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City and County Of Butte-Silver Bow, State of Montana Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 2011 ---PAGE BREAK--- ---PAGE BREAK--- City and County of Butte-Silver Bow, State of Montana Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 2011 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, 2011 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 Urban Revitalization Agency Economic Development………………………………………… 126 Community 127 Hard Rock Mine Trust 128 Community Development Block Grant Projects 129 MT Pole Institutional 130 911 Emergency 131 Community Transportation Enhancement Program 132 Department of Natural Resource & Conservation 133 Local Law Enforcement Block 134 Clark Tailings Operations & Maintenance 135 PIT Watch ED 136 Arco Historic Preservation 137 East Butte 138 County Land 139 Department of Justice 140 Montana Historical Preservation 141 Superfund Health Studies 142 ARCO Superfund Land Management/GIS 143 Anaconda-ARCO Community 144 ARCO Lead 145 Superfund Residential Metals 146 Natural Resource Damages Program Greenway Projects 147 East Butte RRA Revolving Loan 148 ARCO Redevelopment Trust 149 ARCO Superfund Stormwater Capital Improvement 150 RTP Grants 151 Combining Balance Sheet - Nonmajor Debt Service 152 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Debt Service 153 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Tax Increment Bond 154 SID Revolving 155 Civic Center Bond Issue 156 LEA Detention Center & Administration Project 157 Ladder Truck Bond 158 Archives 159 iv ---PAGE BREAK--- Page ASiMI Bond 160 Combining Balance Sheet - Nonmajor Capital Projects 161 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Capital Projects 162 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Capital Improvements 163 Hard Rock Mine Capital Trust 164 Highway Abandonment 165 Junk Vehicle Capital Improvement 166 Silver Lake Water Distribution System Improvements 167 Archives Building Project 168 REC Expansion 169 Civic Center Renovation 170 Detention Center & LEA Administrative Project 171 Combining Statement of Net Assets - Nonmajor Enterprise 172 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Nonmajor Enterprise 173 Combining Statement of Cash Flows - Nonmajor Enterprise 174 Combining Statement of Cash Flows - Nonmajor Proprietary 175 Combining Statement of Net Assets - Internal Services 177 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Internal Service 178 Combining Statement of Cash Flows - Internal Service 179 Combining Statement of Fiduciary Net Assets Trust 182 Combining Statement of Changes in Fiduciary Net Assets - Trust 183 Statement of Changes in Fiduciary Assets and Liabilities.……………………………………. 184 STATISTICAL SECTION 187 Government-wide Net Assets by 187 Chart-Government-wide Net Assets by 188 Changes in Net Assets - Governmental 189 Changes in Net Assets - Governmental Activities - Percentage of 190 Changes in Net Assets - Business-type 191 Changes in Net Assets - Business-type Activities - Percentage of 192 Changes in Net Assets - 193 Tax Revenues by Source - Governmental 194 Chart-Tax Revenues by Source - Governmental 195 Fund Balances - Governmental 196 General Governmental Revenues by Source 197 General Governmental Expenditures by Function 198 General Governmental Current Expenditures by Function (Unaudited)…………………………… 199 Changes in Fund Balances - Governmental 200 Chart-Changes in Fund Balances - Governmental 201 Assessed Market 202 Direct and Overlapping Property Tax 203 Principal Property 204 Property Tax Levies and 205 Ratios of Total Debt Oustanding by 206 Ratio of General Bonded Debt 207 Governmental Activities Direct and Overlapping 208 Legal Debt 209 Schedule of Revenue Bond 210 Demographic and Economic 211 Top Twenty Private 212 Full-time Equivalent Employees by 213 Operating Indicators by 214 Capital Asset and Infastructure Statistics by Function/Program…………………………………… 215 v ---PAGE BREAK--- ---PAGE BREAK--- Introductory Section ---PAGE BREAK--- ---PAGE BREAK--- 1 April 16, 2012 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, 2011. 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, 2011, 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, 2011, 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 2000, it ranked seventh 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 34,606 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, construction of a new Walgreens store on Harrison Avenue is nearing completion. The Meadowlands Apartments added 48 units of affordable senior housing with a $6 million development on Continental Drive. 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, FedEx Freight completed construction of an $8 million shipping transfer center located in the heart of the district. This modern 65 door cross-dock facility brought with it 26 new positions. The District is also nearing completion of a $7 million waste water line that will greatly benefit all the commercial enterprises located in the district. 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 historic M&M Cigar Store, Hirbour Building, and the Schumacher Building. Renovation/rehabilitation projects were recently completed at the Leonard Apartments, Copper King Mansion, Quarry Brewing, Pekin Noodle Parlor, and the Sears Lofts. The URA partnered with the School District to complete over three million dollars in upgrades to Naranche Stadium including lighting and installation of stadium seating for 4,200 spectators. Naranche Stadium had a very successful re-opening when the first game in 38 years was played there this fall. 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, enacted expansion plans that included construction of two new buildings to house WET and Kevin Stenson, Physical Therapy. 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 2011 exceeded $208,125 and the average yield on the majority of investments for the fiscal year was .99%. Investment income includes the fair value of investments. ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- Citizens of Butte-Silver Bow Chief Executive Council of Commissioners OTHER ELECTED OFFICIALS County Attorney Assessor Auditor Clerk & Recorder Coroner Public Administrator Sheriff Supt of Schools Treasurer Clerk of Court District Court Judge Justice of the Peace City Court Judge Department Heads, Boards & Commissions Appointment Approval Legislation & Policies Legal Counsel PUBLIC WORKS Water Utility Road Bridge Transit Metro Sewer Solid Waste Traffic Control Parks Animal Control COMMUNITY DEVELOPMENT URA BDC TIFID Building & Code Planning Extension Agency PUBLIC SAFETY Law Enforcement Detention Center Fire Dept of Emergency Services Parking FINANCE & RECORDS Treasurer Auditor Clerk & Recorder Elections Budget MIS Human Resource Assessor COMMUNITY SERVICES Health Library Archives Recreation Civic Center Gov’t Dev Disabled LEGAL & JUDICIAL County Attorney Public Administrator Clerk of Court District Court Justice Court City Court Coroner Probation Law Library City & County of Butte-Silver Bow Organizational Chart 7 ---PAGE BREAK--- City and County of Butte-Silver Bow City and County Officials June 30, 2011 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 Ide 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, 2011 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, 2011. 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 $183,288,939 (net assets) for the fiscal year reported. • Total net assets are comprised of the following: Capital assets, net of related debt, is $116,150,152 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 $49,896,214 are restricted by constraints imposed from outside the City and County such as debt covenants, grantors, laws, or regulations. Unrestricted net assets of $17,242,573 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 $52,327.898 this year. This compares to the prior year restated ending fund balance of $50,241,272 showing an increase of $2,086,626 during the current fiscal year. Unassigned fund balance of $3,526,526 at June 30, 2011 shows a $1,080,382 decrease from the prior year. • At the end of the current fiscal year, unassigned fund balance for the general fund was $4,870,939, or 21.8% of total general fund expenditures in fiscal year 2011. The percentage at June 30, 2010 was 21.2%, 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, 2011 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, 2011 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, 2011 14 Financial Analysis of the City and County as a Whole The City and County’s net assets at fiscal year-end are $183,735,381. The following table provides a summary of the City and County’s net assets comparing June 30, 2011 with June 30, 2010: Restated Restated Restated 2011 2010 2011 2010 2011 2010 2011 2010 Assets: Current assets 59,326 $ 59,624 $ 15,699 $ 16,930 $ 75,025 $ 76,554 $ 32% 34% Non-current assets 83,987 82,635 75,525 68,317 159,512 150,952 68% 66% Total assets 143,313 142,259 91,224 85,247 234,537 227,506 100% 100% Liabilities: Current liabilities 9,727 10,418 4,876 4,720 14,603 15,138 28% 27% Long-term liabilities 31,917 35,175 4,729 6,623 36,646 41,798 72% 73% Total liabilities 41,644 45,593 9,605 11,343 51,249 56,936 100% 100% Net assets: Invested in capital assets, net of debt 50,401 47,028 65,748 55,900 116,149 102,928 63% 60% Restricted 48,009 9,160 1,887 2,904 49,896 12,064 28% 7% Unrestricted 3,259 40,478 13,984 15,100 17,243 55,578 9% 33% Total net assets 101,669 $ 96,666 $ 81,619 $ 73,904 $ 183,288 $ 170,570 $ 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 the restated 5.7 to 1 at June 30, 2010) and 3.3 to 1 (as compared to 3.6 to 1 at June 30, 2010) for business type activities. For the City and County overall, the current ratio is 5.1 to 1 (as compared to 5.1 to 1 at June 30, 2010). 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 $5,003,787 in this fiscal year as compared to a $3,670,669 increase in fiscal year 2010. Net assets increased $7,714,837 in fiscal year 2011 as compared to an increase of $4,175,702 for business-type activities in fiscal year 2010. The City and County's overall financial position improved during fiscal year 2011 by $12,718,625. Note that approximately 58.4% of the governmental activities’ total assets are tied up in capital as compared to 57.8% at June 30, 2010. 