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HomeMy WebLinkAboutFY04 Comprehensive Annual Financial Report, City of Bozeman CI T Y O F B O ZE M A N , M O N T A N A CO M P R E H E N S I V E A N N U A L F I N A N C I A L R E P O R T AS O F J U N E 3 0 , 2 0 04 Pr e p a r e d b y t h e C i t y of B o ze m a n F i n a n c e D e p a r t m e n t CI T Y O F B O Z E M A N , M O N T A N A CO M P R E H E N S I V E A N N U A L F I N A N C I A L R E P O R T JU N E 3 0 , 2 0 0 4 TA B L E O F C O N T E N T S I. IN T R O D U C T O R Y S E C T I O N L e t t e r o f T r a n s m i t t a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 1 5 G o v e r n m e n t a l F i n a n c i a l O f f i c e r s ’ A s s o ci a t i o n C e r t i f i c a t e o f A c h i e v e m e n t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 O r g a n i z a t i o n a l C h a r t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7 C i t y E l e c t e d O f f i ci a l s a n d O f f i c e r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8 - 1 9 II . FI N A N C I A L S E C T I O N A U D I T O R ’ S R E P O R T O N B A SI C F I N A N C I A L S T A T E M E N T S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 - 2 1 A. MA N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 - 3 2 B. BA S I C F I N A N C I A L S T A T E M E N T S G o v e r n m e n t W i d e F i n a n c i a l S t a t e m e n t s S t a t e m e n t o f N e t A s s e t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 S t a t e m e n t o f A c t i v i t i e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 F u n d F i n a n c i a l S t a t e m e n t s G o v e r n m e n t a l F u n d F i n a n c i a l S t a t e m e n t s B a l a n c e S h e e t – G o v e r n m e n t a l F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 - 3 6 R e c o n c i l i a t i o n o f t h e B a l a n c e S h e e t t o t h e S t a t e m e n t o f N e t A s s e t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 7 S t a t e m e n t o f R e v e n u e s , E x p e n d i t u r e s , a n d C h a n g e s i n F u n d B a l a n c e s – G o v e r n m e n t a l F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....................................38 Re c o n c i l i a t i o n o f t h e S t a t e m e n t o f R e v e n u e s , E x p e n d i t u r e s , a n d C h a n g e s i n F u n d B a l a n c e s o f G o v e r n m e n t a l F u n d s t o th e S t a t e m e n t o f A c t i v i t i e s – G o v e r n m e n t a l F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 9 P r o p r i e t a r y F u n d F i n a n c i a l S t a t e m e n t s S t a t e m e n t o f N e t A s s e t s – P r o p r i e t a r y F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 0 - 4 1 S t a t e m e n t o f R e v e n u e s , E x p e n s e s , a n d C h an g e s i n F u n d N e t A s s e t s – P r o p r i e t a r y F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 S t a t e m e n t o f C a s h F l o w s – P r o p r i e t a r y F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 - 4 4 F i d u c i a r y F u n d F i n a n c i a l S t a t e m e n t s S t a t e m e n t o f F i d u c i a r y Ne t A s s e t s – F i du c i a r y F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 N o t e s t o F i n a n c i a l S t a t e m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6 - 7 9 CI T Y O F B O Z E M A N , M O N T A N A CO M P R E H E N S I V E A N N U A L F I N A N C I A L R E P O R T JU N E 3 0 , 2 0 0 4 TA B L E O F C O N T E N T S ( C O N T I N U E D ) C. RE Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N O T H E R T H A N M A N A G E M E N T D I S C U S S I O N A N D A N A L Y S I S S t a t e m e n t s o f R e v e n u e s , E x p e n d i t u r e s , a n d C h a n g e s i n F u n d B a la n c e s - B u d g e t t o A c t u a l – G e n e r a l a n d S p e c i a l R e v e n u e M a j o r F u n d s G e n e r a l F u n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 0 I m p a c t F e e s F u n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 C o m m u n i t y D e v e l o p m e n t L o a n F u n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2 N o t e s t o R e q u i r e d S u p p l e m e n t a r y I n f o r m a t i o n Ot h e r T h a n M a n a g e m e n t D i s c u s s i o n a n d A n a l y s i s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......................................83 D. SU P P L E M E N T A L I N F O R M A T I O N C o m b i n i n g a n d I n d i v i d u a l F u n d S t a t e m e n t s a n d S c h e d u l e s C o m b i n i n g B a l a n c e S h e e t – N o n - M a j o r G o v e r n m e n t a l F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 4 - 8 8 C o m b i n i n g S t a t e m e n t o f R e v e n u e , E x p e n d i t u r e s , a n d C h an g e s i n F u n d B a l a n c e – N o n m a j o r G o v e r n m e n t a l F u n d s . . . . . . . . . . . . . . . . . . . . . . .....................89-94 B u d g e t - t o - A c t u a l S t a t e m e n t s – O t h e r M a j o r F u n d s S t a t e m e n t s o f R e v e n u e s , E x p e n d i t u r e s , a n d C h a n g e s i n F u n d B a l a n c e s - B u d g e t t o A c t u a l - O t h e r M a j o r F u n d s S I D S i n k i n g F u n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 5 - 9 6 B u d g e t - t o - A c t u a l S t a t e m e n t s - N o n m a j o r F u n d s S t a t e m e n t s o f R e v e n u e s , E x p e n d i t u r e s , a n d C h a n g e s i n F u n d B a l a n c e s - B u d g e t t o A c t u a l – No n m a j o r G o v e r n m e n t a l F u n d s N o n - M a j o r G o v e r n m e n t a l F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 7 - 1 1 0 I n t e r n a l S e r v i c e F u n d s S t a t e m e n t s C o m b i n i n g S t a t e m e n t s o f N e t A s s e t s – I n t e r n a l S e r v i c e F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 C o m b i n i n g S t a t e m e n t s o f R e v e n u e s , E x p e n s e s , a n d Ch a n g e s i n F u n d N e t A s s e t s – I n t e r n a l S e r v i c e F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . ..................................112 C o m b i n i n g S t a t e m e n t s o f C a s h F l o w s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 - 1 1 4 A g e n c y F u n d s C o m b i n i n g S t a t e m e n t o f F i d u c i a r y N e t A s s e t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 5 C o m b i n i n g S c h e d u l e o f C h a n g e s i n As s e t s a n d L i a b i l i t i e s – A g e n c y F u n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 6 - 1 1 7 CI T Y O F B O Z E M A N , M O N T A N A CO M P R E H E N S I V E A N N U A L F I N A N C I A L R E P O R T JU N E 3 0 , 2 0 0 4 TA B L E O F C O N T E N T S ( C O N T I N U E D ) II I . ST A T I S T I C A L S E C T I O N Ge n e r a l G o v e r n m e n t a l E x p e n d i t u r e s b y F u n c t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 8 Ge n e r a l G o v e r n m e n t a l R e v e n u e s b y S o u r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 Pr o p e r t y T a x L e v i e s a n d C o l l e c t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 0 As s e s s e d a n d E s t i m a t e d M a r k e t V a l u e o f T a x a b l e P r o p e r t y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 1 Pr o p e r t y T a x R a t e s a n d L e v i e s - D i r ec t a n d O v e r l a p p i n g G o v e r n m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 2 Sp e c i a l I m p r o v e m e n t D i s t r i c t B i l l i n g s a n d C o l l e c t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3 Ra t i o o f C o m p a r a t i v e B o n d e d D e b t t o A s s e ss e d V a l u e a n d B o n d e d D e b t p e r C a p i t a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 4 Co m p u t a t i o n o f L e g a l D e b t M a r g i n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 5 Co m p u t a t i o n o f D i r e c t a n d O v e r l a p p i n g D e b t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 6 Ra t i o o f A n n u a l D e b t S e r v i c e E x p e n d i t u re s f o r G e n e r a l O b l i g a t i o n B o n d e d D e b t t o T o t a l G e n e r a l G o v e r n m e n t a l E x p e n d i t u r e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 7 Re v e n u e B o n d C o v e r a g e – W a te r S y s t e m R e v e n u e B o n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 8 Av e r a g e A n n u a l W a t e r a n d S e w e r B i l l s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 9 Nu m b e r o f U t i l i t y A c c o u n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 0 To p T e n T a x p a y e r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 1 De m o g r a p h i c S t a t i s t i c s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 2 Pr o p e r t y V a l u e , C o n s t r u c ti o n a n d B a n k D e p o s i t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 3 In s u r a n c e i n F o r c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 4 CI T Y O F B O Z E M A N , M O N T A N A CO M P R E H E N S I V E A N N U A L F I N A N C I A L R E P O R T JU N E 3 0 , 2 0 0 4 TA B L E O F C O N T E N T S ( C O N T I N U E D ) IV . RE P O R T S O F I N D E P E N D E N T P U B L I C A C C O U N T A N T S A N D S C H E D U LE O F E X P E N D I T U R E S O F F E D E R A L A W A R D S A S R E Q U I R E D B Y OM B C I R C U L A R A - 1 3 3 S c h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 5 N o t e s t o S c h e d u l e o f E x p e nd i t u r e s o f F e d e r a l A w a r d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 6 I n d e p e n d e n t A u d i t o r ’ s R e p o r t o n C o m p l i a n c e a n d on I n t e r n a l C o n t r o l O v e r F i n a n c i a l R e p o r t i n g B a s e d O n a n A u d i t o f F i n a n c i a l S t at e m e n t s P e r f o r m e d I n A c c o r d a n c e W i t h Go v e r n m e n t A u d i t i n g S t a n d a r d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137 I n d e p e n d e n t A u d i t o r ’ s R e p o r t o n C o m p l i a n c e w i t h R e q u i r e m e n t s A p p l i c a b l e T o E a c h M a j o r P r o g r a m a n d I n t e r n a l C o n t ro l O v e r C o m p l i a n c e I n A c c o r d a n c e W i t h O M B C i r c u l a r A - 1 3 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 8 - 1 3 9 S c h e d u l e o f F i n d i n g s a n d Q u e s t i o n e d C o s t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 0 C u r r e n t S t a t u s o f P r i o r Y e a r R e c o mm e n d a t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 1 PA R T I IN T R O D U C T O R Y S E C T I O N 1 De c e m be r 1 5 , 2 0 0 4 To t h e C i t i z e n s o f t h e C i t y o f B o z e m an , M o n t a n a Th e C o m prehe n s i v e A n n u a l F i n a n c i a l R e p o r t o f t h e CI T Y O F B O ZE MA N , M O N T A N A f o r t h e f i s c a l y e a r e n d e d J u n e 3 0 , 2 0 0 4 i s h e r e b y su b m it t e d . R e s p o n s i b i l i t y f o r b o t h t h e a c c u r a c y o f t h e d a t a , a nd t h e c o m p l e t e n ess a n d f a i r n e s s o f t h e p r e s e n t a t i o n , i n c l u d ing all disclosures, rests wi t h t h e C i t y . T o t h e b e s t o f o u r k n o w l e d g e a n d b e l i e f , t h e e n cl o s e d d a t a a r e a c c u r a t e i n a l l m ate r i a l r e s pec t s a n d a r e r e p o r t ed in a manner de s i g n e d t o p r e s e n t f a i r l y t h e f i n a n c i a l p o s it i o n a n d r e s u l t s o f o p e r a t i o n s o f t h e v a r i o u s f u n d s o f th e C i t y . A l l d i s c l o s u r e s necessary to enable the re a d e r t o g a i n a n u n d e r s t a n d i n g o f t h e C i t y 's f i n a n c i a l a c t i v i t i e s h a v e b e e n i n c l u d e d . Th e c o m pre he n s i v e a n n u a l f i n a n c i a l r e p o r t i s p r e s e n t e d i n f o u r s e c t i o n s : i n t r o d u c t o r y , f i n a n c i a l , st a t i s t i c a l , a n d s i n g l e a u d i t. The introductory se c t i o n i n c lud e s t h i s t r an s m it t a l l e tt e r , t h e g o v er n m en t ' s o r g a n i z a ti o n a l c h a r t a n d a l i s t o f p r i n c i p a l o f fici a l s . T h e f inancial section includes mana g e ment ’s d i s c u s s i o n a n d a n a l y s i s , t h e b a s i c f i n a n c i a l s t a t em en t s a n d t h e r e q u i r e d s u p p l e m ent a r y i n f o r mat i o n a n d o t h e r s u p p l emental in f o r m at i o n , a s w e l l a s t h e a u d i t o r ’ s r e p o r t s o n t h e b a s i c f i n a n c i a l s t a t e m en t s . T h e f i na n c i a l s e c t i o n b e g i n s w i t h M a n a g e m ent’s Discussion and An a l y s i s , w h i c h p r o v i d e s u s e r s o f t h e b a s i c fi n a n c i a l s t a t e m en t s w i t h a n a r r a t i v e i n t r od u c t i o n , o v e r v i e w , a n d an a l y s i s o f t h o s e statements. The st a t i s t i c a l s e c t i o n i n cl u d es s e le c t e d f i n a n c i a l a n d d e m og r a p h i c i n f o r m at i o n , g e ne r a l l y p r e s e n te d o n a m ult i - y e a r b a s is. The City is required to un d e r g o a n a n n u a l s i n g l e a u d i t i n c on f o r mit y w i t h t h e p r o v i s i o n s o f t h e S i n g l e A u di t A c t o f 1 9 8 4 a n d t h e O f fi c e o f M a n a g e m ent and Budget Ci r c u l a r A - 1 3 3 , Au d i t s o f S t a t e s , L o c a l G o v e r n m ent s , a n d N o n - P r o f i t O r g a n i z a t i o n s . I n f ormat i o n r e l a te d t o t h e s ingle audit, including the Sc h e d u l e o f E x p e n d i t u r e s o f F e d e r a l A w a r d s a n d t h e Au d i t o r ’ s R e p o r t s o n B a s i c F i n a n c i a l S t a t em e n t s a n d S u p p l e m e n t a r y S c h e d u l e o f Ex p e n d i t u r e s o f F e d e r a l A w a r d s , C o m p l i a n c e a n d I n t e r n a l C o n t r o l o v e r F i n a n c i a l R e p o r t i n g B a s e d on a n A u d i t o f F i n a n c i a l S t a t e m e nts Pe r f o r m e d i n A c c o r d a n ce w i t h G o v e r n m e n t A u di t i n g S t a n d ar d s , a n d C o mp l i a n c e w i t h R e q u i r eme n t s A p p l i c a b l e t o E a ch Major Program and In t e r n a l C o n t r o l o v e r C o m p l i a n c e i n A c c o r d a n c e w i t h O M B C i r c u l a r A - 1 3 3 , a r e i n c l u d e d i n t h e s i n g l e a u di t s e c t i o n o f this report. Th i s r e p o r t i n c l u d e s a l l f un d s o f t h e g o v e r n m ent . T h e g o v e r n m ent pr o v i d e s a f u l l r a n g e o f s e r v i c e s . T h e s e s e r v i c e s i n c l u d e p o lice and fire pr o t e c ti o n ; s ani t a ti o n s ervic e s ; t h e c o ns t r uc ti o n a nd m ain t e n a nc e o f s t r e e ts a n d i n f ras t r u c t u r e; r e c r ea t i o n al a c ti v i t i e s ; c u ltural events; planning and zo n i n g ; a n d g e n e r a l a d m i n i s t r a t i v e s erv i c e s . T h e P a r k i n g C o m m i s s i o n , L i b r a r y B o a r d , C it y P l a n n i n g B o a r d a n d t h e S e n i o r Citizens’ Advisory Bo a r d h a v e b e e n i n c l u d e d i n t h e C i t y ' s r e po r t i n g e n t i t y . H o w e v e r , t h e L i b r a r y F o u n d a ti o n , F r i e n d s o f t h e L i b r a r y , a n d S e n i o r S ocial Center Board ha v e n o t m et t h e e s t a b li s he d c r i t e r i a f o r i n c l u s i o n i n t h e re p o r t i n g e n t i t y , a n d a c c o r d in gl y a r e e x c l u d e d f r o m t h i s r e p o rt . 2 EC O N O M I C C O N D I T I O N A N D O U T L O O K Th e B u r e a u o f B u s i n e s s a n d E c o n o m i c R e s e a r c h (B B E R ) i s t h e r e s e a r c h a n d p u b l i c s e r v i c e br a n c h o f t h e U n i v e r s i t y o f M o n t a n a ’ s S c hool of Bu s i n e s s A d m ini s t r a t i o n . T h e B u r e a u i s r e gu l a r l y i n v o l v e d i n a w i d e v a r i e t y o f a c t i v it i e s , i n c l u d i n g e c o n o m ic a n a l y s i s a n d f o r ecasting. Excerpts fr o m t h e B u r e a u ’ s f o r e c a s t s c o n t a i n e d i n t h e S p r i n g 2 0 0 4 i s s u e o f t h e M o n t a n a B u s i n e s s Q u a r t e r l y re l a t i n g t o t h e U n i t e d S t a t e s , Montana in ge n e r a l , a s w e l l a s G a l l a t i n C o u n t y an d B o z e m an, a r e r e s t a t e d b e l o w . Mo n t a n a F o r e c a s t Mo n t a n a ’ s o v e r a l l e c o n o m ic p e r f o r m anc e f r o m 2 0 0 1 t o 2 0 0 3 w a s w e l l ab o v e t h e n a t i o n a l a v e r a g e . T h e i m p a c t s o f t h e 2 0 0 1 r e c e s s i o n and the af te r m at h o f t h e S e p t e m b e r 1 1 t e r roris t a tta c k s w e r e s i m ply l e s s se v e r e h e r e t h a n i n t h e n a t i o n ov e r a l l . T h e r e w a s s o m e o v e r a l l slowing in the Mo n t a n a e c o n o m y d u r i n g 2 0 0 2 a n d 2 0 0 3 , b u t n o w h e re n e a r t h a t o f t h e U . S . e c o n o m y . Se v e r a l m ea s u r e s s u p p o r t t h e m il d i m p a c t o n M o n t a n a . M o n t h l y e m pl oy m ent g r o w t h h e l d b e t w e e n 1 p e r c e n t a n d 2 p e r c e n t i n M o n t a n a , while th e r e w a s n e g a t i v e j o b g r o w t h n a t i o n w i d e f o l l o w i n g S e p t e m be r 1 1 , 20 0 1 . T h e t e r r o r i s t a t t a c k s t u r n e d a s h o r t , m il d r e c e s s i o n i n to a longer, deeper de c l i n e ( F i g u r e 1 ) . Th e s a m e p a t t e r n s a r e a l s o p r e s e n t i n t h e Co n s u m e r I n d e x S e n t i m en t d a t a , w h i c h a r e i n de p e n d e n t o f t h e l a b o r m ark e t . M o n t a n a a n d U.S. indexes we r e a b o u t e q u a l i n 2 0 0 0 . B u t t h e M o n t a n a in d e x d i s p l a y e d f e w o f t h e t r e n d s o f t h e n a t i o n a l i n d e x o v e r t h e f o l l o w i n g t h r e e y e a rs. U.S. consumer se n t i m en t d e c l i n e d i n A p r i l 2 0 0 1 , d u r i n g t h e c o r p or a t e s c a n d als o f 2 0 0 2 , a nd b e c a u s e o f p r e - I r a q w a r j i t t e r s i n e a r l y 2 0 0 3 . T h e Montana Index did no t f o l l o w t h e s e t r e n d s ( F i g u r e 2 ) . 3 Mo n t a n a ’ s n o n f a r m l a b o r i n c o m e a l s o p o s t e d on l y s l i g h t s l o w d o w n s i n 2 0 0 1 a n d 2 0 0 3 . N o n f ar m l a b o r i n c o m e i s t h e s h o r t - t e r m proxy for Gross St a t e P r o d u c t . Fi n a l l y , h o u s e p r i c e s i n s e v e r a l M o n tan a c o u n ti e s i n c r e ase d f ast e r t h a n t h e U . S . a v e r a g e in r e c e n t y e a r s – u s u a l l y t h e i n d i c a t i o n o f a m o r e r o b u s t e c o n o m y. T h e i n d e x o f si n g l e - f a m il y h o m es i n c r e a s e d 6 . 1 p e r c e n t p e r y e a r i n M o n t an a b e t w e e n 2 0 0 1 a n d 20 0 3 . T h e n a t i o n w i d e f i g u r e w a s 6 . 5 p e r c e n t ( T a b l e 2 ) . Mo n t a n a ’ s h o u s i n g p r i c e b u b b l e c o u l d p o p , b u t t h e ch a n c e i s l o w e r h e r e t h a n i n r e d - h o t Fr e s n o , C . A . , w h e r e h o m e p r i c e s g r e w b y 1 6 p e r c e n t ; P r o v i d e n c e , R . I . , w i t h 1 2 p e r c e n t in c r e a s e s ; o r i n M i a m i, F . L . , w h e r e p r i c e s g r e w b y 1 1 . 1 p e r c e n t . Th e d a t a p r e t t y c o n c l u s i v e l y s h o w t h a t M o n t a n a a v o i d e d t h e 2 0 0 1 r e c e s s i o n a n d t h e af t e r m at h o f S e p t e m be r 1 1 . W e a l s o a v o i d e d t h e 1 9 9 1 r e c e s s i o n . D o es t h at m ea n M o n t a n a i s r e c e s s i o n - p roo f ? T h e s h o r t a n s w e r i s no. Mo n t a n a w a s l u c k y i n 1 9 9 1 a n d 2 0 0 1 . T h e U . S . in d u s t r i e s m o s t a f f e c t e d b y t h e s e r e c e s s i o n s w e r e r e l a t i v e l y u n i mportant in the Treasure State. Fu t u r e r e c e s si o n s m ay h i t h a r d , b u t o n l y i f th e y a r e c o n c e n tr a t e d i n i n du s t r i e s i m po r t an t t o M on t a n a . M o nt a n a a v o ided the nation’s overall ec o n o m ic w o e s b e c a u se i t s e c o n o m ic b a s e i s c o n c e n t r a t e d i n a g ri c u lt u r e , m ini n g , w o o d p r o d uc t s a n d o t h e r m anufacturing, transportation, no n r e s i d e n t t r a v e l , a n d t h e f e d e r a l g o v e r n m ent . T h e i n d u s t r i e s h i t h a r d e s t b y t h e n a t i o n a l r e ce s s i o n i n c l u d e d d o t - c o m s, high-tech manufacturing, co m m u n i c a t i o n s , a n d f i n a n c i a l s e r v i c e s . Of c o u r s e , M o n t a n a ’ s b a s i c i n d u s t r i e s d o n ’ t ex p l a i n e v e r y t h i n g . F a c t o r s s u c h a s i n c r ea s e d e d u c a t i o n , i n c r e a s e d c a p i t a l , - i n c l uding computers and in f r a s t r u c t u r e a l s o c a u s e e c o n o m ic g r o w t h . S t i l l , t h e b a s i c i n d u s t r i e s e x p l a i n m ost of t h e b i g t r e n d s i n M o n t a n a ’ s e c o n o m y during the last 30 ye a r s . I t i s i m p o r t a n t t o r e m ember t h a t t h e r e a r e n o t j u s t t w o o r t h re e b a s i c i n d u s t r i e s . W e h a ve l i s t e d e i g h t d i f f e r e n t c a t e gories of basic industries, an d t h e r e a r e a c t u all y m o r e t h a n t h a t ( F i gu r e 4 ) . C a t e g o r i e s s u c h a s manu f a c t u r i n g i n c l u d e a v a r i e t y of a c ti v it i e s . S o i t i s a simplification to say Mo n t a n a d e p e n d s o n o n l y o n e o r t w o b a s i c i n d u s t r i e s . 4 Ec o n o m ic t r e n d s i n M o n t a n a a r e u s u a l l y t h e r e s u lt o f a v a r i e t y o f f a c t o r s , n o t j u s t o n e . Fo r e x a m pl e , b e t w e e n 1 9 95 a n d 2 0 0 0 , b a s i c l a b o r i n c o m e i n c r e a s e d b y $ 1 49 m il l i o n (T a b l e 1 ) . T h i s i n c r e a s e w a s t h e n e t e f f e c t o f g r o w t h i n f o u r i n d u s t r i e s , d e c l i n e s i n t w o in d u s t r i e s , a n d s t a b i l i t y i n y e t a n o t h e r . Lo o k i n g c l o s e r , w e c a n s ee t h a t i n c r e a s e s i n th r e e o f t h e i n d u s t r i e s w e r e a b o u t e q ual: n o n re s i d ent t r a v e l , $ 69 m il l i o n ; manu f a c t u r i n g , $ 7 8 m il l i o n ; a n d th e f e d e r a l g o v e r n m ent , $ 8 6 m il l i o n . We k n o w t h a t t h e 1 9 9 5 t o 2 0 0 0 d a t a a r e c e rt a i n l y o u t o f d a t e . B u t t h e f e d e r a l go v e r n m ent h a s m ade m ajo r c h a n g e s i n t h e s t a t i s t i c a l r e p o r t i ng s y s t e m , a n d m o r e cu r r e n t c o m p a r i s o n s r i s k p r o b l e m s a s s o c i a t ed w i t h c o m par i n g a p p l e s t o o r a n g e s . So , w h a t i s t h e f o r e c a s t f or M o n t a n a ’ s e c o n o m y? Mo n t a n a ’ s e c o n o m ic g r o w t h i s e x p e c t e d t o ac c e l e r a t e s l i g h t l y i n 2 0 0 4 b e c a u s e o f : co n t i n u e d r e c o v e r y i n t h e U. S . a n d w o r l d e c o n o m ies , r e o p e n i n g t h e m ine i n B u t t e , a n d co n t i n u e d l a b o r p r o d u c t i v i t y g r o w t h . Wit h s t r o n g p r i c e s i n m a n y o f t h e c o m m od i t y m ark e t s , w e d o n ’ t ex p e c t a s i g n i f i c a n t cr i s i s a m o n g o u r n a t u r a l r e s o u r c e i n d u s t r i e s . We have re v i s e d u p w a r d t h e o v e r a l l f o r e c a s t s f r o m l a s t y ea r b y a b o u t h a l f a p erc e n t , a n d b eli e v e t h a t s o m e o f t h e p rodu c t i v it y i n c r e a s e s experiences in the la t e 1 9 9 0 ’ s n o w a p p e a r t o b e p e r m an e n t . 5 Th e r e i s , h o w e v e r , l i k e l y t o b e s o m e b a d e c o n o m ic n e w s i n t h e pr e s s . D u r i n g t h e p a s t f e w y e a r s , M o n t a n a h a s f a r e d w ell in comparisons of state ec o n o m ic p e r f o r m anc e . T h a t w a s n ’ t b e c a u s e o u r e c o n o m y i m p r o v e d, t h o u g h , b u t b e c a u s e t h e r e s t o f t h e c o u n t y w a s s u f f e r i n g s o m ightily. Now th e r e s t o f t h e s t a t e s a r e b e g i n n i n g t o re c o v e r a n d M o n t a n a ’ s r a n k i n g is l i k e l y t o d r i f t d o w n w a r d . O n c e a g a i n , i t i s n o t b e c a u se of anything ha p p e n i n g h e r e , b u t b e c a u s e o f e v e n t s e l s e w h e r e . Th e m ajo r r i s k s t o M o n t a n a ’ s o u t l o o k a r e a ny f a l t e r i n g i n t h e U . S . a n d wo r l d e c o n o m ies , t h e f u l l ( a n d s t i l l u n k n o w n ) i m pacts of Mad Cow Di s e a s e , a n d a s h a r p r i s e i n i n t e re s t r a t e s ( a f f e c t i n g t h e c o n s t r u c ti o n a n d w o o d p r o d u c t s i n d u s t r i e s ) . Mo n t a n a g r e w s l i g h t l y i n 2 0 0 3 . T h i s s m al l d ec e l e r a t i o n m ay b e a t t r i b u t a b l e t o : s e v e r a l cl o s u r e s o r c u t b a c k s a t m ajo r e mpl o y e r s , s u ch a s S t i m so n L u m ber C o . i n L i b b y a n d De c k e r C o a l C o . n e a r D e c k e r , bu d g e t s h o r t f a l l s l e a d i n g t o c u tb a c k s a n d / o r p a y f r e e z e s i n st a t e g o v e r n m ent a n d p r i v a t e s o c i a l s e r v i c e a g en c i e s , a n d v e r y c o n s e r v a t i v e a s s u m pti o n s ab o u t f u t u r e g r o w t h i n ec o n o m y-w i d e p r o d u c t i v i t y . Th e f o r e c a s t s f o r 2 0 0 4 t o 2 0 0 6 r e f l e c t a g r a d u a l re t u r n t o M o n t a n a ' s l o n g - r u n g r o w t h o f ab o u t 2 p e r c e n t p e r y e a r . A p o r t i o n o f t h e f a st e r g r o w t h i n r e c e n t y e a r s w a s c a u s e d b y in c r e a s e s i n p r o d u c t i v i t y a t t r i b u t e d t o t h e I n te r n e t a n d c o m put e r i z a t io n , w h i c h w e r e a l s o ex p e r i e n c e d t h r o u g h o u t t h e n a t i o n ' s e c o n o m y. Ri s k s Th e m ajo r r i s k t o M o n t a n a ' s e c o n o m i c o u t l oo k i s t h e p o t e n t i a l d o u b l e- d i p r e c e s s i o n , a n d th e p o s s i b il i t y t h a t i t c o u ld b e c o m e a m ajo r e c o n o m y-w i d e a n d w o r l d w i d e r e c e s s i o n . O n th e p o s i t i v e s i d e , t h e r e i s g r o w i n g e v i d e n c e t h at t h e r e c e n t n a t i o n a l p r o d u ct i v it y i n c r e a s e s we r e n o t t e m p o r a r y , a n d t h a t o u r a s s u m pti o n s a b o u t f u t u r e p r o d u c t i v i t y t r e n d s m ay t u r n ou t t o b e t o o l o w . Ot h e r r i s k s i n c l u d e : un c e r t a i n o u t l o o k f o r s e v e r a l m ajo r e m p l o y e r s i n t h e s t a t e , co n t i n u e d d r o u g h t a n d v o l a t i l i t y i n f arm i n c o m e, a n d po t e n t i a l l a b o r s h o r t a g e s i n k e y a r e a s . 6 Ou t l o o k f o r G a l l a ti n C oun t y Ov e r t h e p a s t 3 0 y e a r s , G a l l a ti n C o u n t y w a s o n e o f M o n t a n a ’ s fa s t e s t - g r o w i n g co u n t i e s . I t s ec o n o m y w a s n o t t y p i c a l o f o t h e r s in t h e s t a t e , t h o ug h , b e c a u s e i t d i d n o t e x p e r i e n ce d e c l i n e s du r i n g t h e 1 98 0 ’ s a n d w a s e v e n a b l e t o p o s t s i za b l e g a i n s a t m id- d e c a d e a n d g r e w r a p i d l y th r o u g h o u t t h e 1 9 9 0 ’ s . Be t w e e n 1 9 9 5 a n d 2 0 0 0 , f o u r s e c t or s a c c o u n t e d f o r m ost o f t h e b a s i c i n d u s t r y g r o w t h i n Ga l l a t i n C o u n t y : t r a d e c e n t e r a c t i v i t i e s ( i n c l u di n g h e a l t h c a r e ) , n o n r e si d e n t t r a v e l , s t a t e go v e r n m ent ( M o n t a n a S tat e U n i v e r s i t y ) , an d m anu f a c t u r i n g ( i n c l u d i n g h i g h - t e c h ) . Th e f r e e z e i n s t a t e g o v e r n m ent w a g e s c o n t r i b u t e s to t h e s l i g h t l y l o w e r gr o w t h f o r e c a s t f o r 20 0 4 - 2 0 0 6 . T h e r e a l u n c e r t a i n t y l i e s i n t h e f u t u r e o f h i g h - t e c h m anu f a c t u r i n g . G a l l a t i n Co u n t y i s o n e o f t h e f e w a r e a s in M o n t a n a w h e r e h i g h - t e c h m anu fa c t u r i n g i s i m po r t a n t . T h e fo r e c a s t s d o i n c o r p o r a t e a r e c o v e r y i n h i g h - t ec h . T h e f o r e c a s t e d g r o w t h f i g u r e s f o r G a l l a t i n Co u n t y ( a n d F l a t h e a d C o u n t y ) a r e th e h i g h e s t a m on g Mo n t a n a c i t i e s . 7 8 MA J O R I N I T I A T I V E S Fo r t h e Y e a r Re p l a c e m e n t f o r M y s t i c D a m . T h e C o m m i s s i o n h a s c h o s e n t o d e l a y t h e r e p l a c e m e n t o f M y s t i c D a m a s l o n g a s p o ssible, without jeopardizing th e C i t y ’ s s t o r e d w a t e r r i g h t s . R a t h e r , t h e C o m m i s s i o n o p t e d t o m o r e a c t i v e l y p u r s u e w a t e r c o n s e r v a t i o n o p t i o n s t h r o u g h t h e h i ring of a co n s u l t a n t . T h e C o m m i s s i o n i s n o w c o n s i d e r i n g w h i c h o f t h o s e o p t i o n s t o i m p l e m e n t f i r s t, r e c o g n i z i n g t h a t t o s l o w i n c r e a s e s i n water usage helps to d e l a y c o s t l y w a t e r d e v e l o p m e n t i m p r o v e m e n t s . Bo z e m a n S o l v e n t S i t e . I n 1 9 8 9 , c o n t a m i n a n t s ( m a i n l y PC E ) w e r e d i s c o v e r e d i n a n d ne a r a s e w e r l i n e o n t h e B u t t r e y ’ s S h o p p i n g Center property. Wh i l e v o l u n t a r y r e m e d i a t i o n e f f o r t s w e r e co m p l e t e d s e v e r a l y e a r s a g o , th e C i t y c o n t i n u e s t o i n c u r t h e c o s t s o f m o n i t o r i n g . An n e x a t i o n s . A n n e x a t i o n s a n d g r o w t h , o f c o u r s e , c o n t i n ue t o b e c r i t i c a l i s s u e s f o r t h e C i t y , a s B o z e m a n i s o n e o f t h e f a s t e s t g r o w i n g co m m u n i t i e s i n M o n t a n a . D u r i n g t h i s f i s c a l y e a r , s e v e r a l a n n e xa t i o n s w e r e c o m p l e t e d , a n d s e v e r a l m o r e a r e i n p r o c e s s . Im p a c t F e e s . I n D e c e m b e r 1 9 9 5 , t h e C i t y C o m m i s s i o n v o t e d t o i m p l e m e n t i m p a c t f ee s f o r s t r e e t s , f i r e , w a t e r , a n d w a s t e w a t e r , w i t h a n e f f e c t ive da t e o f M a r c h 2 3 , 1 9 9 6 . T h e c o m b i n e d b a l a n c e i n t h o s e f u n d s i s s l i g h t l y o v e r $ 2 0 m i l l io n . D e s p i t e t h e c o n t i n u i n g l a w s u i t f i l e d by the Southwest Mo n t a n a B u i l d i n g I n d u s t r y A s s o c i a t i o n ( S W M BI A ) , t h e C i t y C o m m i s s i o n h a s b u d g e t e d a p p r ox i m a t e l y $ 7 . 5 m i l l i o n f r o m t h o s e m o n i e s i n the up c o m i n g f i s c a l y e a r f o r e i g h t ca p a c i t y e x p a n d i n g p r o j e c t s . Up d a t i n g o f t h e B o z e m a n A r e a M a s t e r P l a n . T h e C i t y u n d e r t o o k , w i t h i t s o w n P l a n n i n g D e p a r t m e nt s t a f f , t h e d e v e l o p m e n t o f t h e “ B o z e m a n 20 2 0 C o m m u n i t y P l a n , ” a n u p d a t e t o t h e B o z e ma n A r e a M a s t e r P l a n . T h e p l a n w a s a d o p t ed a n d s t a f f i m m e d i a t el y b e g a n u p d a t i n g o f the zone co d e t o b r i n g i t i n t o c o m p l i a n c e w i t h t h e n e w g r o w t h p o l i c y . Un i f i e d D e v e l o p m e n t O r d i n a n c e . N o w t h a t t h e “ B o z e m a n 2 0 2 0 C o m m u n i t y P l a n ” h a s b e e n i n p l a c e f o r t h r e e y e a r s , t w o m e m b e r s o f t h e Pl a n n i n g s t a f f h a v e d r a f t e d a u n i f i e d d e v e l o p m e n t o r d i n a n c e , w h i c h c o m b i n e s t h e z o n e co d e a n d s u b d i v i s i o n r e g u l a t i o n s a n d i s d e signed to ex p e d i t e r e v i e w p r o c e s s e s a n d e l i m i n a t e c o n f l i c t s i n r e g u l a ti o n s . O n N o v e m b e r 2 4 , 2 0 0 3 , t h e C i t y C o m m i s s i o n a d o p t e d t h e n e w u n i fied de v e l o p m e n t o r d i n a n c e b y a s u p e r - m a j o r i t y v o t e . 9 Pa y f o r P e r f o r m a n c e . D u r i n g F i s c a l Y e a r 2 0 0 1 , C i t y m a n a g e m e n t i n s t i t u t e d a pa y f o r p e r f o r m a n c e s y s t e m f o r t h e m a n a g e m e n t a n d m i d - ma n a g e m e n t p o s i t i o n s . T h i s p r o g r a m r e m a i n e d i n e f f e c t t h r o u g h F i sc a l Y e a r 2 0 0 4 , a n d c o n t i n u e s t o be i n e f f e c t d u r i n g F i s c a l Y e ar 2005. HB 1 2 4 . T h e 2 0 0 1 L e g i s l a t u r e d r a m a t i c a l l y r e v i s e d t h e S t a t e ’ s f u n d i n g me c h a n i s m s f o r l o c a l g o v e r n m e n t . T h i s b i l l i n c l u d e d t h e c o m b i n ing of se v e r a l S t a t e f u n d i n g s o u r c e s i n t o a s i n g l e e n t i t l e m e n t p r o g r a m , w i t h t h e r e v e n u e s be i n g d i s t r i b u t e d b a c k to c i t i e s o n a q u a r t e rly basis. This bill re m a i n e d i n t a c t t h r o u g h t h e 2 0 0 3 L e g i s l a t u r e , d e s p i t e s e v e ra l e f f o r t s t o e l i m i n a t e t h e i n f l a t i o n a r y i n c r e a s e . Fo r t h e F u t u r e Ge n e r a l O b l i g a t i o n B o n d . I t i s a n t i c i p a t e d t h a t e x p e n d i t u r e of t h e $ 5 m i l l i o n g e n e r a l o b l i g a t i o n b o n d i ss u e f o r t r a n s p o r t a t i o n p r o j e c t s w i l l co n t i n u e t h r o u g h a t l e a s t F i s c a l Y e a r 2 0 0 5 , w it h i m p r o v e m e n t s t o D u r s t o n R o a d f r o m N o r t h 7 t h A v e n u e t o N o r t h 1 9 t h A v e n u e b e i n g the one ou t s t a n d i n g l a r g e p r o j e c t . Wa t e r C o n s e r v a t i o n . T h e C i t y C o m m i s s i o n r e c o g n i z e s t h a t a n e du c a t i o n a l p r o g r a m i s a c r i t ic a l f i r s t s t e p i n p r o m o t i n g w a t e r c o n s e r v a t i o n . T h e Co m m i s s i o n a l s o a c k n o w l e d g e s t h a t f i n d i n g a n a l t e r n a t i v e s o u r c e o f w a t e r m a y b e c o m e es s e n t i a l i n u p c o m i n g y e a r s , p o s s i b l y g r o u n dwater in the aq u i f e r i n t h e h i l l s so u t h o f B o z e m a n . Mi l l L e v y f o r F i r e E q u i p m e n t a n d P r o j e c t s . I n N o v e m b e r 2 0 0 2 , t h e v o t e r s a p p r o v e d a $ 1 m i l l i on s p e c i a l v o t e d m i l l l e v y t o c o v e r t h e c o s t s o f so m e m a j o r n e e d s i n t h e F i r e D e p a r t m e n t , i n c l u d i n g t h e p u r c h a s e an d e q u i p p i n g o f a n e w p u m p e r t r u c k , c o n s t r u c t i o n o f a c l e a n r o om for all City em p l o y e e s a n d r e m o d e l i n g o f F i r e S t a t i o n 2 t o a c c o m m o d a t e t h e l a rg e r e q u i p m e n t . T h i s v o t e d m i l l l e v y i s f o r a p e r i o d n o t t o e x ceed three years. We s t B a b c o c k S t r e e t . T h e C i t y a n d C o u n t y C o m m i s s i on s a n d s t a f f w o r k e d t o g e t h e r f o r t h e p a s t e i gh t y e a r s t o i d e n t i f y the existing right-of-way fo r W e s t B a b c o c k S t r e e t a n d t o d e t e r m i n e w h at r i g h t - o f - w a y y e t r e m a i n e d t o b e a c q u i r e d. T h i s p r o c e s s i s n e a r i n g c o m p l e t i o n . S ince the County Co m m i s s i o n h a s n o w m a d e t h e d e t e r m i n a t i o n t h at c o u n t y p r o p e r t i e s a r e n o t t o b e i n c l u d e d in t h e i m p r o v e m e n t d i s t r i c t , t h e C i t y C ommission is ch o o s i n g t o m o v e f o r w a r d w it h t h e d i s t r i c t , i n c l u d i ng c i t y p r o p e r t i e s o n l y . At t h i s t i m e i t a p p e a r s t h at c o n s t r u c t i o n o f t h e s treet improvements will be u n d e r t a k e n i n t h e S u m m e r o f 2 0 0 5 . No r t h 1 9 th A v e n u e / V a l l e y C e n t e r R o a d . A f t e r t h e C i t y C o m m i s s i o n d e t e r m i n e d t h a t s t r ee t i m p a c t f e e s w o u l d n o t b e u s e d t o b u y d o w n t h e co s t s o f t h e s e i m p r o v e m e n t s , s t a f f e n t e r e d i n t o s e v e r a l m o n t h s o f n e g o t i a t i o n s w i t h a d j a c e n t p r o p e r t y o w n e r s t o r e a c h a n a g r e e m ent under which th e y w i l l p a y a p o r t i o n o f t h e c o s t s u p f r o n t i n e x c h a n g e f o r i m p a c t f e e c r e d i t s . I t i s a n t i c i p a t e d t h a t c o n s t r u c t i o n o f t h e s e road and traffic signal im p r o v e m e n t s w i l l b e u n d e r t a k e n i n t h e S u m m e r o f 2 0 0 5 . 10 Du r s t o n R o a d – N o r t h 1 9 th A v e n u e W e s t . C i t y s t a f f a n d t h e c o n s u l t i n g e n g i n e e r a r e i n t h e p r o c e s s o f a c q u i r i n g t h e r i ght-of-way necessary for im p r o v i n g D u r s t o n R o a d w e s t o f N o r t h 1 9 th A v e n u e t o t h e c i t y s t a n d a r d . I t i s a n t i c i p a t e d a t t h i s t i m e t h a t c o n s t r u c t i o n o f t h e r o a d i m p r o v e m e n t s wi l l b e g i n i n t h e S u m m e r o f 2 0 0 6 . SB 2 4 2 . T h e 2 0 0 1 L e g i s l a t u r e a d o p t e d S B 2 4 2 , w h i c h b r ie f l y t e r m i n a t e d t h e C i t y ’ s e x t r a t e r r i t o ri a l a u t h o r i t y f o r e n f o r c e m e n t o f t h e b u i lding codes. Du e t o l e g a l a c t i o n s , t h e C i t y c o n t i n u e s t o e n f o r c e t h e b u i l d i n g c o d e s in t h e e x t r a t e r r i t o r i a l a r ea . H o w e v e r , t h e 2 0 0 3 L e g i s l a t ure upheld SB242, an d e f f e c t i v e O c t o b e r 1 , 2 0 0 3 , t h e C i t y p e r m a n e n t l y l i s t i t s j u r i s d i c t i o n to i n s p e c t o u t s i d e c i t y l i m i t s . $9 . 1 m i l l i o n w a t e r / s e w er r e n o v a t i o n p r o g r a m . Th e C i t y r e c e i v e d a $ 5 m i l l i o n E P A g r a n t f o r r e n o v a t i o n o f i t s o l d w a t e r a n d s e w e r in f r a s t r u c t u r e . T h e s e m o n i e s m u s t b e m a tc h e d w i t h $ 4 . 1 m i l l i o n i n l o c a l f u n d s , w i t h a m a j o r i t y o f t h o s e f u n d s b e i n g g e n e r a t e d by a surcharge on th e m o n t h l y b i l l s . D u r i n g t h i s p a s t f i s c a l y e a r , o v e r $ 3 m il l i o n w a s e x p e n d e d o n f a c i l i t i e s c o n s t r u c t i o n a n d i n f r a s t r u c t u r e i m provements, including ex p a n s i o n a n d m o d i f i c a t i o n o f t h e C i t y ’ s W a st e w a t e r T r e a t m e n t P l a n t a n d r e p l a c e m e n t o f t h e N o r t h R o u s e s e w e r m a i n , w i t h a t o t a l of $6.2 million ex p e n d e d a s o f J u n e 3 0 , 2 0 0 4 . T h e d e s i g n a n d c o n s t r u c t i o n o f f i n a l r e n o v a t i o n s w i l l b e u n d e r t a k e n i n t h e u p c o m i n g f i s c a l y e a r s . La n d f i l l . T h e C i t y C o m m i s s i o n c o n t i n u e s t o p u r s u e t h e c o n s t r u c t i o n of a t r a n s f e r s t a t i o n . T o d a t e , t h e C i t y h a s p u r c h a s e d t h e s i t e f o r t h e p r o p o s e d tr a n s f e r s t a t i o n f o r $ 3 m i l l i o n , a t r a n s a c t i o n th a t i s n o w t h e s u b j e c t o f a l a w s u i t . Al s o , t h e C i t y i s s e e k i n g p r o p o s a l s f o r d esign of the facility, and pl a n s t o h a v e a f a c i l i t y i n o p e ra t i o n w i t h i n t h e n e x t y e a r . Th e G a l l a t i n C o u n t y C o m m i s s i o n h a s cr e a t e d a s o l i d w a s t e r e f u s e d i strict which, at the pr e s e n t t i m e , d o e s n o t i n c l u d e t h e C i t y of B o z e m a n o r t h e C i t y o f B e l g r a d e . Pa r k i n g S t r u c t u r e . T h e C i t y h a s r e c e i v e d a p r o p o s al f o r a d o w n t o w n d e v e l o p m e n t t h at i n c l u d e s a p a r k i n g s t r u c t u r e on the City’s parking lot at th e i n t e r s e c t i o n o f N o r t h T r a c y A v e n u e a n d Ea s t M e n d e n h a l l S t r e e t . I n r e s p o n s e t o t h at p r o p o s a l , t h e C i t y i s p u r s u i n g t h e p o s s ible design and co n s t r u c t i o n o f a t h r e e - s t o r y f a c i l i t y t h r ou g h a v a r i e t y o f f u n d i n g s o u r c e s , i n c l u d i n g ta x i n c r e m e n t m o n i e s , a s p e c i a l i m p r o v e m ent district and City fu n d s . Li b r a r y . T h e L i b r a r y F o u n d a t i o n c o n t i n u e s w i t h i t s fu n d r a i s i n g e f f o r t s f o r t h e c o n s t r u c t i o n o f a n e w l i b r a r y o n E a s t M a i n S t r e e t . T h e library pr o j e c t h a s g a i n e d t h e n e e d e d a p p r o v a l s t h r o u g h t h e p l a n n i n g p r oc e s s , a n d i t i s a n t i c i p a t e d c o n s tr u c t i o n w i l l b e g i n i n t h e S p r i ng 2005, provided th a t a p p r o v a l o f t h e r e m e d i a t i o n e f f o r t s h a s b e e n o b t a i n e d f r o m D E Q. T h e C i t y C o m m i s s i o n w i l l a l s o n e e d t o a u t h o r i z e a w a r d o f t h e c o n s t r u c t i o n co n t r a c t s o n c e s u f f i c i e n t f u n d s a r e a v a i l a b l e f o r t h e p r o j e c t . 11 De p a r t m e n t a l F o c u s Ea c h y e a r t h e C i t y s e l e c t s a d e p a r t m e n t t o h i g h l i g h t f o r i t s e f f o r t s a n d a c c o m p l i s h m e n t s . I n 2 0 0 4 , t h e B o z e m a n P u b l i c L i b r a r y has been selected fo r r e v i e w . Th e m i s s i o n o f t h e B o z e m a n P u b l i c L i b r a r y i s t o p r o v i d e t h e c o m m u n i t y w i t h f r e e , o p e n a n d e q u a l a c c e s s t o ge n e r a l i n f o r m a t i o n o n a broad array of t o p i c s ; r e s o u r c e s t o p r o m o t e p e r s o n a l g r ow t h a n d l i f e l o n g l e a r n i n g ; p o p u l ar m a t e r i a l s t o m e e t c u l t u r a l a n d r e c r e a t i o n a l n e e d s; and the training ne e d e d t o f i n d , e v a l u a t e , a n d u s e i n f o r m a t i o n e f f e c t i v e l y . T h e Li b r a r y s p e n t e i g h t m o n t h s d o i n g st r a t e g i c p l a n n i n g a n d s e l e c t e d four Service Re s p o n s e s ( o r r o l e s ) i n o r d e r t o m e e t a n e x p a n d i n g c o m m u n i t y o f d i v e r s e u s e r s : G e n e r a l I n f o r m a t i o n ; L i f e l o n g L e a r n i n g ; C u r r e n t Topics and Ti t l e s ; a n d I n f o r m a t i o n L i t e r a c y . T h e L i b r a r y w e l c o m e s a l l , e s pe c i a l l y t h e y o u n g , t o s h a r e i n t h e j o y o f e x p l o r i n g t h e w o r l d o f information and the re a l m s o f o u r i m a g i n a t i o n . Th e L i b r a r y i s a n i n t e g r a l p a r t o f C i t y go v e r n m e n t w i t h a n a d m i n i s t r a t i v e B o a r d o f T r us t e e s , w h o s e f i v e m e m b e r s a r e a p p o i n t e d b y the City Co m m i s s i o n t o a f i v e - y e a r t e r m , s e rv i n g n o m o r e t h a n t w o f u ll t e r m s i n s u c c e s s i o n . T h e L i b r ar y i s a d m i n i s t e r ed b y a L i b r a r y D i rector, who serves at t h e p l e a s u r e o f t h e B o a r d a n d is a l s o p a r t o f t h e C it y o f B o z e m a n g o v e r n m e n t a l s t r u c t u r e . T h e L i b r a r y c o n t in u a l l y d e v e l o p s its collections, staff an d f a c i l i t i e s t o m e e t t h e A m e r i c a n L i b r a r y A s s o c i a t i o n S t a n d a r d s f o r P u b l i c L i b r a r i e s a n d t h e M o nt a n a P u b l i c L i b r a r y S t a n d a r d s . Th e B o z e m a n P u b l i c L i b r a r y i s c o m p r i s e d o f fi v e d e p a r t m e n t s : a d m i n i s t r a t i v e s e r v i c e s ; r e f e r e n c e a n d a d u l t s e r v i c e s ; t e c h n i c a l a nd automated se r v i c e s ; c i r c u l a t i o n s e r v i c e s ; a n d c h i l d r e n ’ s s e r v i c e s . T h e r e a r e 3 3 f u l l a n d p a r t - t i m e e m p l o y e e s w h i c h e q u a t e s t o 1 9 . 6 6 f u l l time equivalents. In ad d i t i o n , t h e r e i s a c o o r d i n a t o r of v o l u n t e e r s e r v i c e s w ho o v e r s e e s 3 0 v o l u n t e e r s , i n c l u d i n g S p e c i a l D e l i v e r y w h i c h d e l i v e r s m a terials to the ho m e b o u n d . A l l L i b r a r y s e r v i c e s a n d f a c i l i t i e s a r e o p e n t o t h e g e n e r a l p u b l i c , a n d t h e Li b r a r y i s f u l l y a c c e s s i b l e t o p e r s o n s with disabilities. Ho u r s a r e : M o n d a y – T h u r s d a y : 1 0 : 0 0 a . m . – 8 : 0 0 p . m . ; F r i d a y a nd S a t u r d a y : 1 0 : 0 0 a . m . – 5 : 0 0 p . m . ; a n d S u n d a y s ( S e p t e m b e r t h rough May): 1: 0 0 – 5 : 0 0 p . m . Li b r a r y c a r d s a r e f r e e t o r e s i d e n t s o f G a ll a t i n C o u n t y a n d e n t i t l e i n d i v i d u a l s t o c h ec k o u t m o s t b o o k s a n d m a t e r i a l s f o r t h r e e weeks. Currently th e r e a r e 2 2 , 3 2 5 r e g i s t e r e d b o r r o w e r s w h o c h e c k e d o u t 4 9 2 , 1 3 3 m a t e r i a l s t h i s p a s t y e a r . T h e L i b r a r y s u b s c r i b e s t o 2 5 6 m a g a z i n e s and houses ap p r o x i m a t e l y 1 0 0 , 0 0 0 v o l u m e s . D V D s , v i d e o s , pe r i o d i c a l s , m u s i c C D s , p a m p h l e t s , b o o k s -o n - t a p e , b o o k s - o n - C D , an d s o m e n e w f i c t i on circulate fo r o n e w e e k . A b o o k d r o p i s l o c a t e d o n t h e w e s t s i d e o f t h e b u il d i n g . P a t r o n s m a y p i c k u p t h e i r o w n h o l d s a n d c h e c k t h e m o u t on an express ch e c k - o u t m a c h i n e . O t h e r s e r v i c e s i n c l u d e : r e f e r e n c e a n d i n f o r m a t i o n s e r v i c e s i n - h o u s e, o n - l i n e , o r b y ph o n e ; c h i l d r e n ’ s c o m p u t ers; word pr o c e s s i n g c o m p u t e r s ; a c o m m u n i t y b u l l e t i n b o ar d ; I n t e r n e t a c c e s s ; a C o m m u n i t y R e s o u r c e D i r e c t o r y ; a m e e t i n g r o o m w i t h a u d i o v i s ual eq u i p m e n t ; i n t e r l i b r a r y l o a n ; t o u r s ; t y p e wr i t e r s ; a p h o t o c o p i e r ; a r t d i s p la y s ; a n d a f r e e t a b l e o f m a g a z i n e s . S p e c i a l r e f e r e n c e collections include ma t e r i a l s o n g r a n t - w r i t i n g , c e n s u s i n f o r m a t i on , a n d b u s i n e s s . T h e M o n t a n a R o o m c o n t a i n s h i s t o r i c a l m a t e r i a l s o n M o n t a n a a n d t h e Gallatin Va l l e y . R e c e n t l y t h e L i b r a r y e n t e r e d i n t o a st a t e w i d e v i r t u a l r e f e r e n c e p r oj e c t , w h i c h a l l o w s p a t r o n s t o h a v e t h e i r q u e s t i o n s answered through a “l i v e c h a t ” w i t h l i b r a r i a n s . 