Document Butte_doc_2f5d84abe3

City and County Of Butte-Silver Bow, State of Montana Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 2012 ---PAGE BREAK--- City and County of Butte-Silver Bow, State of Montana Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 2012 Prepared by: Office of Finance and Budget Administration ---PAGE BREAK--- ---PAGE BREAK--- City and County of Butte-Silver Bow Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2012 TABLE OF CONTENTS Page I. INTRODUCTORY SECTION Letter of 1 Government Finance Officers Association Certificate of Achievement……………………………… 6 Organizational 7 List of Elected Officials and Department 8 II. FINANCIAL SECTION Independent Auditor's 9 Management's Discussion and 11 Basic Financial Statements: Government-wide Financial Statements: Statement of Net 24 Statement of 25 Financial Statements: Balances Sheet - Governmental 28 Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net 29 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental-wide Statement of Activities…………...…………… 31 General Fund 32 Ramsay 34 Statement of Net Assets - Proprietary 36 Statement of Revenues, Expenses and Changes in in Fund Net Assets - Proprietary 39 Statement of Cash Flows - Proprietary 40 Statement of Fiduciary Net Assets - Fiduciary 43 Statement of Changes in Fiduciary Net Assets - Investment Trust 44 Notes to the Basic Financial 45 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental 83 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental 84 Combining Balance Sheet - Nonmajor Special Revenue 85 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue 91 Schedules of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual Combined Special Improvement 97 Divide 98 Melrose 99 SID #1025 Blacktail Loop 100 101 102 Noxious 103 Parking 104 iii ---PAGE BREAK--- Page District Court 105 Civic Center Bond 106 107 108 Public 109 Economic Development 1 Mill 110 Economic Development 111 112 113 Senior 114 Developmentally 115 Damages and 116 117 Comprehensive 118 Crime 119 Land 120 Junk 121 Arco Planning Grant Silver Bow Creek Greenway 122 Super Water Quality 123 124 Uptown 125 Reclamation 126 Urban Revitalization Agency Economic Development………………………………………… 127 Community 128 Hard Rock Mine Trust 129 Community Development Block Grant Projects 130 MT Pole Institutional 131 911 Emergency 132 Community Transportation Enhancement Program 133 Department of Natural Resource & Conservation 134 Local Law Enforcement Block 135 Clark Tailings Operations & Maintenance 136 PIT Watch ED 137 Arco Historic Preservation 138 East Butte 139 County Land 140 Department of Justice 141 Montana Historical Preservation 142 Superfund Health Studies 143 ARCO Superfund Land Management/GIS 144 Anaconda-ARCO Community 145 ARCO Lead 146 Superfund Residential Metals 147 Natural Resource Damages Program Greenway Projects 148 East Butte RRA Revolving Loan 149 ARCO Redevelopment Trust 150 ARCO Superfund Stormwater Capital Improvement 151 MT Dept of Commerce NSP3 152 Combining Balance Sheet - Nonmajor Debt Service 153 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Debt Service 154 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Tax Increment Bond 155 SID Revolving 156 Civic Center Bond Issue 157 LEA Detention Center & Administration Project 158 Ladder Truck Bond 159 Archives 160 iv ---PAGE BREAK--- Page GO Bonds 161 ASiMi Bond 162 Combining Balance Sheet - Nonmajor Capital Projects 163 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Capital Projects 164 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Capital Improvements 165 Hard Rock Mine Capital Trust 166 Highway Abandonment 167 Emergency Operation 168 Archives Building Project 169 Civic Center Renovation 170 Junk Vehicle Capital 171 TIFID Electrical 172 Waste Waterline Construction 173 Silver Lake Water Distribution System Improvements……………………………………… 174 Combining Statement of Net Assets - Nonmajor Enterprise 175 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Nonmajor Enterprise 176 Combining Statement of Cash Flows - Nonmajor Enterprise 177 Combining Statement of Cash Flows - Nonmajor Proprietary 178 Combining Statement of Net Assets - Internal Services 180 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Internal Service 181 Combining Statement of Cash Flows - Internal Service 182 Combining Statement of Fiduciary Net Assets Trust 185 Combining Statement of Changes in Fiduciary Net Assets - Trust 186 Statement of Changes in Fiduciary Assets and Liabilities.……………………………………. 187 STATISTICAL SECTION 191 Government-wide Net Assets by 192 Chart-Government-wide Net Assets by 193 Changes in Net Assets - Governmental 194 Changes in Net Assets - Governmental Activities - Percentage of 195 Changes in Net Assets - Business-type 196 Changes in Net Assets - Business-type Activities - Percentage of 197 Changes in Net Assets - 198 Tax Revenues by Source - Governmental 199 Chart-Tax Revenues by Source - Governmental 200 Fund Balances - Governmental 201 General Governmental Revenues by Source 202 General Governmental Expenditures by Function 203 General Governmental Current Expenditures by Function (Unaudited)…………………………… 204 Changes in Fund Balances - Governmental 205 Chart-Changes in Fund Balances - Governmental 206 Assessed Market 207 Direct and Overlapping Property Tax 208 Principal Property 209 Property Tax Levies and 210 Ratios of Total Debt Oustanding by 211 Ratio of General Bonded Debt 212 Governmental Activities Direct and Overlapping 213 Legal Debt 214 Schedule of Revenue Bond 215 Demographic and Economic 216 Top Twenty Private 217 Full-time Equivalent Employees by 218 Operating Indicators by 219 Capital Asset and Infastructure Statistics by Function/Program…………………………………… 220 v ---PAGE BREAK--- ---PAGE BREAK--- 1 January 11, 2013 To the Honorable Chief Executive, Members of the Council of Commissioners, and the Citizens of the City and County of Butte-Silver Bow: State law requires that all general-purpose local governments publish a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the Butte-Silver Bow Government for the fiscal year ended June 30, 2012. This report consists of management’s representations concerning the finances of the Butte-Silver Bow Government. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the Butte-Silver Bow Government has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Butte-Silver Bow Government’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Butte-Silver Bow Government’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material aspects. The Butte-Silver Bow Government’s financial statements have been audited by Newland & Co., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Butte-Silver Bow Government for the fiscal year ended June 30, 2012, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Butte-Silver Bow Government’s financial statements for the fiscal year ended June 30, 2012, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Butte-Silver Bow Government was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls Office of Finance and Budget Administration Butte-Silver Bow Courthouse Butte, Montana 59701 (406) 497-6320 ---PAGE BREAK--- 2 and legal requirements involving the administration of federal awards. These reports are available in the Butte-Silver Bow Government’s separately issued Single Audit Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Butte-Silver Bow Government’s MD&A can be found immediately following the report of the independent auditors. Profile of the Government The City-County of Butte-Silver Bow is located in southwestern Montana atop the Continental Divide at an elevation of 5,530 feet above sea level. Butte is the county seat of Silver Bow County, the smallest in area of Montana’s 56 counties. In 2010, it ranked eighth in total population and second in population density, with 48 persons per square mile. Butte-Silver Bow encompasses 718 square miles and has a population of 34,600 as estimated by the U.S. Bureau of the Census. Butte was incorporated on April 7, 1879. In November 1976, the voters of Silver Bow County inclusive of the voters of Butte, but excluding the Town of Walkerville, approved a new charter for a consolidated City-County form of government. The charter became effective May 2, 1977. It provides for a Chief Executive Officer and a twelve member Council of Commissioners. The Chief Executive is elected at large for a four-year term and is responsible for carrying out Council policies and administering the offices of the local government. One of the chief duties of the Chief Executive is to recommend the preliminary annual operating budget to the Council of Commissioners for their approval. In addition to the Chief Executive, the executive branch of Butte-Silver Bow is comprised of all other elected officials with the exception of the Council of Commissioners. Butte-Silver Bow is divided into twelve districts with one commissioner elected from each district for a four-year term. The terms of the commissioners are staggered with at least 6 commission seats elected every two years. The twelve commissioners constitute the Legislative Branch of Butte-Silver Bow. Basic services provided by Butte-Silver Bow include police and fire protection, water and metro sewer treatment and maintenance, solid waste disposal, building and code enforcement, zoning enforcement, construction and maintenance of roads and streets and other infrastructure, recreational activities, and cultural events. Water, sewer and solid waste services are provided through separate departments of the City-County and therefore are included as integral parts of the City-County’s financial statements. All departments of Butte-Silver Bow are required to submit a preliminary annual operating budget request to the Chief Executive by the end of March of each year. The Chief Executive recommends an Executive Budget to the Council by the first week in July and the Council adopts the preliminary operating budget by the middle of August. At that time, the Council also schedules a public hearing on the preliminary operating budget. Once initiated, the public hearing may be continued from day to day but must be concluded and the budget finally approved and adopted by resolution by the later of the first Thursday in August or within 30 calendar days of receiving certified taxable values from the State department of revenue. The appropriated budget is prepared by fund, function and department. Budgetary control is maintained with the encumbrance of approved estimated purchase amounts prior to release to vendors. All unexpended appropriations lapse at fiscal year end, however, encumbrances are generally re- ---PAGE BREAK--- 3 appropriated as part of the following year’s budget. The legal level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is the fund level. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriation has been made. For the general fund and the major special revenue fund, this comparison is presented on pages 32-34. For governmental funds other than the general fund and the major special revenue fund, this comparison is presented in the governmental fund subsection of this report, which starts on page 97. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Butte-Silver Bow Government operates. Local economy The Butte-Silver Bow economy has historically been based on mining and mineral extraction and the industries spawned by these activities. However, the economy has diversified over the years and in the past few years has experienced some significant changes. In downtown Butte, Walgreens and AutoZone completed construction of new buildings and both are open for business. Holiday Inn Express recently began construction of a new motel complex just off Harrison Avenue. NorthWestern Energy, a leading energy delivery company, continues to play a vital role as a major employer with approximately 500 employees in the Butte area. Montana Resources (MR) operates a successful open pit copper and molybdenum mine in Butte. The mine currently employs over 300 people and has maintained a strong operation despite recent declines in the market for both copper and molybdenum. MR serves an international market for these metals. St. James Healthcare serves as a regional medical center for southwestern Montana and recently completed a multi-year, multi-million dollar renovation that transformed the hospital into a modern, state-of-the-art healthcare facility. With approximately 500 employees, St. James Healthcare continues to be one of the largest private employers in Butte-Silver Bow. The realty sector of the community reports the Butte real estate market is maintaining a strong and steady pace despite a significant drop in the national market. Located on the Butte hill, Montana Tech has earned a reputation as one of the finest science, engineering, and technical colleges in the world. Students focus on education and research in minerals, energy engineering, natural science, the environment, technology, nursing, liberal studies, technical communication, and business-economic development. Placement rates for Tech graduates have averaged 97% for the past five years. Since it’s founding in 1900, Montana Tech has been a key pillar of the community. Butte-Silver Bow serves as the regional trade center for southwestern Montana and is unique from a transportation infrastructure standpoint in that it is the only location in the state that is at the intersection of the interstate highway system (I-90 and I-15) and is the only area in the state that is served by two railroads, the Union Pacific and Burlington Northern & Santa Fe. ---PAGE BREAK--- 4 Long term financial planning The construction and maintenance of the community’s infrastructure and the provision of essential governmental services necessary to provide a favorable business environment are both short-term and long-term goals of the local government. Butte-Silver Bow also aggressively pursues economic development opportunities using a wide variety of tools and incentives making our community an attractive place in which to conduct business. In the past several years, the government has established several tax increment districts, both commercial and industrial to provide a financing vehicle to construct public infrastructure, beneficial for commercial and industrial projects. Butte-Silver Bow is continually in negotiations with prospective companies regarding plant locations in the community. In the Port of Montana Business Development District, BSB partnered with REC Silicon to complete a major transformer upgrade to insure stability and redundancy in power supply. The District also completed a $7 million waste water line that will greatly benefit all the commercial enterprises located in the district. The District assisted the Port of Montana with an expansion project that included new weigh scales. In uptown Butte, the URA (Urban Revitalization Agency) has partnered with several businesses to enhance and renovate historic buildings through a combination of grants and loans. Current renovations are underway at the Hirbour Building and plans have been announced for the construction of a two million dollar neighborhood center in Emma Park. Renovation/rehabilitation projects were recently completed at the historic M&M Cigar Store, the Schumacher Building (Headframe Spirits), the Capri Motel, and the Demolay Building. Another major undertaking was the construction of a permanent stage and rest room facility at the historic Original mine yard. The URA also provided funding to assist the construction of 20 housing units in central Butte. Additionally, the sidewalk replacement program in the URA continues through partnerships with private property owners. The East Butte Renovation and Rehabilitation Agency (RRA) experienced yet another year of continued growth. Water and Environmental Technologies, Inc. (WET), a cornerstone business in the RRA, completed expansion plans that included construction of two new buildings to house WET and Kevin Stenson, Physical Therapy. A local brewery has begun construction on a new facility that also includes professional office space. Additional buildings were granted funds for infrastructure rehabilitation. Maintenance and expansion of the community’s general infrastructure also remains a significant focal point for the government. Major projects are accomplished on a continual basis to upgrade and improve the community’s water system and sanitary and storm sewer systems. Cash management policies and practices Cash temporarily idle during the year was invested in time deposits ranging from 30 to 180 days to maturity, overnight repurchase agreements, obligations of the US Treasury, and the State of Montana’s local government investment pool. All investments are required to meet the 50% collateral rule provided by Montana law. The maturities of the investments generally range from 30 days or less to 5 years. Interest earnings for 2012 exceeded $180,155 and the average yield on the majority of investments for the fiscal year was .83%. Investment income includes the fair value of investments. ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- 7 ---PAGE BREAK--- City and County of Butte-Silver Bow City and County Officials June 30, 2012 Title Name Chief Executive Paul David Babb Council of Commissioners Council Chairman-District No.12 Dave Palmer Council Member-District No. 1 Glen Granger Council Member-District No. 2 Sheryl Ralph Council Member-District No.3 John P. Morgan Council Member-District No.4 Terry L. Schultz Council Member-District No.5 Dennis Henderson Council Member-District No.6 Wally Frasz Council Member-District No.7 Bud Walker Council Member-District No.8 Ristene Hall Council Member-District No.9 Dan Foley Council Member-District No.10 Bill Andersen Council Member-District No.11 Cindi Shaw Department Staff Finance & Budget Director Jeff Amerman Human Resource Director Lindsey Moe Planning Director/Superfund Coord. Jon Sesso Civic Center Manager Bill Melvin Fire Coordinator Jeffery Miller Public Works Director Dan Dennehy Health Director Theresa Hocking URA/Community Develop. Director Karen Byrnes Management Information Director Linda Sajor-Joyce Elected Officials County Attorney Eileen Joyce Treasurer Patrick Callaghan Sheriff John Walsh Clerk & Recorder Sally Hollis Clerk of Courts Lori Maloney Auditor Danette Harrington Superintendent of Schools Cathy F Maloney Coroner Lee LaBreche Public Administrator Jeanne Joki Tanner Assessor Dan Fisher 8 ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 11 MANAGEMENT’S DISCUSSION AND ANALYSIS Within this section of the City and County of Butte-Silver Bow, Montana’s (the City and County) comprehensive annual financial report, the City and County’s management is pleased to provide this narrative discussion and analysis of the financial activities of the City and County for the fiscal year ended June 30, 2012. We discuss and analyze the City and County’s financial performance within the context of the accompanying financial statements and disclosures following this section. Financial Highlights • The City and County’s assets exceeded its liabilities by $202,552,077 (net assets) for the fiscal year reported. • Total net assets are comprised of the following: Capital assets, net of related debt, is $132,588,257 which includes property and equipment, net of accumulated depreciation, and reduced for outstanding debt related to the purchase or construction of these capital assets. Net assets of $52,095,580 are restricted by constraints imposed from outside the City and County such as debt covenants, grantors, laws, or regulations. Unrestricted net assets of $17,868,240 represent the portion available to maintain the City and County’s continuing obligations to citizens and creditors. • The City and County’s governmental funds reported total ending fund balance of $55,207,333 this year. This compares to the prior year restated ending fund balance of $52,327,895 showing an increase of $2,879,438 during the current fiscal year. Unassigned fund balance of $3,984,376 at June 30, 2012 shows a $457,850 increase from the prior year. • At the end of the current fiscal year, unassigned fund balance for the general fund was $4,473,581, or 19.4% of total general fund expenditures in fiscal year 2012. The percentage at June 30, 2011 was 21.8%, for a slight increase. • Overall, the City and County continues to maintain a strong financial position, in spite of a somewhat depressed, although recovering economy. The above financial highlights are explained in more detail in the “financial analysis” section of this document. Overview of the Financial Statements This Management Discussion and Analysis document introduces the City and County’s basic financial statements. The basic financial statements include: government-wide financial statements, fund financial statements, and notes to the basic financial statements. The City and County also includes in this report additional information to supplement the basic financial statements. Government-wide Financial Statements The City and County’s annual report includes two government-wide financial statements. These statements provide both long-term and short-term information about the City and County's overall financial status. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in accrual accounting and elimination or reclassification of activities between funds. The first of these government-wide statements is the Statement of Net Assets. This is the government-wide statement of position presenting information that includes all of the City and County’s assets and liabilities, with the difference reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City and County as a whole is improving or deteriorating. Evaluation of the overall health of the City and County would extend to other nonfinancial factors such as diversification of the taxpayer base or the condition of City and County infrastructure, in addition to the financial information provided in this report. ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 12 The second government-wide statement is the Statement of Activities, which reports how the City and County’s net assets changed during the current fiscal year. All current year revenues and expenses are included regardless of when we receive or pay out cash. An important purpose of the design of the statement of activities is to show the financial reliance of the City and County's distinct activities or functions on revenues provided by the City and County's taxpayers. Both government-wide financial statements distinguish governmental activities of the City and County that are principally supported by property taxes and from business-type activities that are intended to recover all or a significant portion of their costs through user fees and charges. Governmental activities include general government, public safety, public works, public health, social and economic services, housing and community development and culture and recreation. Business-type activities primarily include the water, sewer and solid waste. The internal service funds are reported with governmental activities at the government-wide financial reporting level. The government-wide financial statements include one discretely presented component unit, the Port of Montana Port Authority. This Authority issued separate financial statements and a copy is available from the City and County. The government-wide financial statements are presented on pages 24 & 25 of this report. Fund Financial Statements A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The City and County uses funds to ensure and demonstrate compliance with finance-related laws and regulations. Within the basic financial statements, fund financial statements focus on the City and County’s most significant funds rather than the City and County as a whole. Major funds are separately reported while all others are combined into a single, aggregated presentation. Individual fund data for nonmajor funds is provided in the form of combining statements in a later section of this report. The City and County has three kinds of funds: Governmental funds are reported in the fund financial statements and encompass the same functions reported as governmental activities in the government-wide financial statements. However, the focus is very different with fund statements providing a distinctive view of the City and County’s governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the near-term. Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of short-term financing decisions. Both the governmental fund balance sheet and the governmental fund operating statement provide a reconciliation to assist in understanding the differences between these two perspectives. The budgetary comparison statements are included as “basic financial information” for the general fund and one major special revenue fund, the Ramsey TIFID Fund. The basic governmental fund financial statements are presented on pages 28-31of this report. Individual fund information for nonmajor governmental funds is found in combining statements in a later section of this report. ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 13 Proprietary funds are reported in the fund financial statements and generally report services for which the City and County charges customers a fee. The City and County proprietary funds are classified as enterprise funds and internal service funds. These enterprise funds essentially encompass the same functions reported as business-type activities in the government-wide statements. Services are provided to customers external to the City and County for a variety of services, primarily utility services. The basic enterprise fund financial statements are presented on pages 39-41of this report. Fiduciary funds are classified as Agency Funds and Investment Trust Funds. These funds are reported on pages 43-44 of this report. Notes to the Basic Financial Statements The accompanying notes to the basic financial statements provide information essential to a full understanding of the government-wide and fund financial statements. The notes to the basic financial statements begin on page 45 of this report. Supplementary Information In addition to the basic financial statements and accompanying notes, this report also presents certain supplementary information concerning the City and County's budget presentations. Budgetary comparison schedules for the nonmajor special revenues funds and the other governmental funds can be found in the supplementary section of this report. These schedules demonstrate compliance with the City and County’s adopted and final revised budget. In addition, combining statements and schedules for nonmajor funds, including budgetary schedules, are presented in this section of this report beginning on page 75. (This page continued on the subsequent page) ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 14 Financial Analysis of the City and County as a Whole The City and County’s net assets at fiscal year-end are $202,552,077. The following table provides a summary of the City and County’s net assets comparing June 30, 2012 with June 30, 2011: 2012 2011 2012 2011 2012 2011 2012 2011 Assets: Current assets 62,232 $ 59,326 $ 14,766 $ 15,699 $ 76,998 $ 75,025 $ 30% 32% Non-current assets 93,043 83,987 86,126 75,525 179,169 159,512 70% 68% Total assets 155,275 143,313 100,892 91,224 256,167 234,537 100% 100% Liabilities: Current liabilities 10,156 9,727 4,611 4,876 14,767 14,603 28% 28% Long-term liabilities 33,890 31,917 4,957 4,729 38,847 36,646 72% 72% Total liabilities 44,046 41,644 9,568 9,605 53,614 51,249 100% 100% Net assets: Invested in capital assets, net of debt 57,219 50,401 75,369 65,748 132,588 116,149 65% 63% Restricted 50,345 48,009 1,751 1,887 52,096 49,896 26% 27% Unrestricted 3,665 3,259 14,203 13,984 17,868 17,244 9% 10% Total net assets 111,229 $ 101,669 $ 91,323 $ 81,619 $ 202,552 $ 183,289 $ 100% 100% Summary of Net Assets (dollars in thousands) Governmental Activities Business-Type Activities Total % of Total The City and County continues to maintain a high current ratio. The current ratio compares current assets to current liabilities and is an indication of the ability to pay current obligations. The current ratio for governmental activities is 6.1 to 1 (as compared to 6.1 to 1 at June 30, 2011) and 3.2to 1 (as compared to 3.3 to 1 at June 30, 2011) for business type activities. For the City and County overall, the current ratio is 5.3 to 1 (as compared to 5.1 to 1 at June 30, 2011). These ratios are strong. The classification of assets and liabilities between current and non-current as a percentage, is very similar in both years presented. The City and County reported positive balances in total net assets for both governmental and business-type activities. Net assets for governmental activities increased $9,559,169 in this fiscal year as compared to a $5,003,767 increase in fiscal year 2011. Net assets increased $9,703,969 in fiscal year 2012 as compared to an increase of $7,714,837 for business-type activities in fiscal year 2011. The City and County's overall financial position improved during fiscal year 2012 by $19,263,138. Note that approximately 51.4% of the governmental activities’ total assets are tied up in capital as compared to 58.4% at June 30, 2011. The City and County uses these capital assets to provide services to its citizens. However, with business type activities, the City and County has spent approximately 82.5% of its total assets and 65.5% of its total net assets on capital. Capital assets in the business-type activities provide utility services, and they generate revenues for these funds. The following table provides a summary of the City and County’s changes in net assets: ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 15 The following chart reports the total net asset balances from fiscal year 2003 - 2012. $74,526,219 $82,863,923 $89,092,644 $99,138,998 $147,841,932 $155,541,003 $162,538,854 $170,570,314 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 Total Net Assets Note that over the last eight years, total net assets continue to increase, which is a positive financial indicator. The large increase in fiscal 2007 relates to the addition of infrastructure retroactively. (This page continued on the subsequent page) ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 16 The following table presents the details of the changes in net assets for fiscal years 2012 and 2011. 2012 2011 2012 2011 2012 2011 Revenues: Program: Charges for services & fines 7,138 $ 6,858 $ 15,997 $ 13,302 $ 23,135 $ 20,160 $ Operating grants 17,847 14,512 - - 17,847 14,512 Capital grants 4,182 4,678 8,329 8,679 12,511 13,357 General: Taxes 28,821 27,763 - - 28,821 27,763 Investment earnings 342 355 39 43 381 398 Other 961 1,600 752 736 1,713 2,336 Total revenues 59,291 55,766 25,117 22,760 84,408 78,526 Program expenses: General government 12,902 13,176 - - 12,902 13,176 Public safety 14,977 14,411 - - 14,977 14,411 Public works 7,346 6,711 - - 7,346 6,711 Public health 4,103 4,292 - - 4,103 4,292 Social and economic services 268 248 - - 268 248 Culture and recreation 3,481 3,393 - - 3,481 3,393 Housing and community development 5,299 7,180 - - 5,299 7,180 Interest 1,602 1,598 - - 1,602 1,598 Water Utility Division - - 7,894 7,763 7,894 7,763 Metro Sewer Operations - - 3,854 3,687 3,854 3,687 Solid Waste - - 2,353 2,170 2,353 2,170 Other enterprise activities - - 1,066 1,179 1,066 1,179 Total expenses 49,978 51,009 15,167 14,799 65,145 65,808 Excess (deficiency) 9,313 4,757 9,950 7,961 19,263 12,718 Transfers 246 246 (246) (246) - - Change in net assets 9,559 5,003 9,704 7,715 19,263 12,718 Beginning net assets 101,670 96,667 81,619 73,904 183,289 170,571 Ending net assets 111,229 $ 101,670 $ 91,323 $ 81,619 $ 202,552 $ 183,289 $ Summary of Changes in Net Assets (in Thousands) Governmental Activities Business-type Activities Total ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 17 GOVERNMENTAL REVENUES The City and County is heavily reliant on property taxes to support governmental operations. Property taxes equal 46.9% of the revenues for governmental activities, as compared to 48% in fiscal year 2011. This increase relates to an increased mill levy. Capital grants for public works included $4,181,110 from superfund remediation funds utilized for storm water structure construction and remediation. The operating grant for public works relates to the community transportation enhancement program ($380,000) and received Montana Department of Transportation grants of ($522,000). Because of the City and County’s healthy financial position, we have been able to earn $342 thousand in investment earnings to support governmental activities. Also, note that program revenues cover 58.4% of governmental operating expenses as compared to 51.6% in fiscal year 2011. The capital grant of $4,181,110 distorts these percentages as the costs related to this grant are capitalized. These are extremely high percentages. This means that the government’s taxpayers and the City and County’s other general revenues fund only 41.6% of the governmental activities in fiscal year 2012. GOVERNMENTAL FUNCTIONAL EXPENSES Public safety costs comprise 30.2% of the total governmental expenses, as compared to 28.5% in fiscal year 2011. These public safety costs increased 3.9% or by $566,635 at the government-wide financial reporting level. General government expenses makes up 26% of the total governmental expenses, as compared to 26.1% in fiscal year 2011. Public works is the third largest costly function, totaling over $7.3 million or 14.8% of total expenses, as compared to 13.3% in fiscal year 2011. The following table presents the cost of each of the City and County’s functions, including the net costs total cost less revenues generated by the activities). The net costs illustrate the financial burden that was placed on the City and County’s taxpayers by each of these functions. Total Cost Net Cost Total Cost Net Cost of Services of Services of Services of Services General government 12,901,775 $ (584,344) $ 13,176,267 $ 621,136 $ Public safety 14,977,684 11,909,698 14,411,049 11,546,575 Public works 7,345,814 (373,409) 6,711,497 1,354,453 Public health 4,102,699 1,457,858 4,292,094 1,210,461 Social and economic services 267,919 217,335 248,113 212,425 Culture and recreation 3,481,491 2,345,120 3,393,276 2,425,046 Housing and community development 5,299,101 4,236,981 7,180,028 5,993,801 Interest 1,602,014 1,602,014 1,597,707 1,597,707 Total 49,978,498 $ 20,811,254 $ 51,010,030 $ 24,961,603 $ Governmental Activities Fiscal Year 2012 Fiscal Year 2011 As indicated, we finance a large percentage of the City and County’s costs through program revenues. Of the net costs to taxpayers, public safety makes up over 58.2% of the total amount as compared to 46.3% in fiscal year 2011. ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 18 BUSINESS-TYPE ACTIVITIES In total, the enterprise funds reported a $9,703,969 increase in net assets as compared to $7,714,837 in fiscal year 2011. This year the City and County reported a total operating gain of $1,776,592 as compared to an operating loss of $267,610 in fiscal year 2011. Operating revenues are up $2,441,363 from fiscal year 2011 or 17.1%. Operating expenses were $397,161 more than fiscal year 2011, or 2.7%. The explanations for these changes are highlighted in the proprietary fund section below. Financial Analysis of the City and County’s Funds Governmental Funds As discussed, governmental funds are reported in the fund statements with a short-term, inflow and outflow of spendable resources focus. This information is useful in assessing resources available at the end of the year in comparison with upcoming financing requirements. Governmental funds reported ending fund balances of $55,207,333. Of this year-end total, $3,984,376 is unassigned indicating availability for continuing City and County service requirements. Legally restricted fund balances include $5.1 million for economic development, $13.6 million for community development, $4.6 million for debt service, and $3.1 million for capital improvements. The total ending fund balances of governmental funds show an increase of $2,879,438 or 5.5% over the prior year. A large portion of this increase relates to the Ramsey TIFID fund or $4,519,317 offset by a general fund deficiency of $181,900 and the nonmajor funds’ deficiency of $1,457,979. Major Governmental Funds The General Fund - The general fund is the City and County’s primary operating fund and the largest source of day-to-day service delivery. The general fund’s fund balance decreased by $181,900 or just 2.9%. In fiscal year 2011, the fund balance increased by $132,861. The general fund’s ending unassigned fund balance of $4,473,581 is considered adequate, representing the equivalent of 19.4% of annual expenditures. This percentage compares to 21.8% at June 30, 2011. Maintaining an unassigned fund balance in the general fund is necessary in order to provide for cash flow problems and provide resources for unforeseen emergency expenditures. Total revenues increased $1,488,784 or 7% above fiscal year 2011. In fiscal year 2011, total revenues increased 2.5%. Real property tax revenues increased $1,155,288 or 11.7% above the prior year. This increase relates to an increase in the mill levy, required due to increased operation costs in this fiscal year. Fines and forfeitures decreased $53,368 or 11% due to decreased fine collections. Charges for services increased $413,181 or 8.9% over fiscal year 2012. Most other general fund revenues were comparable to fiscal year 2011 amounts. The expenditures side reports an increase of $721,851 or 3.2% over the prior year. Last year the expenditures increased $673,050 or 3.1% over the June 30, 2011 amounts. Public safety expenditures increased 313,813 or 3.5%. The majority of this increase relates to the 4th year of the compensation improvement package. Most other functional expenditures were similar to those amounts reported in fiscal year 2011. Other Major Governmental Funds - The City and County maintains a large number of individual funds, either because they are legally mandated or considered necessary to track the costs of certain programs. The City and County reports one other major governmental fund (besides the general fund) as described briefly below: ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 19 Ramsay TIFID Industrial Fund – This fund accounts for the tax collection and economic development activities of the tax increment financing industrial district, located just southwest of the intersection of I-90 and I-15 near the town of Ramsey. The revenues consist primarily of property taxes totaling $7,049,842. Property taxes were $357,691 or 5.3% above those of fiscal year 2011. This increase primarily relates to both an increase in the tax mill levy to provide fire protection services. This fund recognized an intergovernmental grant of $1,022,000 from the U.S. Department of Commerce to assist with the expenditures related to the waste water line construction in the TIFID. Before transfers out, this fund incurred expenditures of $1,528,941. The majority of these expenditures relate to marketing of the TIFID and infrastructure costs. This fund transferred $1.9 million to the ASiMI bond fund to retire related revenue bonds. The fund balance in this fund increased $4,519,317. The ending fund balance in this fund totals $15,425,832. Proprietary Funds The proprietary fund statements share the same focus as the government-wide statements, reporting both short-term and long- term information about financial status. The City and County maintain eight such funds, with the three major funds being the Water Utility Division, the Metro Sewer Operations and the Solid Waste program. During the year, these three funds transferred cash to the General Fund in the amounts of $100,000, $150,000 and $50,000, respectively. These transfers relate to numerous administrative services provided by the General Fund. Water Utility Division - The operating revenues in fiscal year 2012 increased $862,593 or 12.7% from the prior fiscal year. This increase is a result of a 10% in water rates. Operating expenses were $183,227 or 2.7% more than fiscal year 2011. The operating loss for this fund is $51,961 as compared $731,327 in fiscal year 2011. This fund reported intergovernmental revenue of $8.1 million, which relates to the natural resources damages program. The State of Montana sued Arco in 1983 to recover damages for injuries to natural resources caused by historic mining and smelting operations in Butte and Anaconda. This grant relates to the resources recovered. The projects included the Big Hole pump station ($3.9 million), transmission line replacement ($2.5 million) and distribution line replacement ($1.4 million). The unrestricted net assets of this fund increased $523,563 from the June 30, 2011 amount. The June 30, 2012 amount is $1,405,795. Metro Sewer Operations – Operating revenues increased $1,692,504 over fiscal year 2011. The 2012 operating revenues were $4,850,555. The City and County raised the user charge rate 50% over fiscal year 2011. Operating expenses were $3,831,683 or $144,831 or 3.9% over the fiscal year 2011 amount. However, because of the revenue increase, this fund reported operating income of $1,018,872. In addition, because of investment earnings, operating grants and a $240,000 debt forgiven, the fund reported a total increase in net assets of $1,248,820 before transfers out of $150,000. At June 30, 2012, this fund reported $15,702,584 in net assets. Solid Waste Program – The operating revenue in fiscal year 2012 was down $677,815 over the prior fiscal year. This reduction was due to a reduction in rates combined with the cessation of an atypical project that had occurred the prior year. Operating expenses were up $182,365 or 8.4% above the fiscal year 2011 amount. Personal services increased $164,895 or 42.3% resulting from the addition of two labor positions. As a result, an operating loss of $54,717 is recognized. Total net assets decreased $96,086 from fiscal year 2011. General Fund Budgetary Highlights The total revenue budget was amended upward just $117,086 and the total expenditure appropriation was amended upward by $664,035 or 2.7%. ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 20 In total, revenues realized were $250,525 over projected revenues. Real property taxes were $530,529 below the final budget amount and personal property and motor vehicle taxes were $501,194. Some of the tax budgets were not classified properly. The charges for services amount was $33,901 below budget. Health insurance premiums were $371,273 over budget because of the increase in the premium rate. On the expenditure side, only 92.4% of the budget was expended. The general government function was $868,117 below the estimated appropriation. Public safety costs were $563,670 below the estimated appropriation. Both of these differences relate primarily to conservative budgets. Capital Assets and Debt Administration Capital Assets The City and County's investment in capital assets, net of accumulated depreciation, for governmental and business-type activities as of June 30, 2012, was $92,615,946 and $83,257,327 respectively. The net investment in the governmental activities increased by approximately $9 million and the business-type activities increased approximately $10.7million as compared to the June 30, 2011 balances. See Note 3-D for additional information about changes in capital assets during the fiscal year and outstanding at the end of the year. The following table provides a summary of capital assets at June 30, 2012 and 2011. 2012 2011 2012 2011 2012 2011 Non-depreciable assets: Land 4,195,170 $ 3,933,774 $ 1,299,935 $ 1,299,935 $ 5,495,105 $ 5,233,709 $ Construction in progress 4,849,955 306,476 6,965,370 3,630,359 11,815,325 3,936,835 Total non-depreciable 9,045,125 4,240,250 8,265,305 4,930,294 17,310,430 9,170,544 Depreciable assets: Buildings 35,612,762 35,362,637 31,977,686 27,656,827 67,590,448 63,019,464 Improvements other than buildings 11,017,208 9,558,134 88,221,030 81,446,472 99,238,238 91,004,606 Machinery and equipment 20,643,441 19,273,039 10,056,847 9,736,166 30,700,288 29,009,205 Infrastructure 72,154,423 66,171,368 - - 72,154,423 66,171,368 Total depreciable assets 139,427,834 130,365,178 130,255,563 118,839,465 269,683,397 249,204,643 Less accumulated depreciation 55,857,013 50,959,155 55,263,544 51,249,184 111,120,557 102,208,339 Book value - depreciable assets 83,570,821 79,406,023 74,992,019 67,590,281 158,562,840 146,996,304 Percentage depreciated 40% 39% 42% 43% 41% 41% Total capital assets net 92,615,946 $ 83,646,273 $ 83,257,324 $ 72,520,575 $ 175,873,270 $ 156,166,848 $ Governmental Activities Business Activities Total Capital Assets At June 30, 2012, the depreciable capital assets for governmental activities were 40% depreciated. This amount is about the same as the June 30, 2011 percentage. With the City and County’s business type activities, 42% of the asset values were depreciated at June 30, 2012 compared to 43% at June 30, 2011. In both instances, the minimal change in the percentage depreciated is a positive indicator. ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 21 The construction in progress amount for governmental activities includes” Substation Electrical Upgrade in TIFID ($950,171) Waste Water Transmission Line ($3,593,308) The major increase in the governmental activities capital asset costs relate to: • Improvements other than buildings - roof replacements at library & fire station #1 ($270,000), boiler replacements at health department & civic center ($395,000) and central butte sidewalk replacement ($322,000) • Machinery and equipment - fire rescue unit ($175,000), fire truck ($161,250), police cars ($105,600) and street sweepers ($584,521) • Infrastructure – multiple storm water projects ($3.1 million) and greenway creek restoration project ($1.5 million) The major increase in the business-type activities capital assets includes: • Construction in progress – the major project is the big hole transmission line project year 4 • Improvements other than buildings - big hole transmission line project year 3 ($2.6 million), metro plant upgrade ($1.6 million), silver lake flume ($1.2 million), water main replacement ($1.6 million), big hole water treatment plant upgrades million) • Buildings - big hole pump station ($4.3 million) Long-term Debt At the end of the fiscal year, the City and County had total long-term debt outstanding of $38,129,742. Of this amount, $17,680,725 is backed by the full faith and credit of the City and County (general obligation bonds and notes) with debt service fully funded by voter-approved property taxes. The other major component is $16,830,000 supported by tax increment financing. The following schedule includes the June 30, 2012 and 2011 outstanding long-term debt. Outstanding Borrowings % Change 2012 2011 2012 2011 2012 2011 General obligation bonds 17,046,617 $ 17,851,416 $ - $ - $ 17,046,617 $ 17,851,416 $ -4.5% Tax increment debt 16,830,000 13,995,000 - - 16,830,000 13,995,000 20.3% Revenue bonds - - 6,688,365 7,050,000 6,688,365 7,050,000 -5.1% General obligation notes 634,108 815,507 - - 634,108 815,507 -22.2% SID bonds 105,000 155,000 - - 105,000 155,000 100.0% Capital leases 284,489 320,223 - - 284,489 320,223 -11.2% Post closure - - 292,959 640,230 292,959 640,230 -54.2% Compensated absences 3,229,528 3,259,941 685,030 263,257 3,914,558 3,523,198 11.1% Total 38,129,742 $ 36,397,087 $ 7,666,354 $ 7,953,487 $ 45,796,096 $ 44,350,574 $ 3.3% Totals Governmental Activities Business-type Activities During the year, the City and County refunded general obligation bonds resulting in an interest expense saving of over $700,000 in the next ten years. See Note 3-H for additional information about the City and County’s long-term debt. ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2012 22 Economic Conditions Affecting the City and County The City and County is located in southwestern Montana with Butte being the county seat. Our county is the smallest county in the state in square miles. The economy of the City and County historically has been based on mining and mineral extraction and the industries they spawned. However, the economy has diversified over the years and in the most recent few years has experienced significant changes. Local businesses are expanding facilities and services, particularly in the areas of engineering and research and development. Fortunately, the housing and mortgage problems facing the rest of the nation have had little impact on the local real estate market. The realty sector of the community reports that the City and County real estate market remains strong. Although the worldwide recession has caused fluctuations in the price of copper, Montana Resources, Inc. continues operations and remains a major employer in the area. The City and County serves as the regional trade and medical center for southwestern Montana and it is unique from a transportation infrastructure standpoint in that it is the only location in the state that is at the intersection of the interstate highway system (I-90 and I-15) and is the only area in the state that is served by two railroads, the Union Pacific and Burlington Northern & Santa Fe. Contacting the City and County’s Financial Management This financial report is designed to provide a general overview of the City and County’s finances, comply with finance- related laws and regulations, and demonstrate the City and County’s commitment to public accountability. If you have questions about this report or would like to request additional information, contact the City and County’s Finance and Budget Director at the Butte-Silver Bow Courthouse, Butte, Montana or call 406/497-6320. ---PAGE BREAK--- Basic Financial Statements 23 ---PAGE BREAK--- See accompanying notes to the basic financial statements 24 Statement of Net Assets Primary Government Component Unit Governmental Business-Type Port of Montana Activities Activities Total Port Authority Assets Current Assets Cash and cash equivalents (Note 3A) 24,303,638 $ 1,989,132 $ 26,292,770 $ 2,354,770 $ Investments 25,301,728 6,763,864 32,065,592 - Receivables (Note 3B): Accounts 5,747,067 3,339,182 9,086,249 150,948 Property taxes 1,929,982 - 1,929,982 21,020 Special assessments 450,295 1,117,041 1,567,336 - Notes 5,246,339 - 5,246,339 - Interfund (1,318,935) 1,318,935 - - Primary government - - - 34,029 Inventory (Note 1-E-4) - 6,555 6,555 22,136 Prepaid items (Note I-E-5) - 5,137 5,137 39,900 Restricted assets (Note 1-E-6) 571,812 226,083 797,895 - Total Current Assets 62,231,926 14,765,929 76,997,855 2,622,803 Non-Current Assets Restricted investments - 2,819,644 2,819,644 - Capital assets (Note 3C) Nondepreciable 8,896,941 8,265,305 17,162,246 385,479 Depreciable, net 83,570,824 74,992,017 158,562,841 4,567,032 Other assets - deferred bond issuance costs 575,725 48,570 624,295 - Total Non-Current Assets 93,043,490 86,125,536 179,169,027 4,952,511 Total Assets 155,275,416 100,891,465 256,166,881 7,575,314 Liabilities Current Liabilities Vouchers payable 2,168,216 1,125,456 3,293,672 - Accounts payable 1,543,524 19,954 1,563,478 14,452 Accrued wages and benefits payable 623,178 174,481 797,659 42,794 Performance bonds payable 33,425 - 33,425 - Accrued interest payable 660,135 25,407 685,542 14,661 Unearned revenue 62,694 408,633 471,327 3,033 Revenue bonds payable - 2,781,322 2,781,322 24,188 Closure and postclosure care payable - 7,324 7,324 - Compensated absences payable 1,351,932 68,503 1,420,435 29,173 Claims payable 477,423 - 477,423 - General obligation bonds payable 1,215,214 - 1,215,214 - General obligation notes payable 190,296 - 190,296 - Tax increment bonds payable 1,320,000 - 1,320,000 - Special improvement districts bonds payable 50,000 - 50,000 - Capital leases payable 37,672 - 37,672 - Total Current Liabilities 9,733,709 4,611,080 14,344,789 128,301 Long-Term Liabilities (net of current portion): Customer deposits - 124,539 124,539 - Accrued interest payable - customer deposits - 23,392 23,392 - Closure and postclosure care payable - 285,635 285,635 - Revenue bonds payable - 3,907,043 3,907,043 702,837 Compensated absences payable 1,877,596 616,527 2,494,123 50,606 General obligation bonds payable 16,179,654 - 16,179,654 - General obligation notes payable 443,812 - 443,812 - Tax increment bonds payable 15,510,000 - 15,510,000 - Special improvement districts bonds payable 55,000 - 55,000 - Capital leases payable 246,817 - 246,817 - Total Long-Term Liabilities 34,312,879 4,957,136 39,270,015 753,443 Total Liabilities 44,046,588 9,568,216 53,614,804 881,744 Net Assets Invested in capital assets, net of related debt (Note 3J) 57,219,300 75,368,957 132,588,257 4,225,486 Restricted for: General government 3,123,241 3,123,241 Public safety 903,472 903,472 Public Works 19,578,304 19,578,304 Social and economic services 26,707 26,707 Cultural and recreation 323,988 323,988 Housing and community development 13,644,394 13,644,394 Economic development - ceased mining operations 5,139,369 5,139,369 Debt service - bond restrictions 2,814,405 1,751,107 4,565,512 95,635 Capital Projects 3,102,557 3,102,557 Self funded health insurance 1,531,907 1,531,907 Code enforcement 156,129 156,129 Unrestricted 3,665,055 14,203,185 17,868,240 2,372,449 Total Net Assets 111,228,828 $ 91,323,249 $ 202,552,077 $ 6,693,570 $ City and County of Butte-Silver Bow, Montana June 30, 2012 ---PAGE BREAK--- See accompanying notes to the basic financial statements 25 Program Revenues Charges for Primary Government Services and Sales Operating Grants Capital Grants Governmental Business-Type Component Function/Program Expenses and Fines and Contributions and Contributions Activities Activities Total Unit Primary Government General government 12,901,775 $ 4,858,792 $ 8,627,327 $ - $ 584,344 $ - $ 584,344 $ - $ Public safety 14,977,684 1,079,128 1,987,557 1,301 (11,909,698) - (11,909,698) - Public works 7,345,814 125,918 3,412,195 4,181,110 373,409 - 373,409 - Public health 4,102,699 472,261 2,172,580 - (1,457,858) - (1,457,858) - Social and economic services 267,919 - 50,584 - (217,335) - (217,335) - Cultural and recreation 3,481,491 601,322 535,049 - (2,345,120) - (2,345,120) - Housing and community development 5,299,101 - 1,062,120 - (4,236,981) - (4,236,981) - Interest 1,602,014 - - - (1,602,014) - (1,602,014) - Total Governmental Activities 49,978,498 7,137,421 17,847,412 4,182,411 (20,811,254) - (20,811,254) - Business-Type Activities: Community facilties 63,155 - - - - (63,155) (63,155) - Home health 481,204 412,234 - - - (68,970) (68,970) - Small business incubator 138,603 60,182 - - - (78,421) (78,421) - Water utility division 7,894,275 7,248,235 - 8,327,205 - 7,681,165 7,681,165 - Metro sewer operations 3,853,671 4,669,526 - 1,331 - 817,186 817,186 - Solid waste 2,352,772 2,259,390 393 - - (92,989) (92,989) - Storm water system project 91,693 302,350 - - - 210,657 210,657 Silver lake water system 198,485 1,045,280 - - - 846,795 846,795 - MR infrastructure project 92,680 - - - - (92,680) (92,680) - Total Business-Type Activities 15,166,538 15,997,197 393 8,328,536 - 9,159,588 9,159,588 - Total - Primary Government 65,145,036 $ 23,134,618 $ 17,847,805 $ 12,510,947 $ (20,811,254) 9,159,588 (11,651,666) - Component Units Port of Montana Port Authority 1,198,500 $ 1,400,119 $ - $ - $ - - - 201,619 General Revenues Property taxes levied for general purposes 27,827,222 - 27,827,222 203,504 Franchise taxes 350,428 - 350,428 Motor fuel taxes 643,505 - 643,505 Investment earnings 342,376 38,508 380,884 20,162 Miscellaneous 960,627 752,138 1,712,765 13,255 Transfers 246,265 (246,265) - - Total General Revenues and Transfers 30,370,423 544,381 30,914,804 236,921 Change in Net Assets 9,559,169 9,703,969 19,263,138 438,540 Net Assets Beginning of Year, as Restated 101,669,659 81,619,280 183,288,939 6,255,030 Net Assets End of Year 111,228,828 $ 91,323,249 $ 202,552,077 $ 6,693,570 $ Net (Expense) Revenue and Changes in Net Assets City and County of Butte-Silver Bow, Montana Statement of Activities For the Fiscal Year Ended June 30, 2012 ---PAGE BREAK--- ---PAGE BREAK--- Governmental Funds Major Governmental Funds General Fund The general fund is used to account for resources traditionally associated with government, which are not required legally or by sound financial management to be accounted for in another fund. Principal sources of revenue are property taxes, state and local shared revenues, licenses and permits and charges for services provided to other funds. Principal expenditures in the general fund are made for public safety, public works and general government operations. Ramsay Tax Increment Financing District (TIFID) The Ramsay TIFID was established by resolution for a twenty-year period on May 20, 1992 to allow for the development of infrastructure to attract industrial development within the TIFID. The TIFID is located south of the city adjacent to the Port of Montana, Port Authority, an intermodal transportation facility, which has been reported within the financial statements as a discretely presented component unit. The major source of revenue is the property taxes generated from within the boundaries of the TIFID. All property tax with the exception of seven mills exempt per state statue and Butte-Silver Bow ordinance is captured within this fund. The major expenditure is a transfer to the debt service fund for repayment of the debt with the remaining expenditures related to further development of infrastructure for economic development activities. 27 ---PAGE BREAK--- 28 Other Total Ramsay Governmental Governmental General TIFID Funds Funds Assets Cash and cash equivalents 1,026,321 $ 6,410,885 $ 16,529,980 $ 23,967,186 $ Investments 4,476,994 8,070,261 12,754,473 25,301,728 Restricted assets - - 571,812 571,812 Receivables: Accounts 339,171 1,046,356 4,354,843 5,740,370 Property taxes 921,352 - 1,008,630 1,929,982 Special assessments 23 194 450,078 450,295 Loans - - 5,246,339 5,246,339 Interfund 1,315,447 - 1,520,000 2,835,447 Total Assets 8,079,308 $ 15,527,696 $ 42,436,155 $ 66,043,159 $ Liabilities and Fund Balances Liabilities Vouchers payable 558,299 $ 31,733 $ 1,478,079 $ 2,068,111 $ Accounts payable 23,490 67,774 1,452,260 1,543,524 Accrued salaries and benefits 335,354 2,163 255,688 593,205 Performance bonds payable 16,479 - 16,946 33,425 Interfund payable - - 4,154,382 4,154,382 Deferred revenue 984,069 194 1,458,916 2,443,179 Total Liabilities 1,917,691 101,864 8,816,271 10,835,826 Fund Balances Restricted 1,688,036 15,425,832 33,230,605 50,344,473 Assigned - - 878,484 878,484 Unassigned 4,473,581 - (489,205) 3,984,376 Total Fund Balances 6,161,617 15,425,832 33,619,884 55,207,333 Total Liabilities and Fund Balances 8,079,308 $ 15,527,696 $ 42,436,155 $ 66,043,159 $ See accompanying notes to the basic financial statements Balance Sheet City and County of Butte-Silver Bow, Montana June 30, 2012 Governmental Funds ---PAGE BREAK--- 29 The Government-wide Statement of Net Assets Total Governmental Fund Balances 55,207,333 $ Amounts reported for governmental activities in the government- wide statement of net assets are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds (exclusive of internal service funds' capital assets). Cost 142,900,764 $ Less accumulated depreciation (51,791,323) 91,109,441 Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds - special assessments sales and property taxes. 2,380,485 The internal service funds are used by management to charge the costs of the maintenance of the vehicle fleet, janitorial services, the personnel and payroll functions, computer operations, and the telephone and GIS to individual funds. The assets and liabilities of the internal service funds are included in governmental activities column on the government-wide statement of net assets. 1,411,969 Interfund receivables and payables between governmental funds are reported on the governmental fund's balance sheet but eliminated on the government-wide statement of net assets. Interfund receivables (2,835,447) $ Interfund payables 2,835,447 - Liabilities not due and payable in the current period and therefore are not reported in the governmental fund balance sheets but are reported on the government-wide statement of net assets. Exclusive of internal service funds' long-term debt. Long-term debt (35,248,465) $ Compensated absences (3,070,102) Claims (477,423) Accrued interest on long-term debt (660,135) (39,456,125) Bond issuance costs are reported as expenditures in the governmental fund financial statements but capitalized on the government-wide statement of net assets. 575,725 Net Assets of Governmental Activities 111,228,828 $ See accompanying notes to the basic financial statements 111,228,828 $ City and County of Butte-Silver Bow, Montana Reconciliation of the Governmental Funds Balance Sheet to June 30, 2012 ---PAGE BREAK--- 30 Other Total Ramsay Governmental Governmental General TIFID Funds Funds Revenues Property taxes 11,034,051 $ 7,049,842 $ 10,006,093 $ 28,089,986 $ Special assessments - - 1,271,343 1,271,343 Licenses and permits 908,840 - - 908,840 Intergovernmental 5,184,948 1,022,424 10,029,489 16,236,861 Charges for services 5,050,805 1,014,925 6,065,730 Fines and forfeitures 431,063 - 82,216 513,279 Private grants and donations 22,741 - 5,096,236 5,118,977 Investment earnings 99,834 24,184 218,358 342,376 Miscellaneous 72,844 - 921,647 994,491 Total Revenues 22,805,126 8,096,450 28,640,307 59,541,883 Expenditures Current: General government 9,605,896 - 2,681,252 12,287,148 Public safety 9,331,132 - 4,825,411 14,156,543 Public works 381,955 - 5,907,598 6,289,553 Public health 1,233,177 - 2,855,874 4,089,051 Social and economic services 114,519 - 152,199 266,718 Cultural and recreation 2,170,231 - 1,034,033 3,204,264 Housing and community development - 536,748 2,597,293 3,134,041 Capital Outlay 222,538 992,193 12,379,338 13,594,069 Debt Service: Principal 35,734 - 2,491,613 2,527,347 Interest 16,660 - 1,635,924 1,652,584 Bond issuance costs - - 260,644 260,644 Total Expenditures 23,111,842 1,528,941 36,821,179 61,461,962 Excess (Deficiency) of Revenues Over (Under) Expenditures (306,716) 6,567,509 (8,180,872) (1,920,079) Other Financing Sources (Uses) Insurance proceeds 2,482 - - 2,482 Payment to refunding bond escrow agent - - (9,360,000) (9,360,000) Bond premium - - 355,770 355,770 General obligation refunding bonds - - 9,505,000 9,505,000 Issuance of tax increment bonds - - 4,050,000 4,050,000 Transfers in 518,198 - 4,566,081 5,084,279 Transfers out (395,864) (2,048,192) (2,393,958) (4,838,014) Total Other Financing Sources (Uses) 124,816 (2,048,192) 6,722,893 4,799,517 Net Change in Fund Balances (181,900) 4,519,317 (1,457,979) 2,879,438 Fund Balances Beginning of Year 6,343,517 10,906,515 35,077,863 52,327,895 Fund Balances End of Year 6,161,617 $ 15,425,832 $ 33,619,884 $ 55,207,333 $ See accompanying notes to the basic financial statements City and County of Butte-Silver Bow, Montana Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended June 30, 2012 ---PAGE BREAK--- 31 Net Changes In Fund Balances - Total Governmental Funds Amounts reported for governmental activities in the government- wide statement of activities are different because: 2,879,438 $ Governmental funds report capital outlays as expenditures on the governmental fund type operating statement. However, in the government-wide statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capitalized capital outlay exceeded depreciation expense in the current period. Depreciation expense (4,700,330) $ Capital outlay 13,584,607 8,884,277 The book value of capital assets sold are reported on the government-wide statement of activities but not reported in the governmental funds. (14,782) Certain special assessment revenues and property tax revenues in the government-wide statement of activities do not provide current financial resources and are not reported as revenues in the governmental fund operating statement. Balance @ 6/30/11 (2,641,523) $ Balance @ 6/30/12 2,380,485 (261,038) The issuance of bonds are reported as an other financing sources on the governmental fund's operating statements but reported as a liability on the government-wide statement of net assets. (13,555,000) The payment to the bond refunding escrow agent is reported as an other financing use, but the payment reduces long-term liabilities in the government-wide statement of net assets. 9,360,000 Bond issuance costs are reported as a debt service expenditure on the government fund's operating statement, but capitalized at the government-wide financial reporting level and bond premiums are reported as an other financing but reported as a liability on the government-wide statement of net assets. (95,126) Repayment of long-term debt principal is reported as an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the government-wide statement of net assets. 2,527,347 Accrued interest on long-term debt is reported in the government- wide statement of activities, but does not require the use of financial resources and therefore is not reported as reported as an expenditures in governmental funds. Balance @ 6/30/11 716,410 $ Balance @ 6/30/12 (660,135) 56,275 Compensated absences and comp time are reported in the government-wide statement of activities, but do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Balance @ 6/30/11 3,122,782 $ Balance @ 6/30/12 (3,070,102) 52,680 Claims payable are reported in the government-wide statement of activities, but do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Balance @ 6/30/11 620,410 $ Balance @ 6/30/12 (477,423) 142,987 Amortization of debt issuance costs, deferred bond refunding and debt premiums are not reported at the fund level but are reported in the government wide statement of activities. (5,705) The internal service funds used by management to charge the costs of the operation of the vehicle fleet, janitorial services, the personnel and payroll functions, computer operations, and the telephone and GIS to individual funds are not reported in the government-wide statement of activities. Governmental fund expenditures and related internal service fund revenues are eliminated. (412,184) Transfers between governmental funds are reported on the governmental fund operating statement but are eliminated on the government-wide statement of net assets. Transfers in (4,980,826) $ Transfers out 4,980,826 - Change In Net Assets Of Governmental Activities 9,559,169 $ See accompanying notes to the basic financial statements 9,559,169 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-wide Statement of Activities ---PAGE BREAK--- 32 Variance Original Final With Final Budget Budget Actual Budget Revenues: Taxes: Real property 10,001,142 $ 10,001,142 $ 9,470,613 $ (530,529) $ Personal property - - 252,573 252,573 Motor vehicle 1,050,000 1,050,000 1,298,621 248,621 Tax title and property tax sale - - 12,244 12,244 Total Taxes 11,051,142 11,051,142 11,034,051 (17,091) Licenses and permits 909,330 909,330 908,840 (490) Intergovernmental 5,044,860 5,112,946 5,184,948 72,002 Charges for services 1,300,833 1,300,833 1,266,932 (33,901) Fines and forfeits 536,600 536,600 431,063 (105,537) City/County and employee health insurance contributions 3,375,000 3,375,000 3,746,273 371,273 Investment earnings 55,000 55,000 22,741 (32,259) Private grants and contributions 55,000 89,000 99,834 10,834 Rental 53,500 53,500 37,600 (15,900) Miscellaneous 56,250 71,250 72,844 1,594 Total Revenues 22,437,515 22,554,601 22,805,126 250,525 Expenditures: Current: General government 10,075,404 10,474,013 9,605,896 868,117 Public safety 9,834,022 9,894,710 9,331,132 563,578 Public works 496,065 496,065 381,955 114,110 Public health 1,321,910 1,389,258 1,233,177 156,081 Social and economic services 156,121 156,121 114,519 41,602 Cultural and recreation 2,241,954 2,317,522 2,170,231 147,291 Capital Outlay 165,268 228,842 222,538 6,304 Debt Service Principal 35,735 35,735 35,734 1 Interest 16,661 16,661 16,660 1 Total Expenditures 24,343,140 25,008,927 23,111,842 1,897,085 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,905,625) (2,454,326) (306,716) 2,147,610 (Continued) For the Fiscal Year Ended June 30, 2012 Statement of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual General Fund City and County of Butte Silver Bow, Montana ---PAGE BREAK--- 33 Variance Original Final With Final Budget Budget Actual Budget Other Financing Sources (Uses) Insurance Reimbursements - - 2,482 2,482 Transfers in: General Fund 500,000.00 95,248 95,248 Metro Sewer 150,000.00 150,000 168,086 18,086 Solid Waste 35,000.00 35,000 35,000 - Water Utility Division 100,000.00 100,000 100,000 - Community Facilities 0.00 67,348 67,348 - Ramsay TIFID #2 113,943.00 113,943 113,943 - Uptown Revitalization Agency fund 33,821.00 33,821 33,821 - Transfers out: Public Archives fund (199,000) (232,554) (232,554) - Community development fund (92,000) (92,000) (92,000) - Health Fund (500,000) (95,248) (95,248) Library (6,325) (6,325) (6,325) - Special Improvement District (20,000) (20,000) (7,500) (12,500) URA Revolving Loans (10,000) (10,000) (10,000) - Small Business Incubator fund (38,735) (38,735) (38,735) - Crime Control fund (8,750) (8,750) (8,750) - Total Other Financing Sources (Uses) 57,954 91,748 124,816 8,068 Net Change in Fund Balances (1,847,671) $ (2,362,578) $ (181,900) 2,155,678 $ Fund Balances Beginning of Year 6,343,517 Fund Balances End of Year 6,161,617 $ See accompanying notes to the basic financial statements (Concluded) ---PAGE BREAK--- 34 Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes - real property 7,000,000 $ 7,000,000 $ 6,984,533 $ (15,467) $ Personal Property - - 65,309 65,309 Rent 2,100 2,100 - (2,100) Intergovernmental - - 1,022,424 1,022,424 Interest Revenue 15,000 15,000 24,184 9,184 Miscellaneous 50,093 50,093 - (50,093) Total Revenues 7,067,193 7,067,193 8,096,450 1,029,257 Expenditures Current: Housing and community development 1,916,220 1,916,220 536,748 1,379,472 Capital Outlay 7,200,000 7,200,000 992,193 6,207,807 Total Expenditures 9,116,220 9,116,220 1,528,941 7,587,279 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,049,027) (2,049,027) 6,567,509 8,616,536 Other Financing (Uses) Transfers out: General fund (113,943) (113,943) (113,943) - ASiMI bond fund (1,760,000) (1,921,750) (1,919,249) 2,501 Small business incubator fund (15,000) (15,000) (15,000) - Total Other Financing (Uses) (1,888,943) (2,050,693) (2,048,192) 2,501 Net Change in Fund Balances $ (3,937,970) $ (4,099,720) 4,519,317 $ 8,619,037 Fund Balances Beginning of Year 10,906,515 Fund Balances End of Year 15,425,832 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Ramsay TIFID Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ---PAGE BREAK--- Proprietary Fund Financial Statements Major Funds Business Type Activities-Enterprise Funds Water Utility Division The Water Utility Division accounts for the local government’s activities of the construction and maintenance of the Butte-Silver Bow water system. Revenues are derived from user fees. The Water Utility Divisions average active connection in fiscal year 2012 was 12,746.. Metro Sewer Division The Metro Sewer Division accounts for the local government’s sewage treatment and disposal operations. Revenue is derived from special assessments. The metro sewer had 57,096 billable units in fiscal year 2012. Solid Waste Division The Solid Waste Division was established to account for the construction and operation of the County’s landfill and solid waste collection activities. Revenues are derived from user fees and special assessments. The Solid Waste Department special assessment billing includes 12,344 units for collection and 21,641 units for disposal in fiscal year 2012. Citizens outside of the collection district are also assessed for disposal. 35 ---PAGE BREAK--- 36 City and County of Butte-Silver Bow, Montana Statement of Net Assets Proprietary Funds June 30, 2012 Governmental Enterprise Funds Activities Water Metro Other Internal Utility Sewer Solid Enterprise Service Division Operations Waste Funds Total Funds Assets Current Assets: Cash and cash equivalents 40,180 $ 331,855 $ 875,467 $ 741,630 $ 1,989,132 $ 336,452 $ Investments 168,626 3,358,625 2,749,088 487,525 6,763,864 - Restricted: Cash and cash equivalents 226,083 - - - 226,083 - Receivables: Accounts 2,413,708 151,440 196,965 577,069 3,339,182 6,697 Special assessments 30,969 692,145 358,749 35,178 1,117,041 - Interfund - 601,464 1,971,308 - 2,572,772 - Inventory - - - 6,555 6,555 - Prepaid expenses 5,137 - - - 5,137 - Total Current Assets 2,884,703 5,135,529 6,151,577 1,847,957 16,019,766 343,149 Noncurrent Assets: Restricted investments 1,792,082 - 1,027,562 - 2,819,644 - Deferred bond issuance costs 48,570 - - - 48,570 - Capital assets: Nondepreciable 7,352,546 166,800 740,526 5,433 8,265,305 40,000 Depreciable, net 56,441,004 12,087,107 3,152,312 3,311,594 74,992,017 1,318,324 Total Noncurrent Assets 65,634,202 12,253,907 4,920,400 3,317,027 86,125,536 1,358,324 Total Assets 68,518,905 17,389,436 11,071,977 5,164,984 102,145,302 1,701,473 (Continued) Business-type Activities ---PAGE BREAK--- 37 Governmental Enterprise Funds Activities Water Metro Other Internal Utility Sewer Solid Enterprise Service Division Operations Waste Funds Total Funds Business-type Activities Liabilities Current Liabilities: Vouchers payable 566,245 $ 345,154 $ 160,758 $ 53,299 $ 1,125,456 $ 100,105 $ Accounts payable - 19,954 - - 19,954 - Accrued wages and benefits payable 94,894 45,699 21,625 12,263 174,481 29,973 Compensated absences 36,514 23,472 5,708 2,809 68,503 15,943 Accrued interest payable 25,407 - - - 25,407 - Interfund payable 1,200,000 - - 53,837 1,253,837 - Unearned revenue 368,838 - - 39,795 408,633 - Closure and postclosure care payable - - 7,324 - 7,324 - Revenue bonds payable 1,740,000 1,041,322 - - 2,781,322 - Total Current Liabilities 4,031,898 1,475,601 195,415 162,003 5,864,917 146,021 Long-Term Liabilities (net of current portion): Customer deposits 124,539 - - - 124,539 - Accrued interest payable-customer deposits 23,392 - - - 23,392 - Closure and postclosure care - - 285,635 - 285,635 - Compensated absences payable 328,624 211,251 51,373 25,279 616,527 143,483 Revenue bonds payable 3,907,043 - - - 3,907,043 - Total Long-Term Liabilities 4,383,598 211,251 337,008 25,279 4,957,136 143,483 Total Liabilities 8,415,496 1,686,852 532,423 187,282 10,822,053 289,504 Net Assets Invested in capital assets, net of related debt (Note 3J) 56,946,507 11,212,585 3,892,838 3,317,027 75,368,957 1,358,324 Restricted for debt service 1,751,107 - - - 1,751,107 - Unrestricted 1,405,795 4,489,999 6,646,716 1,660,675 14,203,185 53,645 Total Net Assets 60,103,409 $ 15,702,584 $ 10,539,554 $ 4,977,702 $ 91,323,249 $ 1,411,969 $ See accompanying notes to the basic financial statements (Concluded) ---PAGE BREAK--- ---PAGE BREAK--- 39 City and County of Butte-Silver Bow, Montana Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds For the Fiscal Year Ended June 30, 2012 Governmental Enterprise Funds Activities Water Metro Other Internal Utility Sewer Solid Enterprise Service Division Operations Waste Funds Total Funds Operating Revenues Charges for services 7,248,235 $ 4,615,958 $ 781,685 $ 1,820,046 $ 14,465,924 $ 2,260,024 $ Special assessments - 53,568 1,477,705 - 1,531,273 - Private Grants and Donations 238,000 - - - 238,000 - Miscellaneous 178,641 181,029 38,665 110,172 508,507 7,144 Total Operating Revenues 7,664,876 4,850,555 2,298,055 1,930,218 16,743,704 2,267,168 Operating Expenses Personal services 2,530,374 1,847,180 554,980 469,560 5,402,094 1,386,350 Operation and maintenance 2,015,485 1,103,616 1,468,025 415,490 5,002,616 1,080,966 Depreciation 3,010,320 880,887 329,767 180,770 4,401,744 212,967 Amortization 160,658 - - - 160,658 - Total Operating Expenses 7,716,837 3,831,683 2,352,772 1,065,820 14,967,112 2,680,283 Operating Income (Loss) (51,961) 1,018,872 (54,717) 864,398 1,776,592 (413,115) Non-Operating Revenues (Expenses) Interest expense (177,438) (21,988) - - (199,426) - Bond debt forgiven - 240,000 - - 240,000 - Insurance reimbursements 3,631 - - - 3,631 - Investment earnings 18,518 10,065 8,238 1,687 38,508 - Intergovernmental 8,089,205 1,331 393 - 8,090,929 931 Total Non-Operating Revenues (Expenses) 7,933,916 229,408 8,631 1,687 8,173,642 931 Income (Loss) Before Transfers 7,881,955 1,248,280 (46,086) 866,085 9,950,234 (412,184) Transfers in - - - 53,735 53,735 200,000 Transfers out (100,000) (150,000) (50,000) - (300,000) (200,000) Change in Net Assets 7,781,955 1,098,280 (96,086) 919,820 9,703,969 (412,184) Total Net Assets Beginning of Year 52,321,454 14,604,304 10,635,640 4,057,882 81,619,280 1,824,153 Total Net Assets End of Year 60,103,409 $ 15,702,584 $ 10,539,554 $ 4,977,702 $ 91,323,249 $ 1,411,969 $ See accompanying notes to the basic financial statements Business-type Activities ---PAGE BREAK--- 40 City and County of Butte-Silver Bow, Montana Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended June 30, 2012 Governmental Enterprise Funds Activities Water Metro Other Internal Utility Sewer Solid Enterprise Service Division Operations Waste Funds Total Funds Increase (Decrease) in Cash and Cash Equivalents Cash Flows from Operating Activities Cash received from customers 7,331,575 $ 4,706,765 $ 2,543,832 $ 1,945,022 $ 16,527,194 $ - $ Cash received from interfund services provided - - - - - 2,272,215 Cash payments for personal services (2,480,513) (1,815,294) (536,740) (468,024) (5,300,571) (1,367,485) Cash payments for goods and services (2,264,067) (1,061,488) (1,384,075) (392,377) (5,102,007) (1,147,745) Net Cash Provided by Operating Activities 2,586,995 1,829,983 623,017 1,084,621 6,124,616 (243,015) Cash Flows from Noncapital Financing Activities Receipt of interfund loan - - - - - 931 Proceeds from insurance 3,631 - - - 3,631 - Payments made on interfund payable - (351,464) (1,971,308) - (2,322,772) - Interest expense on customer deposits (6,320) - - - (6,320) - Transfers in - - - 77,780 77,780 - Transfers out (100,000) (150,000) (50,000) - (300,000) - Net Cash Flows from Noncapital Financing Activities (102,689) (501,464) (2,021,308) 77,780 (2,547,681) 931 Cash Flows from Capital and Related Financing Activities Capital grants 7,408,245 - - - 7,408,245 - Principal paid on revenue bonds payable (1,690,000) (515,000) - - (2,205,000) - Interest paid on revenue bonds (179,121) (21,988) - - (201,109) - Proceeds from issuance of bonds 1,195,149 1,046,322 - - 2,241,471 - Proceeds from loan 1,200,000 - - - 1,200,000 - Proceeds from the sale of capital assets - - - - - - Payments for capital acquisitions (11,229,666) (2,300,081) (383,146) (1,219,600) (15,132,493) (167,502) Net Cash (Used in) Capital and Related Financing Activities (3,295,393) (1,790,747) (383,146) (1,219,600) (6,688,886) (167,502) Cash Flows from Investing Activities Investment earnings 18,518 10,065 8,238 1,687 38,508 - Net Increase (Decrease) in Cash and Cash Equivalents (792,569) (452,163) (1,773,199) (55,512) (3,073,443) (409,586) Cash and Cash Equivalents - Beginning of Year 3,019,540 4,142,643 6,425,316 1,284,667 14,872,166 746,038 Cash and Cash Equivalents - End of Year 2,226,971 $ 3,690,480 $ 4,652,117 $ 1,229,155 $ 11,798,723 $ 336,452 $ Reconciliation to Statement of Net Assets Cash and cash equivalents 40,180 $ 331,855 $ 875,467 $ 741,630 $ 1,989,132 $ 336,452 $ Investments 168,626 3,358,625 2,749,088 487,525 6,763,864 - Restricted cash and investments 2,018,165 - 1,027,562 - 3,045,727 - Total 2,226,971 $ 3,690,480 $ 4,652,117 $ 1,229,155 $ 11,798,723 $ 336,452 $ (continued) Business-type Activities ---PAGE BREAK--- 41 City and County of Butte-Silver Bow, Montana Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended June 30, 2012 Governmental Enterprise Funds Activities Water Metro Other Internal Utility Sewer Solid Enterprise Service Division Operations Waste Funds Total Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating Income (Loss) (51,961) $ 1,018,872 $ (54,717) $ 864,398 $ 1,776,592 $ (413,115) $ Adjustments: Depreciation 3,010,320 880,887 329,767 180,770 4,401,744 212,967 Amortization 160,658 - - - 160,658 - Intergovernmental revenue on-behalf payments 2,018 1,331 393 - 3,742 - (Increase) Decrease in Assets: Accounts receivable (370,669) (2,550) 181,629 (20,812) (212,402) 1,586 Special assessments receivables 17,035 (146,339) 64,148 - (65,156) - Inventory - - - (1,221) (1,221) - Prepaid expenses 5,985 - - - 5,985 - Increase (Decrease) in Liabilities: Vouchers payable (217,388) 80,717 50,482 16,253 (69,936) (74,180) Accounts payable (39,196) (30,014) 29,702 - (39,508) - Accrued expenses - - - - - 7,460 Accrued wages and benefits payable 35,193 13,472 10,162 4,980 63,807 - Customer deposits 6,590 - - - 6,590 - Compensated absences 14,668 13,607 11,451 5,075 44,801 22,267 Unearned revenue 13,742 - - 35,178 48,920 - Net Cash Provided by Operating Activities 2,586,995 $ 1,829,983 $ 623,017 $ 1,084,621 $ 6,124,616 $ (243,015) $ Noncash Capital Activities: Construction costs included in accounts payable 162,469 $ - $ - $ - $ 162,469 $ - $ See accompanying notes to the basic financial statements (concluded) Business-type Activities ---PAGE BREAK--- Fiduciary Funds 42 ---PAGE BREAK--- 43 City and County of Butte-Silver Bow, Montana Statement of Fiduciary Net Assets Fiduciary Funds June 30, 2012 Investment Trust Agency Assets Cash and cash equivalents 9,315,024 $ 23,516,091 $ Investments - 993,545 Receivables - 1,975,618 Land acquired by tax deed - 229,726 Total Assets 9,315,024 26,714,980 $ Liabilities Accounts payable - 2,029,973 Vouchers payable - 925 Accrued interest payable - 236,115 Due to others - 20,840 Due to other governments - 24,393,525 Due to component unit - 33,799 Total Liabilities - 26,715,177 $ Net Assets Net assets held in trust for pool participants 9,315,024 $ See accompanying notes to the basic financial statements ---PAGE BREAK--- 44 Additions Shares and investments purchased 167,122,086 $ Investment earnings 157,016 Total Additions 167,279,102 Deductions Shares and investments redeemed 167,074,913 Investment earnings distributed - Total Deductions 167,074,913 Change in Net Assets 204,189 Net Assets Beginning of Year 9,110,835 Net Assets End of Year 9,315,024 $ See accompanying notes to the basic financial statements For the Fiscal Year Ended June 30, 2012 Investment Trust Funds Statement of Changes in Fiduciary Net Assets City and County of Butte-Silver Bow, Montana ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 45 Index Summary of Significant Accounting Policies 1 Reporting Entity 1-A Basis of Presentation 1-B Measurement Focus 1-C Basis of 1-D Assets, Liabilities and Fund Equity 1-E Cash, Cash Equivalents and 1-E-1 Receivables 1-E-2 Interfund Balances 1-E-3 Consumable Inventories 1-E-4 Restricted Assets 1-E-5 Capital Assets 1-E-6 Accrued Liabilities and Long-term Obligations 1-E-7 Bond Premiums, Discounts, Issuance Costs and Bond Refunding Gains and Losses 1-E-8 Fund Equity 1-E-9 Operating Revenues and Expenses 1-E-10 Contributions of Capital 1-E-11 Interfund Activity 1-E-12 On-behalf Payments for Fringe Benefits 1-E-13 Estimates 1-E-14 Comparative Data 1-E-15 Concentration of Credit Risk – Component Unit 1-E-16 Stewardship, Compliance and Accountability 2 Budgetary Information 2-A Excess of Expenditures over Appropriations 2-B Deficit Fund Equities 2-C Detailed Notes on All Funds 3 Deposits and Investments 3-A Receivables 3-B Property Taxes 3-C Capital Assets 3-D Interfund Balances and Transfers 3-E Landfill Post-Closure Care 3-F Compensated Absences 3-G Long-Term Debt 3-H Pensions 3-I Fund Balances 3-J Other Notes 4 Risk Management 4-A Subsequent Events 4-B Contingent Liabilities 4-C Construction Commitments 4-D External Investment Pool 4-E ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 46 The City and County of Butte-Silver Bow, State of Montana (City and County) was incorporated as a municipal corporation in 1977. Under the charter an elected Chief Executive and twelve-member Council of Commissioners govern the City and County. The day-to-day affairs of the government are conducted under the supervision of the Chief Executive and several other elected and appointed administrative positions. Note 1 - Summary of Significant Accounting Policies The financial statements of the City and County have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) as applied to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for governmental accounting and financial reporting. The City and County also applies Financial Accounting Standards Board (FASB) statements and interpretations issued on or before November 30, 1989, to its governmental and business-type activities at the government-wide financial reporting level and to its enterprise funds at the fund reporting level, provided they do not conflict with or contradict GASB pronouncements. The City and County elected not to apply FASB statements and interpretations issued after November 30, 1989 for its enterprise funds. The most significant of the City and County’s accounting policies are described below. 