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 79.5% of its total assets and 66.6% 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, 2011 15 The following chart reports the total net asset balances from fiscal year 2003 - 2011. $74,526,219 $82,863,923 $89,092,644 $99,138,998 $147,841,932 $155,541,003 $162,538,854 $170,925,226 $183,735,381 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year 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, 2011 16 The following table presents the details of the changes in net assets for fiscal years 2011 and 2010. Restated Restated 2011 2010 2011 2010 2011 2010 Revenues: Program: Charges for services & fines 6,858 $ 6,757 $ 13,302 $ 13,373 $ 20,160 $ 20,130 $ Operating grants 14,512 16,455 - 5,118 14,512 21,573 Capital grants 4,678 - 8,679 - 13,357 - General: Taxes 27,763 26,603 - - 27,763 26,603 Investment earnings 355 396 43 50 398 446 Other 1,600 1,085 736 231 2,336 1,316 Total revenues 55,766 51,296 22,760 18,772 78,526 70,068 Program expenses: General government 13,176 12,091 - - 13,176 12,091 Public safety 14,411 14,294 - - 14,411 14,294 Public works 6,711 6,871 - - 6,711 6,871 Public health 4,292 4,531 - - 4,292 4,531 Social and economic services 248 237 - - 248 237 Culture and recreation 3,393 2,993 - - 3,393 2,993 Housing and community development 7,180 4,782 - - 7,180 4,782 Interest 1,598 2,072 - - 1,598 2,072 Water Utility Division - - 7,763 7,149 7,763 7,149 Metro Sewer Operations - - 3,687 3,459 3,687 3,459 Solid Waste - - 2,170 2,182 2,170 2,182 Other enterprise activities - - 1,179 1,021 1,179 1,021 Total expenses 51,009 47,871 14,799 13,811 65,808 61,682 Excess (deficiency) 4,757 3,425 7,961 4,961 12,718 8,386 Transfers 246 246 (246) (246) - - Change in net assets 5,003 3,671 7,715 4,715 12,718 8,386 Beginning net assets 96,666 93,350 73,904 69,189 170,570 162,539 Prior period adjustment - (355) - - - (355) Ending net assets 101,669 $ 96,666 $ 81,619 $ 73,904 $ 183,288 $ 170,570 $ 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, 2011 17 GOVERNMENTAL REVENUES The City and County is heavily reliant on property taxes to support governmental operations. Property taxes equal 48% of the revenues for governmental activities, as compared to 51.2% in fiscal year 2010. The City and County recognized two general government grants, the first was a capital grant ($348,672) from the Montana Department of Natural Resources and Conservation and was utilized to remediate failed mine caps on five major mine shafts. In addition, the City and County recognized a capital grant ($131,568) from the state Natural Resource Damages Fund for making general and ecological improvements along Blacktail Creek. Capital grants for public works included $2,535,861 from Superfund Remediation funds utilized for Stormwater Structure Construction and Remediation and $503,093 from ARRA funds utilized to construct a new bus barn for our transit system. Under housing and community development, we recognized CDBG funds ($1,135,623) to assist with the construction costs of a senior affordable apartment complex. Because of the City and County’s healthy financial position, we have been able to earn $355 thousand in investment earnings to support governmental activities. Also, note that program revenues cover 51.6% of governmental operating expenses as compared to 51.5% in fiscal year 2010. These are extremely high percentages. This means that the government’s taxpayers and the City and County’s other general revenues fund only 48.4% of the governmental activities in fiscal year 2011. GOVERNMENTAL FUNCTIONAL EXPENSES Public safety costs comprise 28.5% of the total governmental expenses, as compared to 29.9% in fiscal year 2010. These public safety costs increased 8/10th of 1% or by $117,381 at the government-wide financial reporting level. General government expenses makes up 26.1% of the total governmental expenses, as compared to 25.3% in fiscal year 2010. Public works is the third largest costly function, totaling over $6.7 million or 13.3% of total expenses, as compared to 14.4% in fiscal year 2010. 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 13,176,267 $ 621,136 $ 12,091,322 $ 292,667 $ Public safety 14,411,049 11,546,575 14,293,718 10,688,831 Public works 6,711,497 1,354,453 6,870,507 3,499,678 Public health 4,292,094 1,210,461 4,530,875 1,192,653 Social and economic services 248,113 212,425 237,155 201,667 Culture and recreation 3,393,276 2,425,046 2,993,172 2,075,260 Housing and community development 7,180,028 5,993,801 4,781,874 4,635,837 Interest 1,597,707 1,597,707 2,072,750 2,072,750 Total 51,010,030 $ 24,961,603 $ 47,871,373 $ 24,659,343 $ Governmental Activities Fiscal Year 2011 Fiscal Year 2010 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 46.1% of the total amount as compared to 43.3% in fiscal year 2010. ---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, 2011 18 BUSINESS-TYPE ACTIVITIES In total, the enterprise funds reported a $7,714,837 increase in net assets as compared to $4,715,702 in fiscal year 2010. The operating loss in fiscal year 2011 of $267,610 is down $344,103 from fiscal year 2010. Operating revenues are up $697,757 from fiscal year 2010 or 5.1%. Operating expenses were $1,042,170 more than fiscal year 2010, or 7.7%. 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 $52,327,898. Of this year-end total, $3,526,526 is unassigned indicating availability for continuing City and County service requirements. Legally restricted fund balances include $13.4 million for economic development, $8.3 million for urban revitalization, and $5.1 for the Hard Rock Mining Trust. Also $5.6 million is committed to economic development and $3 million for capital improvements. The total ending fund balances of governmental funds show an increase of $2,086,626 or 4.2% over the prior year. A large portion of this increase relates to the Ramsey TIFID fund or $2,035,583. 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 $132,861 or just 2.1%. In fiscal year 2010, the fund balance increased by $136,673. The general fund’s ending unassigned fund balance of $4,870,939 is considered adequate, representing the equivalent of 21.8% of annual expenditures. This percentage compares to 20.7% at June 30, 2010. Maintaining an unreserved 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 decreased $551,797 or 2.5% below fiscal year 2010. In fiscal year 2010, total revenues increased 8.1%. Real property tax revenues decreased $909,229 or 8.4% above the prior year. This decrease relates to a reduction in the mill levy, which was replaced by cash reserves in this fiscal year. Fines and forfeitures decreased $36,137 or 6.9% due to decreased fine collections. Most other general fund revenues were comparable to fiscal year 2010 amounts. The expenditures side reports an increase of $673,050 or 3.1% over the prior year. Last year the expenditures increased $1,179,096 or 6.2% over the June 30, 2009 amounts. General government expenditures were approximately $9.5 million, for an increase of $450,526 or This increase is due primarily to an increase in employee compensation of over $300,000, as this is our third and final year of a compensation improvement package. Public safety expenditures increased $376,293 or 4.4%. The majority of this increase relates to the 3rd year of the compensation improvement package. Most other functional expenditures were similar to those amounts reported in fiscal year 2010. ---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, 2011 19 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: 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 $6,692,151. Property taxes were $1,021,661 or 18% above those of fiscal year 2010. This increase primarily relates to both an increase in the tax mill levy and growth in the tax valuation. Before transfers out, this fund incurred expenditures of $2,182,164. The majority of these expenditures relate to marketing of the TIFID and infrastructure costs. The expenditures included the following: • Construction of a waste water line ($800,000) • Construction of a Fed-Ex transfer center ($550,000) • Construction of a warehouse for the Port of Montana ($250,000) • Construction of a test facility for Aerotech ($125,000) This fund transferred $1.8 million to the ASiMI bond fund to retire related revenue bonds. The fund balance in this fund increased $2,035,586. In addition, this fund transferred $803,977 to the general fund to cover some of the costs of accounting, budgeting and tax services provided by the general fund to this fund and transferred $15,000 to a nonmajor enterprise fund. The ending fund balance in this fund totals $10,906,515. 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 2011 decreased $101,916 or 1.5% from the prior fiscal year. Operating expenses were $666,184 or 9.7% more than fiscal year 2010. Most of this relates to increased depreciation expense due to the replacement of the Big Hole diversion Dam. Because of these changes, the operating loss for this fund is $768,100 more than the fiscal year 2010. This fund reported intergovernmental revenue of $7.6 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 diversion dam ($3.4 million), transmission line replacement ($2.1 million) and distribution line replacement ($2.4 million). The unrestricted net assets of this fund decreased approximately $1.3 million from the June 30, 2010 amount. The June 30, 2011 amount is $882,232. Metro Sewer Operations – For the 6th year in a row, the operating revenue in fiscal year 2011 were very close to the prior fiscal year amount. The 2011 operating revenues were $3,158,051. Operating expenses were $3,656,852 or $229,271 or 6.7% over the fiscal year 2010 amount. As a result, this fund continued reporting an operating loss, or $528,801. However, because of investment earnings, operating grants and a $390,700 debt forgiven, the fund reported a total decrease in net assets of $107,591 before transfers out of $150,000. At June 30, 2011, this fund reported $14,604,304 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, 2011 20 Solid Waste Program – The operating revenue in fiscal year 2011 was up $263,702 or 9.7% over the prior fiscal year. The increase relates to an environmental cleanup. Operating expenses were down just $16.540 or 7/10th of 1% below the fiscal year 2010 amount. As a result, operating income was up $275,242 or 51.9%. Total net assets increased $764,052 over fiscal year 2010. General Fund Budgetary Highlights The total revenue budget was amended upward just $7,838 and the total expenditure appropriation was amended upward by $223,100 or about 9/10th of In total, revenues realized were $458,168 over projected revenues. Real and personal property taxes were $117,668 above the final budget amount. This increase relates to unanticipated value growth. The motor vehicle taxes were below budget by $84,728. Intergovernmental revenue was $240,077 over the final budget or 4.9%, due primarily to conservative budgeting. Also a federal grant of $151,369, which was not budgeted. The charges for services amount was $129,270 over budget due to conservation budgeting. The two primary causes relate to the revenue for boarding prisoners ($84,513) and health inspection fees ($22,428). In total, 102.2% the final revenue budget was recognized. On the expenditure side, only 93.9% of the budget was expended. The general government function was $545,597 below the estimated appropriation. Public safety costs were $512,709 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, 2011, was $83,646,273 and $72,520,575 respectively. The net investment in the governmental activities increased by approximately $1.2 million and the business-type activities increased approximately $8.3 million as compared to the June 30, 2010 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. (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, 2011 21 The following table provides a summary of capital assets at June 30, 2011 and 2010. 