12 Am o n g t h e m a n y p r o g r a m s o f f e r e d a r e m o n t h l y a d u l t p r o g r a m s ; w e e k l y s t o r y t i m e s f o r c h i l d r e n f r o m i n f a n c y t o s c h o o l a g e ; a S u m m e r Reading Pr o g r a m f o r a l l a g e s ; a b o o k d i s c u s s i o n g r o u p f o r a d u l t s ; I n t e r n e t c l a s s e s ; a n d s u m m e r a c t i v i t i e s on t h e l a w n . T h e c h i l d r e n ’ s department presented 41 8 p r o g r a m s w h i c h a t t r a c t e d 1 2 , 5 6 7 p a r t i c i p a n t s t h i s p a s t y e a r , an d t h e r e f e r e n c e d e p a r t m e n t p r oc e s s e d 3 , 9 4 6 i n t e r l i b r a r y l o a n transactions and an s w e r e d 8 4 , 4 9 8 r e f e r e n c e q u e s t i o n s . N ea r l y 1 , 0 0 0 p e o p l e v i s i t t h e L i b r a r y d a i l y, a n d 1 , 2 1 1 p e o p l e a t t e n d e d 9 7 a d u l t p r o g r a m s this past year. Ye l l o w s t o n e P u b l i c R a d i o ( K E M C ) i n B i l l i ng s p l a c e d a r e c o r d i n g b o o t h i n t h e m e e t i n g ro o m , w h i c h h a s t h e c a p a b i l i t y t o b r o a d c a s t live pr o g r a m m i n g . T h e L i b r a r y p r i n t s a m o n t h l y n e w s l e t t e r C h e c k I t O u t l i s t i n g p r o g r am s a n d s e r v i c e s , a l i s t o f n e w b o o k s a n d o t h e r materials, an an n u a l r e p o r t , a g e n e r a l L i b r a r y b r o c h u r e , a nd s p e c i a l i z e d b r o c h u r e s a n d b i b l i o g r a p h i e s , a l l o f w h i c h a r e a l s o a v a i l a b l e o n t h e Library’s web site (ww w . b o z e m a n l i b r a r y . o r g ). In 2 0 0 3 t h e L i b r a r y w a s h o n o r e d b y t h e I n s t i t u t e o f M u s e u m a n d L i b r ar y S e r v i c e s ( I M L S ) a s o n e o f t h r e e l i b r a r i e s i n t h e n a t i o n to receive the Na t i o n a l A w a r d f o r L i b r a r y S e r v i c e , c r e a t e d to h o n o r l i b r a r i e s w h i c h m a k e a d i f f e r e n c e i n t h e i r c o m m u n it i e s . I M L S D i r e c t o r R o b ert Martin vi s i t e d B o z e m a n i n N o v e m b e r 2 0 0 3 t o p r e s e n t t h e A w a r d i n a l o c a l c e r e mo n y . T h e n i n J a n u a r y 2 0 0 4 F i r s t L a d y L a u r a B u s h p r e s e n t e d the Award in a s p e c i a l W h i t e H o u s e C e r e m o n y . T h e L i b r ar y a l s o r e c e i v e d t h e M o n t a n a L i b r a r y A s s o c i a t i o n ( M L A ) A w a r d f o r L i b r a r y o f t h e Y e a r at MLA’s an n u a l c o n f e r e n c e h e l d i n B o z e m a n i n A p r i l 2 0 0 4 . I n a d d i ti o n t w o r e t i r i n g T r u s t e e s w e r e h o n o r e d w i t h A w a r d s . In 1 9 9 5 t h e L i b r a r y a d d e d B r i d g e r N e t , t h e c o m p u t e r i z e d c a t a l o g a n d ci r c u l a t i o n s y s t e m w h i c h a l l o w s p a t r o n s t o l o o k u p m a t e r i a l s at four of the fi v e p u b l i c l i b r a r i e s i n G a l l a t i n C o u n t y . P e o p l e c a n p l a c e t h e i r o w n h o l d s o n m a t e r i a l s a n d h a v e m a t e r i a l s d e l i v e r e d f r o m o t h e r libraries via a vo l u n t e e r c o u r i e r s e r v i c e . I n 1 9 9 7 a C o m m un i t y R e s o u r c e D i r e c t o r y w a s a d d e d t o B r i d g e r N e t , w h i c h g i v e s i n f o r m a t i o n a b o u t 1 2 0 clubs and non- pr o f i t o r g a n i z a t i o n s i n G a l l a t i n C o u n t y . G r ou p s c a n a l s o s u b m i t i n f o r m a t i o n a b o u t e v e n t s t o t h e o n l i n e E v e n t s C a l e n d a r i n t h e Community Re s o u r c e D i r e c t o r y . I n 2 0 0 4 t h e L i b r a r y m i g r a t e d t o a n e w s y s t em , w h i c h a l l o w s i n t e r f a c e w i t h 55 o t h e r l i b r a r i e s i n t h e s t a t e and access to 1, 4 0 0 , 0 0 0 i t e m s . I t e m s c a n a l s o b e b o r r o w e d f r o m a n y w h e r e i n th e w o r l d v i a t h e L i b r a r y ’ s i n t e r l i b r a r y l o a n s e r v i c e . Tw o n o n - p r o f i t g r o u p s a s s i s t t h e L i br a r y w i t h n e e d s a b o v e a n d b e y o n d Ci t y f u n d s , w h i c h c o m p r i s e t w o - th i r d s o f t h e b u d g e t , a n d C ounty funds, wh i c h c o m p r i s e o n e - t h i r d o f t h e b u d g e t . Th e F r i e n d s o f t h e L i b r a r y gr o u p h e l p s i n m a n y w a y s : p u r c h a s i n g b o o k s a n d m a t e r i a l s ; s ponsoring sp e c i a l p r o g r a m s a n d t h e b o o k s a l e s o f f e r e d t h r e e t i m e s a y e a r ; p r ov i d i n g t h e L i b r a r y w i t h c o m p u t er s a n d a p h o t o c o p i e r f o r t h e public, and hosting th e B o o k D i s c u s s i o n G r o u p . T h e B o z e m a n P u b l i c L i b r a r y F o u n d a t i o n wa s e s t a b l i s h e d i n 1 9 8 2 t o r e c e iv e c o n t r i b u t i o n s a n d d o n a t i o n s to be used to m e e t t h e g r o w i n g n e e d s o f t h e L i b r a r y . A n e n d o w m e n t f u n d w a s s e t u p i n 1 9 9 1 t o e n su r e f u n d i n g b e y o n d w h a t t h e a n n u a l t a x b u dget provides. Th e F o u n d a t i o n s p o n s o r s a n a n n u a l f u n d r a i s e r t o b e n e f i t t h e L i b r a r y . Th e L i b r a r y c o n t i n u e s t o s t r i v e t o o f f e r qu a l i t y l i b r a r y s e r v i c e s i n o r d e r t o m e e t th e d e m a n d s a n d n e e d s o f a g r o w i n g c o u n t y p o pulation for the pr e s e n t a n d f o r t h e f u t u r e . I n 1 9 9 9 a l i b r a r y c o n s u l t a n t r e c o mm e n d e d t h e L i b r a r y e x p a n d f r o m i t s c u r r e n t 2 1 , 0 0 0 s q u a r e f o o t b u ilding to a 50,500 sq u a r e f o o t s p a c e . A c k n o w l e d g i n g t h e n e e d f o r a n e w b u i l d in g , C i t y r e s i d e n t s p a s s e d a $ 4 , 0 0 0 , 0 0 0 b o n d r e f e r e n d u m b y a t w o - t o - o ne margin in 20 0 1 , a n d t h e T r u s t e e s p u r c h a s e d a 1 4 . 3 - a c r e s i t e o n E a s t M a i n S t r e et , w h i c h s u b s e q u e n t l y w a s c l e a n e d o f t h e l e a d a n d a s b e s t o s on the property. Th e F o u n d a t i o n l a u n c h e d a c a p i t a l c a m p a i g n t o r a i s e a m a t c h i ng $ 4 , 0 0 0 , 0 0 0 t o w a r d t h e p r o j e c t g o al o f $ 1 6 , 0 0 0 , 0 0 0 . W i t h t h e f u n draising nearly co m p l e t e , t h e L i b r a r y h o p e s t o b r e a k g r o u n d i n S p r i n g 2 0 0 5 . 13 FI N A N C I A L I N F O R M A T I O N Ma n a g e m e n t o f t h e C i t y i s r e s p o n s i b l e f o r e s t a b l i s h i n g a n d m a i n t a in i n g a n i n t e r n a l c o n t r o l s t r u c t ur e d e s i g n e d t o e n s u r e t h a t t h e assets of the City ar e p r o t e c t e d f r o m l o s s , t h e f t o r m i s u s e a nd t o e n s u r e t h a t a d e q u a t e a c c o u n t i n g d a t a a r e c o m p i l e d t o a l l o w f o r t h e p r e p a r a t i o n of financial st a t e m e n t s i n c o n f o r m i t y w i t h g e n e r a l l y a c c e p t e d a c c o u n t i n g p r i n c i p l e s . T h e i n t e r n a l co n t r o l s t r u c t u r e i s d e s i g n e d t o p r o v i d e reasonable, but not ab s o l u t e , a s s u r a n c e t h a t t h e s e o b j e c t i v e s a r e m e t . T h e c o n c e p t of r e a s o n a b l e a s s u r a n c e r e c o g n i z e s t h a t : ( 1 ) t h e c o s t o f a c o n t rol should not exceed th e b e n e f i t s l i k e l y t o b e d e r i v e d; a n d ( 2 ) t h e v a l u a t i o n o f c o s t s a n d b e n e f i t s r e q u i r e s e s t i m a t e s a n d j u d g m e n t s b y m a n a g e m e n t . Bu d g e t i n g C o n t r o l s In a d d i t i o n , t h e C i t y m a i n t a i n s bu d g e t a r y c o n t r o l s . T h e o b j e c t i v e o f t h e s e b u d g e t a r y c o n t r o l s i s to e n s u r e c o m p l i a n c e w i t h l e g al provisions em b o d i e d i n t h e M o n t a n a C o d e A nn o t a t e d a n d t h e a n n u a l a p p r o p r i a ti o n r e s o l u t i o n a p p r o v e d b y t h e C it y C o m m i s s i o n . A l l f u n d t y p e s are included in t h e a p p r o p r i a t i o n o r d i n a n c e . T h e l e v e l o f b u d g e t a r y c o n t r o l ( t h a t i s , t h e l e v e l a t w h i c h e x p e n d it u r e s c a n n o t l e g a l l y e x c e e d the appropriated am o u n t ) i s e s t a b l i s h e d a t t h e f u n d g r o u p l e v e l . Ca s h M a n a g e m e n t Ca s h t e m p o r a r i l y i d l e d u r i n g t h e y e a r w a s i n v e s t e d i n s h o r t - t e r m d e p o s i t s , o b l i g a t i o n s o f t h e U . S . T r e a s u r y , r e p u r c h a s e a g r e e m e nts and the state's sh o r t - t e r m i n v e s t m e n t p o o l ( S T I P ) . T h e a v e r a g e y i e l d o n i n v e s t me n t s d u r i n g t h e y e a r w a s 1 . 5 7 4 p e r c e n t . T h e C i t y e a r n e d i n t e r e st revenue of $6 8 9 , 1 1 2 o n a l l i n v e s t m e n t s f o r t h e y e a r e n d e d J u n e 3 0 , 2 0 0 4 . T h e C i t y i n ve s t s a l l f u n d s i n a c c o r d a n c e w i t h S t a t e l a w . Ri s k M a n a g e m e n t Th e C i t y o f B o z e m a n j o i n e d w i t h o v e r 1 0 0 o t h e r M o n t a n a c i t i e s a n d t o w n s t o f o r m a s e l f -i n s u r a n c e p o o l o f f e r i n g w o r k e r s ' c o m p e n s ation and li a b i l i t y c o v e r a g e s . L i a b i l i t y l i m i t s o f $ 7 5 0 , 0 0 0 p e r p e r s o n a n d $ 1 . 5 m i l l i o n p e r i n c i d e nt w e r e o b t a i n e d t h r o u g h t h e i n s u r a n c e pool. The pool, (r e n a m e d t h e M o n t a n a M u n i c i p a l I n s u r a n c e A u t h o r i t y ( t h e A u t ho r i t y ) ) , i s s u e d $ 4 . 4 1 m i l l i o n i n t a x - e x e m p t b o n d s t o f u n d t h e p r o g r am's liability re s e r v e s . T h e C i t y si g n e d a n o t e w i t h t h e A u t h o r i t y f o r $ 2 8 9 , 3 0 4 , i t s p r o r a t a s h a r e o f t h e d e b t , i n o r de r t o h e l p s e c u r e t h e bonds. In September 19 9 0 , t h e p o o l i s s u e d $ 7 . 6 1 m i l l i o n i n t a x - e x e m p t b o n d s t o f u n d t h e pr o g r a m ' s w o r k e r s ' c o m p e n s a t i o n r e s e r v e s . T h e C i t y s i g n e d a note with the Au t h o r i t y f o r $ 4 0 2 , 1 1 4 , i t s p r o r a t a s h ar e o f t h e d e b t , i n o r d e r t o h e l p s e c u r e th e b o n d s . T h e d e b t s e r v i c e o n t h e b o n d s i s e x pected to be paid th r o u g h i n s u r a n c e p r e m i u m s o f t h e A u t h o r i t y . A r e f u n d i n g o f t h e l i a b i l i t y b o n d s w a s c o m p l e t e d i n 1 9 9 3 a n d a r e f u n d i n g o f t h e w orkers’ co m p e n s a t i o n b o n d s w a s c o m p l e t e d i n 1 9 9 4 . 14 OT H E R I N F O R M A T I O N In d e p e n d e n t A u d i t Th e S t a t e o f M o n t a n a r e q u i r e s a b i a n n u a l a u d i t o f t h e b o o k s o f a c c o u n t s , f i n a n c i a l r e c o r d s, a n d t r a n s a c t i o n s o f a l l a d m i n i s t r a t ive departments of th e C i t y b y i n d e p e n d e n t c e r t i f i e d a c c o u n t a n t s s e l e c t e d b y t h e C i t y C o m m i s s i o n . I t i s t h e b e l i e f o f t h e C i t y C o m m i s s i o n a n d E x e cutive staff that an an n u a l a u d i t a s s u r e s a h i g h e r l e v e l o f f i n a nc i a l m a n a g e m e n t a n d f i s c a l r e s p o n s i b i l i t y . T h i s p o l i c y , a l o n g w i t h t h e l e g a l r e q u i rements, has been co m p l i e d w i t h a n d t h e a u d i t o r s ' o p i n i o n o f A n d e r s o n Z u r M u e hl e n & C o . , P . C . , h a s b e e n in c l u d e d i n t h i s r e p o r t . Aw a r d s Th e G o v e r n m e n t F i n a n c e O f f i c e r s ' A s s o c i a t i on ( G F O A ) a w a r d e d a C e r t i f i c a t e o f A c h i e v e m e n t f o r E x c e l l e n c e i n F i n a n c i a l R e p o r t i n g to the City of B o z e m a n f o r i t s c o m p r e h e n s i v e a n n u a l f i na n c i a l r e p o r t f o r t h e f i s c a l y e a r e n d e d J u n e 3 0 , 2 0 0 3 . T h i s w a s t h e 2 0 t h c o n s e c u t i v e year that the City ha s r e c e i v e d t h i s p r e s t i g i o u s a w a r d . I n o r de r t o b e a w a r d e d a C e r t i f i c at e o f A c h i e v e m e n t , t h e C i t y p u b l i s h e d a n e a s i l y r e a d a b l e and efficiently or g a n i z e d c o m p r e h e n s i v e a n n u a l f i n a n c i a l r e po r t . T h i s r e p o r t s a t i s f i e d b o t h g e n e r a l l y a c c e p t e d a c c o u n t i n g p r i n c i p l e s a n d a p p l i cable legal re q u i r e m e n t s . A C e r t i f i c a t e o f A c h i e v e m e n t i s v a l i d f o r a p e r i o d o f o n e y e a r on l y . W e b e l i e v e o u r c u r r e n t c o m p r e h e n s i v e a n n u a l f i n a n c i a l r e p ort continues to me e t t h e C e r t i f i c a t e o f A c h i e v e m e n t P r o g r a m ' s r e q u i r e m e n t a n d we a r e s u b m i t t i n g i t t o t h e G F O A t o d e t e r m i n e i t s e l i g i b i l i t y f o r another ce r t i f i c a t e . 15 Ac k n o w l e d g e m e n t s Th e p r e p a r a t i o n o f t h e C o m p r e h e n s i v e A n n u a l F i n a n c i a l R e p o r t o n a t i m e l y b a s i s w a s m a d e p o s s i b l e by t h e d e d i c a t e d s e r v i c e o f t h e entire staff of th e F i n a n c e D e p a r t m e n t . E a c h m e m b e r o f t h e d e p a r t m e n t h a s o u r si n c e r e a p p r e c i a t i o n f o r t h e c o n t ri b u t i o n s m a d e i n t h e p r e p a r a t i on of this report. In c l o s i n g , w i t h o u t t h e l ea d e r s h i p a n d s u p p o r t o f t h e g o v e r n i n g b o d y o f t h e C i t y , p r e p a r a t i o n o f t h i s r e p o rt w o u l d n o t h a v e b e e n possible. Si n c e r e l y , Ch r i s K u k u l s k i B r i a n L a M e r e s Ci t y M a n a g e r C i t y C o n t r o l l e r 16 CI T Y O F B O ZE M A N , M O N T A NA GF O A C E RT I F I C A T E 17 CI T Y O F B O ZE M A N , M O N T A NA OR G A NI Z A TI O N A L C HAR T VO T E R S of T H E C I T Y OF B O Z E M AN MU N I C I P AL J U D G E CI T Y C O M MIS S I O N CL E R K O F CO M M I S S I O N DE P A R T M E NT O F FI N A N C E DE P A R T M E T OF N LA W DE P A R T M E NT O F PU B L I C S A F E T Y DE P A R T M E NT O F PU B L I C S E RV I C E AS S I S T A N T C I T Y M A N A G E R CI T Y M A N AG E R DE P A R T M E NT OF PU B L I C W E LFARE 18 CI T Y O F B O Z E M A N , M O N T A N A CI T Y E L E C T E D O F F I C I A L S A N D O F F I C E R S EL E C T E D O F F I C I A L S Le g i s l a t i v e An d r e w L . C e t r a r o Ma y o r Le e H i e t a l a Co m m i s s i o n e r St e v e n K i r c h h o f f Co m m i s s i o n e r Je f f r e y K r a u s s Co m m i s s i o n e r Ma r c i a Y o u n g m a n Co m m i s s i o n e r Ju d i c i a l Pa t r i c i a K y l e C a r l s o n Mu n i c i p a l J u d g e OF F I C E R S Le g i s l a t i v e Ro b i n S u l l i v a n Cl e r k o f C o m m i s s i o n Ex e c u t i v e Ch r i s K u k u l s k i Ci t y M a n a g e r De p a r t m e n t o f L a w Pa u l J . L u w e Ci t y A t t o r n e y Su s a n W o r d a l As s i s t a n t C i t y A t t o r n e y Ti m o t h y A . C o o p e r As s i s t a n t C i t y A t t o r n e y Pa t r i c i a D a y - M o o r e As s i s t a n t C i t y A t t o r n e y De p a r t m e n t o f F i n a n c e Mi r a l D . G a m r a d t Di r e c t o r o f F i n a n c e Br i a n L a M e r e s , C P A Co n t r o l l e r La u r a e C l a r k Tr e a s u r e r Bo b S c h u n k e Pr o g r a m m e r / A n a l y s t Va c a n t In t e r n a l C o n t r o l M a n a g e r 19 CI T Y O F B O Z E M A N , M O N T A N A CI T Y E L E C T E D O F F I C I A L S A N D O F F I C E R S ( C O N T I N U E D ) OF F I C E R S ( C O N T I N U E D ) De p a r t m e n t o f P u b l i c S a f e t y Ma r k T y m r a k Di r e c t o r o f P u b l i c S a f e t y Bi l l D o v e As s i s t a n t D i r e c t o r o f P u b l i c S a f e t y - P o l i c e I n v e s t i g a t i o n s Ma r t y K e n t As s i s t a n t D i r e c t o r o f P u b l i c S a f e t y - P o l i c e P a t r o l Ma r k L a c h a p e l l e As s i s t a n t D i r e c t o r o f P u b l i c S a f e t y - P o l i c e S u p p o r t Ch u c k W i n n As s i s t a n t D i r e c t o r o f P u b l i c S a f e t y - F i r e O p e r a t i o n s Gr e g M e g a a r d As s i s t a n t D i r e c t o r o f P u b l i c S a f e t y - F i r e I n s p e c t i o n s Bi l l K a y s e r As s i s t a n t D i r e c t o r o f P u b l i c S a f e t y - T r a n s i t i o n De p a r t m e n t o f P u b l i c S e r v i c e De b r a H . A r k e l l Di r e c t o r o f P u b l i c S e r v i c e Ri c k H i x s o n Ci t y E n g i n e e r Jo h n A l s t o n Su p e r i n t e n d e n t o f W a te r a n d W a s t e W a t e r O p e r a t i o n s Jo h n V a n D e l i n d e r Su p e r i n t e n d e nt o f S t r e e t O p e r a t i o n s Ma r k K o t t w i t z Su p e r i n t e n d e n t o f S a n i t a t i o n O p e r a t i o n s De a n E l l i o t Su p e r i n t e n d e n t o f W a t e r T r e a t m e n t P l a n t Th o m a s A d a m s Su p e r i n t e n d e n t o f W a s t e W a t e r P l a n t Ja m e s G o e h r u n g Su p e r i n t e n d e n t o f F a c i l i t i e s a n d L a n d s De p a r t m e n t o f P u b l i c W e l f a r e Su e H a r k i n Di r e c t o r o f R e c r e a t i o n An d r e w E p p l e Di r e c t o r o f P l a n n i n g Al i c e M e i s t e r Di r e c t o r o f L i b r a r y PA R T I I FI N A N C I A L S E C T I O N 20 IN D E P E N DENT A U D I T OR’ S R E P O R T Ho n o r a b l e M a y or, C i t y C o mm i s s i o n e r s , a n d C i t y M a n age r o f t h e Ci t y of B o z e m a n , M o n t a n a : We h a v e au d i t e d t h e a c c o mpan y ing f i n a n c i a l s t at e m e n t s o f t h e g ov e r n m ent a l ac t i v i t i e s , t h e b u s i n e s s - t y pe a c t i v i t i e s , e a c h major fund, and the aggregate re m ain i n g f u n d i n f o r m at i o n o f t h e C i t y o f B o z e m a n , M o n t a n a , a s of a n d f o r t h e y ea r e n d e d J u n e 3 0 , 2 0 0 4, w h i c h c o l l e c t i v e l y comprise the City’s basic fi n a n c i a l s t a t e m en t s a s l i s t e d i n t h e t a b l e o f c o n t e n t s . T h e s e fi n a n c i a l s t a t e m e n t s ar e t h e r e s p o n s i b i l i t y o f t he C i t y o f B o z e man's management. Our re s p o n s i b i l i t y i s t o e x p r e s s o p i n i o n s o n thes e f i na n c i a l s t a t e m e n t s b a s e d o n o u r a ud i t . We c o n d u c t e d o u r a u d i t i n a c c o r d a n c e wi t h au d i t i n g s t a n d a r d s g e n e r a l l y a c c e p t e d i n t h e Un i t e d S t a t e s o f Am er i ca an d t h e s t a n d a r ds applicable to financial au d i t s c o n t a i n e d i n Go v e r n m e n t A u d i t i ng S t a nd a r d s , i s s u e d b y t he C o mptr o l l e r G e n e r a l o f th e U n i t e d S t at e s . T h o s e st a n d a r d s r e q uire that we plan and pe r f o r m t h e au d i t t o o b t a i n r e a s o n a b l e a s s u r a nc e a b o u t w h e t h e r t h e f i n a n c i a l st a t e m en t s ar e f r e e o f ma t e r i a l miss t a t e m e n t . A n audit includes examining, on a t e s t b a s i s , e v i d e n c e s u p p or t i n g t h e a m o u n t s a n d d i s clo s u r e s i n th e f i n a n c i a l s t a t e m e n t s . A n au d i t a l s o i n c l u d e s a s s e s s i n g t h e accounting principles used an d s i g n i f i c a n t e s t i mat es ma d e b y m a n a g e ment , a s we l l a s e v a l u ati ng t h e o v e r a l l f i n a n c i a l st a t e m e n t pr e s e n t a t i o n . W e b e l i e v e t hat our audit provides a re a s o n a b l e b a s i s f o r o u r o p in i o n . In o u r o p i n i o n , t h e f i n a n c i a l s t a t em en t s r e f e r r ed t o a b o v e p r e s e n t f a i r l y , i n a l l mate r i a l r e s p ec t s , t h e r e s p e c t i v e f i n a n c i a l p osition of the governmental ac t i v i t i e s , t h e b u s i n e s s - t y p e a c t i v i t i es , e a c h majo r f u n d , a n d t h e a gg r e g a t e r e m a i n in g f u n d i nfo r m at i o n o f t h e C i t y o f Bo z e m a n , Montana, as of June 30, 20 0 4 , a n d t he r e s p e c t i v e ch a n g e s i n f i n a n c i a l p o s i t i o n a n d c a s h fl o w s , w h e r e a p p l i c a b l e , th e r e o f f o r t h e y ea r t h e n e nd e d i n c o n formity with accounting pr i n c i p l e s g e n e r a l l y a c c e p t e d i n t h e U n i t e d S t a t e s o f A mer i ca . In a c c o r d a n c e w i t h Go v e r n m e n t A u d i t i n g S t a nd a r d s, w e h a v e al s o i s s u e d o u r r e p o r t d a t e d D e c e m ber 15 , 2 0 04 o n o u r c o n s i d e r a t i o n o f t h e City of Bo z e m a n ' s i n t e r n a l c o n t r o l o v e r f i n a n c i al r e p o r t i n g an d o u r t e s t s of i t s c o m pli a n c e w i t h c e r t a i n p r o v i s i on s o f l a w s , r e g u l a t i o n s, contracts and grant ag r e e m e n t s a n d o t h e r m a t t e r s . T h e p u r p o s e of t h a t r e p o r t i s t o d e s c r i b e t h e sc o pe o f o u r t e s t i n g o f i n t e r n a l c o n t r o l o v e r f i n a ncial reporting and compliance an d t h e r e s u l t s o f t h a t t es t i ng , a n d n o t to p r o v i d e a n o p i n i o n o n t h e i n t e r n a l c on t r o l o v e r f i n a n c i a l r e p o r t i n g o r o n c o mpli a n c e. That report is an integral part of a n a u d i t p e r f o r m ed i n a c c o r d a n c e wi t h G ov e r n m e n t A u d i t S t a n d a r d s a n d s h o u l d b e r e a d in c o n j u n c t i o n w i t h t h i s r e p ort i n c o n s i dering the results of our au d i t . 21 Th e a c c o m p a n y i n g M a n a g e m e n t ’ s D i s c u s s i o n a n d A n a l y s i s a n d B u d g e t a ry C o m p a r i s o n I n f o r m a t i o n , a s l i s t e d o n t h e t a b l e o f c o n t e n t s , are not a required pa r t o f t h e b a s i c f i n a n c i a l s t a t e m e n t s b u t a r e s u p p l e m e n t a r y i n fo r m a t i o n r e q u i r e d b y t h e G o v e r n m e n t a l A c c o u n t i n g S t a n d a r d s B o a r d. We have applied ce r t a i n l i m i t e d p r o c e d u r e s , w h i c h c o n s i s t e d pr i n c i p a l l y o f i n q u i r i e s o f m a n a g e m e n t r e g a rd i n g t h e m e t h o d s o f m e a s u r e m e n t a n d p r e sentation of the required su p p l e m e n t a r y i n f o r m a t i o n . H o w e v e r , w e d i d n o t a u d i t t h e i n f o r m a t i o n a n d e x p r e s s n o o p i n i o n o n i t . Ou r a u d i t w a s c o n d u c t e d f o r t h e p u r p o s e o f f o r m i n g a n o p i n i o n o n th e f i n a n c i a l s t a t e m e n t s t h a t c o l l e c t i v e l y c o m p r i s e t h e C i t y o f B o z e m a n , M o n t a n a ’ s b a s i c fi n a n c i a l s t a t e m e n t s . T h e c o m b i n i n g a n d i n d i v i d u a l n o n - m a j o r f u n d f i n a n c i a l s t a t e m e n t s a n d o t he r s c h e d u l e s , l i s t e d i n t h e t a b l e of contents as su p p l e m e n t a r y i n f o r m a t i o n , a r e p r e s e n t e d f o r p u r p o s e s o f a d d i t i o n a l a n a l y s i s a n d a r e n o t a r e q u i r e d p a r t o f t h e b a s i c f i n a n c i a l statements. The ac c o m p a n y i n g s c h e d u l e o f e x p e n d i t u r e s o f f e d e r a l a w a r d s i s p r e s en t e d f o r p u r p o s e s o f a d d i t i o n a l a n a l y s i s a s r e q u i r e d b y t h e U . S. Office of Management an d B u d g e t Ci r c u l a r A - 1 3 3 , Au d i t o f S t a t e s , L o c a l G o v e r n m e n t s , a n d N o n - P r o f i t O r g a n i z a t i o n s , a n d i s n o t a r e q u i r e d p a r t o f the basic financial statements. Su c h i n f o r m a t i o n h a s b e e n s u b j e c t e d t o t h e a u d i t i n g p r o c e d u r e s a p p l i e d i n t h e a u d it o f t h e b a s i c f i n a n c i a l s t a t e m e n t s a n d , i n o ur opinion, is fairly stated in al l m a t e r i a l r e s p e c t s i n r e l a t i o n t o t h e b a s i c f i n a n c i a l s t a t e m e n t s t a k e n a s a w h o l e . Th e a c c o m p a n y i n g i n t r o d u c t o r y a n d s t a t i s t i c a l s e c t i o n s , a s l i s t e d in t h e t a b l e o f c o n t e n t s , a r e p r e s e n t e d f o r p u r p o s e s o f a d d i t ional analysis and are not a re q u i r e d p a r t o f t h e b a s i c f i n a n c i a l s t a t e m e n t s . T h i s i n f o r m a ti o n h a s n o t b e e n s u b j e c t e d t o t h e a u d i t i n g p r o c e d u r e s a p p l i e d i n the audit of the basic financial st a t e m e n t s a n d , a c c o r d i n g l y , w e e x p r e s s n o o p i n i o n o n t h e m . Bo z e m a n , M o n t a n a De c e m b e r 1 5 , 2 0 0 4 A. M A N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S 22 CI T Y O F B O Z E M A N , M O N T A N A MA N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S Ou r d i s c u s s i o n a n d a n a l y s i s o f t h e C i t y o f B o z e m a n ’ s f i n a n c i a l p e r f o r m a n c e p r o v i d e s a n o v e r v i e w o f t h e C i t y ’ s f i n a n c i a l a c t i v i t ies for the fiscal year ended Ju n e 3 0 , 2 0 0 4 . P l e a s e r e a d i t i n c o n j u n c t i o n w i t h t h e t r a n s m i t t a l l e t t e r o n p a g e 1 a n d t h e C i t y ’ s f i n a n c i a l s t a t e m e n t s , w h i c h be g i n o n p a g e 3 3 . US I N G T H I S A N N U A L R E P O R T Th i s a n n u a l r e p o r t c o n s i s t s o f a s e r i e s o f fi n a n c i a l s t a t e m e n t s . T h e S t a t e m e n t o f N e t A s s e t s a n d t h e S t a t e m e n t o f A c t i v i t i e s ( on pages 33 and 34) provide in f o r m a t i o n a b o u t t h e a c t i v i t i e s o f t h e C i t y a s a w h o l e a n d p r e s e n t a l o n g e r - t e r m v i e w o f t h e C i t y ’ s f i n a n c e s . F u n d f i n a n c i a l st a t e m e n t s s t a r t o n p a g e 3 5 . F o r go v e r n m e n t a l a c t i v i t i e s , t h e s e s t a t e m e n t s t e l l h o w t h e s e s e r v i c e s w e r e f i n a n c e d i n t h e s h o r t t e r m a s w e l l a s w h a t r e m a i n s f o r f uture spending. Fund financial st a t e m e n t s a l s o r e p o r t t h e C i t y ’ s o p e r a t i o n s i n m o r e d e t a i l t h a n t h e g o v e r n m e n t - w i d e st a t e m e n t s b y p r o v i d i n g i n f o r m a t i o n a b o u t the City’s most significant fu n d s . T h e r e m a i n i n g s t a t e m e n t s p r o v i d e fi n a n c i a l i n f o r m a t i o n a b o u t a c t i v i t i e s f o r w h ic h t h e C i t y a c t s s o l e l y a s a t r u s t e e o r agent for the benefit of those ou t s i d e o f t h e g o v e r n m e n t . Re p o r t i n g t h e C i t y a s a W h o l e Th e S t a t e m e n t o f N e t A s s e t s a n d t h e S t a t e m e n t o f A c t i v i t i e s Ou r a n a l y s i s o f t h e C i t y a s a w h o l e b e g i n s o n p a g e 2 4 . O n e o f t h e m o s t i m p o r t a n t q u e s t i o n s a s k e d a b o u t t h e C i t y ’ s f i n a n c e s i s , “Is the City as a whole better of f o r w o r s e o f f a s a r e s u l t o f t h e y e a r ’ s a c t i v i t i e s ? ” T h e S t a t em e n t o f N e t A s s e t s a n d t h e S t a t e m e n t o f A c t i v i t i e s r e p o r t i n f or m a t i o n a b o u t t h e C i t y a s a w h o l e an d a b o u t i t s a c t i v i t i e s i n a w a y t h a t h e l p s a n s w e r t h i s q u e s ti o n . T h e s e s t a t e m e n t s i n c l u d e a l l a s s e t s a n d l i a b i l i t i e s u s i n g t he ac c r u a l b a s i s o f a c c o u n t i n g , which is s i m i l a r t o t h e a c c o u n t i n g u s e d b y m o s t pr i v a t e - s e c t o r c o m p a n i e s . A l l o f t h e c u r r e nt y e a r ’ s r e v e n u e s a n d e x p e n s e s a r e t a k e n i n t o a c c o u n t r e g a r d l e s s o f w h e n ca s h i s r e c e i v e d o r p a i d . Th e s e t w o s t a t e m e n t s r e p o r t t h e C i t y ’ s ne t a s s e t s a n d c h a n g e s i n t h e m . Y o u c a n t h i n k o f t h e C i t y ’ s ne t a s s e t s , t h e d i f f e r e n c e b e t w een assets, what the citizens ow n , a n d l i a b i l i t i e s , w h a t t h e c i t i z e n s o w e , a s o n e w a y t o m e a s u r e t h e C i t y ’ s f i n a n c i a l h e a l t h , o r f i n a n c i a l p o s i t i o n . O v e r t i me , increases or decreases in the Ci t y ’ s n e t a s s e t s a r e o n e i n d i c a t o r o f w h e t h e r i t s fi n a n c i a l h e a l t h i s i m p r o v i n g o r d e t e r i o r a t i n g . Y o u w i l l n e e d t o c o n s i d e r o t h e r n o n f i n a n c i a l f a c t o r s , h o w e v e r , su c h a s c h a n g e s i n t h e C i t y ’ s pr o p e r t y t a x b a s e , i n c o m e t a x b a s e , a n d t h e c o nd i t i o n o f t h e C i t y ’ s c a p it a l a s s e t s ( r o a d s , b u i l d i ng s , w a t e r a n d s e w e r l i n e s ) t o a s s e s s th e ov e r a l l h e a l t h o f t h e C i t y . In t h e S t a t e m e n t o f N e t A s s e t s a n d t h e S t a t e m e n t o f A c t i v it i e s , w e d i v i d e t h e C i t y i n t o t w o k i n d s o f a c t i v i t i e s : • Go v e r n m e n t a l a c t i v i t i e s — M o s t o f t h e C i t y ’ s b a s i c s e r v i c e s a r e r e p o r t e d h e r e , i n c l u d i n g p o l i c e , f i r e , p u b l i c w o r k s , p a r k s , a n d g eneral administration. Pr o p e r t y t a x e s , s t a t e s h a r e d r e v e n u e s , c o u r t f i n e s , a n d r e c r e a t i o n f e e s f i n a n c e m o s t o f t h e s e a c t i v i t i e s . 23 CI T Y O F B O Z E M A N , M O N T A N A MA N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S ( C O N T I N U E D ) • Bu s i n e s s - t y p e a c t i v i t i e s — T h e C i t y c h ar g e s a f e e t o c u s t o m e r s t o h e l p i t c o v e r a l l or m o s t o f t h e c o s t o f c e r t a i n s e r v i c e s i t p r ovides. The City’s water, se w e r , a n d s o l i d w a s t e s y s t e m s a r e r e p o r t e d h e r e . Re p o r t i n g t h e C i t y ’ s M o s t S i g n i f i c a n t F u n d s Fu n d F i n a n c i a l S t a t e m e n t s Ou r a n a l y s i s o f t h e C i t y ’ s f u n d s b e g i n s on p a g e 2 8 . T h e f u n d f i n a n c i a l s t a t e m e n t s b e g i n o n p a g e 3 5 an d p r o v i d e d e t a i l e d i n f o r m a t i o n a b o u t t h e m o s t s i g n i f i c a n t fu n d s , n o t t h e C i t y a s a w h o l e . S o m e f u n d s a r e r e q u i r e d t o b e es t a b l i s h e d b y S t a t e l a w a n d b y b o n d c o v e n a n t s . H o w e v e r , t h e C i ty Commission establishes ma n y o t h e r f u n d s t o h e l p i t c o n t r o l a n d m a n a ge m o n e y f o r p a r t i c u l a r p u r p o s e s ( l i k e S t r e e t M a i n t e n a n c e D i s t r i c t F u n d s ) o r t o s h o w t h a t i t i s m e e t i n g l e g a l re s p o n s i b i l i t i e s f o r u s i n g c e r t a i n t a x e s , g r a n t s , a n d o t h e r m o n e y (l i k e g r a n t s r e c e i v e d f r o m t h e E n v i r o n m e n t a l P r o t e c t i o n A g e n c y). The City’s two kinds of fu n d s , g o v e r n m e n t a l a n d p r o p r i e t a r y , u s e d i f f e r e n t a c c o u n t i n g a p p r o a c h e s . Go v e r n m e n t a l f u n d s -- M o s t o f t h e C i t y ’ s b a s i c s e r v i c e s a r e r e p o r t e d i n g o v e r n m e n t a l fu n d s , w h i c h f o c u s o n h o w m o n e y f l o w s i n t o a n d o u t o f t h o s e f u nds and th e b a l a n c e s l e f t a t y e a r - e n d t h a t a r e av a i l a b l e f o r s p e n d i n g . T h e s e f u n d s a r e r e po r t e d u s i n g a n a c c o u n t i n g m e t h o d c a l l e d m o d i fied accrual accounting, which me a s u r e s c a s h a n d a l l o t h e r f i n a n c i a l a s s e t s t h a t c a n r e a d i l y b e c o nv e r t e d t o c a s h . T h e g o v e r n m e n t a l f u n d s t a t e m e n t s p r o v i d e a detailed short-term view of the Ci t y ’ s g e n e r a l g o v e r n m e n t o p e r a t i on s a n d t h e b a s i c s e r v i c e s i t p r o v i d e s . G o v e r n m e n t a l f u n d i n f o r m a t i o n h e l p s y o u d e t e r m i n e w h e ther there are more or fewer fi n a n c i a l r e s o u r c e s t h a t c a n b e s p e n t i n t h e n e a r f u t u r e t o f i n a n c e t h e C i t y ’ s p r o g r am s . W e d e s c r i b e t h e r e l a t i o n s h i p ( o r d i f f erences) between governmental ac t i v i t i e s ( r e p o r t e d i n t h e S t a t e m e n t o f N e t A s s e t s a n d t h e S t a t em e n t o f A c t i v i t i e s ) a n d g o v e r n m e n t a l f u n d s i n r e c o n c i l i a t i o n o n pages 37 and 39 of the fund fi n a n c i a l s t a t e m e n t s . Pr o p r i e t a r y f u n d s -- W h e n t h e C i t y c h a r g e s c u s t o m e r s f o r t h e s e r vi c e s i t p r o v i d e s , w h e t h e r t o o u t s i d e c u s t o m er s o r t o o t h e r u n i t s o f t h e C i t y , t h e se services are ge n e r a l l y r e p o r t e d i n p r o p r i e t a r y f u n d s . P r o p r i e t a r y f u n d s a r e r e p o r t e d i n t h e s a m e w a y t h a t a l l a c t i v i t i e s a r e r e p o r t e d i n t h e S t a t e m e n t o f N e t A s s e t s a n d t h e St a t e m e n t o f A c t i v i t i e s . I n f a c t , t h e C i t y ’ s e n t e r p r i s e f u n d s ( a c o m p o n e n t o f t h e p r o p r i e t a r y f u n d s ) a r e t h e s a m e a s t h e b u s i n es s - t y p e a c t i v i t i e s w e r e p o r t i n t h e go v e r n m e n t - w i d e s t a t e m e n t s b u t p r o v i d e m o r e de t a i l a n d a d d i t i o n a l i n f o r m a t i o n , s u c h a s c a s h f l o w s , f o r p r o p r i e t a r y f u n d s . W e u s e i n t e r n a l s e r v i c e f u n d s ( t h e ot h e r c o m p o n e n t o f p r o p r i e t a r y f u n d s ) t o r e p o r t a c t i v i t i e s t h a t p r o v i d e s u p p l i e s a n d s e r v i c e s f o r t h e C i t y ’ s o t h e r p r o g r a m s a n d activities, such as the Vehicle Ma i n t e n a n c e F u n d a n d H e a l t h I n s u r a n c e F u n d . I n t e r n a l s e r v i c e fu n d a c t i v i t y i s r e p o r t e d a s g o v e r n m e n t a l a c t i v i t y i n t h e g o v e r n m ent-wide statements since this ac t i v i t y , t h e f i n a n c i n g o f g o o d s a n d s e r v i c e s f o r o t h e r f u n d s o f t h e g o v e r n m e n t , i s m o r e g o v e r n m e n t a l t h a n b u s i n e s s - t y p e i n n a t ur e . Th e C i t y a s T r u s t e e Re p o r t i n g t h e C i t y ’ s F i d u c i a r y R e s p o n s i b i l i t i e s Th e C i t y i s t h e t r u s t e e , o r f i d u c i a r y , f o r o t h e r f u n d s , i n c l u d i ng t h e M u n i c i p a l C o u r t F u n d a n d t h e M o n t a n a A r t s C o u n c i l f u n d s f or the Montana Ballet, the Bo z e m a n S y m p h o n y O r c h e s t r a a n d t h e B i g S k y A s s o c i a t i o n f o r t h e A r ts . I t i s a l s o r e s p o n s i b l e f o r o t h e r a s s e t s t h a t , b e c a u s e o f a t r u s t a r r a n g e m e n t , c a n b e 24 CI T Y O F B O ZE M A N , M O N T A NA MA N A GE M ENT ’ S D I S C U S S I O N A ND A N A L YS I S ( C O N T I N UE D ) us e d o n l y f o r t h e t r u s t b e n e f i c i a r i e s . T h e g u i d e l i n e s f o r t h e a d mini s t r a t i o n o f t h e s e f u n d s a r e co n t a i n e d i n a p p l i c a b l e f i n a n c ial agreements and/or City or d i n a n c e s . Th e s e d o c u m e n t s c o n t a i n t he r u l e s g o v e rn i n g t he r e c e i pt , e x p e n d i t ure , a n d m anage m ent o f t h e C i t y ’ s f i du c i a r y f u n d s . All of the City’s fiduciary ac t i v i t i e s ar e re p o r t e d i n t h e S t a t e men t o f F i d u c i a r y N e t A ss e t s o n pa g e 4 5 a n d i n t h e C o mbin i n g S t a t e men t o f C h a n g e s i n A s s ets and Liabilities on pages 116- 11 7 . A s t h e s t a t e m e n t s r e f l e c t , t h e f i n a n c i a l a c t i v i t y d u r i n g the ye a r f o r t h e s e fu n d s i s n o m i n a l . W e e x c l u d e t h e s e a c t i v i t i e s f r o m the City’s other financial st a t e m e n t s b e c a u s e t h e C i t y c a n n o t u s e t h e s e as s e t s t o f i n a n c e i t s op e r a t i o n s . T h e C i t y i s r es p o n s i b l e f o r e n s u r i n g t h a t t h e ass e t s reported in these funds are us e d f o r t h e i r in t e n d e d p u r p o s e s . TH E C I T Y AS A W H O L E Th e C i t y ’ s co m b i n e d n e t a s s e t s i n c r e a s e d b y $1 0 . 9 m i l l i o n t h i s y ea r a s c o mpar e d t o $1 1 . 8 mil l i o n i n c r e a s e l a s t y ear . L o o k i n g at the net assets and next ex p e n s e s o f g o v e r n m ent a l an d b u s i n e s s - t y p e a c t i v i t i e s s e p a r a t e l y , ho w e v e r , t w o s l i g h t l y d i f f e re n t s t o r i e s e m e r g e . O u r a n a l y sis f o c u s es on the net assets (Table 1) a n d c h a n g e s i n n e t a s s e t s ( T a b l e 2 ) o f t h e C i ty ’ s g o v e r n m e n t a l a n d b u s i n e s s - t y p e a c t i v i t i e s . Ne t a s s e t s o f th e C i t y ’ s g o v e r n m e n t a l ac t i v i t i e s i n c r e a s e d b y 1 1 . 8 % ( $ 3 3 . 2 m illi o n c o m par e d t o $ 2 9 . 7 m ill i o n ) . Un r e s t r i c t e d ne t a s sets – the part of net assets th a t c a n b e u se d t o f i n a n c e d a y -to - d a y op e r a t i o n s w i t h o u t c o n s tr a i nt s e s t a b l i s h e d b y d e b t c o v ena n t s , e n a b l i n g l e g i s l a t i o n o r o t he r l e g a l r e q u i r e m ents increased to $ 2 7 . 3 m il l i on . T h e n e t a s s e t s o f o u r b u s i n e s s - t y pe a c t i v i t i e s in c r ea s e d b y 1 8 . 4 % ( $ 4 7 . 7 m il l io n c o m par ed t o $ 4 0 . 3 m il l i o n ) in 2 0 0 4 . These net assets cannot be u s e d t o ma k e u p f o r d e f i c i t s r e p o r t e d b y g o v e r n m e n t a l ac t i v i t i e s i n t h e ev e n t a n y s u c h d e f i c i t s we r e r e p o r t e d . T h e C i t y g e n er a l l y can only use the net assets of b u s i n e s s - t y p e a c t i v i t i e s t o f i n a n c e t h e c o n t i n u i n g op e r a ti o n s o f t h e w a t e r , s e w e r a n d s o l i d wa s t e o p e r a t i on s . 20 0 4 20 0 3 20 0 4 20 0 3 200 4 20 03 Cu r rent a n d O the r A ssets 34 . 5 $ 34 . 2 $ 26 . 8 $ 25 . 1 $ 61 . 3 $ 59 . 3 $ Ca p ita l A ssets 17 . 3 15 . 1 26 . 4 21 .7 43 .7 36 .8 Tota l A ssets 51 . 8 49 . 3 53 . 2 46 .8 10 5. 0 96 .1 Long-term D ebt O utsta n d i n g (15 . 5 ) (16 . 8 ) (3.7 ) (4.2 ) (19. 2 ) (21. 0 ) Other L iab i l it i e s (3. 1 ) (2 .8) (1 .8) (2 .3) (4 .9) (5 . 1) Tota l L iab i l it i e s (18 . 6 ) (19 . 6 ) (5 .5) (6 .5) (24. 1 ) (2 6. 1) Net A ssets : Invest ed i n C a p ital A ss e ts, n et o f r elate d d e bt 5. 3 (1.6 ) 25 . 2 19 . 9 30 . 5 18 . 3 Rest r i cted f o r T ax P rot ests - 0. 1 - - - 0. 1 Rest r i cted f o r D e bt S erv i ce (0.2) 6. 8 0. 9 1. 0 0. 7 7. 8 Rest r i cted f o r p ark ing p roj ects 0.2 - - - 0. 2 - Re st rict e d f or c e metary c a r e 0.5 - - - 0. 5 - Unrestrict e d 27 . 3 24 . 4 - 19 .4 27 .3 43 .8 Tota l N et A ssets 33 . 1 $ 29 . 7 $ 26 . 1 $ 40 .3 $ 59 .2 $ 70 .0 $ Gover n mental Ac ti v i ti es Ta bl e 1 Net A s s e t s (in M illions ) To t al Prim ar y G overn ment Bu s i ne s s -t y pe Ac ti vi t i es 25 CI T Y O F B O ZE M A N , M O N T A NA MA N A GE M ENT ’ S D I S C U S S I O N A ND A N A L YS I S ( C O N T I N UE D ) 20 0 4 20 0 3 20 0 4 20 03 200 4 2003 Re ve n u e s Pr o g ra m r e ve nues: Charge s f o r S e rv i c es 8.0 $ 8. 7 $ 15 . 5 $ 14 . 7 $ 23 . 5 $ 23.4$ Fede ral G ran t s 0. 9 0. 5 1. 6 1. 5 2. 5 2.0 Gene ral R e venu e s Pr o p er t y T axe s 9.1 8. 0 - - 9. 1 8.0 Ot her T axe s - - - - - - Un re st ri c ted G rants & C ont ri butions 4.3 4. 7 - - 4. 3 4.7 Othe r G ene ral R e venu e s 1.3 1. 6 - - 1. 3 1.6 Total R e venu es 23 .6 23 . 5 17 . 1 16 . 2 40 . 7 39.7 Pr ogram E xpe ns e s Gene ral G overnment 4. 4 3. 8 - - 4. 4 3.8 Pub l ic S afety 8. 1 8. 0 - - 8. 1 8.0 Pub l ic S ervic e 3.1 3. 3 - - 3. 1 3.3 Pub l ic W elfar e 4.0 3. 5 - - 4. 0 3.5 Ot her - 1. 2 - - - 1.2 Inte rest a nd F iscal F ees 0. 7 0. 7 - - 0. 7 0.7 Wa ter - - 3. 8 2. 9 3. 8 2.9 Wa ste W ater - - 3. 3 2. 5 3. 3 2.5 So l id W ast e - - 2. 4 2. 0 2. 4 2.0 Total E x pens e s 20 .3 20 . 5 9. 5 7. 4 29 . 8 27.9 Excess ( d eficienc y) b efo re specia l i t e ms a n d t r an s fers 3.3 3. 0 7. 6 8. 8 10 . 9 11.8 Spec ial I tem s - - - - - - Tr ansfer s 0.2 - (0 .2) - - - In cr ea s e ( dec re a s e ) i n n et a s s ets 3. 5 $ 3. 0 $ 7. 4 $ 8. 8 $ 10 . 9 $ 11.8$ Ac ti vi ti es Ac ti vi t i es Pr imary G o vernment Ta b le 2 Ch anges i n Ne t A s s e t s (i n M i ll ions ) Go v e rnmental Busi ne ss - t y pe To ta l Th e C i t y ’ s t o t a l r e v e n u e s (e x c l u d i n g s p e c i a l i t em s ) i ncr e a s e d b y 2. 8 % ( $ 1 . 1 m i l l i o n ) . T h e t o t a l co s t o f a l l p r o g r a m s a n d s e r v i ces increased by 6.8% ($1.9 mi l l i o n ) . T h e C i t y w a s a g a i n a b l e t o c o v e r t h e y ear ’ s c o s t s in b o t h g o v e r n m e n t a l a c t i v i t i e s a nd b u s i n e s s - t y pe a c t i v i t i e s . O u r analysis below separately co n s i d e r s t h e o p e r a t i o n s o f go v e r n m ent al a n d b u s i n e s s - t y p e a c t i v i t i e s . 26 CI T Y O F B O Z E M A N , M O N T A N A MA N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S ( C O N T I N U E D ) Go v e r n m e n t a l A c t i v i t i e s Re v e n u e s f o r t h e y e a r f r o m g o v e r n m e n t a l a c t i v it i e s i n c r e a s e d m o d e r a t e l y b y . 9 % ( $ . 2 m il l i o n ) , w h i l e t o t a l e x p e n s e s d e c r e a s e d b y 1% ($.2 million). The in c r e a s e i n n e t a s s e t s f o r g o v e r n m e n t a l a c t i v i t i e s w a s $ 3 . 5 m i l l i o n i n 2 0 0 4 . T h i s c o m p a r e s t o a $ 3 m i l l i o n i n c r e a s e i n n e t a s s et s i n 2 0 0 3 . Pr o p e r t y T a x c o l l e c t i o n s i n c r e a s e d s i g n i f i c a n t l y b y $ 1 , 0 7 6 , 1 1 3 , o r 1 3 . 4 % , f r o m $ 8 , 0 2 8 , 8 3 2 l a s t y e a r t o $ 9 , 1 0 4 , 9 4 5 t h i s y e a r . T h i s i s d u e p r i m a r i l y t o an in c r e a s e i n t h e C i t y ’ s t a x a b l e v a l u e d u e t o n e w c o n s t r u c t i o n an d t h e r e a p p r a i s a l c o n d u c t e d b y t h e S t a t e o f M o n t a n a . As s e s s m e n t s a n d I m p a c t F e e s d e c r e a s e d b y $ 2 8 7 , 4 7 5 , o r 7 . 3 6 % , f r o m $ 3 , 9 0 7 , 1 0 1 l a s t y e a r t o $3 , 6 1 9 , 6 2 6 t h i s y e a r . S t r e e t im p a c t f e e s r e v e n u e d e c r e a s e d b y $4 4 4 , 4 1 9 a n d f i r e i m p a c t f e e r e v e n u e s d e c r e a s e d b y $ 7 4 , 3 2 1 d u e t o a l e v e l i n g o f f o f c o n s t r u c t i o n t h a t q u a l i f i e s f o r t h e s e t y p e s of fees. Street maintenance as s e s s m e n t c o l l e c t i o n s i n c r e a s e d b y $ 1 8 9 , 5 3 2 . Fi n e s a n d f o r f e i t u r e s d e c r e a s e d b y $ 1 1 6 , 8 3 0 , o r 9 % , f r o m $ 1 , 3 0 5 , 5 3 6 l a s t y e a r t o $ 1 , 1 8 8 , 70 6 t h i s y e a r d u e t o t h e P o l i c e D e p a r t m e n t b e i n g f o r c e d i n t o reactive tr a f f i c l a w e n f o r c e m e n t i n s t e a d o f p r o a c t i v e e n f o r c e m e n t b e c a u s e o f p e r s o n n e l s h o r t a g es . P o s i t i o n v a c a n c i e s i n t h e d e p a r t m e n t were primarily due to officers be i n g c a l l e d u p f o r a c t i v e d u t y t o s e r v e i n t h e I r a q w a r . In t e r e s t o n I n v e s t m e n t s d e c r e a s e d b y $ 7 0 , 2 3 3 , o r 1 7 % , f r o m $ 4 1 3 , 2 1 2 l a s t y e a r t o $ 3 4 2 , 97 9 t h i s y e a r . T h i s d e c r e a s e w a s d u e t o t h e c o n t i n u i n g d e c l i n e in in t e r e s t r a t e s o v e r t h e c o u r s e o f t h e f i s c a l y e a r . I n t e r e s t r a t es o n i n v e s t m e n t i n c o m e a v e r a g e d 1 . 6 % d u r i n g t h e y e a r . Th e c o s t o f a l l go v e r n m e n t a l a c t i v i t i e s t h i s y e a r w a s $ 2 0 . 3 m i l l i o n c o m p a r e d t o $ 2 0 . 5 m i l l i o n l a s t ye a r . H o w e v e r , a s s h o w n i n t h e S t a t e m e n t o f A c t i v i t i e s o n pa g e 3 4 , t h e a m o u n t t h a t o u r t a x p a y e r s u l t i m a t e l y f i n a n c e d fo r t h e s e a c t i v i t i e s t h r o u g h C i t y ta x e s w a s o n l y $ 9 , 1 0 4 , 9 4 5 b e c a u s e some of the cost was paid by th o s e w h o d i r e c t l y b e n e f i t e d f r o m t h e p r o g r a m s ( $ 7 , 9 8 4 , 4 1 9 ) o r b y o t h e r g o v e r n m e n t s a n d o r g a n i z a t i o n s t h a t s u b s i d i z e d c e r t a i n p rograms with operating and ca p i t a l g r a n t s a n d c o n t r i b u t i o n s ( $ 9 1 6 , 2 5 1 ) . O v e r a l l , t h e C i t y ’ s r e v e n u e s f r o m g o v e r n me n t a l a c t i v i t i e s , i n c l u d i n g i n t e r g o v e r n m ental revenues and charges for se r v i c e s i n c r e a s e d s l i g h t l y i n 2 0 0 4 f r o m $ 2 3 . 5 t o $ 2 3 . 7 m i l l i o n . C h a r g e s f o r s e r v i c e s de c r e a s e d , b u t t h i s d e c r e a s e w a s o f f s e t by i n c r e a s e s i n p r o p e r t y t a x e s a n d un r e s t r i c t e d g r a n t s a n d c o n t r i b u t i o n s . 27 CI T Y O F B O ZE M A N , M O N T A NA MA N A GE M ENT ’ S D I S C U S S I O N A ND A N A L YS I S ( C O N T I N UE D ) Ta b l e 3 p r e s e n t s t h e c o s t o f e a c h o f t h e Ci t y ’ s s i x l a r g e s t pr o g r a m s — p o l i c e , f i r e, p u b l i c s e r v i c e , l i b r a r y , p a r k s a n d r e c r ea t i o n— a s well as each program’s net co s t ( t o t a l c o st l e s s r eve n u e s g e n e r ate d by t h e a c t i v i t i e s ) . T h e n e t c o s t s h o w s t he f i n a n c i a l bu r d e n t h a t w a s p l a c e d o n t h e C i t y ’ s taxpayers by each of these fu n c t i o n s . 