1-A. Reporting Entity The reporting entity is comprised of the primary government, component units and other organizations that are included to ensure that the financial statements are not misleading. The primary government of the City and County consists of all funds, departments, boards and agencies that are not legally separate from the City and County. Component units are legally separate organizations for which the City and County is financially accountable. The City and County is financially accountable for an organization if the City and County appoints a voting majority of the organization's governing board and the City and County is able to significantly influence the programs or services performed or provided by the organizations; or the City and County is legally entitled to or can otherwise access the organization's resources; the City and County is legally obligated or has otherwise assumed the responsibility to finance the deficits of, or provide financial support to, the organization; or the City and County is obligated for the debt of the organization. Component units also may include organizations that are fiscally dependent on the City and County in that the City and County approves the budget, levies their taxes or issues their debt. The component unit columns included on the government-wide financial statements identifies the financial data of the City and County’s discretely presented component unit. It is reported separately to emphasize that it is legally separate from the County. A brief description of the discretely presented component unit follows: The Port of Montana Authority (Port Authority) - The Port Authority is an intermodal transportation facility, which provides transloading services to over-the-road and rail carriers within the county region. The Port Authority was created by resolution on May 7, 1986, pursuant to authority granted by the 1985 Montana Legislative Assembly. A board appointed by the City and County’s Chief Executive and confirmed by the Council of Commissioners manages the Port. The Port Authority is fiscally dependent upon the City and County to levy taxes if necessary and further, the City and County has secured a revenue bond issued by the Port Authority. Separately issued financial statements for the Authority may be obtained at the City and County’s administrative offices. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 47 1-B. Basis of Presentation The City and County’s basic financial statements consist of government-wide statements which include aggregated fund data and fund financial statements, which provide a more detailed level of financial information. Government-wide Financial Statements - The government-wide financial statements include a statement of net assets and a statement of activities. These statements report financial information for the City and County as a whole. The primary government and the discretely presented component units are presented separately within these financial statements with the focus on the primary government. All City and County funds, excluding the fiduciary activities, are included at the government-wide reporting level. Individual funds are not displayed but the statements distinguish governmental activities, generally supported by taxes and City and County general revenues, from business-type activities, generally financed in whole or in part with fees charged to external customers. The statement of net assets presents the financial position of the governmental and business-type activities of the City and County and it’s discretely presented component unit at year-end. This statement is presented in a classified format. The statement of activities presents a comparison between direct expenses and program revenues for each function of the City and County’s governmental activities and for each identifiable activity of the business-type activities of the City and County. Direct expenses are those that are specifically associated with a function and therefore clearly identifiable to that particular function. The City and County does not allocate indirect expenses to functions in the statement of activities. The statement of activities reports the expenses of a given function offset by program revenues directly connected with the functional program. A function is an assembly of similar activities and may include portions of a fund or summarize more than one fund to capture the expenses and program revenues associated with a distinct functional activity. Program revenues include: charges for services which report fees and other charges to users of the City and County's services; operating grants and contributions which finance annual operating activities including restricted investment income; and capital grants and contributions which fund the acquisition, construction, or rehabilitation of capital assets. These revenues are subject to externally imposed restrictions to these program uses. For identifying to which function program revenue pertains, the determining factor for charges for services is which function generates the revenue. For grants and contributions, the determining factor is to which functions the revenues are restricted. Taxes and other revenue sources not properly included with program revenues are reported as general revenues of the City and County. The comparison of direct expenses with program revenues identifies the extent to which each governmental function and each identifiable business activity is self-financing or draws from the general revenues of the City and County. Fund Financial Statements - During the year, the City and County segregates transactions related to certain City and County functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the City and County at this more detailed level. Fund financial statements are provided for governmental, proprietary, and fiduciary funds. Major individual governmental and enterprise funds are reported in separate columns with composite columns for non-major funds. Fiduciary funds are reported by type. Fund Accounting - The City and County uses funds to maintain its financial records during the year. A fund is a fiscal and accounting entity with a self-balancing set of accounts. The City and County uses three categories of funds: governmental, proprietary and fiduciary. Governmental Funds - Governmental funds are those through which most governmental functions typically are financed. Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used. Fund liabilities are assigned to the fund from which they will be liquidated. The City and County reports the difference between governmental fund assets and liabilities as fund balance. The following are the City and County's major governmental funds: (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 48 General Fund - The general fund accounts for all financial resources except those required to be accounted for in another fund. The general fund balance is available to the City and County for any purpose provided it is expended or transferred according to the general laws of Montana. Ramsay TIFID Industrial Fund- The Ramsay TIFID industrial fund is a special revenue fund that accounts for the tax collection and economic development activities of the Tax Increment Financing Industrial District (TIFID). The TIFID was formed as a major economic development site where the City and County has been able to attract one of the top employers and tax payers for the City and County. Economic development efforts are continuing to attract new interests within the district. Proprietary Funds - Proprietary fund reporting focuses on the determination of operating income, changes in net assets, financial position and cash flows. The City and County’s proprietary funds are classified as enterprise funds and internal service funds. The following are the City and County’s major enterprise funds: Water Utility Division Fund - The water utility division fund is a business-like enterprise fund that accounts for the local government’s expansion and maintenance of the City and County water system. Revenues are derived from user fees and are structured to allow for continuing capital projects such as main replacement projects while complying with a debt service coverage ratio of 125%. Metro Sewer Operations Fund - The metro sewer operations fund is a business-like enterprise fund that accounts for the local government’s sewage treatment and disposal operations. Revenue is derived from special assessments. A component of the rate of the assessments also allows for continuing repair and replacement projects. Solid Waste Fund - The solid waste fund is also a business-like enterprise fund established to account for the construction and operation of the City and County’s landfill and solid waste collection activities. Revenues are derived from special assessments and gate fees. Internal Service Funds – These funds account for data processing, fleet management, payroll and personnel services provided to other departments or agencies of the government, or to other governments, on a cost reimbursement basis Fiduciary Funds - Fiduciary fund reporting focuses on net assets. The City and County’s fiduciary funds include a variety of agency funds, an investment trust fund and various individual investment funds for school districts. Agency Funds - The agency funds consist of property tax funds that the City and County has not yet distributed to local school districts, the State of Montana, other cities and towns, and special districts. The fund also contains fees and judgments due to the State of Montana, garnishments and child support payable through the court system, public administrator functions, and Superfund monies of groups named in a Priority Soils Operable Unit. External Investment Trust Fund – This fund accounts for the resources held in investments on behalf of the local school districts. Under the direction of the various school district business managers, funds are invested per state law. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 49 1-C. Measurement Focus Government-wide Financial Statements - The government-wide financial statements are prepared using the economic resources measurement focus. All assets and all liabilities associated with the operation of the City and County are included on the statement of net assets. The statement of activities reports revenues and expenses. Fund Financial Statements - All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports the sources revenues and other financing sources) and uses expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include a reconciliation with brief explanations to better identify the relationship between the government-wide statements and the governmental fund statements. Like the government-wide statements, all proprietary fund types are accounted for on a flow of economic resources measurement focus on both financial reporting levels. All assets and all liabilities associated with the operation of these funds are included on the statements of net assets. The statements of changes in fund net assets present increases revenues) and decreases expenses) in net total assets. The statement of cash flows provides information about how the City and County finances and meets the cash flow needs of its proprietary activities. The agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 1-D. Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting. At the fund reporting level, governmental funds use the modified accrual basis of accounting and fiduciary funds use the accrual basis of accounting. Proprietary funds use the accrual basis of accounting at both reporting levels. Differences in the accrual and the modified accrual basis of accounting arise in the recognition of revenue, the recording of deferred revenue, and in the presentation of expenses versus expenditures. Revenues – Exchange Transactions - Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On the modified accrual basis, revenue is recorded when the exchange takes place and in the fiscal year in which the resources are measurable and become available. Available means that the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the City and County, the phrase “available for exchange transactions” means expected to be received within 60 days of the balance sheet date. Revenues - Non-exchange Transactions - Non-exchange transactions in which the City and County receives value without directly giving equal value in return, include property taxes, grants, and donations. Revenue from property taxes is recognized in the fiscal year for which the taxes are levied. (Note 3-C) Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City and County must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City and County on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions also must be available collected within 60 days) before it can be recognized. However, property taxes accrued under the modified accrual basis use a 60 day collection period. Under the modified accrual basis, the following primary revenue sources are considered to be susceptible to accrual: property taxes, special assessments, investment earnings and charges for services. Deferred/Unearned Revenue - Deferred revenue arises when assets are recognized before revenue recognition criteria have been satisfied. (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 50 On governmental fund financial statements on the modified accrual basis), receivables that will not be collected within the available period have been reported as deferred revenue they are measurable but not available) rather than as revenue. Property taxes not collected within 60 days of year-end have been recorded as deferred revenue at the fund reporting level. Grants and entitlements received before the eligibility requirements are met cash advances) also are recorded as deferred revenue at both reporting levels. Deferred revenue is reclassified as “unearned revenue” on the government-wide statement of net assets. Expenses/Expenditures - On the accrual basis of accounting, expenses are recognized at the time they are incurred. On the modified accrual basis, expenditures generally are recognized in the accounting period in which the related fund liability is incurred and due, if measurable. 1-E. Assets, Liabilities and Fund Equity 1-E-1 Cash, Cash Equivalents, and Investments Cash and cash equivalents include amounts in demand deposits, time deposits, savings accounts, fiscal agent deposits as well as short-term investments with a maturity date within three months of the date acquired by the City and County. Generally, investments are stated at fair value based on quoted market prices. Montana statutes authorize the City and County to invest in the following types of obligations: • Interest-bearing savings accounts • Certificates of deposit and time deposits insured up to $250,000 by the Federal Deposit Insurance Corporation or fully collateralizeed • U.S. government and U.S. agency obligations • Montana State Short-term Investment Pool • Repurchase agreements where there is a master repurchase agreement and collateral held by a third party Cash resources of individual funds are combined to form a pool of cash and investments, which the Treasurer's Office manages. The investment earnings are statutorily distributed to the general fund. The City and County issues warrants in payment of its obligations. When the warrants are presented to the Treasurer's Office, the City and County will issue a check to pay the warrants. Cash balances are reported net of outstanding warrants except in the trust/agency fund and for registered warrants. 1-E-2 Receivables All trade and property tax receivables are reported net of an allowance for uncollectibles, where applicable. Unbilled utility charges are accrued as receivables and revenue at June 30, 2012. 1-E-3 Interfund Balances On the fund financial statements, receivables and payables resulting from short-term interfund loans are classified as "interfund receivables/payables." These amounts are eliminated in the governmental and business-type activities columns of the statement of net assets, except for any net residual amounts due between governmental and business-type activities, which are reclassified and presented as internal balances. 1-E-4 Consumable Inventories On the government-wide financial statements and the fund financial statements, enterprise fund inventories are presented at cost on a first-in, first-out basis and are expensed when used the consumption method). ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 51 1-E-5 Restricted Assets Certain proceeds of the water utility division, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net assets because their use is limited by applicable bond covenants. The "Debt Service Cash" account is used to segregate resources accumulated for debt service payments over the next twelve months. The "Debt Service Reserve Cash" account is used to report resources set aside that are equal to the largest debt service payment occurring in any fiscal year over the life of the bonds. The "Operations and Maintenance" account is used to report resources accumulated to subsidize potential deficiencies from the water utility division operation that could adversely affect debt service payments. The "Replacement and Depreciation" account is used to report resources set aside to fund asset acquisition, renewals and replacements. 1-E-6 Capital Assets General capital assets are those assets not specifically related to activities reported in the proprietary funds. These assets generally result from expenditures in governmental funds. The City and County reports these assets in the governmental activities column of the government-wide statement of net assets but does not report these assets in the governmental fund financial statements. Capital assets utilized by enterprise funds are reported both in the business-type activities column of the government-wide statement of net assets and in the proprietary funds’ statement of net assets. All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated capital assets are recorded at their fair market values as of the date received. The City and County maintains a capitalization threshold of five thousand dollars. The City and County’s infrastructure consists primarily of roads and water and sewer lines. The City and County governmental activities infrastructure has been capitalized since fiscal year 1981. Improvements to capital assets are capitalized. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are expensed. Interest incurred during the construction of capital assets utilized by the enterprise funds is capitalized. All reported capital assets are depreciated except for land and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Useful lives for infrastructure were estimated based on the City and County’s historical records of necessary improvements and replacement. Depreciation is computed using the straight-line method over the following useful lives: Governmental Business-type Component Asset Class Activities Activities Unit Buildings 30-60 Years 15-40 years Improvements other than buildings 25-50 Years 25-50 Years 15-40 years HUB transportation facility 25-40 years Machinery and equipment 10-20 years 10-20 years 3-15 Years Infrastructure 30-60 Years Estimated Lives At the inception of capital leases at the governmental fund reporting level, expenditures and an “other financing source” of an equal amount are reported at the net present value of future minimum lease payments. 1-E-7 Accrued Liabilities and Long-term Obligations All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements. In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources, are reported as obligations of the these funds. However, compensated absences, claims and unfunded pension benefits that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they are “due for payment” during the current year. Bonds and capital leases are recognized as a liability in the governmental fund financial statements “when due”. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 52 1-E-8 Bond Premiums, Discounts, Issuance Costs and Bond Refunding Gains and Losses On the government-wide statement of net assets and the proprietary fund type statement of net assets, bond premiums and discounts and refunding gains and losses are netted against bonds payable and bond issuance costs are reported as deferred charges. On the government-wide and proprietary fund type statement of activities, bond premiums and discounts, bond issuance costs and bond refunding gains and losses are deferred and amortized over the life of the bonds using the effective interest method. Bond issuance costs are reported as deferred charges and premiums, discounts and bond refunding gains and losses are offset against the applicable bonds payable. At government fund reporting level, bond premiums and discounts are reported as other financing sources and uses, separately from the face amount of the bonds issued. Bond issuance costs are reported debt service expenditures. 1-E-9 Fund Equity Fund equity at the governmental fund financial reporting level is classified as “fund balance.” Fund equity for all other reporting is classified as “net assets.” Fund Balance – Generally, fund balance represents the difference between the current assets and current liabilities. GASB Statement 54 requires governmental fund balances to be allocated to categories as follows: • Nonspendable – funds that are not spendable in form (i.e. Inventory); • Restricted – externally enforceable legal restrictions exist, such as state law or bond covenants; • Committed – constraint formally imposed by the Council of Commissioners by the end of the reporting period; • Assigned – constraint imposed at a level below the Council of Commissioners by the reporting date; • Unassigned – remaining balance. Net Assets - Net assets in the government wide and proprietary funds represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt, consists of capital assets, net of accumulated depreciation, plus any outstanding balances of borrowings not yet expended, but restricted for the acquisition, construction or improvement of those assets. Net assets are reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City and County or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. All other net assets are reported as unrestricted. The City and County applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. The Council of Commissioners is the highest body in the City and County and any constraints on funds set by it must be reported as committed if action is taken by fiscal year end. The Chief Executive, in conjunction with the Finance & Budget Director, is generally the only other person that can impose constraints that would cause amounts to be assigned. 1-E-10 Operating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses, including operating grants, investment earnings, interest expense and gains and losses on dispositions of capital assets. 1-E-11 Contributions of Capital Contributions of capital in proprietary fund financial statements arise from transfers from capital assets of governmental activities, outside contributions of capital assets, tap-in fees to the extent they exceed the cost of the connection to the system, or from grants or outside contributions of resources restricted to capital acquisition and construction. 1-E-12 Interfund Activity Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 53 purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds and after non- operating revenues/expenses section in proprietary funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements. Transfers between governmental and business-type activities on the government-wide statement of activities are reported as general revenues. Transfers between funds reported in the governmental activities column are eliminated. Transfers between funds reported in the business type activities column are eliminated. I-E-13 On-Behalf Payments for Fringe Benefits On-behalf payments for fringe benefits are direct payments made by one entity to a third-party recipient for the employees of another, legally separate entity. On-behalf payments include pension plan contributions made directly to the various cost- sharing pension plans by the State of Montana. The State’s pension contribution is recorded as intergovernmental revenue with an offsetting expenditure in the related funds. (Note 3I) 1-E-14 Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. 1-E-15 Comparative Data Comparative total data for the prior year have been presented only for individual funds in the fund financial statements in order to provide an understanding of the changes in the financial position and operations of these funds. I-E-16 Concentration of Credit Risk – Component Unit The Port of Montana Port Authority, a discretely presented component unit, receives revenues from shipping, storage and switching in Silver Bow, Montana. The Port Authority grants credit on some of these sales and generally requires no collateral from its customers. Note 2 – Stewardship, Compliance and Accountability 2-A. Budgetary Information Budgets are adopted on a basis consistent with GAAP for all budgeted funds of the government in accordance with the Local Government Budget Act (Title 7, Chapter 6, part 40, MCA). Per the Local Government Budget Act, the City and County has excluded the damages and judgments fund, a special revenue fund. Because the amounts of possible judgments are unknown, no expenditure budget is included for this fund. Revenues are budgeted because prior year expenditures are levied for in the current year. In accordance with state law judgments against a local government not covered by insurance may be levied for over a 3-year period to pay the current fiscal years judgments. Also, a budget was not necessary for the ARCO redevelopment fund. An appointed oversight board will be created prior to any appropriations being approved from this fund. The Council of Commissioners under the Local Budget Act made several supplementary budget appropriations during the year for a variety of state and federal grants, fund reserves and unbudgeted revenues or as otherwise authorized per Montana Code Annotated, Section 7-6-4006. The appropriated budget is prepared by fund, function, department and object. In accordance with Montana Code Annotated, Section 7-6-4030, the legal level of control (the level at which expenditures may not legally exceed appropriations) for each adopted annual operating budget is the individual fund. Any change in total to a fund or departmental appropriation within a fund requires approval of the Council of Commissioners and must conform to the legal requirements of Montana Code Annotated, Section 7-6-4031. All appropriations lapse on June 30th. (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 54 Although state law mandates the legal level of budgetary control is the fund, management of the City and County are authorized to make transfers of appropriations among objects within a fund or department subject to the approval of the Council of Commissioners. Per GAAP, this creates a legal level of budgetary control at the object level. In compliance with state law, Butte-Silver Bow reports budget versus actual comparisons at the functional level by fund. This does not, however, demonstrate compliance with the lower GAAP legal level of budgetary control. A separately issued report demonstrating compliance with the GAAP legal level of budgetary control has been issued and may be obtained at the City and County’s administrative offices. 2-B. Excess of Expenditures over Appropriations There were no funds that had expenditures in excess of the fund budget. 2-C. Deficit Fund Equities The following funds had fund balance deficits Parking Commission Fund – ($60,931) – The City and County is funding this operation in the interim with a loan from the general fund so operations can continue without delays. Fees earned from parking tickets and parking lot rental will offset this negative balance. District Court Fund – ($198,567) – The City and County is funding this operation in the interim with a loan from the general fund so operations can continue without delays. The deficit balance is considered a temporary difference that will be levied for in the coming year. Damages and Judgments Fund – ($8,855) – This fund accounts for judgments made against the local government. Property taxes will be levied in fiscal year 2012-2013 to cover this deficit as indicated by State Law. Montana Historical Preservation Fund – ($25,240) – The City and County is funding the project in the interim with a loan from the general fund so the project could continue as planned without delays. The MT Historical Preservation projects will remain active with private grants expected to offset this negative balance prior to the closure of these projects. East Butte RRA Fund – ($312,644) – The East Butte RRA is new tax financing district and is currently operating via a loan from the Urban Revitalization Agency (URA). As the district market values expand, the tax increment will be utilized to pay off the loan to URA. This will offset the negative balance. Superfund Residential Metals Fund – ($80,898) – This fund covers activities under the Superfund Residential Metals program through a settlement agreement with British Petroleum (BP) (formerly ARCO). BP funds the program through a trust. The metro fund has made an interim loan to the program to avoid delays. This project will be fully funded prior to closeout. Health Fund – ($446,902) – This fund covers activities related to community health issues. These include immunization, air quality, drug and alcohol treatment, as well as a multitude of federal and state contract/grant health programs. The general fund has made an interim loan to the fund to avoid delays. This interim loan may be converted to a long term loan or grant from the general fund and is currently under evaluation. Planning-ARCO Grant Fund ($55,033) – This fund accounts for the activities associated with the first several miles of the trail system development of Greenway project. The State of Montana Natural Resource and Damages funding has funded for the majority of this project. The general fund has made an interim loan to the project to avoid delays. This project will be fully funded prior to closeout. NRDP – Greenway Project ($197,643) – This fund accounts for the activities associated with the construction of the Greenway project. The State of Montana Natural Resource and Damages funding has funded for the majority of this project. The solid waste fund has made an interim loan to the project to avoid delays. This project will be fully funded prior to closeout. CTEP Grants – ($5,997) – This fund accounts for a series of grants from the MT Department of Transportation under the (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 55 Community Transportation Enhancement Program (CTEP). The City and County is funding these projects in the interim with a loan from the general fund so these projects can proceed without delay. Grants funds are expected to offset this negative balance prior to the closure of these projects. DNRC Grants Fund – ($2,836) – The City and County is funding the project in the interim with a loan from the general fund so the projects could continue as planned without delays. The DNRC projects will remain active with state grants expected to offset this negative balance prior to the closure of these projects. Note 3 - Detailed Notes on All Funds 3-A. Deposits and Investments Primary Government’s Deposits State statutes require that all deposits in financial institutions be 50% collateralized as outlined in Montana Code Annotated, 17-6-103. Custodial Credit Risk – Deposits – the custodial credit risk for deposits is the risk that, in the event of a bank failure, the City and County’s deposits may not be recovered. Butte-Silver Bow policy related to custodial risk is to remain in conformity with MCA 17-6-103 as described above. At June 30, 2012, the carrying amount of the City and County's deposits, including certificates of deposit was $57,112,762 and the related bank balances totaled $57,461,031. Of the bank balance, $2,995,337 was covered by Federal Depository Insurance; $44,614,467 was collateralized by the pledging financial institution’s trust department or an agent in the City and County’s name and $9,851,227 was uncollateralized. Component Unit’s Deposits At June 30, 2012, the carrying amount of the Port Authority's deposits, including certificates of deposit of $2,354,695 and the related bank balances totaled $2,386,705. Of the bank balance, 610,738 was secured by Federal Depository Insurance; $717,612 was guaranteed or collateralized by government securities. Primary Government’s Investments Interest Rate Risk – Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. In compliance with the City and County’s Investment Policy, the City and County minimized the interest rate risk, related to the decline in the market value of securities due to rising interest rates in the portfolio by; limiting the duration of the investment of security types with the expectation of securities purchases related to reserve funds; structuring the investment portfolio so that the securities matured to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the secondary market. The City and County has invested operating funds primarily in short-term securities or the State of Montana investment pool. At June 30, 2012 the City and County had the following investments presented by maturity period: Fair Investment Type Value U.S. Government Securities 8,010,399 $ Wells Fargo Restricted Investmments 1,163,947 Montana Investment Pool "2a7 like" 31,524,122 Total Investments 40,698,468 $ (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 56 Wells Fargo Restricted Investments consists of government money market funds which meet the requirements of Rule 2A-7 under the Investment Company Act of 1940. The investments consist of collateralized money market accounts (CMMA) which are insured by up to $250,000 by the FDIC. To the extent funds on deposit exceeds the FDIC limit, the uninsured amounts are covered by pledged collateral set aside by Wells Fargo Bank. Wells Fargo Bank, National Association has short term debt ratings of P1 from Moody’s Investors Service and A1+ from Standard & Poor’s Rating Services. Credit Quality Risk – Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The City and County invest in the State of Montana Short Term Investment Pool (STIP). This pool has been deemed a 2a7 like pool. As of June 30, 2012 all STIP securities were registered in the nominee name for the Montana Board of Investments and held in the possession of the Board’s custodial bank, State Street Bank. In accordance with STIP Investments Policy, “repurchase agreements require electronic delivery of U.S. Government Treasury collateral, priced at 102 percent of market value, to the designated State of Montana Federal Reserve Bank account.” STIP contained two types of investments required to be disclosed, which are asset-backed securities and variable rate securities, which are described below. Corporate Asset-backed securities are based on cash flows from principal and interest payments on underlying auto loan receivables, credit card receivables, and other assets. These securities, while sensitive to prepayments due to interest rate changes, have less credit risk than securities not backed by pledged assets. Variable rate (floating-rate) securities have credit risk identical to similar fixed-rate securities; their interest rate risk is more sensitive to interest rate change. However, their face value may be less volatile than fixed rate securities because their value will usually remain at or near par as a result of their interest rates being periodically reset to maintain a current market yield. The State of Montana Short Term Investment Pool (STIP) Credit Quality ratings by the NRSRO as of June 30, 2012 are: Security Investment Type Amortized Cost Credit Quality Rating Asset Backed Commercial Paper 579,229,187 $ A1 Corporate Commercial Paper 68,067,209 A1 Corporate Fixed Rate 23,609,565 B Corporate Variable Rate 419,480,034 A3 Certificates of Deposit Fixed Rate 30,064,940 A1 Certificates of Deposit Variable Rate 416,232,894 A3 Other Asset Backed 21,507,129 BBB- U.S. Government Agency Fixed 124,991,596 A1 U.S. Government Agency Variable 502,707,759 A1 Money Market Funds (Unrated) 147,931,122 NR Money Market Funds (Rated) 24,000,000 A1 Structured Investment Vehicles (SIV) 37,566,658 NR Total Investments 2,395,388,093 $ A2 Securities Lending Collateral Investment Pool 4,930,327 $ NR Amounts invested by the City and County in STIP may be redeemed at any date at the carrying value on that date. Additional information on the State of Montana Short-term Investment Pool may be obtained by writing to Montana Board of Investments, Department of Commerce, 2401 Colonial Drive, 3rd floor, Helena, MT, 59620-0126 or by calling (406) 444- 0001. (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 57 Custodial Credit Risk - Custodial credit risk is the risk that, in the event of a bank failure, the City and County’s investments may not be recovered. None of the City and County’s investments are subject to custodial credit risk. Concentration of Credit Risk – Concentration of credit risk is the risk of loss attributed to the magnitude of the City and County’s investment in a single issuer. In compliance with the City and County Investment Policy, the City and County diversify its investment portfolio so that potential losses on individual securities are minimized. The only investments in excess of 5% of the City and County’s investment portfolio are invested in the State of Montana Short Term Investment Pool (STIP) as described above. Cash and Investment Reconciliation: Cash and Cash Equivalents Investments Total Fund Reporting Level: Governmental Funds - Balance Sheet 23,967,186 $ 25,301,728 $ 49,268,914 $ Governmental Funds - Balance Sheet - Restricted 578,954 - 578,954 Proprietary Fund Type Statement of Net Assets 2,325,584 6,763,864 9,089,448 Proprietary Fund Type Statement of Net Assets - Restricted 226,083 2,819,644 3,045,727 Fiduciary Fund 25,547,578 10,308,569 35,856,147 Less cash on hand (27,960) (27,960) Total 52,617,425 $ 45,193,805 $ 97,811,230 $ Cash and cash equivalents 57,112,762 $ Investments 40,698,468 Total 97,811,230 $ 3-B. Receivables Receivables at June 30, 2012, consisted of taxes, interest, accounts (billings for user charges, including unbilled utility receivables), and intergovernmental receivables arising from grants. Receivables and payables are recorded on the City and County’s financial statements to the extent that the amounts are determined to be material and substantiated not only by supporting documentation, but also by a reasonable, systematic method of determining their existence, completeness, valuation, and in the case of receivables, collectibility. At June 30, 2012, the amount of allowance for uncollectibles was $478,710. This is a significant increase from prior years and was due to an adjustment of Silver Lake receivables by $402, 210 and an increase of $30,000 in the allowance in the Health Dept. The Silver Lake receivable is currently being negotiated. Management believes this allowance reflects a reasonable estimate of the probable settlement amount. 