2011 2010 2011 2010 2011 2010 Non-depreciable assets: Land 3,933,774 $ 3,933,774 $ 1,299,935 $ 1,299,935 $ 5,233,709 $ 5,233,709 $ Construction in progress 306,476 6,621,701 3,630,359 2,429,518 3,936,835 9,051,219 Total non-depreciable 4,240,250 10,555,475 4,930,294 3,729,453 9,170,544 14,284,928 Depreciable assets: Buildings 35,362,637 28,014,335 27,656,827 27,633,642 63,019,464 55,647,977 Improvements other than buildings 9,558,134 9,060,490 81,446,472 70,340,883 91,004,606 79,401,373 Machinery and equipment 19,273,039 18,892,734 9,736,166 9,588,766 29,009,205 28,481,500 Infrastructure 66,171,368 62,698,341 - - 66,171,368 62,698,341 Total depreciable assets 130,365,178 118,665,900 118,839,465 107,563,291 249,204,643 226,229,191 Less accumulated depreciation 50,959,155 46,790,220 51,249,184 47,037,873 102,208,339 93,828,093 Book value - depreciable assets 79,406,023 71,875,680 67,590,281 60,525,418 146,996,304 132,401,098 Percentage depreciated 39% 39% 43% 44% 41% 41% Total capital assets net 83,646,273 $ 82,431,155 $ 72,520,575 $ 64,254,871 $ 156,166,848 $ 146,686,026 $ Governmental Activities Business Activities Total Capital Assets At June 30, 2011, the depreciable capital assets for governmental activities were 39% depreciated. This amount is the same as the June 30, 2010 percentage. With the City and County’s business type activities, 43% of the asset values were depreciated at June 30, 2011 compared to 44% at June 30, 2010. In both instances, the minimal change in the percentage depreciated is a positive indicator. The major increase in the governmental activities capital asset costs relate to: • Buildings - The Archives Building Construction & Renovation Project ($6.3 million) • Infrastructure - Main St Road ($138,000); Seal Coverings for Roads ($131,000); Storm Water Structures ($282,000; Greenway Stream Project ($786,000); and the Anaconda Road Tunnel Project ($1.1million) The major increase in the business-type activities capital assets includes: • Construction in progress ($3.6 million) - waterline transmission & distribution projects • Improvements other than buildings - the Big Hole diversion dam ($3.4 million); transmission line replacement ($2.1 million); distribution line replacement ($2.7 million); Westside tank rehabilitation ($805,000); waste water treatment plant upgrades ($1.6 million); and sewer line upgrades ($318,000) ---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, 2011 22 Long-term Debt At the end of the fiscal year, the City and County had total long-term debt outstanding of $36,397,087. Of this amount, $18,672,923 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 $13,995,000 supported by tax increment financing. The following schedule includes the June 30, 2011 and 2010 outstanding long-term debt. Outstanding Borrowings % Change Restated Restated 2011 2010 2011 2010 2011 2010 General obligation bonds 17,851,416 $ 18,811,630 $ - $ - $ 17,851,416 $ 18,811,630 $ -5.1% Tax increment debt 13,995,000 14,935,000 - - 13,995,000 14,935,000 -6.3% Revenue bonds - - 7,050,000 8,752,100 7,050,000 8,752,100 -19.4% General obligation notes 815,507 988,420 - - 815,507 988,420 -17.5% SID bonds 155,000 200,000 - - 155,000 200,000 100.0% Capital leases 320,223 354,120 - - 320,223 354,120 -9.6% Post closure - - 640,230 649,180 640,230 649,180 -1.4% Compensated absences 3,259,941 3,067,129 263,257 235,108 3,523,198 3,302,237 6.7% Total 36,397,087 $ 38,356,299 $ 7,953,487 $ 9,636,388 $ 44,350,574 $ 47,992,687 $ -7.6% Totals Governmental Activities Business-type Activities See Note 3-H for additional information about the City and County’s long-term debt. 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--- Financial Section ---PAGE BREAK--- ---PAGE BREAK--- Basic Financial Statements 23 ---PAGE BREAK--- 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) 23,828,496 $ 5,076,088 $ 28,904,584 $ 1,871,065 $ Investments 25,646,211 6,740,730 32,386,941 - Receivables (Note 3B): Accounts 2,385,029 2,524,203 4,909,232 105,936 Property taxes 2,042,102 - 2,042,102 19,576 Special assessments 599,427 980,621 1,580,048 - Notes 4,885,670 - 4,885,670 - Interfund (220,208) 220,208 - - Primary government - - - 27,222 Inventory (Note 1-E-4) - 5,334 5,334 13,243 Prepaid items (Note I-E-5) - 11,122 11,122 12,040 Restricted assets (Note 1-E-6) 159,555 140,452 300,007 - Total Current Assets 59,326,282 15,698,758 75,025,040 2,049,082 Non-Current Assets Restricted investments - 2,914,895 2,914,895 - Capital assets (Note 3C) Nondepreciable 6,266,989 4,930,294 11,197,283 1,830,757 Depreciable, net 77,379,484 67,590,282 144,969,766 3,247,675 Other assets - deferred bond issuance costs 340,322 89,649 429,971 - Total Non-Current Assets 83,986,795 75,525,120 159,511,916 5,078,432 Total Assets 143,313,077 91,223,878 234,536,955 7,127,514 Liabilities Current Liabilities Vouchers payable 2,788,799 1,195,753 3,984,552 - Accounts payable 291,792 88,264 380,056 9,781 Contracts payable - - - - Accrued wages and benefits payable 446,811 110,314 557,125 22,132 Performance bonds payable 47,086 - 47,086 - Accrued interest payable 716,410 34,300 750,710 15,125 Unearned revenue 227,588 359,713 587,301 3,033 Revenue bonds payable - 2,440,000 2,440,000 23,000 Closure and postclosure care payable - 6,581 6,581 - Compensated absences payable 2,145,313 64,023 2,209,336 55,441 Claims payable 620,410 - 620,410 - General obligation bonds payable 960,214 - 960,214 - General obligation notes payable 181,399 - 181,399 - Tax increment bonds payable 1,215,000 - 1,215,000 - Special improvement districts bonds payable 50,000 - 50,000 - Capital leases payable 35,734 - 35,734 - Total Current Liabilities 9,726,556 4,298,948 14,025,504 128,512 Long-Term Liabilities (net of current portion): Customer deposits - 117,949 117,949 - Accrued interest payable - customer deposits - 22,502 22,502 - Closure and postclosure care payable - 256,676 256,676 - Revenue bonds payable - 4,332,316 4,332,316 727,000 Compensated absences payable 1,114,628 576,207 1,690,835 16,973 General obligation bonds payable 16,998,636 - 16,998,636 - General obligation notes payable 634,109 - 634,109 - Tax increment bonds payable 12,780,000 - 12,780,000 - Special improvement districts bonds payable 105,000 - 105,000 - Capital leases payable 284,489 - 284,489 - Total Long-Term Liabilities 31,916,862 5,305,650 37,222,512 743,973 Total Liabilities 41,643,418 9,604,598 51,248,016 872,485 Net Assets Invested in capital assets, net of related debt (Note 3J) 50,401,892 65,748,260 116,150,152 4,328,433 Restricted for: General Government 3,307,270 3,307,270 Public Safety 1,227,042 1,227,042 Public Works 15,205,832 15,205,832 Social and economic services 29,393 29,393 Cultural and recreation 291,728 291,728 Housing and community development 14,067,642 14,067,642 Economic development - ceased mining operations 5,139,369 5,139,369 Debt service - bond restrictions 2,168,637 1,887,333 4,055,970 95,183 Capital Projects 5,099,390 5,099,390 Self funded health insurance 1,290,053 1,290,053 Code enforcement 182,525 182,525 Unrestricted 3,258,886 13,983,687 17,242,573 1,831,413 Total Net Assets 101,669,659 $ 81,619,280 $ 183,288,939 $ 6,255,029 $ City and County of Butte-Silver Bow, Montana June 30, 2011 See accompanying notes to the basic financial statements 24 ---PAGE BREAK--- 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 13,176,267 $ 4,579,421 $ 7,472,041 $ 503,669 $ (621,136) $ - $ (621,136) $ - $ Public safety 14,411,049 1,079,128 1,785,346 - (11,546,575) - (11,546,575) - Public works 6,711,497 125,918 2,192,172 3,038,954 (1,354,453) - (1,354,453) - Public health 4,292,094 472,261 2,609,372 - (1,210,461) - (1,210,461) - Social and economic services 248,113 - 35,688 - (212,425) - (212,425) - Cultural and recreation 3,393,276 601,322 366,908 - (2,425,046) - (2,425,046) - Housing and community development 7,180,028 - 50,604 1,135,623 (5,993,801) - (5,993,801) - Interest 1,597,707 - - - (1,597,707) - (1,597,707) - Total Governmental Activities 51,010,030 6,858,050 14,512,131 4,678,246 (24,961,603) - (24,961,603) - Business-Type Activities: Community facilties 82,468 - - - - (82,468) (82,468) - Home health 431,861 438,868 - - - 7,007 7,007 - Small business incubator 155,872 61,956 - - - (93,916) (93,916) - Water utility division 7,763,105 6,107,699 - 8,658,332 - 7,002,926 7,002,926 - Metro sewer operations 3,686,853 2,993,824 - 20,298 - (672,731) (672,731) - Solid waste 2,170,407 2,941,414 230 - - 771,237 771,237 - Silver lake water system 416,201 758,225 - - - 342,024 342,024 - MR infrastructure project 92,680 - - - - (92,680) (92,680) - Total Business-Type Activities 14,799,447 13,301,986 230 8,678,630 - 7,181,399 7,181,399 - Total - Primary Government 65,809,477 $ 20,160,036 $ 14,512,361 $ 13,356,876 $ (24,961,603) 7,181,399 (17,780,204) - Component Units Port of Montana Port Authority 1,175,124 $ 1,010,517 $ - $ 241,721 $ - - - 77,114 General Revenues Property taxes levied for general purposes 26,787,812 - 26,787,812 184,109 Franchise taxes 350,428 - 350,428 Motor fuel taxes 625,158 - 625,158 Investment earnings 355,257 42,948 398,205 13,465 Miscellaneous 1,600,472 736,754 2,337,226 1,236 Transfers 246,264 (246,264) - - Total General Revenues and Transfers 29,965,391 533,438 30,498,829 198,810 Change in Net Assets 5,003,787 7,714,837 12,718,625 275,924 Net Assets Beginning of Year, as Restated 96,665,871 73,904,443 170,570,314 5,979,105 Net Assets End of Year 101,669,659 $ 81,619,280 $ 183,288,939 $ 6,255,029 $ 101,669,659 $ 81,619,280 $ 183,288,939 $ 6,255,029 $ 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, 2011 See accompanying notes to the basic financial statements 25 ---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--- Other Total Ramsay Governmental Governmental General TIFID Funds Funds Assets Cash and cash equivalents 583,310 $ 3,687,296 $ 18,811,852 $ 23,082,458 $ Investments 3,844,247 8,046,077 13,755,887 25,646,211 Restricted assets 1,532 - 158,023 159,555 Receivables: Accounts 302,726 - 2,074,020 2,376,746 Property taxes 1,034,009 - 1,008,093 2,042,102 Special assessments 16 194 599,217 599,427 Loans - - 4,885,670 4,885,670 Interfund 2,492,398 - 350,000 2,842,398 Total Assets 8,258,238 $ 11,733,567 $ 41,642,762 $ 61,634,567 $ Liabilities and Fund Balances Liabilities Vouchers payable 526,470 $ 825,277 $ 1,260,030 $ 2,611,777 $ Accounts payable 8,591 - 283,201 291,792 Accrued salaries and benefits 253,091 1,584 169,622 424,297 Performance bonds payable 29,852 - 17,234 47,086 Interfund payable - - 3,062,606 3,062,606 Deferred revenue 1,096,717 194 1,772,200 2,869,111 Total Liabilities 1,914,721 827,055 6,564,893 9,306,669 Fund Balances Restricted 1,472,578 10,906,512 35,629,791 48,008,881 Assigned - - 792,491 792,491 Unassigned 4,870,939 - (1,344,413) 3,526,526 Total Fund Balances 6,343,517 10,906,512 35,077,869 52,327,898 Total Liabilities and Fund Balances 8,258,238 $ 11,733,567 $ 41,642,762 $ 61,634,567 $ See accompanying notes to the basic financial statements Balance Sheet City and County of Butte-Silver Bow, Montana June 30, 2011 Governmental Funds 28 ---PAGE BREAK--- The Government-wide Statement of Net Assets For the Fiscal Year Ended June 30, 2011 Total Governmental Fund Balances 52,327,898 $ 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 129,339,244 $ Less accumulated depreciation (47,099,298) 82,239,946 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. 2,641,523 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. 1,824,153 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 (2,842,398) $ Interfund payables 2,842,398 - 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 (33,244,581) $ Compensated absences (3,122,782) Claims (620,410) Accrued interest on long-term debt (716,410) (37,704,183) Bond issuance costs are reported as expenditures in the governmental fund financial statements but capitalized on the government-wide statement of net assets. 