20 0 4 20 0 3 20 0 4 200 3 Po l ice 4.2 $ 4. 5 $ 2. 7 $ 2. 8 $ Fi re 3.3 2. 7 2. 6 2. 6 Pu bl ic S e rv i c e 3.9 3. 8 2. 0 2. 6 Li brary 2.9 1. 8 2. 5 1. 7 Pa rk s 1.3 1. 2 1. 3 1. 2 Re creati o n 0.9 0. 8 0. 5 0. 4 All O the rs 3. 8 5. 7 (0 .5) - To t als 20 . 3 $ 20 . 5 $ 11 . 1 $ 11 .3 $ of S erv ic e s of S ervic e s Ta b le 3 Go ve r nment al A c ti viti es (in M ill i o n s) Tota l C o st Ne t C ost Bu s i n e s s - t y p e A c t i v i t i e s Re v e n u e s o f t h e C i t y’s b u s i n e s s - t y pe a c t i v i t i e s ( s e e Ta b l e 2 ) i n cr ea s e d b y 5. 6 % ( $ 1 7 . 1 m illi o n i n 2 0 0 4 co mpar e d t o $1 6 . 2 m illion in 2003) and expenses in c r e a s e d b y 29 . 7 % ( $ 9 . 6 mi l l i o n i n 2 0 0 4 co m par e d to $ 7 . 4 m il l i o n i n 2 0 0 3 ) . T he f a c t o r s d r i v i n g t hes e r e s u l t s i n c l u d e : • Th e C i t y ’ s w a t e r s y st e m r eve n u e s h a v e s t e a d i l y i n c r e a s e d o v e r t h e p as t d e ca d e a s a r es u l t o f a n i n c r e a se i n t h e c u s t o mer b a s e and as a result of regular ra t e c h a n g e s . O p e r a t i n g r e v e n u e s f o r t h e y ea r a m ou n t e d t o $ 4 , 3 59 , 2 9 9 . O p e r a t i n g e x p e n s e s t ota l e d $ 3 , 7 0 6 , 0 7 6 . M a j o r projects completed during the yea r i n c l u d e t h e i n s t a l l a t i o n o f a 3 0 - i n c h b y pa s s w a t er l i n e a t S o u r d o u g h r e s e r v oir . O n g o i n g p r o j e c t s i n c l u d e t h e i n s t a l l a t i o n of a cover for the Lyman Cr e e k w a t e r s u p p l y a n d t h e p r e p a r a t i o n o f a w a t e r f a c i l i t i e s p l a n . • Th e C i t y ’ s w as t e w at e r s y st e m r e v e n u e s ha v e s i mil a r l y i n c r e a s e d du e t o a g r o w i n g c u s t o m er ba s e in a d d i t i o n t o i n c r e a s e s a t t r i b u t able to the rate changes th a t w e r e n e c e s s a r y i n o r de r t o r e s t o r e t h e f i n a n c i a l p o s i t i o n o f t h e w a s t e w a t e r f u n d c a u s e d b y r e m e d i a t i o n o f the Solvent Site groundwater co n t a m in a t i o n . O p e r a t i n g re v e n u e s f o r t h e y ea r a m ou nt e d t o $ 3 , 92 9, 0 2 9. I n a d d i t i o n , f e d e r a l gr a n t r e v e n u e s o f $ 1 , 5 8 4 , 5 95 were received through a $5 mi l l i o n E n v i r on m en t a l P r o tec t i o n A g e n c y w a s t e w a t e r f a c i l i t i e s r e no v a t i o n g r a nt d e s c r i b e d on p a g e 10 of t h e L e t t e r o f T r a n s m ittal. The City’s $4.1 mi l l i o n l o c a l m a t c h f o r t h e g r a n t w i l l b e me t u s i n g f u n d r e s o u r c e s ac c u mula t e d t hro u g h r a t e a d j u s t m e n t s i n s t e a d o f b o r r o w i n g . • Wa s t e w at e r op e r a t i n g e x p e n s e s t o t a l e d $ 3 , 3 5 3 , 5 6 7 . M a j o r pr o j e c t s co mple t e d d u r i n g t h e yea r i n c l u d e t h e c o m pletion of Phase 1 of the In f l o w / I n f i l t r at i o n S e w e r R e h a b i l i t a t i o n p r o j e c t u n d e r t h e E P A w as t e w a t e r f a c i l i t i e s c o n s t r u c t i o n g r a n t . O n g o i n g p r oj e c t s i n c l ude other EPA grant- 28 CI T Y O F B O Z E M A N , M O N T A N A MA N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S ( C O N T I N U E D ) fu n d e d p r o j e c t s , i n c l u d i n g r e p l a c e m e n t o f t h e N o r t h R o u s e s e w e r a nd e x p a n s i o n / m o d i f i c a t i o n s t o t h e w a s t e w a t e r p l a n t . P r e p a r a t i on of a wastewater fa c i l i t i e s p l a n i s a l s o u n d e r w a y . • Th e C i t y ’ s s o l i d w a s t e c o l l e c t i o n a n d d i s p o s a l s y s t e m r e v e n u e s h a ve i n c r e a s e d s t e a d i l y o v e r t h e p a s t d e c a d e d u e t o a n i n c r e a s i n g c u s t o m e r b a s e a n d Bo z e m a n ’ s e c o n o m i c g r o w t h . T h e s e fa c t o r s h a v e r e s u l t e d i n a l a r g e in c r e a s e i n r e c e n t y e a r s i n la n d f i l l g a t e f e e r e v e n u e s . O p e rating revenues for the ye a r a m o u n t e d t o $ 3 , 7 9 5 , 0 6 8 . O p e r a t i n g e xp e n s e s t o t a l e d $ 2 , 4 6 2 , 2 9 1 . R e v e n u e s i n e x c e s s o f o p e r a t i n g c o s t s w i l l b e u s e d t o m e e t the City’s obligation wi t h r e s p e c t t o t h e E P A r e q u i r e m e n t s f o r l a n d f i l l c l o s u r e a n d p o s t- c l o s u r e c a r e . A n y a d d i t i o n a l e x c e s s r e v e n u e s w i l l b e u s e d t o provide an alternative to t h e e x i s t i n g l a n d f i l l o p e r a t i o n , w h i c h w i l l b e r e a c h i ng f u l l c a p a c i t y a n d c l o s i n g i n t h e n e a r f u t u r e . TH E C I T Y ’ S F U N D S As t h e C i t y c o m p l e t e d t h e y e a r , i t s g o v e r n m e n t a l f u n d s ( a s pr e s e n t e d i n t h e b a l a n c e s h e e t on p a g e s 3 5 a n d 3 6 ) r e p o r t e d a combined fund balance of $2 7 , 0 6 0 , 1 0 0 . I n c l u d e d i n t h i s y e a r ’ s t o t a l ch a n g e i n f u n d b a l a n c e i s a p o s i t i v e G e n e r a l F u n d b a l a n c e of $ 3 , 3 4 5 , 5 4 1 . T h e p r i m a ry reasons for the General Fu n d ’ s s u r p l u s a r e h i g h l i g h t e d b e l o w . I n a d d i t i o n , t h e s e o t h e r c h a n g e s i n f u n d b a l a n c e s s h o u l d b e n o t e d : • Ca p i t a l O u t l a y e x p e n d i t u r e s i n c r e a s e d b y $ 1 , 2 8 8 , 9 2 0 , o r 36 . 5 % , f r o m $ 3 , 5 3 6 , 0 4 5 l a s t y e a r t o $ 4 , 8 2 4 , 9 6 5 t h i s y e a r . T h i s i n c r e a s e w a s d u e p r i m arily to $1 , 6 8 6 , 0 0 0 i n s p e n d i n g o n s o i l c o n t a m i n a t i o n re m e d i a t i o n a n d a r c h i t e c t u r a l c o s t s a s s o c i a t e d w i t h t h e p l a n n e d n e w P u b l i c L i b r a r y . • De b t S e r v i c e e x p e n d i t u r e s i n c r e a s e d b y $ 5 9 3 , 0 7 6 , o r 3 9 % , f r o m $ 1 , 5 2 2 , 3 6 2 l a s t y ea r t o $ 2 , 1 1 5 , 4 3 8 t h i s y e a r . T h i s i n c r e a s e w a s d u e t o t h e C ity spending ac c u m u l a t e d S p e c i a l I m p r o v e m e n t D i s t r i c t ( S I D ) R e v o l v i n g F u n d r e s ou r c e s t o c a l l a s m a n y S I D b o n d s a s e a r l y a s p o s s i b l e i n o r d e r to avoid future interest co s t s . Ge n e r a l f u n d b u d g e t a r y h i g h l i g h t s Th e C i t y ’ s g e n e r a l f u n d b a l a n c e i n c r e a s e d s l i g h t l y f r o m $ 3 , 0 8 3 , 83 2 i n f i s c a l y e a r 2 0 0 3 t o 3 , 3 4 5 , 5 4 1 th i s y e a r . T h i s i n c r e a s e r ef l e c t s a h e a l t h y r e s p o n s e t o t h e si g n i f i c a n t d e c r e a s e i n t h e p r i o r y e a r , w h e n t h e g e n e r a l f u n d b a l a nc e d e c r e a s e d b y $ 5 1 6 , 5 2 7 . W h il e a d e c l i n e i n f u n d b a l a n c e i s not usually looked upon fa v o r a b l y , t h e c a u s e o f t h e d e c l i n e i s v i t a l l y i m p o r t a n t . T h e C i t y ' s f i n a n c i a l p o l i c y p r e c l u d e s r e l y i n g o n r e s e r v e s f o r o n - g o i ng o p e r a t i o n s . H o w e v e r , t h e u s e o f re s e r v e s f o r o n e - t i m e e x t r a o r d i n a r y c o s t s i s c e r t a i n l y p e r m i s s i b l e . T h e d e c l i n e t h e Ci t y e x p e r i e n c e d i n f i s c a l y e a r 2 0 0 3 w a s a tt r i b u t a b l e t o s o m e o n e - t i m e c o s t s , su c h a s $ 1 . 3 m i l l i o n s p e n t t o p u r c h a s e t h e S t o r y M a n s i o n i n o r d e r t o p r e s e r v e i t a s a h i s t o r i c a l l a n d m a r k f o r t h e c o m m u n i t y . Th e i n c r e a s e i n t h e g e n e r a l f u n d b a l a n c e t h i s y e a r w a s a t t r i b u t a b le , i n l a r g e p a r t , t o r e v e n u e s a s s o c i a t e d w i t h t h e g r o w i n g c o m munity. The City's mill va l u e i n c r e a s e d 8 . 5 % l a s t y e a r t o $ 4 6 , 0 5 5 . T h e m i l l v a l u e i n c r ea s e d t o $ 4 9 , 5 5 9 t h i s y e a r , a 7 . 6 % i n c r e a s e o v e r l a s t y e a r . 29 CI T Y O F B O ZE M A N , M O N T A NA MA N A GE M ENT ’ S D I S C U S S I O N A ND A N A L YS I S ( C O N T I N UE D ) Al s o c o n t r i b u t i n g to t h e in c r e a s e d G e n e r a l F u n d b a l a nc e i s th e u t i l i z a t i o n o f c o n s e r va t i v e bu d g e t a r y pr a c t i c e s . C o n s e r va t i v e , yet realistic, revenue estimates, co mbin e d w i t h d e p a r t m ents o p e r a t i n g wi t h i n t h e i r or i g i n a l b u d g e t s, na t u r a l l y ha s a f a v o r a b l e e f f e c t o n t h e b o t t o m li n e . Maintaining adequate reserves has several i n t ern al an d ex te rn al b e n efi ts. I n ternall y , r eserv es c an p rov id e f o r ca sh fl o w n eed s u n t il pr o p er ty t a x revenu es ar e r eceiv ed , r educing or eliminating the need fo r ca s h fl o w b o r r o wi n g ; p rov i d e f u n ds t o l e ve ra ge s t a t e or f e de ra l g rants ; a n d prov i d e f o r t h e u n e x pec t e d. E xte r nally, r e s e rves t e n d t o be viewed favorably by in v estors, r ati ng a g en cies , an d lo cal b anks wi t h wh i c h w e d o b u si n e s s , t h u s b ene f i t i ng ra t i n g a n d th e p o t e n t i a l n eed fo r l i n e s of c r e d i t . The City’s general fund ba l a n c e wa s t h e p rim a r y f o cu s d u ri n g t h e b o n d r a t i n g fo r t h e 2 00 3 re fi n ancin g o f t h e Ci t y ’s G e n era l Ob l i g ati o n T r a n sp o rta t i o n B on ds a n d the remaining bonds issued in 2 0 0 3 f o r t h e n e w L i b rar y . T h e b o n d a n a l y st l o o k ed fa v o r a b ly o n th e a mou n t an d t r e n d o f th e Ci t y 's Ge n era l F u n d b a l a n c e i n d et e r m i n ing the City’s bond rating. Th e C i t y of B o z e m a n h a s a h i s t o ry of very st a b l e G e n era l F u n d b ala n c e s . CA P I T AL A SS E T A N D DE B T A DMINI S T RA T IO N Ca p i t a l A s s e t s As s h o w n i n T a b l e 4 , a t t h e e n d o f 2 0 0 4 t h e C i t y h a d $ 4 3 . 6 mil l i o n i n v e s t e d i n a b r o a d r a n g e o f c a p i t a l a s s e t s, i n c l u d i n g p o l i c e and fire equipment, buildings, pa r k f a c i l i t i e s , r o a d s , a n d wa t e r a n d s e w e r l i n e s . T h i s a m ou n t r e p r e s e n t s a n e t i ncr ea s e ( i n c l u d i n g a d d it i o n s a n d d e d u c t ion s ) of r o u g h l y $6.8 million, or 18.5%, ov e r l a s t y ea r . 20 0 4 20 0 3 20 0 4 20 0 3 20 0 4 2003 Land 6. 5 $ 5. 3 $ 4. 8 $ 1. 7 $ 11.3 $ 7.0$ Wa ter R ights - - 0. 3 0. 3 0.3 0.3 Bu i l di n g s 7.6 6. 7 7. 0 6. 0 14.6 12.7 Othe r S truct u res a n d I mpr ovement s 0.9 0. 6 27 . 9 26 . 5 28.8 27.1 Ma c hin e ry & E qu i p m ent 5.7 5. 1 3. 9 3. 6 9.6 8.7 Property u n d e r C a p i t a l L eas e 0.2 - 0. 4 0. 4 0.6 0.4 Ve hicle 1.9 1. 6 1. 7 1. 6 3.6 3.2 Infr a s t ru cture 16.2 15 . 4 13 .3 11 . 5 29.5 26.9 Subtotal 39 . 0 34 . 7 59 .3 51 . 6 98.3 86.3 Acc u mulate d D epr eciati o n (21 . 7 ) (19 . 6 ) - (29 . 9 ) (21.7) (49.5) Tota l C apita l A ssets 17.3 $ 15 . 1 $ 59 .3 $ 21 . 7 $ 76.6 $ 36.8$ Totals Ta b le 4 Capi ta l A ss e ts a t Y e ar-e nd (in M il l i o n s) Go vernment a l Ac t i vi ti es Busi ne s s - t ype Ac ti vi ti es 30 CI T Y O F B O Z E M A N , M O N T A N A MA N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S ( C O N T I N U E D ) Th i s y e a r ’ s m a j o r a d d i t i o n s i n c l u d e d : EP A W a s t e w a t e r G r a n t C o n s t r u c t i o n – f a c i l i t i e s a n d t r a n s m i s s i o n l i n e i n f r a s t r u c t u r e : $ 2,881,081 So l i d W a s t e T r a n s f e r S t a t i o n s i t e l a n d a n d r e l a t e d i m p r o v e m e n t s : 3,066,552 Ne w L i b r a r y f a c i l i t y – l a n d r e m e d i a t i o n a n d b u i l d i n g d e s i g n : 1,685,930 30 - i n c h w a t e r b y p a s s l i n e a t S o u r d o u g h R e s e r v o i r : 768,626 Ne w F i r e T r u c k a n d o t h e r n e w F i r e e q u i p m e n t : 406,196 $ 8,808,385 Th e C i t y ’ s f i s c a l y e a r 2 0 0 5 c a p i t a l b u d g e t c a l l s f o r t h e C i t y t o s p e n d r o u g h l y $ 8 m i l l i o n f o r c a p i t a l p r o j e c t s . S o m e o f t h e m a jo r p r o j e c t s i n c l u d e : r e p l a c e m e n t of t h e N o r t h R o u s e s e w e r l i n e ( $ 3 , 1 0 0 , 0 0 0 ) ; c o n s t r u c t i o n o f a S o li d W a s t e T r a n s f e r S t a t i o n ( a t l e a s t $ 3 , 0 0 0 , 0 0 0 ) ; a n d t h e r e p l a ce m e n t o f t h e C i t y ’ s w a s t e w a t e r fl u s h e r / v a c u u m t r u c k ( $ 2 6 6 , 0 7 4 ) M o r e d e ta i l e d i n f o r m a t i o n a b o u t t h e C i t y ’ s c a p i t a l as s e t s i s p r e s e n t e d i n N o t e 7 t o t h e f i n a n c ia l s t a t e m e n t s . De b t At y e a r - e n d , t h e C i t y h a d $ 1 6 . 6 m i l l i o n i n bo n d s a n d n o t e s o u t s t a n d i n g v e r s u s $ 1 8 . 6 m il l i o n l a s t y e a r – a d e c r e a s e o f 1 0 . 7 % – a s shown in Table 5 on the next pa g e . Ge n e r a l o b l i g a t i o n d e b t c o n s i s ts o f $ 3 , 3 2 5 , 0 0 0 i n 1 9 9 5 T r a n s p o r t a t i o n P r o j e c t b o n d s , $ 3 , 4 8 0 , 0 0 0 i n c r o s s o v e r r e f u n d i n g b o n d s t o retire the 1995 issue in Ja n u a r y o f 2 0 0 5 , a n d $ 3 , 7 6 0, 0 0 0 i n L i b r a r y P r o j e c t b o n d s . T h e r e w a s n o n e w s p e c i a l i m p r o v e m e n t d e b t i s s u e d d u r i n g t h e f i s c a l y ear. Th e C i t y ’ s g e n e r a l o b l i g a t i o n b o n d s c o n t i n u e t o m a i n t a i n a r a t i n g of A 2 f r o m M o o d y ’ s I n v e s t o r S e r v i c e . A c c o r d i n g t o M o o d y ’ s , t he A2 rating reflects the Ci t y ' s s t a b l e t a x b a s e a n d l o c a l e c o n o m y , he a l t h y f i n a n c i a l o p e r a t i o n s , a n d m a n a g e a b l e d e b t b u r d e n . M o o d y ' s e x p e c t s t h e C i t y t o maintain a healthy financial po s i t i o n , g i v e n t h e C i t y ' s h i s t o r i c a l p e r f o r ma n c e a n d m a n a g e m e n t ' s c o m m i t m e n t t o m a i n ta i n i n g s a t i s f a c t o r y r e s e r v e l e v e l s . C i t y officials expect to maintain cu r r e n t y e a r r e s e r v e s a t a l e v e l w e l l a b o v e t h e C i t y ' s r e s e r v e m i ni m u m o f 2 0 % o f e x p e n d i t u r e s . P r o p e r t y t a x e s a r e t h e C i t y ' s p r imary general revenue source (3 8 % ) , f o l l o w e d b y c h a r g e s f o r s e r v i c e s ( 3 3 . 5 % ) , i n t e r g o v e r n m e n t a l ( 2 2 % ) , a n d s p e c i a l a s s e s s m e n t s ( 5 % ) . M o o d y ' s e x p e c t s t h e C ity to maintain a moderate de b t p o s i t i o n g i v e n c u r r e n t m o d e r a t e d e b t b u r d e n s , a b o v e a v e r a g e p r i n c i p a l p a y o u t , an d e x p e c t e d t a x b a s e g r o w t h . M o r e d e t a i l e d information about the City’s lo n g - t e r m l i a b i l i t i e s i s p r e s e n t e d i n N o te 1 0 t o t h e f i n a n c i a l s t a t e m e n t s . 31 CI T Y O F B O ZE M A N , M O N T A NA MA N A GE M ENT ’ S D I S C U S S I O N A ND A N A L YS I S ( C O N T I N UE D ) 20 0 4 20 0 3 20 04 20 0 3 20 0 4 2003 Genera l o b li gation bo nd s ( bac k e d b y th e Cit y ) 10 . 6 $ 11 . 0 $ - $ - $ 10.6 $ 11.0$ Specia l I mpr ovement District B o nd s Payabl e 4.1 5. 2 - - 4.1 5.2 Inte rca p N ote P ayabl e 0.3 0. 4 - - 0.3 0.4 Water R e venu e B o nd s (b acked b y s p ecific f e e re ve nues) - - 1. 6 2. 0 1.6 2.0 To t als 15 . 0 $ 16 .6 $ 1. 6 $ 2. 0 $ 16.6 $ 18.6$ Totals Ta b le 5 Ou ts t a nd i ng D e bt , at Y e ar-end (in M il l i o n s) Gover n mental Ac ti viti es Busi n e s s - t y pe Acti vi ti es EC O N O M IC F A C T OR S A N D N E X T Y E A R’S B UD G E T S A ND R A TE S Th e C i t y ’ s e l e c t e d an d a p p o i n t e d o f f i c i al s c o n s i d e r ed many f ac t o r s w h e n se t t i ng t h e f i s c a l yea r 2 0 0 3 - 20 0 4 b u d g e t , t a x r a t e s , an d fees that will be charged for th e b u s i n e s s - t y p e a c t i v i t i e s . S o m e o f t h e s e f a c t o r s i n c l u d e s : ca p i t a l i m pr o v e m e n t s i d e n t i f i e d i n th e C i t y ’ s C a p i t a l I mpr o v e m e nt Program; inflation rates, the Ci t y ’ s c o l l e c t i v e b a r g a i n i n g u n i t s , t he l o c a l e c o n o my, an d t h e c i t i z e n ’ s a b i l i t y t o pa y . In f l a t i o n r a t e s c o n t i n u e t o re m ain a t re l a t i v e l y l o w l e v e l s . In f l a t i o n i n c a l e n d a r y e a r 2 0 0 4 i s p r o j e c t e d t o b e 1 . 3 % , a n d a l l in d i c a t i o n s a r e t h a t i n f l a t i o n r a t e s w i l l fo l l o w a l o w - to - m od e r a t e t ren d o v e r t h e f i v e - y ea r h o r i z o n . W h i l e ma n y a r g u e t h a t t h e l o c a l co s t o f l i v i n g i n t h e C i t y e x c e e d s th a t o f the national economy, no re l i a b l e d a t a i s a v a i l a b l e f o r t h e i m m e d i a t e a r e a . C o n s e q u e n t l y , w h e n e v a l u a t i n g t h e c o s t o f li v i n g , t h e C i t y u t i l i z e s t h e n a t io n a l C I P i n dexes. Th e C i t y a d o p t e d i t s f i r s t f ull y-f u n d e d Ca p i t a l I m pr o v e m e n t s P r o g r am a p p r o x i m a t e l y s e v e n yea r s a g o . I n o r d e r t o f i n a n c e t h e n e eded improvements, the City en a c t e d a n u mber o f “ h i g h e r t h a n n o r ma l ” r ate ch a n g e s t o p r o v i de t h e f u n d i n g f o r t h e s e i m pr o v e m e n t s . T h e s e r a t e ch a n g e s a r e n ow contained in the current ra t e s t r u c t u r e s a n d o n l y m o d e s t r a t e c h a ng e s a r e a n t i c ip a t e d i n th e f o r e s e e ab l e f u t u r e , i n o r d e r to k e e p p a c e w i t h r i s i n g c o s t s . 32 CI T Y O F B O Z E M A N , M O N T A N A MA N A G E M E N T ’ S D I S C U S S I O N A N D A N A L Y S I S ( C O N T I N U E D ) CO N T A C T I N G T H E C I T Y ’ S F I N A N C I A L M A N A G E M E N T Th i s f i n a n c i a l r e p o r t i s d e s i g n e d t o p r o v i d e o u r c i t i z e n s , t a x p a y e r s , c u s t o m e r s , a n d i n v e s t o r s a n d c r e d i t o r s w i t h a g e n e r a l o v e rv i e w o f t h e C i t y ’ s f i n a n c e s a n d t o sh o w t h e C i t y ’ s a c c o u n t a b i l i t y f o r t h e m o n e y i t r e c e i v e s . I f y o u h a ve q u e s t i o n s a b o u t t h i s r e p o r t or n e e d a d d i t i o n a l i n f o r m a t i on, contact the City’s Finance Di r e c t o r o r C o n t r o l l e r , a t t h e C i t y o f B o z e m a n , 4 1 1 E a s t M a i n S t r e e t , B o z e m a n , M o n t a n a 5 9 7 1 5 . B. B A S I C F I N A N C I A L S T A T E M E N T S GO V E R N M E N T - W I D E F I N A N C I A L S T A T E M E N T S 33 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . ST A T E M E N T O F N E T A S S E T S JU N E 3 0 , 2 0 04 Gove rnmental Busi ne ss - t ype Acti v it i e s Act i v it i e s Total AS SE TS Cash a n d i nvestments 12 , 4 5 4 ,4 0 4 $ 11,4 3 6 , 2 77 $ 23,890,681 $ Restri ct ed c a s h a n d i nvestments 13 , 6 6 8 ,5 3 4 13,3 5 7 , 3 48 27,025,882 Rec e i v abl e s , n et 6,5 0 1 , 7 7 0 1, 8 7 3 , 4 68 8,375,238 No t e s r e c e i v abl e 1,2 6 2 , 5 4 3 - 1,262,543 Prep a i d e x pe n ses 58 3 , 5 6 0 17 5 , 1 19 758,679 Deferr e d c h ar g es 27,62 4 - 27,624 Ca p it a l a s s e t s Nondep r e c i ab l e l and 6, 5 0 0 ,4 7 6 4, 7 6 8 , 0 18 11,268,494 Other c a p i tal a s sets, n et o f d e p r e c iation 10 , 7 7 6 ,1 3 2 21,5 9 2 , 8 21 32,368,953 Tota l c a p it a l a s se t s 17,276,6 08 26,3 6 0 , 8 39 43,637,447 T otal a ssets 51 , 7 7 5 ,0 4 3 $ 53,2 0 3 , 0 51 $ 10 4 ,978,094 $ LIABIL IT IES Acc o u nts p a y abl e a n d ac c r u ed e x pe n ses 1, 3 4 7 , 6 2 9 $ 97 0 , 6 88 $ 2,318,317 $ Fidu ci ary f und pa y abl e 4,4 6 0 - 4,460 Deferr e d r e v enue 46 4 ,1 1 6 - 464,116 Compen sated a bsence s p a y abl e 77 6 ,0 0 0 26 0 , 6 05 1,036,605 Curr e n t p o r t i o n o f c a p i tal l e a s es 13 , 2 3 0 12 0 , 5 88 133,818 Curr e n t p o r t ion o f g enera l o b l igat ion bo n ds 3, 7 2 0 ,0 0 0 43 1 , 6 66 4,151,666 Curr e n t p o r t ion o f s pec ial a s sessmen t d e b t 25 ,0 0 0 - 25,000 Curr e n t p o r t ion o f n otes p a y able 72,76 9 - 72,769 Long-te r m l i a b i l i t i e s , d u e i n m ore t h an o ne y ear Compen sated a b s ence s 48 1 ,7 6 6 11 5 , 6 59 597,425 Ca p i t a l l e a s es 110,8 47 90 , 38 5 201,232 So lv en t s i t e r e m ediat i o n l i ab il i t y - 43 5 , 0 00 435,000 Clos ure a n d p o s t- clos ure c are c o s ts - 1, 9 2 1 , 3 80 1,921,380 Bo n ds a n d notes 11 , 6 0 0 ,4 2 8 1, 1 5 0 , 6 33 12,751,061 T ota l l iab il i t i e s 18,616,2 45 $ 5, 4 9 6 , 6 04 $ 24,112,849 $ NE T A SS E T S In vest e d i n ca p it a l as s e t s , net o f r e l a t e d d e b t 5,197,1 17 $ 25,1 7 4 , 3 52 $ 30,371,469 $ Restri ct ed f or i mpa ct c a p i tal p r o j ects 10 , 0 7 0 ,0 6 4 12,4 5 0 , 6 58 22,520,722 Restri ct ed f or d e b t s erv ice (19 8 ,4 0 5 ) 90 6 , 6 90 708,285 Restri c t e d f or p a r k in g ca p i tal p r o j e c t s 23 1 ,8 7 5 - 231,875 Restri c t e d f or c e m eter y c a re 51 2 , 1 8 6 - 512,186 Unrestri ct ed 17 , 3 4 5 ,9 6 1 9, 1 7 4 , 7 47 26,520,708 Total n et a s sets 33 , 1 5 8 ,7 9 8 $ 47,7 0 6 , 4 47 $ 80,865,245 $ 34 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . ST A T E M E N T O F A C T I V I T I E S Ye a r E n d e d J u n e 3 0 , 20 0 4 Op e r at i n g Cap it a l Char g es f or Gra nts a n d Gra n ts a n d Gov er n men ta l Business-type Ex penses Se r vice s Co ntributi o ns Co ntributi ons Act i v it i e s ActivitiesTotal Prim ary G o ve rnment : Go vern mental a c t i v it ie s : Genera l g overn ment 4,40 4 , 4 2 1 $ 79 3, 5 2 9 $ - $ - $ (3 , 6 10 , 8 9 2 ) $ (3,610,892)$ Pu bl ic s afety 8,07 8 , 1 2 0 2, 3 9 0, 1 7 9 345 , 4 1 0 37 , 5 3 8 (5 , 3 04 , 9 9 3 ) (5,304,993) Pu bl ic s ervice 3,0 9 6 , 2 7 3 3, 9 3 4, 8 0 1 - - 83 8 , 5 2 8 838,528 Pu bl ic w elfar e 4,0 1 7 , 6 5 4 86 5, 9 1 0 53 3 , 3 0 3 - (2 , 6 18 , 4 4 1 ) (2,618,441) Other 23 , 2 5 5 - - - (23 , 2 5 5 ) (23,255) In tere s t a n d f iscal f ee s 66 7 , 1 1 8 - - - (6 67 , 1 1 8 ) (667,118) Tota l g overn mental a c t i v it i e s 20, 2 8 6 , 8 4 1 7, 9 8 4, 4 1 9 878 , 7 1 3 37 , 5 38 (1 1 , 3 86 , 1 7 1 ) (11,386,171) Busi n ess - ty pe a c t i v it ie s : Wa t er 3,7 8 2 , 7 2 6 5, 8 4 2, 1 2 2 34 , 6 1 1 - 2,094,007 2,094,007 Wa s te w ater 3,3 5 3 , 5 6 7 5, 7 6 5, 5 9 4 - 1,58 5 , 5 44 3,997,571 3,997,571 Solid w aste 2,4 6 2 , 2 9 1 3, 8 8 4, 7 2 3 78 5 - 1,423,217 1,423,217 Tota l b u siness-type a c t i v it i e s 9,5 9 8 , 5 8 4 15 , 4 9 2, 4 3 9 35 , 3 9 6 1,58 5 , 5 44 7,514,795 7,514,795 Total p r i mar y g overn ment 29 ,8 8 5 , 4 2 5 $ 23 , 4 7 6, 8 5 8 $ 914 , 1 0 9 $ 1,62 3 , 0 82 $ (1 1 , 3 86 , 1 7 1 ) 7,514,795 (3,871,376) Gene ral r eve nu e s: Pr o p e r t y t axes 9,1 04 , 9 4 5 - 9,104,945 Interg ov er n mental s hared r e v enue 3, 4 48 , 7 8 9 - 3,448,789 Gran ts 8 78 , 7 0 0 - 878,700 In v e st ment e arni ng s 344,013 - 344,013 Misce l laneou s 979 , 8 2 0 - 979,820 Tr a n sfers 150 , 0 0 0 (150,000) - Total g enera l r e v enues 14 , 9 06 , 2 6 7 (150,000) 14,756,267 Chan ge i n n et a ssets 3, 5 20 , 0 9 6 7,364,795 10,884,891 Net a s sets, b e g inning o f t he y ea r 29 , 6 69 , 1 6 8 40 , 3 4 1 , 652 70,010,820 Pr i or p e r i od a d j ustments (30 , 4 6 6 ) - (30,466) Net a s sets, e n d o f the y ear 33 , 1 58 , 7 9 8 $ 47 , 7 0 6 , 447 $ 80,865,245$ Fu nc tions / Progr am s Ne t ( E x pen se) R evenue and Changes in Net Assets Pr o g ra m R evenues FU N D F I N A N C I A L S T A T E M E N T S GO V E R N M E N T A L F U N D F I N A N C I A L S T A T E M E N T S MA J O R G O V E R N M E N T A L F U N D S Ge n e r a l F u n d – t h i s f u n d a c c o u n t s f o r t h e f i n a n c i a l o p e r a t i o n s o f t h e C i t y w h ic h a r e n o t a c c o u n t e d f o r i n a n y o t h e r f u n d . P r i n c i p a l s o u r c e s of revenue are pr o p e r t y t a x e s , s t a t e a n d l o c a l s h a r e d r e v e n u e s , l i c e n s e s a n d p e rm i t s , a n d c h a r g e s f o r s e r v i c e s p r o v i d e d t o o t h e r f u n d s . P r i n c ip a l e x p e n d i t u r e s i n t h e g e n e r a l fu n d a r e m a d e f o r p o l i c e a n d f i r e p r o t e c t i on , p u b l i c w o r k s , a n d g e n e r a l g o v e r n m e n t . Im p a c t F e e s S p e c i a l R e v e n u e F u n d – o n J a n u a r y 2 2 , 1 9 9 6 , t h e C i t y C o m m i s s i o n a d o p t e d f i r e , s t r e e t , w a t e r , a n d w a s t e i m p a c t f e e s in Ordinance Number 1414. th i s f u n d a c c o u n t s f o r t h e c o l l e c t i o n a n d e x p e n d i t u r e s a s s o ci a t e d w i t h t h e f i r e a n d s t r e e t i m p a c t f e e s . Co m m u n i t y D e v e l o p m e n t L o a n F u n d – A c c o u n t s f o r r e v e n u e s r e c e i v e d a n d e x pe n d e d r e l a t i v e t o l o a n s m a d e i n a c c o rd a n c e w i t h t h e C o m m u n i t y D e v e l o p m e n t Bl o c k G r a n t P r o g r a m . SI D S i n k i n g D e b t S e r v i c e F u n d – A c c o u n t s f o r t h e a c c u m u l a t i o n o f r e s o u r c e s a n d p a y m e n t o f s p ec i a l a s s e s s m e n t b o n d p r i n c i p a l a n d interest related to general im p r o v e m e n t , s i d e w a l k , a n d c u r b c o n s t r u c t i o n p r o j e c t s . 35 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . BA L A N C E S H E E T GO V E R NMENT A L F U N DS Ju n e 3 0 , 2 004 St r e e t a n d F i re Community OtherTotal Ge n era l Impac t De v elop m ent SID GovernmentalGovernmental Fu nd Fe es Lo an F u n d Si nk i ng FundsFunds AS SE TS Cash an d c a sh e q u ivalents 1,9 1 3 , 2 8 0 $ - $ 50 6 , 5 9 6 $ 1, 0 4 2, 5 4 5 $ 8,842,919 $ 12,305,340$ Rec e i vabl e s : Pr o p e r t y t axes 81 2 , 4 9 4 - - - 333,249 1,145,743 Acc r u ed i ntere st 24 9 , 8 8 9 - - - - 249,889 Custom er s , n et 44 1 , 0 6 3 - - - 28,422 469,485 Sp e c i a l a s sessments 2,2 3 3 - - 4, 1 4 3 , 1 3 4 113,972 4,259,339 Other g overn ments 13 9 , 0 2 2 - 3, 9 3 7 - 221,422 364,381 Prep a id e x pe ndit u re s 3,4 3 5 - - - 580,125 583,560 Due f rom o t her C ity f unds 86 1 , 3 3 4 - - - 328,438 1,189,772 No t e s r e c e i v abl e - - 1, 1 4 8 , 7 2 1 - 113,822 1,262,543 Restri c t e d c a sh a n d c a s h e quivale nts - 10,0 7 0 , 0 64 - - 3,598,470 13,668,534 Total a s sets 4,42 2 , 7 5 0 $ 10,0 7 0 , 0 64 $ 1, 6 5 9 ,2 5 4 $ 5, 1 8 5, 6 7 9 $ 14,160,839 $ 35,498,586$ 36 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . BA L A N C E S H E E T GO V E R NMENT A L F U N DS ( C O N T I NU E D ) Ju n e 3 0 , 2 004 Stre e t a nd F i r e Communit y Ot h erTotal Gene ra l Impact Deve lo pment SID GovernmentalGovernmental Fu n d Fe e s Lo an F u n d Si n k i ng Fu n d sFunds LIABIL IT IE S A ND F U ND B ALANC ES Liab ili t i e s : Acc o unts p a yabl e 432,4 5 3 $ 1, 7 9 9 $ - $ - $ 399,155 $ 833,407$ Acc r u ed e m pl oy ee b e n efits p a y abl e 21, 8 4 2 - - - 5,744 27,586 Ma t ure d b o n ds p a y abl e - - - 25 , 0 0 0 395,000 420,000 Ma t ure d i ntere s t p a yabl e - - - 1, 0 8 3 176,605 177,688 Deferred r e v enue 59 1, 2 3 8 - 1,14 8 , 7 21 3, 7 7 1 , 2 46 247,151 5,758,356 Es ch eat p r o per t y p ayabl e 27, 2 1 7 - - - - 27,217 Due t o o the r C i ty f un d s 4,459 - 32 , 7 1 4 29 5 , 7 24 861,335 1,194,232 Tota l l iab il i t i e s 1,0 77 ,2 09 1, 7 9 9 1,18 1 , 4 35 4, 0 9 3 , 0 53 2,084,990 8,438,486 Fu n d b alanc e s: Re se rv e d f o r : Re nt s a n d l e as e s - - - - 580,125 580,125 En do w ment - - - - 512,186 512,186 Pa r k d e velop m en t - - - - 62,519 62,519 De b t s e r v ic e - - - 1, 0 9 2 , 6 26 5,067,819 6,160,445 Unre serv ed 3, 3 4 5, 5 4 1 10 , 06 8 , 2 6 5 47 7 , 8 1 9 - - 13,891,625 Un re serv ed , r e p o r t ed i n n onmaj or Sp e c i a l r e v enue f unds - - - - 3,815,945 3,815,945 Capi tal p r o j ec ts f unds - - - - 2,037,255 2,037,255 Total f und b a lance s 3, 3 4 5, 5 4 1 10 , 06 8 , 2 6 5 47 7 , 8 1 9 1, 0 9 2 , 6 26 12 , 0 7 5 ,849 27,060,100 Tota l l i a b il i ti e s a n d fund b a lance s 4, 4 2 2, 7 5 0 $ 10 , 07 0 , 0 6 4 $ 1,65 9 , 2 54 $ 5, 1 8 5 , 6 79 $ 14 , 1 6 0 ,839 $ 35,498,586$ 37 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . RE C O N C I L I A T I O N O F T HE B A L A N C E S H E E T TO T H E S T A T E M E N T OF N E T A S S ET S - G O V E RN M E N T A L F U N D S As o f J u n e 3 0 , 2 0 0 4 Fu n d b alanc es - total g o ve rnment al f un d s 27,060,100$ Amou nts r epo r t ed f or go ve r n men ta l a cti v i t ie s i n t he s tat em en t of n et a ssets a re di f fer e n t b e c a u se: Ca p i t a l a s se t s u sed i n g overn mental ac t i v it i es a r e not f inancia l r e s o urce s a n d t h er e f ore ar e not r e p o r t e d in t h e g overn mental f unds. Govern mental c a pi tal a ssets: 38,77 9 , 2 9 8 $ Less: a c c umulat ed d e p rec i at ion (21 ,5 6 6 , 9 8 4) 17,212,314 In te rn al s erv ic e f unds a re u sed b y m anagement t o ch ar g e t h e c o s ts o f c ert a i n ac t i v it ie s to i ndi vidu al f unds. The a s s e t s a n d l i ab il i t i e s o f t h e i n te r n al s e r v ic e f unds t h at a r e r e p orte d i n t h e govern mental a c t i v it i e s (16,719) Deferred r e ve nu e i n t he g o ve rn m ent al f u n d s a re r eported o n t he f u l l a ccrua l m ethod in t he e n ti ty -wid e s tat e m en ts . 5,744,343 Bond i s suan ce c o s ts a r e e x pe n sed i n th e g overn mental f unds. T hey a r e d e f err e d ch ar g es f or t h e e n ti t y -wid e s t a t e m en ts a n d a m orti z e d o ver t h e l i fe o f t h e i s s u an ce . Bond i s suan ce c o s ts 33 , 2 6 2 Less: a m or t i z a t i on (5 ,6 38 ) 27,624 Impact f e e c redits d o n o t a ff f e c t c urrent f i na nc ial reso ur ce s a nd t herefore a re n o t reported i n t he g ove rnment al f un d s. (450,103) Capi t a l l e a se o b l ig at i o n s i n t h e g overn mental f unds a r e n ot r e c o r d e d u nde r m od i f ied a c c r u al (124,077) Long-ter m l i a b il i ti e s , i n cl u din g b onds p ayable a r e n ot d ue a n d p a y able i n t h e c u rr e n t p eri o d an d t h er e f or e a r e n ot r e po r t e d i n t h e govern mental f unds. Bo n ds a n d n otes p a y able (15 ,0 3 6 , 9 1 8) Compen sated a b sence s (1 ,2 5 7 , 7 6 6) (16,294,684) Ne t a s s e t s o f g overn mental a c t i v it i e s 33,158,798$ 38 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . ST A T E M E N T O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - G O V E RN M E N T A L FUNDS Fo r t h e Y e a r E n d e d J u n e 3 0, 2 0 04 Stre e t a nd F i r e Communit y OtherTotal Impact De ve lopment SID Go vernmentalGovernmental Gene ral Fee s Loan F u n d Si nk i n g FundsFunds RE VE NU E S Taxes 6,26 9 , 7 1 5 $ - $ - $ - $ 3,005,208 $ 9,274,923$ Sp e c i al a s sessmen ts 96 - - 93 2 , 7 7 1 231,284 1,164,151 Lice n ses a n d p e r m its 28 2 , 0 7 8 - - - 838,786 1,120,864 In terg ov er n men tal 3,81 6 , 7 8 4 - 3, 9 3 8 - 1,423,018 5,243,740 Char g es f or serv ices 1, 59 0 , 8 5 6 1, 9 54 , 7 7 0 - 5, 6 5 7 1,695,325 5,246,608 Fines a n d f orf ei ture s 1,10 6 , 4 5 1 - - - 82,255 1,188,706 In tere st o n i nvestments 27 , 3 8 9 14 1 , 6 3 9 10 , 5 6 4 16 , 0 3 3 147,354 342,979 Loan r e p a y men t - - 16 6 , 6 9 2 - 17,295 183,987 Other 25 0 , 4 7 1 - 19 4 4, 1 2 1 646,910 901,696 To t al r e venues 13 , 34 3 , 8 4 0 2, 0 96 , 4 0 9 181 , 3 8 8 95 8, 5 8 2 8,087,435 24,667,654 EX PEND I T URE S Curr e nt Genera l g overnment 3, 58 6 , 2 3 7 - - - 485,154 4,071,391 Pu bl ic s afety 6, 35 0 , 4 1 8 3, 8 5 4 - - 1,307,149 7,661,421 Pu bl ic s erv ice 41 1 , 4 3 3 32 , 4 4 3 - - 1,671,980 2,115,856 Pu bl ic w elfar e 3,08 3 , 1 3 0 - 59 3 , 3 9 0 - 477,708 4,154,228 Other 27 3 , 7 8 5 - - 7, 2 9 4 54,107 335,186 Capi tal o u tlay 65 2 , 1 9 9 - - - 4,172,766 4,824,965 De b t s e r v ic e Pr i nci pal p a y men ts 56 , 1 2 0 - - 99 7 , 2 0 0 395,000 1,448,320 Intere s t a n d f isca l f ees 23 , 5 1 7 - - 25 0, 5 7 1 393,030 667,118 To t al e x pe n ditures 14 , 43 6 , 8 3 9 36 , 2 9 7 593 , 3 9 0 1, 2 5 5, 0 6 5 8,956,894 25,278,485 Ex ce ss ( d e f iciency) o f r e v enues o ver e x pe n diture s (1, 09 2 , 9 9 9) 2, 0 60 , 1 1 2 (4 12 , 0 0 2 ) (2 9 6,4 8 3 ) (869,459) (610,831) OT HE R F INA NC IN G S OU R C ES ( U SE S ) Tran sfer s i n 2, 10 9 , 4 3 9 - - 28 , 1 5 5 999,923 3,137,517 Tran sfer s o u t (83 9 , 1 7 3) - - (1 0, 7 5 0 ) (2,137,594) (2,987,517) Sale o f f ixed a s sets 84 , 4 4 2 - - - 736,407 820,849 To t al o ther f inancing s ource s ( u ses) 1, 35 4 , 7 0 8 - - 17,4 0 5 (401,264) 970,849 Net c h ange i n fund b alance s 26 1 , 7 0 9 2, 0 6 0 , 1 1 2 (4 1 2 , 0 0 2 ) (2 7 9,0 7 8 ) (1,270,723) 360,018 FUND B A LANCE, b e g inning of y ea r 3, 08 3 , 8 3 2 8, 0 08 , 1 5 3 889 , 8 2 1 1, 3 7 1, 7 0 4 13,346,572 26,700,082 FUND B A LANCE, e n d o f y ear 3, 34 5 , 5 4 1 $ 10 , 0 68 , 2 6 5 $ 477 , 8 1 9 $ 1, 0 9 2, 6 2 6 $ 12,075,849 $ 27,060,100$ 39 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . RE C O N C I L I A T I O N O F T HE S T A T E ME N T O F R E V E N U E S , EX P E N D I T URE S , A N D CH A N GE S I N F U N D B ALA N C E S O F G O V E R NMENT A L F U N DS T O T H E ST A T E M E N T O F A C T I V ITI E S - G O V ER N M E N T A L F U N D S Fo r t h e Y e a r E n d e d J u n e 3 0, 2 0 04 Ne t c h an ge i n f und b ala n ce s - t o t a l g overnmental f unds 360,018$ Amou nts r e p o r t ed f or gover n men ta l a cti v i t i e s i n t h e s t a t em en t of a c t i v it i e s a r e di f fere nt b e c a use: Go vernmental f unds r eport c a p it a l o utl a y s a s e x pendit u res. I n t h e s t a t e m en t o f ac t i v it i e s , h owever, t h e c o st o f t h es e ass e t s i s d eprec i a t e d o v er t h e a s s e t ' s useful l ive s. Ex pe n dit u res for c a p it a l a s s e t s 4,061,020 $ Less: c u rr en t y ear d e p r e ciation (2, 0 9 6, 8 7 4 ) 1,964,146 Bo n d p r o c e e d s pr o v id e c u rr e n t f inancia l r e s ource s in t h e g overn mental funds, b u t i s s u ing d ebt i n cr ea s es l o ng-ter m l iab il i t i e s i n t h e s t a t e m en t o f net a s s e t s. R e p a y men t o f p rin ci p al i s a n e x pe n dit u re i n t h e g overnmental funds, b u t t h is r e p aymen t r educe s l o ng-ter m l i a b il i t ie s i n t h e s t a t e m en t of n et a s se t s . Amor t iza t ion b o n d i ssuance c o s ts (2, 8 1 9 ) Princi p a l p a y men ts 1, 4 6 1, 0 4 2 1,458,223 Some r evenues r eporte d i n t h e s t a t e m en t o f ac t i v it i e s a r e c o ll e c t e d o n a lo ng t erm b asi s, a nd t herefore a re n o t r eporte d a s r eve nu e s i n g o vernmental f u n d s. Prop er ty t a x es (1 6 9,9 7 8 ) No t e s r ec e i v ab le 41 4, 0 0 7 Sp ec i a l a s s ess m en ts (6 7 3,2 0 2 ) Fi n es 77,2 3 4 (351,939) Go vernmental f unds d o n ot r eco rd c o m pen sate d a b s e n ce s li a b il i t y . T he c h an ge in t h e l i a b il i t y i s a c u rren t p eri o d e x pe n se. (115,903) Go ve rnment al f un d s d o n o t r ecord i mpact f e e c r e d i ts. T he c h an ge i n t h ese c r e d i ts du ring t h e y ea r a r e c h ar ged t o t h e s t a t e m en t of a c t i v it i e s . (139,942) In te r n al serv ic e f unds ar e u sed b y m anagement t o c har g e t h e c o s ts o f c e r t a i n ac t i v it i e s t o i n di v idual f unds The n e t r eve nu e ( e xp ense ) o f t he i nternal s e rvic e f u n d s i s r eported i n t he governmental a c t i vit i e s . 345,493 Chan ge in n et a s s e t s o f g overnmental a c t i v it ie s 3,520,096$ PR O P R I E T A R Y F U N D S F I N A N C I A L S T A T E M E N T S EN T E R P R I S E F U N D S Th e s e f u n d s a r e u s e d t o a c c o u n t f o r t h e f i n a n c i n g , a c q u i s i t i o n , o p er a t i o n a n d m a i n t e n a n c e o f w a t e r , s e w e r , a n d s o l i d w a s t e f a c i li t i e s , w h i c h a r e s u p p o r t e d b y us e r c h a r g e s . Wa t e r F u n d - A c c o u n t s f o r t h e C i t y ’ s w a t e r u t i l i t y o p e r a t i o n s . Wa s t e W a t e r F u n d – A c c o u n t s f o r t h e C i t y ’ s s e w e r u t i l i t y o p e r a t i o n s . So l i d W a s t e F u n d – A c c o u n t s f o r t h e C i t y ’ s g a r b a g e s e r v i c e o p e r a t i o n s . 40 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . ST A T E M E N T O F N E T A S S E T S PR O P R I E T A R Y F U N D S Ju n e 3 0 , 2 004 Governmental Activities Wa ste Sol id Internal Water F u n d Water F u n d Wast e F u n d Tota l Service Funds AS S ETS Curr e nt a s sets Cash a n d c a s h e q u ivale n ts 1,2 8 5 , 9 5 1 $ 4, 7 5 7, 6 3 3 $ 5, 3 9 2, 6 9 3 $ 11 , 4 36 , 2 7 7 $ 149,064$ Rec e i vabl e s Custom er s , n et 536,0 3 3 48 5 , 6 7 6 42 8 , 5 1 2 1, 4 5 0 , 2 2 1 12,933 Spec i a l a s sessmen ts - 32 27 2 304 - Ot he r g ove rnment s - 38 6, 9 4 3 - 386 , 9 4 3 - Total c u rr en t a s sets 1, 8 2 1, 9 8 4 5, 6 3 0, 2 8 4 5, 8 2 1, 4 7 7 13 , 2 73 , 7 4 5 161,997 Ot h e r a ss e ts Bo n d i s suan ce c o s ts, net 175 , 1 1 9 - - 17 5 , 1 1 9 - Notes r e ce i vable 36, 0 0 0 - - 36 , 0 0 0 - Restri c t ed c a s h a n d e quivale nts 6,2 1 2 , 6 5 9 7, 1 4 4, 6 8 9 - 13 , 3 57 , 3 4 8 - Total o t her a s sets 6, 4 2 3, 7 7 8 7, 1 4 4, 6 8 9 - 13 , 5 68 , 4 6 7 - Pr o p e rt y, p l ant a n d e q u ipm en t N o n dep r e c iab l e : Land 30 8, 9 0 7 92 9 , 0 7 4 3, 5 3 0 , 0 3 7 4, 7 68 , 0 1 8 - D e p r e c i a b l e: Water r i gh t s 263,494 - - 26 3 , 4 9 4 - Bu ildings 3, 2 7 2, 8 8 8 3, 4 4 9 , 6 4 0 27 9 , 1 8 2 7, 0 0 1 , 7 1 0 - Other s tru ct ures a n d impr o v em en ts 10 , 9 8 4, 3 9 7 14 , 7 4 9, 0 8 8 2, 1 5 5, 3 0 0 27 , 8 88 , 7 8 5 - Mac h in er y a n d e q u ipm en t 957 , 3 7 8 1, 3 4 6 , 3 9 5 1, 6 1 6, 3 5 1 3, 9 20 , 1 2 4 109,564 Pr o pert y u nder c a p it a l l e a s e - - 43 2 , 2 9 0 43 2 , 2 9 0 - Vehicl es 34 2, 0 0 5 60 3 , 6 7 3 71 2 , 6 2 5 1, 6 5 8 , 3 0 3 37,997 Infras tructure 6, 4 4 5, 3 3 7 6, 8 7 3 , 0 4 0 - 13 , 3 1 8 , 3 7 7 - Acc u mulated d epr e c i at ion a nd a m ortiza t ion (13 , 2 9 4, 2 0 2 ) (1 5 , 9 2 5, 3 5 2 ) (3 , 6 7 0,7 0 8 ) (3 2 , 8 90 , 2 6 2 ) (83,267) Net p r o p e rt y, p l ant a n d e q u ipm en t 9,2 8 0,2 0 4 12 , 0 2 5, 5 5 8 5, 0 5 5, 0 7 7 26 , 3 60 , 8 3 9 64,294 Total a s sets 17 , 5 2 5, 9 6 6 $ 24 , 8 0 0, 5 3 1 $ 10 , 8 7 6, 5 5 4 $ 53 , 2 03 , 0 5 1 $ 226,291$ Business - type A cti v it i e s En te r p r i s e F unds 41 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . ST A T E M E N T O F N E T A S S E T S PR O P R I E T A R Y F U N D S ( C O N T I N U E D) Ju n e 3 0 , 2 004 Governmental Activities Wa s te Sol i d Internal Wa t e r F u nd Wa t e r F und Wa s te F und Total Service Funds LIABIL IT IE S Cu rr e n t l i a b i l i t i e s : Acc o u nts p a y abl e 164,0 2 2 $ 75 1 , 6 1 5 $ 55 , 0 5 1 $ 97 0 , 6 8 8 $ 227,931$ Acc r u ed e m pl oy ee b enefits pa y abl e 121,5 4 4 60 , 4 6 6 78 , 5 9 5 26 0 , 6 0 5 15,079 Capit a l le a s e o b li g at i on, c u rr e n t p ort i o n - - 12 0 , 5 8 8 12 0 , 5 8 8 - Bo n ds, n otes, a n d loans pa y abl e 431,6 6 6 - - 431 , 6 6 6 - Tota l c u rr e n t l i a b il i t i e s 717 ,2 32 81 2, 0 8 1 25 4, 2 3 4 1, 7 83 , 5 4 7 243,010 No ncurr e n t l i a b il i t i es Clos ure a n d p o st-closure c a re c o s ts - - 1, 9 2 1 , 3 8 0 1, 9 21 , 3 8 0 - Revenue b o n ds d u e a fter o n e y ea r 1, 1 5 0, 6 3 3 - - 1, 1 5 0 , 6 3 3 - Acc r u ed e m pl oy ee b enefits pa y abl e 54, 6 0 7 27 , 1 6 6 33 , 8 8 6 11 5 , 6 5 9 - Capit a l l e a s e ob li g at i ons - - 90 , 3 8 5 90 , 3 8 5 - Solv en t s i t e r e m ediat io n l i a b il i t y - 43 5, 0 0 0 - 435 , 0 0 0 - Tota l n oncurr e n t l i a b il i ti e s 1,2 05 ,2 40 46 2, 1 6 6 2, 0 4 5, 6 5 1 3, 7 13 , 0 5 7 - Tota l l i a b i l i t i e s 1,9 22 ,4 72 1, 2 7 4, 2 4 7 2, 2 9 9, 8 8 5 5, 4 96 , 6 0 4 243,010 NET A SSETS In vest e d i n c a p i t a l a s se t s , n et o f r e l ated d e b t 8, 3 0 4, 6 9 0 12 , 0 2 5 , 5 5 8 4, 8 4 4, 1 0 4 25 , 1 74 , 3 5 2 64,294 Restri ct ed f or impa c t c a p i tal p r o j ects 5, 3 0 5, 9 6 9 7, 1 4 4 , 6 8 9 - 12 , 4 5 0 , 6 5 8 - Restri ct ed f or de b t s erv ice 906,6 9 0 - - 90 6 , 6 9 0 - Unre s trict ed 1, 0 8 6, 1 4 5 4, 3 5 6, 0 3 7 3, 7 3 2, 5 6 5 9, 1 74 , 7 4 7 (81,013) Total n et as sets 15 , 6 0 3, 4 9 4 23 , 5 2 6, 2 8 4 8, 5 7 6, 6 6 9 47 , 7 06 , 4 4 7 (16,719) Tota l l i a b i l i t i e s a n d f und e q uity 17,525,966 $ 24 , 8 0 0, 5 3 1 $ 10 , 8 7 6, 5 5 4 $ 53 , 2 03 , 0 5 1 $ 226,291$ En t e r pri s e F u nd s Busi ness - ty pe A cti v it i e s 42 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . ST A T E M E N T O F R E V E NU E S , E X P ENS E S A N D C H A N G ES I N F U N D NE T A S S E T S - P R O P R I E T A R Y F U N D S Fo r t h e Y e a r E n d e d J u n e 3 0, 2 0 04 Governmental Activities Wa s t e Sol i d Internal Water F u nd Wate r F u n d Wast e F u n d TotalsService Funds OP ER A TIN G R E V E N U ES - Char g es f or serv ices 4, 3 5 9, 2 9 9 $ 3, 9 2 9 ,0 2 9 $ 3, 7 9 5 , 06 8 $ 12 ,083,396 $ 2,817,495$ OP ER A TIN G E X PENS ES Salari es a n d be n efits 1, 2 5 0, 8 3 1 1, 1 3 4 , 9 7 8 95 3 , 5 47 3,339,356 101,570 Ma t erial a n d s upp l ies 542 , 4 3 8 15 9 , 6 9 8 21 0 , 0 60 912,196 281,341 Repa i rs a n d maintenance 89 , 5 9 9 10 0 , 4 7 9 20 4 , 0 14 394,092 5,507 Ut i l i t i es 94,856 25 0 , 0 8 9 40 , 2 0 2 385,147 1,068 Admini st rative c harge s 256,795 25 7 , 4 6 5 23 2 , 9 53 747,213 164,631 In sura nce c l a ims - - - - 1,550,985 Other e x pe n ses 206 , 2 4 3 26 0 , 7 8 6 23 5 , 8 73 702,902 347,934 De p rec i a t i o n a n d a m orti z a t i o n 1,2 65 ,3 14 1, 1 9 0 , 0 7 2 58 1 , 9 46 3,037,332 19,320 Chan ges i n e sti m at e d c l o s ure a n d p o s t- cl o sur e c a re c ost s - - 3, 6 96 3,696 - To t al o p er a t ing e x pe n ses 3, 7 0 6, 0 7 6 3, 3 5 3 ,5 6 7 2, 4 6 2 , 29 1 9,521,934 2,472,356 Oper a t ing i nco m e 653 , 2 2 3 57 5 ,4 6 2 1, 3 3 2 , 77 7 2,561,462 345,139 NO NO P ER ATIN G R E V ENU E S ( E X PEN S E S ) Tran sfer s o u t (50 , 0 0 0 ) (5 0 ,00 0 ) (5 0 , 0 0 0 ) (150,000) - In tere st i nco me 109 , 0 4 0 16 1 , 4 8 3 77 , 3 3 6 347,859 1,034 In tere st e x pe nse (76 , 6 5 0 ) - - (76,650) (766) Other i nco m e 74 , 0 0 0 33 , 0 9 1 12 , 3 1 9 119,410 86 Gran t i nco m e 35 , 7 2 0 1, 5 8 5 , 5 4 4 78 5 1,622,049 - Im pa c t f ee 1,2 9 8,1 0 1 1, 6 4 1 , 4 8 9 - 2,939,590 - Gain on d i spos al o f a s sets 57 3 50 2 - 1,075 - Total n o no perating r eve nu es (exp ense s) 1,390,784 3, 3 7 2 ,1 0 9 40 , 4 40 4,803,333 354 Change i n Net A ssets 2, 0 4 4, 0 0 7 3, 9 4 7 , 5 7 1 1, 3 7 3 , 21 7 7,364,795 345,493 NET A SSETS, b e ginning o f y ear 13 , 5 5 9, 4 8 7 19 , 5 7 8 ,7 1 3 7, 2 0 3 , 45 2 40 ,341,652 (362,212) NET A SSETS, e n d o f y ear 15 , 6 0 3, 4 9 4 $ 23 , 5 2 6 ,2 8 4 $ 8, 5 7 6 , 66 9 $ 47 ,706,447 $ (16,719)$ Enterp r i se F unds Busi ness - ty pe A ctivit i e s 43 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . ST A T E M E N T O F C A S H FL O W S - P R O P R I E T A R Y F U N D S Fo r t h e Y e a r E n d e d J u n e 3 0, 2 0 04 Governmental Activities Wa s t e Soli d I nternal Water F u n d Wate r F u n d Wast e F u n d Total Service Funds In cr e a s e ( D ec r e a s e) i n C ash a n d C ash E q u ivale n ts Cash F low s f rom O per a t ions: Rec e i pt s f rom c u stom er s 4,3 9 4 , 2 5 4 $ 3, 96 5 , 0 0 5 $ 3, 7 8 4 ,3 9 2 $ 12 , 14 3 , 6 5 1 $ 2 , 818,252$ Rec e i pt s f rom o t h ers 74 , 0 0 0 33 , 0 9 1 12 , 3 1 9 11 9 , 4 1 0 86 Loan s t o o ther C i t y f unds - (24 6 , 7 3 5) - (24 6 , 7 3 5) (202,106) Repa y men t o f l oan s t o o t hers 13 ,7 9 9 - - 13 , 7 9 9 - Pa y men ts t o supp l iers (1 , 3 7 3 ,7 6 2 ) (68 9 , 1 3 1) (8 9 7 ,9 5 0 ) (2 , 96 0 , 8 4 3) (662,139) Pa y men ts t o em pl oy ee s (1 , 2 1 1 ,3 2 7 ) (1 , 13 6 , 3 9 3) (9 4 8 ,0 3 2 ) (3 , 29 5 , 7 5 2) (1,641,998) Pa y men ts t o In tern al S erv ice F unds a n d ad m inistra t ive f ee s (2 5 6 ,7 9 5 ) (25 7 , 4 6 5) (2 3 2 ,9 5 3 ) (74 7 , 2 1 3) (164,632) Ne t C a s h P r ovid ed b y O p er at i n g A cti v it i e s 1,6 40,1 69 1, 66 8 , 3 7 2 1, 7 1 7 ,7 7 6 5, 02 6 , 3 1 7 147,463 Ca s h F l o ws f rom C a p it a l a n d R ela t e d Fi n ancin g A ctivit i e s Add i tion s t o p r o p e r ty, p l an t a n d e quipm en t (1, 4 0 2 ,7 6 6 ) (3 , 02 3 , 9 3 0) (3 , 3 0 9 ,9 8 1 ) (7 , 73 6 , 6 7 7) (46,059) Pr i nci pa l p a i d o n b o nds, i nterf und l oan s, l oan s an d l eases (4 1 3 ,2 7 9 ) - (8 1 ,35 6 ) (49 4 , 6 3 5) - Rec e i pt s f rom F e d e ra l g ran ts 35 , 7 2 0 1, 58 5 , 5 4 4 78 5 1, 62 2 , 0 4 9 - In tere st p a i d o n b o n ds , i nterf und loan s, l oan s a n d l ea s es (7 6 ,65 0 ) - - (7 6 , 6 5 0 ) (766) Tran sfer s t o ot her f unds f or c a p i tal o u tlay (50 ,0 0 0 ) (5 0 , 0 0 0) (5 0 ,00 0 ) (15 0 , 0 0 0) - Im pa c t f ee s r e c e i v ed 1,2 9 8 , 1 0 1 1, 64 1 , 4 8 9 - 2, 93 9 , 5 9 0 - Net C ash F low s ( Used) by C apital a n d R elated F inancing A ctivities (6 0 8 ,8 7 4 ) 15 3 , 1 0 3 (3 , 4 4 0 ,5 5 2 ) (3 , 89 6 , 3 2 3) (46,825) Ca s h F l o ws f rom I nvest i ng A ctivit i e s Co ll e c t i o ns o n n ote s - - - - - In tere st o n i nvestments 10 9 ,0 4 0 16 1 , 4 8 3 77 ,3 3 6 34 7 , 8 5 9 1,034 Net C ash F low s f rom I n vesting A ctivities 10 9 ,0 4 0 16 1 , 4 8 3 77 ,3 3 6 34 7 , 8 5 9 1,034 Ne t I n cr e a se ( D e c re a s e) i n C ash a n d C ash E q u ivale nts 1,1 4 0 , 3 3 5 1, 98 2 , 9 5 8 (1 , 6 4 5 ,4 4 0 ) 1, 47 7 , 8 5 3 101,672 Ca sh a nd C a sh E qui va lent s a t B egi nn i n g o f Y e ar 6,358,275 9, 91 9 , 3 6 4 7, 0 3 8 ,1 3 3 23 , 31 5 , 7 7 2 47,392 Cash a n d C ash E q uivalents a t E nd o f Y ea r 7, 4 9 8 ,6 1 0 $ 11 , 90 2 , 3 2 2 $ 5, 3 9 2 ,6 9 3 $ 24 , 79 3 , 6 2 5 $ 149,064$ Cl a s s i f i e d A s: Curr e nts A ssets 1, 2 8 5 ,9 5 1 $ 4, 75 7 , 6 3 3 $ 5, 3 9 2 ,6 9 3 $ 11 , 43 6 , 2 7 7 $ 1 4 9 , 0 6 4$ Restri ct ed A ssets 6, 2 1 2 ,6 5 9 7, 14 4 , 6 8 9 - 13 , 35 7 , 3 4 8 - Totals 7, 4 9 8 ,6 1 0 $ 11 , 90 2 , 3 2 2 $ 5, 3 9 2 ,6 9 3 $ 24 , 79 3 , 6 2 5 $ 149,064$ En terp r i se F unds Bu si n ess -type A cti v it i es 44 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . ST A T E M E N T O F C A S H FL O W S PR O P R I E T A R Y F U N D S ( C O N T I N U E D) Fo r t h e Y e a r E n d e d J u n e 3 0, 2 0 04 Governmental Activities Wa s te Sol id Internal Water F u n d Water Fu n d Wast e F u n d Total Service Funds Operat ing I n co m e 65 3 ,2 2 3 $ 57 5 , 4 6 2 $ 1, 3 3 2 ,7 7 7 $ 2,56 1 , 4 6 2 $ 345,139$ Adjust m ents t o r eco ncil e o perating i n co me ( los s ) to n et c a s h p rovid ed (use d ) by o perati n g a c t i v it i e s Depr e c iation a n d am or t iza t ion 1,2 6 5 ,3 1 4 1,19 0 , 0 7 2 58 1 ,9 4 6 3,03 7 , 3 3 2 19,320 Chan ge i n e s timate d cl o s ure an d p o s t-clos ure c a r e - - 3, 6 9 5 3, 6 9 5 - Other i nco m e 74 ,0 0 0 33 , 0 9 1 12 , 3 1 9 11 9 , 4 1 0 86 Ch an ge i n A sse t s a n d L iab il it i e s : ( I n cr e ase) D e cr e a s e i n : Acco u nts r e c e i v abl e 48, 7 5 4 35 , 9 7 6 (1 0 ,67 6 ) 74 , 0 5 4 757 Lo ans t o o the rs - (24 6 , 7 3 5) - (24 6 , 7 3 5) - I n cr e a se ( D e c re a s e) i n : Acco u nts p a y abl e (44 0 ,6 2 6 ) 81 , 9 2 1 (2 0 7 ,8 0 1 ) (56 6 , 5 0 6) (26,289) Lo ans f r om o the r C i ty f un d s - - - - (202,106) Accr u ed e mpl oy ee b e n efits p a y abl e 39,50 4 (1 , 4 1 5 ) 5,51 6 43 , 6 0 5 10,556 Total a d j ustments 98 6 ,9 4 6 1,09 2 , 9 1 0 38 4 ,9 9 9 2,46 4 , 8 5 5 (197,676) Ne t c a s h p r ovid ed b y operati n g a c t iv it i e s 1,6 40,1 69 $ 1,66 8 , 3 7 2 $ 1, 7 1 7 ,7 7 6 $ 5,02 6 , 3 1 7 $ 147,463$ En terp r i se F unds Bu si n ess-type A cti v it i es FI D U C I A R Y F U N D F I N A N C I A L S T A T E M E N T S FI D U C I A R Y F U N D S AG E N C Y F U N D S Ag e n c y f u n d s a r e u s e d t o a c c o u n t f o r a s s e t s h e l d b y t h e C i t y a s an a g e n t f o r i n d i v i d u a l s , p r i v a t e o r g a n i z a t i o n s , o t h e r g o v e r n m e nt s a n d / o r o t h e r f u n d s . Mo n t a n a A r t s C o u n c i l - B a l l e t – A c c o u n t s f o r p a s s - t h r o u g h g r a n t m o n i e s g i v e n f o r u s e b y t h e M o n t a n a B a l l e t C o m p a n y . Bi g S k y A s s o c i a t i o n f o r t h e A r t s – A c c o u n t s f o r p a s s - t h r o u g h g r a n t m o n i e s g i v e n f o r u s e b y t h e B i g S k y A s s o c i a t i o n o f t h e A r t s . Bo z e m a n S y m p h o n y O r c h e s t r a – A c c o u n t s f o r p a s s - t h r o u g h g r a n t m o n i e s g i v e n f o r u s e b y t h e B o z e m a n S y m p h o n y . Mu n i c i p a l C o u r t – A c c o u n t s f o r m o n i e s h e l d f o r a p p e a r a n c e b o n d s a n d r e s t i t u t i o n . 