3-C. Property Taxes Generally, property taxes attach as an enforceable lien on property as of January 1. Taxes for each year are levied in October and are due at the earliest of December 31 or sixty days after the tax bill mailing. During the current year, the taxes were levied on November 30, 2011. The property taxes were due and recognized as an enforceable lien on January 31, 2012. The City real property taxes, special assessments and certain utility fees are assessed on November 1st of each year. Payments are due in two equal installments on November 30th and May 31st. Taxes and special assessments receivable are recorded the first working day of December. Tax liens are enforced for real property with taxes which are three years delinquent. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 58 3-D. Capital Assets Capital asset activity for the year ended June 30, 2012, was as follows: Balance Balance 6/30/2011 Additions Deductions 6/30/2012 Governmental activities Nondepreciable capital assets Land 3,933,774 $ 261,396 $ - $ 4,195,170 $ Construction in progress 306,476 4,543,479 148,184 4,701,771 Total nondepreciable capital assets 4,240,250 4,804,875 148,184 8,896,941 Depreciable capital assets Buildings 35,362,637 254,312 4,187 35,612,762 Improvements other than buildings 9,558,134 1,477,974 18,900 11,017,208 Machinery and equipment 19,273,039 1,377,537 7,135 20,643,441 Infrastructure 66,171,367 5,983,056 - 72,154,423 Total depreciable capital assets 130,365,178 9,092,879 30,222 139,427,835 Total capital assets 134,605,428 13,897,754 178,406 148,324,776 Accumulated depreciation Buildings 7,843,757 868,041 4,083 8,707,715 Improvements other than buildings 3,922,307 348,286 4,222 4,266,371 Machinery and equipment 13,661,638 1,065,873 7,135 14,720,376 Infrastructure 25,531,452 2,631,098 - 28,162,550 Total accumulated depreciation 50,959,155 4,913,298 15,440 55,857,013 Governmental activities capital assets, net 83,646,273 $ 8,984,456 $ 162,966 $ 92,467,763 $ Governmental activities depreciation expense General government 761,818 $ Public safety 799,501 Public works 810,138 Public health 19,156 Culture and recreation 361,526 Housing and community development 2,161,159 Total governmental activities depreciation expense 4,913,298 $ (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 59 Balance Balance 6/30/2011 Additions Deductions 6/30/2012 Business-type activities Nondepreciable capital assets Land 1,299,935 $ - $ - $ 1,299,935 $ Construction in progress 3,630,359 6,491,362 3,156,351 6,965,370 Total nondepreciable capital assets 4,930,294 6,491,362 3,156,351 8,265,305 Depreciable capital assets Buildings 27,656,827 4,320,859 - 31,977,686 Improvements other than buildings 81,446,472 6,774,558 - 88,221,030 Machinery and equipment 9,736,166 711,093 390,412 10,056,847 Total depreciable assets 118,839,465 11,806,510 390,412 130,255,563 Total capital assets 123,769,759 18,297,872 3,546,763 138,520,868 Accumulated depreciation Buildings 13,365,529 707,953 - 14,073,482 Improvements other than buildings 30,844,382 3,168,762 - 34,013,144 Machinery and equipment 7,039,273 523,870 386,225 7,176,918 Total accumulated depreciation 51,249,184 4,400,585 386,225 55,263,544 Business-type activities capital assets, net 72,520,575 $ 13,897,287 $ 3,160,538 $ 83,257,324 $ (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 60 The following are the changes in component unit’s capital assets: Balance Balance 6/30/2011 Additions Deductions 6/30/2012 Component unit Nondepreciable capital assets Land 353,253 $ - $ - $ 353,253 $ Construction in progress 1,477,505 53,151 1,498,429 32,227 Total nondepreciable capital assets 1,830,758 53,151 1,498,429 385,480 Depreciable capital assets Warehouse and improvements 753,094 - - 753,094 Machinery and equipment 1,164,790 8,203 8,490 1,164,503 HUB Transportation facility Buildings and improvements 3,997,165 1,498,429 - 5,495,594 Tracks 1,469,324 - - 1,469,324 Total depreciable capital assets 7,384,373 1,506,630 8,490 8,882,515 Total capital assets 9,215,131 1,559,781 1,506,919 9,267,995 Accumulated depreciation Warehouse and improvements 547,408 12,474 - 559,882 Machinery and equipment 893,551 21,782 8,193 907,140 HUB Transportation facility Buildings and improvements 2,002,837 119,662 - 2,122,499 Tracks 692,905 33,060 - 725,965 Total accumulated depreciation 4,136,700 186,978 8,193 4,315,485 Component unit capital assets, net 5,078,433 $ 1,372,804 $ 1,498,726 $ 4,952,512 $ 3-E. Interfund Balances and Transfers Interfund balances at June 30, 2012, consisted of the following amounts and represent charges for services or reimbursable expenses. These remaining balances resulted from the time lag between the dates that interfund goods or services are provided or reimbursable expenditures occur, transactions are recorded in the accounting period, payments between funds are made and to the reclassification of a cash overdraft in the City’s cash and investment pool. The City and County expects to repay most interfund balances within one year. Governmental Payable to: Funds Total General Fund 1,315,447 $ 1,315,447 $ Nonmajor Governmental Funds 1,520,000 1,520,000 Metro Sewer Fund 601,464 601,464 Solid Waste Fund 1,971,308 1,971,308 5,408,219 $ 5,408,219 $ (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 61 The following is a summary of the interfund transfers: Transfers are used to move receipts restricted for debt service from the funds collecting the receipts to the debt service funds per bond covenants, and use unrestricted revenues in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorization and for administrative functions related to the major business-type funds. 3-F. Landfill Post-closure Care State and federal laws and regulations require the City and County of City and County to place a final cover on its landfill site at Rocker when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and post-closure care costs will be paid only near or after the date that the landfill stops accepting waste, City and County reports a portion of these closure and post-closure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet. The total estimated current cost of closure and post-closure care as of the balance sheet date is $2,138,069 and estimated total current cost remaining to be recognized is $1,845,110. These amounts are based on what it would cost to perform all closure and post-closure care in 2012. Percentage of landfill capacity used to date is about 13.70%. City and County expects to close the landfill in the year 2047. Actual cost may be higher due to inflation, changes in technology, or changes in regulations. City and County has elected to use the Local Government Financial test to assure financial requirements are met. 3-G. Compensated Absences Employees earn vacation leave at the rate of 15 days per year for the first 10 years. Between 10 and 20 years, employees earn vacation leave at an increasing rate, reaching 24 days per year after 20 years. There is no requirement that annual leave be taken, but the maximum permissible accumulation per Montana Code Annotated 2-8-617 is equal to twice the amount of the individuals’ annual leave. Any excess leave not taken used within 90 days of the calendar year-end is removed from the individuals annual leave account. At termination, employees are paid for any accumulated annual leave. Employees earn sick leave at the rate of 12 days per year. There is no limit on the accumulation of sick leave. At termination, employees are paid one day for every four days of accumulated sick leave earned after 1970. Nonmajor Nonmajor General governmental enterprise Transfers from: fund funds funds Total General fund - $ 357,129 $ 38,735 $ 395,864 $ Ramsey TIFID 113,943 1,919,249 15,000 2,048,192 Nonmajor governmental funds 119,255 2,274,703 - 2,393,958 Water utility division fund 100,000 - - 100,000 Metro sewer operations fund 150,000 - 150,000 Solid waste fund 35,000 15,000 - 50,000 Total 518,198 $ 4,566,081 $ 53,735 $ 5,138,014 $ Transfers to: ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 62 3-H. Long-Term Debt Governmental Activities Debt – The following is a summary of the outstanding debt for the City and County’s governmental activities. General Obligation Bonds – The City and County has three outstanding general obligation bond issues. On November 7, 2006 the voters of the City and County approved a ballot measure to sell up to $1.1 million in general obligation bonds for the purpose of financing the purchase of a 100’ Super HD Aerial Ladder Truck and associated equipment. On September 28, 2007 the City and County issued a $978,554 General Obligation Bond to the Montana Board of Investments (MBOI). The Bond had an initial interest rate of 4.85% and this will vary annually on the unpaid principal installments until the Bond is paid off on August 15, 2017. The total bonds outstanding related to this project, as of June 30, 2012 are $551,202. On November 14, 2007 the voters of the City and County approved a ballot measure to issue $7.5 million in general obligation bonds to construct an archives vault, and remodel and renovate the historic archives building. On July 9, 2008 the City and County issued $4,500,000 of general obligation bonds with varying interest rates of 3.50% to 5.50% with average coupon of 4.18% and final maturity of July 1, 2028. On February 18, 2009 the City and County issued the remaining $3,000,000 of General Obligation Bonds. These bonds had varying interest rates of 3.00% to 4.65% with average coupon rate of 4.06% and carry a final maturity on July 1, 2029. The total bonds outstanding related to this project, as of June 30, 2012 are $6,895,000. On September 27, 2011, the General Obligation Bonds Series 1999, Series 2002 and Series 2003 were called and a Series 2011 General Obligation Refunding Bonds were issued in the amount of $9,505,000. The Bonds bear interest at varying annual rates between 2.0% and 3.5%, payable semiannually on January 1 and July 1 of each year, commencing January 1, 2012, will mature on July 1, 2022. Bonds with stated maturities in the years 2012 through 2016 will not be subject to optional redemption prior to their stated maturities. Bonds maturing July 1, 2017 and thereafter shall be subject to redemption at the option of the City-County on July 1, 2016. This bond refunding was undertaken to reduce total debt services for the remainder of the life of the bonds. This refunding resulted in a reduction of debt payments by $792, 011 and resulted in a net present value savings of $693,803. The total bonds outstanding on June 30, 2012 are $9,505,000. Annual debt service requirements to amortize the bonds are as follows: Fiscal Year Principal Interest Total 2013 1,215,214 533,288 1,748,502 2014 1,185,214 499,349 1,684,563 2015 1,220,214 369,222 1,589,436 2016 1,260,214 437,758 1,697,972 2017 1,645,214 404,998 2,050,212 2018-2022 6,385,132 1,419,965 7,805,097 2023-2027 3,260,000 548,857 3,808,857 2028-2029 780,000 73,905 853,905 Total 16,951,202 $ 4,287,342 $ 21,238,544 $ (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 63 Tax Increment Revenue Bonds – The City and County has three outstanding tax increment revenue bond issues. Tax Increment Bond, Series 1994 were issued with a final maturity date July 1, 2014. Future revenue from the tax increment financing district has been pledged to pay bond principal and interest as due. This series of bonds was originally issued in the amount of $915,000 with variable interest rate between 4.25% and 7.50% and a balance at June 30, 2012 of $225,000. On December 22, 2010, the Tax Increment Industrial Infrastructure Development Revenue Bonds, Series 1996 and Series 1997 were called and a Series 2010 Taxable Tax Increment Industrial Infrastructure Development Improvement and Refunding Revenue Bonds were issued in the amount of $13,705,000. The Bonds will bear interest at the annual rate of 4.5%, payable semiannually on January 1 and July 1 of each year, commencing July 1, 2011, will mature on July 1, 2022, and will be subject to optional redemption at any time. The previous letter of credit was not renewed at time of refunding. The purchaser of the bonds is REC Advanced Silicon Materials LLC, a Delaware limited liability company. The total bonds outstanding on June 30, 2012 are $12,555,000. On September 27, 2011, Tax Increment Bond, Series 2011 was issued with a final maturity date July 1, 2022. Future revenue from the Tax Increment Industrial Infrastructure District No. 2 has been pledged to pay bond principal and interest as due. This series of bonds was issued in the amount of $4,050,000 with variable interest rate between 3.00% and 5.14%. The total bonds outstanding on June 30, 2012 are $4,050,000 Annual debt service requirements to amortize the bonds are as follows: Fiscal Year Principal Interest Total 2013 1,320,000 716,656 2,036,656 2014 1,340,000 662,581 2,002,581 2015 1,395,000 597,518 1,992,518 2016 1,370,000 542,056 1,912,056 2017 2,555,000 483,622 3,038,622 2018-2022 8,405,000 1,395,604 9,800,604 2023-2027 445,000 43,156 488,156 Total 16,830,000 $ 4,441,193 $ 21,271,193 $ Special Improvement District (SID) Bonds - On July 15, 2003 the City and County of Butte-Silver issued $400,000 in Special Improvement District bonds referred to SID #1025. The special improvement district was created by Council Resolution #00-74 on December 20, 2000 in accordance with Section 7-12-4113, MCA. The proceeds from the bonds were used to pave 2.6 miles of the Blacktail Loop, a primary roadway through the McGuinness Tracts. The bonds carry an interest rate varying of 1.85%-4.30% with a final maturity of July 1, 2013. The total bonds outstanding on June 30, 2012 are $105,000. Annual debt service requirements to amortize the bonds are as follows: (This page continued on the subsequent page) Fiscal Year Principal Interest Total 2013 50,000 3,365 53,365 2014 55,000 1,183 56,183 105,000 $ 4,548 $ 109,548 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 64 General Obligation Notes - Notes payable consist of State of Montana, Intercap Loan Program with final maturity date February 15, 2017. The original amount of notes was $2,519,234 with interest at a variable interest rate between 2.80% and 5.60%. Because the interest rates are variable, as a result it is not feasible to present the projected interest payable. The interest rate for these notes was 1.25% at June 30, 2012. Annual debt service requirements to amortize the notes are as follows: Capital Leases During fiscal year ended June 30, 2001, the City and County acquired a new boiler system under the provisions of a long- term capital lease. This lease has a twenty-year term at a rate of 6.810%. For financial statement purposes minimum lease payments have been capitalized. Leases payable related to the acquisition appear in the governmental activities. The total cost of the boiler system was $577,685. The outstanding balance of the corresponding liabilities is included in governmental activities long-term debt. Future minimum lease payments are as follows: Fiscal Year Principal 2013 190,296 2014 192,346 2015 82,668 2016 86,726 2017 82,074 634,109 $ Fiscal Year Principal Interest Total 2013 37,672 $ 14,723 $ 52,395 $ 2014 39,714 11,618 51,332 2015 41,867 10,527 52,395 2016 44,137 8,258 52,395 2017 46,530 5,865 52,395 2018-2019 74,568 4,024 78,592 284,489 $ 55,015 $ 339,504 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 65 Business-type Activities Debt – The following is a summary of the outstanding debt for the City and County’s business-type activities. Revenue Bonds The Water Utility Division has issued bonds where it has pledged income derived from the acquired or constructed assets to pay debt service. The bonds are payable solely from and secured by the net revenues of the Water Utility Division and certain accounts maintained pursuant to the indenture. Bond covenants require that Water Utility net revenues must at least equal or exceed 125 percent of the annual debt service payment during the term of the bonds. Net revenues for fiscal year ended June 30, 2012 were 168 percent of the annual debt service payment. Also, all bond covenants relating to the reserve requirements have been met. Revenue bonds outstanding consisted of Water System acquisition and improvements: 2003 Series Bonds with variable rates between 2.00% and 3.60% outstanding balance of $1,560,000 and 2008 Series Bonds with variable rates between 3.13% and 3.25% outstanding balance of $3,080,000. The 2003 Series has a final maturity of November 1, 2013and the 2008 Series has a final maturity of November 1, 2014. The total revenue bonds, issued by the Water Utility Division, outstanding on June 30, 2012, net of unamortized discount, are $5,647,043. Annual debt service requirements to amortize the revenue bonds are as follows: Fiscal Year Principal Interest Total 2013 2,781,322 130,763 2,912,085 2014 1,810,000 81,965 1,891,965 2015 1,573,316 70,976 1,644,292 2016 25,089 24,753 49,842 2017 26,015 23,827 49,842 Thereafter 630,729 216,581 847,310 Total 6,846,471 $ 548,865 $ 7,395,336 $ On April 19, 2011 the City and County of Butte-Silver Bow closed on $750,000 in Revenue Bonds issued through the Montana State Revolving Fund (SRF). The bonds were issued with bonds in the amount of $240,700 and bonds in the amount of $510,000 with an interest rate of 3.75% to fund a portion of the Metro Waste Water Plant upgrade project. The bonds were paid off in FY 2012 and $240,700 on the bonds was forgiven on March 15, 2012 per the terms of the agreement. On October 7, 2011 the City and County of Butte-Silver Bow closed on $1,046,322 in Revenue Bonds issued through the Montana State Revolving Fund (SRF). The bonds were issued with bonds in the amount of $300,000, bonds in the amount of $290,000, and bonds in the amount of $456,322 with an interest rate of 3.75% to fund a portion of the Metro Waste Water Plant upgrade project. The amount owed on the bonds as of June 30, 2012 was $456,322 on the bonds, $285,000 on the bonds and $300,000 on the bonds. It is anticipated the entire amount of the bonds will be forgiven in fiscal year 2013 per the terms of the agreement. The bonds are noted as current liabilities at June 30, 2012. On December 1, 2011 the City and County of Butte-Silver Bow closed on $4,860,000 in Revenue Bonds issued through the Montana State Revolving Fund (SRF). The bonds were issued with bonds in the amount of $500,000 and bonds in the amount of $4,360,000 with an interest rate of 3.75% fund engineering costs for various water system improvements. The amount owed on the bonds as of June 30, 2012 was $500,000 on the bonds, and $695,149 on the bonds. It is anticipated the entire amount of the bonds will be forgiven in fiscal year 2013 per the terms of the agreement. The bonds are noted as long term liabilities at June 30, 2012. (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 66 Changes in Long-term Debt - Changes in the City and County’s long-term obligations consisted of the following for the year ended June 30, 2012: Outstanding Outstanding Amounts Due Governmental Activities 6/30/2011 Additions Reductions 6/30/2012 in One Year General obligation bonds 17,851,416 $ 9,505,000 $ 10,405,214 $ 16,951,202 $ 1,215,214 $ General obligation notes 815,507 - 181,398 634,109 190,296 Tax increment 13,995,000 4,050,000 1,215,000 16,830,000 1,320,000 SID bonds 155,000 - 50,000 105,000 50,000 Capital leases 320,223 - 35,734 284,489 37,672 Compensated absences 3,259,941 1,282,143 1,312,555 3,229,529 1,351,932 Total Governmental Activities 36,397,087 $ 14,837,143 $ 13,199,901 $ 38,034,329 $ 4,165,114 $ Business-Type Activities Revenue bonds 7,050,000 $ 2,241,471 $ 2,445,000 $ 6,846,471 $ 2,801,322 $ Less unamortized: Refunding loss (261,355) 112,443 (148,912) Premium 45,150 (19,212) 25,938 Discount (61,479) 26,348 (35,131) Total bonds payable 6,772,316 2,241,471 2,564,579 6,688,366 2,801,322 Compensated absences 640,230 301,882 257,081 685,031 68,503 Landfill postclosure costs 263,257 29,702 - 292,959 7,324 Total Business-Type Activities 7,675,803 $ 2,573,055 $ 2,821,660 $ 7,666,356 $ 2,877,149 $ Component Unit Revenue Bond 750,000 $ - $ 22,975 $ 727,025 $ 24,188 $ Compensated absences 72,414 35,149 27,784 79,779 29,173 Total Component Unit 822,414 $ 35,149 $ 50,759 $ 806,804 $ 53,361 $ The debt service funds are retiring the general obligation bonds, the tax increment bonds and the SID bonds. The general fund is retiring the capital lease. Amounts on landfill closure costs are being repaid from the solid waste enterprise fund. Principal and interest payments related to the City and County’s revenue bonds are financed from income derived from the operation of the water system and the solid waste program. The compensated absences are being paid by the fund where the employee works, primarily the general fund and the each enterprise fund. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 67 3-I. Pensions Primary Government - All City and County full-time employees participate in one of four state-wide cost-sharing multiple-employer retirement benefit plans administered by the Montana Public Employee Retirement Agency (MPERA). Contributions to the four plans are as required by state statute. Total City and County payroll for employees covered by a retirement plan for fiscal year ended June 30, 2012 was $21,501,205. The MPERA issues a Comprehensive Annual Financial Report for all State of Montana Retirement Systems. That report may be obtained by writing to MPERA at 1712 Ninth Avenue, PO Box 200131, Helena, MT 59620-0131, or by calling [PHONE REDACTED]. Information about the four plans the City and County participates in is presented below: Public Employees' Retirement System (PERS) All City and County employees, except firefighters and police officers, are provided pension benefits by this plan. The Public Employees’ Retirement System (PERS) is a statewide retirement plan established in 1945 and governed by Title 19, chapters 2 & 3 of the Montana Code Annotated providing retirement services to substantially all public employees. The PERS is a mandatory multiple-employer, cost-sharing plan administered by the Montana Public Employee Retirement Agency (MPERA). The PERS offers retirement, disability and death benefits to plan members and their beneficiaries. Benefit eligibility is age 60 with at least five years of service; age 65 regardless of service; or 30 years of service regardless of age. Actuarial reduced benefits may be taken with 25 years of service or at age 50 with at least five years of service. retirement benefits are determined by taking 1/56 times the number years of service times the final average salary. Members’ rights become vested after five years of service. The authority to establish, amend and provide cost of living adjustments for the plan is assigned to the State Legislature. The Board of Directors for MPERA issues a publicly available financial report that includes financial statements and required supplementary information for MPERA. That report is available from the MPERA at 1712 Ninth Avenue, PO Box 200131, Helena, MT 59620-0131, or by calling [PHONE REDACTED]. The State Legislature has the authority to establish and amend contribution rates to the plan. Plan members hired prior to July 1, 2011are required to contribute 6.9% of their compensation and the local government is required to contribute 7.07% of the member’s compensation. Plan members hired after July 1, 2011are required to contribute 7.9% of their compensation and the local government is required to contribute 7.07% of the member’s compensation. City and County’s contributions to this plan for the years ended June 30, 2012, 2011 and 2010 were $1,125,389, $1,134,531 and $1,069,672, respectively, equal to the required contributions for each year. The State of Montana on behalf of the City and County of City and County contributed .10% of the covered wages to the Public Employees Retirement System. The on behalf payment for fiscal year ending June 30, 2012 was $14,335. The financial statements reflect the related revenue and expenditure for this on behalf payment. The Port of Montana Port Authority, a discretely presented component unit, also participates in the State of Montana cost sharing multiple employer plan (PERS) for all employees not participating in collective bargaining labor contracts. The contribution rate for employees was 6.9%, the employers’ rate was 7.07% in 2012. The Plan is administered by the State of Montana. The Authority and employee contribution for the year ended June 30, 2012, 2011 and 2010 was $29,229, 34,039 and $37,655. This represents 6.90% of covered payroll, and also includes additional voluntary contributions permitted by State Law. The State of Montana on behalf of the Port of Montana Port Authority contributed .10% of the covered wages to the Public Employees Retirement System. The on behalf payment for fiscal year ended June 30, 2012 was $209. Participants become eligible for benefits after age 60 and 5 years of service, after age 65 regardless of service, or 30 years of service regardless of age. The benefit is 1/60 of the final compensation for each year of credited service, paid as a modified cash refund annuity. A participant is eligible for early retirement benefits after age 50 and 5 years of service or after 25 years of service regardless of age. (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 68 Firefighters' Unified Retirement System (FURS) The Firefighters’ Unified Retirement System (FURS) was established in 1981 and governed by Title 19; Chapter 13 of the Montana Code Annotated provides retirement services for fully paid firefighters. FURS is a mandatory multiple-employer, cost sharing plan by the Public Employees’ Retirement Division (PERD). The FURS offers retirement, disability and death benefits to plan members and their beneficiaries. A member may retire with a normal retirement benefit after completing 20 years of service, regardless of age. The service retirement benefit, for members hired before July 1, 1981 is equal to 1/2 of the last compensation received. An additional amount equal to 2% of the last compensation earned for each year in excess of 20 years can be received. For those hired on or after July 1, 1981, the retirement allowance is equal to 2% of the final average compensation for each year of service. Post retirement benefits are 50% of a current firefighter’s salary. Rights become vested after ten years of service. The authority to establish, amend and provide cost of living adjustments for the plan is assigned to the State Legislature. The State Legislature has the authority to establish and amend contribution rates to the plan. Plan members with a hire date prior to July 1, 1997 under the 1997 State Legislature had the option to elect to stay under the existing FURS plan or by December 31, 1997 could elect the amended plan, which contains a Guaranteed Annual Benefit Adjustment (GABA). All employees hired after July 1, 1997 are under the amended FURS plan. Plan members not electing GABA are required to contribute 9.50% of their compensation. Plan members electing GABA and those employees hired after July 1, 1997 are required to contribute 10.70% of their compensation. The local government is required to contribute 14.36% of the member’s compensation. City and County’s contributions to this plan for the years ended June 30, 2012, 2011 and 2010 were, $281,186, $256,209 and $243,810 respectively, equal to the required contributions for each year. The State of Montana on behalf of the City and County of City and County contributed 32.61% to FURS. The on behalf payment for fiscal year ended June 30, 2012 was $692,469. The financial statements reflect the related revenue and expenditures for this on behalf payment. Municipal Police Officers' Retirement System (MPORS) The Municipal Police Officers’ Retirement System (MPORS) was established in 1975 and governed by Title 19, chapters 2 & 9 of the Montana Code Annotated covers all municipal police officers of cities covered by the plan. MPORS is a mandatory multiple-employer, cost sharing benefit plan administered by the Public Employees’ Retirement Division (PERD). The MPORS offers retirement, disability and death benefits to plan members and their beneficiaries. Minimum years of service are 20 for benefit eligibility. The retirement benefit is calculated as follows: 2.5% x Final Average Salary x Years of Service. Any officers meeting the service year retirements shall receive 1/2 of the final average salary. Rights become vested after 10 years of service. The authority to establish, amend and provide cost of living adjustments for the plan is assigned to the State Legislature. The State Legislature has the authority to establish and amend contribution rates to the plan. Plan members with a hire date prior to July 1, 1997 under the 1997 State Legislature had the option to elect to stay under the existing MPORS plan or by December 31, 1997 could elect the amended plan which contains a guaranteed annual Benefit Adjustment (GABA). All employees hired after July 1, 1997 are under the amended MPORS plan. Plan members not electing GABA are required to contribute 5.80% (for members prior to July 1, 1975), 7% (for members hired between July 1, 1975 and June 30, 1979) and 8.5% (for members hired on and after July 1, 1979) of their compensation. Plan members electing GABA and those employees hired after July 1, 1997 are required to contribute 9% of their compensation. Employers are required to contribute 14.41% of member’s compensations. City and County’s contributions to this plan for the years ended June 30, 2012, 2011 and 2010 were $363,717, $355,635 and $328,861, respectively, equal to the required contributions for each year. The State of Montana on behalf of the City and County of City and County contributed 29.37% to MPORS. The on behalf payment for fiscal year ended June 30, 2012 was $1,058,756. The financial statements reflect the related revenue and expenditures for this on behalf payment. (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 69 Sheriff's Retirement System (SRS) The Sheriffs’ Retirement System (SRS) was established in 1974 and governed by Title 19; Chapter 7 of the Montana Code Annotated covers all persons employed as sheriffs. SRS is mandatory multiple-employer, cost sharing benefit plan administered by the Public Employees’ Retirement Division (PERD). The SRS offers retirement, disability and death benefits to plan members and their beneficiaries. Minimum years of service are 20 regardless of age for a normal retirement benefit. The service retirement is calculated as follows: 2.0834% of the final salary for each year of creditable service; members with more than 24 years of service shall receive an additional 1.35% of the final average salary for each year of creditable service in excess of 24 years. After 10 years of service, an employee has vested right to service retirement benefits. The authority to establish, amend and provide cost of living adjustments for the plan is assigned to the State Legislature. The State Legislature has the authority to establish and amend contribution rates to the plan. Plan members are required to contribute 9.245% of compensation and employers are required to contribute 9.535% of member’s compensations. City and County’s contributions to this plan for the years ended June 30, 2012, 2011, and 2010 were $98,866, $85,209 and $80,044 respectively, equal to the required contributions for each year. Component Unit - The Port of Montana, Port Authority participates in a multi-employer pension plan. The Multi-Employer Pension Plan Amendments Act of 1980 amended ERISA to establish funding requirements and obligations for employers participating in multi-employer plans, principally related to employer withdrawal from or termination of such plans. The Authority may be liable on termination of withdrawal from the plan, for an allocated share of the plan’s unfunded vested liabilities. Separate actuarial calculations of the Authority’s position are not available with respect to the multi-employer plan. Contributions to the multi-employer plan were for fiscal years ended June 30, 2012, 2011, and 2010 were $22,624, $20,666, and $24,901 respectively. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 70 3-J. Fund Balances In the basic financial statements, the fund balance classifications are presented in the aggregate. The table below further displays the funds balances by major purposes. Major Special Revenue Fund Ramsay Other Total General Fund TIFID Funds Funds Fund balances: Nonspendable: - $ - $ - $ - $ Restricted for: - Self funded health insurance 1,531,907 1,531,907 Code enforcement 156,129 156,129 Revolving/LT Loans 587,007 587,007 Special Improvement Districts 897,966 897,966 Weed Control 119,250 119,250 Economic Development 15,425,832 2,306,658 17,732,490 Transit 105,126 105,126 Comprehensice Insurance 131,475 131,475 Crime Control 125,618 125,618 Junk Vehicle 4,105 4,105 Superfund 1,013,714 1,013,714 Reclamation 1,204,543 1,204,543 Urban Revitalization 7,932,783 7,932,783 Hard Rock Mining Trust 5,139,369 5,139,369 911 Emergency Program 323,320 323,320 Law Enforcement Grants 783 783 Public Works 807,768 807,768 Civic Center 217,101 217,101 Library/Archives 106,887 106,887 Sr Citizens 13,104 13,104 Developmentally Disabled 13,603 13,603 Fire Protection 453,751 453,751 Land Planning 97,019 97,019 Parking 1,082 1,082 Community Development 5,711,611 5,711,611 Debt Service 2,409,405 2,409,405 Capital Projects 3,102,557 3,102,557 Committed: - - - - Assigned to: Community Development 329,012 329,012 Urban Revitalization 211,422 211,422 Highway Project 338,050 338,050 Unassigned: 4,473,581 (489,205) 3,984,376 Total fund balances 6,161,617 $ 15,425,832 $ 33,214,884 $ 54,802,333 $ (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 71 The Chief Executive and Council of Commissioners are the highest level of decision-making authority for the City and County, and must adopt a resolution to establish (and modify or rescind) a fund balance commitment. Assigned fund balance may be modified by request of the department head when approved by the Chief Executive. The City and County has not established a policy for use of unrestricted fund balance amounts, and therefore fund balances are reduced in the following order when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used: committed, assigned, and then assigned. The City and County maintains one major special revenue fund, the Ramsey TIFID. The purpose of this fund is to promote industrial development within the TIFID boundary via infrastructure improvements and/or economic development incentives. GASB Statement 54 requires disclosure of revenues for each major special revenue fund. Revenues are as follows: Taxes - real property 7,049,842 $ Intergovernmental 1,022,424 Investment earnings 24,184 8,096,450 $ Note 4 - Other Notes 4-A. Risk Management The City and County faces a considerable number of risks of loss, including a) damage to and loss of property and contents, b) employee torts, c) professional liability, i.e. errors and omissions, d) environmental damage, e) workers' compensation i.e. employee injuries, and f) medical insurance costs of employees. A variety of methods are used to provide insurance for these risks. The City and County participate in two statewide public risk pools operated by the Montana Municipal Insurance Authority, for workers' compensation and for tort liability coverage. Given the lack of coverage available, the City and County have no coverage for potential losses from environmental damages. The City and County participates in a statewide property insurance pool also operated by the Montana Municipal Insurance Authority, transferring all risk of loss except for small deductible amounts. Coverage limits and the deductibles on the commercial policies have stayed relatively constant for the last several years. The premiums for the policies are allocated among enterprise and other funds on the basis of various risk exposures. The Comprehensive Insurance Fund makes a special purpose property tax levy for this purpose as it relates to the governmental activities. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. In late 1985, City and County joined with over 70 other Montana cities and towns to form a self-insurance pool offering worker's compensation and general liability. Liability limits of $750,000 per person and $1,500,000 per accident based on the memorandum of liability coverage obtained through the insurance pool, both public entity risk pools currently operating as common risk management and insurance programs for the member governments. The City and County has a $10,000,000 umbrella policy for excess liability coverage. The City and County pays an annual premium for its employee injury insurance coverage, which is allocated to the employer funds based on total budgeted salaries and wages and an annual premium for tort liability. The agreements for formation of the pools provide that they will be self-sustaining through member premiums. (This page continued on the subsequent page) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 72 City and County began a self-insurance medical program in October of 1990. This plan provides employee health benefits up to a $2,500,000 in a lifetime maximum. City and County purchases commercial insurance for individual claims in excess of $120,000. This coverage is provided by the fund. All funds of the local government participate in the program and make payments to the insurance plan based on actuarial estimates of the amounts needed to pay prior and current year claims and to establish a reserve for catastrophic losses. Claims incurred but not reported (IBNR's) have been considered when determining the claims liability. That reserve was $1,531,907 at June 30, 2012. 4-B. Subsequent Events Management has evaluated subsequent events for the period from June 30, 2012 through the date the financial statements were available to be issued, and no subsequent events have been identified. 4-C. Contingent Liabilities Grants - Amounts received or receivable from grantor agencies are, subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City and County expects such amounts, if any, to be immaterial. Lawsuits - The City and County was a defendant in several lawsuits at June 30, 2012. In the opinion of City and County management, the outcome of these contingencies will not have a material effect on the financial position of the City and County. Superfund - The City and County is a potentially responsible party (PRP) in the Superfund site designated as Butte Priority Soils Operable Unit (BPSOU). Butte-Silver Bow (BSB) is a participating member of PRP group. A settlement agreement regarding responsibilities for remedial actions has been approved between British Petroleum (BP), (successor to Arco) and BSB. The effect of the settlement agreement is to assign financial responsibilities to BP and the majority of cleanup and maintenance responsibilities to Butte-Silver Bow. The consent degree regarding this matter has not yet been finalized. In the opinion of City and County management, the outcome of any contingencies regarding Superfund BPSOU will not have a material effect on the financial position of the City and County. 