340,322 Net Assets of Governmental Activities 101,669,659 $ See accompanying notes to the basic financial statements 101,669,659 $ City and County of Butte-Silver Bow, Montana Reconciliation of the Governmental Funds Balance Sheet to 29 ---PAGE BREAK--- Other Total Ramsay Governmental Governmental General TIFID Funds Funds Revenues Property taxes 9,878,763 $ 6,692,151 $ 10,727,875 $ 27,298,789 $ Special assessments - 9 1,383,888 1,383,897 Licenses and permits 915,665 - - 915,665 Intergovernmental 5,161,577 80 9,798,604 14,960,261 Charges for services 4,637,624 2,100 1,049,006 5,688,730 Fines and forfeitures 484,433 - 119,650 604,083 Private grants and donations 83,055 - 3,435,403 3,518,458 Investment earnings 60,128 24,540 270,589 355,257 Miscellaneous 95,097 75,208 1,420,903 1,591,208 Total Revenues 21,316,342 6,794,088 28,205,918 56,316,348 Expenditures Current: General government 9,459,102 - 3,015,097 12,474,199 Public safety 9,017,319 - 4,492,280 13,509,599 Public works 433,384 - 5,420,329 5,853,713 Public health 1,245,367 - 3,069,202 4,314,569 Social and economic services 93,900 - 150,550 244,450 Cultural and recreation 2,002,664 - 983,266 2,985,930 Housing and community development - 1,256,496 3,721,296 4,977,792 Capital Outlay 85,770 925,668 5,014,098 6,025,536 Debt Service: Principal 33,897 - 4,048,125 4,082,022 Interest 18,498 - 1,872,068 1,890,566 Bond issuance costs - - 152,160 152,160 Advance bond refunding - 120,000 120,000 Total Expenditures 22,389,901 2,182,164 32,058,471 56,630,536 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,073,559) 4,611,924 (3,852,553) (314,188) Other Financing Sources (Uses) Issuance of tax increment refunding bonds - - 13,705,000 13,705,000 Payment to refunded bond escrow agent - - (11,655,000) (11,655,000) Proceeds from the sale of capital assets 104,550 - - 104,550 Transfers in 1,160,276 - 6,319,702 7,479,978 Transfers out (324,128) (2,576,341) (4,333,245) (7,233,714) Total Other Financing Sources (Uses) 940,698 (2,576,341) 4,036,457 2,400,814 Net Change in Fund Balances (132,861) 2,035,583 183,904 2,086,626 Fund Balances Beginning of Year 6,476,378 8,870,929 34,893,965 50,241,272 Fund Balances End of Year 6,343,517 $ 10,906,512 $ 35,077,869 $ 52,327,898 $ 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, 2011 30 ---PAGE BREAK--- Net Changes In Fund Balances - Total Governmental Funds Amounts reported for governmental activities in the government- wide statement of activities are different because: 2,086,626 $ 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 (4,323,814) $ Capital outlay 5,852,140 1,528,326 The book value of capital assets sold are reported on the government-wide statement of activities but not reported in the governmental funds. (284,269) 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 @ 6/30/10 (3,199,178) $ Balance @ 6/30/11 2,641,523 (557,655) 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. (13,705,000) The payment to the bond refundinng escrow agent is reported as an other financing use, but the payment reduces long-term liabilities in the government-wide statememnt of net assets. 11,775,000 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. 152,160 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. 4,082,022 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 @ 6/30/10 1,018,697 $ Balance @ 6/30/11 (716,410) 302,287 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 @ 6/30/10 2,939,706 $ Balance @ 6/30/11 (3,122,782) (183,076) 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 @ 6/30/10 827,727 $ Balance @ 6/30/11 (620,410) 207,317 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. (9,428) 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. (390,523) 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 (7,233,714) $ Transfers out 7,233,714 - Change In Net Assets Of Governmental Activities 5,003,787 $ See accompanying notes to the basic financial statements 5,003,787 $ For the Fiscal Year Ended June 30, 2011 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 31 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues: Taxes: Real property 8,695,823 $ 8,695,823 $ 8,589,415 $ (106,408) $ Personal property - - 224,076 224,076 Motor vehicle 1,150,000 1,150,000 1,065,272 (84,728) Tax title and property tax sale - - - - Total Taxes 9,845,823 9,845,823 9,878,763 32,940 Licenses and permits 852,850 852,850 915,665 62,815 Intergovernmental 4,913,662 4,921,500 5,161,577 240,077 Charges for services 1,174,251 1,174,251 1,303,521 129,270 Fines and forfeits 461,500 461,500 484,433 22,933 City/County and employee health insurance contributions 3,375,000 3,375,000 3,276,856 (98,144) Investment earnings 70,000 70,000 60,128 (9,872) Private grants and contributions 65,000 65,000 83,055 18,055 Rental 36,500 36,500 57,247 20,747 Miscellaneous 55,750 55,750 95,097 39,347 Total Revenues 20,850,336 20,858,174 21,316,342 458,168 Expenditures: Current: General government 9,988,590 10,004,599 9,459,102 545,497 Public safety 9,558,567 9,530,028 9,017,319 512,709 Public works 456,772 456,772 433,384 23,388 Public health 1,250,101 1,320,101 1,245,367 74,734 Social and economic services 105,418 105,868 93,900 11,968 Cultural and recreation 2,179,811 2,285,111 2,002,664 282,447 Capital Outlay 38,918 98,798 85,770 13,028 Debt Service Principal 33,897 33,897 33,897 - Interest 18,499 18,499 18,498 1 Total Expenditures 23,630,573 23,853,673 22,389,901 1,463,772 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,780,237) (2,995,499) (1,073,559) 1,921,940 (Continued) For the Fiscal Year Ended June 30, 2011 Statement of Revenues, Expenditures And Changes In Fund Balances - Budget and Actual General Fund City and County of Butte Silver Bow, Montana 32 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Other Financing Sources (Uses) Proceeds from the sale of capital assets - - 104,550 104,550 Transfers in: District Court - 22,500 22,500 - Water Utility Division fund 100,000 100,000 100,000 - Metro Sewer Operations fund 150,000 150,000 150,000 - Solid Waste fund 35,000 35,000 35,000 - Ramsay TIFID #2 fund 803,977 803,977 803,977 - Uptown Revitalization Agency fund 48,799 48,799 48,799 - Transfers out: Public Archives fund (144,250) (144,250) (144,250) - Community development fund (85,360) (85,360) (85,360) - Library (47,033) (47,033) (47,033) - Belmont Senior fund - - - - Small Business Incubator fund (38,735) (38,735) (38,735) - Crime Control fund (8,750) (8,750) (8,750) - Total Other Financing Sources (Uses) 813,648 836,148 940,698 104,550 Net Change in Fund Balances (1,966,589) $ (2,159,351) $ (132,861) 2,026,490 $ Fund Balances Beginning of Year 6,476,378 Fund Balances End of Year 6,343,517 $ See accompanying notes to the basic financial statements (Concluded) 33 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes - real property - $ - $ 6,692,163 $ 6,692,163 $ Intergovernmental 88 88 80 Rent 2,100 2,100 2,100 - Investment earnings 25,000 25,000 24,540 (460) Miscellaneous - - 75,208 75,208 Total Revenues 27,188 27,188 6,794,091 6,766,903 Expenditures Current: Housing and community development 1,906,451 1,906,451 1,256,496 649,955 Capital Outlay 8,000,000 8,000,000 925,668 7,074,332 Total Expenditures 9,906,451 9,906,451 2,182,164 7,724,287 Excess (Deficiency) of Revenues Over (Under) Expenditures (9,879,263) (9,879,263) 4,611,927 14,491,190 Other Financing (Uses) Transfers out: General fund (803,977) (803,977) (803,977) - ASiMI bond fund (4,252,215) (4,252,215) (1,757,364) 2,494,851 Small business incubator fund (15,000) (15,000) (15,000) - Total Other Financing (Uses) (5,071,192) (5,071,192) (2,576,341) 2,494,851 Net Change in Fund Balances $(14,950,455) $(14,950,455) 2,035,586 $ 16,986,041 Fund Balances Beginning of Year 8,870,929 Fund Balances End of Year 10,906,515 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Ramsay TIFID Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 34 ---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 2011 was 12,399.. 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 56,980 billable units in fiscal year 2011. 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 12,280 units for collection and 21,145 units for disposal in fiscal year 2011. Citizens outside of the collection district are also assessed for disposal. 35 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Statement of Net Assets Proprietary Funds June 30, 2011 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 826,497 $ 794,083 $ 2,656,905 $ 798,603 $ 5,076,088 $ 746,038 $ Investments 165,257 3,348,560 2,740,849 486,064 6,740,730 - Restricted: Cash and cash equivalents 140,452 - - - 140,452 - Receivables: Accounts 1,400,184 153,990 378,594 591,435 2,524,203 8,283 Special assessments 11,919 545,805 422,897 - 980,621 - Interfund - 250,000 - - 250,000 - Inventory - - - 5,334 5,334 - Prepaid expenses 11,122 - - - 11,122 - Total Current Assets 2,555,431 5,092,438 6,199,245 1,881,436 15,728,550 754,321 Noncurrent Assets: Restricted investments 1,887,333 - 1,027,562 - 2,914,895 - Deferred bond issuance costs 89,649 - - - 89,649 - Capital assets: - Nondepreciable 4,017,535 166,800 740,526 5,433 4,930,294 40,000 Depreciable, net 51,556,670 10,661,913 3,098,933 2,272,766 67,590,282 1,366,527 Total Noncurrent Assets 57,551,187 10,828,713 4,867,021 2,278,199 75,525,120 1,406,527 Total Assets 60,106,618 15,921,151 11,066,266 4,159,635 91,253,670 2,160,848 (Continued) Business-type Activities 36 ---PAGE BREAK--- 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 783,633 $ 264,437 $ 110,636 $ 37,047 $ 1,195,753 $ 177,022 $ Accounts payable 39,197 49,067 - - 88,264 - Contracts payable - - - - - - Accrued wages and benefits payable 59,701 32,227 11,103 7,283 110,314 22,514 Compensated absences 35,047 22,112 4,563 2,301 64,023 137,159 Accrued interest payable 34,300 - - - 34,300 - Interfund payable - - - 29,792 29,792 - Unearned revenue 355,096 - - 4,617 359,713 - Closure and postclosure care payable - - 6,581 - 6,581 - Revenue bonds payable 1,690,000 750,000 - - 2,440,000 - Total Current Liabilities 2,996,974 1,117,843 132,883 81,040 4,328,740 336,695 Long-Term Liabilities (net of current portion): Customer deposits 117,949 - - - 117,949 - Accrued interest payable-customer deposits 22,502 - - - 22,502 - Closure and postclosure care - - 256,676 - 256,676 - Compensated absences payable 315,423 199,004 41,067 20,713 576,207 - Revenue bonds payable 4,332,316 - - - 4,332,316 - Total Long-Term Liabilities 4,788,190 199,004 297,743 20,713 5,305,650 - Total Liabilities 7,785,164 1,316,847 430,626 101,753 9,634,390 336,695 Net Assets Invested in capital assets, net of related debt (Note 3J) 49,551,889 10,078,713 3,839,459 2,278,199 65,748,260 1,406,527 Restricted for debt service 1,887,333 - - - 1,887,333 - Unrestricted 882,232 4,525,591 6,796,181 1,779,683 13,983,687 417,626 Total Net Assets 52,321,454 $ 14,604,304 $ 10,635,640 $ 4,057,882 $ 81,619,280 $ 1,824,153 $ See accompanying notes to the basic financial statements (Concluded) 37 ---PAGE BREAK--- 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 783,633 $ 264,437 $ 110,636 $ 37,047 $ 1,195,753 $ 177,022 $ Accounts payable 39,197 49,067 - - 88,264 - Contracts payable - - - - - - Accrued wages and benefits payable 59,701 32,227 11,103 7,283 110,314 22,514 Compensated absences 350,470 221,116 45,630 23,014 640,230 137,159 Accrued interest payable 34,300 - - - 34,300 - Interfund payable - - - 29,792 29,792 - Unearned revenue 355,096 - - 4,617 359,713 - Closure and postclosure care payable - - 6,581 - 6,581 - Revenue bonds payable 1,690,000 750,000 - - 2,440,000 - Total Current Liabilities 3,312,397 1,316,847 173,950 101,753 4,904,947 336,695 Long-Term Liabilities (net of current portion): Customer deposits 117,949 - - - 117,949 - Accrued interest payable-customer deposits 22,502 - - - 22,502 - Closure and postclosure care - - 256,676 - 256,676 - Compensated absences payable - - - - - - Revenue bonds payable 4,332,316 - - - 4,332,316 - Total Long-Term Liabilities 4,472,767 - 256,676 - 4,729,443 - Total Liabilities 7,785,164 1,316,847 430,626 101,753 9,634,390 336,695 Net Assets Invested in capital assets, net of related debt (Note 3J) 49,551,889 10,078,713 3,839,459 2,278,199 65,748,260 1,406,527 Restricted for debt service 1,887,333 - - - 1,887,333 - Unrestricted 882,232 4,525,591 6,796,181 1,779,683 13,983,687 417,626 Total Net Assets 52,321,454 $ 14,604,304 $ 10,635,640 $ 4,057,882 $ 81,619,280 $ 1,824,153 $ See accompanying notes to the basic financial statements (Concluded) 37 ---PAGE BREAK--- ---PAGE BREAK--- 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, 2011 Governmental Enterprise Funds Activities Water Metro Other Internal Utility Sewer Solid Enterprise Service Division Operations Waste Funds Total Funds Operating Revenues Charges for services 6,107,699 $ 2,942,945 $ 845,066 $ 1,259,049 $ 11,154,759 $ - $ Special assessments - 50,879 2,096,348 - 2,147,227 - City/County and Employee Health Insurance Contributions - - - - - 2,138,391 Private Grants and Donations 654,300 - - - 654,300 - Miscellaneous 40,284 164,227 34,456 107,088 346,055 7,920 Total Operating Revenues 6,802,283 