45 CI T Y O F B O ZE M A N , M O N T A NA Th e No te s t o Fi n ancia l S t a t e m e n ts a r e a n i nte g ral part of t h e fi n ancia l s t a t e men ts . ST A T E M E N T O F F I D U C I A R Y N E T AS S E T S FI D U C I ARY F U N D S Ju n e 3 0 , 2 004 Ag ency Fu n d s AS S ETS Cash a n d c a sh e q u ivalents 107 , 6 2 0 $ Custom er r e ce i v abl e s 2, 0 8 0 Due from o ther f unds 4,4 5 9 Tota l a s se t s 11 4,159 LIABIL IT IE S Acc o unts p a yabl e 114 , 1 5 9 Tota l l i ab il i t i e s 114,159 $ NO T E S T O F I N A N C I A L S T A T E M E N T S 46 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S JU N E 3 0 , 2 0 0 4 NO T E 1 . S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S Th e C i t y o f B o z e m a n o f G a l l a t i n C o u n t y , M o n t a n a ( t h e C i t y ) w a s in c o r p o r a t e d a s a m u n i c i p a l c o r p o r a t i o n i n 1 8 8 3 . T h e p r e s e n t C i ty Code of Ordinances was ad o p t e d N o v e m b e r 2 2 , 1 9 8 2 . U n d e r t h e c h a r t e r , t h e C i t y i s g o v e r n ed b y a m a y o r a n d c o m m i s s i o n m e m b e r s w h o c o m p r i s e t h e C i t y C o m mission. The day-to- da y a f f a i r s o f t h e C i t y a r e c o n d u c t e d u n d e r th e s u p e r v i s i o n o f t h e C i t y M a n a g e r , w h o i s a p p o i n t e d b y a n d s e r v e s a t t h e p l e a s u r e of a majority of the City Co m m i s s i o n . Th e a c c o m p a n y i n g f i n a n c i a l s t a t e m e n t s o f t h e C i t y h a v e b e e n p r ep a r e d i n c o n f o r m i t y w i t h g e n e r a l l y a c c e p t e d a c c o u n t i n g p r i n c i p l e s (GAAP) as prescribed by th e G o v e r n m e n t a l A c c o u n t i n g S t a n d a r d s B o a r d ( G A S B ) , t h e a c c e p t e d s t a n d a r d - s e t t i n g b o d y f o r e s t a b l i s h i n g g o v e r n m e n t a l a c c o u n t i n g and financial reporting pr i n c i p l e s . I n J u n e 1 9 9 9 t h e G A S B i s s u e d S t a t e m e n t 3 4 Ba s i c F i n a n c i a l S t a t e m e n t s - a n d M a n a g e m e n t ’ s Di s c u s s i o n a n d A n a l y s i s - f o r S t a t e a n d L o c a l Go v e r n m e n t s . T h i s S t a t e m e n t e s t a b l i s h e s n e w f i n a n c i a l r e p o r t i n g r e q u i r e m e n t s f o r s t a t e a n d l o c a l g o v e r n m e n t s t h r o u g h o u t t h e U n i t e d S t a t e s . It requires new in f o r m a t i o n a n d r e s t r u c t u r e s m u c h o f t h e i n f o r m a t i o n t h a t g o v e r n me n t s h a v e p r e s e n t e d i n t h e p a s t . C o m p a r a b i l i t y w i t h r e p o r t s i ss u e d i n p r i o r y e a r s i s a f f e c t e d . Th e C i t y a d o p t e d t h e p r o v i s i o n s o f G A S B 3 4 f o r i t s f i s c a l y e a r en d e d J u n e 3 0 , 2 0 0 2 . W i t h t h e im p l e m e n t a t i o n o f G A S B 3 4 , t h e C i ty has prepared required su p p l e m e n t a r y i n f o r m a t i o n t i t l e d M a n a g e m e n t ’ s D i s c u s s i o n a nd A n a l y s i s w h i c h p r e c e d e s t h e b a s i c f i n a n c i a l s t a t e m e n t s . Ot h e r G A S B s t a t e m e n t s a r e r e q u i r e d t o b e i m pl e m e n t e d i n c o n j u n c t i o n w i t h G A S B S t a t e m e n t 34 . T h e r e f o r e , t h e C i t y i m p l e m e n t e d t h e following GASB st a t e m e n t s i n t h e y e a r e n d e d J u n e 3 0 , 2 0 0 2 : S t a t e m e n t 3 3 Ac c o u n t i n g a n d F i n a n c i a l R e p o r t i n g f o r N o n e x c ha n g e T r a n s a c t i o n s , S t a t e m e n t 3 6 R e c i p i e n t Re p o r t i n g f o r C e r t a i n S h a r e d N o n e x c h a n g e R e v e n u e s , S t a t e m e n t 3 7 Ba s i c F i n a n c i a l s S t a t e m e n t s - a n d M a n a g e m e n t ’ s D i s c u s s i o n a n d A n a l y s i s - f o r S t a t e a n d Lo c a l G o v e r n m e n t s : O m n i b u s , a n d S t a t e m e n t 3 8 Ce r t a i n F i n a n c i a l S t a t e m e n t N o t e D i s c l o s u r e s . Th e a c c o m p a n y i n g f i n a n c i a l s t a t e m e n t s p r e s e n t t h e f i n a n c i a l p o s i t i o n of t h e C i t y a n d t h e v a r i o u s f u nd s a n d f u n d t y p e s , t h e r e s u lt s o f o p e r a t i o n s o f t h e C i t y a n d th e v a r i o u s f u n d s a n d f u n d t y p e s , a n d t h e ca s h f l o w s o f t h e p r o p r i e t a r y f u n d s . T h e f i n a n c i a l s t a t e m e n t s a r e p r e s e n t e d a s o f J u ne 3 0 , 2 0 0 4 , a n d f o r t h e y e a r t h e n en d e d . Th e m o r e s i g n i f i c a n t a c c o u n t i n g p o l i c i e s of t h e C i t y a r e d e s c r i b e d b e l o w . Re p o r t i n g E n t i t y Th e C i t y h a s c o n s i d e r e d a l l p o t e n t i a l c o m p o n e n t u n i t s f o r w h i c h it i s f i n a n c i a l l y a c c o u n t a b l e a nd o t h e r o r g a n i z a t i o n s f o r w h i c h the nature and significance of th e i r r e l a t i o n s h i p w i t h t h e C i t y a r e s u c h t h a t e x c l u s i o n w o u l d ca u s e t h e C i t y ’ s f i n a n c i a l s t a t e m e n t s t o b e m i s l e a d i n g o r i n c o m p l e t e . T h e G o v e r n m e n t a l Ac c o u n t i n g S t a n d a r d s B o a r d h a s s e t f o r t h c r i t e r i a t o b e c on s i d e r e d i n d e t e r m i n i n g f i n a nc i a l a c c o u n t a b i l i t y S t a t e m e n t 1 4 Th e F i n a n c i a l R e p o r t i n g E n t i t y and St a t e m e n t 3 9 , De t e r m i n i n g W h e t h e r C e r t a i n O r g a n i z a t i o n s a r e C o m p o n e n t U n i t s , a n a m e n d m e n t t o S t a t e m e n t 1 4 . T h e s e c r i t e r i a i n c l u d e a p p o i n t i n g a v o t i n g ma j o r i t y o f a n o r g a n i z a t i o n ' s g o v e r n i n g b o d y a n d ( 1 ) t h e a b i l i t y o f t h e C i t y t o i m p o s e i t s w i l l o n t h a t o r g a n i z a t i o n o r ( 2 ) t h e p o t e n t i a l f o r t h e o r g a n i z a t i o n t o pr o v i d e s p e c i f i c f i n a n c i a l b e n e f i t s t o , o r im p o s e s p e c i f i c f i n a n c i a l b u r d e n s o n t h e C i t y . 47 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 1 . S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C O N T I N U E D ) Re p o r t i n g E n t i t y ( C o n t i n u e d ) Di s c r e t e l y P r e s e n t e d C o m p o n e n t U n i t s Co m p o n e n t u n i t s a r e e n t i t i e s w h i c h a r e l e g a l l y s e p a r a t e f r o m t h e C it y , b u t a r e f i n a n c i a l l y a c c o u n t a b l e t o t h e C i t y , o r w h o s e r e la t i o n s h i p s w i t h t h e C i t y a r e s u c h th a t e x c l u s i o n w o u l d c a u s e t h e C i t y ’ s f i n a n c i a l s t a t e m e n t s t o be m i s l e a d i n g o r i n c o m p l e t e . A l t h o u g h t h e f o l l o w i n g f o u r e n t i t i e s meet the requirements of St a t e m e n t 1 4 , t h e y a r e s t r i c t l y a d v i s o r y i n n a t u r e . T h e r e f o r e, t h e g o v e r n m e n t - w i d e f i n a n c i a l s t a t e m e n t s d o n o t i n c l u d e t h e C o m ponent Unit columns with fi n a n c i a l d a t a o f t h e f o l l o w i n g e n t i t i e s a n d t h e i r o m i s s i o n d o e s n o t ca u s e t h e C i t y ’ s f i n a n c i a l s t a t e m e n t s t o b e m i s l e a d i n g o r in c o m p l e t e . S h o u l d t h e r e d e v e l o p a fi n a n c i a l e l e m e n t a t s o m e p o i n t i n t h e f u t u r e , t h e C i t y s h al l i n c l u d e t h e s e e n t i t i e s o n i t s g o v e r n m e n t - w i d e f i n a n c i a l s t a t e m e n t s. The City has no discretely pr e s e n t e d c o m p o n e n t u n i t s a s o f J u n e 3 0 , 2 0 0 4 . Li b r a r y B o a r d o f T r u s t e e s - T h e C i t y C o m m i s s i o n a p p o i n t s a l l f i v e t r u s t e e s o f t h e L i b r a r y bo a r d . T h e L i b r a r y i s n o t a l e g a l l y s e p a r a t e e n t i t y , h o w e v e r , so i t i s p r e s e n t e d u n d e r p u b l i c w e l f a r e i n t h e G e n e r a l F u n d . Li b r a r y F o u n d a t i o n – A l e g a l l y s e p a r a t e n o n - p r o f i t c o r p o r a t i o n w h o s e a c t i v i t i e s d i r e c tl y b e n e f i t t h e C i t y . A s o f J u n e 3 0 , 2 0 0 4 , t h e s e a c t i v i t i e s are not co n s i d e r e d s i g n i f i c a n t t o t h e C i t y . Se n i o r C e n t e r A d v i s o r y C o u n c i l - T h i s b o a r d i s a d v i s o r y i n n a t u r e o n s e n i o r i s s u e s a n d o n h o w t o r u n t h e C i t y - o w n e d S e n i o r C e n t e r b u i l d i n g . T h e C i t y is r e s p o n s i b l e f o r t h e m a i n t e n a n ce a n d o p e r a t i o n o f t h e b u i l d i n g . Pa r k i n g C o m m i s s i o n - T h e C i t y C o m m i s s i o n a p p o i n t s t h e g o v e r n i n g b o a r d o f t h e P a r k i ng C o m m i s s i o n , w h i c h w a s c r e a t e d b y o r d i n a n c e . T h e C i t y ow n s t h e p a r k i n g l o t s , c o l l e c t s t h e r e n t s a n d a s s i g n s t h e l o t s to t h e i n d i v i d u a l s . T h e P a r k i n g C o m m i s s i o n a c t s o n l y i n a v o l u n teer advisory capacity to th e C i t y C o m m i s s i o n o n s e t t i n g r a t e s . Bl e n d e d C o m p o n e n t U n i t s Ci t y P l a n n i n g B o a r d - T h e a g r e e m e n t f o r m i n g t h e B o a r d h o l d s t h a t i t w i l l s u b m i t i t s bu d g e t t o t h e C i t y C o m m i s s i o n f o r a p p r o v a l a n d t h e C i t y p r o v i d es al l a c c o u n t i n g f u n c t i o n s a n d i s r e s p o n s i b l e f o r t h e i s s u a n c e o f d e b t . I t i s i n c l u d e d w i t h t h e S p e c i a l R e v e n u e F u n d s . Ba s i s o f A c c o u n t i n g / M e a s u r e m e n t F o c u s Th e a c c o u n t s o f t h e C i t y a r e o r g a n i z e d o n t h e b a s i s o f f u n d s , e a c h o f w h i c h i s c o n s i d e r e d a s e p ar a t e a c c o u n t i n g e n t i t y . T h e o p e r a t i o n s o f e a c h f u n d a r e ac c o u n t e d f o r w i t h a s e p a r a t e s e t o f s e l f - b a l a n c i n g a c c o u n t s t h a t c o m p r i s e i t s a s s e t s , l i a b i l i t i e s , f u n d e q u i t y , r e v e n u e s a n d e xpenditures or expenses, as ap p r o p r i a t e . G o v e r n m e n t a l r e s o u r c e s a r e a l l o c a t e d t o a n d a c c o u n t ed f o r i n i n d i v i d u a l f u n d s b a s e d u p o n t h e p u r p o s e s f o r w h i c h t hey are to be spent and the me a n s b y w h i c h s p e n d i n g a c t i v i t i e s a r e c o n t r o l l e d . 48 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 1 . S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C O N T I N U E D ) Ba s i s o f A c c o u n t i n g / M e a s u r e m e n t F o c u s ( C o n t i n u e d ) Go v e r n m e n t - W i d e F i n a n c i a l S t a t e m e n t s Th e G o v e r n m e n t - w i d e F i n a n c i a l S t a t e m e n t s ( t he S t a t e m e n t o f N e t A s s e t s a n d t h e S t a t e m e n t o f A c t i v i t i e s ) r e p o r t i n f o r m a t i o n o f a l l the nonfiduciary activities of th e p r i m a r y g o v e r n m e n t a n d i t s c o m p o n e n t u n i t s . T h e s e s t a t e m e n t s p r e s e n t s u m m a r i e s o f G o v e r n m e n t a l a n d B u s i n e s s - T y p e A c t i v i t i e s for the City ac c o m p a n i e d b y a t o t a l c o l u m n . Th e s e s t a t e m e n t s a r e p r e s e n t e d o n a n “ e c o n o m i c r e s o u r c e s ” m e a s u r e m e n t f o c u s a n d t h e a c c r u al b a s i s o f a c c o u n t i n g . A c c o r d i n g l y , all of the City’s assets and li a b i l i t i e s , i n c l u d i n g c a p i t a l a s s e t s a n d l o n g - t e r m l i a b i l i t i e s , a r e i n cl u d e d i n t h e a c c o m p a n y i n g S t a t e m e n t o f N e t A s s e t s . T h e C i t y w i l l b e r e t r o a c t i v e l y i n c l u d i n g in f r a s t r u c t u r e i n i t s a s s e t s a t a p o i n t w i t h i n t h e p r e s c r i b e d 4 - ye a r i m p l e m e n t a t i o n p e r i o d . F o r t h e c u r r e n t f i s c a l y e a r , n o i n fr a s t r u c t u r e a s s e t s e x i s t i n g p r i o r t o Ju l y 1 , 2 0 0 1 h a v e b e e n i n c l u d e d . Th e S t a t e m e n t o f A c t i v i t i e s p r e s e n t s c h a n g e s i n n e t a s s e t s . U n d e r t h e a c c r u a l b a s i s o f a c c o u n t i n g, r e v e n u e s a r e r e c o g n i z e d i n the period in which they are ea r n e d w h i l e e x p e n s e s a r e r e c o g n i z e d i n t h e p e r i o d i n w h i c h t h e l i a b i l i t y i s i n c u r r e d . T h e t y p e s o f t r a n s a c t i o n s r e p o r t e d a s p ro g r a m r e v e n u e s f o r t h e C i t y a r e re p o r t e d i n t h r e e c a t e g o r i e s : 1 ) c h a r g e s f o r s e r v i c e s , 2 ) o p e r a ti n g g r a n t s a n d c o n t r i bu t i o n s , a n d 3 ) c a p i t a l g r a n t s a n d c o n t r i bu t i o n s . Ce r t a i n e l i m i n a t i o n s h a v e b e e n m a d e a s p r e s c r i b e d b y G A S B 3 4 i n r e g a r d s t o i n t e r f u n d a c t i v i t i e s , p a y a b l e s a n d r e c e i v a b l e s . A l l internal balances in the St a t e m e n t o f N e t A s s e t s h a v e b e e n e l i m i n a t e d e x c e p t t h o s e re p r e s e n t i n g b a l a n c e s b e t w e e n t h e g o v e r n m e n t a l a c t i v i t i e s a n d t h e b u s iness-type activities, which ar e p r e s e n t e d a s i n t e r n a l b a l a n c e s a n d e l i m i n a t e d i n t h e t o t a l pr i m a r y g o v e r n m e n t c o l u m n . I n t h e S t a t e m e n t o f A c t i v i t i e s , i n t e rnal service fund transactions ha v e b e e n e l i m i n a t e d ; h o w e v e r , t h o s e t r a n sa c t i o n s b e t w e e n g o v e r n m e n t a l a n d b u s i n e s s - t y pe a c t i v i t i e s h a v e n o t b e e n e l i m i n a t e d . Th e C i t y a p p l i e s a l l a p p l i c a b l e G A S B p r o n o u n c e m e n t s ( i n c l u d i n g al l N a t i o n a l C o u n c i l o n G o v e r n m e n t a l A c c o u n t i n g S t a t e m e n t s a n d I nterpretations currently in e f f e c t ) a s w e l l a s t h e f o l l o w i n g p r o n o u n c e m e n t s i s s u e d o n or b e f o r e N o v e m b e r 3 0 , 1 9 8 9 , u n l e s s t h o s e p r o n o u n c e m e n t s c o n f l i c t with or contradict GASB pr o n o u n c e m e n t s : F i n a n c i a l A c c o u n t i n g S t a n d a rd s B o a r d ( F A S B ) S t a t e m e n t s a n d I n t e r p r e ta t i o n s , A c c o u n t i n g P r i n c i p l e s B o a r d ( A P B ) Opinions, and Ac c o u n t i n g R e s e a r c h B u l l e t i n s ( A R B ) o f t h e C o mm i t t e e o n A c c o u n t i n g P r o c e d u r e . I n a d d i t i on , t h e C i t y a p p l i e s a l l a p p l i c a b l e F A S B Statements and In t e r p r e t a t i o n s i s s u e d a f t e r N o v e m b e r 3 0 , 1 9 8 9 , e x c e p t t h o s e t h a t c o n f l i c t w i t h o r c o n t r a d i c t G A S B p r o n o u n c e m e n t s t o i t s b u s i n e ss-type activities. Go v e r n m e n t a l F u n d F i n a n c i a l S t a t e m e n t s Go v e r n m e n t a l F u n d F i n a n c i a l S t a t e m e n t s i n c l u d e a B a l a n c e S h e e t a n d a S t a t e m e n t o f R e v e nu e s , E x p e n d i t u r e s , a n d C h a n g e s i n F u n d B alances for all major go v e r n m e n t a l f u n d s a n d n o n m a j o r f u n d s a g g r e g at e d . A n a c c o m p a n y i n g s c h e d u l e i s p r e s e n te d t o r e c o n c i l e a n d e x p l a i n t h e d i f f e r e n c e s i n f u n d b a l a n c e s a n d ch a n g e s i n f u n d b a l a n c e s a s p r e s e n t e d i n t h es e s t a t e m e n t s t o t h e n e t a s s e t s a n d c h a n g es i n n e t a s s e t s p r e s e n t e d i n t h e G o v e r n m e nt-Wide Financial Statements. Th e C i t y h a s p r e s e n t e d a l l m a j o r f u n d s t h a t m e t t h o s e q u a l i f i c a t i o n s . 49 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 1 . S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C O N T I N U E D ) Ba s i s o f A c c o u n t i n g / M e a s u r e m e n t F o c u s ( C o n t i n u e d ) Al l g o v e r n m e n t a l f u n d s a r e a c c o u n t e d f o r o n a s p e n d i n g o r “ c u r r e n t f i n a n c i a l r e s o u r c e s ” m e a s u r e m e n t f o c u s a n d t h e m o d i f i e d a c c r ual basis of accounting. Ac c o r d i n g l y , o n l y c u r r e n t a s s e t s a n d c u r r e n t l i a b i l i t i e s a r e i n c l u d e d o n t h e B a l a n c e S h e e t s . T h e S t a t e m e n t o f R e v e n u e s , E x p e n d itures, and Changes in Fund Ba l a n c e s p r e s e n t i n c r e a s e s ( r e v e n u e s a n d o t h e r f i n a n c i n g s o u r c e s ) a n d d e c r e a s e s ( e x p e n d i t u r e s a n d o t h e r f i n a n c i n g u s e s ) i n n e t current assets. Under the mo d i f i e d a c c r u a l b a s i s o f a c c o u n t i n g , r e v e n u e s a r e r e c o g n i z e d i n th e a c c o u n t i n g p e r i o d i n w h i c h t h e y b e c o m e b o t h m e a s u r a b l e a n d available to finance ex p e n d i t u r e s o f t h e c u r r e n t p e r i o d . A c c o r d in g l y , r e v e n u e s a r e r e c o r d e d w h e n r e c e i v e d i n c a s h , e x c e p t t h a t r e v e n u e s s u b j e c t t o accrual (generally 60 days after ye a r - e n d ) a r e r e c o g n i z e d w h e n d u e . T h e p r i m a r y r e v e n u e s o u r c e s w h i c h h a v e b e e n t r e a t e d a s s u s c e p t i b l e t o a c c r u a l b y t h e C i t y a re property tax, in t e r g o v e r n m e n t a l r e v e n u e s , a n d o t h e r t a x e s . E x p e n d i t u r e s a r e re c o r d e d i n t h e a c c o u n t i n g p e r i o d i n w h i c h t h e r e l a t e d f u n d l i a b il i t y i s i n c u r r e d . Pr o p r i e t a r y F u n d F i n a n c i a l S t a t e m e n t s Pr o p r i e t a r y F u n d F i n a n c i a l S t a t e m e n ts i n c l u d e a S t a t e m e n t o f N e t A s s e t s , a S t a t e m en t o f R e v e n u e s , E x p e n s e s a n d C h a n g e s i n F u n d Net Assets, and a Statement of C a s h F l o w s f o r e a c h m a j o r p r o p r i e t a r y fu n d . T h e C i t y h a s n o n o n m a j o r p r o p r i e t a r y f u n d s . A c o l u m n r e p r e s e n t i n g i n t e r n a l s e r vice funds is also presented in th e s t a t e m e n t s . I n t e r n a l s e r v i c e b a l a n c e s a n d a c t i v i t i e s , h o w e v e r , ha v e b e e n c o m b i n e d w i t h t h e go v e r n m e n t a l a c t i v i t i e s i n t h e Government-Wide Financial St a t e m e n t s . Pr o p r i e t a r y f u n d s a r e a c c o u n t e d f o r u s i n g t h e “ e c o n o m i c r e s o u r c e s ” m e a s u r e m e n t f o c u s a n d t h e a c c r u a l b a s i s o f a c c o u n t i n g . A c c o rdingly, all assets and li a b i l i t i e s ( w h e t h e r c u r r e n t o r n o n c u r r e n t ) a r e i n c l u d e d o n t h e S t a t em e n t o f N e t A s s e t s . T h e S t a t e m e n t o f R e v e n u e s , E x p e n s e s a nd Changes in Fund Net Assets pr e s e n t s i n c r e a s e s ( r e v e n u e s ) a n d d e c r e a s e s ( e x p e n s e s ) i n t o t a l n e t a s s e t s . U n d e r t h e a c c r u a l b a s i s o f a c c o u n t i n g , r e v e n u e s a r e r e c o g n i z e d i n t h e p e r i o d i n w h i c h th e y a r e e a r n e d w h i l e e x p e n s e s a r e r e c o g n i z e d i n th e p e r i o d i n w h i c h t h e l i a b i l i t y i s i n c u r r e d . Op e r a t i n g r e v e n u e s i n t h e p r o p r i e t a r y f u n d s a r e t h o s e r e v e n u e s t h at a r e g e n e r a t e d f r o m t h e p r i m a r y o p e r a t i o n s o f t h e f u n d . A l l o t h e r r e v e n u e s a r e r e p o r t e d a s no n - o p e r a t i n g r e v e n u e s . O p e r a t i n g e x p e n s e s a r e t h o s e e x p e n s e s t h a t a r e e s s e n t i a l t o t h e p r i m a r y o p e r a t i o n s o f t h e f u n d . A l l o t h e r e x p e n s e s a r e r e p o r t e d a s n o n - op e r a t i n g e x p e n s e s . Fi d u c i a r y F u n d F i n a n c i a l S t a t e m e n t s Fi d u c i a r y F u n d F i n a n c i a l S t a t e m e n t s i n c l u d e a S t a t e m e n t o f N e t As s e t s . T h e C i t y ’ s F i d u c i a r y F u n d s r e p r e s e n t A g e n c y F u n d s , w h i c h are custodial in nature (a s s e t s e q u a l l i a b i l i t i e s ) a n d d o n o t i n v o l v e m e a s u r e m e n t o f r e s u l t s of o p e r a t i o n s . T h e A g e n c y F u n d s d o n o t h a v e a m e a s u r e m e n t f o c u s . 50 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 1 . S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C O N T I N U E D ) Fu n d s As m e n t i o n e d , t h e G o v e r n m e n t a l F u n d F i n a n c i a l S t a t e m e n t s i n c l u d e a B a l a n c e S h e e t a n d a S t a t e m e n t o f R e v e n u e s , E x p e n d i t u r e s , a n d Changes in Fund Ba l a n c e s f o r a l l m a j o r g o v e r n m e n t a l f u n d s a n d n o n m a j o r f u n d s a g g r e g a t e d . T h e f o l l o w i n g m a j o r f u n d s a r e p r e s e n t e d i n a s e p a r a t e column on the Go v e r n m e n t a l F u n d F i n a n c i a l S t a t e m e n t s : Go v e r n m e n t a l F u n d s Ge n e r a l F u n d - T h e G e n e r a l F u n d i s t h e p r i m a r y o p e r a t i n g u n i t o f t h e C i t y . It a c c o u n t s f o r a l l f i n a n c i a l r e s o u r c e s o f t h e C i t y , e x c e p t t h o s e r e q u i r e d t o be a c c o u n t e d f o r i n a n o t h e r f u n d . Im p a c t F e e S p e c i a l R e v e n u e F u n d - O n J a n u a r y 2 2 , 1 9 9 6 , t h e C i t y C o m m i s s i o n a d o p t e d f i r e , st r e e t , w a t e r , a n d w a s t e i m p a c t f e e s i n O r d i n a n c e n u m b e r 14 1 4 . T h i s f u n d a c c o u n t s f o r t h e c o l l e c t i o n a n d e x p e n d i t u r es a s s o c i a t e d w i t h t h e f i r e an d s t r e e t i m p a c t f e e s . Co m m u n i t y D e v e l o p m e n t L o a n F u n d – A c c o u n t s f o r r e v e n u e s r e c e i v e d a n d e x p e n d e d r e l a t i v e t o l o a n s m a d e i n a c c o r d ance with the Community De v e l o p m e n t B l o c k G r a n t P r o g r a m . SI D S i n k i n g F u n d - A c c o u n t s f o r t h e a c c u m u l a t i o n o f r e s o u r c e s a n d p a y m e n t o f s p ec i a l a s s e s s m e n t b o n d p r i n c i p a l a n d interest related to general im p r o v e m e n t , s i d e w a l k a n d c u r b c o n s t r u c t i o n p r o j e c t s . Pr o p r i e t a r y F u n d s Wa t e r F u n d - A c c o u n t s f o r t h e C i t y ' s w a t e r u t i l i t y o p e r a t i o n s . Wa s t e W a t e r F u n d - A c c o u n t s f o r t h e C i t y ' s s e w e r u t i l i t y o p e r a t i o n s . So l i d W a s t e F u n d - A c c o u n t s f o r t h e C i t y ' s g a r b a g e s e r v i c e o p e r a t i o n s . Us e o f R e s t r i c t e d / U n r e s t r i c t e d N e t A s s e t s Wh e n a n e x p e n s e i s i n c u r r e d f o r p u r p o s e s f o r w h i c h b o t h r e s t r i c t e d a n d u n r e s t r i c t e d n e t a s s e t s a r e a v a i l a b l e , t h e C i t y ’ s p o l i c y is to apply restricted net assets fi r s t . Ca s h a n d E q u i v a l e n t s Ca s h e q u i v a l e n t s a r e u n d e r t h e m a n a g e m e n t o f t h e C i t y ' s F i n a n c e Di r e c t o r a n d c o n s i s t p r i m a r i l y o f i n v e s t m e n t s i n t h e M o n t a n a S t ate Short-Term Investment Po o l ( S T I P ) . I n t e r e s t i n c o m e e a r n e d a s a r e s u l t o f t h e p o o l i n g i s d i s t r i b u t e d t o t h e a p p r o p r i a t e f u n d s u t i l i z i n g a f o r m u l a b a s e d o n t h e a v e r a g e b a l a n c e o f c a s h an d i n v e s t m e n t s o f e a c h f u n d . A l l i n v e s t m e n t s a r e s t a t e d a t c o s t . Mo n t a n a S t a t e s t a t u t e s a u t h o r i z e t h e C i t y t o i n v e s t i n i n t e re s t - b e a r i n g s a v i n g s a c c o u n t s , c e r t i f i c a t e s o f d e p o s i t s , a n d t i m e d e po s i t s i n s u r e d u p t o $ 1 0 0 , 0 0 0 b y t h e Fe d e r a l D e p o s i t I n s u r a n c e C o r p o r a t i o n o r f u ll y c o l l a t e r a l i z e d , U . S . g o v e r n m e n t a n d U . S. a g e n c y o b l i g a t i o n s , S T I P a n d r e p u r c h a s e agreements where there is a ma s t e r r e p u r c h a s e a g r e e m e n t a n d c o l l a t e r a l h e l d b y a t h i r d p a r t y . 51 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 1 . S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C O N T I N U E D ) Ca s h a n d E q u i v a l e n t s ( C o n t i n u e d ) At J u n e 3 0 , 2 0 0 4 , t h e C i t y h a d a n i n v e s t m e n t i n S T I P o f $ 3 0 , 3 0 0, 0 0 0 . T h e p u r p o s e o f S T I P i s t o o b t a i n t h e h i g h e s t p o s s i b l e r e t u rn, yet maintain a highly liquid po s i t i o n w h e r e b y f u n d s m a y b e i n v e s t e d f o r r e l a t i v e l y s h o r t p e r i o d s o f t i m e , o n e d a y o r m o r e , d e p e n d i n g o n t h e p a r t i c i p a n t ’ s a n ticipated use of the funds. Ac c o r d i n g l y , t h e C i t y ’ s i n v e s t m e n t i n ST I P i s c l a s s i f i e d a s a c a s h e q u i v a l e n t . ST I P i s a n u n c a t e g o r i z e d i n v e s t m e n t . T h e S T I P p o r t f o l i o i n c l u d e s as s e t - b a c k e d a n d v a r i a b l e i n t e r e s t r a t e s e c u r i t i e s t o p r o v i d e d i v e r s i f i c a t i o n a n d c o m p e t i t i v e ra t e o f r e t u r n . T h e s e s e c u r i t i e s a r e d e s c r i b e d b e l o w : As s e t - b a c k e d S e c u r i t i e s a r e d e b t s e c u r i t i e s c o l l a t e r a l i z e d b y a p o ol o f m o r t g a g e a n d n o n - m o r t g a g e a s s e t s s u c h a s t r a d e a n d l o a n receivables, equipment le a s e s a n d c r e d i t c a r d s , e t c . , p l e d g e d b y t h e i s s u e r . A s s e t - b a c k e d s e c u r i t i e s h a v e o n e o r m o r e f o r m s o f c r e d i t e n h a n c e m e n t t o raise the quality of the se c u r i t y . E x a m p l e s o f c r e d i t e n h a n c e m e n t i n c l u d e , b u t a r e n o t l i m it e d t o , l e t t e r o f c r e d i t , r e s e r v e f u n d , o r s e n i o r / s u b o r d i n a t e arrangements. Va r i a b l e R a t e ( F l o a t i n g - R a t e ) S e c u r i t i e s p r o v i d e m a n y a d v a n t a g es o f s h o r t - t e r m b o n d s b e c a u s e t h e y a r e d e s i g n e d t o m i n i m i z e t h e investor’s interest ra t e r i s k . A s w i t h v a r i a b l e r a t e l o a n s i s su e d b y b a n k s , t h e i n t e r e s t r a t e p a i d b y t h e i s s u e r o f t h e s e s e c u r i t i e s i s r e s e t p e r i odically depending on market co n d i t i o n s . T h e v a l u e o f t h e s e s e c u r i t i e s w i l l u s u a l l y r e m a i n a t or n e a r p a r b e c a u s e t h e i r i n t e r e s t r a t e s a r e r e s e t t o m a i n t a i n a current market yield. ST I P ’ s v a r i a b l e r a t e s e c u r i t i e s f l o a t t o e i t h e r t h e p r i m e r a t e o r t h e L o n d o n I n t e r b a n k O f f e r i n g R a t e ( L I B O R ) , w h i c h i s s i m i l a r to the European federal fu n d s r a t e . Ac c o r d i n g t o G A S B S t a t e m e n t N o . 3 1 , “ A c c o u n t i n g a n d F i n a n c i a l R e po r t i n g f o r C e r t a i n I n v e s t m e n t s a n d E x t e r n a l I n v e s t m e n t s P o o l s ” , STIP is considered an ex t e r n a l i n v e s t m e n t p o o l . A n e x t e r n a l i n v es t m e n t p o o l i s d e f i n e d a s a n a r r a n g e m e n t t h at p o o l s t h e m o n i e s o f m o r e t h a n o n e l e g a lly separate entity and invests, on t h e p a r t i c i p a n t s ’ b e h a l f , i n a n i n v e s t m e n t p o r t f o l i o . S T I P i s a l s o c l a s s i f i e d a s a “ 2 a 7 - l i k e ” p o o l . A 2 a 7 - l i k e p o o l i s a n e xt e r n a l i n v e s t m e n t p o o l t h a t i s n o t re g i s t e r e d w i t h t h e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n ( S E C ) a s a n i n v e s t m e n t c o m p a n y , b u t h a s a p o l i c y t h a t i t w i l l , a n d d o e s , operate in a manner co n s i s t e n t w i t h t h e S E C ’ s R u l e 2 a 7 o f t h e I n v e s t m e n t C o m p a n y A c t o f 1 9 4 0 . I f c e r t a i n c o n d i t i o n s a r e m e t , 2 a 7 - l i k e p o o l s a r e a l lowed to use amortized cost ra t h e r t h a n f a i r v a l u e t o r e p o r t n e t a s s e t s t o c o m p u t e u n i t v a l u e s . T h e B o a r d o f I n v e s t m e n t s , t h e r e g u l a t o r y a g e n c y w h i c h o v e r sees the pool, has adopted a po l i c y t o t r e a t S T I P a s a 2 a 7 - l i k e p o o l . A c c o r d i n g l y , t h e i n v e s t m e nt i n S T I P i s v a l u e d a t a m o r t i z e d c o s t a s o f J u n e 3 0 , 2 0 0 4 . T h e f a i r v a l u e o f t h e p o s i t i o n i n th e e x t e r n a l i n v e s t m e n t p o o l i s th e s a m e a s t h e v a l u e o f t h e p o o l s h a r e s a s o f J u n e 3 0 , 2 0 0 4 . 52 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 . S U M M A R Y O F S I G N I F I C A NT A C C OUNTI N G P O L I CI E S ( C O N T IN U E D ) Re s t ri c t e d C ash a n d E q u i v a l e n t s Ce r t a i n p r o c e e d s o f e n t e r p r i s e f u n d r e v e n u e b o n d s , as w e l l a s c e r ta i n r e s o u r c e s s e t a s i d e f o r t h e i r r e p a y m e n t , a r e c l a s s i f i e d a s r e stricted assets on the balance sh e e t b e c a u s e t h e i r u s e i s l i m it e d b y a p p l i ca b l e b o n d c o v e n a n t s . I m pac t f e e s c o l l e c t ed a n d l i n e - o v e r s i z i n g f e e s a r e r e s t r i c t e d f o r a p plicable use. Payments in li e u o f p a r k i n g a r e r e s t r i c t e d b y c o de f o r fu t u r e p a r k i n g r e l a t e d c a p i t a l p r o j e c t s . Us e o f E s t i ma t e s Th e p r e p a r a t i o n o f f i n a n c i al s t a t e m e n t s i n c o n f o r m it y w i t h ge n e r a l l y a c c e p t e d a c c o u n t i n g pr i nci p l e s r e q u i r e s mana g e m e n t t o m ake estimates and assumptions th a t a f f e c t c e r t a i n r e p o r t e d am ou n t s a n d d i s c l o s u r e s . A c c o rd i n g l y, ac t u a l r e s u l t s co u l d d i f f e r f rom t h o s e e s t i m at e s . El i m i n a t i o n s a n d R e c l a s s i fi c a t i o n s In t h e p r o c e s s o f a g g r e g a t i n g d a t a f o r t h e S t a t e m e n t o f N e t A ss e t s an d t h e S t a t e m e n t o f A c t i vi t i e s , s o me am ou n t s r e p o r te d a s i n terfund activity and balances in th e f u n d s h a v e b e e n e l i m in at e d o r r e c l a s s i f i e d . I n t e r n a l s e r v i ce f u n d a c t i v i t y h a s a l s o b e e n e li m i n a t e d i n t h e S t a t e m e n t o f A c ti v i t i e s t o r e m ove the “doubling- up ” e f f e c t . Ca p i t a l A s s e t s Th e C i t y ’ s a s s e t s ar e ca p i t al i z e d a t h i s t or i ca l c o s t o r e s t i mat e d h i st o r i c a l c o s t . C i t y p o l i c y ha s s e t t h e c api t a l i z a t i o n t h r e sh o l d f o r r e p o r t i n g c a p i t a l a s s ets at $5 , 0 0 0 . G i f t s o r c o n t r i b u t i o n s o f c a p i t a l a s s e t s a r e r e c ord e d a t f a i r ma r k e t v a l u e w h e n r e c e i v e d. D e p r e c i a b l e c a p i t a l a s s ets ar e r e p o r t e d o n t h e S t a t e ment of Net As s e t s, n e t o f a p p l i c a b l e ac c u mula t ed d e p r e c i a t i o n . C a p i t a l a s se t s w h i c h a r e no t d e p r e c i a b l e , s u c h a s l and , i n f r a s t r u c t u r e , a n d construction in progress are re p o r t e d s e p a r a t e l y . D e p r e c i a t i o n e x p e n s e i s r e p o r t e d i n S t a t e m en t o f A c t i v i t i e s a n d i s c a l c u l a t e d u s i n g t h e s t r a i g h t - l i n e m e t ho d b a s e d o n t he assets estimated us e f u l l i f e . De p r e c i at i o n i s r e c o r d e d o n a s t r a i g h t - l i n e b as i s o v e r t h e u s e f u l l i v e s o f t h e a s s e t s a s f o l l o w s : Bu il d i n g a n d s t r u c t u r e s 20 t o 5 0 y ea r s Improv em en t s 10 t o 2 5 y ea r s Ma ch i n e ry a n d e q u i p men t 5 t o 3 0 y ea r s Utili t y l i n es a n d i m prov em en t s 25 t o 5 0 y ea r s 53 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 1 . S U M M A R Y O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S ( C O N T I N U E D ) Ca p i t a l A s s e t s ( C o n t i n u e d ) In J u n e 1 9 9 9 , t h e G o v e r n m e n t a l A c c o u n t i n g S t a n d a r d s B o a r d ( G A S B ) i s s u e d S t a t e m e n t 3 4 w h i c h r e q u i r e s t h e i n c l u s i o n o f i n f r a s t r u c ture capital assets in local go v e r n m e n t s ’ b a s i c f i n a n c i a l s t a t e m e n t s . A c c o r d i n g t o G A S B 3 4 , t h e C i t y m u s t r e c o r d i n f r a s t r u c t u r e a s s e t s p r o s p e c t i v e l y f r o m t he date of implementation and ha s f o u r y e a r s t o i n c l u d e i n f r a s t r u c t u r e a c q u i r e d p r i o r t o i m p l e m e n t a t i o n . Th e C i t y d e f i n e s i n f r a s t r u c t u r e a s t h e b a s i c ph y s i c a l a s s e t s t h a t a l l o w t h e C i t y t o f u n c ti o n . T h e a s s e t s t o b e r e c o r d e d w i l l i nclude the street system, water pu r i f i c a t i o n a n d d i s t r i b u t i o n s y s t e m , s e w e r c o l l e c t i o n t r e a t m e n t s y s t e m ; p a r k a n d r e c r e a t i o n l a n d s a n d i m p r o v e m e n t s y s t e m , s t o r m water conveyance system, an d b u i l d i n g s c o m b i n e d w i t h t h e s i t e a m e n i t i e s s u c h a s p a r k i n g an d l a n d s c a p e d a r e a s ; a n d s t r e e t s , s i d e w a l k s , c u r b s , a n d s t r e e t li g h t s . Th e c o s t s o f n o r m a l m a i n t e n a n c e a n d r e p a i r s t h a t d o n o t a d d t o th e v a l u e o f t h e a s s e t o r m a t e r i a l l y e x t e n d a s s e t l i v e s a r e n o t capitalized. Improvements are ca p i t a l i z e d a n d d e p r e c i a t e d o v e r t h e r e m a i n i n g u s e f u l l i v e s o f t h e r e l a t e d f i x e d a s s e t s , a s a p p l i c a b l e . Co m p e n s a t e d A b s e n c e s P a y a b l e Ea r n e d b u t u n p a i d v a c a t i o n a n d s i c k p a y i s i n c l u d e d a s a l i a b i l i t y i n t h e p r o p r i e t a r y f u n d t y p e s a n d G o v e r n m e n t - W i d e F i n a n c i a l Statements. The portion re l a t i n g t o t h e g o v e r n m e n t a l f u n d t y p e s n o t e x p e c t e d t o b e p a i d w i t h e x p e n d a b l e a n d a v a i l a b l e re s o u r c e s i s n o t r e p o r t e d i n t h e go v e r n m e n t a l f u n d s t a t e m e n t s . In t e r f u n d R e c e i v a b l e s a n d P a y a b l e s Du r i n g t h e c o u r s e o f o p e r a t i o n s , n u m e r o u s t r a n s a c t i o n s o c c u r b e t w e e n i n d i v i d u a l f u n d s t h a t m a y r e s u l t i n a m o u n t s o w e d b e t w e e n f unds. Those short-term lo a n s r e l a t e d t o g o o d s a n d s e r v i c e s t y p e t r a n s a c t i o n s a r e c l a s s i f i ed a s “ d u e t o a n d f r o m o t h e r f u n d s ” . L o n g - t e r m i n t e r f u n d l o a ns (noncurrent portion) are re p o r t e d a s “ a d v a n c e s t o a n d f r o m o t h e r f u n d s ” . I n t e r f u n d r e c e i v a b l es a n d p a y a b l e s b e t w e e n f u n d s a r e e l i m i n a t e d i n t h e S t a t e m e nt of Net Assets. On - B e h a l f P a y m e n t s f o r F r i n g e B e n e f i t s On - b e h a l f p a y m e n t s f o r f r i n g e b e n e f i t s a r e d i r e c t p a y m e n t s m a d e b y o n e e n t i t y t o a t h i r d - p a r t y r e c i p i e n t f o r t h e e m p l o y e e s o f a nother legally separate entity. On - b e h a l f p a y m e n t s i n c l u d e p e n s i o n p l a n c o n t r i b u t i o n s . T h e S t a t e' s p e n s i o n c o n t r i b u t i o n i s r e c o r d e d a s a n i n t e r g o v e r n m e n t a l r e venue with an offsetting public sa f e t y o r g e n e r a l g o v e r n m e n t e x p e n d i t u r e s i n t h e Pe n s i o n S p e c i a l R e v e n u e F u n d . ( S e e N o t e 1 5 ) Bu d g e t s Ea c h y e a r , t h e C i t y M a n a g e r m u s t s u b m i t t o t h e C i t y C o m m i s s i on a p r o p o s e d o p e r a t i n g b u d g e t f o r a l l b u d g e t u n i t s w i t h i n t h e C i t y for the fiscal year co m m e n c i n g J u l y 1 . T h i s o p e r a t i n g b u d g e t i n c l u d e s p r o p o s e d e x p e n d it u r e s a n d t h e m e a n s o f f i n a n c i n g t h e m . P u b l i c h e a r i n g s a r e conducted to obtain citizen co m m e n t s o n t h e p r o p o s e d b u d g e t . T h e b u d g e t i s t h e n l e g a l l y a d o p te d t h r o u g h p a s s a g e o f t h e a p p r o p r i a t i o n r e s o l u t i o n b y t h e C i t y C o m m i s s i o n , b u t n o t b e f o r e th e s e c o n d M o n d a y i n A u g u s t . Bu d g e t s a r e l e g a l l y r e q u i r e d f o r a l l g o v e r n m e n t a l f u n d t y p e s . Th e s e b u d g e t s a r e p r e p a r e d o n t h e s a m e b a s i s a n d u s i n g t h e s a m e accounting practices as are used to a c c o u n t a n d p r e p a r e f i n a n c i a l r e p o r t s f o r t h e f u n d s . B u d g e t s p r e s e n t e d i n t h i s re p o r t f o r c o m p a r i s o n t o a c t u a l a m o u n t s a r e presented in accordance with ge n e r a l l y a c c e p t e d a c c o u n t i n g p r i n c i p l e s . A nn u a l a p p r o p r i a t e d b u d g e t s a r e ad o p t e d f o r a l l f u n d s a n d a l l a p p r o p r i a t i o n s l a p s e a t year end. The level of bu d g e t a r y c o n t r o l ( t h a t i s t h e l e v e l a t w h ic h e x p e n d i t u r e s c a n n o t l e g a l l y e x c e e d t h e a pp r o p r i a t e d a m o u n t ) i s e s t a b l i s h e d a t t h e fund type level. The City Co m m i s s i o n m a y a m e n d t h e b u d g e t d u r i n g t h e c o u r s e o f t h e f i s c a l y e a r , w i t h i n e a c h f u n d t y p e . 54 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 . S U M M A R Y O F S I G N I F I C A NT A C C OUNTI N G P O L I CI E S ( C O N T IN U E D ) Bu d g e t s ( C o nti n u e d ) An y a c c r u i n g r e v e n u e o f t h e m un i c i p a l i ty n o t a p p r o p r i a t e d a n d a n y b a l a n ce a t an y t i m e r e ma i n i n g a f t e r t h e p u r p o s e o f a n a p p r o p r iation has been satisfied or ab a n d o n e d m a y f r o m t i me t o t i me b e a p p r o p r i a t e d t o o t h e r u s e s t hat d o n o t c o n f l i c t w i t h a n y u s e s f o r w h i c h s p e c i f i c a l ly t h e r e v enue was accrued. A public he a r i n g i s r e q u i r e d f o r a n o v e r a l l i n c r e a s e i n a p p r o p r i a ti o n a u t h o r i t y , e x c e p t i n t h e c a s e o f a n e m e r g e n c y . Th e C i t y C o mm i s s i o n d e l e g a t e d i n i t s a n n u a l ap p r o pria t i o n r e s o l u t i o n , b ud g e t a men d men t a u th o r i t y t o t h e Ci t y M a n a g e r , f o r t h e e xpenditure of funds from any or a l l o f t h e f o l l o w i n g : d e b t s e r v i c e f u n d s , e n t e r p r i s e f u n d s , i n t e r n a l s e r v i c e f u n d s , t r u s t f u n d s , f e d e r a l a n d s t a t e g r a n t s a c ce p t e d a n d a p proved by the governing bo d y , s p e c i a l a s s e s s m e n t s , a n d d o n a t i o n s . I n a l l ot h e r f u n d s , th e C it y M a n a g e r ma y , w i t h o u t ap p r o v a l f r o m t h e C i t y C o m m i s s i o n , make budget amendments as lo n g a s t h e t o t a l a p p r o p r i a t ion f o r t he f u n d g r o u p i s no t e x c e e d e d . Sp e n d i n g c o n tro l i s e s t a b l i s h e d b y t he t o t al a m ou n t o f ex p e n d it u r e s b u d g e t e d f o r th e f u n d t yp e , b u t m ana g e m e n t may e x e r c i s e co n trol at budgetary line items. Fo r t h e yea r e n d e d J u n e 3 0 , 2 0 0 4 e x p e n d i t u r e s e x ce e d ed a p p r o p r i a t i o n s i n th e f o l l o w i n g f u n d s : Fund D escri p t i o n Am oun t Ge n e r a l 11 4 , 5 80 $ Bu il d i n g I nsp e c t i o n 16 5 , 9 50 St r e e t L i g hti n g 1, 2 62 G. O . B o n ds D e b t S e r v ic e 37 7 , 6 94 De p a r t m ent a l S pec i a l R e v enu e s 29 5 , 2 62 Pa r k L a n d 8, 0 00 Dr u g F o r f e i t u r e 38 , 3 71 Be a u t i f i c a t i o n o f B o z eman 5, 8 42 Co ns o l i d at e d P ark in g D i s t r i c t s 7, 0 55 SI D R e v olv in g 56 , 2 84 SI D S i n k in g F u nd 65 , 8 15 Fo r t h e yea r e n d e d J u n e 3 0 , 2 0 0 4 e x p e n d i t u r e s e x c e e d ed a p p r o p r i a t i o n s i n t h e fo l l o w i n g f u n d t y p e s : Fu nd T ype Am oun t Ge n e r a l 11 4 , 5 80 $ De b t S e r v ic e 49 9 , 7 93 55 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 2 . C A SH A N D E QUI V A L E NTS At J u n e 3 0 , 200 4 , th e c a r r y ing a m ou n t of t h e C i t y's d e p o s i t s i n lo ca l b a n k s i s $ 1 , 8 7 6, 6 5 0 a n d t h e b a n k b a la n c e i s $ 3 , 1 63 , 0 18 . Of the bank balance, $100,000 wa s c o v e r e d by f e d e r a l d e p o s i t o r y i nsu r ance a n d u p t o $ 4 , 00 0 ,0 0 0 wa s c o v e r e d by c o l l a te r a l h e l d b y t he p l ed g i n g ba n k ' s a g e n t i n the City's name. At J u n e 3 0 , 2 0 0 4 , t he C i t y h a d i n v e s t m e n t s i n t h e S t at e S h o r t - Te r m I n v e s t ment P o o l ( S T I P ) , i n a n o n - n e g o t i a b l e r e p u r c h a s e a g r e e ment, and in various United St a t e s g o v e r n m e n t b o n d s , as a l l o w e d b y S t a t e l a w . Al l i n v e s t ment s he l d b y t he C i t y a r e c l a s s i f i e d i n t h e a c c o mpan y ing b a l a n c e sheets as cash equivalents, as de f i n e d b y t he C i t y ’ s p o li c y i n N o t e 1 . Th e C i t y 's i n v e s t ment s a r e c a t eg o r i z e d a s ei t h e r ( 1 ) i n s u r e d o r re g i s t e r e d , o r se c u r i t i e s h e l d b y t h e C i t y o r i t s a g e n t i n t h e City's name, (2) uninsured and un r e g i s t e r e d , w i t h s e c u r i t i e s h e l d b y t h e co u n t e r p a r t y's t r u s t d e p a rt m e n t o r a g e n t i n t h e C i t y's na m e o r ( 3 ) u n i n s u r e d a n d un r e gi s t e r e d , w i t h s e c u r i t i e s h e l d b y the co u n t e r p a r t y, o r b y i t s t r u s t d e p a r t m ent or a g e n t b u t no t i n t he Ci t y 's n a m e. T h e C i t y ’ s i n v e st m ent i n b o n ds i s c o n s i d e r e d a c a te g o r y 2 i n v e s t m ent. The City’s no n - n e g o t i a b l e r e p u r c h a s e ag r e e m e n t i s st a t e d a t c o s t , a n d i s c o n s id e r e d a c a t eg o r y 2 i n v e s t ment . T h e C i t y’s i n v e s t ment i n S T I P is considered an investment in an e x t e r n a l i n v e s t ment p o o l , a n d a c c o r d i n g l y, ha s n o t be e n c a t e g o r i z e d . Th e C i t y ’ s c a s h a n d i n v e s t m e n t s a r e r e p o r t e d a s f o l l o w s : Go vern m ent a l a c t i v it i e s 26 , 12 2 , 9 38 $ Bu s i n e s s - ty pe a c t i v it i e s 24 , 79 3 , 6 25 Fi d uci a r y f u n d s 10 7 , 6 2 0 51 , 02 4 , 1 83 $ A s u mm a r y o f t h e C i t y’s depo s i t s a n d i n ve s t ment s a s of J u n e 3 0 , 2 00 4 i s a s f o l l ow s : De m and d epo s i t s 1,87 6 , 6 5 0 $ Ca s h w i t h f i s c a l a g en t 3,36 6 , 5 9 5 Pe t t y c a s h 3,9 9 3 Bo n ds 13 , 99 9 , 9 99 No n- ne g oti a b l e r e p u r c h a s e a g re e m en t 1,47 6 , 9 4 6 St a t e S h o rt- Term I nvest m ent P o o l 30 , 30 0 , 0 00 51 , 02 4 , 1 83 $ 56 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 3 . P R O P E R T Y T A X C A L E N D A R Re a l p r o p e r t y t a x e s a r e a s s e s s e d a n d c o l l e c t e d e a c h f i s c a l ye a r a c c o r d i n g t o t h e f o l l o w i n g p r o p e r t y t a x c a l e n d a r : L i e n D a t e D e c e m b e r 1 f o r t h e 1 st i n s t a l l m e n t a n d J u n e 1 f o r t h e 2 nd i n s t a l l m e n t L e v y D a t e N o v e m b e r 1 D u e D a t e s N o v e m b e r 3 0 f o r t h e 1 st i n s t a l l m e n t a n d M a y 3 1 f o r t h e 2 nd i n s t a l l m e n t Pe r s o n a l p r o p e r t y t a x e s a r e a s s e s s e d o n J a n u a r y 1 o f e a c h y e a r a nd b i l l e d M a y a n d N o v e m b e r , w i t h p a y m e n t d u e w i t h i n t h i r t y d a y s . Ga l l a t i n C o u n t y c o l l e c t s a l l p r o p e r t y t a x e s o n b e h a l f o f t h e C i t y a n d r e m i t s c o l l e c t i o n s , i n c l ud i n g p e n a l t i e s a n d i n t e r e s t , o n a monthly basis. The County as s e s s e s a d e l i n q u e n c y p e n a l t y o f 2 % . I f t a x e s b e c o m e d e l i n q u e n t th e C o u n t y t a x c o l l e c t o r m a y s e l l t h e p r o p e r t y t o c o l l e c t t a x es due plus .83% per month in t e r e s t . In t h e f u n d f i n a n c i a l s t a t e m e n t s , t h e C i t y a c c r u e s a s r e c e i v a b l e a l l p r o p e r t y t a x e s r e c e iv e d d u r i n g t h e f i r s t s i x t y ( 6 0 ) d a y s o f t h e n e w f i s c a l y e a r f r o m G a l l a t i n Co u n t y , i n a c c o r d a n c e w i t h t h e m o d i f i e d a c c r ua l b a s i s . I n t h e g o v e r n m e n t - w i d e f i n a n c ia l s t a t e m e n t s , a l l t a x e s b i l l e d , b u t n o t yet collected are accrued in ac c o r d a n c e w i t h t h e f u l l a c c r u a l b a s i s o f ac c o u n t i n g , a s d e s c r i b e d i n N o t e 1 . NO T E 4 . S P E C I A L A S S E S S M E N T S R E C E I V A B L E / D E F E R R E D R E V E N U E S Sp e c i a l a s s e s s m e n t s r e c e i v a b l e r e p r e s e n t t h e u n c o l l e c t e d a m o u n t s l e v i e d a g a i n s t b e n e f it e d p r o p e r t y f o r t h e c o s t o f l o c a l i m p r o v ements. Assessments are pa y a b l e o v e r a p e r i o d o f 1 8 t o 2 0 y e a r s a n d b e a r i n t e r e s t o f 5% t o 1 4 % . R e c o g n i t i o n o f t h e r e v e n u e s f r o m t h e s e a s s e s s m e n t s h a s been deferred until both me a s u r a b l e a n d a v a i l a b l e i n g o v e r n m e n t a l f u n d s . I n t h e G o v e r n m e n t - W i d e F i n a n c i a l S t a t e m e n t s , h o w e v e r , t h e s e a m o u n t s a r e r e p o r t ed as revenues in the period th e y a r e l e v i e d . O n c e r e c e i v e d , t h e m o n i es w i l l b e u s e d t o m e e t t h e a n n u a l d e b t se r v i c e r e q u i r e m e n t s o n r e l a t e d b o n d s . D e f e r r ed r e v e n u e s i n t h e G e n e r a l F u n d re p r e s e n t o u t s t a n d i n g g e n e r a l p r o p e r t y t a x e s a t J u n e 3 0 , 2 0 0 4 . A g a i n , t h e s e a m o u n t s a r e re p o r t e d a s r e v e n u e i n t h e G o v e r n m e n t - Wide Financial Statements in th e p e r i o d i n w h i c h t h e y a r e l e v i e d . D e f e r r e d r e v e n u e s i n S p e c i al R e v e n u e F u n d s r e p r e s e n t e i t h e r r e v e n u e s r e c e i v e d b u t n o t c o n sidered earned or amounts to be re c e i v e d i n t h e f u t u r e t h a t a r e r e c o r d e d a s r e c e i v a b l e s b u t n o t y e t e a r n e d . T h e d e f e r r e d r e v e n u e s i n D e b t S e r v i c e F u n d s r e p r e s ent future assessments to be re c e i v e d t o m e e t t h e r e l a t e d d e b t o b l i g a t i o n . 