2012 2011 Claims payable, beginning of year 620,410 $ 827,727 $ Claims incurred during the year 3,540,650 3,517,627 Claims paid during the year (3,683,637) (3,724,944) Claims payable, end of year 477,423 $ 620,410 $ Reconciliation of Claims Payable ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2012 73 4-D. Construction Commitments As of June 30, 2012, the City has made the following construction commitments: Project Expended to Future Authorized June 30, 2012 Financing Buffalo Gulch tunnel rehab 2,509,706 $ 2,125,554 $ 384,152 $ Metro waste water treatment upgrade 585,000 25,290 559,710 3,094,706 $ 2,150,844 $ 943,862 $ Project Description 4-E. External Investment Pool The City and County maintained an external investment pool for one entity outside of the City and County reporting entity for fiscal year ended June 30, 2012. The pool consists solely of investments in the State of Montana Investment Pool, which has been deemed 2a7 like. These investments are reported at amortized cost. On June 30, 2011 the pooled investment’s fair value was $9,315,024, which is the value of the pooled shares. In the State of Montana there is no regulatory oversight for this pool of investments. A separately issued report exists for the external investment pool maintained by the City and County. This report can be obtained by writing to the City and County, Finance and Budget office, at 155 West Granite Street, Butte, MT 59701, or by calling 406/497-6322. ---PAGE BREAK--- ---PAGE BREAK--- Combining Financial Statements 75 ---PAGE BREAK--- 76 Non-major Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for a particular purpose. Combined Special Improvement District – Accounts for revenues received through special assessments, which are expended in specific districts for street lighting, maintenance, and fire hydrants etc… Divide Garbage – Accounts for the revenue and expenditures for the collection and disposal of solid waste within the unincorporated community of Divide. Melrose Garbage – Accounts for monies received and expended for the collection and disposal of solid waste within the unincorporated community of Melrose. SID #1025 Blacktail Loop – Accounts for the construction special assessments being collected for a 2.6 mile paving project in the McGinnis subdivision. The district was created by council resolution #00-74 on December 20, 2000. Road Fund – Accounts for revenues and expenditures related to street maintenance and improvement within the city/county. Bridge – Accounts for revenues and expenditures for bridge maintenance and improvements within the city/county. Noxious Weed – Accounts for revenues and expenditures for the control of noxious weeds within the city/county. Parking Commission – Accounts for revenues and expenditures for the regulating of parking and lot maintenance. District Court – Accounts for revenues and expenditures for the operation of the District Court System. Civic Center – Accounts for revenues and expenditures for the operation of the Butte-Silver Bow Civic Center. Parks – Accounts for revenues and expenditures for upkeep and improvements at specified parks. Library – Accounts for grants and donations received by the library to assist with their operations. Public Archives – Accounts for revenues and expenditures for the operation of the Public Archives. Economic Development 1 Mill Levy – Voter approved one mill levy for Economic Development purposes. Economic Development (HR) - This fund accounts for monies received as a result of distributions from Fund 2391 (Hard Rock Mine Trust Reserve). The monies are to be expended in accordance with MCA 7-6-2225 ---PAGE BREAK--- 77 . Non-major Governmental Funds Special Revenue Funds Transit – Accounts for revenues and expenditures for the operation of the city-county transit system Health – Accounts for federal and state revenues utilized for health programs within the local government. Senior Citizens – Accounts for property tax revenues to be utilized for senior citizens’ activities within the community. Developmentally Disabled – Accounts for revenues and expenditures for developmentally disabled programs within the community. Damages and Judgments – Accounts for property tax and other revenues received and expended for claims and judgments against the city-county. Fire – Accounts for property and other tax revenues received and expended for fire protection and prevention. Comprehensive Insurance – Accounts for property taxes and other revenues received and expended for property and liability insurance for the local government. Crime Control – Accounts for grants received from the State Board of Crime Control for various projects within the community. Land Planning – Accounts for revenues received from the State of Montana coal tax fund, which must be utilized for land planning projects Junk Vehicle – Accounts for revenues received from the State of Montana for the removal of junk vehicles within the city-county. ARCO Planning Greenway Project - This fund accounts for the planning, design, construction, maintenance and operation of the Silver Bow Greenway, under the authority of the multi- jurisdictional Anaconda-Deer Lodge and Butte-Silver Bow counties Greenway Service District. The fund also includes authority to spend anticipated revenues from Montana Department of Transportation to build the first one to two miles of the Greenway. Superfund Water Quality District - This fund was established to monitor the activities of the Water Quality District established by the Council of Commissioners. The accounts are funded through the allocation agreement between Butte-Silver Bow and Arco. Sidewalks – Accounts for revenues received through special assessments and expended for sidewalk reconstruction throughout the city-county. Uptown Parking – Accounts for revenues from special assessments within the Uptown Business District to be expended for parking lot maintenance. Reclamation Fund – Accounts for revenues received from the State of Montana for land reclamation projects within the city-county. From the Montana Resources Indemnity Trust Fund. ---PAGE BREAK--- 78 Non-major Governmental Funds Special Revenue Funds URA Economic Development – Accounts for revenues received and expended for the tax increment district located within the uptown area of the city-county. Community Development – Accounts for loans and grants and economic development for neighborhood revitalization established from balances remaining from discontinued federal and state programs and grants. Hard Rock Mine Trust – Accounts for revenues resulting from the metalliferous mines tax. Funds are held in reserve and cannot be utilized until a reduction or closure of a major mining operation occurs within the jurisdiction. Community Development Block Grant Projects – Accounts for revenues received from the federal government through the State Department of Commerce to be expended for housing rehabilitation and economic development for selected projects in selected areas within the city-county. Montana Pole Institutional – Accounts for revenues received by ARCO, Burlington Northern Railroad and Montana Resources, Inc. The funds will be used to reclaim and maintain lands at the Montana Pole Superfund Site and to install a modest park in the area. 911 Emergency Service – Accounts for a tax imposed on all phone calls. Revenues generated from this source are used to finance improvements to the emergency dispatch centers and communication systems. CTEP Grants – State grants and private matching funds for Interstate Signage Project, Landscaping associated with community corridor entrances and the construction of walking track along Continental Drive. DNRC Grants – These grants provide for the capability to respond to mine waste subsidence problems on properties owned by Butte-Silver Bow or properties that have been abandoned by previous owners. Local Law Enforcement Block Grants – Grants aimed at preventing violence in the community. Funds are used to enhance security in schools by providing training and equipment for school resource officers. Also, purchasing of devices to maintain security throughout the schools. Clark Tailings Operation & Maintenance Trust – Funds received from ARCO as part of an agreement for the purpose of making improvements to existing American Legion baseball field and for the maintenance of new parkland reclaimed by ARCO. PIT Watch Education Program - Through an advisory committee appointed by the Chief Executive, Butte-Silver Bow sponsors the Berkeley Pit Public Education Program, which has been designed to keep citizens informed on the water levels in the Berkeley Pit and surrounding mine shafts. The Committee's work includes publishing PITWATCH twice per year and conducting education presentations at local schools. Since 1996, the program has been funded on an annual basis. In 2002, a trust fund of $170,000 was established to support the Committee's work for a minimum of 15 years, or until all water treatment plant operations are fully operable at the Berkeley Pit. An annual appropriation of approximately $15,000 is made from the trust to cover expenses of the Committee. ---PAGE BREAK--- 79 Non-major Governmental Funds Special Revenue Funds ARCO Historic Preservation Grant - Butte-Silver Bow has received funds from BP-Atlantic Richfield to fulfill certain obligations and projects associated with the mitigation of the loss or impacts to historic resources during the environmental cleanup activities within the Butte Priority Soils Operable Unit of the Butte/Silver Bow Creek Superfund Site. In this program account, Butte- Silver Bow will make improvements to the historic mine yards along the BA&P pedestrian trail, such as replacing roofs on mine yard buildings, installing restrooms, and installing interpretive displays. East Butte Renovation & Rehabilitation Agency - The East Butte Renovation and Rehabilitation Agency was created by in January 2005 with final establishment of the district and board taking place in early 2006. The mission of the East Butte RRA is to promote the re-development and stimulate capital investment in the East Butte area. County Land Planning – This fund was created by Montana Code Annotated 90-1-108 to account for the funds generated by recording fees to assist in the management of land records. Department of Justice Grants – These Grants, known as JAG, are federally funded to be used by the local law enforcement to assist in the capital needs of law enforcement. Montana Historical Preservation Grants - Grants from the State Historic Preservation Office to the City and County of Butte-Silver Bow in the amount of $15,000 to advance heritage tourism activities in Butte and southwest Montana by developing a "Trail system" of historic and cultural sites. Superfund Health Studies - This fund is part of the superfund trust agreement with British Petroleum, formally known as Atlantic Richfield Company (Arco) and Butte-Silver Bow. The funds are allocated to perform health studies related to mine waste. Superfund Health Studies – This fund is part of the superfund trust agreement with British Petroleum, formally known as Atlantic Richfield Company (ARCO) and Butte-Silver Bow. The funds are allocated to perform health studies related to mine waste. ARCO Superfund Land Mgt (GIS) - Butte-Silver Bow has entered into an allocation agreement with BP-Atlantic Richfield to perform certain duties associated with the long-term stewardship of the Butte Priority Soils Operable Unit of the Butte/Silver Bow Creek Superfund Site. In this program account, Butte-Silver Bow will perform GIS mapping and data management services, as well as legal and land records management services. Anaconda ARCO - Community Readjustment: The Community Readjustment Fund was established with a $500,000 grant from ARCO following the suspension of mining operations in 1985. The funds were used to make venture loans to new or expanding businesses in the community. The revolving loan fund continues to flow loans throughout the community as approved by the Anaconda-Arco Loan Committee through the Butte Local Development Corporation upon Butte- Silver Bow Council approval. ARCO Lead Program – Accounts for revenues received through a grant from ARCO in a designated superfund site. The grant is to be used to test mining impact on residences for the presence of concentrated levels of lead. ---PAGE BREAK--- 80 Non-major Governmental Funds Special Revenue Funds Superfund Residential Metals - This fund relates to the Superfund Residential Metals program. British Petroleum, formally known as Atlantic Richfield Company (Arco), funds the program through settlement trust funds which are payable to Butte-Silver Bow. Butte-Silver Bow is responsible under the program to conduct time critical soil removal in the city of Walkerville where soils exceed safe levels of lead, arsenic, and/or mercury. NRDP Greenway Project - Natural Resource Damage Program grant funds the design, engineering and construction costs associated with the Greenway Service District. These funds account for the year 4 grant submittal. East Butte RRA Revolving Loan - This fund relates to the Loan activity of the East Butte Renovation and Rehabilitation Agency. The loans are issued to promote the re-development and stimulate capital investment in the East Butte area. This fund is a revolving loan fund and will remain in existence after the East Butte RRA District sunsets. ARCO Redevelopment Trust - ARCO Redevelopment Fund – This fund is financed through an agreement between the City and County and Atlantic Richfield Company. These resources are being used for land management, time critical soils removal, the establishment of water quality testing, conduct health studies, study the municipal underground water system, and for the operation and maintenance of reclaimed mine site (source areas) and storm water structures. Superfund Storm Water System - Butte-Silver Bow has entered into an allocation agreement with BP- Atlantic Richfield to perform certain duties associated with the long-term stewardship of the Butte Priority Soils Operable Unit of the Butte/Silver Bow Creek Superfund Site. In this program account, Butte-Silver Bow will perform operation and maintenance of reclaimed mine sites (source areas) and storm water structures on the Butte Hill. ---PAGE BREAK--- 81 Debt Service Funds The debt service funds are used to account for the accumulation of resources and payment of general obligation bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the government is obligated in some manner for the payment. Tax Increment Bond District – This fund exists to service the debt for the Urban Revitalization Agency’s Tax Increment Urban Renewal Bonds. SID Revolving – Accounts for property tax revenue received and expended for the payment of special improvement district bond principal and interest. Civic Center Bond Issue – This fund was established per the bond indenture to account for the debt service payments related to the Civic Center General Obligations Bond Issue. LEA Detention Center & Administration Project – General obligation bonds funding the renovation of the Local Law Enforcement Agency administrative offices, 911-Dispatch Center and the new 75-bed Detention Center. Ladder Truck Debt Service – This fund accounts for the annual debt service requirements relating to the issue of $978,554 in General Obligation Bonds for the purchase of an aerial ladder truck approved by voters in November 2006. GO Refunding Bond – This fund accounts for the annual debt service requirements relating to the issue of $9,505,000 in General Obligation Bonds for the purpose of refunding the Civic Center and LEA Detention Center & Administration Project bond issues. ASIMI Bond - This fund accounts for the Principle and Interest payments related to the TIFID bond issues for the purpose of constructing infrastructure in the Ramsay TIFID. Archives Debt Service – This fund accounts for the annual debt service requirements relating to the issue of $7,500,000 in General Obligation Bonds for the renovation of the old Archives building and construction of the new storage vault. ---PAGE BREAK--- 82 Capital Project Funds Capital project funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Capital Improvements – Accounts for various capital acquisitions and/or improvements by the city-county. Highway Abandonment Fund – Accounts for monies received from the State of Montana for road reconstruction projects. Revenues for this fund are derived from a payment made by the Anaconda Company for a road closure. Junk Vehicle Capital Reserve – Accounts for Butte-Silver Bow’s collection of motor vehicle license fees assessed for the purpose of transporting and disposing of abandoned vehicles. The State of Montana Junk Vehicle Program allows a 10% carryover to a capital reserve fund for future capital expenditures to operate the program. Silver Lake Water Distribution System Improvements – Accounts for a capital project constructing the Silver Lake Water System for supply and distribution of water from Silver Lake. The capital is financed through funds received from ARCO. Archives Building Fund – This capital project improvement fund was established to account for the costs of renovating and expanding the Butte-Silver Bow Public Archives Building. The project is funded by a voter approved General Obligation Bond Issue totaling $7.5 million. Construction began in the fall of 2008 and was substantially complete by August 2011. Civic Center Renovation Project – Accounts for the renovation and construction of multi-use public facility funded by a voter approved General Obligation Bond Issue. Detention Center and LEA Administration Project – Accounts for the renovation of a historical jail facility into Law Enforcement Agency Offices and modernization of the 911 Dispatch Center with the major portion of the funds being directed to the construction of a new 75-bed detention facility. The project is funded by the passage of a $12.574 million in voter approved general obligation bonds. The offices and 911 Dispatch Center were completed in the fall of 2003. The Detention Center was completed and began to house inmates in the fall of 2004. REC Expansion Project – Accounts for the upgrades to the electrical substation near the REC facility. The project is funded with $1.552 million in tax increment bond funds resulting from a refunding of the 1996 & 1997 tax increment bonds. Waste Waterline Construction Fund – Accounts for the construction of a waste water line through the Ramsey TIFID. A portion of the project was funded by the issuance of $4,050,000 in tax increment bonds, a portion was funded by a federal grant, and the remainder was funded with TIFID revenues. The line was substantially complete, although not operational by June 30, 2012. ---PAGE BREAK--- 83 Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds Assets Cash and cash equivalents 11,514,210 $ 2,453,813 $ 2,561,957 $ 16,529,980 $ Investments 10,899,378 410 1,854,685 12,754,473 Restricted assets - investments - 571,812 - 571,812 Receivables: Accounts 4,354,843 - - 4,354,843 Property taxees 703,059 305,571 - 1,008,630 Special assessments 450,078 - - 450,078 Loans 5,232,252 - 14,087 5,246,339 Interfund 1,520,000 - - 1,520,000 Total Assets 34,673,820 $ 3,331,606 $ 4,430,729 $ 42,436,155 $ Liabilities and Fund Balances Liabilities Vouchers payable 1,359,287 $ - $ 118,792 $ 1,478,079 $ Accounts payable 580,930 - 871,330 1,452,260 Accrued salaries and benefits 255,688 - - 255,688 Interfund payable 4,154,382 - - 4,154,382 Performance bonds payable 16,946 - - 16,946 Deferred revenue 1,153,137 305,779 - 1,458,916 Total Liabilities 7,520,370 305,779 990,122 8,816,271 Fund Balances Restricted 27,313,643 2,814,405 3,102,557 33,230,605 Assigned 329,012 211,422 338,050 878,484 Unassigned (489,205) - - (489,205) Total Fund Balances 27,153,450 3,025,827 3,440,607 33,619,884 Total Liabilities and Fund Balances 34,673,820 $ 3,331,606 $ 4,430,729 $ 42,436,155 $ City and County of Butte-Silver Bow, Montana June 30, 2012 Nonmajor Governmental Funds - By Fund Type Combining Balance Sheet ---PAGE BREAK--- 84 Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds Revenues Property taxes 7,869,919 $ 2,136,174 $ - $ 10,006,093 $ Special assessments 1,271,343 - - 1,271,343 Intergovernmental 9,409,619 293,625 326,245 10,029,489 Charges for services 1,014,925 - - 1,014,925 Fines and forfeitures 49,325 - 32,891 82,216 Private grants and donations 5,096,236 - - 5,096,236 Investment earnings 211,397 1,384 5,577 218,358 Miscellaneous 352,890 565,007 3,750 921,647 Total Revenues 25,275,654 2,996,190 368,463 28,640,307 Expenditures Current: General government 2,681,252 - - 2,681,252 Public safety 4,824,211 1,200 - 4,825,411 Public works 5,907,598 - - 5,907,598 Public health 2,855,874 - - 2,855,874 Social and economic services 152,199 - - 152,199 Cultural and recreation 1,032,733 1,300 - 1,034,033 Housing and community development 2,595,897 1,396 - 2,597,293 Capital Outlay 6,912,586 - 5,466,752 12,379,338 Debt Service: Principal 181,399 2,310,214 - 2,491,613 Interest 15,020 1,620,904 - 1,635,924 Bond issuance costs - 132,650 127,994 260,644 Total Expenditures 27,158,769 4,067,664 5,594,746 36,821,179 (Deficiency) of Revenues (Under) Expenditures (1,883,115) (1,071,474) (5,226,283) (8,180,872) Other Financing Sources (Uses) Payment to refunded bond escrow agent - (9,360,000) - (9,360,000) Bonds premiums - 355,770 - 355,770 Issuance of tax increment refunding bonds - 9,505,000 - 9,505,000 Issuance of tax increment bonds - 405,000 3,645,000 4,050,000 Transfers in 2,107,443 2,258,638 200,000 4,566,081 Transfers out (386,936) (1,583,382) (423,640) (2,393,958) Total Other Financing Sources (Uses) 1,720,507 1,581,026 3,421,360 6,722,893 Net Change in Fund Balances (162,608) 509,552 (1,804,923) (1,457,979) Fund Balances Beginning of Year 27,316,058 2,516,275 5,245,530 35,077,863 Fund Balances End of Year 27,153,450 $ 3,025,827 $ 3,440,607 $ 33,619,884 $ City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds - By Fund Type For the Fiscal Year Ended June 30, 2012 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 85 Combined Special SID#1025 Improvement Divide Melrose Blacktail Noxious Parking District Civic District Garbage Garbage Loop Road Bridge Weed Commission Court Center Assets Cash and cash equivalents 884,389 $ 5,048 $ 2,867 $ 44,503 $ 917,605 $ 154,935 $ 103,464 $ - $ - $ 235,701 $ Investments - 1,975 - - - - - - - - Receivables: Taxes - - - - 98,797 36,987 21,922 - 40,443 34,657 Accounts - - - - 17,351 - 45,566 - 10,032 2,774 Special assessments 89,975 2,518 2,925 164,307 - - 40,295 - - - Loans - - - - - - - - - - Interfund - - - - - - - - Restricted assets - investments - - - - - - - - - - Total Assets 974,364 $ 9,541 $ 5,792 $ 208,810 $ 1,033,753 $ 191,922 $ 211,247 $ - $ 50,475 $ 273,132 $ Liabilities and Fund Balances Liabilities Vouchers payable 38,344 $ - $ - $ - $ 267,724 $ 1,189 $ 4,921 $ 264 $ 60,822 $ 14,008 $ Accounts payable - - - - - - - - 9,109 - Accrued salaries and benefits 2,472 - - - 24,603 7,207 7,913 5,161 17,085 7,366 Performance bonds payable - - - - - - 16,946 - - - Interfund payable - - - - - - - 55,506 121,583 - Deferred revenue 89,975 2,518 2,925 164,307 98,797 36,987 62,217 - 40,443 34,657 Total Liabilities 130,791 2,518 2,925 164,307 391,124 45,383 91,997 60,931 249,042 56,031 Fund Balances Restricted 843,573 7,023 2,867 44,503 642,629 146,539 119,250 - - 217,101 Assigned - - - - - - - - - Unassigned - - - - - (60,931) (198,567) - Total Fund Balances 843,573 7,023 2,867 44,503 642,629 146,539 119,250 (60,931) (198,567) 217,101 Total Liabilities and Fund Balances 974,364 $ 9,541 $ 5,792 $ 208,810 $ 1,033,753 $ 191,922 $ 211,247 $ - $ 50,475 $ 273,132 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 86 Assets Cash and cash equivalents Investments Receivables: Taxes Accounts Special assessments Loans Interfund Restricted assets - investments Total Assets Liabilities and Fund Balances Liabilities Vouchers payable Accounts payable Accrued salaries and benefits Performance bonds payable Interfund payable Deferred revenue Total Liabilities Fund Balances Restricted Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances Damages Public Econ Dev Economic Senior Developmentally And Parks Library Archives 1 Mill Levy Dev (HR) Transit Health Citizens Disabled Judgments 23,100 $ 27,678 $ 71,108 $ 13,953 $ - $ 164,434 $ 13,104 $ 15,138 $ - $ - - 14,385 - 1,312,857 - - - - - - - - 5,534 - 29,862 - 6,093 4,802 23,967 - - 1,392 - - 209,817 384,919 - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,200,000 - - - - - - - - - - - - - - - 23,100 $ 27,678 $ 86,885 $ 19,487 $ 2,512,857 $ 404,113 $ 384,919 $ 19,197 $ 19,940 $ 23,967 $ 4,500 $ 572 $ 1,093 $ 5,000 $ 66,531 $ 29,974 $ 59,791 $ - $ 87 $ - $ - - - - - - 42,335 - - - - - 6,011 - - 19,151 35,078 - 1,448 - - - - - - - - - - - - - - - 148,621 220,000 694,617 - - 8,855 - - - 5,534 - 29,862 - 6,093 4,802 23,967 4,500 572 7,104 10,534 215,152 298,987 831,821 6,093 6,337 32,822 18,600 27,106 79,781 8,953 2,297,705 105,126 - 13,104 13,603 - - - - - - - - - - - - - - - - (446,902) - - (8,855) 18,600 27,106 79,781 8,953 2,297,705 105,126 (446,902) 13,104 13,603 (8,855) 23,100 $ 27,678 $ 86,885 $ 19,487 $ 2,512,857 $ 404,113 $ 384,919 $ 19,197 $ 19,940 $ 23,967 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 87 Assets Cash and cash equivalents Investments Receivables: Taxes Accounts Special assessments Loans Interfund Restricted assets - investments Total Assets Liabilities and Fund Balances Liabilities Vouchers payable Accounts payable Accrued salaries and benefits Performance bonds payable Interfund payable Deferred revenue Total Liabilities Fund Balances Restricted Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances ARCO Planning Superfund Comprehensive Crime Land Junk Greenway Wtr Quality Uptown Reclamation Fire Insurance Control Planning Vehicle Project District Sidewalks Parking Projects 664,540 $ 65,756 $ 132,413 $ 42,863 $ 6,934 $ - $ 129,065 $ 30,258 $ 1,082 $ 60,016 $ - 67,939 - - - - - - - - 315,122 84,873 - - - - - - - - 38,599 - - - - 15,181 - - - - - - - - - - 39,749 3,195 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,018,261 $ 218,568 $ 132,413 $ 42,863 $ 6,934 $ - $ 144,246 $ 70,007 $ 4,277 $ 60,016 $ 37,400 $ 2,220 $ 5,720 $ - $ 2,057 $ - $ - $ - $ - $ - $ 127,791 - - - - - - - - - 84,197 - 1,075 - 772 - 1,031 - - - - - - - - - - - - - - - - - - 55,033 - 30,000 - - 315,122 84,873 - - - - - 39,749 3,195 - 564,510 87,093 6,795 - 2,829 55,033 1,031 69,749 3,195 - 453,751 131,475 125,618 42,863 4,105 - 143,215 - 1,082 60,016 - - - - - - - - - - - - - - - (55,033) - 258 - - 453,751 131,475 125,618 42,863 4,105 (55,033) 143,215 258 1,082 60,016 1,018,261 $ 218,568 $ 132,413 $ 42,863 $ 6,934 $ - $ 144,246 $ 70,007 $ 4,277 $ 60,016 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 88 Assets Cash and cash equivalents Investments Receivables: Taxes Accounts Special assessments Loans Interfund Restricted assets - investments Total Assets Liabilities and Fund Balances Liabilities Vouchers payable Accounts payable Accrued salaries and benefits Performance bonds payable Interfund payable Deferred revenue Total Liabilities Fund Balances Restricted Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances Community URA Hard-Rock Development Montana Local Law Clark Economic Community Mine Trust Block Grants Pole 911 CTEP DNRC Enforcement Tailings Development Development Reserve Projects Institution Emergency Grants Grants Block Grant O & M Trust 553,616 $ 54,537 $ 5,943,927 $ 75,409 $ 375,423 $ 154,206 $ - $ 783 $ - $ 2,736,202 10,921 6,364 - 331 185,156 - - - 124,519 - - - - - - - - - - - 76,959 - - - - 87,709 - - - 47,467 - - - - - - - - - 4,512,763 78,336 - 55,810 - - - - - - 320,000 - - - - - - - - - - - - - - - - - - - 8,170,048 $ 220,753 $ 5,950,291 $ 131,219 $ 375,754 $ 339,362 $ 87,709 $ - $ 783 $ 124,519 $ 185,258 $ 52,062 $ - $ - $ - $ 13,463 $ - $ 870 $ - $ - $ - - - - 230,000 - - - - - 4,540 4,285 - - - 2,579 - - - - - - - - - - - - - - - - - - - - 93,706 1,966 - 3,513 47,467 - - - - - - - - - 237,265 56,347 - - 230,000 16,042 93,706 2,836 - 3,513 7,932,783 164,406 5,139,369 55,810 145,754 323,320 - - 783 121,006 - - - - - - - - - - - 810,922 75,409 - - (5,997) (2,836) - - 7,932,783 164,406 5,950,291 131,219 145,754 323,320 (5,997) (2,836) 783 121,006 8,170,048 $ 220,753 $ 5,950,291 $ 131,219 $ 375,754 $ 339,362 $ 87,709 $ - $ 783 $ 124,519 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 89 Assets Cash and cash equivalents Investments Receivables: Taxes Accounts Special assessments Loans Interfund Restricted assets - investments Total Assets Liabilities and Fund Balances Liabilities Vouchers payable Accounts payable Accrued salaries and benefits Performance bonds payable Interfund payable Deferred revenue Total Liabilities Fund Balances Restricted Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances Arco East Butte Anaconda PIT Historic Renovation & County Department Montana Superfund ARCO ARCO ARCO Watch ED Preservation Rehabilitation Land of Justice Historical Health Superfund Community Lead Program Grant Agency Planning Grant Preservation Studies Land Mgt-GIS Readjustment Program 178,824 $ - $ 6,782 $ 54,156 $ - $ - $ 35,296 $ - $ 262,219 $ 7,404 $ 292 867,941 574 - - - - - 62,956 15,058 - - - - - - - - - - - 125 - - 43,860 20,000 - 30,362 3,837 - - - 59,647 - - - - - - - - - - - - - - - 351,903 - - - - - - - - - - - - - - - - - - - - - 179,116 $ 868,066 $ 67,003 $ 54,156 $ 43,860 $ 20,000 $ 35,296 $ 30,362 $ 680,915 $ 22,462 $ - $ 125,658 $ - $ - $ 23,703 $ 5,100 $ - $ - $ - $ - $ - 13,541 - - - - - - - - - - - - - - - 2,147 - - - - - - - - - - - - - 30,216 320,000 - 7,854 40,140 - 21,289 - - - - 59,647 - - - - - - - - 169,415 379,647 - 31,557 45,240 - 23,436 - - 179,116 698,651 - 54,156 - - 35,296 - 351,903 22,462 - - - - - - - - 329,012 - - - (312,644) - 12,303 (25,240) - 6,926 - - 179,116 698,651 (312,644) 54,156 12,303 (25,240) 35,296 6,926 680,915 22,462 179,116 $ 868,066 $ 67,003 $ 54,156 $ 43,860 $ 20,000 $ 35,296 $ 30,362 $ 680,915 $ 22,462 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 90 Assets Cash and cash equivalents Investments Receivables: Taxes Accounts Special assessments Loans Interfund Restricted assets - investments Total Assets Liabilities and Fund Balances Liabilities Vouchers payable Accounts payable Accrued salaries and benefits Performance bonds payable Interfund payable Deferred revenue Total Liabilities Fund Balances Restricted Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances East Butte Total Superfund NRDP RRA ARCO Superfund MT DOC- Nonmajor Residential Greenway Revolving Redevelopment Storm Water NSP3 Special Revenue Metals Project Loan Trust System Grant Funds - $ - $ 1,674 $ - $ - $ - $ 11,514,210 $ - - 513 5,491,395 - - 10,899,378 - - - - - - 703,059 164,461 1,936,645 - - 1,247,254 18,000 4,354,843 - - - - - - 450,078 - - 233,440 - - - 5,232,252 - - - - - - 1,520,000 - - - - - - - 164,461 $ 1,936,645 $ 235,627 $ 5,491,395 $ 1,247,254 $ 18,000 $ 34,673,820 $ 23,147 $ 162,166 $ - $ - $ 147,643 $ 18,000 $ 1,359,287 $ - - - - 158,154 - 580,930 7,648 814 - - 13,105 - 255,688 - - - - - - 16,946 214,564 1,971,308 - - 115,611 - 4,154,382 - - - - - - 1,153,137 245,359 2,134,288 - - 434,513 18,000 7,520,370 - - 235,104 5,491,395 812,741 - 27,313,643 - - - - - 329,012 (80,898) (197,643) 523 - - - (489,205) (80,898) (197,643) 235,627 5,491,395 812,741 - 27,153,450 164,461 $ 1,936,645 $ 235,627 $ 5,491,395 $ 1,247,254 $ 18,000 $ 34,673,820 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds June 20,2012 91 Combined Special SID#1025 Improvement Divide Melrose Blacktail Noxious Parking District Civic District Garbage Garbage Loop Road Bridge Weed Commission Court Center Revenues Property taxes 10,770 $ - $ - $ - $ 1,272,500 $ 415,662 $ 239,865 $ - $ 367,448 $ 388,442 $ Special assessments 1,123,030 12,343 217 54,397 - - - - - - Intergovernmental 18,988 - - - 1,727,160 43,438 21,133 90 124,346 38,221 Charges for services - - 9,016 - 80 - 138,564 75,333 14,268 321,794 Fines and forfeitures - - - - - - - 49,325 - - Private grants and donations - - - - - - - - - 8,901 Investment earnings - - - - - - - - - - Miscellaneous - - - - 93,101 528 300 - 1,377 2,393 Total Revenues 1,152,788 12,343 9,233 54,397 3,092,841 459,628 399,862 124,748 507,439 759,751 Expenditures Current: General government 415,538 - - - - - - - 747,613 - Public safety - - - - - - - - 152,706 - Public works 838,767 14,000 9,500 - 2,268,867 358,401 335,764 147,293 - - Public health 13,600 - - - - - - - 49,111 - Social and economic services - - - - - - - - - - Cultural and recreation - - - - - - - - - 730,347 Housing and community development - - - - - - - - - - Capital Outlay - - - - 830,300 - 21,354 - - 62,262 Debt Service: - Principal - - - - 71,598 - - - - - Interest - - - - 8,952 - - - - - Total Expenditures 1,267,905 14,000 9,500 - 3,179,717 358,401 357,118 147,293 949,430 792,609 Excess (Deficiency) of Revenues Over (Under) Expenditures (115,117) (1,657) (267) 54,397 (86,876) 101,227 42,744 (22,545) (441,991) (32,858) Other Financing Sources (Uses) Transfers in 105,183 - - - 45,000 - - 17,500 - - Transfers out (90,183) - - (49,715) - - - - - - Total Other Financing Sources (Uses) 15,000 - - (49,715) 45,000 - - 17,500 - - Net Change in Fund Balances (100,117) (1,657) (267) 4,682 (41,876) 101,227 42,744 (5,045) (441,991) (32,858) Fund Balances Beginning of Year 943,690 8,680 3,134 39,821 684,505 45,312 76,506 (55,886) 243,424 249,959 Fund Balances End of Year 843,573 $ 7,023 $ 2,867 $ 44,503 $ 642,629 $ 146,539 $ 119,250 $ (60,931) $ (198,567) $ 217,101 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds June 20,2012 92 Revenues Property taxes Special assessments Intergovernmental Charges for services Fines and forfeitures Private grants and donations Investment earnings Miscellaneous Total Revenues Expenditures Current: General government Public safety Public works Public health Social and economic services Cultural and recreation Housing and community development Capital Outlay Debt Service: Principal Interest Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances Beginning of Year Fund Balances End of Year Damages Public Econ Dev Economic Senior Developmental And Parks Library Archives 1 Mill Levy Dev (HR) Transit Health Citizens Disabled Judgements - $ - $ - $ 56,748 $ - $ 223,942 $ - $ 63,334 $ 50,490 $ 288,158 $ - - - 354 - 2,324 - - - 1,616 - 4,681 2,501 9,185 - 608,271 1,443,384 11,416 24,273 18,339 - 7,881 - 108,890 305,790 - - - - - - - - - - - - - 12,113 43,944 - - - 18,467 - - - - - 43 - 7,796 - - - - - 25 - 6,462 71 76,520 14,844 - - - 80,113 25 16,794 60,831 66,358 84,316 958,271 1,767,641 74,750 74,763 388,226 - - - - - - - - - 81,000 - - - - - - - - - - - - - - - 1,093,499 - - - - - - - - - - 2,043,883 - - - - - - - - - - 76,044 76,155 - 7,500 16,761 249,625 - - - - - - - - - - 68,000 228,604 - - - - - - - - - - 4,858 319 - - - - - - - - - - - - - - - - - - - - - - - 7,500 16,761 249,625 68,000 228,604 1,098,357 2,044,202 76,044 76,155 81,000 (7,475) 33 (188,794) (1,642) (144,288) (140,086) (276,561) (1,294) (1,392) 307,226 7,500 6,325 247,554 - - - - - - - - - - - - - (18,086) - - - 7,500 6,325 247,554 - - - (18,086) - - - 25 6,358 58,760 (1,642) (144,288) (140,086) (294,647) (1,294) (1,392) 307,226 18,575 20,748 21,021 10,595 2,441,993 245,212 (152,255) 14,398 14,995 (316,081) 18,600 $ 27,106 $ 79,781 $ 8,953 $ 2,297,705 $ 105,126 $ (446,902) $ 13,104 $ 13,603 $ (8,855) $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds June 20,2012 93 Revenues Property taxes Special assessments Intergovernmental Charges for services Fines and forfeitures Private grants and donations Investment earnings Miscellaneous Total Revenues Expenditures Current: General government Public safety Public works Public health Social and economic services Cultural and recreation Housing and community development Capital Outlay Debt Service: Principal Interest Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances Beginning of Year Fund Balances End of Year ARCO Planning Superfund Comprehensive Crime Land Junk Greenway Water Quality Uptown Reclamation Fire Insurance Control Planning Vehicle Project District Sidewalks Parking Projects 3,539,490 $ 888,197 $ - $ - $ - $ - $ - $ - $ - $ - $ 12,921 - - - - - - 21,648 15,339 - 1,097,448 38,467 36,510 14,856 48,135 - 40 - - - - - 24,300 - - - - - - - - - - - - - - - - - - - - - - - 55,482 - - - - 204 - - - - - - - - 20,568 - - - - - - - - - 4,670,427 926,868 60,810 14,856 48,135 - 55,522 21,648 15,339 - - 944,860 - 4,000 - - 57,686 - - - 4,203,861 - 65,981 - - - - - - - - - - - 44,055 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 410,470 - 2,525 - - - - - - - 109,801 - - - - - - - - - 6,068 - - - - - - - - - 4,730,200 944,860 68,506 4,000 44,055 - 57,686 - - - (59,773) (17,992) (7,696) 10,856 4,080 - (2,164) 21,648 15,339 - 443 - 8,750 - - - - - - - (443) - - - - - - - (17,500) - - - 8,750 - - - - - (17,500) - (59,773) (17,992) 1,054 10,856 4,080 - (2,164) 21,648 (2,161) - 513,524 149,467 124,564 32,007 25 (55,033) 145,379 (21,390) 3,243 60,016 453,751 $ 131,475 $ 125,618 $ 42,863 $ 4,105 $ (55,033) $ 143,215 $ 258 $ 1,082 $ 60,016 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds June 20,2012 94 Revenues Property taxes Special assessments Intergovernmental Charges for services Fines and forfeitures Private grants and donations Investment earnings Miscellaneous Total Revenues Expenditures Current: General government Public safety Public works Public health Social and economic services Cultural and recreation Housing and community development Capital Outlay Debt Service: Principal Interest Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances Beginning of Year Fund Balances End of Year Community URA Hard-Rock Development Montana Local Law Clark PIT Economic Community Mine Trust Block Grants Pole 911 CTEP DNRC Enforcement Tailings Watch ED Development Development Reserve Projects Institution Emergency Grants Grants Block Grant O & M Trust Program 1,548 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 25,428 - - - - - - - - - - 104 178,577 810,468 - - 245,223 308,174 155,372 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 156,537 493 454 - 45 555 - - - 372 25 6,125 350 - 12,620 - 39 4,112 - - - - 189,742 179,420 810,922 12,620 45 245,817 312,286 155,372 - 372 25 - - - - - - - 77,796 - - - - - - - - 267,244 - - - - - - - - - - - - - - - - - - - - 29,987 - - - - 3,512 - - - - - - - - - - - - - - - - - - - - - - - 1,936,977 276,315 - 2,421 - - - - - - - - 5,000 - - - - 321,826 79,988 - - - - - - - - - - - - - - - - - - - - - - - - - 1,936,977 281,315 - 2,421 29,987 267,244 321,826 157,784 - 3,512 - (1,747,235) (101,895) 810,922 10,199 (29,942) (21,427) (9,540) (2,412) - (3,140) 25 1,480,000 92,000 - 57,188 - - - - - - - (93,821) (57,188) - - - - - - - - 1,386,179 34,812 - 57,188 - - - - - - - (361,056) (67,083) 810,922 67,387 (29,942) (21,427) (9,540) (2,412) - (3,140) 25 8,293,839 231,489 5,139,369 63,832 175,696 344,747 3,543 (424) 783 124,146 179,091 7,932,783 $ 164,406 $ 5,950,291 $ 131,219 $ 145,754 $ 323,320 $ (5,997) $ (2,836) $ 783 $ 121,006 $ 179,116 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds June 20,2012 95 Revenues Property taxes Special assessments Intergovernmental Charges for services Fines and forfeitures Private grants and donations Investment earnings Miscellaneous Total Revenues Expenditures Current: General government Public safety Public works Public health Social and economic services Cultural and recreation Housing and community development Capital Outlay Debt Service: Principal Interest Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances Beginning of Year Fund Balances End of Year East Butte ARCO Renovation Anaconda Historic and County Department Montana Superfund ARCO ARCO ARCO Superfund Preservation Rehabilitation Land of Justice Historical Health Superfund Community Lead Residential Grant Agency Planning Grant Preservation Studies Land Mgt-GIS Readjustment Grant Metals - $ 63,325 $ - $ - $ - $ - $ - $ - $ - $ - $ - 1,726 - - - - - - - - - - - 135,397 20,001 - 64 - - 279 - - 6,262 2,747 - - - - - - - - - - - - - - - - - - - 1,300 - - 113,762 - - 641,157 2,601 15 - - - - - 18,529 44 - 3,042 30,050 - - - - - - - - 5,643 95,116 6,262 139,444 20,001 - 113,826 18,529 44 641,436 53,063 - - - - - 114,850 - - - - - - 134,419 - - - - - - - - - - - - - - - - - - - - - 5,990 - - - 709,791 - - - - - - - - - - - - - - 28,500 - - - - - - 83,580 - - - - - - - - 135,412 - - - 500 - - - - - - - - - - - - - - - - - - - - - 188,475 83,580 - 134,419 29,000 5,990 114,850 - - 709,791 (182,832) 11,536 6,262 5,025 (8,999) (5,990) (1,024) 18,529 44 (68,355) - 30,000 - 10,000 - - - - - - - (30,000) - - - - - - - - - - - 10,000 - - - - - - (182,832) 11,536 6,262 15,025 (8,999) (5,990) (1,024) 18,529 44 (68,355) 881,483 (324,180) 47,894 (2,722) (16,241) 41,286 7,950 662,386 22,418 (12,543) 698,651 $ (312,644) $ 54,156 $ 12,303 $ (25,240) $ 35,296 $ 6,926 $ 680,915 $ 22,462 $ (80,898) $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds June 20,2012 96 Revenues Property taxes Special assessments Intergovernmental Charges for services Fines and forfeitures Private grants and donations Investment earnings Miscellaneous Total Revenues Expenditures Current: General government Public safety Public works Public health Social and economic services Cultural and recreation Housing and community development Capital Outlay Debt Service: Principal Interest Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances Beginning of Year Fund Balances End of Year Natural Resources East Butte Total Damages RRA ARCO Superfund MT DOC- Nonmajor Greenway Revolving Redevelopment