3,158,051 2,975,870 1,366,137 14,302,341 2,146,311 Operating Expenses Personal services 2,567,412 1,766,127 390,085 432,420 5,156,044 1,336,439 Operation and maintenance 1,844,282 1,122,569 1,456,601 601,195 5,024,647 998,289 Depreciation 2,961,258 798,156 323,721 145,467 4,228,602 203,046 Amortization 160,658 - - - 160,658 - Total Operating Expenses 7,533,610 3,686,852 2,170,407 1,179,082 14,569,951 2,537,774 Operating Income (Loss) (731,327) (528,801) 805,463 187,055 (267,610) (391,463) Non-Operating Revenues (Expenses) Interest expense (229,495) - - (229,496) - SRF Bond Debt Forgiven - 390,700 - - 390,700 - Investment earnings 22,636 10,213 8,359 1,740 42,948 - Intergovernmental 8,004,032 20,298 230 - 8,024,560 940 Total Non-Operating Revenues (Expenses) 7,797,173 421,210 8,589 1,740 8,228,712 940 Income (Loss) Before Transfers 7,065,846 (107,591) 814,052 188,795 7,961,102 (390,523) Transfers in - - - 53,735 53,735 - Transfers out (100,000) (150,000) (50,000) - (300,000) - Change in Net Assets 6,965,846 (257,591) 764,052 242,530 7,714,837 (390,523) Total Net Assets Beginning of Year 45,355,608 14,861,895 9,871,588 3,815,352 73,904,443 2,214,676 Total Net Assets End of Year 52,321,454 $ 14,604,304 $ 10,635,640 $ 4,057,882 $ 81,619,280 $ 1,824,153 $ See accompanying notes to the basic financial statements Business-type Activities 39 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended June 30, 2011 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 6,806,306 $ 3,383,338 $ 2,647,043 $ 933,439 $ 13,770,126 $ - $ Cash received from interfund services provided - - - - - 2,148,663 Cash payments for personal services (2,658,521) (1,624,809) (395,725) (279,629) (4,958,684) (1,398,389) Cash payments for goods and services (2,015,149) (1,236,586) (1,484,599) (739,422) (5,475,756) (873,150) Net Cash Provided by Operating Activities 2,132,636 521,943 766,719 (85,612) 3,335,686 (122,876) Cash Flows from Noncapital Financing Activities Receipt of interfund loan - 41,081 - - 41,081 - Payments made on interfund payable - - - - - 940 Interest expense on customer deposits (5,310) - - - (5,310) - Transfers in - - - 53,735 53,735 - Transfers out (100,000) (150,000) (50,000) - (300,000) - Net Cash Flows from Noncapital Financing Activities (105,310) (108,919) (50,000) 53,735 (210,494) 940 Cash Flows from Capital and Related Financing Activities Capital grants 8,319,256 19,008 - - 8,338,264 - Principal paid on revenue bonds payable (1,645,000) (50) - - (1,645,050) - Interest paid on revenue bonds (230,703) - - (230,704) - Proceeds from issuance of bonds - 750,000 - - 750,000 - Principal payments on main extension contracts (51,672) - - - (51,672) - Proceeds from the sale of capital assets - - - - - - Payments for capital acquisitions (10,260,065) (2,020,932) (18,368) (107,925) (12,407,290) (168,117) Net Cash (Used in) Capital and Related Financing Activities (3,868,184) (1,251,975) (18,368) (107,925) (5,246,452) (168,117) Cash Flows from Investing Activities Investment earnings 22,636 10,213 8,360 1,741 42,950 - Net Increase (Decrease) in Cash and Cash Equivalents (1,818,222) (828,738) 706,711 (138,061) (2,078,310) (290,053) Cash and Cash Equivalents - Beginning of Year 4,837,762 4,971,381 5,718,605 1,422,728 16,950,476 1,036,091 Cash and Cash Equivalents - End of Year 3,019,540 $ 4,142,643 $ 6,425,316 $ 1,284,667 $ 14,872,166 $ 746,038 $ Reconciliation to Statement of Net Assets Cash and cash equivalents 966,949 $ 794,083 $ 2,656,905 $ 798,603 $ 5,216,540 $ 746,038 $ Investments 165,257 3,348,560 2,740,849 $ 486,064 6,740,730 - Restricted cash and investments 1,887,334 - 1,027,562 - 2,914,896 - Total 3,019,540 $ 4,142,643 $ 6,425,316 $ 1,284,667 $ 14,872,166 $ 746,038 $ (continued) Business-type Activities 40 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended June 30, 2011 Governmental Enterprise Funds Activities Water Metro Other Internal Utility Sewer Solid Enterprise Service Division Operations Waste Funds Total Funds Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income (731,327) $ (528,801) $ 805,463 $ 187,055 $ (267,610) $ (391,463) $ Adjustments: Depreciation 2,961,258 798,156 323,721 145,467 4,228,602 203,046 Amortization 160,658 - - - 160,658 - Intergovernmental revenue on-behalf payments 2,107 1,290 230 - 3,627 - (Increase) Decrease in Assets: Accounts receivable (1,267) (76,399) (362,391) (450,951) (891,008) (413) Special assessments receivables 15,298 166,706 33,564 - 215,568 - Inventory - - (1,221) (1,221) - Prepaid expenses 1,139 - - - 1,139 - Increase (Decrease) in Liabilities: Vouchers payable (102,512) 170,072 (6,085) 45,837 107,312 102,119 Accounts payable (71,601) 49,067 (111) - (22,645) (5,973) Accrued expenses - - - - - (39,927) Accrued wages and benefits payable (101,121) (61,558) (10,955) (17,032) (190,666) - Customer deposits 2,562 - - - 2,562 - Compensated absences 10,012 3,410 (16,717) 5,233 1,938 9,735 Unearned revenue (12,570) - - - (12,570) - Net Cash Provided by Operating Activities 2,132,636 $ 521,943 $ 766,719 $ (85,612) $ 3,335,686 $ (122,876) $ 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 41 ---PAGE BREAK--- Fiduciary Funds 42 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Statement of Fiduciary Net Assets Fiduciary Funds June 30, 2011 Investment Trust Agency Assets Cash and cash equivalents 9,110,836 $ 24,913,232 $ Investments - 990,567 Receivables - 2,372,330 Land acquired by tax deed - 261,541 Total Assets 9,110,836 28,537,670 $ Liabilities Accounts payable - 1,234,290 Vouchers payable - 3,861 Accrued interest payable - 235,931 Due to others - 20,840 Due to other governments - 27,015,528 Due to component unit - 27,220 Total Liabilities - 28,537,670 $ Net Assets Net assets held in trust for pool participants 9,110,836 $ See accompanying notes to the basic financial statements 43 ---PAGE BREAK--- Additions Shares and investments purchased 177,391,445 $ Investment earnings 183,961 Total Additions 177,575,406 Deductions Shares and investments redeemed 177,402,241 Investment earnings distributed - Total Deductions 177,402,241 Change in Net Assets 173,165 Net Assets Beginning of Year 8,937,671 Net Assets End of Year 9,110,836 $ See accompanying notes to the basic financial statements For the Fiscal Year Ended June 30, 2011 Investment Trust Funds Statement of Changes in Fiduciary Net Assets City and County of Butte-Silver Bow, Montana 44 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2011 45 Index Summary of Significant Accounting 1 Reporting Entity Basis of Presentation Measurement Basis of Assets, Liabilities and Fund Cash, Cash Equivalents and Interfund Consumable Restricted Assets Capital Accrued Liabilities and Long-term Bond Premiums, Discounts, Issuance Costs and Bond Refunding Gains and Fund Operating Revenues and Contributions of Interfund On-behalf Payments for Fringe Benefits Estimates Comparative Concentration of Credit Risk – Component Stewardship, Compliance and 2 Budgetary Excess of Expenditures over Appropriations Deficit Fund Equities Detailed Notes on All 3 Deposits and Receivables Property Taxes Capital Interfund Balances and Landfill Post-Closure 3-F Compensated Long-Term 3-H 3-I Fund Balances Other Notes 4 Risk Subsequent Contingent Construction External Investment Pool Prior Period Adjustments 4-F ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2011 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, 2011 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, 2011 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. The revenues are sufficient to comply with 125% debt service coverage ratio per bond indentures. 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, 2011 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, 2011 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, 2011. 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, 2011 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. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2011 52 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”. 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. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2011 53 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 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. (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, 2011 54 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. 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 – ($55,887) – 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. Sidewalk Special Fund – ($21,390) – 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 timing difference between charges incurred for sidewalk replacement and the five year payback period. Damages and Judgments Fund – ($316,081) – This fund accounts for judgments made against the local government. Property taxes will be levied in fiscal year 2011-2012 to cover this deficit as indicated by State Law. Montana Historical Preservation Fund – ($16,241) – 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 – ($324,180) – 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 – ($12,543) – 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 general fund has made an interim loan to the program to avoid delays. This project will be fully funded prior to closeout. Health Fund – ($152,263) – 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. (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, 2011 55 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 ($387,658) – 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 general fund has made an interim loan to the project to avoid delays. This project will be fully funded prior to closeout. Department of Justice Grants – ($2,722) – This fund accounts for a series of grants from the Department of Justice for law enforcement equipment and DUI Court. 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 – ($424) – 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, 2010, the carrying amount of the City and County's deposits, including certificates of deposit was $55,029,992 and the related bank balances totaled $55,317,190. Of the bank balance, $759,499 was covered by Federal Depository Insurance; $53625,944 was collateralized by the pledging financial institution’s trust department or an agent in the City and County’s name and $931,746 was uncollateralized. Component Unit’s Deposits At June 30, 2011, the carrying amount of the Port Authority's deposits, including certificates of deposit of $1,870,990 and the related bank balances totaled $1,887,217. Of the bank balance, 201,672 was secured by Federal Depository Insurance; $685,545 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. (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, 2011 56 At June 30, 2011 the City and County had the following investments presented by maturity period: Fair Investment Type Value U.S. Government Securities 7,246,377 $ Wells Fargo Restricted Investmments 1,139,199 Montana Investment Pool "2a7 like" 32,538,164 Total Investments 40,923,740 $ 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. 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, 2011 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. 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. 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. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2011 57 Cash and Investment Reconciliation: Cash and Cash Equivalents Investments Total Fund Reporting Level: Governmental Funds - Balance Sheet 23,858,288 $ 25,646,211 $ 49,504,499 $ Governmental Funds - Balance Sheet - Restricted 159,555 - 159,555 Proprietary Fund Type Statement of Net Assets 5,076,088 6,740,730 11,816,818 Proprietary Fund Type Statement of Net Assets - Restricted 140,452 2,914,895 3,055,347 Fiduciary Fund 26,243,220 10,101,403 36,344,623 Less cash on hand (27,520) (27,520) Total 55,450,083 $ 45,403,239 $ 100,853,322 $ Cash and cash equivalents 59,929,582 $ Investments 40,923,740 Total 100,853,322 $ 3-B. Receivables Receivables at June 30, 2011, 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, 2011, the amount of allowance for uncollectibles was $31,000. 