57 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 5 . P R E P A I D R E N T ( O P E R A T I N G L E A S E ) On O c t o b e r 2 2 , 1 99 2 , t he C i t y s i g ned a memo r a n d u m o f u n d e r s t a n d i n g wi t h Ga l l a t i n C o u n t y, M o nt a n a , i n w h i c h t h e C i t y a g r e e d t o l ease space from the Co u n t y's L a w a n d J u s t i c e C e n t e r f o r th e C i t y P o l i ce D e p a r t m e n t a n d M u n i c ipa l C o u r t . T h e C i t y p a i d t o t h e C o u nty $ 7 65 , 0 00 during the renovation of the bu i l d i ng w h i c h s t a r t e d 1 9 9 3 . T h e $ 7 6 5 , 0 0 0 c o ns t i t u t es r e n t f o r f o u r r e n t a l t e r ms o f t e n yea r s e a c h . D u r i n g t h e t e r m o f t h e l e as e a n d r e n e w a l o f t h e l e a s e, the pr i n c i p a l b a l a n c e o f $ 7 6 5 , 0 0 0 w i l l b e d e c r e a s e d b y e q u a l a n n u a l r e n t a l p a y men t s i n t h e am ou nt o f $ 1 9 , 1 2 5 . I f t h e C i t y an d C o u n ty mutually agree to terminate th e l e a s e af t e r t h e f i r s t o r s e c o n d t e n yea r t e r m, t h e C o u n t y w i l l re f un d $ 5 7 3 , 7 5 0 o r $ 3 8 2 , 5 0 0 , r e s p ec t i v e l y , t o t h e C i t y f or t he u n u s e d portion of the rent. The le a s e b e g a n wh e n r e n o v a t i o n s w e r e c o m plete o n No v e m ber 1 , 1 9 9 4 . F o r t h e ye a r e n d e d J un e 3 0 , 2 0 0 4 , r e nt e x p e n d i t ure w a s $ 1 9 , 1 2 5 regarding this lease. NO T E 6 N O T E S R E C E I V A B L E Th e C i t y o f B oze m an h a d t h e f o l l o w i n g lo a n s i n s p e c i a l r e v e n u e f u n d s : Sp e c i a l R evenu e F u n d s : Co m mun i t y D e v elo p m en t L o a n F u n d : Low c o st h o u si n g r e n o v at io n o r c o n s t r u cti o n 210 , 2 4 0 $ Econ o m ic d e v elo p m en t 938 , 4 8 1 $ Co m mun i t y H o u s i n g F u n d Low c o st h o u si n g r e n o v at io n o r c o n s t r u cti o n 112 , 0 8 3 $ Co n s o l i d a t e d P a r k in g D i s t r i c t s Paymen ts i n l i e u o f pa r k in g s p a c e s 1, 7 3 9 $ En t e r p r i s e F u n d s Wa t e r F u n d Note r e ce i v able r e l a te d t o wate r m ain e x te n s i o n t o a lo w co s t h o us i n g p roj ec t . T he or i g in a l n o t e wa s f o r $ 7 0 , 0 00 , due i n se m ian nu a l p rin c i p a l p a y men t s , w it h i n te r e s t a cc r u i n g at 1 0 % , o n l y if p a y men t s a r e n o t made i n a t i m el y m att e r . 36 , 0 0 0 $ 58 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 7 . C A P I T A L A S S E T S In a c c o r d a n c e w i t h G A S B 3 4 , t h e C i t y ha s r e p o r t e d a l l c a p i t a l a s s e ts , w i t h t h e e x c e p t i o n o f pr e - J u l y 1, 2 0 0 1 i nfr a s t r u c t u r e i n th e G o v e r n m e n t - W i d e S t a t e ment of N e t A s s e t s. T h e a s s e t s a r e r e p o r t e d w h e r e b y a c c u m ula t ed d e p r e c i at i o n a n d d e p r e c i a t i o n e x p e n s e h a v e b e e n r e c o r d e d . F o r t h e year ended June 30, 2004, de p r e c i a t i o n e x p e n s e o n c a p i t a l a s s e t s wa s c h a r g e d t o t h e f u n c t i o n s a n d p r o g r a ms a s f o l l o w s : Govern m ent a l A cti v it i e s : Ge n e r a l G o v ern m ent 242 , 6 1 6 $ Pu b l i c S a f e t y 411 , 1 6 1 Pu b l i c S e r v ic e s 1, 0 52 , 7 6 6 Pu b l i c W e l f a r e 390 , 3 3 1 To t a l de p r e c i at i o n e xp e n s e - g overn m ent al a c t i v it i e s 2,0 96 , 8 7 4 $ Busine s s - type A cti v it i e s : Wa t e r 1,2 65 , 3 1 4 $ Wa s t e W a t e r 1,1 90 , 0 7 2 So l i d W a s t e 581 , 9 4 6 To t a l de p r e c i at i o n e xp e n s e - b u s i n es s - ty pe a c t i v it i e s 3,0 37 , 3 3 2 $ 59 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 7 . C A P I T A L A S S E T S ( C O N T I N U E D ) Al l c a p i t a l a s se t s o f t h e C i t y a r e d e p r e c i ab l e w i t h t h e e x c e p t i o n of l a n d . C a p i t a l a s s e t s o f t h e C i t y f o r t h e ye a r e n d e d J u n e 30 , 2 0 04, consisted of the following: Jun e 3 0 , 2 0 0 3 Add i t i o ns Disp o sal s June 30, 2004 Govern m ent a l A cti v it ie s : La n d 5, 3 4 5 , 15 7 $ 1, 1 5 5 ,3 1 9 $ - $ 6,500,476 $ Bu i l d in g s 6, 6 8 5 , 45 2 1, 6 8 7 ,4 7 5 (8 1 5,1 7 3 ) 7,557,754 Ot h e r s t r u c t u r e s a n d i m pr o v em en t s 64 6 , 2 55 21 5 ,9 3 0 - 862,185 Ma c h i n e r y a n d e q ui p m en t 5,0 4 1 , 79 0 67 5 ,7 6 2 - 5,717,552 Pr o p er t y u n de r c a p i t a l l e a s e - 15 4 ,9 9 2 - 154,992 Vehi c l e s 1, 6 4 8 , 68 8 26 2 ,5 7 2 (2 6, 2 2 7 ) 1,885,033 Infr a s t r u c t u re 15,38 5 , 6 40 86 3 ,2 2 7 - 16,248,867 Tota l 34,75 2 , 9 82 5, 0 1 5 ,2 7 7 (8 4 1,4 0 0 ) 38,926,859 Ac c u mula t e d d e p rec i a t i o n (19 ,6 0 4 , 05 8 ) ( 2 , 0 9 6 ,8 7 4 ) 50,6 8 1 (21,650,251) Tota l g overn ment a l a c t i v it i e s 15,14 8 , 9 24 $ 2, 9 1 8 ,4 0 3 $ (7 9 0,7 1 9 ) $ 17,276,608 $ Busi n e s s - ty pe A cti v it ie s : La n d 1 , 7 0 1 , 46 5 $ 3, 0 6 6 ,5 5 2 $ - $ 4,768,017 $ Wa t e r r i g hts 26 3 , 4 94 - - 263,494 Bu i l d in g s 5, 9 6 8 , 77 1 1, 0 3 2 ,9 4 0 - 7,001,711 Ot h e r s t r u c t u r e s a n d i m pr o v em en t s 26 ,5 2 8 , 4 45 1, 3 6 0 ,3 4 1 - 27,888,786 Ma c h i n e r y a n d e q ui p m en t 3,5 7 0 , 33 0 34 9 ,7 9 4 - 3,920,124 Pr o p er t y u n de r c a p i t a l l e a s e 43 2 , 2 90 - - 432,290 Vehi c l e s 1, 5 8 7 , 32 0 82 ,0 9 7 (1 1, 1 1 4 ) 1,658,303 Infr a s t r u c t u re 11,47 2 , 3 47 1, 8 4 6 ,0 2 8 - 13,318,375 Tota l 51,52 4 , 4 62 7, 7 3 7 ,7 5 2 (1 1, 1 1 4 ) 59,251,100 Ac c u mula t e d d e p rec i a t i o n (29 ,8 6 4 , 04 3 ) (3 , 0 3 7 ,3 3 2 ) 11,1 1 4 (32,890,261) Tota l b usi n e ss - ty pe a c t i v it i e s 21,66 0 , 4 19 $ 4, 7 0 0 ,4 2 0 $ - $ 26,360,839 $ Tota l c a p i t a l a s s e t s 36 ,8 0 9 , 3 43 $ 7, 6 1 8 ,8 2 3 $ (7 9 0,7 1 9 ) $ 43,637,447 $ 60 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 8 . A R B I T R A G E R E B A T E P A Y A B L E Se c t i o n 1 4 8 ( f ) o f t h e I R C p r o v i d e s t h a t an i s s u e r o f c e r t a i n b o n d s must p a y t o the U . S . G o v e r n m e n t ( 1 ) t h e e x c e s s o f ( a ) t h e a m ount earned on all non-purpose in v e s t ment s ma d e wi t h g r os s p r o c e e d s of a n i s s u e o f t a x - e x e m pt bon d s o v e r ( b ) t h e a m ou n t t hat w o u l d h a v e b e e n e a r n e d i f s u c h n o n-purpose investments had be e n i n v e s t e d a t a r a t e e q u a l t o t h e yiel d on t h e i ss u e , pl u s ( 2 ) a n y in c o m e at t r i b u t a b l e t o t h e e x c e s s . Th e G . O . T r a n s p o r t a t i o n P r o j e c t s B o n ds i s s u e d i n 19 9 5 b y t he C i t y m ee t t h e I R C g u i d e l i n e s o f mun i c i p a l b o n d i s s u e s . An a r b itrage rebate liability of $0 ex i s t e d a s o f Ju n e 3 0 , 2 0 04. N o r e b a t e p a y men t w a s ma d e i n f i s c al y ea r 2 0 0 4 . Th e C i t y i s n ot r e q u i r e d t o make a n o t h e r r e b a t e p ayment until fiscal year 2006 if a l i a b i l i t y w e r e t o e x i s t . NO T E 9 . C O M P E N S A T E D A B S E N C E S Th e C i t y ’ s p o l i c y r e l a t i n g t o c o m pen s a te d a b se n c e s i s d e s c r i b e d i n N o t e 1 . A s s h o w n in t h e t a b l e b e l o w , t h e l o n g - t e r m p o r t i o n of the debt, amounting to $4 8 1 , 7 6 6 f o r go v e r n m ent a l a c t i v i t i e s a n d $ 1 4 7 , 1 8 1 f o r b u s i n e s s - t y p e a c t i v i t i e s a t Ju n e 3 0 , 2 0 04 , i s e x p e c t e d t o b e p a i d i n fu t u re years from future resources. In pr i o r yea r s , c o m pen s a t e d a b s e n c e s h a v e b e e n l i q u i d a t e d p r i m a r i l y by t he g e n e r a l f u n d a n d t h e p r o p r ie t a r y f u n d s . T h e t o t a l a m ounts outstanding at June 30, 20 0 4 , w e r e $ 1 , 2 5 7 , 7 6 6 f o r g o v e r n ment a l a c t i v i t i e s a n d $ 3 6 2 , 1 8 1 f or b u s i n e s s - t y p e a c t i v i t i e s . Ba l a n c e J un e 3 0 , 20 0 3 Inc u r r e d Sat i s f i e d Ba l a n c e J une 30, 2004 Compen s a te d a b se n c e s Govern m ent al A cti vit i e s $ 1 , 1 41 , 8 6 3 $ 8 91 , 9 5 4 $ ( 7 76 , 0 5 1 ) $ 1 , 2 57,766 Busi n ess - ty pe A cti v it i e s : 332 , 6 5 9 258 , 9 4 3 (2 15 , 3 3 8 ) 376,264 Tota l c o m pen s a t e d a b s e n ce s 1, 4 74 , 5 2 2 $ 1, 1 50 , 8 9 7 $ (9 91 , 3 8 9 ) $ 1,634,030 $ Due w it h in o n e ye ar Due a f t e r o n e ye ar Total Compen s a te d a b se n c e s Govern m ent al A cti vit i e s $ 7 76 , 0 0 0 $ 4 81 , 7 6 6 $ 1 , 2 57 , 7 6 6 Busi n ess - ty pe A cti v it i e s : 260 , 6 0 5 115 , 6 5 9 376 , 2 6 4 Tota l c o m pen s a t e d a b s e n ce s 1, 0 36 , 6 0 5 $ 597 , 4 2 5 $ 1, 6 34 , 0 3 0 $ 61 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 0 . L O N G - T E R M DE B T Go v e r n m e n t al A c t i v i t i e s L o n g T e r m De b t Th e f o l l o w i n g i s a s u m m a r y o f l o n g - t e r m d e b t t r a n s a c t i o n s o f t h e Ci t y ’ s g ov e r n me n t a l a c t i v i t i e s f o r t h e y ear e n d e d J u n e 3 0 , 20 0 4: Bala n c e J un e 30 , 20 03 Iss u a n c es Rep ay ments Ba l a n c e J une 30, 2004 Ge n era l o bli g at i o n b o n ds $ 1 1,2 7 5 , 00 0 $ - $ ( 3 1 5 ,0 0 0 ) $ 1 0 ,960,000 Sp e c i a l a s s e s s m en t d e b t 5,15 2 , 0 00 - (1 , 0 0 2 ,2 0 0 ) 4,149,800 No te s p a y abl e 37 7 , 7 61 - (6 9 ,36 4 ) 308,397 Tota l s 16 ,8 0 4 , 7 61 $ - $ (1 , 3 8 6 ,5 6 4 ) $ 15,418,197 $ Th e a b o v e l o n g - t e r m d e b t of t h e C i t y’s go v e r n m ent a l a c t i v i t i e s is p r e s e n t e d i n t h e a c c o mpan y ing S t a t e m e n t o f N e t A s s e t a s f o l l o ws: Curren t P ort i o n (D ue w it h i n o n e yea r ) Long-ter m P ort i o n (D ue a f t e r o ne y ear) To t a l Lon g T e r m D e b t Ge n era l o b li g at i o n b o n d s $ 3 , 7 2 0, 0 0 0 $ 7 ,24 0 , 0 0 0 $ 1 0,9 6 0 , 00 0 Sp e c i a l a s s e s s m en t d e b t 25,0 0 0 4, 12 4 , 8 0 0 4, 1 4 9 , 8 00 No t e s p a y abl e 72, 7 6 9 23 5 , 6 2 8 30 8 , 3 97 3, 8 1 7, 7 6 9 $ 11 , 60 0 , 4 2 8 $ 15,4 1 8 , 1 97 $ 62 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 0 . L O N G - T E R M DE B T ( C O NTIN U E D ) Go v e r n m e n t a l A c t i v i t i e s L o n g T e r m De b t ( C o n t i nu e d ) Ge n e r a l O b l i g a t i o n Bo n d s - T h e C i t y i s s u e s g e n e r a l ob l i g a t i o n b o n d s t o p r o v i d e f u n d s f o r t h e a c q u i s i t i o n a n d co n s t r u c t i o n o f m ajor capital facilities. General ob l i g a t i o n b o n d s a r e d i r e c t o b l i g a t i o n s o f t h e C i t y a n d a r e b a c k ed b y t he f u l l f a i t h a n d c r e d i t o f t h e C i t y . G e n e r a l o b l i g a t i o n b o nds currently outstanding are as fo l l o w s : Inte r e s t R ate Amoun t Due within one year Tran s p o r t a t i o n P roj ec t Bo n d s , S e r i e s 1 9 9 5 s e r i a l m atu ri t i e s t h r o u g h 2 0 1 4 4. 80 % - 7.0 0 % 3, 56 5 , 0 0 0 $ 3,565,000 $ Tran s p o r t a t i o n P roj ec t Re f u n din g B on d s , S eri e s 2 00 3 b se r i a l m atu r i t i e s t h ro u g h 2 0 1 4 1. 30 % - 3.7 5 % 3, 48 0 , 0 0 0 - Li b rar y P r o j ec t B on d s , S e r i e s 2 0 0 2 se r i a l m atu r i t i e s t h ro u g h 2 0 2 2 3. 50 % - 5.0 0 % 2, 23 0 , 0 0 0 90,000 Li b rar y P r o j ec t B on d s , S e r i e s 2 0 0 3 a se r i a l m atu r i t i e s t h ro u g h 2 0 2 1 1. 25 % - 4.4 0 % 1, 68 5 , 0 0 0 65,000 Tota l g ene r a l o b l i g at i o n s b o n d s 10 , 96 0 , 0 0 0 $ 3,720,000 $ An n u a l d e b t s erv i c e r e q u i r e m e n t s t o matu r i t y f o r ge n e r a l o b l i g a t i o n b o n ds a r e a s fo l l o w s : Pr i n c i p al Inter e s t Tot a l Ye a r e n d i n g J une 3 0 , 20 0 5 $ 3 , 7 20 , 0 0 0 $ 4 4 4 ,0 7 4 $ 4 ,16 4 , 0 74 20 0 6 440 , 0 0 0 24 7 ,4 1 3 68 7 , 4 1 3 20 0 7 475 , 0 0 0 23 8 ,3 2 0 71 3 , 3 2 0 20 0 8 485 , 0 0 0 22 7 ,1 9 5 71 2 , 1 9 5 20 0 9 500 , 0 0 0 21 4 ,2 0 0 71 4 , 2 0 0 201 0 - 201 4 2, 8 30 , 0 0 0 81 0 ,9 7 9 3, 64 0 , 9 7 9 201 5 - 201 9 1, 6 35 , 0 0 0 35 4 ,0 1 4 1, 98 9 , 0 1 4 202 0 - 202 2 875 , 0 0 0 63 ,1 2 8 93 8 , 1 2 8 10 , 9 60 , 0 0 0 $ 2, 5 9 9 ,3 2 3 $ 13 , 55 9 , 3 2 3 $ 63 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 0 . L O N G - T E R M DE B T ( C O NTIN U E D ) Go v e r n m e n t a l A c t i v i t i e s L o n g T e r m De b t ( C o n t i nu e d ) Sp e c i a l A s se s smen t D ebt - S p e c i a l a s s e s s m en t b o n d s a r e p a y abl e f r o m t h e co l l e c t i o n o f s p ec i a l a s s e s s m e n t s l e v i e d a g a i n s t b e n e f i t e d p r o p e r t y owners within the sp e c i a l i mpr o vemen t d i s t r i c t . T o t h e e x t e nt t h a t s u c h s p e c i a l a ss e ssmen t c o l l e ct i o n s a r e n o t s u f f i c i e n t t o m a k e t h e r e q u i r e d d eb t s e r v i c e p a y ments, the City is ob l i g a t e d t o l evy a n d c o l l e ct a g e n e r a l p r o p e r t y t a x o n a l l t a x a bl e p r o p e r t y i n t h e C i t y t o p r o vid e a d d i t i o nal f u n d i n g f o r t h e de b t s e r v i c e p a y ments. The cash ba l a n c e i n t h e S I D R e v o l v i n g F u n d m ust e q u a l a t l e a s t 5 % o f t h e pr i n c i p a l a m ou n t o f b o n d s o u t s t a n d i n g . I f t h e c a s h b a l a n c e i s less than 5%, a levy is required to b r i n g t h e c as h b a l a n c e t o t h e r e q u i r e d m ini m um. Th e C i t y h a s i s s u e d v a r i o u s s p e c i a l as s e s s me n t b o n d s w i t h v a r i o u s matu r i t i e s t h r o u g h 20 2 1 a t i n t e r e s t r ate s r ang i n g fr o m 5 % t o 14%. Annual debt service re q u i r e m ent s to m atu r i t y f o r s p e c i al a s s e s s m e n t b o n d s a r e a s f o l l o w s : Pr incipa l Ye a r e n d ing J un e 3 0, 20 05 $ 25 , 0 0 0 20 06 186 , 2 0 0 20 07 326 , 2 0 0 20 08 368 , 2 0 0 20 09 355 , 2 0 0 Ther e a f t e r 2,8 89 , 0 0 0 4, 1 49 , 8 0 0 $ Su b s t a n t i a l l y al l s p e c i a l as s e s s m e n t b o n d s matu re ei g h t e e n t o t w e n t y yea r s a f t e r t h e d a t e o f i s s u a n c e b u t a r e r e d e e m a b l e a t t h e o p t i o n of the City whenever cash is a v a i l a b l e i n t h e r e s p e c t i v e f u n d s f o r ea c h i s s u e . T h e C i t y f o l l o w s t h e p o l i c y of e a r l y r e d e m pti o n o n t h e s e b o n d s . A c c o r d i n gl y , a schedule of future interest pa y men t s t h r o u g h m atu r i t y o f t h e bo n ds i s d e e m e d t o b e n o t m ea n i n g f u l a n d h as b e e n e x c l u d e d . Th e n e t r e v e n u e s o f t h e w a t e r f u n d h a v e be e n p l e d g e d a s c o l l a t e r a l to s e c u r e t h e d e b t s e r v i c e r e l a t e d t o S I D 6 6 5 . T his c o l lat e ra l i s s u b ordinate to commitments ma d e p r i o r t o J u l y 1 2 , 1 9 9 3 t o p l e d g e t h i s c o l l a t e r a l as a g u a r a nt e e o f t h e p a y m e n t o f o t h e r d e bt . I n t h e ev e n t t h a t t h e r e s o u r ce s available to service related to SI D 6 6 5 d e b t a r e i n s u f f i c i e n t , t h e C i t y s h a l l t r a n s f e r a m ou n t s f r o m t h e wa t e r f u n d t o s a t i sfy t h i s o bli g at i o n . T h e Di s t r i c t w i ll be under no obligation to re i m bu r s e t h e w a t e r f u n d f o r a n y s u c h t r an s f e r . A t t h i s t i m e, t h e C i t y d o e s n o t a n ti c i p a t e t h e n e e d t o m a k e a n y s u c h t r a n s fer s . 64 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 0 . L O N G - T E R M DE B T ( C O NTIN U E D ) Go v e r n m e n t a l A c t i v i t i e s L o n g T e r m De b t ( C o n t i nu e d ) No t e s P a y abl e - N o t e s p a y a b l e a t J u n e 3 0 , 2 0 04 a r e a s f o l l o w s : Due w it h i n o n e yea r Due a f t e r o ne yea r Total No t e p a y abl e t o Mo n t a n a B o a r d o f I nvest m ent s i n u n e v en se m i-ann u al i n s t al l m en ts i n c l ud i n g i nte r e s t a t v ariab l e r ate s th r o ug h F ebr u a r y 2 0 0 8 72 , 76 9 $ 23 5 , 6 28 $ 308,397 $ Bu s i n e s s-t y p e A c t i v i t i e s Lo n g T e r m De b t Re v e n u e B o n d s - T h e C i t y al s o i s s u e s b o nd s w h e r e t h e C i t y p l e d g e s i n c o m e d e ri v e d f r o m t h e ac q u i r e d o r c o ns t r uc t e d a s s et s t o p a y debt service. Revenue bonds ou t s t a n d i n g a t J u n e 3 0 , 20 04 a r e a s f o l l o w s : Ba lance Jun e 3 0 , 2 0 03 Issu a n c e s Rep ay ments Bala n c e Jun e 3 0, 2 0 0 4 Re v enu e b o n d s $ 1 , 9 9 5 ,5 7 8 $ - $ ( 4 1 3 , 2 79 ) $ 1 ,58 2 , 2 99 Capit a l l e as e s 29 2 ,3 2 9 - (8 1 , 3 56 ) 210 , 9 7 3 Tota l s 2, 2 8 7 ,9 0 7 $ - $ (4 9 4 , 6 35 ) $ 1, 79 3 , 2 7 2 $ Inte r e s t R a t e Am ou n t Wa t e r S y st e m R e f u n d i n g R e venue B o nd s , S e r i e s 1 9 95 , s e r i a l m atu r i t i e s t h ro u g h D ec e m ber 2 0 0 6 4.0 % - 6. 5 % 1,13 0 , 0 00 $ Wa t e r S y st e m R e f u n d i n g R e venue B o nd s , S e r i e s 1 9 95 , se r i a l m atu r i t i e s t h r o u g h 2 01 4 4. 9% 27 5 , 9 62 Wa t e r S y st e m R e f u n d i n g R e venue B o nd s , S e r i e s 1 9 95 , se r i a l m atu r i t i e s t h r o u g h 2 02 2 4. 9% 17 6 , 3 37 Tota l r e v enu e bo n d s 1,5 8 2 , 2 99 $ Sh o wn o n th e a c c o m pa n yin g f i n a n c i a l s t a t e m en t s a s : Re v enue b o n ds d u e w i t h i n o n e y ear 43 1 , 6 66 $ Re v enue b o n ds d u e a f t e r o ne y ea r 1,15 0 , 6 33 1,58 2 , 2 99 $ 65 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 0 . L O N G - T E R M DE B T ( C O NTIN U E D ) Bu s i n e s s - t y p e A c t i v i t i e s Lo n g T e r m De b t ( C o n t i nu e d ) Re v e n u e b o n d d e b t s e r v i c e r e q u i r e m ent s t o m atu r i t y a r e a s f o l l o w s : Pr i n c i p al Inter e s t Tot a l Ye a r e n d i n g J une 3 0 , 20 0 5 $ 4 31 , 6 6 6 $ 6 5 ,9 6 3 $ 4 9 7 , 6 29 20 0 6 450 , 2 2 1 45 ,3 1 6 49 5 , 5 3 7 20 0 7 473 , 9 5 2 23 ,3 9 1 49 7 , 3 4 3 20 0 8 82 , 8 6 8 10 ,0 9 4 92 , 9 6 2 20 0 9 86 , 9 7 8 5,98 3 92 , 9 6 1 201 0 - 201 1 56 , 6 1 4 3,51 0 60 , 1 2 4 1, 5 82 , 2 9 9 $ 15 4 ,2 5 7 $ 1, 73 6 , 5 5 6 $ Th e r e v e n u e b o n d or d i n a n c e s p e c i f i e s t hat t h e C i t y sh a l l e s t a b l i s h v a r i o u s r e s t r i c t e d a s s e t ac c o u n t s a n d d i s t r i b u t e t h e n e t r e v enues for the water fund to the re s t r i c t e d as s e t a c c o u n t s a n d s e t u s e r r a t es at l e v e l s w h i c h w i l l g ene r a t e mi n i m um ne t r e v e n u e s , a s d e f i n e d . T h e r e v e n u e b o n d ordinances specify that City ma n a g e me n t a n d / o r t h e C i t y C o m m iss i on s h a l l t a k e co r r e c t i v e a c t ion s t o br i n g th e C i t y i n t o co mpli a n c e wi t h t h e r e v e n u e b o nd ordinances, if necessary, and th a t b o n d h o l de r s s h a l l h a v e t h e r i g h t t o i n s t i t u t e p r o c e e d i n g s , j ud i c i a l o r o t h e r w i s e , t o en f orc e t h e co v e n a n t s o f t h e r eve n u e bo n d o r d i n a n c e s . The City is in co mpli a n c e w i t h a p p l i c a b l e c o v e n a n t s a s o f J u n e 3 0 , 2 00 4 . In d u s t r i a l R e v e n u e a n d P r i v a t e A c t i vi t y B o n d s Th e C i t y i s s u e s t a x e x e m p t i n d u s t r i a l re v e n u e a n d pr i v a t e a c t i v i t y b o n d s t o f ina n c e c o n s t r u c t i o n of f a c i l i t i e s w i t h i n th e C i t y which it sells on installment co n t r a c t s t o t h e f a c i l i t i e s ' us e r s . T h e b o n d s a n d t he i n t e r e s t p a yabl e t h e r e o n a r e n o t o b l i gat i o n s o f t h e C it y a n d d o n o t c o n s ti t u t e o r g i v e r i s e t o a p e c u n i a r y li a b i l i t y o r c o n t i n g e n t l i a b i li t y o f t h e C i t y or a c h a r g e a g a i n s t t h e g e n e r a l c r e d i t o r t a x i n g p o w e r o f t h e C i ty . T h e b o n d s a r e i s s u e d u n d e r a n d c o l l ateralized by th e i n d e n t ur e s a n d a r e p a ya b l e s o l e l y f r om t h e p a y men t s t o b e m ade p u r s u a n t to t h e l o a n a g r e e men t s b e t w ee n t h e C i t y a nd t h e f a c ilities users. The bonds are not a l i e n o n a n y of t h e C i t y’s pr o p e r t i e s o r re v e n u e s , o t he r t h a n t h e f a c i l i t i e s f o r w h i c h t h e y w e r e i s s u e d . Th e C i t y a u t ho r i z e d t h e i s s u a n c e o f $ 1 , 6 0 0 , 00 0 o f i ndu s t r i a l d e v e lo p m en t f i r s t mort g a g e r e v e n u e bo n d s ( Mon t a n a F a r m B u r e a u F e d e ration - Mountain West Fa r m B u r e a u N u t a k I n s u r a nc e C o mpan y , I n c . J o i n t V e n t u r e P a r t ne r s h i p P r o j e c t ) , s e r i e s 1 9 8 1 da t e d Au g u s t 1 , 19 8 1. T he b o n d s have an interest rate of eleven pe r c e n t p e r an n u m . T h e pu r p o s e o f t h e b o n d s w a s to c o n s t r u c t a s t a t e h e a d q u a r t e r s an d c o m m e r c i a l o f f i c e f a c i l i t y a t 5 0 2 S o u t h 19th Avenue, Bozeman, Mo n t a n a . T h e f i n a l b o n d a n d i n t e r e s t p a y men t i s t o b e made o n A u g u s t 1 , 20 0 6. 66 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 1 0 . L O N G - T E R M D E B T ( C O N T I N U E D ) In d u s t r i a l R e v e n u e a n d P r i v a t e A c t i v i t y B o n d s ( C o n t i n u e d ) Th e C i t y a u t h o r i z e d t h e i s s u a n c e o f $ 1 , 1 0 0 ,0 0 0 o f L i m i t e d O b l i g a t i o n F i r s t M o r t g a g e Re v e n u e b o n d s ( M o n t a n a S t a t e U n i v e r s i t y F o u ndation, Inc. Project), se r i e s 1 9 9 5 d a t e d M a r c h 1 5 , 1 9 9 5 . T h e p u r p o s e of t h e b o n d s w a s t o p r o v i d e f o r t h e a c q u i si t i o n a n d c o n s t r u c t i o n o f a d m i n i s t r a t i ve, educational and related fa c i l i t i e s , w h i c h i s l o c a t e d c o n t i g u o u s t o a n d i s t r e a t e d a s p a r t o f t h e c a m p u s o f M o n t a n a S t a t e U n i v e r s i t y a t 1 5 0 1 S o u t h 1 1 t h Av e n u e , B o z e m a n , M o n t a n a . T h e bo n d s h a v e i n t e r e s t r a t e s r a n g i n g f o r m 3 . 4 % t o 5 . 9 % . T h e f i n a l b o n d a n d i n t e r e s t p a y m en t d a t e i s M a r c h 1 5 , 2 0 0 9 . Th e C i t y a u t h o r i z e d t h e i s s u a n c e o f $ 8 , 1 9 5 , 0 0 0 o f M u l t i - F a m i l y H o u s in g M o r t g a g e R e v e n u e b o n d s ( A r ca d i a G a r d e n s A p a r t m e n t s p r o j e ct) series 1995 dated De c e m b e r 1 , 1 9 9 5 . T h e b o n d s h a v e a " A A A " r a ti n g b y S t a n d a r d & P o o r ' s . T h e b o n d s h a v e ra t e s o f i n t e r e s t r a n g i n g f r o m 4 . 5 % t o 5 .4%. The purpose of the bo n d s w a s t h e a c q u i s i t i o n , c o n s t r uc t i o n , i m p r o v e m e n t a n d e q u i p p in g o f a 1 6 0 - u n i t m u l t i f a m i l y r e s i d e n t i a l r e n t a l h o u s i n g p r o j e c t located in the City of Bozeman kn o w n a s t h e A r c a d i a G a r d e n s A p a r t m e n t s . T h e f i n a l b o n d a n d i n t e r e s t p a y m e n t d a t e i s D e c e m b e r 1 , 2 0 0 5 . NO T E 1 1 . C A P I T A L L E A S E O B L I G A T I O N S On J u n e 1 , 2 0 0 2 , t h e C i t y e n t e r e d i n t o a le a s e f o r a C a t e r p i l l a r 9 6 3 C t r a c t o r l o a d e r . T h e l e a s e t e r m i s t h r e e y e a r s p a y a b l e i n three consecutive annual in s t a l l m e n t s w i t h a b a l l o o n p a y m e n t a t m a t u r i t y i n c l u d i n g i n t e re s t a t 5 . 2 % . T h e t o t a l a m o u n t c a p i t a l i z e d o f $ 2 3 3 , 1 2 6 r e p r e s e n t s the present value of the future le a s e p a y m e n t s . T h e a s s e t a n d c a p i t a l l e a s e o b l i g a t i o n ha s b e e n r e c o r d e d i n t h e s o l i d w a s t e f u n d . On M a y 8 , 2 0 0 3 t h e C i t y e n t e r e d i n t o a l e a s e f o r a C a t e r p i l l a r g r ad e r . T h e l e a s e t e r m i s f i v e y e a r s p a y a b l e i n f i v e c o n s e c u t i v e annual installments with a ba l l o o n p a y m e n t a t m a t u r i t y i n c l u d i n g i n t e r e s t a t 4 . 0 % . T h e t o t a l a m o u n t c a p i t a l i z e d o f $ 1 5 4 , 9 9 2 r e p r e s e n t s t h e p r e s e n t v a l u e of the future lease payments. Th e p a y m e n t s f o r t h i s o b l i g a t i o n a r e b e i n g re c o r d e d i n t h e s t r e e t m a i n t e n a n c e f u n d . On J u n e 1 , 2 0 0 3 , t h e C i t y e n t e r e d i n t o a l e a s e f o r a C a t e r p i l l a r W h e e l L o a d e r . T h e l e a s e t e r m i s t h r e e y e a r s p a y a b l e i n t h r e e consecutive annual installments wi t h a b a l l o o n p a y m e n t a t m a t u r i t y i n c l u d i n g i n t e r e s t a t 4 . 0 % . T h e t o t a l a m o u n t c a p i t a l i z e d o f $ 1 9 9 , 1 6 4 r e p r e s e n t s t h e p r e s e n t value of the future lease pa y m e n t s . T h e a s s e t a n d c a p i t a l l e a s e o b l i g a t i o n ha s b e e n r e c o r d e d i n t h e s o l i d w a s t e f u n d . 67 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 1 . C A P I T A L L E AS E O B L I G A T I O N S ( C O N T I N U E D ) Th e f o l l o w i n g i s a s c h e d u l e , b y yea r , o f fu t u r e mini mu m l eas e pa y men t s u n d e r ca p i t a l l e a s e , to g e th e r w i t h t h e p r e s e n t v a l u e o f minimum lease payments at June 30 , 2 00 4 : Go v ernment al Acti v iti e s Bu siness-Typ e Acti v it i e s Total Ye a r e n d i n g J une 3 0 , 20 05 $ 1 8, 1 9 3 $ 1 30 , 0 5 4 $ 148,247 2006 18, 1 9 3 94 , 0 0 0 112,193 2007 18, 1 9 3 - 18,193 2008 86, 0 8 9 - 86,089 14 0, 6 6 8 224 , 0 5 4 364,722 Le s s a m ou nt r e p r e s e n t i n g i n t e r e s t (1 6, 5 9 1 ) (1 3 , 0 8 1 ) (29,672) Pr e s e n t v alu e o r f u t u r e m inimum l e a s e p aymen ts 12 4, 0 7 7 $ 210 , 9 7 3 $ 335,050 $ NO T E 1 2 . C L A S S I F I C A T I O N O F N E T A S S E T S In t h e G o v e r n m e n t - W i d e F i n a n c i a l S t a t e men t s , n e t as s et s a r e c l as s i f ied i n t h e f o l l o w i n g c a t e g o r i e s : In v e s t e d i n C a p i t a l A s s e t s , N e t o f R e l ate d D e b t – T h i s c a t e g o r y g r ou p s a l l c a p i t a l a s s e t s , i n c l u d i n g i nfr as t r u c t u r e i n f u t u re years, into one component of ne t a s s e t s. A c c u mula t e d d e p r e c i a t i o n a n d t h e o u t s t a n d i n g b a l a n c e s o f d e b t t h a t ar e a t t r i b u t a b l e to t h e a c q u i s i t i o n , c o n s t r u c t i o n or improvement of these as s e t s r e d u c e s t h i s c a t eg o r y . T h i s i s a de b i t b a l a n c e f o r t h e y ea r e n d i n g J u n e 3 0 , 2 0 0 3 d u e t o a c r o s s - o v e r r e f u n d i n g t h a t w i l l reverse in 2005 and be c a u s e r e t r o ac t i v e i n f r a s t r uct u r e i s y et t o b e r e c o r d e d o n t h e f i n a n c i a l s . Re s t r i c t ed N e t A s s e t s – T h i s c a t e g o r y p r e s e n t s e x t e r n a l r e s t r i c t i o n s i m po s ed b y c r e d it o r s , g r a n t o r s , c o n t r i b u t o r s o r laws or regulations of other go v e r n m ent s an d r e s t r i c t i o ns i m po s e d b y l a w th r o u g h c o n s t i t u t i o n a l p r o v i s i o n o r e n a b l i n g le g i s l a t i o n . A d d i t i o n a l l y, t h i s c a t e g ory presents restrictions pl a c e d o n t h e ca t e g o r i e s o f C a p i t a l P r o j e c t s , D e b t S e r vic e , an d s p e c i f i c p r o j e c t s an d p r o g r a m s e s t a b l i s h e d b y t h e C i t y C o u n c i l . Un r e s t r i c t e d N e t As se t s – Th i s c a t e g o r y r e p r e s e n t s t h e n e t a s s e t s o f t h e C i t y w h i c h a r e n o t r e s t r i c t e d f o r a n y p r o j e c t o r o t h e r p u r p o s e . 68 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 2 . C L A S S I F I C A T I O N O F N E T A S S E T S ( C O N T I N U E D) In t h e F u n d F i n a n c i a l S t a t e m e n t s , r es e r v es a n d d e s i g n a t i o n s s e g r e g ate p o r t i o n s o f f u n d b a l a n c e t h a t a r e ei t h e r n o t a v a i l a b le o r h a v e b e en earmarked for specific pu r p o s e s . T h e v a r i o u s r e s e r v e s a n d d e s i g n a t i o n s a r e e s t a b l i s h e d b y a c ti o n s o f t h e C i t y C o u n c i l a n d Ma n a g e ment a n d c a n b e i n c r e ased, reduced or eliminated by s i m il a r ac t io n s . A s o f J u n e 3 0 , 20 0 4 , r e s e r va t i o n s o f f u n d b a l a n c e a r e d e sc r i b ed b e l o w : Go v ern m ent a l F un d s Sp e c i a l R e v enu e F un d s Rent s a n d l e a s e s $ 5 80 , 1 2 5 Park d e v elo p m en t 62 , 5 1 9 De b t S e r v ic e F u n d s Debt s e r v ic e p aymen ts 5, 0 67 , 8 1 9 Pe r m an e n t F u n d End o w ment 512 , 1 8 6 To t a l r e s e r v ed f u n d ba l a n c e 6, 2 22 , 6 4 9 $ NO T E 1 3 . D E F I C I T F U N D B A L A N C E S At J u n e 3 0 , 20 0 4 , t h e f und s l i s t e d b e lo w h a d f und b a l a n c e d e fi c i t s . T h e d e f i c it b a l a n c e s d o no t r e p r es e n t a n y t yp e o f l e g a l violation, and it is the City ma n a g e m e n t ' s o p i n i o n t h a t t h e d e f i c i t s w i l l b e e l i m in a t e d b y ad d i t i on a l g r a n t f u n d i n g , c o l l e c t i o n of l on g - t e rm r e c e i v a b l e s , o r tr a n s f e r s f r o m other funds. Sp e c i a l R evenu e F u n d s Dr u g F o r f e i t u r e s 24 , 3 69 $ Beau t i f i c at i o n o f B ozeman 2,4 92 Communit y T r a nsp o r ta t i o n 19 , 4 29 St r e e t L i g hti n g 13 4 , 9 8 9 Me d i c a l H e a l t h Insu r a n c e 13 5 , 0 0 9 NO T E 1 4 . D E F E R R E D C O M P E N S A T ION P L A N Th e C i t y o f f e r s i t s e mpl o y e e s a d e f err e d c o m pen s ati o n p l a n c r e a t e d in a c c o r d a n c e w i t h I n t e r n a l R e v e n u e C o d e S e c t i o n 4 5 7 . T h e plan, available to all City em pl o y ee s , p e r mit s t h e m t o d e f e r a p o r t i o n o f t h e i r s a l a r y u n t i l f u t u re y ea r s . T h e d e f e r r ed c o mpen s a t i on i s n o t a v a i l a b l e t o e mployees until termination, re t i r e men t , d e a t h , o r u n f o r e s e e a b l e emer ge n c y . In a c c o r d a n c e w i t h G o v e r nme n t a l A c c o u n t i n g St a n d a r d s B o a r d S t a t e m e n t s N o . 3 2 , t he C i t y ha s r e m ov e d t h e b a l a n c e s r e l a t e d t o t h e deferred compensation plan as o f J u n e 3 0 , 1 9 9 8 , a s t h e s e a m ou n t s r e p r e s e n t n e i t h e r a s s e t s n o r l i ab i l i t i e s t o t h e C i t y , a n d t h e p l a n i s a d m ini s t e r e d b y a n in d e p e n dent third party. 69 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 1 5 . E M P L O Y E E B E N E F I T P L A N S Pl a n D e s c r i p t i o n a n d P r o v i s i o n s - A l l C i t y o f B o z e m a n f u l l - t i m e e m p l o y e e s p a r t i c i p a t e i n o n e o f t h r e e s t a t e w i d e c o s t - s h a r i n g m u l t i p l e - e m p l o y e r r e t i r e m e n t be n e f i t p l a n s a d m i n i s t e r e d b y t h e P u b l i c E m p l o y e e s R e t i r e m e n t D i v i s i o n ( P E R D ) . C o n t r i b u t i o n s t o t h e t h r e e p l a n s a r e a s r e q u i r e d b y S t a t e s t a t u t e . F i s c a l y e a r 20 0 4 a n d 2 0 0 3 t o t a l p a y r o l l a n d c o v e r e d p a y r ol l f o r a l l r e t i r e m e n t p l a n s w e r e $ 1 1 , 5 8 0 , 8 6 4 a n d $ 1 0 , 4 0 9 , 8 5 2 , r e s p e c t i v e l y . F i n a n cial information for all three pl a n s i s r e p o r t e d i n t h e P u b l i c E m pl o y e e s ' R e t i r e m e n t B o a r d ' s p u b l i s h e d Co m p r e h e n s i v e A n n u a l F i n a n c i a l R e p o r t f o r t h e f i s c a l y e a r e n d . I t i s a v a i l a b l e f r o m t h e PE R D a t 1 0 0 N o r t h P a r k A v e n u e , S u i t e 2 2 0 , P . O . B o x 2 0 0 1 3 1 , H e l e n a , M T 5 9 6 2 0 - 0 1 3 1 . T h e a u t h o r i t y t o e s t a b l i s h , a m e n d a n d p r o v i de cost of living ad j u s t m e n t s t o a l l t h r e e p l a n s i s a s s i g n e d t o t h e S t a t e l e g i s l a t ur e . T h e a u t h o r i t y t o e s t a b l i s h a n d a m e n d c o n t r i b u t i o n r a t e s t o a l l t h r e e p l a n s i s a l s o a s s i g n e d t o t h e St a t e l e g i s l a t u r e . Pu b l i c E m p l o y e e s ' R e t i r e m e n t S y s t e m ( P E R S ) Al l C i t y e m p l o y e e s , e x c e p t f i r e f i g h t e r s a n d p o l i c e o f f i c e r s , a r e p r ov i d e d p e n s i o n b e n e f i t s b y t h i s m u l t i - e m p l o y e r p l a n . F u n d i n g is provided by participating un i t s o f g o v e r n m e n t a n d t h e i r c o v e r e d e m p l o y e e s . T h e C i t y ' s c o n t ri b u t i o n s t o t h i s p l a n f o r t h e y e a r s e n d i n g J u n e 3 0 , 2 0 0 4 , 2 0 0 3, and 2002 were $558,035, $4 9 8 , 3 7 4 a n d $ 4 7 0 , 7 1 7 , r e s p e c t i v e l y . O n e h u n d r e d p e r c e n t o f r e q u i r e d c o n t r i b u t i o n s w e r e m a d e f o r a l l t h r e e y e a r s . P l a n m e m b e r s are required to contribute 6. 9 % o f m o n t h l y c o m p e n s a t i o n . T h e C i t y i s a l s o r e q u i r e d t o c o n t r i b u t e 6 . 8 % o f m e m b e r s ' c o m p e n s a t i o n . T h e S t a t e i s r e q u i r e d t o c o n t r i b u t e . 1 % o f m e m b e r s ’ co m p e n s a t i o n , w h i c h w a s $ 8 , 2 9 4 . C o v e r e d p a y r o l l fo r t h e y e a r e n d i n g J u n e 3 0 , 2 0 0 4 w a s $ 8 , 2 0 6 , 3 9 0 . De f i n e d B e n e f i t R e t i r e m e n t P l a n ( D B R P ) - P a r t i c i p a n t s b e c o m e e l i g ib l e f o r b e n e f i t s a f t e r a g e 6 0 a n d 5 y e a r s o f s e r v i c e , a f t e r a ge 6 5 r e g a r d l e s s o f s e r v i c e , o r 3 0 ye a r s o f s e r v i c e r e g a r d l e s s o f a g e . T h e b e n e f i t i s 1 / 5 6 o f t h e f i n a l c o m p e n s a t i o n f o r e a c h y e a r o f c r e d i t e d s e r v i c e , p a i d a s a m o d i f i e d c a s h r e f u n d a n n u i t y . A pa r t i c i p a n t i s e l i g i b l e f o r e a r l y r e t i r e m e n t b e n e f i t s a f t e r a g e 5 0 a n d 5 y e a r s o f s e r v i c e o r a f t e r 2 5 y e a r s o f s e r v i c e r e g a r d l e ss o f a g e . R i g h t s b e c o m e v e s t e d a f t e r 5 ye a r s o f s e r v i c e . De f i n e d C o n t r i b u t i o n R e t i r e m e n t P l a n ( D C R P ) – P a r t i c i p a n t s m a y e l ec t t h e d e f i n e d c o n t r i b u t i o n p l a n , i n w h i c h t h e c o n t r i b u t i o n s into the plan are known, but th e b e n e f i t i s n o t . T h e r e t i r e m e n t b e n e f i t r e c e i v e d i s b a s e d u p o n a c c ou n t b a l a n c e , w h i c h i s d e t e r m i n ed b y c o n t r i b u t i o n s m a d e p l us investment earnings, or lo s s e s , l e s s a d m i n i s t r a t i v e c o s t s . Th e t o t a l n u m b e r o f p a r t i c i p a t i n g e m p l o y e e s i n b o t h t h e d e f i n e d b e ne f i t a n d d e f i n e d c o n t r i b u t i o n p l a n s a t t h e C i t y a t J u n e 3 0 , 20 0 4 i s 2 0 9 . Fi r e f i g h t e r s ' U n i f i e d S y s t e m ( F U R S ) Fu n d i n g i s p r o v i d e d b y u n i t s o f l o c a l g o v e r n m e n t , t h e i r c o v e r e d em p l o y e e s a n d t h e S t a t e o f M o n t a n a . T h e C i t y ' s c o n t r i b u t i o n s t o this plan for the years ended Ju n e 3 0 , 2 0 0 4 , 2 0 0 3 , a n d 2 0 0 2 w e r e $ 2 1 8 , 0 0 6 , $ 1 7 7 , 1 8 0 , a n d $ 1 6 2 , 6 3 9 , r e s p e c t i v e l y . O n e h u n d r e d p e r c e n t o f r e q u i r e d c o n t r i b u t i o ns were made for all three ye a r s . P l a n m e m b e r s a r e r e q u i r e d t o c o n t r i b u t e 1 0 . 7 % o f m o n t h l y co m p e n s a t i o n , s i n c e a l l e m p l o y e e s h a v e e l e c t e d t o b e c o v e r e d u n der the guaranteed annual be n e f i t a d j u s t m e n t ( G A B A ) . T h e C i t y i s r e q u i r e d t o c o n t r i b u t e 1 4 . 36 % o f m e m b e r s ' c o m p e n s a t i o n . T h e S t a t e i s r e q u i r e d t o c o n t r i bute 32.61% of members' co m p e n s a t i o n , w h i c h w a s $ 4 8 1 , 3 7 9 f o r f i s c a l 20 0 4 . C o v e r e d p a y r o l l f o r t h e y e a r e n d i n g J u n e 3 0 , 2 0 0 4 w a s $ 1 , 5 1 8 , 1 4 6 . 70 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 1 5 . E M P L O Y E E B E N E F I T P L A N S ( C O N T I N U E D ) Fi r e f i g h t e r s ' U n i f i e d S y s t e m ( F U R S ) ( C o n t i n u e d ) Pa r t i c i p a n t s a r e e l i g i b l e f o r b e n e f i t s a f t e r 1 0 y e a r s o f s e r v i c e an d a g e 5 0 . T h e b e n e f i t f o r p a r t i c i p a n t s h i r e d p r i o r t o J u l y 1 , 1 9 8 1 w h o h a v e a t t a i n e d 5 0 y e a r s o f ag e a n d 2 0 y e a r s o f s e r v i c e i s 5 0 % o f t h e m o n t h l y s a l a r y l a s t r e c e iv e d b y t h e p a r t i c i p a n t . A l s o , a n a d d i t i o n a l 1 % f o r e a c h y e a r o f s e r v i c e i n e x c e s s o f 2 0 y e a r s , no t t o e x c e e d a m a x i m u m o f 6 0 % o f t h e r e c i p i e n t ' s l a t e s t m o n t h l y sa l a r y . A p a r t i c i p a n t h i r e d o n o r a f t e r J u l y 1 , 1 9 8 1 , o r w h o re t i r e s p r i o r t o c o m p l e t i o n o f 2 0 ye a r s o f s e r v i c e , r e c e i v e s a b e n e f i t e q u a l t o 2 % o f a v e r a g e s a l a r y f o r e a c h y e a r o f s e r v i c e , n o t t o e x c e e d 6 0 % . S a l a r y i s a v e r ag e d o v e r t h e l a s t 3 6 m o n t h s f o r th o s e h i r e d o n o r a f t e r J u l y 1 , 1 9 8 1 . R i g h t s b e c o m e v e s t e d a f t e r 1 0 y e a r s o f s e r v i c e . T h e t o t a l n u m b e r o f p a r t i c i p a t i n g e m p l o ye e s a t t h e C i t y a t J u n e 3 0 , 2 0 0 4 i s 38 . Mu n i c i p a l P o l i c e O f f i c e r s ' R e t i r e m e n t S y s t e m ( M P O R S ) Fu n d i n g i s p r o v i d e d b y l o c a l u n i t s o f g o v e r n m e n t , t h e i r c o v e r e d em p l o y e e s , a n d t h e S t a t e o f M o n t a n a . T h e C i t y ' s c o n t r i b u t i o n s to this plan for the years ended Ju n e 3 0 , 2 0 0 4 , 2 0 0 3 , a n d 2 0 0 2 w e r e $ 2 6 7 , 4 9 7 , $ 2 6 6 , 1 5 0 , a n d $ 2 4 9 , 4 3 7 , r e s p e c t i v e l y . O n e h u n d r e d p e r c e n t o f r e q u i r e d c o n t r i b u t i o ns were made for all three ye a r s . P l a n m e m b e r s a r e r e q u i r e d t o c o n t r i b u t e 9 % o f m o n t h l y c o mp e n s a t i o n . T h e C i t y i s r e q u i r e d t o c o n t r i b u t e 1 4 . 4 1 % o f m e m b e rs' compensation. The State is r e q u i r e d t o c o n t r i b u t e 2 9 . 3 7 % o f m e m b e r s ' c o m p e n s a t i o n , w h i c h w a s $ 5 4 5 , 2 0 4 . C o v e r e d p a y r o l l f o r t h e y e a r e n d i n g J u n e 3 0 , 2 0 0 4 was $1,856,328. Pa r t i c i p a n t s a r e e l i g i b l e f o r r e t i r e m e n t b e ne f i t s a f t e r 2 0 y e a r s o f s e r v i c e a n d a g e 5 0 . T h e m i n i m u m a g e r e q u i r e m e n t d o e s n o t a pply to participants first em p l o y e d p r i o r t o J u l y 1 , 1 9 7 5 . T h e b e n e f i t i s 1 / 2 o f a v e r ag e m o n t h l y s a l a r y d u r i n g t h e h i g h e s t 3 6 c o n s e c u t i v e m o n t h s o f e a r n i ngs plus 1% of average monthly sa l a r y f o r e a c h a d d i t i o n a l y e a r o f s e r v i c e i n e x c e s s o f 2 0 y e a r s , t o a m a x i m u m o f 6 0 % . B e n e f i t s a r e p a i d a s a m o d i f i e d c a s h r e fund annuity. Rights become ve s t e d a f t e r 5 y e a r s o f s e r v i c e . T h e t o t a l n u m b e r o f p a r ti c i p a t i n g e m p l o y e e s a t t h e C i t y a t J u n e 3 0 , 2 0 0 4 i s 4 0 . NO T E 1 6 . P O S T - E M P L O Y M E N T B E N E F I T S In a d d i t i o n t o p r o v i d i n g a d e f e r r e d c o m p e n s a t i o n p l a n , t h e C i t y a ll o w s i t s r e t i r e d e m p l o y e e s t o c o n t i n u e t h e i r h e a l t h c a r e c o v e rage through the City's group he a l t h p l a n u n t i l d e a t h . T h e C i t y ' s c o n t r a c t w i t h B l u e C r o s s / Bl u e S h i e l d , t h e a d m i n i s t r a t o r s o f t h e m e d i c a l / d e n t a l b e n e f i t p l a n , d e t a i l s t h e p l a n e l i g i b i l i t y . W h e n an e m p l o y e e r e t i r e s , t h e y m a y c o n t i n u e c o v e r a g e f o r t h e m s e l v e s a nd t h e i r c o v e r e d e l i g i b l e d e p e n d e n t s i f t h e y a r e e l i g i b l e f o r p ublic employees' retirement by vi r t u e o f t h e i r e m p l o y m e n t w i t h t h e C i t y o f B o z e m a n . T o c o n t i nu e c o v e r a g e , t h e y a r e r e q u i r e d t o p a y t h e f u l l c o s t o f t h e b e n e f its. The City also allows te r m i n a t e d e m p l o y e e s t o c o n t i n u e t h e i r h e a l t h c a r e c o v e r a g e f o r 18 m o n t h s p a s t t h e d a t e o f t e r m i n a t i o n a s r e q u i r e d b y t h e C o n s o lidated Omnibus Budget Re c o n c i l i a t i o n A c t o f 1 9 8 5 ( C O B R A ) . T h e C i t y h a s 4 7 r e t i r e d e m p l o y e e s w i t h p r e m i u m s c o s t o f $ 2 6 1 , 2 8 3 . T h e C i t y ' s c u r r e n t l a b o r contracts do not include an y o b l i g a t i o n s f o r p a y m e n t s t o r e t i r e e s . NO T E 1 7 . J O I N T V E N T U R E A G R E E M E N T Jo i n t v e n t u r e s a r e l e g a l e n t i t i e s o r o t h e r o r g a n i z a t i o n s t h a t r e s u l t i n a c o n t r a c t u a l a r r a n g e m e n t , a n d t h a t a r e o w n e d , o p e r a t e d , or governed by two or more pa r t i c i p a n t s . E a c h p a r t i c i p a n t r e t a i n s b o t h a n o n g o i n g f i na n c i a l i n t e r e s t a n d a n o n go i n g f i n a n c i a l r e s p o n s i b i l i t y . 