Storm Water NSP3 Special Revenue Project Loan Trust System Grant Funds - $ - $ - $ - $ - $ 7,869,919 $ - - - - - 1,271,343 2,206,929 - - 149 18,000 9,409,619 - - - - - 1,014,925 - - - - - 49,325 20,000 - - 4,181,110 - 5,096,236 - 7,228 16,456 - - 211,397 - - - 250 - 352,890 2,226,929 7,228 16,456 4,181,509 18,000 25,275,654 166,846 - - - 18,000 2,681,252 - - - - - 4,824,211 - - - 797,452 - 5,907,598 - - - - - 2,855,874 - - - - - 152,199 - - - - - 1,032,733 - - - - - 2,595,897 1,870,068 - - 3,167,704 - 6,912,586 - - - - - 181,399 - - - - - 15,020 2,036,914 - - 3,965,156 18,000 27,158,769 190,015 7,228 16,456 216,353 - (1,883,115) - - - - - 2,107,443 - (30,000) - - - (386,936) - (30,000) - - - 1,720,507 190,015 (22,772) 16,456 216,353 - (162,608) (387,658) 258,399 5,474,939 596,388 - 27,316,058 (197,643) $ 235,627 $ 5,491,395 $ 812,741 $ - $ 27,153,450 $ ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property - $ - $ 10,770 $ 10,770 $ Special assessments 988,613 988,613 1,123,030 134,417 Intergovernmental 5,639 5,639 18,988 13,349 Total Revenues 994,252 994,252 1,152,788 158,536 Expenditures Current: General government 446,908 446,908 415,538 31,370 Public works 1,081,634 1,081,634 838,767 242,867 Public health 13,600 13,600 13,600 - Capital Outlay - - - - Total Expenditures 1,542,142 1,542,142 1,267,905 274,237 Excess (Deficiency) of Revenues Over (Under) Expenditures (547,890) (547,890) (115,117) 432,773 Other Financing Sources (Uses) Transfers in 105,183 105,183 105,183 - Transfers out (90,414) (90,414) (90,183) 231 Total Other Financing Sources (Uses) 14,769 14,769 15,000 231 Net Change in Fund Balances $ (533,121) $ (533,121) (100,117) $ 433,004 Fund Balances Beginning of Year 943,690 Fund Balances End of Year 843,573 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Combined Special Improvement District Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 97 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Interest Reveneu - $ - $ - $ - $ Special assessmenets 14,000 14,000 12,343 (1,657) Total Revenues 14,000 14,000 12,343 (1,657) Expenditures Current: Public works 14,000 14,000 14,000 - (Deficiency) of Revenues (Under) Expenditures - $ - $ (1,657) (1,657) $ Fund Balances Beginning of Year 8,680 Fund Balances End of Year 7,023 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Divide Garbage Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 98 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Charges for services 10,000 $ 10,000 $ 9,016 $ (984) $ Special assessmenets - - 217 217 Total Revenues 10,000 10,000 9,233 (767) Expenditures Current: Public works 10,000 10,000 9,500 500 (Deficiency) of Revenues (Under) Expenditures - $ - $ (267) (267) $ Fund Balances Beginning of Year 3,134 Fund Balances End of Year 2,867 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Melrose Garbage Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 99 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Special assessments 45,000 $ 45,000 $ 54,397 $ 9,397 $ Other Financing (Uses) Transfers out - Blacktail Loop debt service fund (49,715) (49,715) (49,715) - Excess (Deficiency) of Revenues Over (Under) Expenditures (4,715) $ (4,715) $ 4,682 9,397 $ Fund Balances Beginning of Year 39,821 Fund Balances End of Year 44,503 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana SID #1025 Blacktail Loop Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 100 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 1,166,901 $ 1,166,901 $ 1,114,600 $ (52,301) $ Personal property - - 28,928 28,928 Motor vehicle 110,000 110,000 128,972 18,972 Intergovernmental 1,738,840 1,738,840 1,727,160 (11,680) Charges for Services - - 80 80 Miscellaneous - - 93,101 93,101 Total Revenues 3,015,741 3,015,741 3,092,841 77,100 Expenditures Current: Public works 2,384,376 2,372,721 2,268,867 103,854 Capital Outlay 768,645 830,300 830,300 - Debt Service Principal 71,599 71,599 71,598 1 Interest 8,953 8,653 8,952 (299) Total Expenditures 3,233,573 3,283,273 3,179,717 103,556 Excess (Deficiency) of Revenues Over (Under) Expenditures (217,832) (267,532) (86,876) 180,656 Other Financing Sources Transfers in: URA Fund 45,000 45,000 45,000 - Total Other Financing Sources 45,000 45,000 45,000 - Net Change in Fund Balances $ (172,832) $ (222,532) (41,876) $ 180,656 Fund Balances Beginning of Year 684,505 Fund Balances End of Year 642,629 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Road Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 101 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 425,924 $ 425,924 $ 405,845 $ (20,079) $ Personal property - - 9,817 9,817 Intergovernmental 43,733 43,733 43,438 (295) Miscellaneous - - 528 528 Total Revenues 469,657 469,657 459,628 (10,029) Expenditures Current: Public works 397,710 397,710 358,401 39,309 Capital Outlay 50,000 50,000 - 50,000 Total Expenditures 447,710 447,710 358,401 89,309 Excess of Revenues Over Expenditures 21,947 $ 21,947 $ 101,227 79,280 $ Fund Balances Beginning of Year 45,312 Fund Balances End of Year 146,539 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Bridge Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 102 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 241,968 $ 241,968 $ 231,974 $ (9,994) $ Personal property - - 7,891 7,891 Intergovernmental 11,969 11,969 21,133 9,164 Miscellaneous - - 300 300 Charges for services 100,000 100,000 138,564 38,564 Total Revenues 353,937 353,937 399,862 45,925 Expenditures Current: Public works 352,634 365,966 335,764 30,202 Capital Outlay 34,686 21,354 21,354 - Total Expenditures 387,320 387,320 357,118 30,202 Excess (Deficiency) of Revenues Over (Under) Expenditures (33,383) $ (33,383) $ 42,744 76,127 $ Fund Balances Beginning of Year 76,506 Fund Balances End of Year 119,250 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Noxious Weed Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 103 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 97 $ 97 $ 90 $ $ Charges for services 62,500 62,500 75,333 12,833 Fines and forfeitures 50,000 50,000 49,325 (675) Total Revenues 112,597 112,597 124,748 12,151 Expenditures Current: Public works 168,762 168,762 147,293 21,469 Excess (Deficiency) of Revenues Over (Under) Expenditures (56,165) (56,165) (22,545) 33,620 Other Financing Sources Transfers in: Uptown parking fund 17,500 17,500 17,500 - Total Other Financing Sources 17,500 17,500 17,500 - Net Change in Fund Balances $ (38,665) $ (38,665) (5,045) $ 33,620 Fund Balances Beginning of Year (55,886) Fund Balances End of Year (60,931) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Parking Commission Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 104 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 320,331 $ 320,331 $ 304,855 $ (15,476) $ Personal property - - 14,604 14,604 Motor vehicle 40,000 40,000 47,989 7,989 Intergovernmental 482,210 567,210 124,346 (442,864) Miscellaneous - - 1,377 1,377 Charges for services 12,000 11,000 14,268 3,268 Total Revenues 854,541 938,541 507,439 (431,102) Expenditures Current: General government 784,013 876,968 747,613 129,355 Public safety 159,700 154,825 152,706 2,119 Public Health 61,571 61,618 49,111 12,507 Total Expenditures 1,005,284 1,093,411 949,430 143,981 (Deficiency) of Revenues (Under) Expenditures (150,743) (154,870) (441,991) (287,121) Other Financing (Uses) Transfers out: General fund - - - - Net Change in Fund Balances (441,991) Fund Balances Beginning of Year 243,424 Fund Balances End of Year (198,567) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana District Court Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 105 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 404,832 $ 404,832 $ 381,511 $ (23,321) $ Personal property - - 6,931 6,931 Intergovernmental 38,573 38,573 38,221 (352) Charges for services 292,250 294,250 313,154 18,904 Private grants and donations - - 8,901 8,901 Rent 8,640 8,640 8,640 - Miscellaneous - - 2,393 2,393 Total Revenues 744,295 746,295 759,751 13,456 Expenditures Current: Culture and recreation 827,895 831,732 730,347 101,385 Capital Outlay 64,100 62,263 62,262 1 Total Expenditures 891,995 893,995 792,609 101,386 Excess (Deficiency) of Revenues Over (Under) Expenditures (147,700) $ (147,700) $ (32,858) 114,842 $ Fund Balances Beginning of Year 249,959 Fund Balances End of Year 217,101 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Civic Center Bond Issue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 106 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Miscellaneous - $ - $ 25 $ 25 $ Expenditures Current: Culture and recreation 11,529 11,529 7,500 4,029 Excess (Deficiency) of Revenues Over (Under) Expenditures (11,529) (11,529) (7,475) 4,054 Other Financing (Sources/Uses) Transfers in - - 7,500 7,500 Net Change in Fund Balances $ (11,529) $ (11,529) 25 $ 11,554 Fund Balances Beginning of Year 18,575 Fund Balances End of Year 18,600 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Parks Fund Schedule of Expenditures and Changes in Fund Balances - Budget and Actual 107 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 1,204 $ 1,204 $ 4,681 $ 3,477 $ Private grants and donations 5,000 5,000 12,113 7,113 Total Revenues 6,204 6,204 16,794 10,590 Expenditures Current: Culture and recreation 23,553 23,553 16,761 6,792 Excess (Deficiency) of Revenues Over (Under) Expenditures (17,349) (17,349) 33 17,382 Other Financing Sources Transfers in: General fund 6,325 6,325 6,325 - Net Change in Fund Balances $ (11,024) $ (11,024) 6,358 $ 17,382 Fund Balances Beginning of Year 20,748 Fund Balances End of Year 27,106 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Library Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 108 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 171 $ 171 $ 2,501 $ 2,330 $ Charges for services 5,500 5,500 7,881 2,381 Private grants and donations 30,000 30,000 43,944 13,944 Miscellaneous Revenue 3,000 3,000 6,462 3,462 Investment earnings 50 50 43 Total Revenues 38,721 38,721 60,831 22,110 Expenditures Current: Culture and recreation 273,015 273,015 249,625 23,390 Capital Outlay - - - - Total Expenditures 273,015 273,015 249,625 23,390 Excess (Deficiency) of Revenues Over (Under) Expenditures (234,294) (234,294) (188,794) 45,500 Other Financing Sources Transfers in: Urban revitalization agency fund 15,000 15,000 15,000 - General fund 199,000 232,554 232,554 - Total Other Financing Sources 214,000 247,554 247,554 - Net Change in Fund Balances $ (20,294) $ 13,260 58,760 $ 45,500 Fund Balances Beginning of Year 21,021 Fund Balances End of Year 79,781 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Public Archives Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 109 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 58,158 $ 58,158 $ 55,150 $ (3,008) $ Personal property - - 1,598 1,598 Miscellaneous - - 71 71 Special assessments - - 354 354 Intergovernmental 9,247 9,247 9,185 (62) Total Revenues 67,405 67,405 66,358 (1,047) Expenditures Current: Housing and community development 68,000 68,000 68,000 - (Deficiency) of Revenues (Under) Expenditures (595) $ (595) $ (1,642) (1,047) $ Fund Balances Beginning of Year 10,595 Fund Balances End of Year 8,953 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Economic Development 1 Mill Levy Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 110 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 16,000 $ 16,000 $ 7,796 $ (8,204) $ Miscellaneous - - 76,520 76,520 Total Revenues 16,000 16,000 84,316 68,316 Expenditures Current: Housing and community development 530,000 530,000 228,604 301,396 (Deficiency) of Revenues (Under) Expenditures (514,000) $ (514,000) $ (144,288) 293,192 $ Fund Balances Beginning of Year 2,441,993 Fund Balances End of Year 2,297,705 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Economic Development Fund (HR) Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 111 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 215,108 $ 215,108 $ 209,812 $ (5,296) $ Personal property - - 14,130 14,130 Special assessments - - 2,324 2,324 Intergovernmental 664,814 664,814 608,271 (56,543) Charges for services 68,169 68,169 96,890 28,721 Rent 12,000 12,000 12,000 - Miscellaneous - - 14,844 14,844 Total Revenues 960,091 960,091 958,271 (1,820) Expenditures Current: Public works 1,229,443 1,223,613 1,093,499 130,114 Capital Outlay - 5,830 4,858 972 Debt Service Principal 40,000 40,000 - 40,000 Total Expenditures 1,269,443 1,269,443 1,098,357 171,086 Excess (Deficiency) of Revenues Over (Under) Expenditures $ (309,352) $ (309,352) (140,086) $ 169,266 Fund Balances Beginning of Year 245,212 Fund Balances End of Year 105,126 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Transit Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 112 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 1,567,927 $ 1,735,864 $ 1,443,384 $ (292,480) $ Charges for services 408,682 408,682 305,790 (102,892) Miscellaneous - - - - Private grants and donations 28,000 28,000 18,467 (9,533) Total Revenues 2,004,609 2,172,546 1,767,641 (404,905) Expenditures Current: Public health 2,337,498 2,505,110 2,043,883 461,227 Capital Outlay - 325 319 6 Total Expenditures 2,337,498 2,505,435 2,044,202 461,233 (Deficiency) of Revenues (Under) Expenditures (332,889) $ (332,889) $ (276,561) (866,138) $ Other Financing Sources Transfers Out: General Fund - (18,086) (18,086) - Net Change in Fund Balances (332,889) $ (350,975) $ (294,647) (866,138) $ Fund Balances Beginning of Year (152,255) Fund Balances End of Year (446,902) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Health Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 113 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes Real property 64,163 $ 64,163 $ 61,414 $ (2,749) $ Personal property - - 1,920 1,920 Intergovernmental 11,494 11,494 11,416 (78) Total Revenues 75,657 75,657 74,750 (907) Expenditures Current: Social and economic services 76,044 76,044 76,044 - (Deficiency) of Revenues (Under) Expenditures (387) $ (387) $ (1,294) (907) $ Fund Balances Beginning of Year 14,398 Fund Balances End of Year 13,104 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Senior Citizens Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 114 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes Real property 51,048 $ 51,048 $ 49,003 $ (2,045) $ Personal property - - 1,487 1,487 Intergovernmental 24,302 24,302 24,273 (29) Total Revenues 75,350 75,350 74,763 (587) Expenditures Current: Social and economic services 76,698 76,698 76,155 543 (Deficiency) of Revenues (Under) Expenditures (1,348) $ (1,348) $ (1,392) (44) $ Fund Balances Beginning of Year 14,995 Fund Balances End of Year 13,603 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Developmentally Disabled Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 115 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes Real property 297,616 $ 297,616 $ 283,591 $ (14,025) $ Personal property - - 4,567 4,567 Special assessments - - 1,616 1,616 Intergovernmental 18,464 18,464 18,339 (125) Miscellaneous - - 80,113 80,113 Total Revenues 316,080 316,080 388,226 72,146 Expenditures Current: General government - - 81,000 (81,000) Excess (Deficiency) of Revenues Over (Under) Expenditures 316,080 $ 316,080 $ 307,226 (8,854) $ Fund Balances Beginning of Year (316,081) Fund Balances End of Year (8,855) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Damages and Judgments Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 116 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 3,869,702 $ 3,869,702 $ 3,439,745 $ (429,957) $ Personal property - - 99,745 99,745 Special assessments - - 12,921 12,921 Intergovernmental 1,039,640 1,039,640 1,097,448 57,808 Miscellaneous - - 20,568 20,568 Total Revenues 4,909,342 4,909,342 4,670,427 (238,915) Expenditures Current: Public safety 4,209,613 4,308,040 4,203,861 104,179 Capital Outlay 400,000 410,475 410,470 5 Debt Service: Principal 109,801 109,801 109,801 - Interest 6,068 6,068 6,068 - Total Expenditures 4,725,482 4,834,384 4,730,200 104,184 (Deficiency) of Revenues (Under) Expenditures 183,860 74,958 (59,773) (134,731) Other Financing Sources Transfers In 443 443 443 - Transfers Out (443) (443) (443) - Other Financing Sources - - - - Net Change in Fund Balances $ 183,860 $ 74,958 (59,773) $ (134,731) Fund Balances Beginning of Year 513,524 Fund Balances End of Year 453,751 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Fire Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 117 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes Real property 911,070 $ 911,070 $ 862,991 $ (48,079) $ Personal property - - 25,206 25,206 Intergovernmental 38,731 38,731 38,467 (264) Investment earnings - - 204 204 Total Revenues 949,801 949,801 926,868 (22,933) Expenditures Current: General government 967,266 967,266 944,860 22,406 (Deficiency) of Revenues (Under) Expenditures (17,465) $ (17,465) $ (17,992) (527) $ Fund Balances Beginning of Year 149,467 Fund Balances End of Year 131,475 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Comprehensive Insurance Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 118 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 71,728 $ 161,728 $ 36,510 $ (125,218) $ Charges for services 10,000 10,000 24,300 14,300 Total Revenues 81,728 171,728 60,810 (110,918) Expenditures Current: Public safety 89,413 89,413 65,981 23,432 Capital 77,400 77,400 2,525 74,875 Total Expenditures 166,813 166,813 68,506 98,307 Excess (Deficiency) of Revenues Over (Under) Expenditures (85,085) 4,915 (7,696) (12,611) Other Financing Sources Transfers in - General Fund 8,750 8,750 8,750 - Net Change in Fund Balances $ (76,335) $ 13,665 1,054 $ (12,611) Fund Balances Beginning of Year 124,564 Fund Balances End of Year 125,618 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Crime Control Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 119 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 4,348 $ 4,348 $ 14,856 $ 10,508 $ Expenditures Current: General Government 4,000 4,000 4,000 - Excess of Revenues Over Expenditures 348 $ 348 $ 10,856 10,508 $ Fund Balances Beginning of Year 32,007 Fund Balances End of Year 42,863 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Land Planning Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 120 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 48,143 $ 48,143 $ 48,135 $ $ Expenditures Current: Public works 48,117 48,117 44,055 4,062 Excess of Revenues Over Expenditures 26 $ 26 $ 4,080 4,054 $ Fund Balances Beginning of Year 25 Fund Balances End of Year 4,105 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Junk Vehicle Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 121 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental - $ - $ - $ - $ Expenditures Current: General government - - - - Capital Outlay - - - - Total Expenditures - - - - (Deficiency) of Revenues (Under) Expenditures - $ - $ - - $ Fund Balances Beginning of Year (55,033) Fund Balances End of Year (55,033) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Arco Planning Grant Fund Silver Bow Creek Greenway Project Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 122 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 40 $ 40 $ 40 $ - $ Private grants and donations 60,724 60,724 55,482 (5,242) Total Revenues 60,764 60,764 55,522 (5,242) Expenditures Current: General government 60,724 60,724 57,686 3,038 Excess (Deficiency) of Revenues Over (Under) Expenditures 40 $ 40 $ (2,164) (2,204) $ Fund Balances Beginning of Year 145,379 Fund Balances End of Year 143,215 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Superfund Water Quality District Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 123 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Special assessments 25,500 $ 25,500 $ 21,648 $ (3,852) $ Fund Balances Beginning of Year (21,390) Fund Balances End of Year (21,390) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Sidewalks Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 124 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Special assessments 15,000 $ 15,000 $ 15,339 $ 339 $ Other Financing (Uses) Transfers out - parking commission fund (17,500) (17,500) (17,500) - Net Change in Fund Balances $ (2,500) $ (2,500) (2,161) $ 339 Fund Balances Beginning of Year 3,243 Fund Balances End of Year 1,082 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Uptown Parking Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 125 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental - $ - $ - $ - $ Expenditures Current: Conservation of Natural Resources - - - - Capital Outlay - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over (Under) Expenditures - $ - $ - - $ Fund Balances Beginning of Year 60,016 Fund Balances End of Year 60,016 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Reclamation Projects Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 126 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Real Property 500 $ 500 $ 1,548 $ 1,048 $ Special assessments 40,000 40,000 25,428 (14,572) Intergovernmental 105 105 104 Investment earnings 154,000 154,000 156,537 2,537 Miscellaneous 500 500 6,125 5,625 Total Revenues 195,105 195,105 189,742 (5,363) Expenditures Current: Housing and community development 6,013,947 6,313,947 1,936,977 4,376,970 Excess (Deficiency) of Revenues Over (Under) Expenditures (5,818,842) (6,118,842) (1,747,235) 4,371,607 Other Financing Sources (Uses) Transfers in: Tax increment bond fund 2,383,603 2,383,603 1,480,000 (903,603) Transfers out: Road fund (45,000) (45,000) (45,000) - General fund (33,821) (33,821) (33,821) - Public archives fund (15,000) (15,000) (15,000) - East Butte RRA (800,000) (500,000) - 500,000 Total Other Financing Sources (Uses) 1,489,782 1,789,782 1,386,179 (403,603) Net Change in Fund Balances $ (4,329,060) $ (4,329,060) (361,056) $ 3,968,004 Fund Balances Beginning of Year 8,293,839 Fund Balances End of Year 7,932,783 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Urban Revitalization Agency Economic Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 127 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 219,529 $ 249,529 $ 178,577 $ (70,952) $ Rent 350 350 350 - Investment earnings 530 530 493 (37) Total Revenues 220,409 250,409 179,420 (70,989) Expenditures Current: Housing and community development 542,080 567,080 276,315 290,765 Capital Outlay - 5,000 5,000 - Total Expenditures 542,080 572,080 281,315 290,765 Excess (Deficiency) of Revenues Over (Under) Expenditures (321,671) (321,671) (101,895) (361,754) Other Financing Sources: Transfers in: Community development block grant fund 92,000 92,000 92,000 - Transfers 0ut: CDBG Revolving Loan Fund (57,188) (57,188) (57,188) - Total Other Financing Sources 34,812 34,812 34,812 - Net Change in Fund Balances $ (286,859) $ (286,859) (67,083) $ (361,754) Fund Balances Beginning of Year 231,489 Fund Balances End of Year 164,406 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Community Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 128 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 650,000 $ 650,000 $ 810,468 $ 160,468 $ Investment earnings 1,000 1,000 454 (546) Total Revenues 651,000 $ 651,000 $ 810,922 159,922 $ Fund Balances Beginning of Year 5,139,369 Fund Balances End of Year 5,950,291 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Hard Rock Mine Trust Reserve Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 129 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Miscellaneous - $ - $ 12,620 $ 12,620 $ Expenditures Current: Housing and community development 65,835 65,835 2,421 63,414 Excess (Deficiency) of Revenues Over (Under) Expenditures (65,835) (65,835) 10,199 76,034 Other Financing (Uses) Transfers In - community development fund 57,188 57,188 57,188 - Net Change in Fund Balances $ (8,647) $ (8,647) 67,387 $ 76,034 Fund Balances Beginning of Year 63,832 Fund Balances End of Year 131,219 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Community Development Block Grant Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 130 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 4,000 $ 4,000 $ 45 $ (3,955) $ Expenditures Current: Public Health 45,000 45,000 29,987 15,013 Excess (Deficiency) of Revenues Over (Under) Expenditures (41,000) $ (41,000) $ (29,942) (11,058) $ Fund Balances Beginning of Year 175,696 Fund Balances End of Year 145,754 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana MT Pole Institutional Control Schedule of Revenues and Changes in Fund Balances - Budget and Actual 131 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 296,113 $ 336,113 $ 245,223 $ (90,890) $ Investment earnings 426 426 555 129 Miscellaneous 29 29 39 10 Total Revenues 296,568 336,568 245,817 (90,751) Expenditures Current: Public safety 305,681 363,681 267,244 96,437 Capital Outlay 60,000 42,000 - 42,000 Total Expenditures 365,681 405,681 267,244 138,437 Excess (Deficiency) of Revenues Over (Under) Expenditures (69,113) $ (69,113) $ (21,427) 47,686 $ Fund Balances Beginning of Year 344,747 Fund Balances End of Year 323,320 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana 911 Emergency Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 132 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 1,456,127 $ 1,456,127 $ 308,174 $ (1,147,953) $ Miscellaneous Revenue 4,112 $ Total Revenues 1,456,127 1,456,127 312,286 (1,147,953) Expenditures Current: General government 242,241 242,241 - 242,241 Capital Outlay 1,250,000 1,250,000 321,826 928,174 Total Expenditures 1,492,241 1,492,241 321,826 1,170,415 Excess (Deficiency) of Revenues Over (Under) Expenditures (36,114) (36,114) (9,540) 22,462 Other Financing Sources Transfers in: Arco fund 134,200 134,200 - (134,200) Net Change in Fund Balances $ 98,086 $ 98,086 (9,540) $ (111,738) Fund Balances Beginning of Year 3,543 Fund Balances End of Year (5,997) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Community Transportation Enhancement Program Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 133 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 605,162 $ 605,162 $ 155,372 $ (449,790) $ Private grants and donations - - - - Total Revenues 605,162 605,162 155,372 (449,790) Expenditures Current: General government 284,965 287,193 77,796 209,397 Capital Outlay 332,217 329,989 79,988 250,001 Total Expenditures 617,182 617,182 157,784 459,398 Excess (Deficiency) of Revenues Over (Under) Expenditures (12,020) $ (12,020) $ (2,412) 9,608 $ Fund Balances Beginning of Year (424) Fund Balances End of Year (2,836) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Department of Natural Resource and Conservation Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 134 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental - $ - $ - $ - $ Expenditures Current: Public safety - - - - Capital Outlay - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over (Under) Expenditures - $ - $ - - $ Fund Balances Beginning of Year 783 Fund Balances End of Year 783 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Local Law Enforcement Block Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 135 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 350 $ 350 $ 372 $ 22 $ Expenditures Current: Public Health 8,000 8,000 3,512 4,488 (Deficiency) of Revenues (Under) Expenditures (7,650) $ (7,650) $ (3,140) (4,466) $ Fund Balances Beginning of Year 124,146 Fund Balances End of Year 121,006 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Clark Tailings Operations & Maintenance Trust Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 136 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings - $ - $ 25 $ 25 $ Expenditures Current: General government 15,600 15,600 - 15,600 Excess (Deficiency) of Revenues Over (Under) Expenditures (15,600) $ (15,600) $ 25 15,625 $ Fund Balances Beginning of Year 179,091 Fund Balances End of Year 179,116 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana PIT Watch ED Program Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 137 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 2,000 $ 2,000 $ 2,601 $ 601 $ Miscellaneous Revenue - - 3,042 3,042 Intergovernmental 13 13 - (13) Total Revenues 2,013 2,013 5,643 3,630 Expenditures Current: General government 277,625 95,625 53,063 42,562 Capital Outlay - 182,000 135,412 46,588 Total Expenditures 277,625 277,625 188,475 89,150 Excess (Deficiency) of Revenues Over (Under) Expenditures (275,612) $ (275,612) $ (182,832) (85,520) $ Fund Balances Beginning of Year 881,483 Fund Balances End of Year 698,651 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Arco Historic Preservation Grant Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 138 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 75,346 $ 75,346 $ 60,863 $ (14,483) $ Personal property - - 2,462 2,462 Special assessments - - 1,726 1,726 Investment earnings 38 38 15 (23) Miscellaneous - - 30,050 30,050 Total Revenues 75,384 75,384 95,116 19,732 Expenditures Current: Housing and community development 107,809 107,809 83,580 24,229 Excess (Deficiency) of Revenues Over (Under) Expenditures (32,425) (32,425) 11,536 43,961 Other Financing Sources (Uses) Transfer from revolving loan fund 30,000 30,000 30,000 - Transfer to URA (30,000) (30,000) (30,000) - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances $ (32,425) $ (32,425) 11,536 $ 43,961 Fund Balances Beginning of Year (324,180) Fund Balances End of Year (312,644) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana East Butte RRA Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 139 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Charges for services 6,500 $ 6,500 $ 6,262 $ (238) $ Fund Balances Beginning of Year 47,894 Fund Balances End of Year 54,156 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana County Land Planning Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 140 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 185,126 $ 185,126 $ 135,397 $ (49,729) $ Private Grants & Donations - - 1,300 1,300 Charges For Services - - 2,747 2,747 Total Revenues 185,126 185,126 139,444 (45,682) Expenditures Current: Public safety 228,420 228,420 134,419 (94,001) Excess (Deficiency) of Revenues Over (Under) Expenditures (43,294) (43,294) 5,025 48,319 Other Financing Sources Transfer from DUI Court 10,000 100,000 10,000 (90,000) Net Change in Fund Balances $ (33,294) $ 56,706 (4,975) $ (41,681) Fund Balances Beginning of Year (2,722) Fund Balances End of Year (7,697) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Department of Justice Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 141 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 212,000 $ 212,000 $ 20,001 $ (191,999) $ Expenditures Current: Culture and recreation 57,000 57,000 28,500 28,500 Capital Outlay 155,000 155,000 500 154,500 Totall Expenditures 212,000 212,000 29,000 183,000 Excess (Deficiency) of Revenues Over (Under) Expenditures - $ - $ (8,999) (8,999) $ Fund Balances Beginning of Year (16,240) Fund Balances End of Year (25,239) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Montana Historical Preservation Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 142 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Private grants and donations 25,000 $ 25,000 $ - $ (25,000) $ Expenditures Current: Public Health 25,000 25,000 5,990 19,010 (Deficiency) of Revenues (Under) Expenditures - $ - $ (5,990) (5,990) $ Fund Balances Beginning of Year 41,286 Fund Balances End of Year 35,296 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Superfund Health Studies Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 143 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 65 $ 65 $ 64 $ $ Private grants and donations 121,449 121,449 113,762 (7,687) Total Revenues 121,514 121,514 113,826 (7,688) Expenditures Current: General government 121,449 121,449 114,850 6,599 Excess (Deficiency) of Revenues Over (Under) Expenditures 65 $ 65 $ (1,024) (1,089) $ Fund Balances Beginning of Year 7,950 Fund Balances End of Year 6,926 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana ARCO Superfund Land Management/GIS Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 144 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 2,000 $ 2,000 $ 18,529 $ 16,529 $ Fund Balances Beginning of Year 662,386 Fund Balances End of Year 680,915 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Anaconda-ARCO Community Readjustment Schedule of Revenues and Changes in Fund Balances - Budget and Actual 145 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings - $ - $ 44 $ 44 $ Fund Balances Beginning of Year 22,418 Fund Balances End of Year 22,462 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Arco Lead Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 146 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 281 $ 281 $ 279 $ $ Private grants and donations 657,844 732,844 641,157 (91,687) Total Revenues 658,125 733,125 641,436 (91,689) Expenditures Current: Public health 657,844 732,844 709,791 23,053 Excess (Deficiency) of Revenues Over (Under) Expenditures 281 $ 281 $ (68,355) (114,742) $ Fund Balances Beginning of Year (12,543) Fund Balances End of Year (80,898) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Superfund Residential Metals Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 147 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Private Grants & Donations - $ - $ 20,000 $ 20,000 $ Intergovernmental 6,138,955 6,138,955 2,206,929 (3,932,026) Total Revenues 6,138,955 6,138,955 2,226,929 (3,912,026) Expenditures Current: General government 624,023 429,925 166,846 263,079 Capital outlay 5,929,429 6,123,527 1,870,068 4,253,459 Total Expenditures 6,553,452 6,553,452 2,036,914 4,516,538 Excess (Deficiency) of Revenues Over (Under) Expenditures (414,497) $ (414,497) $ 190,015 604,512 $ Fund Balances Beginning of Year - As Restated (387,658) Fund Balances End of Year (197,643) $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana NRDP Greenway Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 148 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 7,236 $ 7,236 $ 7,228 $ $ Other Financing (Uses) Transfers out - East butte RRA (32,195) (32,195) (30,000) 2,195 Net Change in Fund Balances $ (24,959) $ (24,959) 37,228 $ 2,187 Fund Balances Beginning of Year 258,399 Fund Balances End of Year 295,627 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana East Butte RRA Revolving Loan Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 149 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 17,000 $ 17,000 $ 16,456 $ (544) $ Fund Balances Beginning of Year 5,474,939 Fund Balances End of Year 5,491,395 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Arco Redevelopment Trust Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 150 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 374 $ 374 $ 149 $ (225) $ Miscellaneous revenue - - 250 250 Private grants and donations 5,324,076 5,324,450 4,181,110 (1,143,340) Total Revenues 5,324,450 5,324,824 4,181,509 (1,143,315) Expenditures Current: Public works 1,081,084 1,086,344 797,452 288,892 Capital Outlay 4,242,994 4,237,734 3,167,704 1,070,030 Total Expenditures 5,324,078 5,324,078 3,965,156 1,358,922 Excess of Revenues Over Expenditures 372 $ 746 $ 216,353 215,607 $ Fund Balances Beginning of Year 596,388 Fund Balances End of Year 812,741 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Superfund Stormwater System Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 151 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental - $ - $ 18,000 $ 18,000 $ Expenditures Current: General government 2,149,000 2,149,000 18,000 2,131,000 Capital Outlay - - - - Total Expenditures 2,149,000 2,149,000 18,000 2,131,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,149,000) $ (2,149,000) $ - (2,113,000) $ Fund Balances Beginning of Year - Fund Balances End of Year - $ City and County of Butte-Silver Bow, Montana MT Dept of Commerce NSP3 Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2012 152 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Debt Service Funds LEA Detention Total Tax Civic Center and GO Nonmajor Increment SID Center Adminstration Ladder Truck Bonds Debt Service Bond Revolving Bond Issue Projects Debt Service Archives Refunding ASIMI Bond Funds Assets Cash and cash equivalents 199,692 $ 84,746 $ 17,899 $ 72,168 $ 10,179 $ 53,351 $ 139,682 $ 1,876,096 $ 2,453,813 $ Investments 410 - - - - - - - 410 Restricted assets - investments 166,812 - - - - - - 405,000 571,812 Property taxes receivable 151,477 - 15,560 84,470 11,415 42,649 - - 305,571 Total Assets 518,391 $ 84,746 $ 33,459 $ 156,638 $ 21,594 $ 96,000 $ 139,682 $ 2,281,096 $ 3,331,606 $ Liabilities and Fund Balances Liabilities Deferred revenue 151,477 - 15,560 84,678 11,415 42,649 - - 305,779 Fund Balances Restricted 155,492 84,746 17,899 71,960 10,179 53,351 139,682 2,281,096 2,814,405 Assigned 211,422 - - - - - - 211,422 Total Fund Balances 366,914 84,746 17,899 71,960 10,179 53,351 139,682 2,281,096 3,025,827 Total Liabilities & Fund Balances 518,391 $ 84,746 $ 33,459 $ 156,638 $ 21,594 $ 96,000 $ 139,682 $ 2,281,096 $ 3,331,606 $ June 30, 2012 153 ---PAGE BREAK--- LEA Detention Total Tax Civic Center and Ladder GO Nonmajor Increment SID Center Adminstration Truck Archives Bonds Debt Service Bond Revolving Bond Issue Projects Bond Issue Bond Issue Refunding ASiMI Bond Funds Property taxes 573,895 $ - $ 164,959 $ 863,150 $ 116,753 $ 417,417 $ - $ - $ 2,136,174 $ Intergovernmental 255,421 - 22,632 - - 15,572 - - 293,625 Miscellaneous 565,007 - - - - - - - 565,007 Investment earnings 1,243 - - 141 - - - - 1,384 Total Revenues 1,395,566 - 187,591 863,291 116,753 432,989 - 2,996,190 Expenditures Current: Public Safety - - - 1,200 - 1,200 Culture and recreation - - 750 - - 550 - - 1,300 Housing & Community Development - - - - - - - 1,396 1,396 Debt Service: Principal retirement 65,000 50,000 125,000 565,000 100,214 255,000 1,150,000 2,310,214 Interest and fiscal charges 19,312 5,301 35,014 617,876 12,210 282,370 648,821 1,620,904 Bond issuance costs - - - 95,050 - - 37,600 - 132,650 Total Expenditures 84,312 55,301 160,764 1,279,126 112,424 537,920 37,600 1,800,217 4,067,664 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,311,254 (55,301) 26,827 (415,835) 4,329 (104,931) (37,600) (1,800,217) (1,071,474) Other Financing Sources (Uses) Issuance of tax increment bonds - - - - - - - 405,000 405,000 Bond premium - - - 355,770 - - - - 355,770 Proceeds from general obligation refunding bonds - - 1,261,280 8,199,820 - - 43,900 - 9,505,000 Payment to refunded bond escrow agent - - (1,261,280) (8,098,720) - - - - (9,360,000) Transfers in - 49,715 - - - 156,292 133,382 1,919,249 2,258,638 Transfers out (1,450,000) - (32,170) (101,212) - - - - (1,583,382) Total Other Financing Sources (Uses) (1,450,000) 49,715 (32,170) 355,658 - 156,292 177,282 2,324,249 1,581,026 Net Change in Fund Balances (138,746) (5,586) (5,343) (60,177) 4,329 51,361 139,682 524,032 509,552 Fund Balances Beginning of Year 505,660 90,332 23,242 132,137 5,850 1,990 - 1,757,064 2,516,275 Fund Balances End of Year 366,914 $ 84,746 $ 17,899 $ 71,960 $ 10,179 $ 53,351 $ 139,682 $ 2,281,096 $ 3,025,827 $ City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds For the Fiscal Year Ended June 30, 2012 154 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 1,072,000 $ 1,072,000 $ 573,895 $ (498,105) $ Tax title and property tax sale 2,500 2,500 - (2,500) Intergovernmental 283,801 283,801 255,421 (28,380) Investment earnings 2,500 2,500 1,243 (1,257) Miscellaneous - - 565,007 565,007 Total Revenues 1,360,801 1,360,801 1,395,566 34,765 Expenditures Debt Service: Principal 65,000 65,000 65,000 - Interest 19,313 19,313 19,312 1 Total Expenditures 84,313 84,313 84,312 1 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,276,488 1,276,488 1,311,254 34,766 Other Financing (Uses) Transfers out: Urban revitalization agency economic development fund (1,553,603) (1,553,603) (1,450,000) - Net Changes in Fund Balances (277,115) $ (277,115) $ (138,746) 34,766 $ Fund Balances Beginning of Year 505,660 Fund Balances End of Year 366,914 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Tax Increment Bond Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 155 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Debt Service: Principal 50,000 $ 50,000 $ 50,000 $ - $ Interest 5,303 5,303 5,301 2 Total Expenditures 55,303 55,303 55,301 2 Other Financing Sources Transfers in: Combined special improvement district 49,715 49,715 49,715 - Net Change in Fund Balances 5,588 $ 5,588 $ (5,586) 2 $ Fund Balances Beginning of Year 90,332 Fund Balances End of Year 84,746 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana SID Revolving Fund Schedule of Expenditures and Changes in Fund Balances - Budget and Actual 156 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes Real property 170,068 $ 170,068 $ 160,314 $ (9,754) $ Personal property - - 4,645 4,645 Intergovernmental 22,789 22,789 22,632 (157) Total Revenues 192,857 192,857 187,591 (5,266) Expenditures Current: Culture and recreation 1,000 750 750 - Debt Service: Principal 125,000 125,000 125,000 - Interest 66,934 35,014 35,014 - Total Expenditures 192,934 160,764 160,764 - (Deficiency) of Revenues (Under) Expenditures (77) 32,093 26,827 (5,266) Other Financing Sources (Uses) Issuance of general obligation refunding bonds - 1,261,280 1,261,280 - Payment to refunded bond escrow agent - (1,240,000) (1,261,280) - Transfers out - (32,170) (32,170) - Other Financing Sources (Uses) - (10,890) (32,170) - Net Change in Fund Balances (77) $ 21,203 $ (5,343) (5,266) $ Fund Balances Beginning of Year 23,242 Fund Balances End of Year 17,899 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Civic Center Bond Issue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 157 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 878,656 $ 878,656 $ 837,052 $ (41,604) $ Personal property - - 26,098 26,098 Investment earnings - - 141 141 Total Revenues 878,656 878,656 863,291 (15,365) Expenditures Current: Public safety 1,350 1,200 1,200 - Debt Service: Principal 565,000 565,000 565,000 - Interest 357,118 256,056 617,876 (361,820) Bond issuance costs - 95,050 95,050 - Total Expenditures 923,468 917,306 1,279,126 (361,820) (Deficiency) of Revenues (Under) Expenditures (44,812) (38,650) (415,835) (377,185) Other Financing Sources (Uses) Issuance of general obligation refunding bonds - 8,199,820 8,199,820 - Bond premiums - 355,770 355,770 - Payment to refunded bond escrow agent - (8,460,540) (8,098,720) - Transfers out - (101,212) (101,212) - Total Other Financing Sources (Uses) - (6,162) 355,658 - Net Change in Fund Balance (44,812) $ (44,812) $ (60,177) (377,185) $ Fund Balances Beginning of Year 132,137 Fund Balances End of Year 71,960 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana LEA Detention Center & Administration Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 158 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 118,950 $ 118,950 $ 112,700 $ (6,250) $ Personal property - - 3,330 3,330 Special assessments - - 723 723 Total Revenues 118,950 118,950 116,753 (2,197) Expenditures Debt Service: Principal 100,214 100,214 100,214 - Interest 12,211 12,211 12,210 1 Total Expenditures 112,425 112,425 112,424 1 Excess (Deficiency) of Revenues Over (Under) Expenditures 6,525 $ 6,525 $ 4,329 (2,196) $ Fund Balances Beginning of Year 5,850 Fund Balances End of Year 10,179 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Ladder Truck Bond Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 159 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 421,514 $ 421,514 $ 401,308 $ (20,206) $ Personal property - - 16,109 16,109 Intergovernmental 11,898 11,898 15,572 3,674 Total Revenues 433,412 433,412 432,989 (423) Expenditures Current: Cultural and recreation 1,200 1,200 550 650 Debt Service: Principal 255,000 255,000 255,000 - Interest 282,371 282,371 282,370 1 Total Expenditures 538,571 538,571 537,920 651 Excess (Deficiency) of Revenues Over (Under) Expenditures (105,159) (105,159) (104,931) 228 Other Financing Sources Transfers In 156,292 156,292 156,292 - Net Change in Fund Balance 51,133 $ 51,133 $ 51,361 228 $ Fund Balances Beginning of Year 1,990 Fund Balances End of Year 53,351 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Archives Bond Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 160 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Expenditures Debt Service: Bond issuance costs - $ 43,900 $ 37,600 $ 6,300 $ Other Financing Sources Proceeds from tax increment bonds 43,900 43,900 43,900 - Transfers In - - 133,382 133,382 Total Other Financing Sources 43,900 43,900 177,282 133,382 Net Change in Fund Balance 43,900 $ - $ 139,682 127,082 $ Fund Balances Beginning of Year - Fund Balances End of Year 139,682 $ City and County of Butte-Silver Bow, Montana GO Bonds Refunding Schedule of Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2012 161 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Expenditures Current: Housing and community development 25,000 $ 25,000 $ 1,396 $ 23,604 $ Debt Service: Principal 1,150,000 1,150,000 1,150,000 - Interest 606,269 648,822 648,821 1 Total Expenditures 1,781,269 1,823,822 1,800,217 23,605 Other Financing Sources Issuance of tax increment bonds - - 405,000 405,000 Transfers in - Ramsey TIFID#2 fund 1,760,000 1,919,249 1,919,249 - Total Other Financing Sources 1,760,000 1,919,249 2,324,249 405,000 Net Change in Fund Balances $ (21,269) $ 95,427 524,032 $ (23,605) Fund Balances Beginning of Year 1,757,064 Fund Balances End of Year 2,281,096 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana ASiMI Bond Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 162 ---PAGE BREAK--- Civic Silver Lake Total Hard Rock Archives Center Junk Vehicle TIFID Waste Water Distribution Nonmajor Capital Mine Capital Highway Emergency Building Renovation Capital Electrical Waterline System Capital Projects Imps Trust Abandonment Ops Center Fund Project Reserve Upgrade Construction Improvements Funds Assets Cash and cash equivalents 923,618 $ 1 $ 228 $ 200,000 $ 4,205 $ 676 $ 3,526 $ 310,219 $ 871,330 $ 248,154 $ 2,561,957 $ Investments 1,507,795 127,802 146,350 - 69,666 - 3,072 - - - 1,854,685 Loans receivable 14,087 - - - - - - - - - 14,087 Total Assets 2,445,500 $ 127,803 $ 146,578 $ 200,000 $ 73,871 $ 676 $ 6,598 $ 310,219 $ 871,330 $ 248,154 $ 4,430,729 $ Liabilities & Fund Balances Liabilities Vouchers payable 109,644 $ - $ - $ 8,528 $ 620 $ - $ - $ - $ - $ - $ 118,792 $ Accounts payable - - - - - - - 871,330 - 871,330 Total Liabilities 109,644 - - 8,528 620 - - - 871,330 - 990,122 Fund Balances Restricted 2,335,856 127,803 - - 73,251 676 6,598 310,219 - 248,154 3,102,557 Assigned - - 146,578 191,472 - - - - - 338,050 Total Fund Balances 2,335,856 127,803 146,578 191,472 73,251 676 6,598 310,219 - 248,154 3,440,607 Total Liabilities & Fund Balances 2,445,500 $ 127,803 $ 146,578 $ 200,000 $ 73,871 $ 676 $ 6,598 $ 310,219 $ 871,330 $ 248,154 $ 4,430,729 $ City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2012 163 ---PAGE BREAK--- Junk TIFID Waste Silver Lake Total Hard Rock Archives Civic Vehicle Electrical Waterline Water Distribution Nonmajor Capital Mine Capital Highway Emergency Building Center Capital Upgrade Construction System Capital Projects Improvements Trust Abandonment Ops Center Fund Project Reserve Project Improvements Funds Revenues Intergovernmental 326,245 $ - $ - $ - $ - $ - $ - $ - $ - $ 326,245 $ Fines and forfeitures 32,891 - - - - - - - - 32,891 Miscellaneous 3,750 - - - - - - - - 3,750 Investment earnings 4,538 382 439 - 209 - 9 - - - 5,577 Total Revenues 367,424 382 439 - 209 - 9 - - - 368,463 Expenditures Capital Outlay 795,338 - - 8,528 165,709 - - 950,171 3,517,006 30,000 5,466,752 Debt Service: - Bond issuance costs - - - - - - - - 127,994 - 127,994 Total Expenditures 795,338 - - 8,528 165,709 - - 950,171 3,645,000 30,000 5,594,746 Excess (Deficiency) of Revenues Over (Under) Expenditures (427,914) 382 439 (8,528) (165,500) - 9 (950,171) (3,645,000) (30,000) (5,226,283) Other Financing Sources (Uses) Transfers In 200,000 200,000 Transfers Out (267,348) - - - (156,292) - - - - - (423,640) Bond Proceeds - - - - - - - - 3,645,000 - 3,645,000 Total Other Financing Sources/Uses (267,348) - - 200,000 (156,292) - - - 3,645,000 - 3,421,360 Net Change in Assets (695,262) 382 439 191,472 (321,792) - 9 (950,171) - (30,000) (1,804,923) Fund Balances Beginning of Year 3,031,118 127,421 146,139 395,043 676 6,589 1,260,390 - 278,154 5,245,530 Fund Balances End of Year 2,335,856 $ 127,803 $ 146,578 $ 191,472 $ 73,251 $ 676 $ 6,598 $ 310,219 $ - $ 248,154 $ 3,440,607 $ City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Fiscal Year Ended June 30, 2012 164 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Fines and forfeitures 120,000 $ 120,000 $ 32,891 $ (87,109) $ Intergovernmental - - 326,245 326,245 Miscellaneous - - 3,750 3,750 Investment earnings 7,500 7,500 4,538 (2,962) Total Revenues 127,500 127,500 367,424 239,924 Expenditures Capital Outlay: 941,032 873,684 795,338 78,346 Excess (Deficiency) of Revenues Over (Under) Expenditures (813,532) (746,184) (427,914) 318,270 Other Financing Sources Transfers Out (200,000) (267,348) (267,348) - Net Change in Fund Balances $ (1,013,532) $ (1,013,532) (695,262) $ 318,270 Fund Balances Beginning of Year 3,031,118 Fund Balances End of Year 2,335,856 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Capital Improvements Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 165 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 350 $ 350 $ 382 $ 417 $ Fund Balances Beginning of Year 127,421 Fund Balances End of Year 127,803 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Hard Rock Mine Capital Trust Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 166 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 400 $ 400 $ 439 $ 39 $ Expenditures Capital Outlay: Public works 100,000 100,000 - 100,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (99,600) $ (99,600) $ 439 100,039 $ Fund Balances Beginning of Year 146,139 Fund Balances End of Year 146,578 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Highway Abandonment Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 167 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Expenditures Capital Outlay: Public works 960,000 $ 1,113,941 $ 8,528 $ 1,105,413 $ Other Financing Sources Transfers In 200,000 200,000 200,000 - Net Change in Fund Balances $ (760,000) $ (913,941) 191,472 $ (1,105,413) Fund Balances Beginning of Year - Fund Balances End of Year 191,472 $ City and County of Butte-Silver Bow, Montana Emergency Operation Center Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2012 168 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings - $ - $ 209 $ 209 $ Expenditures Capital Outlay: Culture and recreation 238,000 238,000 165,709 72,291 (Deficiency) of Revenues (Under) Expenditures (238,000) (238,000) (165,500) 72,500 Other Financing Sources Transfers Out (156,292) (156,292) (156,292) - Net Change in Fund Balances $ (394,292) $ (394,292) (321,792) $ 72,500 Fund Balances Beginning of Year 395,043 Fund Balances End of Year 73,251 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Archives Building Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 169 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Fund Balances Beginning of Year $ - $ - $ 676 $ - Fund Balances End of Year 676 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Civic Center Renovation Fund Schedule of Expenditures and Changes in Fund Balances - Budget and Actual 170 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings - $ - $ 9 $ 9 $ Fund Balances Beginning of Year 6,589 Fund Balances End of Year 6,598 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Junk Vehicle Capital Improvement Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 171 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Expenditures Capital Outlay 1,260,172 1,260,172 950,171 310,001 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,260,172 $ 1,260,172 $ 950,171 310,001 $ Other Financing Sources Transfers In - - - - Net Change in Fund Balances $ (1,260,172) $ (1,260,172) (950,171) $(310,001) Fund Balances Beginning of Year 1,260,390 Fund Balances End of Year 310,219 $ City and County of Butte-Silver Bow, Montana TIFID Electrical Upgrade Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2012 172 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Expenditures Debt Service: Bond issuance costs - $ 127,994 127,994 - $ Capital Outlay - 3,517,006 3,517,006 - Excess (Deficiency) of Revenues Over (Under) Expenditures - (3,645,000) (3,645,000) - Other Financing Sources Issuance of tax increment bonds - 3,568,410 3,645,000 76,590 Net Change in Fund Balances $ - $ (76,590) - $ 76,590 Fund Balances Beginning of Year - Fund Balances End of Year - $ City and County of Butte-Silver Bow, Montana Waste Waterline Construction Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Fiscal Year Ended June 30, 2012 173 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Expenditures Capital Outlay: - $ $ 278,154 $ 30,000 (248,154) $ Fund Balances Beginning of Year 278,154 Fund Balances End of Year 248,154 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Silver Lake Water Distribution System Improvements Fund Schedule of Expenditures and Changes in Fund Balances - Budget and Actual 174 ---PAGE BREAK--- 175 Small Silver Lake Storm Water MR Total Nonmajor Community Home Business Water System Infrastructure Enterprise Facilities Health Incubator System Project Project Funds Assets Current Assets: Cash and cash equivalents 120,526 $ - $ 143,494 $ 239,968 $ 237,642 $ - $ 741,630 $ Investments - - 85,315 402,210 - - 487,525 Accounts receivable - 119,450 9,705 447,914 - - 577,069 Special assessments receivable - - - - 35,178 - 35,178 Inventory - 6,555 - - - 6,555 Total Current Assets 120,526 126,005 238,514 1,090,092 272,820 - 1,847,957 Noncurrent Assets: Capital assets: Nondepreciable - - 5,433 - - 5,433 Depreciable, net 328,640 10,183 187,429 1,287,007 1,498,335 3,311,594 Total Noncurrent Assets 328,640 10,183 192,862 1,287,007 1,498,335 3,317,027 Total Assets 449,166 136,188 431,376 2,377,099 272,820 1,498,335 5,164,984 Liabilities Current Liabilities: Vouchers payable 3,539 13,214 668 9,395 26,483 - 53,299 Accrued wages and benefits payable - 7,839 2,747 1,677 - - 12,263 Compensated absences - 2,769 40 - - - 2,809 Interfund payable - 53,837 - - - - 53,837 Deferred revenue - - 4,617 - 35,178 - 39,795 Total Current Liabilities 3,539 77,659 8,072 11,072 61,661 - 162,003 Long-Term Liabilities: Compensated absences - 24,921 358 - - - 25,279 Total Liabilities 3,539 102,580 8,430 11,072 61,661 - 187,282 Net Assets Invested in capital assets 328,640 10,183 192,862 1,287,007 - 1,498,335 3,317,027 Unrestricted 116,987 23,425 230,084 1,079,020 211,159 - 1,660,675 Total Net Assets 445,627 $ 33,608 $ 422,946 $ 2,366,027 $ 211,159 $ 1,498,335 $ 4,977,702 $ Combining Statement of Net Assets City and County of Butte-Silver Bow, Montana Nonmajor Enterprise Funds June 30, 2012 ---PAGE BREAK--- 176 City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Nonmajor Enterprise Funds For the Fiscal Year Ended June 30, 2012 Small Silver Lake Storm Water MR Total Nonmajor Community Home Business Water System Infrastructure Enterprise Facilities Health Incubator System Project Project Funds Operating Revenues Charges for services - $ 412,234 $ 60,182 $ 1,045,280 $ 302,350 $ - $ 1,820,046 $ Miscellaneous 75,645 34,025 - - 502 - 110,172 Total Operating Revenues 75,645 446,259 60,182 1,045,280 302,852 - 1,930,218 Operating Expenses Personal services 10,518 317,097 58,250 42,768 40,927 - 469,560 Operation and maintenance 34,509 162,619 63,079 104,517 50,766 - 415,490 Depreciation 18,128 1,488 17,274 51,200 - 92,680 180,770 Total Operating Expenses 63,155 481,204 138,603 198,485 91,693 92,680 1,065,820 Operating Income (Loss) 12,490 (34,945) (78,421) 846,795 211,159 (92,680) 864,398 Non-Operating Revenues (Expenses) Investment earnings - 183 299 1,205 - - 1,687 Total Non-Operating Revenues (Expenses) - 183 299 1,205 - - 1,687 Income (Loss) Before Tranfers In (Out) 12,490 (34,762) (78,122) 848,000 211,159 (92,680) 866,085 Transfers in (out): General fund - - 38,735 - - - 38,735 Ramsay TIFID #2 fund - - 15,000 - - - 15,000 Change in Net Assets 12,490 (34,762) (24,387) 848,000 211,159 (92,680) 919,820 Net Assets Beginning of Year 433,137 68,370 447,333 1,518,027 - 1,591,015 4,057,882 Net Assets End of Year 445,627 $ 33,608 $ 422,946 $ 2,366,027 $ 211,159 $ 1,498,335 $ 4,977,702 $ ---PAGE BREAK--- 177 City and County of Butte-Silver Bow, Montana Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Fiscal Year Ended June 30, 2012 Small Silver Lake Storm Water MR Total Nonmajor Community Home Business Water System Infrastructure Enterprise Facilities Health Incubator System Project Project Funds Increase (Decrease) in Cash and Cash Equivalents Cash Flows from Operating Activities Cash received from customers 75,646 $ 442,365 $ 58,653 $ 1,065,507 $ 302,851 $ - $ 1,945,022 $ Cash payments for personal services (10,764) (312,682) (58,088) (45,217) (41,273) - (468,024) Cash payments for goods and services (32,758) (153,909) (63,567) (118,207) (23,936) - (392,377) Net Cash Provided by (Used in) Operating Activities 32,124 (24,226) (63,002) 902,083 237,642 - 1,084,621 Cash Flows from Noncapital Financing Activities Transfers in (out) - 24,045 53,735 - - - 77,780 Cash Flows from Capital and Related Financing Activities Payments for capital acquisitions - - - (1,219,600) - - (1,219,600) Net Cash Provided by (Used in) Capital and Related Financing Activities - - - (1,219,600) - - (1,219,600) Cash Flows from Investing Activities Interest on investments - 181 299 1,207 - - 1,687 Net Increase (Decrease) in Cash and Cash Equivalents 32,124 - (8,968) (316,310) 237,642 - (55,512) Cash and Cash Equivalents Beginning of Year 88,402 - 237,777 958,488 - - 1,284,667 Cash and Cash Equivalents End of Year 120,526 $ - $ 228,809 $ 642,178 $ 237,642 $ - $ 1,229,155 $ Reconciliation to Combining Statement of Net Assets Cash and cash equivalents 120,526 $ - $ 143,494 $ 239,968 $ 237,642 $ - $ 741,630 $ Investments - - 85,315 402,210 - - 487,525 Total 120,526 $ - $ 228,809 $ 642,178 $ 237,642 $ - $ 1,229,155 $ ---PAGE BREAK--- 178 City and County of Butte-Silver Bow, Montana Combining Statement of Cash Flows Nonmajor Proprietary Funds For the Fiscal Year Ended June 30, 2012 Small Silver Lake Storm Water MR Total Nonmajor Community Home Business Water System Infrastructure Enterprise Facilities Health Incubator System Project Project Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities Operating Income (Loss) 12,490 $ (34,945) $ (78,421) $ 846,795 $ 211,159 $ (92,680) $ 864,398 $ Adjustments: Depreciation 18,128 1,488 17,274 51,200 - 92,680 180,770 (Increase) Decrease in Assets: Accounts receivable - (4,077) (1,784) 20,227 (35,178) - (20,812) Inventory - (1,221) - - - (1,221) Increase (Decrease) in Liabilities: Accounts payable 1,506 6,080 (920) (16,896) 26,483 - 16,253 Accrued wages and benefits payable - 3,454 769 757 - - 4,980 Unearned revenue - - - - 35,178 35,178 Compensated absences payable - 4,995 80 - - - 5,075 Net Cash Provided by (Used in) Operating Activities 32,124 $ (24,226) $ (63,002) $ 902,083 $ 237,642 $ - $ 1,084,621 $ ---PAGE BREAK--- 179 Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department to other departments of the Government on a cost reimbursement basis. Central Equipment – Accounts for the city-county vehicles and equipment maintenance shop as well as a janitorial service provided to some departments. Central Administrative Services – Accounts for the personnel and payroll function of the local government. Central EDP & Communications – Accounts for the computer operations and centralized phone system of the local government. GIS Services – Accounts for the accumulation and allocation of costs associated with the government’s geographical information system (GIS). ---PAGE BREAK--- 180 Central Equipment Central Administration Services Central EDP & Communications GIS Services Total Assets Current Assets: Cash and cash equivalents (57,682) $ 111,300 $ 69,567 $ 213,267 $ 336,452 $ Accounts receivable 5,557 - 1,140 - 6,697 Total Current Assets (52,125) 111,300 70,707 213,267 343,149 Noncurrent Assets: Capital assets: Nondepreciable 40,000 - - - 40,000 Depreciable, net 1,177,568 127,700 10,414 2,642 1,318,324 Total Noncurrent Assets 1,217,568 127,700 10,414 2,642 1,358,324 Total Assets 1,165,443 239,000 81,121 215,909 1,701,473 Liabilities Current Liabilities: Vouchers payable 77,986 12,421 9,698 - 100,105 Accounts payable - - - - - Accrued wages and benefits payable 14,311 5,994 8,044 1,624 29,973 Compensated absences payable 7,707 3,879 3,613 744 15,943 Total Current Liabilities 100,004 22,294 21,355 2,368 146,021 Long-term Liabilities Compensated absences payable 69,359 34,910 32,518 6,696 143,483 Total Liabilities 169,363 57,204 53,873 9,064 289,504 Net Assets Invested in capital assets 1,217,568 127,700 10,414 2,642 1,358,324 Unrestricted (221,488) 54,096 16,834 204,203 53,645 Total Net Assets 996,080 $ 181,796 $ 27,248 $ 206,845 $ 1,411,969 $ City and County of Butte-Silver Bow, Montana June 30, 2012 Internal Service Funds Combining Statement of Net Assets ---PAGE BREAK--- 181 Central Equipment Central Administration Services Central EDP & Communications GIS Services Total Operating Revenues Charges for services 1,458,501 $ 354,241 $ 404,452 $ 42,830 $ 2,260,024 $ Miscellaneous 119 6,625 - 400 7,144 Total Operating Revenues 1,458,620 360,866 404,452 43,230 2,267,168 Operating Expenses Personal services 723,252 322,393 297,504 43,201 1,386,350 Operations and maintenance 868,803 61,873 139,236 11,054 1,080,966 Depreciation 206,724 3,444 1,748 1,051 212,967 Total Operating Expenses 1,798,779 387,710 438,488 55,306 2,680,283 Operating (Loss) (340,159) (26,844) (34,036) (12,076) (413,115) Non-Operating Revenues Intergovernmental 464 233 210 24 931 Income (Loss) Before Tranfers In (Out) (339,695) (26,611) (33,826) (12,052) (412,184) Transfers in (out): Central EDP 200,000 200,000 Central admin services (200,000) (200,000) Change in Net Assets (339,695) 173,389 (233,826) (12,052) (412,184) Total Net Assets Beginning of Year 1,335,775 8,407 261,074 218,897 1,824,153 Total Net Assets End of Year 996,080 $ 181,796 $ 27,248 $ 206,845 $ 1,411,969 $ City and County of Butte-Silver Bow, Montana Combining Statement of Revenues, Expenses and Changes in Fund Net Assets For the Fiscal Year Ended June 30, 2012 Internal Service Funds ---PAGE BREAK--- 182 Central Equipment Central Administration Services Central EDP & Communications GIS Services Total Increase (Decrease) in Cash and Cash Equivalents Cash Flows from Operating Activities Cash receipts from interfund services provided 1,458,803 $ 360,633 $ 409,548 $ 43,231 $ 2,272,215 $ Cash payments for personnel services (719,892) (314,121) (293,218) (40,254) (1,367,485) Cash payments for goods and services (908,817) (69,269) (157,529) (12,130) (1,147,745) Net Cash Provided by Operating Activities (169,906) (22,757) (41,199) (9,153) (243,015) Cash Flows from Noncapital Financing Activities Intergovernmental 464 233 210 24 931 Transfers in (out) 200,000 (200,000) - Net Cash Flows from Noncapital Financing Activities 464 200,233 (199,790) 24 931 Cash Flows from Capital and Related Financing Activities Payments for capital acquisitions (57,590) (108,912) (1,000) - (167,502) Net Increase (Decrease) in Cash and Cash Equivalents (227,032) 68,564 (241,989) (9,129) (409,586) Cash and Cash Equivalents Beginning of Year 169,350 42,736 311,556 222,396 746,038 Cash and Cash Equivalents End of Year (57,682) $ 111,300 $ 69,567 $ 213,267 $ 336,452 $ Combining Statement of Cash Flows City and County of Butte-Silver Bow, Montana For the Fiscal Year Ended June 30, 2012 Internal Service Funds ---PAGE BREAK--- 183 Central Equipment Central Administration Services Central EDP & Communications GIS Services Total Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating Income (Loss) (340,159) $ (26,844) $ (34,036) $ (12,076) $ (413,115) $ Adjustments: Depreciation 206,724 3,444 1,748 1,051 212,967 Capital asset adjustments - - - - (Increase) Decrease in Assets: Accounts receivable 183 - 1,403 - 1,586 Increase (Decrease) in Liabilities: Vouchers payable (52,393) (7,397) (14,390) - (74,180) Accounts payable - - - - - Accrued wages and benefits payable 3,360 1,217 1,740 1,143 7,460 Compensated absences payable 12,379 6,823 2,336 729 22,267 Net Cash Provided by Operating Activities (169,906) $ (22,757) $ (41,199) $ (9,153) $ (243,015) $ City and County of Butte-Silver Bow, Montana Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended June 30, 2012 ---PAGE BREAK--- 184 Trust & Agency Funds Trust funds are used to account for assets held by the government in a trustee capacity. Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other government and/or other funds. Property Tax Fund – Accounts for all property taxes collected by the county for schools, state, other cities and towns, and districts. School District Trust Fund – To account for revenues collected and cash and investments for various school districts within the City and County of Butte-Silver Bow. Fees and Judgments Due to State – To account for various fees and judgments collected by the local government which are due to the state. Payroll & Claims Fund – Accounts for the County’s payroll fund and outstanding claims. Tax Deed Land & Redemption Fund – To account for land that has been tax deeded by Butte-Silver Bow until which time a tax sale of property is held. It also accounts for the land which is under contract to be redeemed. Butte-Silver Bow Trust Funds – Accounts for funds collected which the county is an agent. Such things include a portion of parking fees which revert to an outside entity, garnishment of child support, alimony and other awards of the court, public administrator functions and court ordered operation of a cemetery. PRP Group Trust Funds – Accounts for funds collected by Butte-Silver Bow from Burlington Northern Railroad, Santa Fe Railroad and ARCO to be distributed for superfund activities per contract. The two projects are entitled the Priority Soils Operable Unit (BPSOU) and Time Critical Removal Action. School District #1 Individual Investment Funds – Accounts for individual investments made on behalf of School District #1 by the City and County of Butte-Silver Bow, under the direction of School District #1 Business Manager. School District #3 Individual Investment Funds – Accounts for individual investments made on behalf of School District #3 by the City and County of Butte-Silver Bow, under the direction of the Clerk of School District School District #4 Individual Investment Funds – Accounts for individual investments made on behalf of School District #4 by the City and County of Butte-Silver Bow, under the direction of Clerk of School District School District #5 Individual Investment Funds – Accounts for individual investments made on behalf of School District #5 by the City and County of Butte-Silver Bow, under the direction of Clerk of School District School District #1 External Investment Pool – Accounts for funds invested in the State of Montana Investment Pool. This pool is administered by the Montana Board of Investments and has been deemed 2a7-like. Funds are invested under the direction of the School District #1 Business Manager by Butte-Silver Bow. ---PAGE BREAK--- 185 School District #1 School District #1 Individual External Investment Investment Funds Pool Total Assets Investments 7,913,658 $ 1,401,366 $ 9,315,024 $ Net Assets Net assets held in trust for pool participants 7,913,658 $ 1,401,366 $ 9,315,024 $ City and County of Butte-Silver Bow, Montana June 30, 2012 Trust Funds Combining Statement of Fiduciary Net Assets ---PAGE BREAK--- 186 School District #1 School District #1 Individual External Investment Investment Funds Pool Total Additions Shares and investments purchased 3,530,173 $ 163,591,913 $ 167,122,086 $ Investment earnings 111,063 45,953 157,016 Total Additions 3,641,236 163,637,866 167,279,102 Deductions Shares and investments redeemed 3,484,000 163,590,913 167,074,913 Increase (Decrease) in Net Assets 157,236 46,953 204,189 Net Assets Held in Trust For Pool Participants Beginning of Year 7,756,422 1,354,413 9,110,835 Net Assets Held in Trust For Pool Participants End of Year 7,913,658 $ 1,401,366 $ 9,315,024 $ City and County of Butte-Silver Bow, Montana For the Fiscal Year Ended June 30, 2012 Trust Funds Combining Statement of Changes in Fiduciary Net Assets ---PAGE BREAK--- 187 Balance Balance June 30, 2011 Additions Deductions June 30, 2012 Property Tax Fund Assets Cash and cash equivalents 372,446 $ 2,203,800 $ 1,465,904 $ 1,110,342 $ Investments 601,019 1,807 - 602,826 Receivables 2,372,333 24,059,043 24,461,400 1,969,976 Total Assets 3,345,798 $ 26,264,650 $ 25,927,304 $ 3,683,144 $ Liabilities Accounts payable 498,495 $ 913,067 $ 112,375 $ 1,299,187 $ Interest payable 235,931 3,429 3,245 236,115 Intergovernmental payable: Due to special districts 462,764 313,157 665,198 110,723 Due to state 534,110 6,764,735 6,763,743 535,102 Due to schools 1,378,059 15,549,978 15,600,790 1,327,247 Due to component unit 27,222 217,375 210,796 33,801 Due to cities and towns 209,218 2,078,470 2,146,718 140,970 Total Liabilities 3,345,798 $ 25,840,211 $ 25,502,865 $ 3,683,144 $ Balance Balance School District Trust Fund June 30, 2011 Additions Deductions June 30, 2012 Assets Cash and cash equivalents 23,894,377 $ 214,526,923 $ 216,524,558 $ 21,896,742 $ Liabilities Due to schools 23,894,377 $ 214,526,923 $ 216,524,558 $ 21,896,742 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Statement of Changes in Fiduciary Assets and Liabilities ---PAGE BREAK--- 188 Balance Balance June 30, 2011 Additions Deductions June 30, 2012 Fees & Judgments Due to State Assets Cash and cash equivalents 537,000 $ 13,373,954 $ 13,528,410 $ 382,544 $ Accounts receivable - 197 - 197 Total Assets 537,000 $ 13,374,151 $ 13,528,410 $ 382,741 $ Liabilities Due to state 537,000 $ 13,374,151 $ 13,528,410 $ 382,741 $ Balance Balance Tax Deed Land & Redemption Fund June 30, 2011 Additions Deductions June 30, 2012 Assets Cash and cash equivalents 5,051 $ 87,980 $ 92,084 $ 947 $ Contracts receivable - 45,630 39,985 5,645 Land acquired by tax deed 261,541 - 31,815 229,726 Total Assets 266,592 $ 133,610 $ 163,884 $ 236,318 $ Liabilities Accounts payable 263,000 $ 69,400 $ 96,936 $ 235,464 $ Vouchers payable 3,592 34,742 37,480 854 Total Liabilities 266,592 $ 104,142 $ 134,416 $ 236,318 $ Balance Balance Butte-Silver Bow Trust Funds June 30, 2011 Additions Deductions June 30, 2012 Assets Cash and cash equivalents 83,516 $ 29,972 $ 8,814 $ 104,674 $ Investments 389,548 1,171 - 390,719 Total Assets 473,064 $ 31,143 $ 8,814 $ 495,393 $ Liabilities Accounts payable 472,795 $ 30,534 $ 8,007 $ 495,322 $ Vouchers payable 269 608 806 71 Total Liabilities 473,064 $ 31,142 $ 8,813 $ 495,393 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Statement of Changes in Fiduciary Assets and Liabilities ---PAGE BREAK--- 189 Balance Balance June 30, 2011 Additions Deductions June 30, 2011 PRP Group Trust Funds Assets Cash and cash equivalents 20,840 $ - $ - $ 20,840 $ Liabilities Due to others 20,840 $ - $ - $ 20,840 $ For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Statement of Changes in Fiduciary Assets and Liabilities ---PAGE BREAK--- ---PAGE BREAK--- 191 Contents Exhibits Financial Trends I - XIIA Exhibits Page I Government-wide Net Assets by Category 192 IA Chart-Government-wide Net Assets by Category 193 II Changes in Net Assets - Governmental Activities 194 III Changes in Net Assets - Governmental Activities - Percentage of Total 195 IV Changes in Net Assets - Business-type Activities 196 V Changes in Net Assets - Business-type Activities - Percentage of Total 197 VI Changes in Net Assets - Total 198 VII Tax Revenues by Source - Governmental Funds 199 VIIA Chart-Tax Revenues by Source - Governmental Funds 200 VIII Fund Balances - Governmental Funds 201 IX General Governmental Revenues by Source (Unaudited) 202 X General Governmental Expenditures by Function (Unaudited) 203 XI General Governmental Current Expenditures by Function (Unaudited) 204 XII Changes in Fund Balances - Governmental Funds 205 XIIA Chart-Changes in Fund Balances - Governmental Funds 206 Revenue Capacity XIII - XVI Exhibits Page XIII Assessed Market Value 207 XIV Direct and Overlapping Property Tax Rates 208 XV Principal Property Taxpayers 209 XVI Property Tax Levies and Collections1 210 Debt Capacity XVII - XXI Exhibits Page XVII Ratios of Total Debt Oustanding by Type 211 XVIII Ratio of General Bonded Debt Outstanding 212 XIX Governmental Activities Direct and Overlapping Debt 213 XX Legal Debt Margin 214 XXI Schedule of Revenue Bond Coverage 215 Demographic and Economic Information XXII - XXIII Exhibits Page XXII Demographic and Economic Statistics 216 XXIII Top Twenty Private Employers 217 Operating Information XXIV - XXVI Exhibits Page XXIV Full-time Equivalent Employees by Function 218 XXV Operating Indicators by Function/Program 219 XXVI Capital Asset and Infastructure Statistics by Function/Program 220 Data Source: 1 Unless otherwise noted, the information in these exhibits is derived from the comprehensive annual financial reports for the relevant year. The County implemented GASB Statement No. 34 in fiscal year 2003, therefore exhibits presenting government-wide information includes only eight years of data. These exhibits contain trend information that may assist the reader in assessing the City and County's current financial performance by placing it in an historical perspective. These exhibits contain information that may assist the reader in assessing the viability of the City and County's most significant "own-source" revenue sources. Property taxes are the City and County's primary "own revenue source." These exhibits present information that may assist the reader in analyzing the affordability of the City and County's current levels of outstanding debt and the City and County's ability to issue additional debt in the future. This exhibit offers demographic and economic indicators that are commonly used for financial analysis and that can inform one's understanding the City and County's present and ongoing financial status. Schedule Schedule City and County of Butte-Silver Bow, Montana Schedule Schedule These exhibits contain service and infrastructure indicators that can inform one's understanding how the information in the City and County's financial statements relates to the services the City and County provides and the activities it performs. Schedule Statistical Section Summary ( Unaudited) This part of the City and County of Butte-Silver Bow, Montana's (City and County) comprehensive annual financial report presents detailed information as a context for understanding this year's financial statements, note disclosures, and supplementary information. This information has not been audited. ---PAGE BREAK--- 192 Amounts June 30, 2003 June 30, 2004 June 30, 2005 June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 June 30,2011 June 30,2012 Governmental Activities Invested in capital assets, net of related debt3 (19,914,298) $ (8,224,231) $ (4,973,943) $ (1,301,770) $ 37,880,187 $ 38,272,244 $ 38,442,287 $ 47,028,355 $ 50,401,892 57,219,300 Restricted 18,333,209 7,631,881 6,760,614 8,542,508 5,052,725 6,363,688 8,445,945 9,159,399 48,008,881 50,344,473 Unrestricted 26,777,127 31,141,617 32,703,998 33,877,440 43,817,437 46,260,401 46,805,978 40,833,029 3,258,886 3,665,055 Subtotal Governmental Activities Net Assets 25,196,038 30,549,267 34,490,669 41,118,178 86,750,349 90,896,333 93,694,210 97,020,783 101,669,659 111,228,828 Business-type Activities Invested in capital assets, net of related debt 28,021,931 $ 31,528,695 $ 34,731,910 $ 38,249,353 $ 39,663,322 43,757,726 50,181,875 55,900,034 65,748,260 75,368,957 Restricted 8,617,497 6,382,764 6,928,035 9,029,159 8,087,767 8,235,735 3,392,346 2,903,981 1,887,333 1,751,107 Unrestricted 12,690,753 14,403,197 12,942,030 10,742,308 13,340,494 12,651,209 15,614,520 15,100,428 13,983,687 14,203,185 Subtotal Business-type Activities Net Assets 49,330,181 52,314,656 54,601,975 58,020,820 61,091,583 64,644,670 69,188,741 73,904,443 81,619,280 91,323,249 Primary Government Invested in capital assets, net of related debt 8,107,633 23,304,464 29,757,967 36,947,583 77,543,509 82,029,970 88,624,162 102,928,389 116,150,152 132,588,257 Restricted 26,950,706 14,014,645 13,688,649 17,571,667 13,140,492 14,599,423 11,838,291 12,063,380 49,896,214 52,095,580 Unrestricted 39,467,880 45,544,814 45,646,028 44,619,748 57,157,931 58,911,610 62,420,498 55,933,457 17,242,573 17,868,240 Total Primary Government Net Assets 74,526,219 $ 82,863,923 $ 89,092,644 $ 99,138,998 $ 147,841,932 $ 155,541,003 $ 162,882,951 $ 170,925,226 $ 183,288,939 $ 202,552,077 $ Percentage of Total June 30, 2003 June 30, 2004 June 30, 2005 June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 June 30,2011 June 30,2012 Governmental Activities Invested in capital assets, net of related debt -79.0% -26.9% -14.4% -3.2% 43.7% 42.1% 41.0% 48.5% 49.6% 51.4% Restricted 72.8% 25.0% 19.6% 20.8% 5.8% 7.0% 9.0% 9.4% 47.2% 45.3% Unrestricted 106.2% 101.9% 94.8% 82.4% 50.5% 50.9% 50.0% 42.1% 3.2% 3.3% Subtotal Governmental Activities Net Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Business-type Activities Invested in capital assets, net of related debt 56.8% 60.3% 63.6% 65.9% 64.9% 67.7% 72.5% 75.6% 80.6% 82.5% Restricted 17.5% 12.2% 12.7% 15.6% 13.2% 12.7% 4.9% 3.9% 2.3% 1.9% Unrestricted 25.7% 27.5% 23.7% 18.5% 21.8% 19.6% 22.6% 20.4% 17.1% 15.6% Subtotal Business-type Activities Net Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Primary Government Invested in capital assets, net of related debt 10.9% 28.1% 33.4% 37.3% 52.5% 52.7% 54.4% 60.2% 63.4% 65.5% Restricted 36.1% 16.9% 15.4% 17.7% 8.9% 9.4% 7.3% 7.1% 27.2% 25.7% Unrestricted 53.0% 55.0% 51.2% 45.0% 38.7% 37.9% 38.3% 32.7% 9.4% 8.8% Total Primary Government Net Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Notes: Government-wide Net Assets by Category 2 City and County of Butte-Silver Bow, Montana 2 Accounting standards require that net assets be reported in three components in the financial statements: invested in capital assets, net of related debt; restricted; and unrestricted. Net assets are considered restricted only when an external party, such as the State of Montana or the federal government, places a restriction on how the resources may be used, or enabling legislation is enacted by the City and County. There are no restrictions currently reported as a result of enabling legislation. 3 A deficit was reported in fiscal years 2003 - 2006 since the City and County had not reported its infrastructure retroactively, although there was outstanding debt related to infrastructure. In fiscal year 2007, over $37.3 million of book value of infrastructure was added to the government-wide statement of net assets. Last Ten Fiscal Years (accrual basis of accounting) ---PAGE BREAK--- 193 25,196,038 30,549,267 34,490,669 41,118,178 86,750,349 90,896,333 93,694,210 97,020,783 101,669,659 111,228,828 49,330,181 52,314,656 54,601,975 58,020,820 61,091,583 64,644,670 69,188,741 73,904,443 81,619,280 91,323,249 0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 1/1/2003 1/1/2004 1/1/2005 1/1/2006 1/1/2007 1/1/2008 1/1/2009 1/1/2010 1/1/2011 1/1/2012 Governmental Activities Business-type Activities ---PAGE BREAK--- Exhibit II Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenses: General government 8,127,184 $ 8,409,683 $ 9,194,426 $ 9,840,663 $ 9,827,805 $ 10,226,319 $ 10,866,213 $ 12,091,322 $ 13,176,267 $ 12,901,775 Public safety 9,194,549 10,239,596 10,170,498 10,841,488 11,501,342 12,870,631 14,105,614 14,293,718 14,411,049 14,977,684 Public works 3,962,130 4,711,806 4,064,908 4,821,961 5,505,350 6,138,150 6,601,992 6,870,507 6,711,497 7,345,814 Public health 2,537,524 2,598,355 2,700,993 2,928,719 3,024,805 3,407,409 4,141,100 4,530,875 4,292,094 4,102,699 Social and economic services 172,573 195,594 179,827 202,267 201,839 216,137 236,774 237,155 248,113 267,919 Culture and recreation 2,137,504 2,133,316 2,179,222 2,287,724 2,509,329 2,729,001 2,815,238 2,993,172 3,393,276 3,481,491 Housing and community development 2,448,733 4,224,211 2,858,609 4,293,088 7,417,989 5,108,680 5,272,460 4,781,874 7,180,028 5,299,101 Interest and fiscal charges 3,005,400 2,813,359 2,622,195 2,401,422 2,211,530 2,131,812 2,167,905 2,072,750 1,597,707 1,602,014 Total Expenses 31,585,597 35,325,920 33,970,678 37,617,332 42,199,989 42,828,139 46,207,295 47,871,373 51,010,030 49,978,498 Program Revenues: Charges for services: General government 3,062,190 3,303,496 3,563,888 3,863,468 1,909,372 4,445,776 4,241,383 4,426,863 4,579,421 4,858,792 Public safety 1,237,658 1,520,777 1,215,863 1,391,633 1,307,795 1,053,947 1,134,235 1,089,915 1,079,128 1,079,128 Public works 1,374,640 1,957,266 1,385,091 1,367,840 6,547,889 367,210 140,185 114,812 125,918 125,918 Other activities 796,941 859,098 825,649 783,641 597,152 573,947 1,241,495 1,125,064 1,073,583 1,073,583 Operating grants and contributions 12,050,840 11,361,076 11,199,969 13,635,961 12,719,370 12,752,094 16,604,680 16,455,376 14,512,131 17,847,412 Capital grants and contributions 610,273 719,935 1,659,303 2,629,319 312,124 753,789 - - 4,678,246 4,182,411 Total Program Revenues 19,132,542 19,721,648 19,849,763 23,671,862 23,393,702 19,946,763 23,361,978 23,212,030 26,048,427 29,167,244 Net (Expense) Revenue (12,453,055) (15,604,272) (14,120,915) (13,945,470) (18,806,287) (22,881,376) (22,845,317) (24,659,343) (24,961,603) (20,811,254) General Revenues and Transfers In: Taxes: Property 18,231,045 20,057,184 16,387,508 18,382,499 22,622,589 23,056,407 22,661,639 26,272,299 26,787,812 27,827,222 Franchise 216,207 228,647 240,923 261,119 288,216 300,714 321,282 330,218 350,428 350,428 Motor fuel 731,704 706,957 685,844 668,036 665,350 656,136 643,665 - 625,158 643,505 Investment earnings 913,867 480,856 1,076,240 1,758,245 2,504,774 2,145,787 937,855 396,421 355,257 342,376 Miscellaneous 202,290 188,198 326,261 180,734 789,360 569,371 872,978 1,084,810 1,600,472 960,627 Transfers in 130,862 231,265 272,308 251,501 246,265 298,945 205,774 246,265 246,264 246,265 General Revenues and Transfers In: 20,425,975 21,893,107 18,989,084 21,502,134 27,116,554 27,027,360 25,643,193 28,330,013 29,965,391 30,370,423 Change in Net Assets 7,972,920 $ 6,288,835 $ 4,868,169 $ 7,556,664 $ 8,310,267 $ 4,145,984 $ 2,797,876 $ 3,670,670 $ 5,003,788 $ 9,559,169 Fiscal Year Ended June 30, City and County of Butte-Silver Bow, Montana Changes in Net Assets - Governmental Activities Last Ten Fiscal Years (accrual basis of accounting) 194 ---PAGE BREAK--- Exhibit III Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenses: General government 25.7% 23.8% 27.1% 26.2% 23.3% 23.9% 23.5% 25.3% 25.8% 25.8% Public safety 29.1% 29.0% 29.9% 28.8% 27.3% 30.1% 30.5% 29.9% 28.3% 30.0% Public works 12.5% 13.3% 12.0% 12.8% 13.0% 14.3% 14.3% 14.4% 13.2% 14.7% Public health 8.0% 7.4% 8.0% 7.8% 7.2% 8.0% 9.0% 9.5% 8.4% 8.2% Social and economic services 0.5% 0.6% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Culture and recreation 6.8% 6.0% 6.4% 6.1% 5.9% 6.4% 6.1% 6.3% 6.7% 7.0% Housing and community development 7.8% 12.0% 8.4% 11.4% 17.6% 11.9% 11.4% 10.0% 14.1% 10.6% Interest and fiscal charges 9.5% 8.0% 7.7% 6.4% 5.2% 5.0% 4.7% 4.3% 3.1% 3.2% Total Expenses 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Program Revenues: Charges for services: General government 16.0% 16.8% 18.0% 16.3% 8.2% 22.3% 18.2% 19.1% 17.6% 16.7% Public safety 6.5% 7.7% 6.1% 5.9% 5.6% 5.3% 4.9% 4.7% 4.1% 3.7% Public works 7.2% 9.9% 7.0% 5.8% 28.0% 1.8% 0.6% 0.5% 0.5% 0.4% Other activities 4.2% 4.4% 4.2% 3.3% 2.6% 2.9% 5.3% 4.8% 4.1% 3.7% Operating grants and contributions 63.0% 57.6% 56.4% 57.6% 54.4% 63.9% 71.1% 70.9% 55.7% 61.2% Capital grants and contributions 3.2% 3.7% 8.4% 11.1% 1.3% 3.8% 0.0% 0.0% 18.0% 14.3% Total Program Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% General Revenues and Transfers In: Taxes: Property 89.3% 91.6% 86.3% 85.5% 83.4% 85.3% 88.4% 92.7% 89.4% 91.6% Franchise 1.1% 1.0% 1.3% 1.2% 1.1% 1.1% 1.3% 1.2% 1.2% 1.2% Motor fuel 3.6% 3.2% 3.6% 3.1% 2.5% 2.4% 2.5% 0.0% 2.1% 2.1% Investment earnings 4.5% 2.2% 5.7% 8.2% 9.2% 7.9% 3.7% 1.4% 1.2% 1.1% Miscellaneous 1.0% 0.9% 1.7% 0.8% 2.9% 2.1% 3.4% 3.8% 5.3% 3.2% Transfers in 0.6% 1.1% 1.4% 1.2% 0.9% 1.1% 0.8% 0.9% 0.8% 0.8% General Revenues and Transfers In: 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Notes: 1 The City and County implemented GASB Statement No. 34 in fiscal year 2003, therefore, only nine years of government-wide data is presented. Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Changes in Net Assets - Governmental Activities - Percentage of Total Last Ten Fiscal Years (accrual basis of accounting) 195 ---PAGE BREAK--- Exhibit IV Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenses: Community facilities 82,723 $ 136,777 $ 77,479 $ 93,005 $ 132,174 $ 550,183 $ 96,146 $ 84,988 $ 82,468 $ 63,155 $ Home health 443,873 455,989 452,745 455,245 478,038 463,873 477,407 455,141 431,861 481,204 Small business incubator 139,231 148,147 153,460 166,836 163,866 159,863 145,363 159,511 155,872 138,603 Water utility division 6,302,532 6,477,498 6,614,912 6,780,770 6,860,855 7,144,643 7,105,960 7,148,937 7,763,105 7,894,275 Metro sewer operations 2,792,393 2,945,589 3,144,561 3,342,055 3,451,722 3,447,702 3,415,305 3,458,844 3,686,853 3,853,671 Solid waste 1,635,632 1,710,038 1,773,813 1,807,043 1,847,420 2,096,777 2,027,230 2,181,947 2,170,407 2,352,772 Silver lake water system 199,266 371,617 560,408 509,674 325,308 229,247 237,431 228,506 416,201 198,485 Water distribution systems improvements 256,670 256,670 - - - - - - - - Storm Water System Project - - - - - - - - - 91,693 MSE-TA mariah project 35,229 25,467 482,537 - - - - - - - MR infrastructure project - 134,063 152,510 120,197 94,298 94,107 94,806 92,681 92,680 92,680 Total Expenses 11,887,549 12,661,855 13,412,425 13,274,825 13,353,681 14,186,395 13,599,648 13,810,555 14,799,447 15,166,538 Program Revenues: Charges for services: Water utility division 6,703,566 $ 6,901,705 $ 6,581,500 $ 7,013,614 $ 7,022,225 7,091,827 7,102,346 6,802,722 6,107,699 7,248,235 Metro sewer operations 3,095,490 3,233,383 3,129,620 3,139,392 3,136,061 3,129,455 3,126,532 3,144,573 2,993,824 4,669,526 Solid waste 2,221,839 2,320,635 2,445,974 2,362,245 2,460,317 2,618,059 2,478,040 2,698,390 2,941,414 2,259,390 Other activities 1,038,995 1,752,888 1,960,876 1,938,562 1,800,880 868,096 750,527 727,752 1,259,049 774,766 Silver lake water system - - - - - - - - - 1,045,280 Operating grants and contributions 2,707 198,146 244,340 15,425 1,196,557 3,246,789 4,418,961 5,117,876 230 230 Capital grants and contributions 1,165,795 1,168,842 1,302,889 1,763,404 - - - - 8,678,630 8,328,536 Total Program Revenues 14,228,392 15,575,599 15,665,199 16,232,642 15,616,040 16,954,226 17,876,406 18,491,313 21,980,846 24,325,963 Net (Expense) Revenue 2,340,843 2,913,744 2,252,774 2,957,817 2,262,359 2,767,831 4,276,758 4,680,758 7,181,399 9,159,425 General Revenues and Transfers : Restricted investment earnings 183,510 137,738 234,081 684,335 889,296 725,949 258,092 50,062 42,948 38,508.00 Miscellaneous 190,862 164,258 72,772 28,194 165,373 358,252 214,997 231,147 736,754 752,138.00 Transfers (130,862) (231,265) (272,308) (251,501) (246,265) (298,945) (205,774) (246,265) (246,264) (246,265.00) Total General Revenues and Transfers 243,510 70,731 34,545 461,028 808,404 785,256 267,315 34,944 533,438 544,381 Change in Net Assets 2,584,353 $ 2,984,475 $ 2,287,319 $ 3,418,845 $ 3,070,763 $ 3,553,087 $ 4,544,073 $ 4,715,702 $ 7,714,837 $ 9,703,806 $ City and County of Butte-Silver Bow, Montana Changes in Net Assets - Business-type Activities Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year Ended June 30, 2012 196 ---PAGE BREAK--- 197 Exhibit V Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenses: Community facilities 0.7% 1.1% 0.6% 0.7% 1.0% 3.9% 0.7% 0.6% 0.6% 0.4% Home health 3.7% 3.6% 3.4% 3.4% 3.6% 3.3% 3.5% 3.3% 2.9% 3.2% Small business incubator 1.2% 1.2% 1.1% 1.3% 1.2% 1.1% 1.1% 1.2% 1.1% 0.9% Water utility division 53.0% 51.2% 49.3% 51.1% 51.4% 50.4% 52.3% 51.8% 52.5% 52.1% Metro sewer operations 23.5% 23.3% 23.4% 25.2% 25.8% 24.3% 25.1% 25.0% 24.9% 25.4% Solid waste 13.8% 13.5% 13.2% 13.6% 13.8% 14.8% 14.9% 15.8% 14.7% 15.5% Silver lake water system 1.7% 2.9% 4.2% 3.8% 2.4% 1.6% 1.7% 1.7% 2.8% 1.3% Water distribution systems improvements 2.2% 2.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Storm Water System Project 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.6% MSE-TA mariah project 0.3% 0.2% 3.6% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% MR infrastructure project 0.0% 1.0% 1.2% 0.9% 0.7% 0.6% 0.6% 0.6% 0.6% 0.6% Total Expenses 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Program Revenues: Charges for services: Water utility division 47.1% 44.3% 42.0% 43.2% 45.0% 41.8% 39.7% 36.8% 27.8% 29.8% Metro sewer operations 21.8% 20.8% 20.0% 19.3% 20.1% 18.5% 17.5% 17.0% 13.6% 19.2% Solid waste 15.6% 14.9% 15.6% 14.6% 15.8% 15.4% 13.9% 14.6% 13.4% 9.3% Other activities 7.3% 11.3% 12.5% 11.9% 11.5% 5.1% 4.2% 3.9% 5.7% 3.2% Silver lake water system 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4.3% Operating grants and contributions 0.0% 1.3% 1.6% 0.1% 7.7% 19.2% 24.7% 27.7% 0.0% 0.0% Capital grants and contributions 8.2% 7.4% 8.3% 10.9% 0.0% 0.0% 0.0% 0.0% 39.5% 34.2% Total Program Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana Changes in Net Assets - Business-type Activities - Percentage of Total Last Ten Fiscal Years (accrual basis of accounting) ---PAGE BREAK--- 198 Exhibit VI Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenses: Governmental activities 2 31,585,597 $ 35,325,920 $ 33,970,678 $ 37,617,332 $ 42,199,989 $ 42,828,139 $ 46,207,295 $ 47,871,373 $ 51,010,030 $ 49,978,498 $ Business-type activities 3 11,887,549 12,661,855 13,412,425 13,274,825 13,353,681 14,186,395 13,599,648 13,810,555 14,799,447 15,166,538 Total Expenses 43,473,146 47,987,775 47,383,103 50,892,157 55,553,670 57,014,534 59,806,943 61,681,928 65,809,477 65,145,036 Program Revenues: Governmental activities 2 19,132,542 19,721,648 19,849,763 23,671,862 23,393,702 19,946,763 23,361,978 23,212,030 26,048,427 29,167,244 Business-type activities 3 14,228,392 15,575,599 15,665,199 16,232,642 15,616,040 16,954,226 17,876,406 18,491,313 21,980,846 24,326,126 Total Program Revenues 33,360,934 35,297,247 35,514,962 39,904,504 39,009,742 36,900,989 41,238,384 41,703,343 48,029,273 53,493,370 Net (Expense) Revenue (10,112,212) (12,690,528) (11,868,141) (10,987,653) (16,543,928) (20,113,545) (18,568,559) (19,978,585) (17,780,204) (11,651,666) General Revenues and Transfers: Governmental activities 2 20,425,975 21,893,107 18,989,084 21,502,134 27,116,554 27,027,360 25,643,193 28,330,013 29,965,391 30,370,423 Business-type activities 3 243,510 70,731 34,545 461,028 808,404 785,256 267,315 34,944 533,438 544,381 Total General Revenues and Transfers 20,669,485 21,963,838 19,023,629 21,963,162 27,924,958 27,812,616 25,910,508 28,364,957 30,498,829 30,914,804 Change in Net Assets 10,557,273 $ 9,273,310 $ 7,155,488 $ 10,975,509 $ 11,381,030 $ 7,699,071 $ 7,341,949 $ 8,386,372 $ 12,718,625 $ 19,263,138 $ Data Source: Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year Ended June 30, 2012 3 See Exhibit IV 2 See Exhibit II City and County of Butte-Silver Bow, Montana Changes in Net Assets - Total ---PAGE BREAK--- Exhibit VII Fiscal Year Motor Ended June 30, Property Franchise Fuel Total 2003 18,231,045 216,207 731,704 19,178,956 2004 20,057,184 228,647 706,957 20,992,788 2005 16,387,508 240,923 685,844 17,314,275 2006 18,382,499 261,119 668,036 19,311,654 2007 22,622,589 288,216 665,350 23,576,155 2008 23,056,407 300,714 656,136 24,013,257 2009 22,661,639 321,282 643,665 23,626,586 2010 26,272,299 330,218 631,574 26,602,517 2011 26,787,812 350,428 625,158 27,763,398 2012 27,827,222 350,428 643,505 28,821,155 Percentage Change In Dollars Over 10 Years ago 52.6% 62.1% -12.1% 50.3% Fiscal Year Motor Ended June 30, Property Franchise Fuel Total 2003 95.1% 1.1% 3.8% 100.0% 2004 95.5% 1.1% 3.4% 100.0% 2005 94.6% 1.4% 4.0% 100.0% 2006 95.2% 1.4% 3.5% 100.0% 2007 96.0% 1.2% 2.8% 100.0% 2008 96.0% 1.3% 2.7% 100.0% 2009 95.9% 1.4% 2.7% 100.0% 2010 98.8% 1.2% 2.4% 100.0% 2011 96.5% 1.3% 2.3% 100.0% 2012 96.6% 1.2% 2.2% 100.0% Data Source: Applicable years' comprehensive annual financial report. Percentage of Total Tax Revenues by Source - Governmental Funds City and County of Butte-Silver Bow, Montana Last Ten Fiscal Years (accrual basis of accounting) Amounts 199 ---PAGE BREAK--- 200 Exhibit VIIA Chart-Tax Revenues by Source - Governmental Funds City and County of Butte-Silver Bow, Montana Last Ten Fiscal Years (modified accrual basis of accounting) $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Fiscal Year Motor Fuel Taxes Franchise Taxes Property Taxes ---PAGE BREAK--- Exhibit VIII 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General Fund Reserved 1,614,326 $ - $ 1,010,921 $ 1,301,210 $ 1,374,435 $ 1,850,364 $ 2,146,461 $ 1,869,470 $ 1,472,578 $ 1,688,036 $ Unreserved 4,923,356 7,069,850 4,839,324 4,922,303 5,100,825 4,583,046 4,193,244 4,606,908 4,870,939 4,473,581 Subtotal General Fund 6,537,682 7,069,850 5,850,245 6,223,513 6,475,260 6,433,410 6,339,705 6,476,378 6,343,517 6,161,617 General Fund Percentage Change -13.4% 8.1% # -17.3% 6.4% 4.0% -0.6% -1.5% 2.2% -2.1% -2.9% All Other Governmental Funds Reserved 16,717,068 7,631,881 7,740,375 9,949,927 8,464,836 10,151,918 11,988,488 14,031,410 36,422,282 34,109,089 Unreserved Special Revenue Funds1 10,127,987 19,358,505 21,043,519 20,901,824 28,613,794 29,235,044 27,031,863 24,767,997 (1,344,413) (489,205) Debt Service Funds - - - - - - - - - - Capital Projects Fund 11,083,586 4,464,972 4,220,666 4,287,624 4,375,157 4,351,734 9,754,832 5,320,398 5,245,529 3,440,607 Subtotal All Other Governmental Funds 37,928,641 31,455,358 33,004,560 35,139,375 41,453,787 43,738,696 48,775,183 44,119,805 40,323,398 37,060,491 Total Governmental Funds Reserved 18,331,394 7,631,881 8,751,296 11,251,137 9,839,271 12,002,282 14,134,949 15,900,880 37,894,860 35,797,125 Unreserved 26,134,929 30,893,327 30,103,509 30,111,751 38,089,776 38,169,824 40,979,939 34,695,303 8,772,055 7,424,983 Total Governmental Funds 44,466,323 $ 38,525,208 $ 38,854,805 $ 41,362,888 $ 47,929,047 $ 50,172,106 $ 55,114,888 $ 50,596,183 $ 46,666,915 $ 43,222,108 $ All Governmental Funds Percentage Change 29.5% -13.4% 0.9% 6.5% 15.9% 4.7% 9.9% -8.2% -7.8% -7.4% Notes: June 30, 2012 1 In fiscal year 2007, the City and County received a $5 million contribution from ARCO, which was unspent at June 30, 2007. City and County of Butte-Silver Bow, Montana Fund Balances - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 201 ---PAGE BREAK--- Exhibit IX Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Revenues: Taxes 17,914,887 $ 20,443,558 $ 16,542,024 $ 17,926,699 $ 21,278,904 $ 21,626,722 $ 24,857,438 $ 25,497,819 $ 27,298,789 $ 28,089,986 $ Licenses and permits 642,358 658,653 713,484 774,343 805,522 877,399 830,666 928,139 915,665 908,840 Intergovernmental 10,193,270 10,477,598 11,162,197 12,211,119 10,294,681 12,176,008 14,385,583 13,508,268 14,960,261 16,236,861 Charges for services 1,883,086 2,156,006 1,786,644 2,065,963 2,048,223 2,044,757 5,615,561 5,483,436 5,688,730 6,065,730 Fines and forfeitures 717,581 815,727 671,442 604,964 582,229 643,978 632,353 675,297 604,083 513,279 Special assessments 1,110,766 1,180,835 1,245,539 1,181,701 1,259,772 1,306,335 1,287,271 1,375,779 1,383,897 1,271,343 Health insurance contributions 2,100,952 2,318,251 2,612,512 2,842,499 2,895,136 3,175,460 3,213,761 3,295,629 3,276,856 3,746,273 Other grants and donations 774,183 709,832 829,506 1,589,605 6,840,412 703,469 1,370,834 1,683,976 3,518,458 5,118,977 Letter of credit in lieu of taxes 1,710,322 955,116 867,569 2,503,021 260,560 352,075 - - - - Investment earnings 913,868 480,857 1,076,240 1,758,247 2,504,774 2,145,787 937,855 396,421 355,257 342,376 Miscellaneous 214,615 223,945 335,503 225,007 378,402 567,440 809,217 1,080,856 1,591,208 994,491 Total Revenues 38,175,888 40,420,378 37,842,660 43,683,168 49,148,615 45,619,430 53,940,539 53,925,620 59,593,204 63,288,156 % change from prior year 2.0% 5.9% -6.4% 15.4% 12.5% -7.2% 18.2% 0.0% 10.5% 6.2% Taxes 46.9% 50.6% 43.7% 41.0% 43.3% 47.4% 46.1% 47.3% 45.8% 44.4% Licenses and permits 1.7% 1.6% 1.9% 1.8% 1.6% 1.9% 1.5% 1.7% 1.5% 1.4% Intergovernmental 26.7% 25.9% 29.5% 28.0% 20.9% 26.7% 26.7% 25.0% 25.1% 25.7% Charges for services 4.9% 5.3% 4.7% 4.7% 4.2% 4.5% 10.4% 10.2% 9.5% 9.6% Fines and forfeitures 1.9% 2.0% 1.8% 1.4% 1.2% 1.4% 1.2% 1.3% 1.0% 0.9% Special assessments 2.9% 2.9% 3.3% 2.7% 2.6% 2.9% 2.4% 2.6% 2.3% 2.1% Health insurance contributions 5.5% 5.7% 6.9% 6.5% 5.9% 7.0% 6.0% 6.1% 5.5% 5.9% Other grants and donations 2.0% 1.8% 2.2% 3.6% 13.9% 1.5% 2.5% 3.1% 5.9% 8.1% Letter of credit in lieu of taxes 4.5% 2.4% 2.3% 5.7% 0.5% 0.8% 0.0% 0.0% 0.0% 0.0% Investment earnings 2.4% 1.2% 2.8% 4.0% 5.1% 4.7% 1.7% 0.7% 0.6% 0.5% Miscellaneous 0.6% 0.6% 0.9% 0.5% 0.8% 1.2% 1.5% 2.0% 2.7% 1.6% Total revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.2% Notes: Data Source: (modified accrual basis of accounting) For the Fiscal Year Ended June 30, 2011 Applicable years' comprehensive 1 Includes all governmental fund City and County of Butte-Silver Bow, Montana General Governmental Revenues by Source (Unaudited) Last Ten Fiscal Years 202 ---PAGE BREAK--- Exhibit X Function 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenditures: Current: General government 6,469,559 $ 7,562,354 $ 8,483,889 $ 8,953,630 $ 9,481,676 $ 10,018,640 $ 10,457,497 $ 11,458,574 $ 12,474,199 $ 12,287,148 $ Public safety 8,955,757 9,978,594 9,699,778 10,197,642 10,876,965 12,311,497 13,161,267 12,997,523 13,509,599 14,156,543 Public works 3,915,817 4,473,862 4,174,413 4,576,959 4,866,008 5,413,879 5,777,139 5,878,676 5,853,713 6,289,553 Public health 2,465,793 2,553,622 2,680,162 2,890,485 3,010,363 3,423,381 4,078,925 4,398,727 4,314,569 4,089,051 Social and economic services 171,391 194,230 179,334 199,749 201,889 213,651 234,981 232,947 244,450 266,718 Culture and recreation 1,964,093 1,996,867 2,005,594 2,161,833 2,344,638 2,563,341 2,594,179 2,823,045 2,985,930 3,204,264 Housing and community development 1,158,655 2,932,454 1,564,992 2,998,699 5,409,237 3,083,104 3,218,235 2,637,652 4,977,792 3,134,041 Total Current 25,101,065 29,691,983 28,788,162 31,978,997 36,190,776 37,027,493 39,522,223 40,427,144 44,360,252 43,427,318 % Change From Prior Year -1.0% 18.3% -3.0% 11.1% 13.2% 2.3% 6.7% 2.3% 9.7% -2.1% Capital Outlay 6,029,366 8,611,622 2,486,879 3,373,209 3,911,062 2,430,736 9,009,423 9,109,766 6,025,536 13,594,069 % Change From Prior Year 69.1% 42.8% -71.1% 35.6% 15.9% -37.8% 270.6% 1.1% -33.9% 125.6% Debt Service2 Principal 8,131,939 8,157,860 6,147,031 5,668,811 3,069,620 3,047,950 2,777,083 3,730,440 4,082,022 2,527,347 Interest and fees 1,302,799 531,293 505,979 537,306 2,304,627 2,180,758 2,121,027 2,132,612 1,890,566 1,652,584 Bond issuance costs - - - - - - 193,760 - 272,160 260,644 Total Debt Service 9,434,738 8,689,153 6,653,010 6,206,117 5,374,247 5,228,708 5,091,870 5,863,052 6,244,748 4,440,575 % Change From Prior Year -4.7% -7.9% -23.4% -6.7% -13.4% -2.7% -2.6% 15.1% 6.5% -28.9% Total Expenditures 40,565,169 46,992,758 37,928,051 41,558,323 45,476,085 44,686,937 53,623,516 55,399,962 56,630,536 61,461,962 Debt Service as a % of Noncapital Expenditures 27.3% 22.6% 18.8% 16.3% 12.9% 12.4% 11.0% 12.7% 11.8% 8.7% Notes: Data Source: City and County of Butte-Silver Bow, Montana General Governmental Expenditures by Function (Unaudited) 1 Last Ten Fiscal Years (modified accrual basis of accounting) For the Fiscal Year Ended June 30, Applicable years' comprehensive annual 1 Includes all governmental fund types. 2 The classification between principal and interest is not available for fiscal years 1999-2006, 203 ---PAGE BREAK--- Exhibit XI Function 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Expenditures: Current: General government 6,469,559 $ 7,562,354 $ 8,483,889 $ 8,953,630 $ 9,481,676 $ 10,018,640 $ 10,457,497 $ 11,458,574 $ 12,474,199 $ 12,287,148 $ Public safety 8,955,757 9,978,594 9,699,778 10,197,642 10,876,965 12,311,497 13,161,267 12,997,523 13,509,599 14,156,543 Public works 3,915,817 4,473,862 4,174,413 4,576,959 4,866,008 5,413,879 5,777,139 5,878,676 5,853,713 6,289,553 Public health 2,465,793 2,553,622 2,680,162 2,890,485 3,010,363 3,423,381 4,078,925 4,398,727 4,314,569 4,314,569 Social and economic services 171,391 194,230 179,334 199,749 201,889 213,651 234,981 232,947 244,450 266,718 Culture and recreation 1,964,093 1,996,867 2,005,594 2,161,833 2,344,638 2,563,341 2,594,179 2,823,045 2,985,930 3,204,264 Housing and community development 1,158,655 2,932,454 1,564,992 2,998,699 5,409,237 3,083,104 3,218,235 2,637,652 4,977,792 3,134,041 Total Current 25,101,065 $ 29,691,983 $ 28,788,162 $ 31,978,997 $ 36,190,776 $ 37,027,493 $ 39,522,223 $ 40,427,144 $ 44,360,252 $ 43,652,836 $ Current: General government 25.8% 25.5% 29.5% 28.0% 26.2% 27.1% 26.5% 28.3% 28.1% 28.1% Public safety 35.7% 33.6% 33.7% 31.9% 30.1% 33.2% 33.3% 32.2% 30.5% 32.4% Public works 15.6% 15.1% 14.5% 14.3% 13.4% 14.6% 14.6% 14.5% 13.2% 14.4% Public health 9.8% 8.6% 9.3% 9.0% 8.3% 9.2% 10.3% 10.9% 9.7% 9.9% Social and economic services 0.7% 0.7% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% Culture and recreation 7.8% 6.7% 7.0% 6.8% 6.5% 6.9% 6.6% 7.0% 6.7% 7.3% Housing and community development 4.6% 9.9% 5.4% 9.4% 14.9% 8.3% 8.1% 6.5% 11.2% 7.2% Total Current 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% (modified accrual basis of accounting) For the Fiscal Year Ended June 30, 2012 City and County of Butte-Silver Bow, Montana General Governmental Current Expenditures by Function (Unaudited) 1 Last Ten Fiscal Years 204 ---PAGE BREAK--- Exhibit XII 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total Revenues - Exhibit IX 38,175,888 $ 40,420,378 $ 37,842,660 $ 43,683,168 $ 49,148,615 $ 45,619,430 $ 53,940,539 $ 53,925,620 $ 59,593,204 $ Total Expenditures - Exhibit X 40,565,169 46,992,758 37,928,051 41,558,323 45,476,085 44,686,937 53,623,516 55,399,962 56,630,536 61,461,962 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,389,281) (6,572,380) (85,391) 2,124,845 3,672,530 932,493 317,023 (1,474,342) 2,962,668 1,826,194 Other Financing Sources (Uses) Installment contract inception - - - - - - - - - - Tax increment bonds issued - - - - - - - - 13,705,000 4,050,000 General obligation bonds issued 12,574,000 - - - - 978,554 7,500,000 - - 9,505,000 Bond premiums - - - - - - 124,635 - - 355,770 General obligation notes issues - - - - 1,432,989 33,067 - - - - Insurance reimbursement 15,780 - - - 96,663 - 9,110 3,000 - 2,482 Special improvement district - - bonds issued - 400,000 - - - - - - - - Payment to refunding bond escrow agent - - - - - - - - (11,655,000) (9,721,820) Advance letter of credit - - - - - - - - - - Sale of capital assets - - 25,612 - - - - 2,000 104,550 - Transfers in 9,606,428 13,056,293 6,324,257 5,837,567 10,173,684 6,340,104 6,918,720 6,979,676 7,479,978 5,084,279 Transfers out (9,475,566) (12,825,028) (5,934,880) (5,454,329) (9,997,919) (6,041,159) (6,712,946) (6,733,411) (7,233,714) (4,838,014) Total Other Financing Sources (Uses) 12,720,642 631,265 414,989 383,238 1,705,417 1,310,566 7,839,519 251,265 2,400,814 4,437,697 Net Change in Fund Balances 10,331,361 $ (5,941,115) $ 329,598 $ 2,508,083 $ 5,377,947 $ 2,243,059 $ 8,156,542 $ (1,223,077) $ 5,363,482 $ 6,263,891 $ Data Source: Applicable years' comprehensive annual financial report. City and County of Butte-Silver Bow, Montana Changes in Fund Balances - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 205 ---PAGE BREAK--- 206 Exhibit XIIA Chart-Changes in Fund Balances - Governmental Funds City and County of Butte-Silver Bow, Montana Last Ten Fiscal Years (modified accrual basis of accounting) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -8,000,000 -6,000,000 -4,000,000 -2,000,000 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 1 2 3 4 5 6 7 8 9 10 Fiscal Year Series1 Series2 ---PAGE BREAK--- Fiscal Less: Total Total Year Tax Assessed Direct Ending Tax Real Mobile Personal Motor Exempt Market Tax June 30, Year Property Home Property Vehicle Property Value Rate1 2003 2002 1,510,197,258 10,485,852 33,436,423 1,428 50,303,459 1,503,817,502 216.35 2004 2003 1,522,233,956 10,397,595 28,527,746 1,255 47,796,617 1,513,363,935 219.00 2005 2004 1,317,164,163 11,041,565 29,773,087 2,260 50,317,847 1,307,663,228 223.62 2006 2005 1,560,551,015 10,199,975 28,719,197 94,240 53,134,397 1,546,430,030 242.54 2007 2006 1,817,623,590 10,939,722 29,215,183 65,375 58,140,238 1,799,703,632 255.20 2008 2007 1,994,573,633 10,388,921 31,971,153 76,284 59,146,227 1,977,863,764 302.27 2009 2008 2,104,765,106 10,373,592 36,058,107 72,795 64,113,888 2,087,155,712 298.00 2010 2009 2,647,331,033 10,001,273 35,204,322 72,798 78,211,071 2,614,398,355 296.66 2011 2010 2,484,377,269 9,697,511 39,178,191 50,229 84,798,691 2,448,504,509 349.84 2012 2011 2,164,702,570 9,155,794 40,245,654 63,925 93,796,301 2,120,371,642 351.28 43.3% -12.7% 20.4% 4376.5% 86.5% 41.0% 62.4% 2003 2002 97.2% 0.7% 2.2% 0.0% 100.0% 2004 2003 97.5% 0.7% 1.8% 0.0% 100.0% 2005 2004 97.0% 0.8% 2.2% 0.0% 100.0% 2006 2005 97.6% 0.6% 1.8% 0.0% 100.0% 2007 2006 97.8% 0.6% 1.6% 0.0% 100.0% 2008 2007 97.9% 0.5% 1.6% 0.0% 100.0% 2009 2008 97.8% 0.5% 1.7% 0.0% 100.0% 2010 2009 98.3% 0.4% 1.3% 0.0% 100.0% 2011 2010 98.1% 0.4% 1.5% 0.0% 100.0% 2012 2011 97.8% 0.4% 1.8% 0.0% 100.0% 1: These are the number of mills levied to provide funding for local government operations Souce: Mt Dept of Revenue;Butte-Silver Bow Budget Office % Change from 2001 to 2010 City and County of Butte-Silver Bow, Montana Assessed Market Value Last Ten Fiscal Years 207 ---PAGE BREAK--- Exhibit XIV Fiscal Debt Debt Special Year Operating Service Total Operating Service Total Districts 2003 190.60 28.40 219.00 349.08 12.53 361.61 21.49 2004 211.18 12.44 223.62 327.34 14.87 342.21 23.13 2005 217.71 24.83 242.54 394.62 18.49 413.11 25.80 2006 230.84 24.36 255.20 365.21 16.79 382.00 26.26 2007 279.50 22.77 302.27 369.47 15.52 384.99 26.02 2008 272.77 25.23 298.00 356.67 14.98 371.65 25.51 2009 278.24 18.42 296.66 367.66 1.00 368.66 25.26 2010 320.67 29.17 349.84 353.80 15.32 369.12 25.39 2011 322.67 28.61 351.28 332.36 13.43 345.79 23.60 2012 350.65 24.60 375.25 332.71 2.16 334.87 41.84 % Change From 2003-2012 84.0% -13.4% 71.3% -4.7% -82.8% -7.4% 94.7% Data Source: City and County of Butte-Silver Bow, Montana Direct and Overlapping Property Tax Rates 1 Last Ten Fiscal Years City and County Budget Office Direct Rate Notes: 2 Overlapping rates are those of governments that overlap the City and County's geographic boundaries. 1 Tax rates expressed in rate per $1,000 of annual taxes values mills). School District Overlapping Rates 2 208 ---PAGE BREAK--- Exhibit XV Percentage Percentage of Total of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Principal Taxpayer Value Rank Value Principal Taxpayer Value Rank Value Montana Resources, Inc. 12,789,195 $ 1 18.73% ASiMI 1 9,707,593 $ 1 17.16% REC (Formerly ASiMI) 1 10,802,850 2 15.82% Northwestern Energy 1 9,057,921 2 16.01% Northwestern Energy 1 9,724,992 3 14.24% Sumitomo Bank Capital Markets Inc 3,167,024 3 5.60% Basin Creek Equity Partners, LLC 1,157,188 4 1.69% Montana Resources, Inc. 1,098,158 4 1.94% Qwest Corporation 880,655 5 1.29% Qwest Corporation 1,030,536 5 1.82% Bresnan Broadband 854,891 6 1.25% TRI Touch America, Inc. 561,482 6 0.99% Praxair, Inc. - REC Affiliated 1 831,628 7 1.22% Wal-mart Real Estate Business 364,901 7 0.64% Verizon Wireless 379,686 8 0.56% Hyman David L. & Anne Trustees 353,187 8 0.62% Wal-mart Real Estate Business 292,309 9 0.43% Praxair, Inc. 1 334,820 9 0.59% Hyman David L. & Anne Trustees 273,674 10 0.40% Waterford 259,321 10 0.46% Total Principal Taxpayers 37,987,068 55.64% Total Principal Taxpayers 25,934,943 45.83% All Other Taxpayers 30,288,202 44.36% All Other Taxpayers 30,652,291 54.17% Total 68,275,270 $ 100.00% Total 56,587,234 $ 100.00% Notes: 1 Taxable valuation lies in whole or in part in the Uraban Revitalization District or Tax Increment Financing District. Data Source: City and County Tax Records 2012 2002 City and County of Butte-Silver Bow, Montana Principal Property Taxpayers Current Year and Ten Years Ago 209 ---PAGE BREAK--- Exhibit XVI Fiscal Year Taxes Levied Collections Ended for the Percentage in Subsequent Percentage Percentage June 30, Fiscal Year Amount of Levy Years 2 Amount of Levy Amount of Levy 2003 17,157,325 15,547,935 90.62% 700,379 16,248,314 94.70% 909,011 5.30% 2004 19,945,357 17,444,786 87.46% 594,912 18,039,698 90.45% 1,905,659 9.55% 2005 17,794,594 13,878,313 77.99% 532,136 14,410,449 80.98% 3,384,145 19.02% 2006 16,449,191 14,960,052 90.95% 1,169,078 16,129,130 98.05% 320,061 1.95% 2007 20,507,320 18,344,207 89.45% 697,894 19,042,101 92.86% 1,465,219 7.14% 2008 20,946,106 18,649,250 89.03% 1,265,254 19,914,504 95.07% 1,031,602 4.93% 2009 21,268,467 20,258,669 95.25% 838,643 21,097,312 99.20% 171,155 0.80% 2010 24,293,595 22,425,319 92.31% 739,963 23,165,282 95.36% 1,128,313 4.64% 2011 26,019,644 23,679,327 91.01% 363,911 24,043,238 92.40% 1,976,406 7.60% 2012 25,949,206 24,512,204 94.46% - 24,512,204 94.46% 1,437,002 5.54% Notes: Data Source: - City and County Tax Collection Records 1 Does not include Tax Increment Financing Industrial Districts or Urban Revitilization Agency Districts. 2 The City and County did not implement GASB Statement No. 44, retroactively. Fiscal Year of the Levy Total Collections to Date Uncollected Taxes City and County of Butte-Silver Bow, Montana Property Tax Levies and Collections 1 Last Ten Fiscal Years Collected Within the Total 210 ---PAGE BREAK--- Exhibit XVII General Special Solid Percentage Debt Fiscal Obligation Assessment Capital Notes & Sewer Water Waste Notes & of Personal Per Year Bonds 3 Bonds Leases Loans Bonds Bonds Bonds Loans Total Income2 Population2 Capita 2003 14,734,000 - 861,116 1,187,075 894,408 20,415,000 1,890,000 326,644 40,308,243 4.46% 33,193 1,214 2004 14,090,000 400,000 683,716 943,718 - 18,490,000 1,765,000 2,053,957 38,426,391 3.98% 33,038 1,163 2005 13,590,000 380,000 499,180 687,860 - 17,040,000 1,635,000 1,287,274 35,119,314 3.41% 32,076 1,095 2006 13,060,000 350,000 473,149 481,504 - 15,565,000 1,495,000 385,885 31,810,538 2.91% 32,[PHONE REDACTED] 12,510,000 315,000 445,705 1,762,317 - 13,243,800 - 78,130 28,354,952 2.44% 33,[PHONE REDACTED] 12,887,058 280,000 416,774 1,512,861 - 11,751,863 - 39,065 26,887,621 1.96% 32,[PHONE REDACTED] 19,806,671 240,000 386,274 1,256,492 - 9,008,158 - - 30,697,595 2.62% 32,[PHONE REDACTED] 18,811,630 200,000 354,120 988,420 - 8,354,837 - - 28,709,007 2.33% 32,[PHONE REDACTED] 17,851,416 155,000 320,223 815,507 - 6,772,316 - - 25,914,462 2.08% 34,[PHONE REDACTED] 16,951,202 105,000 284,489 634,109 1,041,322 5,647,044 - - 24,663,166 1.86% 34,383 717 Notes: Data Source: 2 Exhibit XXII 3 Beginning in fiscal year 2007, unamortized bond discounts and bond premiums are adjusted through the bonds payable. 1 Details regarding the City and County's outstanding debt can be found in the notes to the basic financial statements. City and County of Butte-Silver Bow, Montana Ratios of Total Debt Oustanding by Type 1 Last Ten Fiscal Years Business-type Activities Governmental Activities 211 ---PAGE BREAK--- Percentage of General Less: Amounts Assessed Market Fiscal Year Obligation Available in Debt Assessed Market Value of Debt Per Year Bonds Service Funds Total Population1 Value2 Property Capita 2003 14,734,000 699,025 14,034,975 33,193 1,503,817,502 $ 0.93% 423 2004 14,090,000 180,085 13,909,915 33,038 1,513,363,935 $ 0.92% 421 2005 13,590,000 91,492 13,498,508 32,076 1,307,663,228 $ 1.03% 421 2006 13,060,000 88,995 12,971,005 32,982 1,546,430,030 $ 0.84% 393 2007 12,510,000 370,227 12,139,773 33,905 1,799,703,632 $ 0.67% 358 2008 12,887,058 468,545 12,418,513 32,486 1,977,863,764 $ 0.63% 382 2009 19,806,671 206,511 19,600,160 32,602 2,087,155,712 $ 0.94% 601 2010 18,811,630 89,377 18,722,253 32,949 2,614,398,355 $ 0.72% 568 2011 17,851,416 163,220 17,688,196 34,234 2,448,504,509 $ 0.72% 517 2012 16,951,202 293,279 16,657,923 34,383 2,120,371,642 $ 0.79% 484 Data Source: 1 Exhibit XXII 2 Exhibit XIII Exhibit XVIII City and County of Butte-Silver Bow, Montana Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years 212 ---PAGE BREAK--- Exhibit XIX Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable 2 Debt Debt Repaid With Property Taxes Overlapping Debt1 Butte School District Number One, Montana 3 - $ 100.0% - $ City and County Direct Debt General obligation bonds 17,851,416 Special assessment bonds 155,000 Capital leases 320,223 Notes and loans 815,507 Total City and County Direct Debt 19,142,146 $ 100.0% 19,142,146 Total Direct and Overlapping Debt 19,142,146 $ Notes: Data Source: 3 Butte School District Number One, Montana City and County of Butte-Silver Bow, Montana Governmental Activities Direct and Overlapping Debt June 30, 2012 2 For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another government's taxable assessed value that is within the City's boundaries and dividing it by the City and County's total taxable assessed value. 1 Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City and County. 213 ---PAGE BREAK--- Exhibit XX 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Legal Debt Margin Debt limit (2.5% of total assessed value) 26,505,642 $ 26,865,022 $ 29,021,581 $ 38,500,598 $ 40,702,665 $ 49,237,905 $ 52,178,893 $ 65,359,959 $ 61,212,613 $ 53,009,291 $ Net debt applicable to limit: 15,774,399 14,978,823 14,305,550 13,575,657 12,510,000 12,887,058 19,806,671 18,811,630 17,851,416 16,951,202 Legal debt margin 10,731,243 $ 11,886,199 $ 14,716,031 $ 24,924,941 $ 28,192,665 $ 36,350,847 $ 32,372,222 $ 46,548,329 $ 43,361,197 $ 36,058,089 $ As a percentage of debt limit 40.49% 44.24% 50.71% 64.74% 69.26% 73.83% 62.04% 71.22% 70.84% 68.02% 2,120,371,642 $ Debt limit (2.5% of total assessed value) 53,009,291 $ Total bonded debt 17,056,202 Less special assessement bonds (105,000) Total debt applicable to limitation 16,951,202 Total legal debt margin 36,058,089 $ Legal Debt Margin Calculation for Fiscal Year 2010 Total assessed value City and County of Butte-Silver Bow, Montana Legal Debt Margin Last Ten Fiscal Years Fiscal Year Ended June 30, 214 ---PAGE BREAK--- Less Net Revenue Fiscal Operating Operating Depreciation & Available for Times Year Revenues Expenses Amortization Debt Service Principal Interest Total Coverage 2003 2,243,208 1,523,616 290,383 1,009,975 115,000 112,015 227,015 4.45 2004 2,339,333 1,603,374 294,787 1,030,746 125,000 105,140 230,140 4.48 2005 2,447,010 1,675,952 275,824 1,046,882 130,000 97,860 227,860 4.59 2006 2,364,395 1,717,163 315,095 962,327 140,000 89,880 229,880 4.19 2007 2,462,087 1,847,420 296,559 911,226 1,495,000 - 1,495,000 0.61 2008 1 2,628,622 2,096,777 335,552 867,397 - - - - 2009 2,497,468 2,027,230 306,423 776,661 - - - - 2010 2,712,168 2,181,947 318,325 848,546 - - - - 2011 2,975,870 2,170,407 323,721 1,129,184 - - - - 2012 2,298,055 2,352,772 329,767 275,050 - - - - Less Net Revenue Fiscal Operating Operating Depreciation & Available for Times Year Revenues Expenses Amortization Debt Service Principal Interest Total Coverage 2003 6,781,339 5,251,346 1,697,585 3,227,578 1,225,000 1,025,380 2,250,380 1.43 2004 6,967,125 5,557,567 1,786,537 3,196,095 1,290,000 912,074 2,202,074 1.45 2005 6,841,415 5,866,743 2,005,511 2,980,183 1,450,000 739,047 2,189,047 1.36 2006 7,017,603 6,084,499 2,147,751 3,080,855 1,475,000 688,882 2,163,882 1.42 2007 7,106,007 6,224,999 2,201,284 3,082,292 1,530,000 635,855 2,165,855 1.42 2008 1 7,258,140 6,572,564 2,267,677 2,953,253 1,595,000 564,359 2,159,359 1.37 2009 7,154,881 6,596,459 2,329,557 2,887,979 1,660,000 508,775 2,168,775 1.33 2010 6,904,199 6,867,426 2,582,629 2,619,402 1,580,000 274,425 1,854,425 1.41 2011 6,802,283 7,533,610 3,121,916 2,390,589 1,645,000 222,402 1,867,402 1.28 2012 7,664,876 7,716,837 3,170,978 3,119,017 1,690,000 170,228 1,860,228 1.68 Notes: 1 The revenue bonds were fully retired in fiscal year 2007. Data Source: Exhibit XXI City andCounty of Butte-Silver Bow Schedule of Revenue Bond Coverage Applicable years' comprehensive annual financial report. Water Utility Solid Waste Last Ten Fiscal Years 215 ---PAGE BREAK--- Exhibit XXII (in thousands of dollars) County as City Personal City & United a % of Median School City & State of United Year Population1 Income1 County States U.S. Age Enrollment3 County Montana States 2003 33,193 904,772 27,256 31,466 87% 37.5 4,912 4.9% 4.5% 6.5% 2004 33,038 964,483 29,163 33,090 88% 38.9 4,708 4.7% 4.2% 5.8% 2005 32,076 1,029,823 31,324 34,471 91% 38.9 4,676 4.1% 3.8% 5.2% 2006 32,982 1,094,702 33,641 35,919 94% 41.6 4,593 3.6% 3.3% 4.8% 2007 33,905 1,163,668 36,130 37,356 97% 41.6 4,431 3.3% 3.1% 4.7% 2008 32,486 1,372,284 38,376 40,941 94% 42.0 4,373 4.3% 4.1% 5.7% 2009 32,602 1,170,662 35,908 38,615 93% 42.0 4,323 6.1% 6.4% 9.7% 2010 32,949 1,234,337 34,622 40,166 86% 42.5 4,328 5.7% 7.2% 9.8% 2011 34,234 1,244,179 34,828 39,635 88% 41.8 4,227 7.1% 7.0% 9.3% 2012 34,383 1,329,445 38,666 41,560 93% 39 4,246 6.2% 6.3% 8.2% City and County of Butte-Silver Bow, Montana Demographic and Economic Statistics Last Ten Years 4 Montana Department of Labor & Industry, not seasonally adjusted, http://www.ourfactsyourfuture.org/cgi/dataanalysis/AreaSelection.asp?tableName=Labforce Per Capita Income1 Unemployment Rates4 Data Sources: 3 Butte School District Number One 1 U.S. Bureau, of Census, http://www.bea.gov/regional/reis/default.cfm?catable=CA1-3§ion=2 2007 & 2008, management estimates, most current data available. 2 Based upon management's estimates. 216 ---PAGE BREAK--- Exhibit XXIII COMPANY NAME PRODUCT OR SERVICE Acadia Montana Health Services Advanced Silicon Materials Polysilicon Production Aware, Inc. Human Services Butte Sheltered Workshop Retail Butte Convalescent Center Health Services Community Counseling & Correctional Service Adult Social Services Community Health Center Health Services Easter Seals - Goodwill Human Services Harrington Restaurant Supply Wholesale Human Resources Council Dist XII (Headstart) Human Services Lady of the Rockies Rehab and Living Center Health Services Montana Resources Mining Northwestern Energy Utilities Optimum Cable/Telecommunications Safeway Retail Silver House Mental Health Services St. James Community Hospital Health Services Town Pump Retail/Fuel Services Wal-Mart Retail YMCA of Butte Fitness Source: Montana Department of Labor and Industry Note: Due to confidentiality laws, top employer lists are provided in alphabetical order only. The listing cannot be ranked in order of employment and no employment data can be provided for individual businesses. Data is derived from the most current information available at this time. City and County of Butte-Silver Bow, Montana Top Twenty Private Employers Year Ended June 30, 2012 217 ---PAGE BREAK--- Exhibit XXIV Function 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General Government 244 248 256 187 201 195 199 200 207 203 Public Safety Police Sheriff 1 1 1 1 1 1 1 1 1 1 Undersheriff 1 1 1 1 1 1 1 1 1 1 Officers 46 46 41 41 44 44 44 47 48 47 Civilians 16 17 21 21 20 21 21 22 21 23 Detention Officers 18 18 25 26 27 27 27 27 28 27 Fire Chief 1 1 1 1 1 1 1 1 1 1 Assistant Chief 1 1 1 1 1 1 1 1 1 1 Firefighters and Officers 31 31 30 30 32 32 32 31 30 30 Civilians 1 1 1 1 1 1 1 1 1 1 Highways and Streets Engineering 2 2 2 2 2 2 2 2 3 3 Maintenance 21 20 17 17 17 21 24 24 21 24 Sanitation 6 5 5 5 5 6 6 6 8 8 Culture and Recreation 8 8 7 7 10 8 8 8 8 10 Water 45 44 46 44 41 45 45 50 45 47 Sewer 27 27 27 27 25 28 28 26 27 29 Total 469 471 482 412 429 434 441 448 451 456 Percentage Change From Prior Year 5.4% 0.4% 2.3% -14.5% 4.1% 1.2% 1.6% 1.6% 0.7% # 1.1% As of June 30, City and County of Butte-Silver Bow, Montana Full-time Equivalent Employees by Function Last Ten Fiscal Years 218 ---PAGE BREAK--- Exhibit XXV Function 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Police Physical arrests 1,641 2,065 1,837 1,080 2,414 2,346 2,976 3,839 3,577 3,651 Parking violations 13,102 14,480 12,527 13,886 15,288 20,695 14,769 7,335 9,576 11,149 Traffic violations 5,540 5,502 3,958 2,589 4,273 5,195 5,401 4,350 3,848 3,461 Fire Inspections 161 149 152 168 125 117 132 177 185 243 Highway and streets Street resurfacing (miles) 2.9 2.9 2.9 2.9 4.0 3.5 4 6.8 6.1 22.9 Potholes repaired 1,400 1,400 1,400 1,400 1,500 2300 2500 2500 2800 2650 Sanitation Refuse collected (tons/day) 178.20 190.18 238.30 207.77 219.93 232.77 233.43 176.59 207.34 208.43 Recyclables collected (tons/day) 21.55 22.27 25.37 25.31 23.49 27.26 24.56 20.92 21.43 18.94 Water Connections 11,962 11,950 11,953 11,983 11,971 12,273 12,313 12,358 12,399 12,746 Water main breaks 261 228 240 258 200 268 284 240 232 212 Average daily consumption (thousands of gallons) 7,310 6,950 7,340 8,280 7,590 7,500 6,653 5,874 6,559 7,978 Wastewater Average daily sewage treatment (million of gallons/day) 3.33 3.19 3.19 3.17 3.60 3.56 3.21 3.58 3.94 3.78 Data Source: Various City/County departments Fiscal Year Ended June 30, City and County of Butte-Silver Bow, Montana Operating Indicators by Function/Program Last Ten Fiscal Years 219 ---PAGE BREAK--- Exhibit XXVI Function 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Public Safety Police: Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 25 25 23 24 24 25 25 26 34 33 Fire stations 11 11 11 11 11 11 11 11 11 11 Sanitation Collection trucks 6 6 7 8 8 10 10 10 16 16 Highways and streets Streets (miles) 710 715 715 715 715 715 715 715 715 715 Streetlights 3,230 3,234 3,241 3,258 3,311 3,326 3,327 3,330 3,329 3,330 Traffic signals 39 40 40 40 40 40 40 40 48 48 Culture and recreation Parks acreage 3,897 3,897 3,895 4,195 4,195 4,195 4,195 4,195 4,195 4,195 Parks 44 44 44 44 44 44 44 44 44 44 Swimming pools 1 1 1 - - - - - - - Tennis courts 14 14 14 14 14 14 14 14 14 14 Community centers 1 1 1 1 1 1 1 1 1 1 Water Water mains (miles) 217 217 217 217 217 217 217 217 217 217 Fire hydrants 1,024 1,026 1,026 1,030 1,030 1,050 1,078 1,185 1,197 1,197 Maximum daily capacity (millions of gallons) 23 23 23 23 23 23 23 23 23 23 Sewer Sanitary sewers (miles) 202.40 202.80 203.20 203.60 203.60 203.60 203.60 170.80 176.74 172.04 Storm sewers (miles) 50.20 50.20 50.30 50.30 50.30 50.30 50.30 69.61 69.61 81.27 Maximum daily treatment capacity (million of gallons/day) 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 Data Source: Various City/County departments City and County of Butte-Silver Bow, Montana Capital Asset and Infastructure Statistics by Function/Program Last Ten Fiscal Years Fiscal Year Ended June 30, 220 ---PAGE BREAK--- Comprehensive Annual Financial Report and Audit City and County of Butte-Silver Bow, State of Montana For Fiscal Year Ended June 30, 2012 155 West Granite Street Butte, MT 59701 (406) 497-6320 Email:[EMAIL REDACTED] Prepared by: City and County of Butte-Silver Bow-Finance & Budget Department