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, 2010. The property taxes were due and recognized as an enforceable lien on January 31, 2011. 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, 2011 58 3-D. Capital Assets Capital asset activity for the year ended June 30, 2011, was as follows: Balance Balance 6/30/2010 Additions Deductions 6/30/2011 Governmental activities Nondepreciable capital assets Land 3,933,774 $ - $ - $ 3,933,774 $ Construction in progress 6,621,701 300,976 6,616,201 306,476 Total nondepreciable capital assets 10,555,475 300,976 6,616,201 4,240,250 Depreciable capital assets Buildings 28,014,334 7,432,772 84,469 35,362,637 Improvements other than buildings 9,060,490 497,644 - 9,558,134 Machinery and equipment 18,892,734 938,230 557,925 19,273,039 Infrastructure 62,698,341 3,473,026 - 66,171,367 Total depreciable capital assets 118,665,900 12,341,672 642,394 130,365,178 Total capital assets 129,221,375 12,642,648 7,258,595 134,605,428 Accumulated depreciation Buildings 6,995,267 848,490 - 7,843,757 Improvements other than buildings 3,611,750 310,557 - 3,922,307 Machinery and equipment 13,040,588 1,178,975 557,925 13,661,638 Infrastructure 23,142,614 2,388,838 - 25,531,452 Total accumulated depreciation 46,790,220 4,726,860 557,925 50,959,155 Governmental activities capital assets, net 82,431,155 $ 7,915,788 $ 6,700,670 $ 83,646,273 $ Governmental activities depreciation expense General government 655,423 $ Public safety 793,544 Public works 748,990 Public health 20,828 Culture and recreation 376,259 Housing and community development 2,131,816 Total governmental activities depreciation expense 4,726,860 $ (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, 2011 59 Balance Balance 6/30/2010 Additions Deductions 6/30/2011 Business-type activities Nondepreciable capital assets Land 1,299,935 $ - $ - $ 1,299,935 $ Construction in progress 2,429,518 3,482,501 2,281,660 3,630,359 Total nondepreciable capital assets 3,729,453 3,482,501 2,281,660 4,930,294 Depreciable capital assets Buildings 27,633,642 23,185 - 27,656,827 Improvements other than buildings 70,340,883 11,109,644 4,055 81,446,472 Machinery and equipment 9,588,766 164,813 17,413 9,736,166 Total depreciable assets 107,563,291 11,297,642 21,468 118,839,465 Total capital assets 111,292,744 14,780,143 2,303,128 123,769,759 Accumulated depreciation Buildings 12,700,508 665,021 - 13,365,529 Improvements other than buildings 27,800,749 3,043,633 - 30,844,382 Machinery and equipment 6,536,616 519,949 17,292 7,039,273 Total accumulated depreciation 47,037,873 4,228,603 17,292 51,249,184 Business-type activities capital assets, net 64,254,871 $ 10,551,540 $ 2,285,836 $ 72,520,575 $ (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, 2011 60 The following are the changes in component unit’s capital assets: Balance Balance 6/30/2010 Additions Deductions 6/30/2011 Component unit Nondepreciable capital assets Land 353,253 $ - $ - $ 353,253 $ Construction in progress 456,162 1,021,343 - 1,477,505 Total nondepreciable capital assets 809,415 1,021,343 - 1,830,758 Depreciable capital assets Warehouse and improvements 753,094 - - 753,094 Machinery and equipment 1,165,437 8,963 9,609 1,164,790 HUB Transportation facility Buildings and improvements 4,119,372 - 122,207 3,997,165 Tracks 1,469,324 - - 1,469,324 Total depreciable capital assets 7,507,227 8,961 131,816 7,384,373 Total capital assets 8,316,642 1,030,303 131,816 9,215,131 Accumulated depreciation Warehouse and improvements 534,934 12,474 - 547,408 Machinery and equipment 959,613 37,178 103,240 893,551 HUB Transportation facility Buildings and improvements 1,916,210 86,627 - 2,002,837 Tracks 659,845 33,060 - 692,905 Total accumulated depreciation 4,070,602 169,339 103,240 4,136,700 Component unit capital assets, net 4,246,040 $ 860,965 $ 28,576 $ 5,078,433 $ 3-E. Interfund Balances and Transfers Interfund balances at June 30, 2011, 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 2,462,606 $ 2,462,606 $ Nonmajor Governmental Funds 350,000 350,000 Metro Sewer Replacement Fund 250,000 250,000 3,062,606 $ 3,062,606 $ (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, 2011 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 $2,075,795 and estimated total current cost remaining to be recognized is $1,812,538. These amounts are based on what it would cost to perform all closure and post-closure care in 2011. Percentage of landfill capacity used to date is about 12.68%. 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 - $ 285,393 $ 38,735 $ 324,128 $ Ramsey TIFID 803,977 1,757,364 15,000 2,576,341 Nonmajor governmental funds 71,299 4,262,198 - 4,333,497 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 1,160,276 $ 6,319,955 $ 53,735 $ 7,533,966 $ Transfers to: ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2011 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 four outstanding general obligation bond issues. On November 3, 1998, the voters of the City and County approved a referendum to issue $2,400,000 in general obligation bonds for the purpose of renovating the local Civic Center, a multi-use recreation, cultural, and social facility. The bonds were issued July 15, 1999 with varying rates of interest 4.65% to 6.00%. The total bonds outstanding on June 30, 2011 are $1,365,000. On November 6, 2001 the voters of the City and County approved a ballot measure to issue $12.574 million in general obligation bonds to construct a 75-bed detention facility, remodel the old historical jail facility into office space, and updated 911-dispatch center. On July 15, 2002 the City and County issued $4,990,000 of general obligation bonds with varying interest rates of 3.90% to 4.60% with average coupon of 4.31% and final maturity of July 1, 2022. On January 14, 2003 the City and County issued the remaining $7,584,000 of General Obligation Bonds. These bonds had varying interest rates of 2.00% to 4.75% with average coupon rate of 4.14% and carry a final maturity on July 1, 2022. The total bonds outstanding related to this project, as of June 30, 2011 are $8,685,000. 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 has 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, 2011 are $651,416. 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, 2011 are $7,150,000. Annual debt service requirements to amortize the bonds are as follows: Fiscal Year Principal Interest Total 2012 1,045,214 706,411 1,751,625 2013 1,085,214 665,570 1,750,784 2014 1,130,214 625,046 1,755,260 2015 1,170,214 572,369 1,742,583 2016 1,230,984 532,440 1,763,424 2017-2029 12,189,576 2,750,490 14,940,066 Total 17,851,416 $ 5,852,327 $ 23,703,743 $ (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, 2011 63 Tax Increment Revenue Bonds – The City and County has two outstanding tax increment revenue bond issues. Tax Increment Bond, Series 1994 were issued with a final maturity date July 1, 2014 was issued. 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, 2011 of $290,000. 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, 2011 are $13,705,000. Annual debt service requirements to amortize the bonds are as follows: Fiscal Year Principal Interest Total 2012 1,215,000 625,582 1,840,582 2013 975,000 558,863 1,533,863 2014 1,025,000 514,688 1,539,688 2015 1,070,000 459,225 1,529,225 2016 1,035,000 413,663 1,448,663 2017-2029 8,675,000 1,435,612 10,110,612 Total 13,995,000 $ 4,007,633 $ 18,002,633 $ 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, 2011 are $155,000. Annual debt service requirements to amortize the bonds are as follows: (This page continued on the subsequent page) Fiscal Year Principal Interest Total 2012 50,000 5,303 55,303 2013 50,000 3,365 53,365 2014 55,000 1,183 56,183 155,000 $ 9,850 $ 164,850 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2011 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. 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 2012 181,399 $ 2013 190,296 2014 192,346 2015 82,668 2016 86,726 2017 82,074 815,508 $ Fiscal Year Principal Interest Total 2012 35,735 $ 16,660 $ 52,395 $ 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 2017-2019 121,098 9,889 130,987 320,223 $ 71,675 $ 391,899 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2011 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, 2011 were 128 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 $2,255,000 and 2008 Series Bonds with variable rates between 3.13% and 3.25% outstanding balance of $4,045,000. 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, 2010, net of unamortized discount, are $6,022,316. Annual debt service requirements to amortize the revenue bonds are as follows: Fiscal Year Principal Interest Total 2012 1,690,000 190,332 1,880,332 2013 1,740,000 130,763 1,870,763 2014 1,810,000 81,965 1,891,965 2015 1,060,000 34,450 1,094,450 Total 6,300,000 $ 437,510 $ 6,737,510 $ On January 28, 2010 the City and County of Butte-Silver Bow closed on $715,530 in American Reinvestment and Recovery Act (ARRA) Bonds issued through the Montana State Revolving Fund (SRF). The bonds were issued with bonds in the amount of $416,300 and bonds in the amount of $299,230 with an interest rate of 1.725% to fund a portion of the Big Hole Fresh Water transmission line replacement. The bonds were paid off in FY 2011and $416,300 on the bonds. was forgiven on February 1, 2011 per the terms of the agreement. On October 16, 2009 the City and County of Butte-Silver Bow closed on $750,000 in American Reinvestment and Recovery Act (ARRA) Bonds issued through the Montana State Revolving Fund (SRF). The bonds were issued with bonds in the amount of $390,700 and bonds in the amount of $359,300 with an interest rate of 1.725% to fund a portion of the Metro Waste Water Plant upgrade project. The bonds were paid off in FY 2011and $390,700 on the bonds was forgiven n December 10, 2010 per the terms of the agreement. 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 amount owed on the bonds as of June 30, 2010 was $510,000 on the bonds and $240,000 on the bonds. It is anticipated the entire amount of the bonds will be forgiven in fiscal year 2012 per the terms of the agreement. The bonds are noted as current liabilities at June 30, 2011. (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, 2011 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, 2011: Outstanding Outstanding Amounts Due Governmental Activities 6/30/2010 Additions Reductions 6/30/2011 in One Year General obligation bonds 18,811,630 $ - $ 960,214 $ 17,851,416 $ 1,045,214 $ General obligation notes 988,420 - 172,913 815,507 181,399 Tax increment 14,935,000 13,705,000 14,645,000 13,995,000 1,215,000 SID bonds 200,000 - 45,000 155,000 50,000 Capital leases 354,120 - 33,897 320,223 35,734 Compensated absences 3,067,129 2,275,640 2,082,828 3,259,941 2,145,313 Total Governmental Activities 38,356,299 $ 15,980,640 $ 17,939,852 $ 36,397,087 $ 4,672,660 $ Business-Type Activities Revenue bonds 8,752,100 $ 750,000 $ 2,452,100 $ 7,050,000 $ 2,440,000 $ Less unamortized: Refunding loss (373,798) 112,443 (261,355) Premium 64,362 (19,212) 45,150 Discount (87,827) 26,348 (61,479) Total bonds payable 8,354,837 750,000 2,571,679 6,772,316 2,440,000 Compensated absences 649,180 420,392 427,075 642,497 439,887 Landfill postclosure costs 235,108 28,149 - 263,257 6,581 Total Business-Type Activities 9,239,125 $ 1,198,541 $ 2,998,754 $ 7,678,070 $ 2,886,469 $ Component Unit Compensated absences 87,771 $ 38,469 $ 53,826 $ 72,414 $ 55,441 $ Total Component Unit 87,771 $ 38,469 $ 53,826 $ 72,414 $ 55,441 $ 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, 2011 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, 2011 was $21,291,781. 