71 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 7 . J O I N T V E N T U RE A G R E E ME N T ( C O N TI N U E D ) Th e C i t y a n d Ga l l a t i n C o u n t y, M o n t a n a ( t h e Co u n t y) h a v e e n t e r e d i n t o a n i n t e r l oc a l a g r e e m e n t f o r t h e p u r po s e s o f e s t a b l i s h m e n t of the operation and financing of a 9 1 1 c o mm un i c a t i o n s e r v i c e s d i v i s i o n ( t h e D i v i s i o n ) f o r d i s p a t ch a n d r e c o r d s s e r v i c e s , t o de f i n e t h e r e l ati o n s h i p o f t h e A d ministrative Board with the City an d C o u n t y, a n d t o e s t a b l i s h t h e l i n e o f a u t h o r i t y f o r pe r s o n n e l f u r n i s h i n g t h e c omm u n i c a t i o n s e r v i c e s t o th e C i t y a n d Co u n t y a nd others who may contract for th e s e r v i c e s . Th o u g h t h e C it y h a s n o e q u i t y i n t e r e s t i n t h e D i v i s i o n , t h e C i ty ha s i n d i r e c t a c c e s s t o t h e j o i n t v e n t u r e ’ s r e so u r c e s , a s t h e D iv i s i o n ’ s purpose is of direct interest to t h e C i t y, a n d t h e C i t y h a s t h e a b i l i t y to in f l u e n c e t h e mana g e m e n t o f t h e D i v i si o n . I n a d d i t ion , t h e C i t y an d C o u n t y ha v e a gr e e d t o pay 45% and 55% of the Di v i s i o n e x p e nd i t u r e s , r e s p e c t i v e l y . T h e a g r e e men t e x p i r e s D e c e mb e r 1 9 , 2 00 5 , an d s h a l l b e a u t o m ati c a l l y r ene w e d u n l e s s t e r m inated by either party. Fi n a n c i a l i n f o r m a t i o n r e g a r d i n g t h e D ivi s i on c a n b e o b t a i n e d b y c o nt a c t i n g Sh e l l e y V a n c e , G a l l a t i n C o u n t y, C l e r k a n d R e c o r d s O f fice, 311 West Main, Bo z e m a n , M T 5 9 7 15 . NO T E 1 8 . R E S T R I C T E D A S S E T S At J u n e 3 0 , 2 0 0 4 , t he b a l a n c e s o f r es t r i ct e d a s s e t a c c o u n t s a r e a s f o l l o w s Busi n e ss - Ty pe A cti v it i e s Go v ernment al Acti v it i es Wate r F und Wa st e W a te r Fu n d Total Re s t r i c t e d b y r e v enu e b o nd c o v ena n t s For d ebt s e r v ic e - $ 49 9 ,9 9 0 $ - $ 499,990$ Fo r b on d r e s e r v e - 15 8 ,2 3 0 - 158,230 Fo r o per a t i o ns - 24 8 ,4 7 0 - 248,470 Re s t r i c t e d b y o r d ina n c e Ca s h i n li e u o f pa r k in g 23 1 , 87 5 - - 231,875 Impa c t f e e s 10,0 7 0 , 06 4 5, 3 0 5 ,9 6 9 7, 1 4 4 , 68 9 22,520,722 Re s t r i c t e d b y b o n d c o v ena n t s Fo r d efe a s a n ce o f d ebt 3, 3 6 6 , 59 5 - - 3,366,595 - 13,6 6 8 , 53 4 $ 6, 2 1 2 ,6 5 9 $ 7, 1 4 4 , 68 9 $ 27,025,882$ 72 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 9 . I N T E R F U N D AS S E T S / L I A B I L I T I E S A N D T R A N S F ER S A s u mm a r y o f d u e f r o m /t o o t h e r f u n d s a t J u n e 3 0 , 20 0 4, i s a s f o l l o ws : Due F rom Due T o Ma jor F u n ds: Ge n e r a l F u n d 86 1 ,3 3 4 $ 4,459 $ Co m mun i t y D e v elo p m en t L o a n F u n d - 32 , 7 1 4 SI D S ink in g F u n d - 295 , 7 2 4 No n maj or F u n d s : Sp e c i a l R evenu e F u n d s De p a r t m ent a l S p e c i a l R e v enu e s - 549 , 0 7 1 In surance - 97 , 6 6 3 Pe n s i on - 15 , 1 1 3 Dr u g F o r f e i t u r e - 51 , 4 0 7 Bea u ti f i c a t i o n o f B ozeman - 2,492 Co m mun i t y T ran s p o r t a t i o n - 14 , 8 3 0 Co m mun i t y H o u s i n g 32,7 1 4 - St r e e t L i g hti n g - 130 , 7 5 9 De b t S e r vice F u n d s SI D R evolv in g F u nd 29 5 ,7 2 4 - Tota l r e p o rt e d o n g overn m ent f i n a n c i a l s t a t e m en t s 1, 1 8 9 ,7 7 2 1, 1 94 , 2 3 2 Fi d uci a r y F u n d s Mu n ici p a l C ou r t 4,4 6 0 - 1, 1 9 4 ,2 3 2 $ 1 , 1 94 , 2 3 2 $ In t e r f u n d b a l a n c e s r e p o r t e d a s d u e f r o m o r d u e t o ot h e r f u n d s a r e a r e s u l t o f t r a n s f e r s f o r r e p o r t i n g p u r p o s e s t o c o v er n e g a t i v e cash balances within a fund. Th e s e t r a n s f e r s a r e r e v e r sed a s c a s h b e c o m e s a v a i l a b l e i n a f u n d w her e c a s h p r e v i o u s l y ha d b e e n i n a d e f i c i t . 73 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 1 9 . I N T E R F U N D AS S E T S / L I A B I L I T I E S A N D T R A N S F ER S ( C O N T I NU E D ) A s u mm a r y o f i n t e r f u n d t r a nsf e r s r e p o r t e d i n t h e f un d fi n a n c i a l s t a t e m e n t s f o r t h e y ea r e n d e d J u ne 3 0 , 2 00 4 f oll o w s : Tran s fer s F rom G ene r a l Fu n d S I D Si n k ing N on m aj or Go v ernment al Water W a ste Wa ter S oli d Wast e Total Ge ne ral F u n d - $ - $ 2,10 9 , 4 39 $ - $ - $ - $ 2,109,439$ SI D S i nk ing - - 28 , 1 55 - - - 28,155 No n maj or G o v ern m ent a l 839 , 1 7 3 10, 7 5 0 - 50 , 0 0 0 50 , 0 0 0 50,0 0 0 999,923 Wa t e r - - - - - - - Wa s t e W a te r - - - - - - - So l id W a s t e - - - - - - - 839 , 1 7 3 $ 10, 7 5 0 $ 2,13 7 , 5 94 $ 50 , 0 0 0 $ 50 , 0 0 0 $ 50,0 0 0 $ 3,137,517$ Transfers To Tr a n s f e r s a r e us e d t o ( 1 ) m ov e r e v e n u e s f r o m t h e f u n d t h a t s t a t u t e o r b u d g e t r e q uire s t o c o l l e c t t h e m t o t h e f u n d t hat s t a t u t e or b u d gets to expend them, (2) use un r e s t r i c t e d r e v e n u e s c o l l e c t e d i n t h e g e ne ra l f u n d t o fi n a n c e v a r i o u s p r o g r a m s ac c o u n t e d f o r i n o t h e r f un d s i n a c c o r d a n c e w i t h b u d g etary authorizations, and (3 ) t o t r a n s f e r n o n - r e s t r i c t e d i n t e r e s t i n c o m e f r o m t h e p e r m an e n t f u n d t o t he g e n era l f u n d . In t h e yea r e n d e d J u n e 3 0 , 20 0 4 , t h e C i t y m ade t h e f o ll o w i n g t r a n sf er s t h a t e i t h e r d o n ot o c c u r on a r o u t i ne b as i s o r a r e i n c o n si s t e n t w i t h t h e u s u a l a c t i v i t i e s o f th e f u n d m aki n g t h e t r a n s f e r : ( 1 ) t r a n s f e r o f $ 1 91 , 5 55 fr o m t h e Ge n e r a l F u n d t o t he C o n s o l i d a t ed P a r k i n g D i st r i c t s t o r e s t o r e th e f u n d t o its intended balance, in ac c o r d a n c e w i t h o r d i na n c e , ( 2 ) t r a n s f e r o f $ 5 0 , 0 0 0 e a c h f r o m t h e W ate r F u n d , t h e W a s t e Wa t e r F u n d , a n d t h e S o l i d W a s t e F u n d t o the General Capital Impr o v e m ent F u n d t o c o v e r t h e s e f u n d s ’ f a i r s h a r e o f c a p i t a l o u t l a y f o r t e c h n o l o g y c o s t s . 74 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 2 0 . R I S K M A N A G E M E N T Th e C i t y f a c e s a c o n s i d e r a b l e n u m b e r o f r i s k s o f l o s s , i n c l u d i n g a) d a m a g e t o a n d l o s s o f p r o p e r t y a n d c o n t e n t s , b ) e m p l o y e e t o rts, c) professional liability (i.e. er r o r s a n d o m i s s i o n s ) , d ) e n v i r o n m e n t a l d a ma g e , e ) w o r k e r s ' c o m p e n s a t i o n ( i . e . e m p l o y e e i n j u r i e s ) , a n d f ) m e d i c a l i n s u r a n c e c o s t of employees. A variety of me t h o d s a r e u s e d t o p r o v i d e i n s u r a n c e f o r t h e s e r i s k s . C o m m e r c i a l p o l i c i e s , t r a n s f er r i n g a l l r i s k s o f l o s s e x c e p t f o r s m a l l d e du c t i b l e a m o u n t s , a r e p u r c h a s e d f o r pr o p e r t y a n d c o n t e n t d a m a g e a n d p r o f e s s i o n a l li a b i l i t i e s . T h e C i t y p a r t i c i p a t e s i n t w o st a t e - w i d e p u b l i c r i s k p o o l s o p e r a t e d b y the Montana Municipal In s u r a n c e A u t h o r i t y , f o r w o r k e r s' c o m p e n s a t i o n a n d f o r t o r t l i a b i l i t y . E m p l o y e e m e d i c a l i n s u r a n c e i s p r o v i d e d t h r o u g h a p r i v a t e ly-administered, partially self- in s u r e d p l a n . G i v e n t h e l a c k o f c o v e r a g e a v a i l a b l e , t h e C i t y h a s n o c o v e r a g e f o r p o t e n t i a l l o s s e s f r o m e n v i r o n m e n t a l d a m a g e s . Co m m e r c i a l P o l i c i e s Co v e r a g e l i m i t s a n d t h e d e d u c t i b l e s o n t h e c o mm e r c i a l p o l i c i e s h a v e s t a y e d r e l a t i v e l y c o n s ta n t f o r t h e l a s t s e v e r a l y e a r s . T h e premiums for the policies are al l o c a t e d b e t w e e n t h e C i t y ' s E n t e r p r i s e F u n d s a n d t h e G e n e r a l F un d . P r e m i u m s a r e s u b s i d i z e d t h r o u g h a s p e c i a l p u r p o s e p r o p e r t y tax levy, based on total ap p r o p r i a t i o n s . S e t t l e d c l a i m s r e s u l t i n g f r o m t h e s e r i s k s d i d n o t e x c e e d c o m m e r c i a l i n s u r a n c e c o v e r a g e d u r i n g t h e t h r e e y e a r s en d i n g J u n e 3 0 , 2 0 0 4 , 2 0 0 3 , a n d 20 0 2 . Pu b l i c E n t i t y R i s k P o o l s In 1 9 8 6 , t h e C i t y j o i n e d t o g e t h e r w i t h ot h e r M o n t a n a c i t i e s t o f o r m t h e M o n t a n a M un i c i p a l I n s u r a n c e A u t h o r i t y w h i c h e s t a b l i s h e d a workers' compensation pl a n , a n d a t o r t l i a b i l i t y p l a n . B o t h p u b l i c e n t i t y r i s k p o o l s c u rr e n t l y o p e r a t e a s c o m m o n r i s k m a n a g e m e n t a n d i n s u r a n c e p r o g r ams for the member go v e r n m e n t s . T h e l i a b i l i t y l i m i t s f o r d a m a ge s i n t o r t a c t i o n a r e $ 7 5 0 , 0 0 0 p e r c l a i m a n d $ 1 . 5 m i l l i o n p e r o c c u r r e n c e w i t h $ 1 1 , 2 5 0 deductible per occurrence. St a t e t o r t l a w l i m i t s t h e C i t y ' s l i a b i l i t y t o $ 1 . 5 m i l l i o n . T h e C i ty p a y s p r e m i u m s f o r i t s e m p l o y e e i n j u r y i n s u r a n c e c o v e r a g e , w h i c h i s a l l o c a t e d t o t h e e m p l o y e r fu n d s b a s e d o n t o t a l s a l a r i e s a n d w a g e s . T h e a g r e e m e n t s f o r f o r m a t i o n o f t h e p o o l s p r o v i d e t h a t t h e y w i l l b e s e l f - s u s t a i n i n g t hr o u g h m e m b e r p r e m i u m s . T h e to r t l i a b i l i t y p l a n a n d w o r k e r s ' c o m p e n s a t i o n p r o g r a m i s s u e d d e bt o f $ 4 . 4 1 m i l l i o n a n d $ 6 . 1 5 5 m i l l i o n , r e s p e c t i v e l y , t o i m m e d i a tely finance the necessary in s u r a n c e r e s e r v e s . A l l m e m b e r s s i g n e d a c o n t i n g e n t n o t e f o r a p r o r a t a s h a r e o f t h i s l i a b i l i t y i n c a s e o p e r a t i n g r e v e n u e s w e r e insufficient to cover the debt se r v i c e . A t J u n e 3 0 , 2 0 0 4 , t h e C i t y ' s s h ar e i s $ 5 9 , 0 2 4 f o r t o r t l i a b i l i t y a n d $ 2 0 9 , 8 7 9 f o r w o r k e r s ' c o m p e n s a t i o n ; b a s e d o n t h e p l a n ' s c u r r e n t f i n a n c i a l p o s i t i o n , th e C i t y d o e s n ' t e x p e c t t o m a k e a n y p a y m e n t o n t h e s e n o t e s . Th e C i t y a l s o o w n s a p o l i c y w i t h M M I A f o r l o s s o r d a m a g e t o p r o p e rt y . T h i s i s a n a l l r i s k p o l i c y , e s s e n t i a l l y a l l p r o p e r t y o w n ed by the City being insured for 10 0 % o f r e p l a c e m e n t c o s t , s u b j e c t t o $ 5 , 0 0 0 pe r o c c u r r e n c e . M M I A r e i n s u r e s t h e i r p r o p e r t y i n s u r a n c e w i t h a n a t i o n a l m u n i c i p a l pool, Public Entities’ Property In s u r a n c e . 75 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 2 0 . R I S K M A N A GEME N T ( C O NTI N U E D) Se l f - I n s u r a n c e St a r t i n g i n 1 9 9 2 , t h e C i t y h a s p r o v i d e d me d i c a l i n s u r anc e c o v e r a ge f o r i t s e mpl oy ee s v i a a p a r t i a l l y s e l f - i n s u r e d p l a n a d m ini s t er ed by Blue Cross/Blue Shield. It pr o v i d e s m edica l , d e n t a l , a n d v i s i o n b e n efi t s a n d i s o p e r a t e d a s a n I n t e r n a l S e r v i c e F u n d . Ra t e s ar e d e t e r m in e d i n c o n s u l t a t i o n with Blue Cross/Blue Shield ba s e d o n p a s t c l a i m e x p e r ien c e f o r t h e c o ming yea r p l u s a n a d m ini s t r a t i v e f e e . T h e r a t e s i n c l u d e a p r e m i u m f o r a c o m m e r cial "stop-loss" policy for when in d i v i du a l c l a i m e x c e e d s $ 7 5 , 0 0 0 i n c o v e re d c h a r g e s du r i n g a yea r . A r e c o n c i l i a t i o n o f c l a i m s p a y abl e f o l l o w s : Jun e 3 0 , 2 0 04 June 3 0 ,2 0 0 3 Cl a i m s p a y abl e , b e g innin g o f y ear 23 1 ,7 5 0 $ 296 , 9 9 5 $ Cl a i m s i n cu r r e d d u r i n g y ear 1, 5 3 5 ,9 8 5 2, 2 13 , 7 6 4 Cl a i m s p a i d d u r i n g y ear (1 , 5 5 9 ,4 7 9 ) (2 , 2 79 , 0 0 9 ) Cl a i m s p a y abl e , e n d o f y ea r 20 8 ,2 5 6 $ 231 , 7 5 0 $ Cl a i m s p a y able a r e i n c l u d e d i n a c c o u n t s p a y abl e s h o wn o n t h e S t at em e n t o f N e t A s s e t s . T h e a m ou n t b o o ke d a s c l a i m s p a y abl e w a s determined by reviewing pa y men t s made a f t e r t h e c l o s e o f t h e f i s c a l y ea r a n d f r o m a n e sti ma t e p r o v i d e d by t h e a d m ini s t r a t o r o f t h e se l f - i n s u r a n c e p l a n . T h e a ccounts payable reported in t h e S t a t e m e n t o f N e t A s s e t s , i n c l u d e s $ 1 3 , 2 5 6 o f c l a i m s s u b mit t e d b u t u n p a i d a t y ea r e n d , an d $ 1 9 5 , 00 0 f o r e s t i m a t e d c l a i m s incurred, but unreported at year en d . NO T E 2 1 . C O N T I N GE N CIE S Je w e l v . C i t y of B o z e man Th i s a c t i o n w a s f i l e d i n t h e U n i t e d S t a t e s D i s t r i c t C o ur t f o r t h e D i s t r i c t o f M o n t a n a . T h e mu l t i - c o u n t c o m pla i n t r e d u c e d i t s e l f t o a cost recovery action under th e F e d e r a l S u p e r f u n d ( C E R C L A ) a n d S t a t e S u p e r f u n d ( C E C R A ) . O n Ju l y 8 , 1 9 9 9, t h e C i ty , J e w e l F o o d S t o r e s , I n c . a n d t h e other parties reached a final se t t l e m e n t a g r e e m e n t i n t h i s a c t i o n . T h e s e tt l e m e n t , i n p a r t , r e q u i re s J e w e l F o o d S t or e s , I n c . t o pa y t h e Ci t y o f Bo z e m a n $1 , 2 0 0,000, the City and Jewel to ex t e n d a l t e r n a t i v e w a t e r su p p l y t o b u s i nes s e s an d r e s i d e n t s i n t h e No r t h 1 9 t h Av e n u e a r e a of t h e C i t y ; a nd J e w e l a n d t h e C i t y to share specified remediation co s t s o n a n e q u a l b a s i s ( 5 0 % e a c h ) u p t o a c u m ula t i ve a m ou n t o f $4 , 0 0 0 , 0 0 0 , an d f o r e l i g i b l e c o s t s i n e x c e s s o f t h a t a m ou n t , t o be shared 70% by Jewel and 30 % b y t h e C it y . As o f t h e J u n e 3 0 , 2 0 04 , th e o n l y r e m a i n i n g w o r k at t h e s i t e i s th e f i n a l p l u m e mon i t o r i n g o f t h e w e l l s a n d r e m edi al a c t i v i t y within the plume area. It is re a s o n a b l y p o s s i b l e t h a t t h e C i t y w i l l i ncu r r e m edi a t i o n c o s t s as ou t l i n e d i n t he s e t t l e m e n t , ho w e v e r , t h e a m ou n t o f c o s t s f o r which the City is contingently li a b l e c a n n o t b e r e a s o n a b l y e s t i mat ed a t t h i s t i m e . A c c o r d i n g l y, no l iab i l i t y h a s b e e n r e c o r d e d in t h e a c c o mp a n y ing f i n a n c i a l s ta t e m e n t s. 76 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 2 1 . C O N T I N G E N C I E S ( C O N T I N U E D ) St a t e o f M o n t a n a v . C i t y o f B o z e m a n In 1 9 8 9 a n d 1 9 9 0 , t h e S t a t e , d u r i n g t h e t e s t i n g o f w e l l s w i t h i n th e C i t y a n d n o r t h o f t h e B u t t e r y ’ s S h o p p i n g C e n t e r , f o u n d e l e v ated levels of PCE, DCE and TC E i n t h e s o i l a n d g r o u n d w a t e r . T h e s e c h e m i c a l s a r e c o n s i d e r ed h a z a r d o u s s u b s t a n c e s a n d c o n t a m i n a n t s u n d e r b o t h C E R C L A a n d C E C R A . A f t e r t h i s f i n d i n g wa s m a d e a n d o n D e c e m b e r 3 1 , 1 9 9 1 , M D H E S i d e n t i f i e d t h e C i t y a s a p o t e n t i a l l y l i a b l e p a r t y ( P L P ) u n d e r C E C R A . P u r s u a n t t o C E C R A, MDHES has re q u i r e d t h e C i t y a n d J e w e l , a n o t h e r n a m e d P L P , t o u n d e r t a k e v a ri o u s i n v e s t i g a t o r y a n d r e m e d i a t i o n a c t i v i t y i n c l u d i n g t h e p r o v i sion of an alternative water su p p l y t o r e s i d e n c e s a n d b u s i n e s s e s , t h e w e l l s o f w h i c h h a v e b e e n fo u n d t o c o n t a i n t h e c h e m i c a l s i n e x c e s s o f t h e m a x i m u m c o n t a minant level of the Clean Wa t e r A c t . Th e S t a t e h a s l e v i e d c o s t r e i m b u r s e m e n t d e m a n d s u p o n J e w e l a n d t h e Ci t y , a n d t h e y h a v e b e e n p a i d b y J e w e l a n d t h e C i t y . A d d i t i onal such demands can be an t i c i p a t e d o v e r t h e n e x t y e a r . F r o m t h e h i s t o r i c a l p e r s p e c t i v e o f s i m i l a r l y c o n t a m i n a t e d s i t es t h r o u g h o u t t h e U n i t e d S t a t e s , t he r e m e d i a t i o n a n d i n v e s t i g a t i o n ac t i v i t y m a y c o n t i n u e . T h e C i t y i s r e s p o n d i n g t o t h e S t a t e ' s CE C R A o r d e r b y c o m p l y i n g a s C E C R A i m p o s e s a b s o l u t e l i a b i l i t y u p o n any PLP. It is difficult, at th i s j u n c t u r e , t o g i v e a n y e s t i m a t e o f t h e c o s t s i n v o l v e d i n th i s m a t t e r , a s a l l a c t i v i t y w i l l b e d i r e c t e d b y t h e S t a t e . H o w e v e r, a s o f J u n e 3 0 , 2 0 0 4 , t h e C i t y h a s ac c r u e d $ 4 3 5 , 0 0 0 i n t h e W a s t e W a t e r F u n d f o r e s t i m a t e d r e m e d i a t i o n c o s t s . SW M B I A v . C i t y o f B o z e m a n Th e S o u t h w e s t M o n t a n a B u i l d i n g I n d u s t r y A s s o ci a t i o n ( S W M B I A ) f i l e d a l a w s u i t i n 1 9 9 9 ag a i n s t t h e C i t y o f B o z e m a n c h a l l e n g i n g t h e City of Bozeman im p a c t f e e o r d i n a n c e . T h e c o m p l a i n t , i n a d d i t i o n t o i t s n u m e r ou s c a u s e s o f a c t i o n , r e q u e s t s t h at t h e l a w s u i t p r o c e e d a s a c l a s s a c t i o n s u i t a n d r e q u e s t s r e f u n d o f al l i m p a c t f e e s p a i d . T h e C i t y h a s , a n d w i l l c o n t i n u e t o , d e f e n d a g a i n s t a n d o b j e c t t o t h e r e f u n d i n g o f i m p a c t f e e s . Sa c c o c c i a v . C i t y o f B o z e m a n Th e C i t y i s a d e f e n d a n t i n a l a w s u i t f i l e d by a l o c a l d e v e l o p e r c l a i m i n g t h e C i t y l a c k ed a u t h o r i t y t o r e g u l a t e “ b i g b o x ” s t o r e s , violations of procedural and su b s t a n t i v e d u e p r o c e s s , a n d o t h e r m a t t e r s r e l a t e d t o t h e d e v e l op e r ’ s f a i l e d s a l e o f l a n d t o t h e L o w e ’ s H o m e I m p r o v e m e n t s t o r e s . This matter is now scheduled fo r t r i a l o n M a y 2 3 , 2 0 0 5 . T h e C i t y h a s , a n d w i l l c o n t i n u e t o , de f e n d a g a i n s t t h e s e c l a i m s . I t i s t h e o p i n i o n o f t h e l e g a l c o u n se l r e p r e s e n t i n g t h e C i t y t h a t t h e Ci t y i s l i k e l y t o p r e v a i l i n t h i s l i t i g a t i o n , a n d t h e p l a i n t i ff w i l l r e c o v e r n o d a m a g e s a s a r e s u l t o f h i s c l a i m s . A c c o r d i n g l y , n o l i a b i l i t y h a s b e e n r e c o r d e d i n t h e ac c o m p a n y i n g f i n a n c i a l s t a t e m e n t s . Bo M o n t , Y e l l o w s t o n e M a n a g e m e n t v . C i t y o f B o z e m a n Th i s i s a n a c t i o n f i l e d a g a i n s t t h e C i t y o f B o z e m a n o n M a r c h 1 8 , 20 0 3 . T h e p l a i n t i f f s f i l e d t h i s l a w s u i t i n S t a t e D i s t r i c t C o u rt alleging Taking of Property wi t h o u t J u s t C o m p e n s a t i o n , V i o l a t i o n o f D u e P r o c e s s , a n d I m p o s i t i on o f U n l a w f u l M o r a t o r i u m . I t s t e m s f r o m t h e C i t y ' s a p p r o v a l of a land use application, but th a t a p p r o v a l i n c l u d e d c o n d i t i o n s r e l a t i n g t o t h e t i m i n g o f t h e p r o p os e d d e v e l o p m e n t . T h e C i t y i s v i g o r o u s l y d e f e n d i n g t h i s c l a i m a n d b e l i e v e s n o m a t e r i a l l o s s wi l l b e i n c u r r e d . A c c o r d i n g l y , n o l i a b i l i t y h a s b e e n r e c o r d e d i n t h e a c c o m p a n y i n g f i n a n c i a l s t a t e m e n t s . Fi s h e r D e v e l o p m e n t v . C i t y o f B o z e m a n Th i s i s a n a c t i o n f i l e d a g a i n s t t h e C i t y o f B o z e m a n o n M a r c h 1 7 , 20 0 3 . T h e p l a i n t i f f s f i l e d t h i s l a w s u i t i n S t a t e D i s t r i c t C o u rt a l l e g i n g U n r e a s o n a b l e E x e r c i s e of G o v e r n m e n t P o w e r a n d V i o l a t i o n o f D u e P r o c e s s . I t s t e m s f r o m t h e C i t y ' s a p p r o v a l o f a l a n d u s e a p p l i c a t i o n , b u t t h a t a p p r o v al included conditions relating to t h e t i m i n g o f t h e p r o p o s e d d e v e l o p m e n t . T h e C i t y i s v i g o r o u s ly d e f e n d i n g t h i s c l a i m a n d b e l i e v e s n o m a t e r i a l l o s s w i l l b e i nc u r r e d . A c c o r d i n g l y , n o l i a b i l i t y ha s b e e n r e c o r d e d i n t h e a c c o m p a n y i n g f i n a n c i a l s t a t e m e n t s . 77 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 2 2 . C O N S T R U C T ION C O M M I T M E N T On N o v e m ber 8 , 1 99 5 , t h e c i t i z e n s o f B o z e m a n a p p r o v e d a $ 5,00 0 , 00 0 bo n d i s s u e t o f i n anc e a s e r i e s o f t r a n s p o r t a ti o n p r oj e c t s c o ntained in the Bozeman Ur b a n T r a n s p or t a t i o n P l a n U p d a t e . A t t h e c l o s e o f f i sc a l 2 0 0 4 , $4 , 3 9 6 , 5 5 1 h a d be e n s p e n t o n c o n s t r uc t i o n p r o j e c t s . T her e i s $ 1,997,242 remaining for these tr a n s p o r t a t i o n p r o j e c t s . T o t a l r e v e n u e s f or t h i s p r o j e c t i n c l u d e th e o r i g i n a l b o n d pr o c e e d s a n d i n t e r e s t i n c o m e , n e t o f t h e a r b it r a g e l i a b i l i t y described in Note 8. NO T E 2 3 . S O L I D W A S T E L A N D F I L L C L O S U R E A N D P O S T - CL O S U R E C ARE C O S T S St a t e a n d F ede r a l l a w s an d r e g u l a t i o n s r e qu i r e t h e C i t y t o p l a c e a f i n a l c o v er o n i t s l and f i l l s i t e w h en i t s t o p s ac c e p t i n g w a s te and to perform certain ma i n t e n a n c e an d mon i t o r i n g f u n c t i o n s a t t h e si t e f o r 3 0 y ea r s a f t e r f i n a l c l o s u r e . T h e $ 1 , 9 2 1 , 3 8 0 , r e p o r te d a s l a n d f i l l cl o s u r e a n d p ost-closure care liability at Ju n e 3 0 , 2 0 0 4 , r e p r e s e n t s th e c u mula t i v e a m ou n t r epo r t e d t o d a t e ba s e d o n t h e us e o f 9 7 . 4 % o f t h e t o t a l ca p a c i t y o f t h e l a n d f i l l. The City will recognize the re m ain i n g e s t i m at e d co s t o f c l o s u r e an d p o s t - c l o s u r e ca r e o f $ 5 0 , 58 3 a s t h e r e m a i n i n g c a p a c i t y i s f i l l e d . T h e s e a m ou nt s a r e b a sed on what it would cost to pe r f o r m a l l cl o s u r e a n d p o s t - c l o s ur e c a r e i n 2 0 0 5 . T h e C i t y e x p e c t s t o c l o s e th e la n d f i l l i n 2 0 0 5 . I n 2 0 0 4 , th e C i t y b u d g e t e d f o r , a n d funded the current portion of t h e l a n d f i l l c l o s u r e a n d p o s t - c l o s u r e ca r e l i a b i l i t y th r o u g h n o r m al o p e r a t i o n s a n d ha s r e s e r ve d t h e c a s h in a c c o r d a n c e w i t h EPA requirements. The City is cu r r e n t l y w o r kin g i t s e n g i n e e r i n g f i r m t o r e v a l u a t e t h e l a n d f i l l ca p a c i t y a g a i n i n t h e s p r i n g o f 2 0 0 5 a n d e x p l o r e v a r i o u s a l t e r na t i v e s f o r e x t e n d i n g the landfill li f e . NO T E 2 4 . S E G M E N T I N F O R M A T I O N F O R E N T ERP R I S E F U N D S Be c a u s e t h e C i t y ’ s t h r e e en t e r p r i s e f u n d s ( w a t e r , w a s t e wa t e r , an d s o l i d w a st e ) a r e e a c h r e p o r t e d a s a m a j o r f u n d i n t h e f u n d f inancial statements, segment di s c l o s u r e s h e r e i n a r e n o t r e q u i r e d . NO T E 2 5 . I M P A C T F E E S On J a n u a r y 2 2 , 1 9 9 6 , t h e C i t y C o m m is s i o n a d o p t e d f i r e , w a t e r , w a s t e wa t e r a n d s t r e e t i m p a c t f e e s i n Or d i n a n c e n u m b e r 1 4 1 4 . T h e impact fees were first ef f e c t i v e o n M a r c h 2 3 , 1 9 9 6 . I m pa c t f e es w e r e s e t a t a pe r c e n t a g e of t h e c o s t o f th e i m pa ct , a s f o l l o w s : Orig in al , a s of Ma r c h 2 3 , 19 96 Ch an g e a s o f Ma y 1 0 , 19 9 8 Chan ge a s o f Janu a r y 1 5 , 1 99 9 Chan g e a s o f July 1 5 , 1 9 9 9 Fi r e i m pac t f e e 90% 90 % 90% 90 % Wa t e r i m pa c t fe e 35% 50 % 90% 90 % Wa s t e w ate r i m pa c t f e e 35% 50 % 90% 90 % St r e e t i m pa c t fe e 10% 10 % 75% 90 % 78 CI T Y O F B O ZE M A N , M O N T A NA NO T E S T O FI N A N C I A L S T A T E M E N T S ( C O N T I NU E D ) JU N E 3 0 , 2 0 04 NO T E 2 5 . I M P A C T F E E S ( C O N T I N U E D ) An a p p l i c a n t may o b t a i n an I m pa c t C r e d i t b y d e d i c ati o n o f n o n- si t e - r e l a t e d l a n d o r c o n s t r u cti o n of n o n- si t e - r e l a t e d i m pr o v e m e n t s. Credits must be made be f o r e t h e b e g i n n i n g of im pr o v e m ent c o n s t r u c t i o n , must c o mply w i t h t he C i t y ’ s Ca p i t a l I m pr o v e m ent s P r o g r am , a n d must be approved by the City Co mm is si o n . C r ed i t s ma y b e u s e d o n l y f o r l i k e - t y pe i mpa ct f ee s . T h e f u l l p r o v i s i o n s f o r i m pac t f e e c r e d i t s a r e c o n t a i n e d i n C hapter 3.24 of the Bozeman Mu n i c i p a l C o d e . F o r p r o p r ie t a r y t ype f u n d s , t h e C i t y re c o rd s t h e l i ab i l i t y a n d c a p i t a l i z e s t h e u nd e r l ying a s s e t . F o r g o v e r n m e nt a l t y pe funds the credits are only di s c l o s e d i n t he f o o t n ote s . F o r g ov e r n me n t - w i d e f i n a n c i a l r e po r t i n g t he o u t s t an d i n g c r e d i t s a r e r e p o r t e d a s d e f e r r e d r e v e n u e . The Water Impact Fee Fund, St r e e t I m pa c t F e e F u n d , a n d W a s t e w a t e r Im pa c t F e e F u n d ha v e r e c o r d e d a s a l i a b i l i t y $ 6 6 , 70 6 , $4 5 0 , 10 3 , a nd $ 1 9 4 , 73 0 , r e s p e c t i v e ly, as of June 30, 2004. The Fi r e I m pa c t F e e F u n d d o e s no t h a v e a n y ou t s t a n d i n g c r e d i t s . Th e f o l l o w i n g i m pa c t f ee r eve n u es w e r e c o l l e c t e d a n d e x p e n s e d / e x p e n d e d d u r i ng f i s c a l y ea r 2 0 0 4 : Be gi nning ba l a n c e s Impa c t f e e s Ot h e r i n c o m e Ex p ens e s a n d ex p end i t u re s Ending balances Fi r e 1 , 2 6 9, 9 1 7 $ 192 , 6 9 9 $ 21 , 4 06 $ (3 ,8 5 4 ) $ 1,480,168$ Wa t e r 4,0 6 8,4 9 7 1, 2 98 , 1 0 1 72 , 5 89 (2 5 ,96 1 ) 5,413,226 Wa st e w ate r 5,5 8 3,2 6 5 1, 6 41 , 4 8 9 98 , 8 09 (3 2 ,83 0 ) 7,290,733 St r e e t s 6,7 3 8,2 3 5 1, 6 22 , 1 2 8 12 0 , 2 33 (3 2 ,44 3 ) 8,448,153 To t a l 17 , 6 5 9, 9 1 4 $ 4, 7 54 , 4 1 7 $ 31 3 , 0 37 $ (9 5 ,08 8 ) $ 22,632,280$ NO T E 2 6 . S U B S E Q U E NT E V E N T S Co mm i t men ts On N o v e m ber 2 9 , 20 0 4, t he C i t y a g r e e d t o p r ov i d e br i d g e f i n a n c in g t o t h e L i br a r y f or c o n str u c t i o n o f i t s n e w b u i l d i n g. F i n a n c i ng will assist the library in pa y ing c o s t s d u r i n g c o ns t r u c t i o n . C o n s tr u c t i on i s s e t t o b e g i n i n t h e s p r i n g o f 2 0 05 . T h e a m ou nt o f t h e c o m m i t m en t i s e s t i m a t e d t o b e between $2.5 million and $4 m il l i o n , b u t w i l l v a r y d e p e n d i n g on ot h e r a v a i l a b l e f i n a n c i n g . Co n t i n g e n c i e s Wi l l i a m s P l u m bi n g , H e a t i ng a n d U t i l i t i es , I n c . v . C i t y o f B o z e m a n On N o v e m ber 2 9 , 2 0 0 4 , t he C i t y o f B o z e man r e c e i ved a c e r t i f i e d l e t t e r f r o m l e g a l c ou n s e l r e p r e s e n t i n g W i l l i a m s P lum bi n g , H e a t i n g and Utilities, Inc., fo r w a r d i n g a Re q u e s t f o r M e d i a t i o n r e l a t i n g t o t he A g r e e m en t b e twee n C i t y o f Bo z e m a n a n d W i l l i a m s P l u m bi n g , H e a t i ng a n d U t i l i t i es, Inc. for Rouse Avenue Se w e r T r u n k L i n e a n d W a t e r R e p l a c e m e n t . T h e me di a t i o n r e q u e s t h a s al r e a d y b e e n a m en de d on c e , a n d t h e C i t y e x p e c t s t h a t a d ditional amendments will be ma d e f o r a d d i t i o n a l c o m pen s a t i o n f o r t i me a n d p r i c e a d j u s t ment s o n th e A g r e e m e n t . T h e C i t y wi l l v i g o r o u s l y d e f e n d this c l a i m and believes no material loss wi l l b e i n c u r r e d . A c c o r d i n g l y , n o li a b i l i t y h a s b e e n r e c o r d e d i n t h e ac c o mpan y ing f i n a n c i a l s t a t e m e n t s . Th e C i t y i s i n v o l v e d w i t h n u m e r o u s o t h e r l a w s ui t s wh i c h a r i s e ou t o f t h e n o rm al co u r s e of o p e r a t i o n s b y t h e C i t y. M a n a g e m e n t o f the City intends to vi g o r o u s l y d e fe n d e a c h c l a i m an d b e l i e v e s n o m a t e ri a l l o s s e s w i l l b e i n c u r r e d o n su c h c l a i ms. 79 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O F I N A N C I A L S T A T E M E N T S ( C O N T I N U E D ) JU N E 3 0 , 2 0 0 4 NO T E 2 7 . P R I O R P E R I O D A D J U S T M E N T S Bo z e m a n M u n i c i p a l C o u r t f i n e s r e c e i v a b l e a nd d e f e r r e d r e v e n u e s h a d n o t b e e n a c c o u n t e d f o r i n t h e p r e v i o u s l y i s s u e d c o m p r e h e n s i v e annual financial report as of a n d f o r t h e y e a r e n d e d J u n e 30 , 2 0 0 3 . T h e a m o u n t o f f i n e s r e c e i v a b l e a s o f J u n e 3 0 , 2 0 0 3 i s $ 2 7 9 , 6 9 5 , w h i c h i s p r e s e n t e d n e t of an allowance for doubtful ac c o u n t s o f $ 7 0 , 0 0 0 . U n d e r t h e r e v e n u e r e c og n i t i o n m e t h o d o f t h e m o d i f i e d a c c r u a l b a s i s o f a c c o u n t i n g u s e d t o a c c o u n t f o r g o v e r nmental fund revenues, the am o u n t o f d e f e r r e d r e v e n u e s r e l a t e d t o t h e f i n e s r e c e i v a b l e a s o f J u n e 3 0 , 2 0 0 3 i s $ 2 7 9 , 6 9 5 . T h e r e f or e , n o r e s t a t e m e n t o f p r e v i ously reported general fund net as s e t s i s r e q u i r e d i n t h e g o v e r n m e n t a l f u n d f i n a n c i a l s t a t e m e n t s , a s t h e s e b a l a n c e s n e t t o z e r o . H o w e v e r , u n d e r t h e a c c r u a l m e t ho d o f a c c o u n t i n g u s e d t o p r e s e n t th e g o v e r n m e n t - w i d e f i n a n c i a l s t a t e m e n t s , a r e s t a t e m e n t o f p r e v i o us l y r e p o r t e d G e n e r a l F u n d n e t a s s e t s i s r e q u i r e d . A c c o r d i n g l y , a prior period adjustment has be e n r e f l e c t e d i n t h e a c c o m p a n y i n g g o v e r n m e n t- w i d e f i n a n c i a l s t a t e m e n t s t o r e s t a t e J un e 3 0 , 2 0 0 4 b e g i n n i n g o f t h e y e a r n e t a s s e ts, as illustrated below. As d e s c r i b e d i n N o t e 2 5 , i m p a c t f e e c r e d i t s i n t h e S t r e e t I m pa c t F e e F u n d a s o f J u n e 3 0 , 2 0 0 3 a m o u n t e d t o $ 3 1 0 , 1 6 1 . U n d e r t h e m odified accrual basis of ac c o u n t i n g u s e d t o a c c o u n t f o r g o v e r n m e n t a l f u n d s , n o a c c o u n t i n g f o r t h e g o v e r n m e n t f u n d i m p a c t f e e c r e d i t s i s n e c e s s a r y i n t h e government fund financial st a t e m e n t s . H o w e v e r , u n d e r t h e a c c r u a l m e t h o d o f a c c o u n t i n g u s e d to p r e s e n t t h e g o v e r n m e n t - w i d e f i n a n c i a l s t a t e m e n t s , a r e s t a t e ment of previously reported St r e e t I m p a c t F e e F u n d n e t a s s e t s i s r e q u i r e d . A c c o r d i n g l y , a p r io r p e r i o d a d j u s t m e n t h a s b e e n re f l e c t e d i n t h e a c c o m p a n y i n g g o vernment-wide financial st a t e m e n t s t o r e s t a t e J u n e 3 0 , 2 0 0 4 b e g i n n i ng o f t h e y e a r n e t a s s e t s , a s i l l u s t r a t e d b e l o w : Ju n e 3 0 , 2 0 0 3 G o v e r n m e n t a l A c t i v i t y n e t a s s e t s , a s p r e v i o u s l y r e p o r t e d $ 2 9 , 6 6 9 , 1 6 8 Fi n e s r e c e i v a b l e , n e t 2 7 9 , 6 9 5 Im p a c t f e e c r e d i t s ( 3 1 0 , 1 6 1 ) Ju n e 3 0 , 2 0 0 3 G o v e r n m e n t a l A c t i v i t y n e t a s s e t s , a s r e s t a t e d $ 2 9 , 6 3 8 , 7 0 2 C. R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O N OT H E R T H A N M A N A G E M E N T D I S C U S S I O N A N D A N A L Y S I S 80 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N T O F R E V E NU E , E X P E ND I T U R E S , AN D C HA N GE S I N F U N D B A L A NC ES – B U D G ET T O A C T UAL GE N E R A L F UN D Ye a r E n d e d J u n e 3 0 , 20 0 4 Variance with Actu al Final Budget Or i g in al Fi n al Amounts Positive (Negative) Bu dget ar y f und b alance, J u ly 1 3,08 3 , 8 3 2 $ 3, 0 8 3 , 8 3 2 $ 3, 08 3 , 8 3 2 $ -$ Re so ur ces ( inf l ows): Taxes 5,95 3 , 6 8 2 5, 9 5 3 , 6 8 2 6, 26 9 , 7 1 5 316,033 Sp e c i al a s sessmen ts - - 96 96 Lice n ses a n d p e r m its 27 3 , 0 0 0 27 3 , 0 0 0 28 2 , 0 7 8 9,078 In terg ov er n men tal 3,74 0 , 4 6 1 3, 7 4 0 , 4 6 1 3, 81 6 , 7 8 4 76,323 Char g es f or serv ices 1, 43 2 , 2 1 6 1, 4 3 2 , 2 1 6 1, 59 0 , 8 5 6 158,640 Fines a n d f orf ei tures 1,24 6 , 5 0 0 1, 2 4 6 , 5 0 0 1, 10 6 , 4 5 1 (140,049) Sa l e o f a s s e t s - - 84 , 4 4 2 84,442 In tere st o n i nvestments 40 , 0 0 0 40 , 0 0 0 27 , 3 8 9 (12,611) Tran sfer s f rom o t her f unds 2,17 3 , 8 2 3 2, 1 7 3 , 8 2 3 2, 10 9 , 4 3 9 (64,384) Other 19 9 , 0 0 0 199 , 0 0 0 25 0 , 4 7 1 51,471 Amou nts a v ai labl e f or a p p r op r i ation 18 , 14 2 , 5 1 4 18 , 1 42 , 5 1 4 18 , 62 1 , 5 5 3 479,039 Ch ar g es t o a p prop ri a t i o n s ( o utflows) : Curr e nt Genera l g overnment 3, 56 5 , 9 8 5 3, 5 9 0 , 9 8 5 3, 58 6 , 2 3 7 4,748 Pu bl ic s afety 5, 63 2 , 5 1 9 6, 4 6 1 , 3 6 1 6, 35 0 , 4 1 8 110,943 Pu bl ic s erv ice 58 4 , 0 7 8 58 4 , 0 7 8 41 1 , 4 3 3 172,645 Pu bl ic w elfar e 3,35 5 , 1 2 2 3, 2 2 0 , 1 2 2 3, 08 3 , 1 3 0 136,992 Other 35 0 , 5 5 3 25 0 , 5 5 3 27 3 , 7 8 5 (23,232) Capi tal o u tlay 25 9 , 2 2 7 25 9 , 2 2 7 65 2 , 1 9 9 (392,972) Debt s erv ice 87 , 4 8 8 87 , 4 8 8 79 , 6 3 7 7,851 Tran sfer s t o o t her funds 1,32 6 , 4 6 0 707 , 6 1 8 83 9 , 1 7 3 (131,555) To t al c h ar g es to a p p rop r i ation s 15 , 16 1 , 4 3 2 15 , 1 61 , 4 3 2 15 , 27 6 , 0 1 2 (114,580) Bu dget ar y f und b alance, J u ne 3 0 2, 98 1 , 0 8 2 $ 2, 9 81 , 0 8 2 $ 3, 34 5 , 5 4 1 $ 364,459$ Budg et e d A mou nts 81 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N T O F R E V E NU E , E X P E ND I T U R E S , AN D C HA N GE S I N F U N D B A L A NC ES – B U D G ET T O A C T UAL ST R E E T A N D F I R E I M P A C T F E E S F U N D YE A R E N DED J U N E 3 0 , 2 0 0 4 Variance with Actu al A mou nts Final Budget Or ig in al Fi n al Budgeta r y B asis Positive (Negative) Bu dget ar y f und ba lance , J u ly 1 8,0 0 8 , 1 53 $ 8, 0 08 , 1 5 3 $ 8, 0 0 8 , 15 3 $ -$ Re so ur ces ( inf l ows): Char g es f or s erv ice s 1, 0 4 7 , 6 60 1, 0 4 7 , 6 6 0 1, 9 5 4 , 77 0 907,110 In tere s t o n i nvestments 90 , 0 00 90 , 0 0 0 14 1 , 63 9 51,639 Amou nts a v ai lable f or a pp r o p r iation 9,1 4 5 , 8 13 9, 1 45 , 8 1 3 10,1 0 4 , 56 2 958,749 Ch a r ge s t o a ppropriations ( out fl ows) : Curr e n t Pu bl ic s afety 15 6 , 0 00 15 6 , 0 0 0 3, 85 4 152,146 Publi c s e r vic e - - 32 , 44 3 (32,443) Capi tal o u tlay 5,5 4 5 , 2 80 5, 5 45 , 2 8 0 - 5,545,280 Total c h arges t o a p p r o p ri at ions 5, 7 0 1 , 2 80 5, 7 01 , 2 8 0 36 , 29 7 5,664,983 Bu dget ar y f und ba lance , J u ne 30 3, 4 4 4 , 5 33 $ 3, 4 44 , 5 3 3 $ 10,0 6 8 , 26 5 $ 6,623,732$ Budg et e d A mou nts 82 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N T O F R E V E NU E , E X P E ND I T U R E S , AN D C HA N GE S I N F U N D B A L A NC ES – B U D G ET T O A C T UAL CO M M U N ITY D E V E L O P MEN T L O A N F U N D YE A R E N DED J U N E 3 0 , 2 0 0 4 Variance with Actu al A mou nts Final Budget Or ig in al Fi n al Budgeta r y B asis Positive (Negative) Bu dget ar y f und ba lance , J u ly 1 88 9 , 8 21 $ 88 9 , 8 2 1 $ 88 9 , 82 1 $ -$ Re so ur ces ( inf l ows): In terg ov er n men tal - - 3, 93 8 3,938 In tere s t o n i nvestments 12 , 0 00 12 , 0 0 0 10 , 56 4 (1,436) Loan r epa y ment 17 5 , 2 00 17 5 , 2 0 0 16 6 , 69 2 (8,508) Ot h er - - 19 4 194 Amou nts a v ai lable f or a pp r o p r iation 1,0 7 7 , 0 21 1, 0 77 , 0 2 1 1, 0 7 1 , 20 9 (5,812) Ch a r ge s t o a ppropriations ( out fl ows) : Curr e n t Pu bl ic w elfar e 64 6 , 9 60 646 , 9 6 0 59 3 , 39 0 53,570 Total c h arges t o a p p r o p ri at ions 64 6 , 9 60 646 , 9 6 0 59 3 , 39 0 53,570 Bu dget ar y f und ba lance , J u ne 30 43 0 , 0 61 $ 430 , 0 6 1 $ 47 7 , 81 9 $ 47,758$ Budg et e d A mou nts 83 CI T Y O F B O ZE M A N , M O N T A NA N O T E S T O RE Q U I R E D SU P P L E M E N T A R Y I N F ORM A T I O N O T H E R T H A N M A N A G E M E N T D I S CUS S I O N AND ANALYSIS Ye a r E n d e d J u n e 3 0 , 20 0 4 NO TE A . E X P LANATIO N O F DI F F E R ENC ES B ETWEE N B UD G ET ARY I N F LOW S AND O UTFLOWS A ND G A AP R EVE N U ES A ND EXPENDITURES Community Ge n era l ImpactDevelopment Fu n d Fe esLoan Fund So u rce s /i n flow s o f r e s ource s Actual a m ou nts ( b u dgetary ba s is) " a v ailable f or a pp r o p r iation" f rom t he b u dg et ar y compar i son s chedu le 18 , 62 1 , 5 5 3 $ 10,104,562 $ 1,071,209$ Di f fere n ce s - b u dg et t o G A AP: The f und b a l a n ce a t t h e b e g innin g o f t h e y ear i s a b u dg et a r y r e s ource b u t i s not a c urr e n t-yea r r e venue f or f inancial r e po r t ing p u rp o s es . (3, 08 3 , 8 3 2) (8,008,153) (889,821) Tran sfer s f rom ot h er f unds a r e i n flow s o f b u dg et a r y r e s ource s b u t a r e n ot re v enues f or financial r e p o r ting p u rp o s es . (2, 10 9 , 4 3 9) - - The p r o c e e d s f rom t h e s ale o f a s sets ar e b u dg et a r y re s ources b u t a re r e g ard e d as a s pec i a l i t em , r a t her t h an r e v enue, f or financia l r e p o r t i n g p u rp o s es (8 4 , 4 4 2 ) - - Tota l revenues a s r eporte d on t h e s tat e m en t o f r evenues, e x pendit u res, a n d chan ges i n f und b a l ances - g overn mental f unds 13 , 34 3 , 8 4 0 $ 2,096,409 $ 181,388$ Us e s / o ut f l o w s o f r e so ur ce s Actu al a m ou nts ( b u dgeta r y ba s is) " tot a l c h ar g es t o a p p r o p r i a t i o n s" f rom t h e budg et ary c o m par i son s chedu le 15 , 27 6 , 0 1 2 $ 36,297 $ 593,390$ Di f fere n ce s - b u dg et t o G A AP: The C it y b u dg ets f or c lai m s a nd c o m pen sate d a b s ence s o n t h e c a s h b a s is, ra t h er t han t h e m od i f ied a c c r u al b a s is. - - - Tran sfer s t o o t h er f unds a r e o u tf lo w s o f b u dg et a r y r e s ources b u t a re n ot ex pe n diture s for f inancial r e po r t ing p u rp o ses . (83 9 , 1 7 3) - - Tota l ex pendit u res a s r eporte d o n t he s t a t e m en t o f r evenues , e x pendit u res, a n d ch an ges i n f und b a l ance s - g overn mental f unds 14 , 43 6 , 8 3 9 $ 36,297 $ 593,390$ D. S U P P L E M E N T A L I N F O R M A T I O N NO N M A J O R G O V E R N M E N T A L F U N D S SP E C I A L R E V E N U E F U N D S De p a r t m e n t a l S p e c i a l R e v e n u e s – A c c o u n t s f o r m o n i e s r e c e i v e d a n d e x p e n d e d f o r p r oj e c t s r e l a t i n g t o v a r i o u s C i t y d e p a r t m e n t s . Ci t y P l a n n i n g B o a r d – A c c o u n t s f o r m o n i e s r e c e i v e d f r o m v a r i o u s so u r c e s i n c l u d i n g p r o p e r t y t a xe s , f e e s , a n d C o u n t y r e v e n u e s . E x p e n d i t u r e s a r e f o r short-term and lo n g - t e r m p l a n n i n g o f C i t y a n d a d j a c e n t C o u n t y z o n e s . S e c t i o n 76 - 1 - 1 0 2 M C A p r o v i d e s t h a t t h e p u r p o s e o f C i t y p l a n n i n g i s t o e n co u r a g e l o c a l g o v e r n m e n t s t o im p r o v e t h e p r e s e n t h e a l t h , s a f e t y , c o n v en i e n c e , a n d w e l f a r e o f t h e c i t i z e n s . In s u r a n c e – A c c o u n t s f o r p r o p e r t y t a x r e v e n u e s r e c e i v e d a n d t r a n s f e r r e d t o t h e g e n e r a l f u n d f o r p r e m i u m s a n d d e d u c t i b l e s o n g r o u p i n s u r a n ce coverage for City em p l o y e e s a n d C i t y ’ s p r o p e r t y a n d l i a b i l i t y i n s u r a n c e o t h e r t h a n f o r p r o p r i e t a r y f u n d s . ( T h e a c c o u n t i n g f o r s e l f i n s u r a n c e a c t iv i t i e s a r e c a p t u r e d i n t h e I n t e r n a l S e r v i c e Fu n d s . ) Pe n s i o n – A c c o u n t s f o r p r o p e r t y t a x r e v e n u e s r e c e iv e d a n d t r a n s f e r r e d t o o t h e r f u n d s f o r t h e C i t y ’ s s h a r e of e n t i t l e m e n t b e n e f i t s f o r th e p o l i c e o f f i c e r s , firefighters, and ot h e r C i t y e m p l o y e e s , e n d e r r e g u l a t i o n o f t h e S t a t e g o v e r n m e n t . T h e C i t y i s t h e A g e n t / E m p l o y e r f o r t h i s p r o g r a m , w h i c h i s a d m i ni s t e r e d b y t h e S t a t e . Ga s T a x A p p o r t i o n m e n t – A c c o u n t s f o r r e v e n u e s f r o m S t a t e g a so l i n e t a x e s a p p o r t i o n e d f r o m t h e S t a t e of M o n t a n a D e p a r t m e n t o f H i g h w a y s . Go v e r n m e n t S t u d y C o m m i s s i o n – A c c o u n t s f o r r e v e n u e s a n d e x p e n d i t u r e s o f a v o t e m a n d a t e d g o v e r n m e n t r e v i e w . S e c t i o n 7 - 3 - 1 8 4 M C A e s t a b l i s h e d a f o r m a t f o r t h e re v i e w o f C i t y g o v e r n m e n t s . O n J u n e 7 , 1 9 9 4 , B o z e m a n v o t e r s d e c i d e d t o c o n d u c t a r e v i e w o f t h e i r l o c a l g o v e r n m e n t . Hi s t o r i c P r e s e r v a t i o n – A c c o u n t s f o r m o n i e s r e c e i v e d f o r m t h e S t a t e H i s t o r i c a l S o c i et y . E x p e n d i t u r e s a r e t o f i n a n c e a h i s t o r i c a l p r e s e r v a t i o n p r o g r am director who wo r k s a s a n a d v o c a t e f o r p r e s e r v a t i o n a n d c r e a t es p u b l i c a n d c i v i c a w a r e n e s s o f p r e s e r v a t i o n . Dr u g F o r f e i t u r e s – A c c o u n t s f o r m o n i e s r e c e i v e d f r o m f i n e s a n d f o r f e i t u r e s o f d r u g -r e l a t e d c r i m i n a l p r o s e c u t i o n , t o be e x p e n d e d o n d r u g l a w e n f orcement and ed u c a t i o n . Fi r e T r u c k – A c c o u n t s f o r p r o p e r t y t a x r e v e n u e s r e c e i v e d a n d e x p e n d e d f o r t h e p u r c h a s e o f a n e w f i r e t r u c k . Be a u t i f i c a t i o n o f B o z e m a n – A c c o u n t s f o r m o n i e s f o r s p e c i a l b e a u t i f i c a t i o n p r o j e c t s t h r o u g h o u t B o z e m a n . St r e e t a n d T r e e M a i n t e n a n c e – A c c o u n t s f o r s p e c i a l a s s e s s m e n t r e v e n u e s l e v i e d , r e c e i v e d , a n d e x p e n d e d f o r s t r e e t a n d t r e e m a i n t e n a n c e p r o v i d e d t o s p e c i f i c property ow n e r s . Co n s o l i d a t e d P a r k i n g D i s t r i c t s – A c c o u n t s f o r r e c e i p t s a n d r e v e n u e s a n d r e l a t e d e x p e n d i t u r e s f o r t h e v a r i o u s p a r k i n g d i s t r i c t s , i n a c c o r d a n c e t o T i t l e 7 , C h a p ter 14 MC A . La w a n d J u s t i c e C e n t e r – A c c o u n t s f o r t h e r e c e i p t a n d e x p e n d i t u r e o f m o n i e s e a r m a r k e d by t h e C i t y C o m m i s s i o n f o r t h e C i t y ’s s h a r e o f t h e L a w a n d J u s t i ce Center re n o v a t i o n . Sp e c i a l P r o j e c t s – A c c o u n t s f o r t h e r e c e i p t a n d e x p e n d i t u r e o f V a l l e y U n i t S p e c i a l I m p r o v e m e n t D i s t r i c t f u n d s w h i c h a r e i n e x c e s s o f t h e a m o u n t s required to retire the ou t s t a n d i n g S I D i n d e b t e d n e s s . Co m m u n i t y T r a n s p o r t a t i o n – A c c o u n t s f o r f e d e r a l f u n d i n g f o r h i g h w a y s , m a s s t r a n s i t , a n d a l t e r n a t i v e t r a n s p o r t a t i o n p r o g r a m s a s d e f i n e d b y t h e I n t e r m o d a l Surface Tr a n s p o r t a t i o n E f f i c i e n c y A c t ( I S T E A ) . M o ne y i s d i s t r i b u t e d o n a p e r - c a p i t a b a s i s . Bu i l d i n g I n s p e c t i o n – T h i s f u n d w a s e s t a b l i s h e d t o a c c o u n t f o r a l l a c t i v i t y o f e n f o r c i n g t h e b u i l d i n g r e g u l a t i o n s a d o p t e d b y t h e C i t y . I t i n c l u d e s all the money and staff as s o c i a t e d w i t h e x e c u t i n g a n y a s p e c t o f t h e c o d e e n f o r c e m e n t p r og r a m . S e c t i o n 5 0 - 6 0 - 1 0 1 M C A e s t a b l i s h e d t h e c o d e e n f o r c e m e n t p ro g r a m r e q u i r e m e n t . Hi g h w a y S a f e t y I m p r o v e m e n t P r o j e c t s – A c c o u n t s f o r g r a n t s , o t h e r r e v e n u e s , a n d e x p e n d i t u r e r e l a t e d t o t h e U . S . D e p a r t m e n t o f T r a n s p o r t a t i o n f u n d e d p r o g r a m t o re d u c e n u m b e r a n d s e v e r i t y o f t r a f f i c a c c i d e n t s . Co m m u n i t y H o u s i n g – A c c o u n t s f o r m o n e y s e t a s i d e b y t h e C i t y C o m m i s s i o n a n d r e l a t e d e x p e n d i t u r e f o r t h e e s t a b l i s h m e n t o f s a f e , d e c e n t a n d a f f o r d able housing for lo w a n d m o d e r a t e - i n c o m e c i t i z e n s . Do w n t o w n I m p r o v e m e n t D i s t r i c t – I n N o v e m b e r 1 9 9 5 , t h e C i t y a d o p t e d a n U r b a n R e n e w a l P l a n f o r t h e d o w n t o w n a r e a . T h i s f u n d a c c o u n t s f o r t h e r e v e n u e a n d ex p e n d i t u r e s a s s o c i a t e d w i t h t h e d i s t r i c t . St r e e t L i g h t i n g – A c c o u n t s f o r s p e c i a l a s s e s s m e n t r e v e n u e s l e v i e d , r e c e i v e d a n d e x p e n d e d f o r s t r e e t a n d p u b l i c h i g h w a y l i g h t i n g p r o v i d e d t o s p ecific property owners. Pa r k L a n d – A c c o u n t s f o r m o n i e s d o n a t e d f o r t h e p u r p o s e o f a c q u i r i n g a n d d e v e l o p i n g C i t y P a r k s . Mu n i c i p a l C o u r t R e s t i t u t i o n – A c c o u n t s f o r c h e c k s t h a t w e r e c a n c e l e d o n t h e re s t i t u t i o n c h e c k i n g a c c o u n t , p e r M C A 4 6 - 1 8 - 2 5 0 . DE B T S E R V I C E F U N D S Sp e c i a l I m p r o v e m e n t D i s t r i c t ( S I D ) R e v o l v i n g – A c c o u n t s f o r p r o p e r t y t a x r e v e n u e s r e c e i v e d a n d e x p e n d e d f o r t h e p a y m e n t o f s p e c i a l i m p r o v e m e n t d i s t r i c t b o n d pr i n c i p a l a n d i n t e r e s t . Ge n e r a l O b l i g a t i o n B o n d s - A c c o u n t s f o r t h e d e b t s e r v i c e p a y m e n t s a s s o c i a t e d w i t h t h e L i b r a r y a n d T r a n s p o r t a t i o n g e n e r a l o b l i g a t i o n b o n d s . CA P I T A L P R O J E C T S F U N D S Ge n e r a l I m p r o v e m e n t s - A c c o u n t s f o r t h e c o n s t r u c t i o n o f g e n e r a l i m p r o v e m e n t p r o j e c t s f i n a n c e d b y s p e c i a l a s s e s s m e n t s o t h e r t h a n t h o s e f i n a n c e d b y p r oprietary funds. PE R M A N E N T F U N D S Pe r p e t u a l C e m e t e r y C a r e - A c c o u n t s f o r 1 5 % m a i n t e n a n c e f e e r e c e i v e d f r o m t h e s a l e o f C i t y c e m e t e r y p l o t s w h i c h i s t o b e u s e d f o r p e r p e t u a l c a r e . T h e i nterest income fr o m t h e t r u s t i s t r a n s f e r r e d t o t h e g e n e r a l f u n d f o r u s e i n m a i n t a i n i n g t h e C i t y ’ s c e m e t e r y . 