknesses?None reported
Type of auditor’s report issued on compliance for
major programs:Unmodified
Any audit findings disclosed that are required to be
reported in accordance with Circular A-133, Section .510(a)?Yes
182
CITY OF BOZEMAN, MONTANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
Year Ended June 30, 2014
Identification of major programs:
16.589 Rural Domestic Violence Assistance Program
97.067 Police HS Response Vehicle
Dollar threshold used to distinguish between Type A and Type B programs: $300,000
Auditee qualified as low-risk auditee? No
183
CITY OF BOZEMAN, MONTANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
Year Ended June 30, 2014
Section II –Financial Statement Findings
2014-01 Budgetary Amendments
Criteria:Montana Code Annotated (MCA) 7-6-4006-4 requires that the governing body may amend the budget during the fiscal year by conducting public
hearings at regularly scheduled meetings. City of Bozeman Commission Resolution No. 4449 allows the City Manager budget amendment authority for
expenditures related to federal grants accepted and approved by the City Commission.
Condition: The City did not accept and approve this federal grant during fiscal year ended June 30, 2014. No budget amendment was approved by the City
Commission during the fiscal year ended June 30, 2014 for this expenditure. The budgetary approval occurred in October 2014,the time at which this
administrative oversight was discovered.
Context: The City was the recipient of a federal award for the purchase of a police emergency response vehicle under CFDA 97.067. Under this award,
the City expended $249,537. All other budgets were approved in accordance with the criteria set forth in MCA and by Resolution No. 4449.
Effect: The City did not follow established guidelines for approving budgetary appropriations in relation to this expenditure.
Cause: The City did not have adequate processes to ensure compliance with the requirements described above.
Recommendation: The City should establish procedures to ensure the entire population of budgetary appropriations are approved timely and in accordance
with established requirements.
City of Bozeman’s Response: We agree with the auditor’s comments and have already put a new Administrative Order in place to help ensure this doesn’t
happen again. Administrative Order No. 2014-01, adopted September 30, 2014 and entitled “Adoption of Grant Application and Reception Policy”,
requires that the appropriate department director provide written notification to the City Manager and City Commission within 30 days of all grant
applications exceeding $20,000. The Order also requires that all grant agreements exceeding $20,000 must be authorized by the City Commission. In
Audit Finding 2014-01, the Finance Department had actually processed and posted a Budget Amendment in a timely manner.However, this Amendment
was processed unknowingly without authorization, as it was incorrectly assumed by the Finance Department that this amendment fell under Section 4 of
the annual Budget Appropriation Commission Resolution No. 4449, adopted for fiscal year 2014 by the City Commission, which states: “Pursuant to
Sections 7-6-4006 and 7-6-4012, M.C.A., the City Commission hereby delegates appropriation and budget amendment authority to the City Manager for
the expenditures from………federal…....grants accepted and approved by the City Commission….…..”. Thus, the underlying problem was that the
federal grant in this case had not been accepted and approved by the City Commission. Administrative Order 2014-01 ensures that such a federal grant
will indeed be accepted and approved by the City Commission going forward. To help ensure that the entire population of budgetary appropriations is
approved timely and in accordance with established requirements, the Finance Department will apply a higher level of scrutiny to any and all proposed
Budget Amendments and will not make any assumptions whatsoever that established prerequisite criteria have been met. Steps taken will include, but are
not limited to:reviewing all Grant Routing Cover Sheets, which is a tool created to facilitate compliance with the new Grant Application and Reception
Policy; and, where applicable, confirming that large expenditures were scheduled in a Capital Improvement Plan adopted by the City Commission.
184
CITY OF BOZEMAN, MONTANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
Year Ended June 30, 2014
Section III –Federal Award Finding and Questioned Costs
2014-02 Federal Funding Accountability and Transparency Act Reporting –Rural Domestic Violence Assistance Program –CFDA 16.589
Criteria:The Federal Funding Accountability and Transparency Act (FFATA) requires that recipients of Federal awards report first-tier subaward data to
the FFATA Subaward Reporting System (FSRS), for subgrants above $25,000.
Condition: The City prepared, but did submit, the reports required under FFATA.
Context: The City was the recipient of a federal award for Rural Domestic Violence Assistance. To execute the operational objectives of this program, the
City entered into sub recipient agreements with five entities. Under these agreements, $359,286 is to be passed through as subgrants.
Effect: The City did not comply with the reporting requirements of FFATA.
Cause: The City’s internal control processes over FFATA reporting were adequately designed, but not properly executed or monitored.
Recommendation: The City should establish additional monitoring procedures over the completeness of FFATA reporting.
City of Bozeman’s Response: We agree with the auditor’s comments and the City will establish additional monitoring procedures over the completeness
of FFATA reporting. Rather than assume that the department receiving the grant will complete and submit the required FFATA reports, and rather than
assume that the department receiving the grant is correct in their interpretation of when a FFATA submission is required, the Finance Department will
instead oversee the FFATA reporting process.
185
CITY OF BOZEMAN, MONTANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
Year Ended June 30, 2014
2014-03 Time and Effort Documentation –Rural Domestic Violence Assistance Program –CFDA 16.589
Criteria:2 Code of Federal Regulations (CFR), Part 225 requires that when an employee works on multiple activities or cost objectives,a distribution of
their salaries or wages will be supported by personnel activity reports or equivalent documentation. This documentation is required when employees work
on more than one federal award or a Federal award and a non-Federal award, or two or more activities.
Condition: The City’s did not maintain appropriate personnel activity reports demonstrating cost allocation between Federal and non-Federal time and
effort. Appropriate documentation supporting cost allocations between Federal and non-Federal time and effort for subgrantees was not obtained.
Context: The City expended $185,477 under this award during the fiscal year ended June 30, 2014. Of these expenditures, $134,386 represents
expenditures for personnel costs, both direct and for subgrantees.
Effect: Actual time and effort expended on Federal and non-Federal programs cannot be reasonably assured.
Cause: The City’s internal control processes did not meet the criteria set forth at 2 CFR, Part 225.
Recommendation: The City should establish additional documentation practices to demonstrate time and effort for employees and surecipients working in
more than one activity or objective.
City of Bozeman’s Response: We agree with the auditor’s comments and the City will establish additional documentation practices to demonstrate time
and effort for employee and subrecipients working in more than one activity or objective. Corrective measures include establishing a common uniform
timesheet to be filled out by all grant employees and subrecipients which will be readily identifiable as being in compliance with the criteria set for in 2
CFR, Part 225, as opposed to the varied and often confusing timesheets which are currently being submitted by grant sub-recipients.
186
CITY OF BOZEMAN, MONTANA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
Year Ended June 30, 2014
Prior year findings: None