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 are required to contribute 6.9% 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, 2011, 2010 and 2009 were $1,107,247, $1,043,951and $987,609, 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, 2011 was $14,342. 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 2011. The Plan is administered by the State of Montana. The Authority contribution for the year ended June 30, 2011, 2010 and 2009 was $34,039, $37,655 and $34,021. This represents 6.80% 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, 2011 was $244. 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, 2011 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, 2011, 2010, and 2009 were, $256,209, $243,810 and $236,091 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, 2011 was $664,261. 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, 2011, 2010, and 2009 were $355,635, $328,861and $292,412, 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, 2011 was $1,042,665. 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, 2011 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, 2011, 2010, and 2009 were $85,209, $80,044 and $73,626 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, 2011, 2010, and 2009 were $20,666, $24,901, and $23,824 respectively. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2011 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: - Revolving/LT Loans 758,446 758,446 Special Improvement Districts 995,325 995,325 Weed Control 76,506 76,506 Dsitrict Courts 243,424 243,424 Economic Development 10,906,512 2,452,588 13,359,100 Transit 245,212 245,212 Comprehensive Insurance 149,467 149,467 Crime Control 124,564 124,564 Junk Vehicle 25 25 Superfund 813,421 813,421 Reclamation 1,420,439 1,420,439 Urban Revitalization 8,293,839 8,293,839 Hard Rock Mining Trust 5,139,369 5,139,369 911 Emergency Program 344,747 344,747 CTEP Grants 3,543 3,543 Law Enforcement Grants 783 783 Self funded health insurance 1,290,053 1,290,053 Code enforcement 182,525 182,525 Debt Service 2,168,637 2,168,637 Capital Projects 2,105,662 2,105,662 Public Works 748,392 748,392 Civic Center 249,959 249,959 Library/Archives 41,769 41,769 Sr Citizens 14,398 14,398 Developmentally Disabled 14,995 14,995 Fire Protection 513,524 513,524 Land Planning 79,901 79,901 Parking 3,243 3,243 Community Development 5,625,863 5,625,863 CDBG Grants 8,022 8,022 Urban Revitalization 347,638 347,638 Capital Improvements 2,993,728 2,993,728 Committed: - Assigned to: - Community Development 298,714 298,714 Highway Project 146,139 146,139 Unassigned: 4,870,939 (1,344,413) 3,526,526 Total fund balances 6,343,517 $ 10,906,512 $ 35,077,869 $ 52,327,898 $ (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, 2011 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 6,692,163 $ Intergovernmental 80 Rent 2,100 Investment earnings 24,540 Miscellaneous 75,208 6,794,091 $ 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, 2011 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 $1,290,053 at June 30, 2011. 4-B. Subsequent Events On September 27, 2011, the General Obligation Bonds Series 1999, Series 2002 and Series 2003 were called and a Series 2011General Obligation Refunding Bonds were issued in the amount of $9,505,000. The Bonds will 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. 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, 2011. 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. 2011 2010 Claims payable, beginning of year 827,727 $ 313,869 $ Claims incurred during the year 3,517,627 3,785,829 Claims paid during the year (3,724,944) (3,271,971) Claims payable, end of year 620,410 $ 827,727 $ 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, 2011 73 4-D. Construction Commitments As of June 30, 2011, the City has made the following construction commitments: Project Expended to Future Authorized June 30, 2011 Financing Metro CCTV project 206,970 $ 100,018 $ 106,952 $ TIFID waste water line construction 4,860,077 729,020 4,131,057 Anaconda road tunnel rehabilitation 1,021,980 981,778 40,202 Metro waste water treatment upgrade 918,000 881,332 36,668 Water main replacement 1,516,812 123,870 1,392,942 8,523,839 $ 2,816,018 $ 5,707,821 $ 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, 2011. 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 $9,110,836, 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. 4-F. Prior Period Adjustments As of and for the year ended June 30, 2010, the revenues and accounts receivable for the NRDP Greenway Fund were overstated by $354,911. The correction of this error requires a restatement of the June 30, 2010 fund balance and government-wide statement of activities as follows: NRDP Greenway Fund Fund balance as previously reported at June 30, 2010. 49,142 $ To correct error at June 30, 2010. (354,911) Fund balance as restated at June 30, 2010. (305,769) $ Government-wide Net Assets Net assets as previously reported at June 30, 2010. 170,925,226 $ To correct error at June 30, 2010. (354,911) Net assets as restated at June 30, 2010. 170,570,315 $ ---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 – 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. 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. Mt 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-Anaconda/Arco: 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. Resources Damages 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. 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. The bonds will be issued in two different issues. The first issue will have a sale date of July 9, 2008 in the amount of $4,500,000. 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. ---PAGE BREAK--- Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds Assets Cash and cash equivalents 12,989,106 $ 2,204,096 $ 3,618,650 $ 18,811,852 $ Investments 11,752,603 154,157 1,849,127 13,755,887 Restricted assets - investments - 158,023 - 158,023 Receivables: Accounts 2,050,042 - 23,978 2,074,020 Property taxees 815,360 192,733 - 1,008,093 Special assessments 486,011 113,206 - 599,217 Loans 4,871,583 - 14,087 4,885,670 Interfund 350,000 - - 350,000 Total Assets 33,314,705 $ 2,822,215 $ 5,505,842 $ 41,642,762 $ Liabilities and Fund Balances Liabilities Vouchers payable 1,088,091 $ - $ 171,939 $ 1,260,030 $ Accounts payable 283,201 - - 283,201 Accrued salaries and benefits 169,622 - - 169,622 Interfund payable 3,062,606 - - 3,062,606 Performance bonds payable 17,234 - - 17,234 Deferred revenue 1,377,886 305,940 88,374 1,772,200 Total Liabilities 5,998,640 305,940 260,313 6,564,893 Fund Balances Nonspendable - - - - Restricted 28,361,764 2,168,637 5,099,390 35,629,791 Committed - - - - Assigned 298,714 347,638 146,139 792,491 Unassigned (1,344,413) - - (1,344,413) Total Fund Balances 27,316,065 2,516,275 5,245,529 35,077,869 Total Liabilities and Fund Balances 33,314,705 $ 2,822,215 $ 5,505,842 $ 41,642,762 $ City and County of Butte-Silver Bow, Montana June 30, 2011 Nonmajor Governmental Funds - By Fund Type Combining Balance Sheet 83 ---PAGE BREAK--- Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds Revenues Property taxes 7,306,827 $ 3,421,048 $ - $ 10,727,875 $ Special assessments 1,383,888 - - 1,383,888 $ Intergovernmental 9,450,688 324,488 23,428 9,798,604 $ Charges for services 1,049,006 - - 1,049,006 $ Fines and forfeitures 49,834 - 69,816 119,650 $ Private grants and donations 3,435,403 - - 3,435,403 $ Investment earnings 261,784 1,073 7,732 270,589 $ Miscellaneous 735,494 646,914 38,495 1,420,903 $ Total Revenues 23,672,924 4,393,523 139,471 28,205,918 Expenditures Current: General government 3,015,097 - - 3,015,097 Public safety 4,439,847 - 52,433 4,492,280 Public works 5,420,329 - - 5,420,329 Public health 3,069,202 - - 3,069,202 Social and economic services 150,550 - - 150,550 Cultural and recreation 981,866 1,400 - 983,266 Housing and community development 3,721,296 - - 3,721,296 Capital Outlay 3,497,841 - 1,516,257 5,014,098 Debt Service: Principal 172,911 3,875,214 - 4,048,125 Interest 18,432 1,853,636 - 1,872,068 Bond issuance costs - 12,660 139,500 152,160 Advance bond refunding - 120,000 - 120,000 Total Expenditures 24,487,371 5,862,910 1,708,190 32,058,471 (Deficiency) of Revenues (Under) Expenditures (814,447) (1,469,387) (1,568,719) (3,852,553) Other Financing Sources (Uses) Insurance proceeds - - - - Issuance of tax increment bonds - 12,152,536 1,552,464 13,705,000 Payment to refunded bond escrow agent - (11,655,000) - (11,655,000) Transfers in 4,454,010 1,865,692 - 6,319,702 Transfers out (1,153,863) (3,120,768) (58,614) (4,333,245) Total Other Financing Sources (Uses) 3,300,147 (757,540) 1,493,850 4,036,457 Net Change in Fund Balances 2,485,700 (2,226,927) (74,869) 183,904 Fund Balances Beginning of Year 24,830,365 4,743,202 5,320,398 34,893,965 Fund Balances End of Year 27,316,065 $ 2,516,275 $ 5,245,529 $ 35,077,869 $ 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, 2011 84 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 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 974,948 $ 6,711 $ 3,134 $ 39,821 $ 1,043,182 $ 50,525 $ 76,351 $ - $ 292,939 $ 267,044 $ Investments - 1,969 - - - - - - - - Receivables: Taxes 480 - - - 101,884 37,932 24,161 - 68,441 31,981 Accounts - - - - 1,666 - 23,578 - 15,962 8,167 Special assessments 210,514 1,687 2,441 114,556 - - 21,524 - - - Loans - - - - - - - - - - Interfund - - - - - - - - - - Restricted assets - investments - - - - - - - - - - Total Assets 1,185,942 $ 10,367 $ 5,575 $ 154,377 $ 1,146,732 $ 88,457 $ 145,614 $ - $ 377,342 $ 307,192 $ Liabilities and Fund Balances Liabilities Vouchers payable 28,621 $ - $ - $ - $ 342,083 $ 396 $ 464 $ 1,593 $ 53,267 $ 20,431 $ Accounts payable - - - - - - - - - - Accrued salaries and benefits 2,637 - - - 18,260 4,816 5,726 3,695 12,209 4,822 Performance bonds payable - - - - - - 17,234 - - - Interfund payable - - - - - - - 50,598 - - Deferred revenue 210,994 1,687 2,441 114,556 101,884 37,933 45,684 - 68,442 31,980 Total Liabilities 242,252 1,687 2,441 114,556 462,227 43,145 69,108 55,886 133,918 57,233 Fund Balances Nonspendable Restricted 943,690 8,680 3,134 39,821 684,505 45,312 76,506 - 243,424 249,959 Committed Assigned - - - - - - - - - Unassigned - - - - - (55,886) - - Total Fund Balances 943,690 8,680 3,134 39,821 684,505 45,312 76,506 (55,886) 243,424 249,959 Total Liabilities and Fund Balances 1,185,942 $ 10,367 $ 5,575 $ 154,377 $ 1,146,732 $ 88,457 $ 145,614 $ - $ 377,342 $ 307,192 $ 85 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 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 Nonspendable Restricted Committed 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 18,575 $ 22,070 $ 13,499 $ 10,593 $ 136,713 $ 348,167 $ - $ 14,398 $ 16,185 $ - $ - - 14,342 - 2,307,826 - - - - - - - - 6,696 - 57,119 - 7,542 5,668 19,057 - 57 1,483 - - 190,742 312,605 - - - - - - - - - - - - - - - - - 117,176 - - - - - - - - - - - - - - - - - - - - - - - - - 18,575 $ 22,127 $ 29,324 $ 17,289 $ 2,561,715 $ 596,028 $ 312,605 $ 21,940 $ 21,853 $ 19,057 $ - $ 189 $ 3,500 $ - $ 43,202 $ 54,459 $ 56,494 $ - $ 86 $ - $ - - - - - - - - - - - 1,190 4,803 - - 19,239 24,475 - 1,105 - - - - - - - - - - - - - - - - 220,000 383,891 - - 316,082 - - - 6,694 76,520 57,118 - 7,542 5,667 19,056 - 1,379 8,303 6,694 119,722 350,816 464,860 7,542 6,858 335,138 18,575 20,748 21,021 10,595 2,441,993 245,212 - 14,398 14,995 - - - - - - - - - - - - - - - - (152,255) - - (316,081) 18,575 20,748 21,021 10,595 2,441,993 245,212 (152,255) 14,398 14,995 (316,081) 18,575 $ 22,127 $ 29,324 $ 17,289 $ 2,561,715 $ 596,028 $ 312,605 $ 21,940 $ 21,853 $ 19,057 $ 86 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 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 