84 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I N G B A L A N C E S H E E T NO N M AJ O R G O V E R NMENT A L F U N DS Ju n e 3 0 , 2 004 Sp e c i a l R evenue F u nds De p art m ental Cit y Government Sp ec i a l Pla n nin g Gas TaxStudy Revenues Board In sura n ce Pen sion App o r tionmentCommission AS SE TS Cash an d c a s h e q u ivalents 1,27 6 , 1 0 7 $ 12 8 , 1 5 3 $ - $ 13 6 , 5 7 1 $ 253,604 $ -$ Rec e i vabl e s Pr o p e r t y t axes 40 , 9 8 9 16 , 4 6 9 14 9 , 2 4 5 66 , 9 1 5 - - Cust o mer s, n e t 562 - - - - - Spec i a l a ssessmen ts - - - - - - Other g overn ments 19 4 , 0 6 8 - - - - - Due f rom o t her C ity f unds - - - - - - Prep a id e x pe ndit u re s - - - - - - No t e s r e c e i v abl e - - - - - - Restri ct e d c a sh a n d ca s h e q u ivale nts - - - - - - Total a s sets 1, 51 1 , 7 2 6 14 4 , 6 2 2 14 9 , 2 4 5 20 3 , 4 8 6 253,604 - LIABIL IT IE S A ND F UND B A LANC ES Liab il i t i e s : Acc o u nts p a y abl e 74 , 8 6 2 26 , 0 9 1 - - 104,128 - Acc r u ed e m pl o y ee b e n efit s p a y abl e 10 - - 63 2 - - Deferred r e v enue 15 , 4 9 7 4, 5 8 7 51 , 5 8 2 24 , 5 5 6 - - Due t o o t her C ity f unds 54 9 , 0 7 1 - 97 , 6 6 3 15 , 1 1 3 - - Tota l l i a bi l i t i e s 63 9 , 4 4 0 30 , 6 7 8 14 9 , 2 4 5 40 , 3 0 1 104,128 - Fund b alanc es: Re s e r v e d f or: Rents a n d l e a s es - - - - - - Pa r k d e v elop m ent - - - - - - Unre s erv ed 87 2 , 2 8 6 11 3 , 9 4 4 - 16 3 , 1 8 5 149,476 - To t al f und b a l ance s 87 2 , 2 8 6 11 3 , 9 4 4 - 16 3 , 1 8 5 149,476 - Tota l l i a b i l i t i e s a nd f und b a l a n ce s 1, 51 1 , 7 2 6 $ 14 4 , 6 2 2 $ 14 9 , 2 4 5 $ 20 3 , 4 8 6 $ 253,604 $ -$ 85 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I N G B A L A N C E S H E E T NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ju n e 3 0 , 2 004 Sp ecial R e ve nu e F u n d s Be a u ti - Street and Hi s t o ric Dr u g fica t i o n Tree Pres er v ati on Fo r f ei t u re s Fire T ruck of B o z e m anMaintenance AS SE TS Ca sh a n d c ash e qui va l ent s 12,501 $ - $ - $ - $ 574,679$ Rec e i v abl e s Pr op e r t y t axes - - 29 - - Cu st o mers, n e t - 71 3 - - 4,124 Sp e c i a l a s sessmen ts - - - - 98,505 Othe r g o vernments - 26 , 3 2 5 - - - Due f r o m o the r C i ty f un d s - - - - - Prep a i d e x pe n dit u re s - - - - - No t e s r e c e i v abl e - - - - - Restri c ted c a s h a n d c a sh e q u ivale n ts - - - - - Tota l a s s e t s 12,5 01 27 ,0 3 8 29 - 677,308 LIABIL IT IE S A ND F U N D B ALANC ES Liab i l i t i e s : Acc o u nts p a y abl e 1,3 5 4 - - - 113,249 Acc r u ed e m pl oy ee b e nefits p ayabl e 53 8 - - - 113 De f err ed r e v enue - - 29 - - Du e t o o ther C it y f unds - 51 ,4 0 7 - 2, 49 2 - Tota l l i a b i l i t i e s 1,8 92 51 ,4 0 7 29 2, 49 2 113,362 Fund b alanc es: Reserv ed f or: Rents a n d l e a s es - - - - - Pa rk d e v elop m en t - - - - - Unre s erv ed 10 ,6 0 9 (2 4 ,36 9 ) - (2 , 49 2 ) 563,946 Total f und b a l ances 10 ,6 0 9 (2 4 ,36 9 ) - (2 , 49 2 ) 563,946 Tota l l i a b il i ti e s a n d f und b ala n ce s 12,5 01 $ 27 ,0 3 8 $ 29 $ - $ 677,308$ 86 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I N G B A L A N C E S H E E T NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ju n e 3 0 , 2 004 Sp ecial R e venu e F u nd s Consol i d a t e d Law a n d Com munit y Park in g Justi c e Spec i a l Tran s- Building Highway Di s trict s Cen te r Projec t s porta t i o n InspectionSafety AS SE TS Cash an d c a s h e q u ivale n ts 73 , 8 9 5 $ - $ 65 8 , 0 0 6 $ - $ 577,225$ 18,120$ Rec e i vabl e s Pr o p e r t y t axes - - - - - - Cust o mer s, n e t - - - - 1,530 - Spec i a l a ssessmen ts - - - - - - Ot he r g o ve rnment s - - - 1, 0 2 9 - - Due f rom o t her C ity f unds - - - - - - Pr e p a id e x pe nditure s - 58 0 , 1 25 - - - - No t e s r e c e i v abl e 1,7 3 9 - - - - - Restri ct ed c a sh a n d ca s h e q uivalents 23 1 , 8 7 5 - - - - - Total a s sets 30 7 , 5 0 9 58 0 , 1 25 65 8 ,0 0 6 1,02 9 578,755 18,120 LIABIL IT IE S A ND F UND B A LANC ES Liab i l i t i e s : Acc o u nts p a y abl e 80 - - 5, 6 2 8 6,769 - Acc r u ed e m ploy ee b enefits p a y abl e - - - - 4,451 - Deferred r e v enue 1, 7 3 9 - - - - - Du e t o o ther Ci t y f unds - - - 14 ,8 3 0 - - Tota l l i a b il i t i e s 1,8 19 - - 20 ,4 5 8 11,220 - Fund b alanc es: Re s e r v e d f or: Rents a n d l e a s es - 58 0 , 1 25 - - - - Pa r k d e v elop m ent - - - - - - Unre s erv ed 30 5 , 6 9 0 - 65 8 ,0 0 6 (1 9, 4 2 9 ) 567,535 18,120 To t al f und b a l ance s 30 5 , 6 9 0 58 0 , 1 25 65 8 ,0 0 6 (1 9, 4 2 9 ) 567,535 18,120 Tota l l i a b i l i t i e s a nd f und b a l a n ces 30 7 , 5 0 9 $ 58 0 , 1 25 $ 65 8 ,0 0 6 $ 1,02 9 $ 578,755$ 18,120$ 87 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I N G B A L A N C E S H E E T NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ju n e 3 0 , 2 004 Sp ec ial R e v e nu e F u n d s Do w nto wn Communit y Im pr o v em en t Str e e t Par k Municipal Court Ho u sin g Dis t r ic t Lig hti n g Lan d RestitutionTotal AS SE TS Cash an d c a s h e q u ivale n ts 1,5 2 1 $ 55 4 , 0 0 6 $ 79 $ 62 , 9 2 2 $ 228$ 4,327,617$ Rec e i vabl e s Pr o p e r t y t axes - - - - - 273,647 Cust o mer s, n e t - - - - - 6,929 Spec i a l a ssessmen ts - 6, 9 2 7 8, 5 4 0 - - 113,972 Ot he r g o ve rnment s - - - - - 221,422 Due f rom o t her C ity f unds 32 , 7 14 - - - - 32,714 Pr e p a id e x pe nditure s - - - - - 580,125 No t e s r e c e i v abl e 11 2 , 0 8 3 - - - - 113,822 Restri ct e d c a sh a n d c a s h e q u ivale nts - - - - - 231,875 Total a s sets 14 6 , 3 18 56 0 ,9 3 3 8, 6 1 9 62 , 9 2 2 228 5,902,123 LIABIL IT IE S A ND F U ND E Q UI T Y Liab il i t i e s : Acc o u nts p a yabl e - 20 , 7 4 4 12 , 5 1 4 40 3 225 366,047 Acc r u ed e m ploy ee be n efits p a y able - - - - - 5,744 Deferred r e v enue 11 2 , 0 83 - 33 5 - - 210,408 Due t o o the r C i ty f u nd s - - 13 0, 7 5 9 - - 861,335 Tota l l i a b il i t i e s 11 2 , 0 83 20 ,7 4 4 14 3, 6 0 8 40 3 225 1,443,534 Fund b alanc es: Re s e r v e d f or: Rents a n d l e a s es - - - - - 580,125 Pa r k d e v elop m en t - - - 62 , 5 1 9 - 62,519 Un re s erv ed 34 , 2 3 5 54 0 ,1 8 9 (1 3 4,9 8 9 ) - 3 3,815,945 Tota l f und b ala n ce s 34,23 5 54 0 ,1 8 9 (1 3 4,9 8 9 ) 62 , 5 1 9 3 4,458,589 Tota l l i a b i l i t i e s a nd f und b a l a n ce s 14 6 , 3 1 8 $ 56 0 ,9 3 3 $ 8, 6 1 9 $ 62 , 9 2 2 $ 228$ 5,902,123$ 88 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I N G B A L A N C E S H E E T NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ju n e 3 0 , 2 004 Capi ta l P roj e c t s Perm anent Debt S e rvice F u n d s Fun d FundTotal Nonmajor SI D G.O . Ge neral CemeteryGovernmental Re v olvin g Bonds Tota l Im pr o vem ents CareFunds AS SE TS Cash an d c a s h e q u ivale n ts 1,4 9 4 , 4 9 4 $ 45 3, 3 5 4 1, 9 4 7 , 8 4 8 $ 2, 0 4 2 , 29 9 $ 525,155 $ 8,842,919$ Rec e i vabl e s Pr o p e r t y t axes 12 6 59 , 4 7 6 59 , 6 0 2 - - 333,249 Cust o mer s, n e t - - 20 , 44 9 1,044 28,422 Sp ecia l a s s e ss m ents - - - - - 113,972 Ot he r g o ve rnment s - - - - - 221,422 Due f rom o t her C ity f unds 295,7 2 4 - 29 5 , 7 2 4 - - 328,438 Prep a id e x pe ndit u re s - - - - - 580,125 No t e s r e c e i v abl e - - - - - 113,822 Restri ct e d c a sh a n d ca s h e q u ivale n ts - 3, 3 6 6 ,5 9 5 3, 3 6 6 ,5 9 5 - - 3,598,470 To t al a s sets 1, 7 9 0, 3 4 4 3, 8 7 9 ,4 2 5 5, 6 6 9 ,7 6 9 2, 0 6 2 , 74 8 526,199 14,160,839 LIABIL IT IE S A ND F UND B A LANC ES Liab il i t i e s : Acc o u nts p a y abl e 7,6 1 5 - 7, 6 1 5 25 , 49 3 - 399,155 Acc r u ed e m pl o y ee b e n efit s p a y abl e - - - - - 5,744 Ma t ured b o n ds p a y abl e - 39 5 , 0 0 0 39 5 , 0 0 0 - - 395,000 Ma t u re d i n te r est p ayable - 17 6 , 6 0 5 17 6 , 6 0 5 - - 176,605 Defe rr ed r evenu e 126 22 , 6 0 4 22 , 7 3 0 - 14,013 247,151 Du e t o o ther Ci t y f unds - - - - - 861,335 Tota l l i a b il i t i e s 7,7 41 59 4, 2 0 9 60 1 ,9 5 0 25 , 49 3 14,013 2,084,990 Fund b alanc es: Re s e r v e d f or: Rents a n d l e a s es - - - - - 580,125 Endo w ment - - - - 512,186 512,186 Pa r k d e v elop m ent - - - - - 62,519 Debt s ervice 1,7 8 2,6 0 3 3, 2 8 5 , 2 1 6 5, 0 6 7 , 8 1 9 - - 5,067,819 Un re s erv ed - - - 2, 0 3 7 , 25 5 - 5,853,200 To t al f und b a l ance s 1, 7 8 2, 6 0 3 3, 2 8 5 ,2 1 6 5, 0 6 7 ,8 1 9 2, 0 3 7 , 25 5 512,186 12,075,849 Total l i a b ili t i e s a n d f und b ala n ces 1,790,344 $ 3, 8 7 9 ,4 2 5 $ 5, 6 6 9 ,7 6 9 $ 2, 0 6 2 , 74 8 $ 526,199 $ 14,160,839$ 89 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I NG S T A T E M EN T O F R E VE N U E , E X PE N D I T U R E S, A N D C H AN G E S I N F UN D B ALA NCE- NO N M AJ O R G O V E R NMENT A L F U N DS Ye a r E n d e d J u n e 3 0 , 20 0 4 Depa rtment a l Cit y Government Sp ec i al Plan n ing Gas T axStudy Revenu e s Board Insuranc e Pension Apporti o n m entCommission RE V ENU E S Taxes 33 6 , 9 48 $ 75 , 8 3 4 $ 1, 2 6 8 , 7 6 1 $ 54 6 , 5 2 2 $ - $ -$ Spec i a l a s s e s s m en ts - - - - - - Lice n ses a n d p e r m its - - - - - - Inte rgovernm enta l 18 8 , 6 01 75 , 6 4 9 77 , 1 3 4 17 8 , 7 5 5 507,874 - Ch ar g e s f or s e rv i c e s 5,52 8 13 , 1 7 1 - - - - Fi n e s a nd f orfeit u r es 34 , 2 59 - - - - - Inte rest o n i n v estment s 10 , 1 83 - 6, 8 8 5 5, 1 3 9 2,220 4 Lo an r e paymen t - - - - - - Othe r 47 7 , 2 56 - - - - - Tota l r evenu e s 1,0 5 2 , 7 75 16 4 , 6 5 4 1, 3 52 , 7 8 0 73 0 ,4 1 6 510,094 4 EX PEND I T URE S Cu rr e n t Gene ral g overnment 13 , 0 00 43 8 , 4 2 1 - - - - Pu b l i c s afety 24 1 , 6 32 - - - - - Publ i c s e rv ic e - - - - 196,244 - Pu b l i c w elf are 23 1 , 9 04 - - - - - Othe r 48 , 2 65 - - - - - Capi t a l o u t l a y 1,4 0 4 , 4 26 22 , 9 4 6 - - 299,466 - De b t s erv i c e Pr incipa l - - - - - - In te r e s t a nd f isc a l f ee s - - - - - - Tota l e xpend i t u r es 1,9 3 9 , 2 27 46 1 , 3 6 7 - - 495,710 - Revenu e s o v er ( und e r) e xpe nd i t u res (88 6 , 4 52 ) (29 6 , 7 1 3) 1, 3 52 , 7 8 0 73 0 ,4 1 6 14,384 4 OTHER F I N ANCIN G S O URC E S ( USE S ) Transfers i n 20 8 , 5 12 29 4 , 9 2 4 - 69 , 1 4 7 - - Tran sf er s o ut (3 ) - (1,3 52 , 7 8 0 ) (74 9 ,0 9 5 ) - (253) Sa le o f f ixed a ssets 73 3 , 6 07 - - - - - Tota l o the r f inanc in g s ou r ces a nd u s es 94 2 , 1 16 29 4 , 9 2 4 (1,3 52 , 7 8 0 ) (67 9 ,9 4 8 ) - (253) Net c hange i n f und b a la nc e 55 , 6 6 4 (1 , 7 8 9 ) - 50 , 4 6 8 14,384 (249) FU ND B ALANCES , b e ginn in g o f y ear 81 6 , 6 22 11 5 , 7 3 3 - 11 2 ,7 1 7 135,092 249 FU ND B ALANCES , e nd o f y ear 87 2 , 2 86 $ 11 3 , 9 4 4 $ - $ 16 3 ,1 8 5 $ 149,476 $ -$ Spec i al R e ve n ue F u nds 90 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I NG S T A T E M EN T O F R E VE N U E , E X PE N D I T U R E S, A N D C H AN G E S I N F UN D B ALA NCE- NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Sp ecial R evenu e F u n d s Be au ti- Street and Hi s t o r ic Dr u g ficati o n Tree Pres e r v a tion For f eiture s Fire T ruck of B o z e m an Maintenance RE V ENU E S Ta xe s - $ - $ - $ - $ -$ Spec i a l a s s e s s ments - - - - 13,402 Licenses a nd pe rmit s - - - - 13,278 Inte rgov ernm enta l 7,6 4 7 12 9 , 34 6 - - 889 Ch ar g es f or s erv i ce s - - - - 1,664,857 Fi n e s a nd forfeit u r es - 5, 37 5 - - - In te r e st o n i n v est m ent s - - - - 7,340 Lo an r e paymen t - - - - - Othe r 2,2 3 7 8, 69 6 - 3, 3 5 0 3,930 Tota l r evenu e s 9,8 8 4 14 3 , 41 7 - 3, 3 5 0 1,703,696 EX PEND I T URE S Cu rr e n t Gene ral g overnment 33 ,7 3 3 - - - - Pub l i c s a fety - 16 9 , 09 4 - - - Pub l i c s e rv ic e - - - - 1,129,062 Pub l i c w elf are - - - - 239,097 Ot her - - - 5, 8 4 2 - Ca pi t a l o u t l a y - - - - 105,798 De b t s erv i c e Pr incipal - - - - - In tere s t an d f isc al f ee s - - - - - Tota l e xpe nd i t u r e s 33, 7 3 3 16 9 , 09 4 - 5, 8 4 2 1,473,957 Revenu e s o v er ( un d e r) expe nd it u r es (23 ,8 4 9 ) (25 , 67 7 ) - (2 ,4 92 ) 229,739 OTHER F I NANCING S O URC E S ( U SE S) Transfers i n 25 ,0 3 5 - - - - Tran sf er s o ut - - - - - Sa le o f f ixed ass e ts - - - - 2,800 Tota l ot h e r f ina nc in g s ou r ces a nd u ses 25 ,0 3 5 - - - 2,800 Net c hange i n f und b a la nc es 1,18 6 (25 , 67 7 ) - (2 , 4 9 2 ) 232,539 FU ND B ALANCES, b e ginn i n g o f y ear 9,42 3 1, 30 8 - - 331,407 FU ND B ALANCES, e nd of y ear 10 ,6 0 9 $ (24 , 36 9 ) $ - $ (2 ,4 92 ) $ 563,946$ 91 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I NG S T A T E M EN T O F R E VE N U E , E X PE N D I T U R E S, A N D C H AN G E S I N F UN D B ALA NCE- NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Special R evenu e F u n d s Co nsolidat ed Law a n d Park in g Jus t i c e Spe cial Communi t y Buil d i n g Highway Di st ri cts Cen ter Pro je c t s Tra n sporta t ion Ins p ec t ionSafety RE V ENU E S Ta xe s - $ - $ - $ - $ - $ -$ Spec i a l a s s e s s ments - - - - - - Licenses a nd pe rmit s 16 ,6 0 2 - - - 80 8 , 9 06 - In te r g over n men ta l 49 - - - 38,859 - Ch ar g es f or s e rv i ce s - - - - 8,211 - Fi n e s a nd forfeit u r es 42,62 1 - - - - - Inte rest o n i n v estments 2,2 8 2 - 10 , 1 5 2 - 9,391 250 Loan r epa yment 11,87 8 - - - - - Ot h er - - - - - - Tota l r evenu e s 73,43 2 - 10 , 1 5 2 - 86 5 , 3 67 250 EX PEND I T URE S Cu rr e nt General g o ve r nment - - - - - - Pub l i c s afety 86 ,1 7 9 19 , 1 2 5 - - 79 1 , 1 19 - Pub l i c s erv ic e - - 19 0 13 , 0 2 8 - - Pub l i c w elf are - - - - - - Ot h er - - - - - - Ca pi t a l o u t l a y 16, 8 5 7 - - 3, 9 4 8 60,690 - De b t s erv i c e Pr incipal - - - - - - In tere s t an d f isc al f ee s - - - - - - Tota l e xpe nd i t u res 10 3 ,0 3 6 19 , 1 25 19 0 16,9 7 6 85 1 , 8 09 - Revenu es ov er ( un d e r) e xpe nd i tu r es (29 ,6 0 4 ) (19 , 1 25 ) 9, 9 6 2 (16,97 6 ) 13,558 250 OTHER F I N ANCIN G S O URC E S (U SE S ) Transfers i n 19 1 ,5 5 5 - - - - - Tran sfer s o ut - - - - - - Sa le o f f ixed a ss e ts - - - - - - Tota l ot h e r f inanc in g sou r ces a nd u s es 19 1 ,5 5 5 - - - - - Net c hange i n f und b a la nc e 16 1 ,9 5 1 (1 9 , 1 2 5 ) 9, 9 6 2 (16,97 6 ) 13,558 250 FU ND B ALANCES , b e ginnin g o f year 14 3 ,7 3 9 59 9 , 2 50 648 , 0 4 4 (2,4 5 3 ) 55 3 , 9 77 17,870 FU ND B ALANCES , e nd o f y ear 30 5 ,6 9 0 $ 58 0 , 1 25 $ 658 , 0 0 6 $ (19,42 9 ) $ 56 7 , 5 35 $ 18,120$ 92 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I NG S T A T E M EN T O F R E VE N U E , E X PE N D I T U R E S, A N D C H AN G E S I N F UN D B ALA NCE- NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Sp ecial R evenu e Fu n d s Downto w n Mun i c ipal Commun i ty Impr ovement Str eet Park Cou r t Hou s i n g Distr i c t Lig ht i n g Land Resti t u t i o n Totals RE V ENU E S Ta xe s - $ 30 1 , 9 6 0 $ - $ - $ - $ 2,530,025$ Spec i a l a s s e s s ments - 62 , 6 2 6 15 5 , 2 5 6 - - 231,284 Licenses a nd pe rmit s - - - - - 838,786 In te r g over n men ta l - 34 , 6 2 0 - - - 1,239,423 Ch ar g es f or s e rv i ce s - - - - - 1,691,767 Fi n e s a nd forfeit u r es - - - - - 82,255 Inte rest o n i n v estments 488 7, 2 9 9 2 95 8 3 62,596 Loan r epa yment 5,4 17 - - - - 17,295 Ot h er - - - - - 495,469 Tota l r evenu e s 5,9 05 40 6 , 5 0 5 155 , 2 5 8 95 8 3 7,188,900 EX PEND I T URE S Cu rr e n t Genera l g overn ment - - - - - 485,154 Pub l i c s a fety - - - - - 1,307,149 Pub l i c s e rv ic e - 17 4 , 7 8 8 15 1 , 2 6 2 - - 1,664,574 Pub l i c w elf are - - - - - 471,001 Ot her - - - - - 54,107 Ca pi t a l o u t l a y - 14 , 3 5 0 - 8, 0 0 0 - 1,936,481 De b t s erv i c e Pr incipa l - - - - - - In t e r e s t a nd f isc a l f ee s - - - - - - Tota l e xpe nd i t u r es - 18 9 , 1 3 8 151 , 2 6 2 8,00 0 - 5,918,466 Revenu e s o v er ( und e r) e xpe nd i t ures 5,9 05 21 7 , 3 6 7 3, 9 9 6 (7,0 4 2 ) 3 1,270,434 OT HER F INA NC I N G S OUR C E S ( U S ES) Tran sf er s i n - - - - - 789,173 Tran sf er s o ut - - - - - (2,102,131) Sa le o f f ixed a ss e ts - - - - - 736,407 Tota l o the r f inanc in g s ou r ces a nd u s es - - - - - (576,551) Net c hange i n f und b a la nce 5,9 05 21 7 , 3 6 7 3, 9 9 6 (7,0 4 2 ) 3 693,883 FU ND B ALANCES, b e ginnin g o f y ear 28 , 33 0 32 2 , 8 2 2 (138 , 9 8 5 ) 69 ,5 6 1 - 3,764,706 FU ND B ALANCES, e nd o f y ear 34 , 23 5 $ 54 0 , 1 8 9 $ (134 , 9 8 9 ) $ 62 ,5 1 9 $ 3 $ 4,458,589$ 93 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I NG S T A T E M EN T O F R E VE N U E , E X PE N D I T U R E S, A N D C H AN G E S I N F UN D B ALA NCE- NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Debt S e rvic e F u n d s SI D G.O . Revolv ing Bon d s Tot a ls RE V ENU E S Ta xe s - $ 47 5 , 1 8 3 $ 47 5 , 1 8 3 $ Spec i a l a s s e s s ments - - - Lice n ses a n d p e r m its - - - In te r g ov er n menta l - 4, 7 6 5 4, 7 6 5 Ch ar g es f or s e rv i ce s - - - Fi n e s a nd forfeit u r es - - - Inte rest o n i n v estments 29, 5 0 4 3, 4 0 3 32 , 9 0 7 Lo an r e paymen t - - - Ot h er - - - Tota l r evenu e s 29, 5 0 4 483 , 3 5 1 512 , 8 5 5 EX PEND I T URE S Cu rr e n t General g o ve r nment - - - Pub l i c s a fety - - - Pub l i c s e rv ic e - - - Pub l i c w elf are - - - Ot her - - - Ca pi t a l o u t l a y 56, 2 8 4 - 56 , 2 8 4 De b t s erv i c e Pr incipa l - 39 5 , 0 0 0 39 5 , 0 0 0 In te r e s t a nd f isc a l f ee s - 393 , 0 3 0 393 , 0 3 0 Tota l e xpe nd i t u r es 56, 2 8 4 788 , 0 3 0 844 , 3 1 4 Revenu e s o v er ( un d e r) e xpe nd i t ures (26 , 7 8 0 ) (304 , 6 7 9 ) (33 1 , 4 5 9 ) OTHER F I N ANCING S O URC E S ( U SE S ) Tran sf er s i n 10 ,750 - 10 , 7 5 0 Transfers o u t (28 , 1 5 5 ) - (2 8 , 1 5 5 ) Sa le o f f ixed a ss e ts - - - Tota l o the r f inanc in g sou r ces a nd u s es (17 , 4 0 5 ) - (17 , 4 0 5 ) Net c hange i n f und b a la nc e (44 , 1 8 5 ) (304 , 6 7 9 ) (34 8 , 8 6 4 ) FU ND B ALANCES, b e ginnin g o f y ear 1, 8 26 , 7 8 8 3, 5 89 , 8 9 5 5, 4 16 , 6 8 3 FU ND B ALANCES, e nd o f y ear 1, 7 82 , 6 0 3 $ 3, 2 85 , 2 1 6 $ 5, 0 67 , 8 1 9 $ 94 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I NG S T A T E M EN T O F R E VE N U E , E X PE N D I T U R E S, A N D C H AN G E S I N F UN D B ALA NCE- NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Capi t a l P r oj e cts F u n d Permanent F u n d To tal No nm aj o r Genera l C e m ete r y Governmental Impr ov ements Care Fu nd s RE V ENU E S Ta xe s - $ - $ 3, 0 0 5 , 2 08 $ Spec ia l a s s e ss m en ts - - 23 1 , 2 84 Lice n s e s a n d p erm its - - 83 8 , 7 86 Inte rgov ernm enta l 17 8 ,8 3 0 - 1, 4 2 3 , 0 18 Ch ar g e s f or se r v i ce s - 3, 5 5 8 1, 6 9 5 , 3 25 Fi n e s a nd f orfeit u r es - - 82 , 2 5 5 Inte rest o n i n vestment s 44,54 3 7, 3 0 8 14 7 , 3 54 Loan r e p aymen t - - 17 , 2 9 5 Othe r 15 1 ,4 4 1 - 64 6 , 9 10 Tota l r evenu e s 37 4 ,8 1 4 10 , 8 6 6 8, 0 8 7 , 4 35 EX PEND I T URE S Cu rr e nt General g o ve r n ment - - 48 5 , 1 54 Pub l i c s a fety - - 1, 3 0 7 , 1 49 Pub l i c S e rv ic e 7,4 0 6 - 1, 6 7 1 , 9 80 Pub l i c w elf are 6,7 0 7 - 47 7 , 7 08 Ot h er - - 54 , 1 0 7 Capi t al o u t l a y 2,1 8 0 ,0 0 1 - 4, 1 7 2 , 7 66 De b t s e r v i c e Pr incipal - - 39 5 , 0 00 In te r e s t a n d f isca l f ees - - 39 3 , 0 30 Tota l e xpe nd i t ures 2,1 9 4 ,1 1 4 - 8, 9 5 6 , 8 94 Revenu es o v er ( un d e r) e xpe ndit u r es (1, 8 1 9 ,3 0 0 ) 10 , 8 6 6 (86 9 , 4 59 ) OTHER F I NANCIN G S O URC E S ( U SE S) Transfers i n 20 0 ,0 0 0 - 99 9 , 9 23 Tran sfer s o ut - (7 , 3 0 8 ) (2,1 3 7 , 5 94 ) Sa le of f ixed a ss e ts - - 73 6 , 4 07 Tota l o the r f inanc in g sou r ces a nd u s es 20 0 ,0 0 0 (7 ,3 08 ) (40 1 , 2 64 ) Net c hange i n fun d b a la nc e (1, 6 1 9 ,3 0 0 ) 3, 5 5 8 (1,2 7 0 , 7 23 ) FU ND B ALANCES, b e ginn i n g o f y ear 3, 6 5 6 ,5 5 5 50 8 , 6 2 8 13,3 4 6 , 5 72 FU ND B ALANCES, e nd o f y ear 2, 0 3 7 ,2 5 5 $ 51 2 , 1 8 6 $ 12,0 7 5 , 8 49 $ BU D G E T T O A C T U A L S T A T E M E N T S – O T H E R M A J O R F U N D S 95 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N T O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL OT H E R M A JO R F U ND S – S I D S I N K I NG F U N D Ye a r E n d e d J u n e 3 0 , 20 0 4 Variance with Actual A mou nts Final Budget Or i g in al Fi n al Budgeta r y B asi s Positive (Negative) Bu dget ar y fund b a lance , J u ly 1 1,3 7 1 ,7 0 4 $ 1, 3 7 1 , 7 0 4 $ 1, 3 7 1, 7 0 4 $ -$ Re so ur ces ( i nf l ows): Ta xes - - - - Spec i al a s sessments 1,2 0 0 ,0 0 0 1, 2 0 0 , 0 0 0 93 2 , 7 7 1 (267,229) Lice n ses a n d pe r m it s - - - - In te r g ov er n men ta l - - - - Char g es f or s erv ic e s - - 5, 6 5 7 5,657 Fines a n d forf ei t u re s - - - - Sa l e o f A ss e t s - - - - In te r e st o n i n vestments - - 16 , 0 3 3 16,033 Transf ers f r om o the r fu n d s - - 28 , 1 5 5 28,155 Ot h er - - 4, 1 2 1 4,121 Amou nts a v ai labl e f or a pp r o p r iation 2,5 7 1 ,7 0 4 2, 5 7 1, 7 0 4 2, 3 5 8, 4 4 1 (213,263) Ch a r ge s t o appropriations ( out fl ows) : Curr e n t Ge ne ral g o ve rnment - - - - Pu bli c s a f ety - - - - Pu bli c s e r v ic e - - - - Pu bli c w elf ar e - - - - Ot h e r - - 7, 2 9 4 (7,294) Ca p it a l o utl a y - - - - Debt s erv ice 1,2 0 0 ,0 0 0 1, 2 0 0 , 0 0 0 1, 2 4 7 , 7 7 1 (47,771) Tran sfer s t o o t h er f unds - - 10,7 5 0 (10,750) To t al c h ar g es t o a p p r o p ri at ions 1, 2 0 0 ,0 0 0 1, 2 0 0, 0 0 0 1, 2 6 5, 8 1 5 (65,815) Bu dget ar y fund b a lance , J u ne 3 0 1, 3 7 1 ,7 0 4 $ 1, 3 7 1, 7 0 4 $ 1, 0 9 2, 6 2 6 $ (279,078)$ Budg et e d A mou nts 96 CI T Y O F B O ZE M A N , M O N T A NA NO T E T O B U D G E T T O AC T U A L S T AT E M E N T S - O T H E R M AJO R F UN D S Ju n e 3 0 , 2 004 NO TE A . EX P LANATIO N O F D I F F E R E N C ES B ETWEE N B UDGET ARY I N FL OW S A ND O U T FLOW S A ND G A AP R EVE N U E S AND EXPENDITURE SI D Si n kin g So u rce s /i n flow s o f r e s ource s Actu al am ounts ( budgeta r y b a s i s ) " avail a b l e f or a p propria t i o n" from t h e b udget a r y co m par i s on s chedu le 2,35 8 , 4 4 1 $ Di ff e renc es - b udget t o G AAP: The f und b a la n ce a t t h e b e ginning o f t h e y ea r i s a b u dg et a r y r e s ource b u t i s not a c u rr en t-year r e v enue f or financial r e p o r ting p u rp o s es . (1,37 1 , 7 0 4) Tran sfer s f rom o t h er f unds a r e i n flow s o f b u dg et a r y r e source s b u t a r e n ot re v enues for f inancial r e po r t ing p u rp o ses . (28 , 1 5 5) Tota l r e venues a s r e p o r t e d o n t h e s tat e m en t o f r e v enues, e x pe n dit u re s , a n d ch an ges i n f und b a lance s - O ther n onmajor g overn mental f unds 95 8 , 5 8 2 $ Us e s / o ut f l o w s o f reso ur ce s Actu al am ou nts ( b u dgeta r y b a s is) " tot a l c h ar g es t o a p p r o p r i a t i o n s" f rom t h e bu dg et ar y c ompar i son s chedu le 1,26 5 , 8 1 5 $ Di ff e renc es - b udget t o G AAP: Tran sfer s t o o t h er f unds a re o u tf lows o f b u dg et ar y r e s ource s bu t a r e n ot ex penditure s f or financial r e p o rt ing p u rp o s es . (10 , 7 5 0) Tota l e x pe n dit ures a s r e p o r t e d o n t h e s tat e men t o f r e v enues , e x pe n dit u re s , a n d ch an ges i n f und b a lance s - O ther n onmajor g overn mental f unds 1,2 5 5 , 0 6 5 $ BU D G E T T O A C T U A L S T A T E M E N T S – N O N M A J O R F U N D S 97 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS Ye a r E n d e d J u n e 3 0 , 20 0 4 Sp e c i a l R evenue F u nds Va r i a n ce Variance Posit i v e Positive Budg et Actu al (N e g at i v e) Budg et Actual(Negative) RE V ENU E S Taxes 34 6 , 9 1 3 $ 33 6 , 9 4 8 (9 , 9 6 5 ) 99 , 1 1 8 $ 75,834 (23,284) Sp e c i al a s sessments - - - - - - Lice n ses a n d p e r m it s - - - - - - In terg ov er n men tal 24 0 , 9 0 1 18 8 , 6 0 1 (5 2 , 3 0 0 ) 55 , 0 0 0 75,649 20,649 Char g es f or s erv ic e s 4, 5 0 0 5, 5 2 8 1, 0 2 8 12 , 0 0 0 13,171 1,171 Fines a n d forfei ture s 22 , 0 0 0 34 , 2 5 9 12 , 2 5 9 - - - In tere st o n i nvestments 3,4 6 0 10 , 1 8 3 6, 7 2 3 - - - Loan r e p a y men t - - - - - - Other 83 1 , 0 0 7 47 7 , 2 5 6 (35 3 , 7 5 1) 50 0 - (500) Total r e v enues 1,44 8 , 7 8 1 1,05 2 , 7 7 5 (39 6 , 0 0 6) 16 6 , 6 1 8 164,654 (1,964) EX PEND I T URE S - B UDG E T UNIT 1,6 4 3 , 9 6 5 1,93 9 , 2 2 7 (29 5 , 2 6 2) 50 8 , 7 7 6 461,367 47,409 Revenues o v er ( u nder ) e x penditures (19 5 , 1 8 4) (88 6 , 4 5 2) (69 1 , 2 6 8) (3 4 2 , 1 5 8) (296,713) 45,445 OT HE R F INA NC IN G S OU R C ES Tran sfer s i n 20 8 , 5 1 2 20 8 , 5 1 2 - 27 1 , 5 9 2 294,924 23,332 Tran sfer s o u t - (3 ) (3 ) - - - Sa l e o f f ixed a s s e t s - 73 3 , 6 0 7 73 3 , 6 0 7 - - - Total ot her f inancing s ources 20 8 , 5 1 2 94 2 , 1 1 6 73 3 , 6 0 4 27 1 , 5 9 2 294,924 23,332 Revenues an d o t her s ource s o v er (u nder) e x pe nditure s 13 , 3 2 8 $ 55 , 6 6 4 42 , 3 3 6 $ (7 0 , 5 6 6) $ (1,789) 68,777$ FUND B ALANC ES , b egi nning o f yea r 81 6 , 6 2 2 115,733 FU ND B A LANCES, e nd o f y ear 87 2 , 2 8 6 $ 113,944 $ Depa r t m ental S pec i a l Revenues City P lan ning Board 98 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Sp ecial R e venu e F u nd s Vari a n ce Variance Po si t i v e Positive Budg et Actu al (N eg at i v e) Budg et Actual(Negative) RE V ENU E S Taxes 1,2 7 7 , 6 2 9 $ 1, 2 6 8 ,7 6 1 (8 , 86 8 ) 53 9 , 20 1 $ 546,522 7,321 Sp ecial a ss e ss ment s - - - - - - Lice n ses a n d pe r m it s - - - - - - In terg over n men tal 82, 8 2 0 77 , 1 3 4 (5 , 68 6 ) 22 2 , 42 5 178,755 (43,670) Char g es f or s erv ic e s - - - - - - Fines a nd f orf ei ture s - - - - - - In tere s t o n i nvestments - 6, 8 8 5 6, 88 5 - 5,139 5,139 Lo an r epaymen t - - - - - - Ot h er - - - - - - Tota l r evenues 1,3 60 ,4 49 1, 3 5 2 ,7 8 0 (7 , 66 9 ) 76 1 , 62 6 730,416 (31,210) EX P E N D I TURES - B U D GET UN I T - - - - - - Revenues o v er ( under ) e xpe n ditures 1, 3 6 0, 4 4 9 1, 3 5 2 ,7 8 0 (7 , 66 9 ) 76 1 , 62 6 730,416 (31,210) OT HER F I N A NC IN G S O UR C E S Tran sfer s i n - - - - 69,147 69,147 Tran sfer s o u t (1, 3 1 9, 4 8 5 ) (1 , 3 5 2 ,7 8 0 ) (3 3 , 29 5 ) (7 4 4 , 33 8 ) (749,095) (4,757) Sa l e o f f ixed a s s e t s - - - - - - Total o t her f inancing s ource s (1 , 3 1 9,4 8 5 ) (1 , 3 5 2 ,7 8 0 ) (3 3 , 29 5 ) (7 4 4 , 33 8 ) (679,948) 64,390 Re venu e s a n d o the r s o ur ce s o ver (u nder ) e x pe n diture s 40, 9 6 4 $ - (4 0 , 96 4 ) $ 17 ,2 8 8 $ 50,468 33,180$ FU ND B ALANCES , b e ginn in g o f y ear - 112,717 FU ND B ALANCES , e nd o f y ear - $ 163,185 $ I n sura n ce Pension 99 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Spec i a l R evenue F u nds Va r i a n ce Variance Posit i v e Positive Budg et Actu al (N e g at i v e) Budg et Actual(Negative) RE V ENU E S Ta xes - $ - - - $ - - Sp e c i al a s sessments - - - - - - Lice n ses a n d p e r m it s - - - - - - In terg ov er n men tal 49 0 , 0 0 0 50 7 , 8 7 4 17 , 8 7 4 - - - Char g es f or s erv ic e s - - - - - - Fi n es a n d forf ei t u re s - - - - - - In tere st o n i nvestments 5,0 0 0 2, 2 2 0 (2 , 7 8 0 ) - 4 4 Loan r e p a y men t - - - - - - Ot h er - - - - - - To t al r e v enues 49 5 , 0 0 0 51 0 , 0 9 4 15 , 0 9 4 - 4 4 EX PEND I T URE S - B UDG E T UNIT 52 2 , 0 0 0 49 5 , 7 1 0 26 , 2 9 0 - - - Revenues o v er (u nder ) e x pe n diture s (27 , 0 0 0) 14 , 3 8 4 41 , 3 8 4 - 4 4 OT HE R F INA NC IN G S OU R C ES Tran sfer s i n - - - - - - Tran sfer s o u t - - - - (253) (253) Sa l e o f f ixed a s s e t s - - - - - - Total o ther f i na n c ing s o ur ces - - - - (253) (253) Revenues an d o t her s ource s o v er (u nder) e x pe nditure s (27 , 0 0 0) $ 14 , 3 8 4 41 , 3 8 4 $ - $ (249) (249)$ FUND B ALANC ES , b egi nning o f yea r 13 5 , 0 9 2 249 FU ND B A LANCES, e nd o f y ear 14 9 , 4 7 6 $ - $ Gas Tax A pportionm ent Governm ent Study Commission 100 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Sp ec ial R e v e nu e Fu n d s Va r i a n ce Posit i v e Budg et Actu al (N e g at i v e) RE V ENU E S Ta xes - $ - - Sp e c i al a s sessments - - - Lice n ses a n d p e r m it s - - - In terg ov er n men tal 5,5 0 0 7, 6 4 7 2, 1 4 7 Char g es f or s erv ices - - - Fi n es a n d forf ei t u re s - - - In tere st o n i nvestments - - - Loan r e p a y men t - - - Ot h er - 2, 2 3 7 2, 2 3 7 Tota l r evenues 5,500 9, 8 8 4 4, 3 8 4 EX PEND I T URE S - B UDG E T UNIT 46 , 9 5 8 33 , 7 3 3 13 , 2 2 5 Revenues o v er (u nder ) e x pe n diture s (41 , 4 5 8) (2 3 , 8 4 9) 17 , 6 0 9 OT HE R F INA NC IN G S OU R C ES Tran sfer s i n 21 , 3 5 6 25 , 0 3 5 3, 6 7 9 Tran sfer s o u t - - - Sa l e o f f ixed a s s e t s - - - Total o ther f i na n c ing s o ur ces 21,356 25 , 0 3 5 3, 6 7 9 Revenues an d o t her s ource s o v er (u nder) e x pe nditure s (20 , 1 0 2) $ 1, 1 8 6 21 , 2 8 8 $ FUND B ALANC ES , b egi nning o f y ea r 9, 4 2 3 FU ND B A LANCES, e nd o f y ear 10 , 6 0 9 $ Hi st o ric P r e s e r vati o n 101 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Sp ecial R e venu e F u nd s Vari a n ce Variance Po si t i v e Positive Budg et Actu al (N eg at i v e) Budg et Actual(Negative) RE V ENU E S Ta xes - $ - - - $ - - Sp ecial a ss e ss ment s - - - - - - Lice n ses a n d pe r m it s - - - - - - In terg over n men tal 70, 0 0 0 12 9 , 3 4 6 59 , 3 4 6 - - - Char g es f or s erv ic e s - - - - - - Fines a nd f orf ei ture s 40, 0 0 0 5, 3 7 5 (3 4 , 62 5 ) - - - In tere s t o n i nvestments - - - - - - Lo an r epaymen t - - - - - - Other 1,0 0 0 8,69 6 7, 69 6 - - - Tota l r evenues 111 ,0 00 14 3 ,4 1 7 32 ,4 1 7 - - - EX P E N D I TURES - B U D GET UN I T 130 ,7 23 16 9 ,0 9 4 (3 8 , 37 1 ) - - - Revenues o v er ( under ) e xpe n ditures (1 9, 7 2 3 ) (2 5 ,67 7 ) (5 , 95 4 ) - - - OT HER F I N A NC IN G S O UR C E S Tran sfer s i n - - - - - - Tran sfer s o u t - - - - - - Sa l e o f f ixed a s s e t s - - - - - - Total o ther f i na ncing s o ur ces - - - - - - Re venu e s a n d o the r s o ur ce s o ver (u nder ) e x pe n diture s (19,7 2 3 ) $ (2 5 ,67 7 ) (5 , 95 4 ) $ - $ - -$ FU ND B ALANCES , b e ginn in g o f y ear 1,30 8 - FU ND B ALANCES , e nd o f y ear (2 4 ,36 9 ) $ - $ Dr ug F o rf ei t u res Fire Truck 102 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Sp ecial R e venu e F u nd s Vari a n ce Variance Po si t i v e Positive Budg et Actu al (N eg at i v e) Budg et Actual(Negative) RE V ENU E S Ta xes - $ - - - $ - - Sp ecial a ss e ss ment s - - - 50 0 13,402 12,902 Lice n ses a n d pe r m it s - - - - 13,278 13,278 In terg ov er n men tal - - - - 889 889 Char g es f or s erv ic e s - - - 1, 4 3 8 , 5 0 0 1,664,857 226,357 Fines a nd f orf ei ture s - - - - - - In tere s t o n i nvestments - - - 7, 0 0 0 7,340 340 Lo an r epaymen t - - - - - - Ot h er - 3,35 0 3, 35 0 4,00 0 3,930 (70) Tota l r evenues - 3,35 0 3, 35 0 1, 4 5 0 ,0 0 0 1,703,696 253,696 EX P E N D I TURES - B U D GET UN I T - 5,84 2 (5 , 84 2 ) 1, 7 0 1 ,1 9 1 1,473,957 227,234 Re ve nu e s o ver ( u n d er) e x p end it ur es - (2 ,4 9 2 ) (2 , 49 2 ) (2 5 1 , 19 1 ) 229,739 480,930 OT HER F I N A NC IN G S O UR C E S Tran sfer s i n - - - - - - Tran sfer s o u t - - - - - - Sa l e o f f ixed a s s e t s - - - - 2,800 2,800 Total o ther f i na ncing s o ur ces - - - - 2,800 2,800 Re venu e s a n d o the r s o ur ce s o ver (u nder ) e x pe n diture s - $ (2 ,4 9 2 ) (2 , 49 2 ) $ (2 5 1 , 19 1 ) $ 232,539 483,730$ FU ND B ALANCES , b e ginn in g o f y ear - 331,407 FU ND B ALANCES , e nd o f y ear (2 ,4 9 2 ) $ 563,946 $ Be a u ti f ic at i o n o f B oze m an St r e e t a n d T ree Maintenance 103 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Sp e c i a l R evenue F u nds Va r i a n ce Variance Posit i v e Positive Bu dg et Actu al (N e gat i v e) Bu dg et Actual(Negative) RE V ENU E S Ta xes - $ - - - $ - - Sp e c i al a s sessmen ts - - - - - - Lice n ses a n d p e r m its 17 , 6 0 0 16 , 6 0 2 (9 9 8 ) - - - In terg ov er n men tal - 49 49 - - - Ch a rges f o r se rvic es - - - - - - Fines a n d f orf ei ture s 67 , 5 00 42 , 6 2 1 (2 4 , 8 7 9 ) - - - In tere st o n i nvestments 1,5 0 0 2, 2 8 2 78 2 - - - Loan r e p a y men t 6,0 0 0 11 , 8 7 8 5, 8 7 8 - - - Ot h er 2,1 0 0 - (2 , 1 0 0 ) - - - Total r eve nu e s 94,700 73 , 4 3 2 (2 1 , 2 6 8) - - - EX PEND I TURES - B U D GET UN I T 95,98 1 10 3 , 0 3 6 (7 , 0 5 5 ) 20 , 0 00 19,125 875 Revenues o v er ( u nder ) e x pe n diture s (1, 2 81 ) (2 9 , 6 0 4) (2 8 , 3 2 3) (2 0 , 0 00 ) (19,125) 875 OT HE R F INA NC IN G S OU R C ES Tran sfer s i n - 19 1 , 5 5 5 19 1 , 5 5 5 - - - Tran sfer s o u t - - - - - - Sa l e o f f ixed a s s e t s - - - - - - Total o the r f i nanc ing so ur ces - 19 1 , 5 5 5 19 1 , 5 5 5 - - - Revenues an d o t her s ource s o v er (u nder) e x pe nditure s (1, 2 81 ) $ 16 1 , 9 5 1 16 3 , 2 3 2 $ (2 0 , 0 00 ) $ (19,125) 875$ FUND B ALANC ES , b egi nning o f yea r 14 3 , 7 3 9 599,250 FU ND B A LANCES, e nd o f y ear 30 5 , 6 9 0 $ 580,125 $ Consol i d a t e d Park in g D i s tri ct s Law a n d Justice Center 104 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Spec i a l R evenue F u nds Va r i a n ce Variance Posit i v e Positive Budg et Actu al (N e g at i v e) Budg et Actual(Negative) RE V ENU E S Ta xes - $ - - - $ - - Sp e c i al a s sessments - - - - - - Lice n ses a n d p e r m it s - - - - - - In terg ov er n men tal - - - 62 9 , 0 7 6 - (629,076) Char g es f or s erv ic e s - - - - - - Fi n es a n d forf ei t u re s - - - - - - In tere st o n i nvestments 8,0 0 0 10 , 1 5 2 2, 1 5 2 - - - Loan r e p a y men t - - - - - - Ot h er - - - - - - Total r eve nu e s 8,000 10 , 1 5 2 2, 1 5 2 62 9 , 0 7 6 - (629,076) EX PEND I TURES - B U D GET UNIT 65 0 , 9 4 0 19 0 65 0 , 7 5 0 62 9 , 0 7 6 16,976 612,100 Revenues o v er (u nder ) e x pe n diture s (64 2 , 9 4 0) 9, 9 6 2 65 2 , 9 0 2 - (16,976) (16,976) OT HE R F INA NC IN G S OU R C ES Tran sfer s i n - - - - - - Tran sfer s o u t - - - - - - Sa l e o f f ixed a s s e t s - - - - - - Total o the r f i na n c ing s o ur ces - - - - - - Revenues a nd o t her s ource s o v er (u nder) e x pe nditure s (64 2 , 9 4 0) $ 9, 9 6 2 65 2 , 9 0 2 $ - $ (16,976) (16,976)$ FUND B ALANC ES, b egi nning o f yea r 64 8 , 0 4 4 (2,453) FU ND B A LANCES , e nd o f y ear 65 8 , 0 0 6 $ (19,429) $ Sp ec i a l P rojec t s Co mmunity Transportation 105 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Spec i a l R evenue F u nds Va r i a n ce Variance Posit i v e Positive Budg et Actu al (N e g at i v e) Budg et Actual(Negative) RE V ENU E S Ta xes - $ - - - $ - - Sp e c i al a s sessments - - - - - - Lice n ses a n d p e r m its 68 2 , 0 0 0 80 8 , 9 0 6 12 6 , 9 0 6 - - - In terg ov er n men tal - 38 , 8 5 9 38 , 8 5 9 - - - Char g es f or s erv ic e s 34 , 0 0 0 8, 2 1 1 (2 5 , 7 8 9 ) - - - Fi n es a n d forf ei t u re s - - - - - - In tere st o n i nvestments 7,0 0 0 9, 3 9 1 2, 3 9 1 60 5 250 (355) Loan r e p a y men t - - - - - - Ot h er - - - - - - To t al r e venues 72 3 , 0 0 0 86 5 , 3 6 7 14 2 , 3 6 7 60 5 250 (355) EX PEND I TURES - B U D GET UNIT 68 5 , 8 5 9 85 1 , 8 0 9 (16 5 , 9 5 0) 18 , 1 0 0 - 18,100 Revenues o v er (u nder ) e x pe n diture s 37 , 1 4 1 13 , 5 5 8 (2 3 , 5 8 3) (1 7 , 4 9 5) 250 17,745 OT HE R F INA NC IN G S OU R C ES Tran sfer s i n - - - - - - Tran sfer s o u t - - - - - - Sa l e o f f ixed a s s e t s - - - - - - Total o the r f i na n c ing s o ur ces - - - - - - Revenues a nd o t her s ource s o v er (u nder) e x pe nditure s 37 , 1 4 1 $ 13 , 5 5 8 (2 3 , 5 8 3 ) $ (1 7 , 4 9 5) $ 250 17,745$ FUND B ALANC ES, b egi nning o f yea r 55 3 , 9 7 7 17,870 FU ND B A LANCES , e nd o f y ear 56 7 , 5 3 5 $ 18,120 $ Bu il d in g I nsp ec t i o n Hig hway Safety 106 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Sp e c i a l R evenue F u nds Va r i a n ce Variance Posi t i ve Positive Budg et Actu al (N e g at iv e) Budg et Actual(Negative) RE V E N U ES Ta xes - $ - - 28 2 , 5 0 0 $ 301,960 19,460 Sp ecia l a ss e s s m ents - - - 55 , 0 0 0 62,626 7,626 Lice n ses a n d p e r m it s - - - - - - In terg ov er n men tal - - - 17 , 5 0 0 34,620 17,120 Ch a rge s f o r s e rvic e s - - - - - - Fi n es a n d f orf ei t u re s - - - - - - Interest o n i n v e st ment s 1,000 48 8 (5 1 2 ) - 7,299 7,299 Loan r e p a y men t 4,0 0 0 5, 4 1 7 1, 4 1 7 - - - Ot h er - - - - - - Total r eve nu e s 5,000 5, 9 0 5 90 5 35 5 , 0 0 0 406,505 51,505 EX PEND IT UR E S - B UDG E T UN I T - - - 75 8 , 6 0 5 189,138 569,467 Re ve nu es o ver ( un d er ) e xpend iture s 5,000 5, 9 0 5 90 5 (40 3 , 6 0 5) 217,367 620,972 OT HE R F INA NCIN G SO U R CE S Tran sfer s i n - - - - - - Tran sfer s o u t - - - - - - Sa l e of f ixed a s s e t s - - - - - - Tota l o t h er f inancin g s o urce s - - - - - - Revenues an d o t h er s ource s o v er (un d er ) e xpend iture s 5,000 $ 5, 9 0 5 90 5 $ (40 3 , 6 0 5) $ 217,367 620,972$ FU ND B ALANCES, b e ginn i n g o f y ear 28,3 3 0 322,822 FU ND B ALANCES, e nd of y ear 34,2 3 5 $ 540,189 $ Co mmun i ty Hous i ng Downt own I mprovement District 107 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Spec i a l R evenue F u nds Va r i a n ce Variance Posit i v e Positive Budg et Actu al (N e g at i v e) Budg et Actual(Negative) RE V ENU E S Ta xes - $ - - - $ - - Spec i al a s sessments 15 0 , 0 0 0 15 5 , 2 5 6 5, 2 5 6 - - - Lice n ses a n d p e r m it s - - - - - - In terg ov er n men tal - - - - - - Char g es f or s erv ic e s - - - - - - Fi n es a n d forf ei t u re s - - - - - - In tere st o n i nvestments - 2 2 1, 0 0 0 958 (42) Loan r e p a y men t - - - - - - Ot h er - - - - - - To t al r e venues 15 0 , 0 0 0 15 5 , 2 5 8 5, 2 5 8 1, 0 0 0 958 (42) EX PEND I TURES - B U D GET UNIT 15 0 , 0 0 0 15 1 , 2 6 2 (1 , 2 6 2 ) - 8,000 (8,000) Re ve nu e s o ver (un d er) e xpenditures - 3, 9 9 6 3, 9 9 6 1, 0 0 0 (7,042) (8,042) OT HE R F INA NC IN G S OU R C ES Tran sfer s i n - - - - - - Tran sfer s o u t - - - - - - Sa l e o f f ixed a s s e t s - - - - - - Total o the r f i na n c ing s o ur ces - - - - - - Revenues a nd o t her s ource s o v er (u nder) e x pe nditure s - $ 3, 9 9 6 3, 9 9 6 $ 1, 0 0 0 $ (7,042) (8,042)$ FUND B ALANC ES, b egi nning o f yea r (13 8 , 9 8 5) 69,561 FU ND B A LANCES , e nd o f y ear (13 4 , 9 8 9) $ 62,519 $ Park Land St r e e t L ighti n g 108 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Sp e c i a l R evenue F u nds Va r i a n ce Variance Posit i v e Positive Bu dg et Actu al (N e g at i v e) Budg et Actual(Negative) RE V ENU E S Ta xes - $ - - 2,54 5 , 3 6 1 $ 2,530,025 (15,336) Sp e c i al a s sessments - - - 20 5 , 5 0 0 231,284 25,784 Lice n ses a n d p e r m it s - - - 69 9 , 6 0 0 838,786 139,186 In terg ov er n men tal - - - 1,81 3 , 2 2 2 1,239,423 (573,799) Char g es f or s erv ic e s - - - 1,48 9 , 0 0 0 1,691,767 202,767 Fi n es a n d forf ei t u re s - - - 12 9 , 5 0 0 82,255 (47,245) In tere st o n i nvestments - 3 3 34 , 5 6 5 62,596 28,031 Loan r e p a y men t - - - 10 , 0 0 0 17,295 7,295 Ot h er - - - 83 8 , 6 0 7 495,469 (343,138) Total r eve nu e s - 3 3 7,76 5 , 3 5 5 7,188,900 (576,455) EX PEND I TURES - B U D GET UN I T - - - 7,56 2 , 1 7 4 5,918,466 1,643,708 Re ve nu e s o ver (un d er) e xpenditures - 3 3 20 3 , 1 8 1 1,270,434 1,067,253 OT HE R F INA NC IN G S OU R C ES Tran sfer s i n - - - 50 1 , 4 6 0 789,173 287,713 Tran sfer s o u t - - - (2 ,0 6 3 , 8 2 3) (2,102,131) (38,308) Sa l e o f f ixed a s s e t s - - - - 736,407 736,407 Total o the r f i na n c ing s o ur ces - - - (1 ,5 6 2 , 3 6 3) (576,551) 985,812 Revenues a nd o t her s ource s o v er (u nder) e x pe nditure s - $ 3 3 $ (1 ,3 5 9 , 1 8 2) $ 693,883 2,053,065$ FUND B ALANC ES, b egi nning o f yea r - 3,764,706 FU ND B A LANCES , e nd o f y ear 3 $ 4,458,589 $ Mu nici p al C o u rt R e s t i t u ti o n Total 109 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 De b t S e r vic e F u n ds Va ri a n ce Variance Posi t i v e Positive Bu dg et Actu al (N e gat i v e) Bu dg et Actu al(Negative) RE V ENU E S Ta xes - $ - $ - $ 45 9 , 81 1 $ 47 5 , 1 83 $ 15,372$ In terg ov er n men tal - - - - 4,765 4,765 In tere st o n i nvestments 15 , 00 0 29 , 5 04 14 , 5 04 - 3,403 3,403 To t al r e v enue 15 , 00 0 29 , 5 04 14 , 5 04 45 9 , 81 1 48 3 , 3 51 23,540 EX PEND I T URE S Ca p it a l O u tl a y - 56 , 2 8 4 (5 6 , 2 8 4 ) - - - De b t s e r v ic e Pr i n ci p a l - - - 15 5 , 00 0 39 5 , 0 00 (240,000) In te r e s t an d f iscal f ee s - - - 25 5 , 33 6 39 3 , 0 30 (137,694) Tota l e x pendit u res - 56 , 2 84 (5 6 , 2 84 ) 41 0 , 33 6 78 8 , 0 30 (377,694) Re ve nu e s o ver (un d er) ex pe nditure s 15 , 00 0 (2 6 , 7 80 ) (4 1 , 7 80 ) 49 , 47 5 (3 0 4 , 6 79) (354,154) OT HE R F INA NC IN G S OU R C ES (USE S ) Op er at i n g t r an sf er s in - 10 , 7 5 0 10 , 7 5 0 - - - Op er at i n g t r an sf er s out - (2 8 , 1 55 ) (2 8 , 1 55 ) - - - Tota l o ther f inancin g so ur c es ( uses) - (1 7 , 4 05 ) (1 7 , 4 05 ) - - - Revenues a nd o t her s ource s o v er (u nder) e x pe nditure s 15 , 00 0 $ (4 4 , 1 85 ) (5 9 , 1 8 5 ) $ 49 , 47 5 $ (3 0 4 , 6 79) (354,154)$ FUND B ALANC ES, b egi nning o f yea r 1, 8 2 6 , 7 88 3, 5 8 9 , 8 95 FU ND B A LANCES , e nd o f y ear 1, 7 8 2 , 6 03 $ 3, 2 8 5 , 2 16 $ G. O . B onds SI D R e v olv in g 110 CI T Y O F B O ZE M A N , M O N T A NA ST A T E M E N TS O F R E V E NU E S , E X P END I T U R E S , A N D C H ANG E S I N F U ND B A L ANCES - B U D GET T O A C T UAL NO N M AJ O R G O V E R NMENT A L F U N DS ( C O N T I NU E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Ca p i t a l P rojec t s Fu nd Va ri a n ce Posi t i v e Budg et Actu al (N e gat i v e) REVE N U ES In te r g ov er n men ta l - $ 17 8 , 8 3 0 $ 17 8 , 8 30 $ Interest o n i n v e st ment s - 44 , 5 4 3 44 , 5 4 3 Ot h er - 15 1 , 4 4 1 15 1 , 4 41 Total r e ve nu e - 37 4 , 8 1 4 37 4 , 8 14 EX PEND IT UR ES Curr e nt - B u dg et U nit - 14 , 1 1 3 (1 4 , 1 1 3 ) Capi tal O utlay 2, 2 00 , 0 0 0 2, 18 0 , 0 0 1 19 , 9 99 To t al e xpe n ditures 2, 2 00 , 0 0 0 2, 19 4 , 1 1 4 5,88 6 Re ve nu es o ver ( un d er) ex pe n diture s (2, 2 00 , 0 0 0 ) (1 , 81 9 , 3 0 0) 38 0 , 7 00 OT HE R F INA NCIN G SO U R CES (USE S ) Op e r a ti n g t r a n sfer s i n - 20 0 , 0 0 0 20 0 , 0 00 Op e r a ti n g t r a n sfer s o u t - - - Tota l o t h er f inancin g so urces ( u s e s) - 20 0 , 0 0 0 20 0 , 0 00 Revenues a n d o t her s ource s o v er (u nder) e x pe nditures (2, 2 00 , 0 0 0 ) $ (1 , 61 9 , 3 0 0) 58 0 , 7 00 $ FU ND B ALANCES, b e ginn i n g of y ear 3, 65 6 , 5 5 5 FUND B A LANC E S , e n d o f y ea r 2, 03 7 , 2 5 5 $ Ge n era l I m pr o v em en ts IN T E R N A L S E R V I C E F U N D S S T A T E M E N T S IN T E R N A L S E R V I C E F U N D S In t e r n a l S e r v i c e F u n d s a r e u s e d t o a c c o u n t f o r t h e g o o d s o r s e r v i ce s p r o v i d e d b y o n e d e p a r t m e n t t o o t h e r d e p a r t m e n t s o f t h e C i t y o n a c o s t - r e i m b u r s e m e n t ba s i s . Ve h i c l e M a i n t e n a n c e S h o p – A c c o u n t s f o r t h e m a i n t e n a n c e a n d r e p a i r o f v e hi c l e s u s e d i n t h e o p e r a t i o n o f C i t y s e r v i c e s . Me d i c a l H e a l t h I n s u r a n c e – A c c o u n t s f o r i n s u r a n c e p r e m i u m r e v e n u e s r e c e i v e d f r o m t h e v a r i ou s C i t y d e p a r t m e n t s a n d r e t i r e e s , a n d t h e r e l a t e d c o s t s o f h e alth an d d e n t a l c l a i m s i n c u r r e d b y c i t y e m p l o y e e s a n d r e t i r e e s w h i c h a r e i n - t u r n p a i d t o t h e C i t y ’ s i n s u r a n c e p r o g r a m c o o r d i n a t o r . 111 CI T Y O F B O ZE M A N , M O N T A NA CO M B I N I N G S T A T E M EN T O F N E T A S S E T S IN T E R N A L S E R V I C E FUN D S Ju n e 3 0 , 2 004 Ve h icl e Med i c a l Ma i n te n ance Hea l t h Shop In sura n ce Total AS SE TS Curr e nt a s sets Cash a n d e q u ivale n ts 73, 7 5 0 $ 75 , 3 1 4 $ 149,064 $ Custom er r e c e i vabl e s , n et - 12 , 9 33 12,933 Total c u rr e nt a s sets 73 ,7 5 0 88 , 2 47 161,997 Ma c h iner y a nd e q u ipm en t 10 9 ,5 6 4 - 109,564 Vehicles 37 ,9 9 7 - 37,997 Less: ac c u mula t e d d e p r e c ia t i o n (83 , 2 6 7 ) - (83,267) Net m achin er y an d e q u ipm en t 64, 2 9 4 - 64,294 Total a s sets 13 8 ,0 4 4 88 , 2 47 226,291 LIABIL IT IE S Cu rrent l i a b ili t i e s Acc o u nts p a y able 14,30 1 21 3 , 6 30 227,931 Acc r u ed e m pl oyee b e n efits 5, 45 3 9, 6 26 15,079 Total c u rrent l i a b i l i t i e s 19, 7 54 22 3 , 2 56 243,010 NET A SSETS Invest ed i n c a p it a l a s s e t s , n et o f r e lated d ebt 64 ,2 9 4 - 64,294 Unre s tri ct ed 53 ,9 9 6 (1 3 5 , 0 09 ) (81,013) Total n et a s s e t s 118,2 90 (1 3 5 , 0 09 ) (16,719) Total l i a b ili t i e s a n d n et a s s e t s 138,0 44 $ 88 , 2 47 $ 226,291 $ 112 CI T Y O F B O ZE M A N , M O N T A NA IN T E R N A L S E R V I C E FUN D S CO M B I N I N G S T A T E M EN T O F R E VE N U E S , E XPE N S E S A N D C H A N G E S I N F U N D N E T A S S E T S Fo r t h e Y e a r E n d e d J u n e 3 0, 2 0 04 Ve h icl e Medic a l Ma i n tenance Hea l t h Shop In sura n ce Tot al OP ER A TIN G R E V E N U ES Char g es f or s erv ices 49 7 , 9 7 9 $ 2,31 9 , 5 1 6 $ 2,81 7 , 4 95 $ OP ER A TIN G E X PENS ES Salari es a n d be n efits 10 1 , 5 7 0 - 10 1 , 5 70 Ma t erial s a n d s upp l ies 28 1 , 3 4 1 - 28 1 , 3 41 Repa i rs a n d maintenance 5,5 0 7 - 5,507 Ut i l i t i es 1,068 - 1,068 Admini st rative c harge s 23,603 14 1 , 0 2 8 16 4 , 6 31 In sura nce c l a ims - 1,55 0 , 9 8 5 1,55 0 , 9 85 Other e x pe n ses 6, 3 5 4 34 1 , 5 8 0 34 7 , 9 34 Depr e ciation 19 , 3 2 0 - 19 , 3 20 To t al o p er a t ing e x pe n ses 43 8 , 7 6 3 2,03 3 , 5 9 3 2,47 2 , 3 56 Oper a t ing i nco m e ( l os s) 59 , 2 1 6 28 5 , 9 2 3 34 5 , 1 39 NO N- OP ER A TIN G R EVE N U ES ( E X PEN S ES) In tere st i nco m e 1, 0 3 4 - 1,034 In tere st e x pe nse - (7 6 6 ) (766) Ot h er i n co me 86 - 86 Total n o n- o pera ting r eve nu e (exp ense s) 1,120 (7 6 6 ) 354 Chan ge in n et a s s e t s 60,336 28 5 , 1 5 7 34 5 , 4 93 NET A SSETS, b e ginning o f y ear 57 , 9 5 4 (4 2 0 , 1 6 6) (3 6 2 , 2 12) NET A SSETS, e n d o f y ear 11 8 , 2 9 0 $ (1 3 5 , 0 0 9) $ (1 6 , 7 19) $ 113 CI T Y O F B O ZE M A N , M O N T A NA IN T E R N A L S E R V I C E FUN D S CO M B I N I N G S T A T E M EN T O F C A S H F L O W S Fo r t h e Y e a r E n d e d J u n e 3 0, 2 0 04 Ve hicl e Medic a l Mainte na nc e Hea lth Shop In sura n ce Total CA SH F L OW S F ROM OP ERATIONS : Rec e i pt s f rom c u stom er s 49 7 , 9 7 9 $ 2,32 0 , 2 7 3 $ 2,818,252$ Rec e i pt s f rom o t h ers 86 - 86 Repa y men t o f l oan s f rom ot her C ity f unds - (20 2 , 1 0 6) (202,106) Pa y men ts t o s upp l iers (30 6 , 9 6 2) (35 5 , 1 7 7) (662,139) Pa y men ts t o e m pl oyee s (9 6 , 1 1 7) (1 ,5 4 5 , 8 8 1) (1,641,998) Paymen ts t o I n te r n al S e r v ic e F u nds a n d a d m inistra t i v e f ee s (2 3 , 6 0 3 ) (14 1 , 0 2 9) (164,632) Net C ash P r ov ided ( U sed) b y O per a t ing A ctivities 71 , 3 8 3 76 , 0 8 0 147,463 CASH F L OW S F ROM CAPITAL A ND R ELATED F I N A NC IN G A CTIVI T IES : Add i tion s t o p r o p e r ty, p l ant a n d eq u ipm en t (46 , 0 5 9) - (46,059) In tere st p a i d o n b o n ds , i nterf und l oan s, loan s a nd l eases - (7 66 ) (766) Net C ash F low s f rom C api tal a nd R elated F inancing A ctivities (4 6 , 0 5 9) (7 66 ) (46,825) CASH F L OW S F ROM IN V E S TIN G A CTIVI T IES : In tere st o n i n vestments 1,0 3 4 - 1,034 Ne t I n cr e a se ( D e cre a s e) i n C ash a n d Cash E q u ivale nts 26 , 3 5 8 75 , 3 1 4 101,672 CASH A ND E Q UIVALENTS, b e g inning o f y ea r 47 , 3 9 2 - 47,392 CASH A ND E Q UIVALENTS, e n d o f y ea r 73 , 7 5 0 $ 75 , 3 1 4 $ 149,064$ 114 CI T Y O F B O ZE M A N , M O N T A NA IN T E R N A L S E R V I C E FUN D S CO M B I N I N G S T A T E M EN T O F C A S H F L O W S ( C O N T I N U E D) Fo r t h e Y e a r E n d e d J u n e 3 0, 2 0 04 A r e c o ncili a t i o n of o pera t i n g l o s s t o c a s h p rov id ed b y ( use d i n ) o per at i n g a c t i v it ie s f oll ows: Ve h icl e Med i c a l Ma i n te n ance Hea l t h Shop In sura n ce Total OPER ATIN G I N COME 59 , 21 6 $ 28 5 , 9 23 $ 345,139$ Adjust m ents t o r eco ncil e o p er at i n g i n co m e ( loss) to n et c a s h p rov id ed ( u se d ) b y o pera t i n g a c t i v it i e s Depr e c i at ion 19 , 32 0 - 19,320 Ot h er i n co m e 86 - 86 Chan ges i n a s se t s a n d l i a b il i ti e s : (I n cr e a s e) D e c r e a se i n : C ustom er r e c e i vabl e s - 75 7 757 In crea s e ( D ec r e a se) i n : A cc o u nts p a y able (12 ,6 9 2 ) (1 3 , 5 9 7 ) (26,289) A cc r u ed e m pl oyee b e n efits p ayabl e 5,45 3 5, 1 0 3 10,556 I n terf und b o r r o w ings - (2 0 2 , 1 06 ) (202,106) Total a d j ustments 12 , 16 7 (2 0 9 , 8 43 ) (197,676) Ne t c a s h p r ovid ed ( use d ) b y o per at i n g a c t i v it ie s 71,383 $ 76 , 0 80 $ 147,463$ AG E N C Y F U N D S S T A T E M E N T S 115 CI T Y O F B O ZE M A N , M O N T A NA AG E N C Y F UN D S CO M B I N I N G S T A T E M EN T O F F I D U C I A R Y N E T A S S E T S Ju n e 3 0 , 2 004 Mo n tan a Boz e man Total Arts C o un c il Sy mpho ny Municipal Agency -B al let Orchest ra Co ur t Funds ASS E T S Ca sh a nd c ash equi va le nt s 8 $ 6 $ 10 7 , 6 0 6 $ 107,620 $ Custom er r e c e iv ab l e s - - 2, 0 8 0 2,080 Du e f r om o the r f u n d s - - 4, 4 5 9 4,459 Total a s s e t s 8 6 11 4 , 1 4 5 114,159 LIABIL IT IE S Acc o u nts p a y abl e 8 6 11 4 , 1 4 5 114,159 Total l i a b ili t i e s 8 $ 6 $ 11 4 , 1 4 5 $ 114,159 $ 116 CI T Y O F B O ZE M A N , M O N T A NA AG E N C Y F UN D S CO M B I N I N G S T A T E M EN T O F C H A N G E S I N AS S E T S A N D L I A B I L I T I E S Ye a r E n d e d J u n e 3 0 , 20 0 4 Mo n tan a Boz e m an Arts C o un c il Sy mphony -Bal let Orc h estra B ala n ce June 30, 2 003 A ddit i o n s D e l e t ions B a l a n ce Ju ne 3 0 , 2 0 04 B alance June 3 0 , 2 0 0 3 A dd i t i o n s Deletions Balance June 30, 2004 AS S ETS Cash a nd c a s h e q u ivale n ts - 11 , 95 8 (1 1, 9 5 0 ) 8 51 5, 2 54 (5,299) 6 Total a s s e t s - 11 , 95 8 (1 1, 9 5 0 ) 8 51 5, 2 54 (5,299) 6 LIABIL IT IE S Acc o u nts p a y abl e - 11 , 95 8 (1 1, 9 5 0 ) 8 51 5, 2 54 (5,299) 6 Total l i a b ili t i e s - $ 11 , 95 8 $ (1 1, 9 5 0 ) $ 8 $ 51 $ 5, 2 54 $ (5,299)$ 6$ 117 CI T Y O F B O ZE M A N , M O N T A NA AG E N C Y F UN D S CO M B I N I N G S T A T E M EN T O F C H A N G E S I N AS S E T S A N D L I A B I L I T I E S ( C O N T I N U E D ) Ye a r E n d e d J u n e 3 0 , 20 0 4 Mu nici p a l Co u r t Ba l a n ce Ju ne 3 0 , 2 0 03 A ddi tion s D eletions Bala nce Jun e 3 0, 2 004 ASS E T S Ca s h a nd c ash equi va l ent s 186,934 $ - $ (7 9 , 3 2 8 ) $ 10 7 , 6 0 6 $ Custom er r e c e i vabl e s 3, 9 1 2 - (1 , 8 3 2 ) 2, 0 8 0 Due f r om o the r g o ve rn m ent s 100 - (1 0 0 ) - Due f r om o the r f u n d s 562 3, 8 9 7 - 4, 4 5 9 Tota l a s s e t s 191,5 08 3, 8 9 7 (8 1 , 2 60) 11 4, 1 4 5 LIABIL IT IE S Acco u nts p a y able 19 1 , 5 0 8 3, 8 9 7 (8 1 , 2 60) 11 4, 1 4 5 Tota l l i a b il i t ie s 191,5 08 $ 3, 8 9 7 $ (8 1 , 2 60) $ 11 4, 1 4 5 $ PA R T I I I ST A T I S T I C A L S E C T I O N 118 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. GE N E R A L GO V E R NMENT A L E X P END I T U R E S B Y F U N C T I ON (G E N E R A L FU N D , S P E CI A L R E V E NU E F U N DS, D E B T S E R V I C E F U NDS AN D C API T AL P R O J E C T F U N D ) Pa s t T e n F i s c al Y e a r s Fisc a l Ge n eral Publi c Pu bli c Publi c Bond Ca p i t a l Ye a r Go v ern ment Safety Serv ice Welfare De b t S erv ice Outlay Total 19 9 5 2,2 8 5 , 99 3 $ 3, 2 3 1 , 96 0 $ 1,65 2 , 3 51 $ 2, 19 7 , 1 1 7 $ 961 , 8 3 8 $ 1, 3 2 7 , 1 8 6 $ 11,656,445$ 19 9 6 3,2 5 9 , 15 1 3, 7 8 6 , 62 9 1,74 3 , 0 65 2, 29 6 , 7 2 0 1, 6 5 5 , 4 0 7 1, 4 32 , 7 6 0 14,173,732 19 9 7 3,7 9 4 , 51 6 4, 7 0 7 , 91 9 1,63 2 , 9 67 2, 29 9 , 8 8 2 1, 1 5 1 , 9 7 5 28 2 , 8 3 8 13,870,097 19 9 8 3,9 9 6 , 09 5 4, 6 4 8 , 66 0 2,99 0 , 4 84 2, 19 3 , 6 6 6 1, 1 1 7 , 7 5 3 2, 2 33 , 9 5 7 17,180,615 19 9 9 3,2 5 6 , 01 7 5, 8 0 4 , 24 4 2,29 8 , 0 31 2, 96 0 , 7 9 5 1, 0 1 6 , 3 0 5 1, 7 32 , 8 9 6 17,068,288 20 0 0 3,4 5 6 , 06 8 5, 9 3 4 , 04 0 3,19 1 , 7 82 3, 09 9 , 4 5 0 93 0 , 5 5 8 1, 2 4 4 , 2 1 4 17,856,112 20 0 1 3,5 7 7 , 30 1 6, 5 0 0 , 29 0 2,67 9 , 7 02 3, 14 5 , 4 0 1 1, 0 7 6 , 7 8 8 3, 4 34 , 1 9 1 20,413,673 20 0 2 3,5 6 9 , 32 3 6, 7 2 3 , 26 3 2,09 4 , 5 52 3, 53 8 , 7 4 8 1, 6 2 2 , 8 5 0 4, 6 49 , 5 0 8 22,198,244 20 0 3 3,8 5 3 , 46 4 7, 2 3 2 , 37 4 2,02 8 , 8 64 3, 43 0 , 9 8 3 1, 5 2 2 , 3 6 2 3, 5 36 , 0 4 5 21,604,092 20 0 4 4,4 0 6 , 57 7 7, 6 6 1 , 42 1 2,11 5 , 8 56 4, 15 4 , 2 2 8 2, 1 1 5 , 4 3 8 4, 8 24 , 9 6 5 25,278,485 So u rce : C ity H a l l , B oze man, M ontan a 119 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. GE N E R A L GO V E R NMENT A L R E V ENU E S B Y SO U R C E (G E N E R A L FU N D , S P E CI A L R E V E NU E F U N DS, D E B T S E R V I C E F U NDS AN D C API T AL P R O J E C T F U N D ) Pa s t T e n F i s c al Y e a r s Fisc a l Sp ec i al Licenses In t erg o vern- Ch a r g e s Fines a n d Inter e s t o n Ye a r Taxe s Asses s m en t s an d P erm its mental for S e r v i ce s Fo rf ei ture s Inves tmen ts OtherTotal 19 9 5 4,5 6 0 ,2 4 4 $ 1, 5 5 2 , 3 27 $ 627 , 9 5 4 $ 2, 1 0 8 , 77 5 $ 1, 4 73 , 9 2 1 $ 48 2 , 1 87 $ 483 , 8 8 6 $ 634,857$ 11,924,151$ 19 9 6 5,2 2 0 ,7 4 9 1, 0 0 9 , 7 84 79 8 , 4 6 1 2, 6 6 2 , 41 8 1, 5 53 , 8 5 8 51 2 , 3 25 610 , 7 4 6 285,156 12,653,497 19 9 7 5,6 8 5 ,4 1 6 87 6 , 1 58 81 6 , 6 8 4 3, 1 7 5 , 69 2 2, 2 61 , 1 8 6 63 0 , 9 92 322 , 8 8 7 605,208 14,374,223 19 9 8 6,3 4 0 ,3 5 5 69 0 , 7 67 74 8 , 9 7 2 3, 6 0 9 , 65 7 2, 2 53 , 0 4 1 92 1 , 6 11 602 , 4 5 2 517,429 15,684,284 19 9 9 6,4 6 0 ,3 0 1 64 0 , 4 25 78 2 , 6 2 5 3, 8 4 1 , 69 3 2, 7 39 , 2 5 9 83 5 , 9 18 578 , 2 4 6 1,040,652 16,919,119 20 0 0 6,2 9 2 ,4 8 2 84 4 , 5 41 79 6 , 5 3 8 4, 0 9 5 , 19 9 3, 4 34 , 8 9 5 84 9 , 6 45 680 , 7 1 1 716,072 17,710,083 20 0 1 7,3 0 8 ,7 3 4 1, 1 4 9 , 2 81 78 2 , 2 5 0 4, 0 7 6 , 76 0 4, 1 61 , 2 1 5 95 8 , 8 43 896 , 8 3 7 525,157 19,859,077 20 0 2 7,1 6 4 ,3 6 6 1, 1 6 8 , 8 13 81 7 , 2 6 3 5, 2 0 4 , 13 8 4, 7 56 , 1 1 4 1, 0 8 0 , 5 46 463 , 1 9 9 975,886 21,630,325 20 0 3 7,9 4 0 ,7 7 7 1, 2 3 4 , 1 19 1, 1 38 , 8 0 1 5, 2 5 5 , 15 7 5, 6 37 , 6 1 8 1, 3 0 5 , 5 36 413 , 2 1 2 1,249,283 24,174,503 20 0 4 9,2 7 4 ,9 2 3 1, 1 6 4 , 1 51 1, 1 20 , 8 6 4 5, 2 4 3 , 74 0 5, 2 46 , 6 0 8 1, 1 8 8 , 7 06 342 , 9 7 9 1,085,683 24,667,654 So u rce : C ity H a l l , B oze man, M ontan a 120 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. PR O P E R T Y TA X L E V I E S A N D C O L LE C T I O N S La s t T e n F i s c al Y e a r s Cu rrent Perce n ta g e De l i nquent Tota l C o l l e c t i o n s Fisca l Total Tax of L evy Tax Tot a l T ax as P ercent of Ye a r Tax L evy Coll e c t i ons Coll e c t e d Co ll ec t i o ns Co ll e c t i o ns Cu rrent Levy 19 9 5 3, 7 8 1, 6 3 5 3, 5 4 7 , 3 4 3 93 . 8 0% 24 5 , 6 7 9 3, 7 9 3 , 0 2 2 100.30% 19 9 6 4, 4 1 3, 0 0 5 4, 2 3 8 , 9 8 3 96 . 0 6% 10 2 , 0 2 1 4, 3 4 1 , 0 0 4 98.37% 19 9 7 4, 9 0 1, 3 7 8 4, 7 7 4 , 3 9 0 97 . 4 1% 79 , 2 2 4 4, 8 5 3 , 6 1 4 99.03% 19 9 8 5, 1 5 9, 2 2 1 4, 9 9 9 , 6 9 2 96 . 9 1% 12 7 , 0 2 1 5, 1 2 6 , 7 1 3 99.37% 19 9 9 5, 4 5 0, 8 3 8 5, 2 7 6 , 9 3 6 96 . 8 1% 11 6 , 6 8 7 5, 3 9 3 , 6 2 3 98.95% 20 0 0 5, 5 7 0, 4 4 0 5, 1 8 1 , 0 8 7 93 . 0 1% 10 9 , 5 4 0 5, 2 9 0 , 6 2 7 94.98% 20 0 1 5, 5 5 3, 8 6 7 5, 7 8 4 , 2 9 2 10 4 . 1 5% 23 3 , 0 3 7 6, 0 1 7 , 3 2 9 108.34% 20 0 2 6, 1 6 4, 1 6 5 6, 2 5 6 , 6 4 0 10 1 . 5 0% 22 0 , 6 0 9 6, 4 7 7 , 2 4 9 105.08% 20 0 3 7, 1 0 2, 1 4 2 6, 9 1 4 , 3 4 8 97 . 3 6% 26 3 , 2 0 1 7, 1 7 7 , 5 4 9 101.06% 20 0 4 8, 0 9 3, 4 8 0 8, 2 1 2 , 4 0 6 10 1 . 4 7% 21 8 , 5 3 5 8, 4 3 0 , 9 4 1 104.17% So u rce s : Ga l l a t i n Co unty A ss e s s or's O f fice Cit y H a l l, B o z e man, M ontan a 121 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. A S S E S S E D A N D E S T I M ATE D M A R K E T V A L U E O F T A X A B L E P R O P E R T Y La s t T e n C a l end a r Y e a r s Ratio o f T a x abl e Ca l end ar Market Taxa ble Value t o Ye a r Va l u e Val u e Ma r k et V a l u e 199 4 73 3 , 1 71 , 8 0 5 $ 32 , 5 60 , 7 9 1 $ 4. 4 4 % 199 5 77 7 , 7 32 , 6 9 1 34 , 7 1 8 , 3 7 2 4. 4 6 % 199 6 82 0 , 4 84 , 5 7 3 36 , 2 8 5 , 7 2 1 4. 4 2 % 199 7 86 5 , 3 66 , 8 3 2 37 , 5 7 9 , 6 6 6 4. 3 4 % 199 8 92 7 , 6 11 , 0 9 5 39 , 2 7 4 , 3 2 1 4. 2 3 % 199 9 94 9 , 3 18 , 9 0 1 39 , 4 2 0 , 6 2 6 4. 1 5 % 200 0 1, 0 5 3 , 1 67 , 4 0 8 39 , 9 32 , 0 0 3 3. 7 9 % 200 1 1, 1 6 8 , 4 59 , 9 8 6 42 , 5 53 , 0 1 4 3. 6 4 % 200 2 1, 4 2 7 , 8 55 , 6 7 9 49 , 5 59 , 9 0 7 3. 4 7 % 200 3 1, 5 7 1 , 9 89 , 1 2 3 52 , 9 85 , 2 7 4 3. 3 7 % So urce: G a l l a ti n C oun t y A ss e ss o r's O f f i c e 122 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. PR O P E R T Y TA X R A T E S A N D T A X L E V I E S DI R E C T A ND O V E R L APP I N G G O VERN M E N T S La s t T e n C a l end a r Y e a r s Ca l endar Ci ty o f Boze m an Ga l l a t i n ** Ye ar Boze man* Sc ho ol D ist ri ct Co un t y State Total 199 4 10 8 . 88 $ 19 0 . 9 4 $ 49 . 4 7 $ 46 . 0 0 $ 395.29 $ 199 5 11 4 . 14 23 3 . 4 8 55 . 1 6 46 . 0 0 448.78 199 6 12 5 . 11 24 2 . 0 4 55 . 3 8 46 . 0 0 468.53 199 7 13 3 . 08 24 3 . 6 9 56 . 3 4 46 . 0 0 479.11 199 8 13 5 . 29 24 1 . 6 4 56 . 3 6 46 . 0 0 479.29 199 9 13 6 . 79 24 0 . 3 8 56 . 5 7 46 . 0 0 479.74 200 0 13 9 . 31 23 7 . 4 8 58 . 0 9 46 . 0 0 480.88 200 1 14 4 . 84 24 8 . 0 6 61 . 4 8 46 . 0 0 500.38 200 2 14 5 . 21 25 2 . 9 4 63 . 0 1 46 . 0 0 507.16 200 3 15 2 . 21 26 6 . 4 3 66 . 4 6 46 . 0 0 531.10 So u rce : M ontax Boo k Ca l endar Ci ty o f Boze m an Ga l l a t i n ** Ye ar Boze man* Sc ho ol D ist ri ct Co un t y State Total 199 4 3,44 8 , 2 30 $ 6, 0 4 7 , 07 0 $ 1, 5 6 6 ,7 1 5 $ 1, 4 5 6, 8 2 0 $ 12,518,835 $ 199 5 3,71 6 , 3 98 7, 6 0 2 , 10 9 1, 7 9 6 , 0 1 0 1, 4 9 7 , 7 6 0 14,612,277 199 6 4,34 3 , 5 69 8, 4 0 3 , 14 5 1, 9 2 2 , 6 8 3 1, 5 9 7 , 0 2 8 16,266,425 199 7 4,82 8 , 8 08 8, 8 4 2 , 29 1 2, 0 4 4 , 2 9 6 1, 6 6 9 , 1 1 0 17,384,505 199 8 5,08 3 , 9 27 9, 0 8 0 , 59 0 2, 1 1 7 , 9 5 2 1, 7 2 8 , 6 3 4 18,011,103 199 9 5,37 7 , 6 25 9, 4 5 0 , 05 9 2, 2 2 3 , 9 3 6 1, 8 0 8 , 3 9 8 18,860,018 200 0 5,49 3 , 6 89 9, 3 6 5 , 02 3 2, 2 9 0 , 7 7 9 1, 8 1 4 , 0 1 0 18,963,501 200 1 5,84 7 , 0 46 10 , 0 1 3 , 9 3 4 2, 4 8 1 , 8 8 6 1, 8 5 6 , 9 7 4 20,199,840 200 2 6,16 4 , 1 65 10 , 7 3 7 , 3 0 3 2, 6 7 4 , 7 7 4 1, 9 5 2 , 7 0 0 21,528,942 200 3 7,01 0 , 0 32 12 , 2 7 0 , 4 3 4 3, 0 6 0 , 8 1 5 2, 1 1 8 , 5 3 0 24,459,811 * Does n ot i n cl u de t ax r ate o r l e v y a s s o ci at e d w it h C i t y P lan ning B oar d. ** Ex cl udes r o a d a n d l i b r a r y l e v ies w hic h a r e n ot l e v ied o n C ity o f B oze m an . So u rce : M ontan a T axpayer s ' A ssoci a t io n TAX R ATE S ( P E R $ 1 , 0 00 O F T AXABL E V ALUE) TA X L EVIES 123 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. SP E C I A L I M P R O V E M E N T D I S T R I C T B I L L I N G S AN D C O L L EC T I O N S La s t T e n F i s c al Y e a r s Curr e n t Curr e n t Curr e n t Fisca l Assessments Asses smen ts Pe r c e n t Del i n qu ent Total Ye a r Bill e d Col l e c t e d Coll e c t e d Coll e c t i o n s Co llections 19 9 5 69 0 , 7 12 $ 63 2 , 1 4 4 $ 91 . 52 % 29 7, 5 6 6 $ 929,710 $ 19 9 6 74 1 , 5 27 67 8 , 2 2 2 91 . 46 % 65 , 6 4 9 743,871 19 9 7 57 8 , 9 95 52 6 , 0 0 1 90 . 85 % 64 , 5 9 9 590,600 19 9 8 49 3 , 9 34 40 9 , 7 8 5 82 . 96 % 79 , 0 3 0 488,815 19 9 9 38 0 , 7 82 30 7 , 7 7 7 80 . 83 % 10 1 , 9 8 1 409,758 20 0 0 53 7 , 1 61 46 0 , 6 4 5 85 . 76 % 58 , 4 4 6 519,091 20 0 1 40 9 , 2 50 40 1 , 0 8 3 98 . 00 % 51 , 8 9 0 452,973 20 0 2 33 4 , 0 77 30 2 , 0 5 7 90 . 42 % 32 , 2 8 5 334,342 20 0 3 29 0 , 7 06 25 8 , 3 9 6 88 . 89 % 29 , 4 7 8 287,874 20 0 4 27 1 , 2 61 25 7 , 8 6 7 95 . 06 % 31 , 6 6 2 289,529 So u rce : C ity H a l l , B oze m an , M o n tan a 124 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. RA T I O O F C O M P A R A T I V E B O N D E D D E B T T O AS S E S S E D VA L U E A N D B O N D E D DE B T P E R CA P I T A La s t T e n F i s c al Y e a r s Ra t i o o f Bo n ded D ebt Fisca l Taxabl e Bo nded to T a x abl e Bon ded D ebt Ye a r Pop u la ti o n ( 1 ) Val ue ( 2 ) Deb t Val u e pe r C api t a 19 9 5 24 , 9 6 7 32 , 56 0 , 7 9 1 $ 5, 37 5 , 0 0 0 $ 16 . 5 1% 21 5 . 28 $ 19 9 6 25 , 4 5 6 34 , 71 8 , 3 7 2 5, 21 5 , 0 0 0 15 . 0 2% 20 4 . 86 19 9 7 25 , 9 5 4 36 , 28 5 , 7 2 1 4, 98 5 , 0 0 0 13 . 7 4% 19 2 . 07 19 9 8 26 , 4 6 2 37 , 57 9 , 6 6 6 4, 74 0 , 0 0 0 12 . 6 1% 17 9 . 12 19 9 9 26 , 9 8 1 39 , 27 4 , 3 2 1 4, 48 5 , 0 0 0 11 . 4 2% 16 6 . 23 20 0 0 27 , 5 0 9 39 , 42 0 , 6 2 6 4, 21 5 , 0 0 0 10 . 6 9% 15 3 . 22 20 0 1 28 , 0 5 9 39 , 93 2 , 0 0 3 6, 11 0 , 0 0 0 15 . 3 0% 21 7 . 76 20 0 2 28 , 6 2 0 42 , 55 3 , 0 1 4 6, 11 0 , 0 0 0 14 . 3 6% 21 3 . 49 20 0 3 29 , 1 9 2 49 , 55 9 , 9 0 7 10 , 96 0 , 0 0 0 22 . 1 1% 37 5 . 45 20 0 4 29 , 7 7 6 52 , 98 5 , 2 7 4 10 , 56 5 , 0 0 0 19 . 9 4% 35 4 . 82 (1) C e ns u s t ake n e very t en y ears. O f f - y ears a re e s t imated b ase d o n p revious po p u lation i ncr e a ses. (2 ) S o u rce: G a l lat i n C ounty Assessor ' s O f fice , b a s ed o n p r e v ious c a le n dar y ea r . 125 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. CO M P U T A T IO N O F L E G AL D E B T M ARG I N Ju n e 3 0 , 2 004 TAXA BLE V A LUE 52 , 9 85,274 $ DE B T L IMI T 23 , 7 37,036 * GE N E R AL O B LIGA TION B OND S Libr a r y G .O. b o n ds 3, 7 6 0 ,0 0 0 $ Tran spo r t ation G .O. b o n ds 6, 8 0 5 ,0 0 0 To t al G .O. b o n ds 10 , 5 65 , 0 0 0 OT HE R G ENE R AL O B L IGA TION S Loan for P r o fes sion al B u ilding 30 8 ,3 9 7 Tota l o ther g eneral o blig at i o ns 30 8,397 10 , 8 73 , 3 9 7 RE SE RV ED F U ND B ALANCES Libr a r y f und b a l ance 63,73 5 Tran spo r t ation f und b a l ance 3,2 2 1 ,4 8 1 To t al r e s erv ed f und b a lance s 3, 2 85 , 2 1 6 To t al b o nded d e bt ( l es s a m ou nt av ai labl e i n d e b t s erv ice f unds) 7,588,181 LE GA L D E BT M A R G IN 16 , 1 48,855 $ * 1.5 1 % o f t otal t axable p r o p er t y $ 1 ,5 7 1 , 9 8 9, 1 2 3 So u rce : C it y H a l l , B oze m an , M ontan a 126 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. CO M P U T A T IO N O F D I RECT A N D O VER L A P P I N G D E B T Ju n e 3 0 , 2 004 a n d 2 00 3 Perc e n ta g e Percentage Appli c a b l e Applicable As o f to C i t y o f As o f to City of Ju ne 3 0 , 20 0 4 Bo z e m an Ju ne 3 0 , 2 0 03 Bozeman Cit y o f B oze m an , M o n tana General o b l igat ion d ebt 10 , 5 6 5, 0 0 0 $ 11 ,2 7 5 , 0 00 $ Less: Debt S erv ice F und b a lance ( def icit) 3, 2 8 5, 2 1 6 3,58 9 , 8 95 Net g enera l o bligat ion d e b t 7, 2 7 9, 7 8 4 $ 100 % 7,68 5 , 1 05 $ 100% Overlapp i ng B o n ded I n debt ed n ess Ga l l a t in C o unty : Vari ou s i ssues 7, 8 8 1, 6 0 4 $ 34 % 8,22 5 , 0 00 $ 33% Boze m an S c h oo l D i s tri c t # 7 : High S c ho ol Vari ou s i ssues 89 5, 0 0 0 53 % 1,06 5 , 0 00 49% El e m en ta r y S c h ool s Vari ou s i ssues 9, 8 3 0, 0 0 0 70 % 11 ,0 7 5 , 0 00 63% Total o ver l apping b o nd i nde bt ed n ess 18 , 6 0 6, 6 0 4 $ 20 ,3 6 5 , 0 00 $ So u rce s : Ci t y H a l l , B oze m an , M o ntan a Ga ll a ti n C o un ty A ss e s s o r's Of f i c e Boze m an S c h oo l D i s tri c t # 7 127 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. RA T I O O F A NN U AL D E BT S E R V I C E E X P E N D I TU R E S FO R G E N E R AL O B L I G ATIO N B O ND ED D E B T TO TO T A L G E N E R A L G O V E R NMENT A L EX P END I T U R E S La s t T e n F i s c al Y e a r s Rati o o f Debt Tota l Total Se r v ice to Fi s cal De b t Ge n era l Gen eral Ye ar Prin ci p a l Inter e s t Ser v ice Ex pe n ditures Ex pe n ditures 19 9 5 75 , 0 00 $ 29 , 7 1 9 $ 10 4 , 71 9 $ 11 , 6 56 , 4 4 5 $ 0.90% 19 9 6 16 0 , 0 00 36 3 , 4 03 52 3 , 40 3 14 , 1 7 3 , 7 3 2 3.69% 19 9 7 23 0 , 0 00 29 3 , 4 56 52 3 , 45 6 13 , 8 7 0 , 0 9 7 3.77% 19 9 8 24 5 , 0 00 27 7 , 3 48 52 2 , 34 8 17 , 1 8 0 , 6 1 5 3.04% 19 9 9 25 5 , 0 00 25 9 , 0 13 51 4 , 01 3 17 , 0 6 8 , 2 8 7 3.01% 20 0 0 27 0 , 0 00 24 3 , 1 10 51 3 , 11 0 17 , 8 5 6 , 1 1 2 2.87% 20 0 1 20 5 , 0 00 22 8 , 7 12 43 3 , 71 2 20 , 1 5 7 , 1 6 4 2.15% 20 0 2 21 5 , 0 00 21 8 , 8 73 43 3 , 87 3 22 , 1 9 8 , 2 4 4 1.95% 20 0 3 31 5 , 0 00 37 7 , 5 07 69 2 , 50 7 21 , 6 0 4 , 0 9 2 3.21% 20 0 4 39 5 , 0 00 39 1 , 6 35 78 6 , 63 5 25 , 2 7 8 , 4 8 5 3.11% So urce : C it y H a l l , B oze m an, M o ntan a 128 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. RE V E N U E B O N D C O V ERA G E WA T E R S Y S T E M R E V E N U E B O N D S La s t T h e n F i s c a l Y e ar s Net R e v e nu e Fisc a l Op er at i n g Operati ng Avai l a b le f or Ye a r Revenue Ex pe n ses ( a ) Deb t S e r v ic e ( b ) Pri n cip a l In tere s t Tota l Coverage (c) 19 9 5 2, 6 8 9 , 45 2 $ 1, 5 5 3 , 0 3 2 $ 1, 13 6 , 4 2 0 $ 30 7 , 8 3 5 $ 37 6 , 2 7 6 $ 68 4 , 1 11 $ 1.66 19 9 6 2, 6 0 9 , 47 5 1, 6 9 9 , 0 1 5 91 0 , 4 6 0 29 3 , 6 5 4 20 0 , 6 6 7 49 4 , 3 21 1.84 19 9 7 2, 8 7 6 , 42 8 2, 1 1 4 , 5 2 3 76 1 , 9 0 5 30 6 , 0 6 8 18 0 , 4 1 4 48 6 , 4 82 1.57 19 9 8 2, 8 5 7 , 70 1 1, 7 8 6 , 2 6 9 1, 07 1 , 4 3 2 32 8 , 6 0 1 16 4 , 5 4 8 49 3 , 1 49 2.17 19 9 9 3, 0 7 7 , 37 4 2, 2 7 1 , 7 7 6 80 5 , 5 9 8 34 1 , 2 5 9 15 1 , 6 8 2 49 2 , 9 41 1.63 20 0 0 3, 1 3 8 , 65 4 2, 1 2 2 , 9 6 2 1, 01 5 , 6 9 2 35 9 , 0 5 0 13 6 , 7 5 0 49 5 , 8 00 2.05 20 0 1 3, 5 8 8 , 66 1 2, 2 7 6 , 4 8 3 1, 31 2 , 1 7 8 37 6 , 9 7 9 12 0 , 7 4 7 49 7 , 7 26 2.64 20 0 2 3, 5 5 6 , 44 7 2, 2 2 7 , 7 2 1 1, 32 8 , 7 2 6 39 5 , 0 5 3 10 3 , 6 4 1 49 8 , 6 94 2.66 20 0 3 3, 9 3 5 , 63 6 2, 1 9 4 , 4 4 0 1, 74 1 , 1 9 6 41 3 , 2 8 0 85 , 3 9 1 49 8 , 6 71 3.49 20 0 4 4, 3 5 9 , 29 9 1, 9 5 0 , 8 3 2 2, 40 8 , 4 6 7 43 1 , 6 6 6 65 , 9 6 3 49 7 , 6 29 4.84 (a ) Ex cl usive o f d epr e c i at ion a nd b o n d i nterest (b ) Gr o s s re v enue i n c o l umn ( 2 ) m inus e x pe nses i n c o l umn ( 3 ) (c ) Column ( 4 ) d i vide d by c o l umn ( 7 ) So u rce : C it y H a l l, B oze man, M ontan a 129 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. AV E R A G E AN N U A L W ATE R A N D S E W E R B I L L S La s t E i g h t F i s c a l Y ea r s Fisc a l Si n gle Mu lt i - Ye a r Fa m il y Fa m il y Go vern ment MS U Commercia l Total 19 9 7 27 8 . 2 6 $ 40 1 . 2 2 $ 69 8 . 6 6 $ 21 ,7 9 9 . 8 2 $ 49 6 . 7 7 $ 23,674.73 $ 19 9 8 23 5 . 4 4 35 6 . 2 7 74 7 . 0 1 14 ,5 7 7 . 1 4 47 5 . 7 5 16,391.61 19 9 9 26 9 . 4 0 39 5 . 1 6 84 4 . 4 4 20 ,0 0 1 . 0 0 51 4 . 4 4 22,024.44 20 0 0 29 6 . 6 3 40 7 . 5 4 86 8 . 0 0 17 ,7 1 8 . 1 6 61 4 . 0 9 19,904.42 20 0 1 31 1 . 7 8 45 4 . 1 0 1,02 3 . 3 5 20 ,0 3 3 . 9 3 66 2 . 9 3 22,486.09 20 0 2 26 6 . 7 9 38 6 . 3 5 1,07 4 . 6 7 17 ,7 1 8 . 1 6 58 5 . 7 7 20,031.73 20 0 3 29 2 . 5 3 45 1 . 9 1 1,25 2 . 6 9 18 ,3 1 0 . 4 4 73 3 . 5 1 21,041.08 20 0 4 36 1 . 5 9 48 8 . 6 9 1,75 1 . 3 5 22 ,9 9 7 . 5 9 78 8 . 6 4 26,387.86 Fisc a l Si n gle Mu lt i - Ye a r Fa m il y Fa m il y Go vern ment MS U Commercia l Total 19 9 7 16 0 . 2 1 $ 36 5 . 6 3 $ 59 0 . 3 2 $ 22 ,6 5 8 . 6 7 $ 63 8 . 7 0 $ 24,413.53 $ 19 9 8 16 8 . 9 7 38 0 . 8 0 59 6 . 6 0 16 ,0 3 5 . 0 6 64 2 . 3 5 17,823.78 19 9 9 18 8 . 0 4 41 0 . 7 6 69 8 . 4 0 24 ,1 8 9 . 9 6 75 4 . 3 2 26,241.48 20 0 0 23 3 . 3 4 52 2 . 0 0 85 7 . 0 4 25 ,6 8 1 . 5 6 1,05 4 . 9 9 28,348.93 20 0 1 24 4 . 3 4 53 2 . 0 8 1,06 9 . 4 1 27 ,4 1 8 . 2 3 1,05 2 . 8 0 30,316.86 20 0 2 20 9 . 8 7 49 4 . 8 6 1,06 1 . 1 0 25 ,6 8 1 . 5 8 1,00 6 . 3 3 28,453.74 20 0 3 22 5 . 6 8 47 8 . 6 4 1,03 9 . 1 4 23 ,0 9 3 . 9 6 1,06 5 . 6 8 25,903.10 20 0 4 24 2 . 0 2 48 5 . 8 4 1,34 9 . 8 8 28 ,2 7 7 . 7 8 1,08 4 . 4 8 31,440.01 So urce : C it y H a l l , B oze m an, Mo ntan a AVERAGE A NNU A L S E WE R B I LLS F OR F I S C A L Y E AR AVERAGE A N NUAL W ATER B ILL S F O R F ISCAL Y EAR 130 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. NU M B E R OF U T I L I T Y A C C O UN T S La s t T e n F i s c al Y e a r s Fisc a l Si n gle Mu lt i- Ye a r Fa m il y Fa m ily Go vernment MS U Com mercia l Total 19 9 5 4, 0 4 6 1,1 6 1 41 15 76 4 6,027 19 9 6 4, 1 8 4 1,2 0 7 52 18 79 5 6,256 19 9 7 4, 3 5 0 1,2 7 1 47 19 80 5 6,492 19 9 8 4, 5 0 6 1,3 1 7 57 19 82 8 6,727 19 9 9 4, 6 1 6 1,3 4 8 49 19 82 0 6,852 20 0 0 4, 8 0 1 1,4 0 4 52 19 84 8 7,124 20 0 1 5, 0 5 2 1,4 5 0 56 19 87 2 7,449 20 0 2 5, 3 3 8 1,4 8 1 42 19 88 9 7,769 20 0 3 5, 5 5 0 1,5 3 4 41 19 91 4 8,058 20 0 4 5, 8 1 5 1,6 3 9 42 17 93 0 8,443 So u rce : C it y H a l l, B oze man, M ontan a 131 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. TO P T E N T A X P A Y E R S Ju n e 3 0 , 2 0 0 3 ( P r i o r F i s c a l Y e a r ) Mark et Taxabl e T axes Taxpay er Va l u e Val u e Paid Nort hWes tern E ner g y LLC 18 , 3 5 9 ,1 6 6 $ 2, 1 9 4, 3 2 1 $ 1, 2 09 , 5 0 3 $ Qwes t C orp o r a t ion 21 , 4 3 9 ,1 1 8 1, 2 8 6, 3 4 7 70 9 , 3 9 5 Gallat in M all 18 , 6 3 8 ,9 3 9 63 3 , 6 8 9 35 0 , 1 5 3 Br i dger P e a k s L LC 8,9 2 3 ,0 0 9 30 3 , 3 8 0 16 7 , 6 7 8 Bozeman D e a c o n ess Foundat io n 8,1 8 9 , 8 2 7 27 9 , 0 7 1 15 3 , 9 0 9 Costco W h ol es ale 8,1 1 5 ,5 2 2 27 0 , 5 8 9 14 8 , 8 7 7 Dayton H uds on Corp o rat ion 6,7 1 3 ,0 2 1 22 4 , 1 7 7 12 3 , 3 7 9 Firs t S ec u ri ty B a nk o f Bo z e m an 6, 5 2 3 ,6 6 1 21 8 , 8 2 2 12 0 , 7 6 3 Bo z eman I n vestor s of D uluth, LP 6, 3 3 2 ,9 4 8 21 4 , 0 2 6 11 8 , 2 5 8 Arcadi a G ard e n s A par tmen ts L LC 6, 0 4 0 ,4 5 6 20 5, 2 3 9 113 , 4 1 2 109 , 2 7 5 ,6 6 7 $ 5, 8 2 9, 6 6 1 $ 3, 2 15 , 3 2 7 $ So urce : Ga l l a t i n C o unty A ssess o r' s O f fice 132 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. DE M O G R A P H I C S T A T I S T I C S La s t T e n F i s c al Y e a r s Fisca l Pe r C apita Medi an Schoo l Unem pl oy ment Ye a r Popu la t i o n ( 1 ) Income (2 ) Age ( 3 ) Enrol l m en t (4 ) Rat e ( 5 ) 19 9 5 24 ,9 6 7 18 , 4 7 4 25 . 4 5, 0 7 3 2. 7 % 19 9 6 25 ,4 5 6 19 , 3 1 5 25 . 4 5, 0 3 0 2. 5 % 19 9 7 25 ,9 5 4 20 , 4 6 7 25 . 4 5, 0 3 1 3. 0 % 19 9 8 26 ,4 6 2 21 ,2 1 4 25 . 4 5, 0 9 3 3. 1 % 19 9 9 26 ,9 8 1 22 ,8 0 1 25 . 4 5, 0 9 1 2. 8 % 20 0 0 27 ,8 4 8 23 , 3 5 8 30 . 7 5, 1 2 4 2. 7 % 20 0 1 28 ,6 6 3 25 , 1 3 9 30 . 7 5, 1 6 7 2. 5 % 20 0 2 29 ,4 7 5 26 , 4 4 2 30 . 7 5, 1 2 4 2. 7 % 20 0 3 30 ,7 5 3 N/ A 30. 7 5,1 0 1 2. 8 % 20 0 4 31 ,9 8 3 N/ A 30. 7 5,0 8 6 N/A So u rce s a n d o t h er i n form at i o n : (1) C e ns u s t ake n e very t en y ears. O f f - y ears a re estimat ed b ase d o n previous po p u lation i ncr e a ses. (2 ) G a l l at i n C o u nty. (3 ) O n ly u pd a t ed o n ce e v er y t e n y ear s ( C en sus) (4 ) B o z e man P u bl ic S choo l Distri ct # 7 . (5 ) D e p a r t m ent o f L abo r , i n form at io n o n ly a v ai l abl e f or entire G allatin C o un t y. ( 1 2 m ont h a ver age e n d ing J un e 3 0) 133 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. PR O P E R T Y VA L U E , C O NS T R U C T I ON A N D B A NK D E P O S I TS La s t T e n F i s c al Y e a r s Bank Fisca l Prop e r t y De p o s it s Ye a r Va l u e (in t h ou sa n ds) # P erm it s Va l u e # P erm it s Value 19 9 5 73 3 , 17 1 , 8 0 5 $ N/A 32 8,9 5 7 , 2 9 4 $ 31 8 21,118,419 $ 19 9 6 77 7 , 73 2 , 6 9 1 N/A 17 5,5 0 6 , 3 5 0 29 5 56,789,680 19 9 7 82 0 , 48 4 , 5 7 3 N/A 35 17,52 0 , 1 7 4 33 8 27,534,676 19 9 8 86 5 , 36 6 , 8 3 2 N/A 14 6,1 5 3 , 9 5 8 26 4 29,674,778 19 9 9 92 7 , 61 1 , 0 9 5 N/A 30 20,65 7 , 5 9 3 30 1 32,400,886 20 0 0 94 9 , 31 8 , 9 0 1 N/A 29 15,67 0 , 1 6 6 52 8 38,122,532 20 0 1 1, 0 5 3 , 16 7 , 4 0 8 N/A 209 37 ,2 2 8 , 3 1 7 56 8 43,247,995 20 0 2 1, 1 6 8 , 45 9 , 9 8 6 N/A 142 38 ,7 2 4 , 5 9 1 58 0 51,503,321 20 0 3 1, 4 2 7 , 85 5 , 6 7 9 N/A 30 22,00 3 , 7 5 4 45 9 64,466,304 20 0 4 1, 5 7 1 , 98 9 , 1 2 3 N/A 36 26,80 1 , 6 3 6 38 1 85,028,045 * I n cl udes d e p o s its f rom F irs t N ational B a n k o f M i nnea p o l is So u rce s : Ga l l a t i n C o unty A ss e s sor's O f fice Mo nt ana D epart ment of C o mmerce Fi na nc i al D ivisi on Cit y H a l l, B o z e man, M ontan a Ne w C ommer c i a l Reside ntia l a n d Other 134 CI T Y O F B O ZE M A N , M O N T A NA Un au d it e d s t a t i s t i c a l i n fo r m at ion. IN S U R A N C E I N F O R C E Ju n e 3 0 , 2 004 a n d 2 00 3 COVERAGE F OR F ISCAL Y EARS 20 0 4 A ND 2 0 03 : LIABIL IT Y M A XI M U M P OLICY L IMI T : (a ) $75 0 , 0 0 0 f or a n O cc u rr e n ce w hich ar i ses o r d e r i ves f rom i njury t o o r de a t h o f a s ingle p e r son , o r d a m age t o p r operty o f a s ingle p e r son, r egardle s s o f t h e n umber o f p erson s o r e n ti t i e s cl a i m ing d amages t h er eb y. (b ) $1, 5 0 0 , 00 0 f or e a c h O cc u rr e nce w hic h d o e s n ot f all u nder ( a ) a bo v e. Limit L iab i l i t y : 50 0 , 0 0 0 , 0 0 0 $ Pe r O c c u rrence - a l l P e r il s , s ubjec t to p oli c y s u b-li m it s So u rce : C it y H a l l, B oze man, M ontan a PA R T I V RE P O R T S O F I N D E P E N D E N T PU B L I C A C C O U N T A N T S A N D SC H E D U L E O F E X P E N D I T U R E S O F F E D E R A L A W A R D S AS R E Q U I R E D B Y U . S . O F F I C E O F MA N A G E M E N T A N D B U D G E T C I R C U L A R A - 1 3 3 , AU D I T S O F S T A T E A N D L O C A L G O V E R N M E N T S A N D N O N - P R O F I T O R G A N I Z A T I O N S 135 CI T Y O F B O ZE M A N , M O N T A NA SC H E D U L E OF E X P E N D I T U R E S O F FE D E R A L A W A R D S FO R T H E Y E A R E N D E D J U N E 3 0 , 2 0 0 4 Grant Grant Federal Grant Revenu e Revenu e TotalAwards CFDA# Aw a rd Received Ac crued RevenueExpended U.S. D epa rtment o f J ustice 97 W RVX 0 0 0 3 D omesti c V i o l e nce 16 . 5 8 9 1, 0 1 6 , 66 7 $ 10 6 ,3 6 1 $ 35 , 2 7 0 $ 14 1 , 6 3 1 $ 141,631$ COPS i n S c ho o l s 16 . 7 1 0 10 5 ,5 4 7 - 19 , 4 3 8 19,438 19,438 COPS U niv ersal H iring S u p 16 . 7 1 0 22 5 ,0 0 0 - 75 , 0 0 0 75,000 75,000 Passed t h r ou g h S t a te o f M T B oard o f C rim e C on t r ol Mugsho t C apt u r e I /LEADS 0 3 - K15- 81 5 1 3 16 . 5 7 9 10 , 53 8 10 , 5 3 8 - 10,538 10,538 Passed t h r ou g h G all a ti n C ou n t y : Missou r i R iver D rug T ask F o r ce 16 . 5 7 9 10 0 ,3 8 1 74 , 0 5 6 26 , 3 2 5 10 0 , 3 8 1 100,381 U.S. D epa rtment o f T ranspo r ta ti o n Passed t h r ou g h M T D ept . o f T ransporta ti o n High wa y T r aff i c S afe t y Bozeman O ccup a nt P rot e cti o n : 0 0 -03 - 09 - 02 20 . 6 0 0 7, 48 8 7, 4 8 8 - 7,488 7,488 U.S. D epa rtment o f I nte rior Pass ed t hro ugh t he H i st orica l S oci et y: Histor ic P reservation 15 . 9 0 4 5, 12 5 5, 1 2 5 - 5,125 5,125 Cent e rs for D isease C on t rol a nd P reventi o n, D epa rtment o f He alt h & H u m an S e rv ic es Passed t h r ou g h t h e S tate o f M o n t a na Smok e D ete ctor s CDC G rant 93 . 1 3 6 1, 47 2 1, 4 7 2 - 1,472 1,472 Fe de ral Em ergenc y M a na gement A gency 20 0 1- 03 - 64 0 0 - 64 0 0 - 41 0 1 - D ( Fir e P reventi o n ) 83 . 5 5 4 10 4 ,1 5 2 27 , 0 0 0 - 27,000 27,000 U.S. E n viron m enta l P rot ecti o n A gency Water P lant S e curit y G rant 66 . 4 7 8 48 , 41 0 34 , 6 1 1 - 34,611 34,611 Wastewater F a cil i t i e s p r o j e ct: X P98 8 1 3 9 - 0 1 - 0 66 . 4 1 8 5, 0 0 0 , 00 0 1, 1 9 7, 6 5 1 38 6 , 9 4 4 1, 58 4 , 5 9 5 1,584,595 U.S. D epa rtment o f H ou s in g & U rba n D evelo p m ent Passed t h r ou g h M T D epa rtment o f C ommerce #M T -CDBG-ED-SB DC-03 - 51 - 00 5 1 14 . 2 2 8 3, 93 8 - 3, 9 3 8 3,938 3,938 Bo z eman P ub l i c L ibr a ry / B o z eman R ail D e po t VA-HU D B - 0 3 - S P -M T-02 4 0 14 . 2 4 6 17 8 , 8 3 0 17 8 ,8 3 0 - 17 8 , 8 3 0 178,830 Tota l F e de ral F i n a nc ia l A ssistance 6, 8 0 7 , 54 8 $ 1, 6 4 3, 1 3 2 $ 54 6, 9 1 5 $ 2, 19 0 , 0 4 7 $ 2,190,047$ Fe de ra l G ranto r / P ass - T hrou g h En t i t y 136 CI T Y O F B O Z E M A N , M O N T A N A NO T E S T O S C H E D U L E O F E X P E N D I T U R E S O F F E D E R A L A W A R D S Ju n e 3 0 , 2 0 0 4 NO T E 1 . R E P O R T I N G E N T I T Y Th e C i t y o f B o z e m a n ’ s r e p o r t i n g e n t i t y i s d e f i n e d i n N o t e 1 o f th e C i t y ’ s f i n a n c i a l s t a t e m e n t s . E x p e n d i t u r e s o f f e d e r a l a w a r d s r e c e i v e d d i r e c t l y f r o m f e d e r a l ag e n c i e s a s w e l l a s f e d e r a l a w a r d s p a s s ed t h r o u g h o t h e r g o v e r n m e n t a g e n c i e s a r e i n c l u d e d i n t h e a c c o m p a n y i n g s c h e d u l e . NO T E 2 . B A S I S O F A C C O U N T I N G Th e a c c o m p a n y i n g S c h e d u l e o f E x p e n d i t u r e s of F e d e r a l A w a r d s i s p r e s e n t e d u s i n g t h e m od i f i e d a c c r u a l b a s i s o f a c c o u n t i n g , w h i c h is described in Note 1 of th e C i t y ’ s f i n a n c i a l s t a t e m e n t s . NO T E 3 . N O N - C A S H T R A N S A C T I O N S Th e C i t y h a d n o n o n - c a s h t r a n s a c t i o n s i n t h e a c c o m p a n yi n g s c h e d u l e o f e x p e n d i t u r e s o f f e d e r a l a w a r d s . 137 INDEPE N D EN T AUD I TO R’ S R E P O RT O N C O MPLI A N CE AND ON INTE R N A L C O NTRO L OV E R F I N ANCIA L R E P O RT I N G B A SE D O N AN A U D IT OF FI NA NC I AL S TATE M EN T S P E R F ORMED I N AC CO R D AN C E WI T H GOVERN ME N T A UD I TI N G ST A N DA RD S Ho nora bl e M ayor, C ity C ommiss i on e r s , a n d C ity M ana g e r of t he Ci t y o f B o z e m an , M ont a n a : We have a u dited t h e f i nancia l s t a t e men ts o f th e g o v er n men ta l ac t i v it i e s , t h e busi n ess - t y p e a c t i v it i e s , e a c h m ajor f u n d, a n d t h e a g g reg at e r emaining fund information of the City of B o z e m an , Mo n t a na, a s of a n d fo r t he y e ar end e d J u n e 3 0 , 2 0 0 4 , and h a v e is s u e d ou r re po r t t her e on da t e d D e c e m be r 1 5 , 2 0 0 4 . We c ond u c t e d our audit in accordance with au d i t i n g s t a n d a rd s g e n e ra l l y a cc e p t e d i n t h e Un i t e d S t a t e s o f A m er i c a a n d t h e s t a n d a rd s ap p l i c a b l e t o f i n a n c i a l a u d i t s c o n t a i n e d i n Go ve r n m e n t Auditing Standards, issued by th e C o mptr o ll e r G e n era l o f t he U n it e d S t a t e s . Co mpli a n ce As p a rt o f o btaining re a s on a bl e a s s u ra nc e ab o u t w h e t h e r th e C i t y o f B o z e man’ s f i na n c ia l s t a t e men t s a r e f r e e o f m ate r i a l miss t a temen t, w e p erformed tests of its compliance wi th c e rt ai n pr ov i si on s o f l aws , re gu l at ions , c o nt ra c t s a nd gr a nts, non c ompl i anc e w i th wh i ch c ou l d have a di re c t a nd m ateri al e ff e c t o n t h e determination of financial statement am ou n t s . H o w e v e r, pr o v i d i ng a n o p i n i on on c ompli a n c e w i t h t h o s e p r o v i s i on s wa s n o t a n o b j e c t i v e of o u r a u d i t a n d , a c c o r d i ng l y, w e d o n o t express such an opinion. The re s u l ts of o ur t est s d i sc l ose d on e i nst ance of n on c om pl ianc e t hat a r e r e qu i re d t o be re p orted u nder Gove rn m e nt A udi ting St andards. T his i s de s c r i bed in the schedule of findings an d q u es t i o n ed c o st s a s i t e m 2 004 - 1. In t ernal C on t ro l o v e r Fi na nc i al R epo rt ing In p l anni ng a n d p e rf or m ing o u r a u di t, w e co n sider e d t he C ity o f B oze man’ s i nternal c o n t rol o ver f ina n c i al r e p orting i n o rde r t o d e t erm ine our auditing procedures for the pu rpo s e of e xpres s i ng o ur op i ni on o n t he f i nanc i al s t at em en t s a n d n ot t o p r ovide a s s ura nc e o n t he i ntern a l c o nt rol o ver f i na nc i al r e p ort i n g . Our consideration of the internal co n t ro l o ver f i na n c i al r e p ort ing woul d n ot n e c e s s a ri ly di sc l ose al l m atters i n t h e i nte r n al c o n tro l over f i nancia l re p ort i n g t h at m igh t be m aterial weaknesses. A material we a k ne s s i s a co n dition i n w hich t he de s i gn o r o perat ion of o ne o r m ore o f t h e i nte r n a l co n t ro l co m pon e n t s do e s n o t r e d u c e t o a r e l ati v el y l o w level the risk that misstatements in a m ou n t s t hat w o u l d b e m ate r i al i n r e l ation t o t he f i na nc i al s t at em en t s b e i ng a ud i ted m ay o c c u r a nd n ot b e d e t ec t ed w ithin a timely p e r i od b y employees in the normal course of pe rf orming thei r as s i gned f u nc t ions . W e n oted n o m atters invo lv i n g t h e i nte r n a l c o n tro l o v er f i nancia l r e p o rt i n g a n d i t s oper a t i o n that we consider to be material we a k ne s s e s. Howe ve r, we no ted o t he r m atters i nvo l vi ng i ntern a l c o nt rol ov e r fi na nc i al r e p ort ing t hat w e h ave re po rt ed t o m ana g e me n t o f t he City of Bozeman, in a separate letter da t ed D e ce m ber 1 5 , 2 0 04 . Th is re p o r t i s i nte n d ed s o le l y f o r t h e i nfo rm at i o n a n d use of t h e C ity o f Boze m an ’ s m ana g e m ent , B oard o f C ommiss i on e rs , t he M ontana D e partment of Administration, and fe d era l a w a r d ing a g en ci e s a n d pass - t hro u gh e n ti t i e s a n d i s not i nte n d ed t o b e a n d s h o uld not be used by an yo n e other t han t h es e s p e c i fi e d pa r t i e s . Bo z e m an , M o n t a n a De c e m be r 1 5 , 20 0 4 138 IN D E P E N DENT A U D I T OR’ S R E P O R T O N C O M PL I A N C E W ITH R E Q U I RE M E N T S AP P L I C A B L E T O E A C H MA J O R P R O G R A M AN D I N T E R N A L C O N T R O L OV E R C OMPL I A N C E I N A C C O R DANCE W I T H OM B C I R C UL A R A - 1 3 3 Ho n o r a b l e M a y or, C i t y C o mm i s s i o n e r s , a n d C i t y M a n age r o f t h e Ci t y of B o z e m a n , M o n t a n a : Co mpli a n c e We h a v e au d i t e d t h e c o mpli a n c e o f t h e Ci t y o f B o z e m a n w i t h t h e t y pe s o f c o m pli a n ce r equ i r e ment s d e sc r i b e d i n t h e U . S . O f f i ce of Management and Budget (O M B ) C i r c u l a r A - 1 3 3 C o m pli a n ce S u p p l e m en t t h a t ar e a p p l i c a b l e t o it s ma j o r f e d e r a l p r o g r a m f o r t h e y ea r e n d e d J u ne 3 0 , 2 0 0 4. The City of Bozeman’s ma j o r f e d e r a l p r o g r a m i s i den t i f i e d i n t h e s u mm a r y o f a u d i t o r ’s re s u l t s s e c t i o n o f t h e a c c o mpan y ing s c h e d u l e o f f i n d i n g s a n d q u estioned costs. Compliance wi t h t h e r e q u i r e m en t o f l a w s , r e g u l a t i o n s , c o n t r a c t s a n d g r a n t s ap p l i c a b l e t o t h e m ajo r f e d e r a l p r o g r a m i s t h e r e s p o n s i b i l i t y of the City of Bozeman’s ma n a g e m e n t . O u r r e s p o n s i b i l i t y i s t o e x p r e s s a n o p i n i on o n th e C i t y o f B o z e m a n ’ s c o m pli a n c e b a s e d o n o u r a u d i t . We c o n d u c t e d o u r a u d i t o f c o mpli a n c e in a c c o rd a n c e w i t h a u d i t i n g s t a n d a r d s g e n e r a l l y ac c e p t e d i n t h e Un i t e d S t a t e s o f A m e r i c a ; the standards applicable to fi n a n c i a l a u d i t s c o n t a i n e d i n Go v e r n m e n t A u d i t i n g S t an d a r d s , i s s u e d b y t h e C o m ptr o l l e r G e n e r a l o f t h e U n i t e d S t a t e s ; a n d O M B C i r c u l a r A - 1 33, Audits of St a t e s , L o c a l G o v e r n m e n t s , a n d N o n - P rof i t O r g a n i z a t i o n s . T h os e s t a n d a r d s a n d O M B C i r c u l a r A - 1 3 3 r e q u i r e th a t w e p l a n a n d p e r f o r m the audit to obtain re a s o n a b l e a s s u r a n c e a b o u t w h e t h e r n o n c o mpl i a nc e wi t h t h e t y p e s o f c o mpli a n c e r e q u i r e m e nt s r e f e r r e d t o a b o v e t h a t co u l d h a v e a direct and material effect on a majo r f e d e r a l p r o g r a m o c c u r r e d . A n a u d i t i n c l u des e x a m in i n g , on a t e s t b a s i s , e v i d e n c e a b o u t th e C i t y o f Bo z e m a n ’ s c o m pli a n c e with those requirements and pe r f o r m in g such o t h e r p r o c e d u r e s as w e c o n s i d e r e d n ec e s sa r y i n t h e c i r cumst a n ces . W e b e l i eve t h a t o u r a u di t p r o v i d e s a r e a son a ble basis for our opinion. Our au d i t d o e s n o t p r o v i de a l e g a l d e t e r m in a t i o n o f t he C i t y o f B o z e m a n’s c o m pli a n c e w i t h t h o s e r e q u i r e ment s . In o u r o p in i o n, t h e C i t y o f B o z e m an c o m pli e d , i n a l l m a t e r i a l re s p ec t s , w i t h t h e r e q u i r e m e n t s r e f e r r e d t o a b o v e t hat a r e a p p l i c ab l e t o its major federal program fo r t h e yea r e n d e d J u n e 3 0, 2 0 0 4. 139 In t e r n a l C o n t r o l Th e m a n a g e m e n t o f t h e C i t y o f B o z e m a n i s r e s p o n s i b l e f o r e s t a b li s h i n g a n d m a i n t a i n i n g e f f e c t i v e i n t e r n a l c o n t r o l o v e r c o m p l i a n c e with requirements of laws, re g u l a t i o n s , c o n t r a c t s a n d g r a n t s a p p l i c a b l e to f e d e r a l p r o g r a m s . I n p l a n n i n g a n d p e rf o r m i n g o u r a u d i t , w e c o n s i d e r e d t h e C i t y of Bozeman’s internal control ov e r c o m p l i a n c e w i t h r e q u i r e m e n t s t h a t c o u l d ha v e a d i r e c t a n d m a t e r i a l e f f e c t o n a m a jo r f e d e r a l p r o g r a m i n o r d e r t o d e t e r m i n e our auditing procedures for the pu r p o s e o f e x p r e s s i n g o u r o p i n i o n o n c o m p l i a n c e a n d t o t e s t a n d r e p o r t o n i n t e r n a l c o n t r o l o v e r c o m p l i a n c e i n a c c o r d a n c e w i t h O MB Circular A-133. Ou r c o n s i d e r a t i o n o f t h e i n t e r n a l c o n t r o l o v e r c o m p l i a n c e w o u l d n o t n e c e s s a r i l y d i s c l o s e a l l m a t t e r s i n t h e i n t e r n a l c o n t r o l t h at m i g h t b e m a t e r i a l w e a k n e s s e s . A m a t e r i a l w e a k n e s s i s a c o n d i t i o n i n w h i c h t h e d e s i g n o r o p e r a t i on o f o n e o r m o r e o f t h e i n t e r n a l c o n t r o l c o m p o n e n t s d o e s n o t reduce to a relatively low level th e r i s k t h a t n o n c o m p l i a n c e w i t h a p p l i c a b l e r e q u i r e m e n t s o f l a w s , r e g u l a t i o n s , c o n t r a c t s an d g r a n t s t h a t w o u l d b e m a t e r i a l i n r el a t i o n t o a m a j o r f e d e r a l p r o g r a m be i n g a u d i t e d m a y o c c u r a n d n o t b e d e t e c t ed w i t h i n a t i m e l y p e r i o d b y e m p l o y e e s i n th e n o r m a l c o u r s e o f p e r f o r m i n g t h e i r a s s i g n ed functions. We noted no ma t t e r s i n v o l v i n g t h e i n t e r n a l c o n t r o l o v e r c o m p l i a n c e a n d i t s op e r a t i o n t h a t w e c o n s i d e r t o b e m a t e r i a l w e a k n e s s e s . Th i s r e p o r t i s i n t e n d e d s o l e l y f o r t h e i n f o r m a t i o n a n d u s e o f t h e C i t y o f B o z e m a n ’ s m a n a g e m e n t , B o a r d o f C o m m i s s i o n e r s , t h e M o n tana Department of Ad m i n i s t r a t i o n , a n d f e d e r a l a w a r d i n g a g e n c i e s a n d p a s s - t h r o u g h e n t i t i e s an d i s n o t i n t e n d e d t o b e a n d s h o u l d n o t b e u s e d b y a n y o n e o t h e r t h a n t h e s e s p e c i f i e d pa r t i e s . Bo z e m a n , M o n t a n a De c e m b e r 1 5 , 2 0 0 4 140 CI T Y O F B O Z E M A N , M O N T A N A SC H E D U L E O F F I N D I N G S A N D Q U E S T I O N E D C O S T S Ye a r E n d e d J u n e 3 0 , 2 0 0 4 SU M M A R Y O F A U D I T R E S U L T S Th e a u d i t o r ’ s r e p o r t e x p r e s s e s a n u n q u a l i f i e d o p i n i o n o n t h e f i n a n c i a l s t a t e m e n t s . No r e p o r t a b l e c o n d i t i o n s d i s c l o s e d d u r i n g t h e a u d i t o f t h e f i n a nc i a l s t a t e m e n t s a r e r e p o r t e d i n t h e r e p o r t o n c o m p l i a n c e a n d o n internal control over fi n a n c i a l r e p o r t i n g b a s e d o n a n a u d i t o f f i n a n c i a l s t a t e m e n t s p e r f o r m e d i n a c c o r d a n c e w i t h G ov e r n m e n t A u d i t i n g S t a n d a r d s . No i n s t a n c e s o f n o n c o m p l i a n c e m a t e r i a l t o t h e f i n a n c i a l s t a t e m e n ts o f t h e C i t y o f B o z e m a n w e r e d i s c l o s e d d u r i n g t h e a u d i t . No r e p o r t a b l e c o n d i t i o n s r e l a t i n g t o t h e a u d it o f t h e m a j o r f e d e r a l a w a r d s p r o g r a m a r e r e p o r t e d i n t h e r e p o r t o n c o m p l i a n c e w i t h requirements ap p l i c a b l e t o i t s m a j o r p r o g r a m a n d i n t e r n a l c o n t r o l ov e r c o m p l i a n c e i n a c c o r d a n c e w i t h O M B C i r c u l a r A - 1 3 3 . Th e a u d i t o r ’ s r e p o r t o n c o m p l i a n c e f o r t h e m a j o r f e d e r a l a w a r d s p r og r a m f o r t h e C i t y o f B o z e m a n e x p r e s s e s a n u n q u a l i f i e d o p i n i o n on the major pr o g r a m . Th e a u d i t d i d n o t d i s c l o s e a n y a u d i t f i n d i n g s w h i c h t h e a ud i t o r i s r e q u i r e d t o r e p o r t u n d e r O M B C i r c u l a r A - 1 3 3 . Th e m a j o r p r o g r a m i s t h e E n v i r o n m e n t a l P r o t e c t i o n A g e n c y W a s t e w at e r F a c i l i t i e s P r o j e c t . T h e C F D A n u m b e r a s s i g n e d t o t h i s p r o g r a m is 66.418. Th e t h r e s h o l d f o r d i s t i n g u i s h i n g T y p e s A a n d B p r o g r a m s w a s $ 3 0 0 , 0 0 0 . Th e C i t y o f B o z e m a n w a s d e t e r m i n ed t o b e a l o w - r i s k a u d i t e e . FI N D I N G S A N D Q U E S T I O N E D C O S T S - M A J O R F E D E R A L A W A R D P R O G R A M A U D I T No n e r e p o r t e d . FI N D I N G S A N D R E P O R T A B L E C O N D I T I O N S - F I N A N C I A L S T A T E M E N T S A U D I T 20 0 4 - 1 Cr i t e r i a : M C A S e c t i o n 7 - 6 - 4 0 3 3 Co n d i t i o n : A s d i s c l o s e d i n N o t e 1 i n t h e n o t e s t o t h e f i n a n c i a l s t a t e m e n ts , e x p e n d i t u r e s e x c e e d a p p r o p r i a t i o n s a t t h e f u n d t y p e l e v e l . T h e C i t y ’ s b u d g e t is a p p r o v e d a t t h e f u n d t y p e l e v e l . Ef f e c t : T h e C i t y i s n o t i n c o m p l i a n c e w i t h S t a t e L a w s , d u e t o e x p e n d it u r e s i n e x c e s s o f a p p r o p r i a t i o n s i n b o t h t h e g e n e r a l f u n d a n d i n the debt service fu n d s . Re c o m m e n d a t i o n : T h e C i t y s h o u l d c l o s e l y m o n i t o r t h e b u d g e t t h r o u g h o u t t h e y ea r a n d p r o p o s e b u d g e t a m e n d m e n t s , a s n e c e s s a r y , t o t h e C i t y Co m m i s s i o n . 141 CI T Y O F B O Z E M A N , M O N T A N A CU R R E N T S T A T U S O F P R I O R Y E A R R E C O M M E N D A T I O N S Ye a r E n d e d J u n e 3 0 , 2 0 0 4 Th e r e w e r e n o f i n d i n g s , q u e s t i o n e d c o s t s , o r r e p o r ta b l e c o n d i t i o n s f o r t h e y e a r e n d e d J u n e 3 0 , 2 0 0 3 . An d e r s o n Z u r M u e h l e n & C o m p a ny, P . C . Ce r t i f i e d P u b l i c A cco u n ta n t s an d B u s i n e s s C o n s ul t a n t s