Nonspendable Restricted Committed 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 568,002 $ 82,226 $ 125,542 $ 32,007 $ 945 $ - $ 146,172 $ 8,610 $ 3,243 $ 60,023 $ - 67,736 - - - - - - - - 357,185 97,214 - - - - - - - - 4,598 - - - - - - - - - - - - - - - 58,795 2,939 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 929,785 $ 247,176 $ 125,542 $ 32,007 $ 945 $ - $ 146,172 $ 67,405 $ 6,182 $ 60,023 $ 14,647 $ 494 $ - $ - $ 450 $ - $ - $ - $ - $ - $ - - - - - - - - - - 44,430 - 978 - 470 - 793 - - - - - - - - - - - - - - - - - - 55,033 - 30,000 - - 357,184 97,215 - - - - - 58,795 2,939 - 416,261 97,709 978 - 920 55,033 793 88,795 2,939 - 513,524 149,467 124,564 32,007 25 - 145,379 - 3,243 60,023 - - - - - - - - - - - - - - - (55,033) - (21,390) - - 513,524 149,467 124,564 32,007 25 (55,033) 145,379 (21,390) 3,243 60,023 929,785 $ 247,176 $ 125,542 $ 32,007 $ 945 $ - $ 146,172 $ 67,405 $ 6,182 $ 60,023 $ 87 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 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 Nonspendable Restricted Committed 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 1,642,623 $ - $ 5,133,024 $ 8,082 $ 405,366 $ 168,282 $ 7,655 $ - $ 783 $ - $ 2,596,015 10,888 6,345 - 330 184,601 - - - 124,146 - - - - - - - - - - - 671,128 - - - - - 192,343 - - 52,030 - - - - - - - - - 3,995,961 80,565 - 55,810 - - - - - - 350,000 - - - - - - - - - - - - - - - - - - - 8,636,629 $ 762,581 $ 5,139,369 $ 63,892 $ 405,696 $ 352,883 $ 7,655 $ 192,343 $ 783 $ 124,146 $ 287,492 $ 13,620 $ - $ 60 $ - $ 6,021 $ - $ 1,579 $ - $ - $ - - - - 230,000 - 4,112 - - - 3,268 2,360 - - - 2,115 - - - - - - - - - - - - - - - 515,112 - - - - - 191,188 - - 52,030 - - - - - - - - - 342,790 531,092 - 60 230,000 8,136 4,112 192,767 - - - - 8,293,839 231,489 5,139,369 63,832 175,696 344,747 3,543 - 783 124,146 - - - - - - - - - - - - - - - - - (424) - - 8,293,839 231,489 5,139,369 63,832 175,696 344,747 3,543 (424) 783 124,146 8,636,629 $ 762,581 $ 5,139,369 $ 63,892 $ 405,696 $ 352,883 $ 7,655 $ 192,343 $ 783 $ 124,146 $ 88 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 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 Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances Arco Renovation Anaconda PIT Historic and 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 181,500 $ 25,580 $ 15,672 $ 47,894 $ - $ - $ 44,176 $ 9,238 $ 214,974 $ 7,405 $ 291 865,341 14,558 - - - - - 62,767 15,013 - - - - - - - - - - - - - - 17,982 - - - 8,768 - - - 21,525 - - - - - - - - - - - - - - - 375,877 - - - - - - - - - - - - - - - - - - - - - 181,791 $ 890,921 $ 51,755 $ 47,894 $ 17,982 $ - $ 44,176 $ 9,238 $ 662,386 $ 22,418 $ 2,700 $ 9,438 $ 4,410 $ - $ 9,218 $ - $ 2,890 $ - $ - $ - $ - - - - - - - - - - - - - - - - - 1,288 - - - - - - - - - - - - - - 350,000 - 11,486 16,241 - - - - - - 21,525 - - - - - - - 2,700 9,438 375,935 - 20,704 16,241 2,890 1,288 - - 179,091 881,483 - 47,894 - - 41,286 7,950 375,877 22,418 - - - - - - - - 286,509 - - - (324,180) - (2,722) (16,241) - - - - 179,091 881,483 (324,180) 47,894 (2,722) (16,241) 41,286 7,950 662,386 22,418 181,791 $ 890,921 $ 51,755 $ 47,894 $ 17,982 $ - $ 44,176 $ 9,238 $ 662,386 $ 22,418 $ 89 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2011 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 Nonspendable Restricted Committed Assigned Unassigned Total Fund Balances Total Liabilities and Fund Balances East Butte Total Superfund NRDP RRA ARCO Superfund Nonmajor Residential Greenway Revolving Redevelopment Storm Water Getting Special Revenue Metals Project Loan Trust System Things Done RTP Grants Funds 9,155 $ - $ 6,709 $ - $ 699,363 $ - $ - $ 12,989,106 $ - - 5,496 5,474,939 - - - 11,752,603 - - - - - - - - 815,360 - 557,473 - - - 43,490 - 2,050,042 - - - - - - - 486,011 - - 246,194 - - - - 4,871,583 - - - - - - - 350,000 - - - - - - - - 9,155 $ 557,473 $ 258,399 $ 5,474,939 $ 699,363 $ 43,490 $ - $ 33,314,705 $ 15,927 $ 45,368 $ - $ - $ 49,344 $ 19,648 $ - $ 1,088,091 $ - - - - 49,089 - - 283,201 5,771 630 - - 4,542 - - 169,622 - - - - - - - 17,234 - 899,133 - - - 23,842 - 3,062,606 - - - - - - - 1,377,886 21,698 945,131 - - 102,975 43,490 - 5,998,640 - - - 246,194 5,474,939 596,388 - - 28,361,764 - - - 12,205 - - - - 298,714 (12,543) (387,658) - - - - - (1,344,413) (12,543) (387,658) 258,399 5,474,939 596,388 - - 27,316,065 9,155 $ 557,473 $ 258,399 $ 5,474,939 $ 699,363 $ 43,490 $ - $ 33,314,705 $ 90 ---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 20,2011 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 10,662 $ - $ - $ - $ 1,072,826 $ 330,404 $ 224,413 $ - $ 612,711 $ 223,779 $ Special assessments 1,215,365 12,861 233 53,547 - - - - - - Intergovernmental 18,969 - - - 1,321,063 43,431 27,334 95 169,954 38,190 Charges for services - - 9,183 - 8,027 - 94,009 67,231 12,844 346,386 Fines and forfeitures - - - - - - - 49,834 - - Private grants and donations - - - - - - - - - - Investment earnings - - - - - - - - - - Miscellaneous - 6 - - 82,930 11 7 - 18 1,626 Total Revenues 1,244,996 12,867 9,416 53,547 2,484,846 373,846 345,763 117,160 795,527 609,981 Expenditures Current: General government 368,975 - - - - - - - 725,120 - Public safety - - - - - - - - 99,842 - Public works 800,032 9,858 9,850 - 2,155,199 368,435 306,976 158,323 - - Public health 13,100 - - - - - - - - - Social and economic services - - - - - - - - - - Cultural and recreation - - - - - - - - - 686,576 Housing and community development - - - - - - - - - - Capital Outlay 7,187 - - - 439,558 - 6,095 - - 5,995 Debt Service: - Principal - - - - 68,248 - - - - - Interest - - - - 10,299 - - - - - Total Expenditures 1,189,294 9,858 9,850 - 2,673,304 368,435 313,071 158,323 824,962 692,571 Excess (Deficiency) of Revenues Over (Under) Expenditures 55,702 3,009 (434) 53,547 (188,458) 5,411 32,692 (41,163) (29,435) (82,590) Other Financing Sources (Uses) Insurance proceeds - - - - - - - - - - Transfers in 101,849 - - - 45,000 - - 14,500 - - Transfers out (86,849) - - (49,715) - - - - (22,500) - Total Other Financing Sources (Uses) 15,000 - - (49,715) 45,000 - - 14,500 (22,500) - Net Change in Fund Balances 70,702 3,009 (434) 3,832 (143,458) 5,411 32,692 (26,663) (51,935) (82,590) Fund Balances Beginning of Year 872,988 5,671 3,568 35,989 827,963 39,901 43,814 (29,223) 295,359 332,549 Fund Balances End of Year 943,690 $ 8,680 $ 3,134 $ 39,821 $ 684,505 $ 45,312 $ 76,506 $ (55,886) $ 243,424 $ 249,959 $ 91 ---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 20,2011 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) Insurance proceeds 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 - $ - $ - $ 56,214 $ - $ 548,950 $ - $ 65,226 $ 50,112 $ 120,504 $ - - - 417 - 2,084 - - - 2,165 - 10,573 794 9,185 - 1,273,199 1,803,906 11,418 24,274 18,339 - 4,721 - 111,419 378,252 - - - - - - - - - - - - - 4,102 18,676 - - - 23,609 - - - - - 52 - 16,422 - - - - - 7,827 - - - - 4,086 155 - - 3 7,827 14,675 24,243 65,816 16,422 1,939,738 2,205,922 76,644 74,386 141,011 - - - - - - - - - 330,480 - - - - - - - - - - - - - - - 1,106,559 - - - - - - - - - - 2,414,118 - - - - - - - - - - 76,044 74,506 - 781 98,931 193,568 - - - - - - - - - - 67,995 190,338 - - - - - - - - - - 654,842 - - - - - - - - - - - - - - - - - - - - - - - - 781 98,931 193,568 67,995 190,338 1,761,401 2,414,118 76,044 74,506 330,480 7,046 (84,256) (169,325) (2,179) (173,916) 178,337 (208,196) 600 (120) (189,469) - - - - - - - - - - - 47,033 159,250 - - - - - - - - - - - - - - - - - - 47,033 159,250 - - - - - - - 7,046 (37,223) (10,075) (2,179) (173,916) 178,337 (208,196) 600 (120) (189,469) 11,529 57,971 31,096 12,774 2,615,909 66,875 55,941 13,798 15,115 (126,612) 18,575 $ 20,748 $ 21,021 $ 10,595 $ 2,441,993 $ 245,212 $ (152,255) $ 14,398 $ 14,995 $ (316,081) $ 92 ---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 20,2011 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) Insurance proceeds 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 3,106,959 $ 843,165 $ - $ - $ - $ - $ - $ - $ - $ - $ 14,447 - - - - - - 22,994 16,152 - 1,036,074 38,467 55,315 14,856 44,373 - 40 - - - 5,316 - 4,562 - - - - - - - - - - - - - - - - - - - - - - - 62,101 - - - - 234 - - - - - - - - 15,723 - - - - - - - - - 4,178,519 881,866 59,877 14,856 44,373 - 62,141 22,994 16,152 - - 870,490 - - - 13 54,330 - - - 3,935,364 - 68,798 - - - - - - - - - - - 44,348 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 24,599 - - - - - - - - - 104,663 - - - - - - - - - 8,133 - - - - - - - - - 4,072,759 870,490 68,798 - 44,348 13 54,330 - - - 105,760 11,376 (8,921) 14,856 25 (13) 7,811 22,994 16,152 - - - - - - - - - - - 11,500 - 8,750 - - - - - - - (11,500) - - - - - - - (14,500) - - - 8,750 - - - - - (14,500) - 105,760 11,376 (171) 14,856 25 (13) 7,811 22,994 1,652 - 407,764 138,091 124,735 17,151 - (55,020) 137,568 (44,384) 1,591 60,023 513,524 $ 149,467 $ 124,564 $ 32,007 $ 25 $ (55,033) $ 145,379 $ (21,390) $ 3,243 $ 60,023 $ 93 ---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 20,2011 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) Insurance proceeds 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 614 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 43,403 - - - - - - - - - - 103 1,141,966 722,137 - - 272,204 - 348,673 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 190,350 581 1,035 - 4,090 563 - - - 379 33 577,375 450 - 5,198 - 29 - - - - - 811,845 1,142,997 723,172 5,198 4,090 272,796 - 348,673 - 379 33 - - - - - - 3,616 292,150 - - 5,943 - - - - - 285,829 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,201,428 1,230,111 - 1,042 - - - - - - - - - - - - 7,093 - 40,403 - - - - - - - - - - - - - - - - - - - - - - - - - 2,201,428 1,230,111 - 1,042 - 292,922 3,616 332,553 - - 5,943 (1,389,583) (87,114) 723,172 4,156 4,090 (20,126) (3,616) 16,120 - 379 (5,910) - - - - - - - - - - - 3,950,768 85,360 - - - - - - - - - (908,799) - - - - - - - - - - 3,041,969 85,360 - - - - - - - - - 1,652,386 (1,754) 723,172 4,156 4,090 (20,126) (3,616) 16,120 - 379 (5,910) 6,641,453 233,243 4,416,197 59,676 171,606 364,873 7,159 (16,544) 783 123,767 185,001 8,293,839 $ 231,489 $ 5,139,369 $ 63,832 $ 175,696 $ 344,747 $ 3,543 $ (424) $ 783 $ 124,146 $ 179,091 $ 94 ---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 20,2011 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) Insurance proceeds 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 - $ 40,288 $ - $ - $ - $ - $ - $ - $ - $ - $ - 220 - - - - - - - - - - - 78,719 - - 63 - - 275 - - 6,615 441 - - - - - - - - - - - - - - - - - - - - - - 117,361 - - 673,291 2,640 30 - - - - - 20,997 46 - - 31,306 - - - - - - - - 2,640 71,844 6,615 79,160 - - 117,424 20,997 46 673,566 79,513 - - - - - 111,444 - - - - - - 50,014 - - - - - - - - - - - - - - - - - - - - - 13,450 - - - 628,534 - - - - - - - - - - - - - - - - - - - - - 30,382 - - - - - - - - - - - 32,360 - - - - - - - - - - - - - - - - - - - - - - 79,513 30,382 - 82,374 - 13,450 111,444 - - 628,534 (76,873) 41,462 6,615 (3,214) - (13,450) 5,980 20,997 46 45,032 - - - - - - - - - - - 30,000 - - - - - - - - - (30,000) - - - - - - - - - - - - - - - - - - (76,873) 41,462 6,615 (3,214) - (13,450) 5,980 20,997 46 45,032 958,356 (365,642) 41,279 492 (16,241) 54,736 1,970 641,389 22,372 (57,575) 881,483 $ (324,180) $ 47,894 $ (2,722) $ (16,241) $ 41,286 $ 7,950 $ 662,386 $ 22,418 $ (12,543) $ 95 ---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 20,2011 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) Insurance proceeds 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 Nonmajor Greenway Revolving Redevelopment Storm Water Getting Special Revenue Project Loan Trust System Things Done RTP Grants Funds - $ - $ - $ - $ - $ - $ 7,306,827 $ - - - - - - 1,383,888 883,079 - - 130 43,490 - 9,450,688 - - - - - - 1,049,006 - - - - - - 49,834 - - - 2,536,263 - - 3,435,403 - 7,634 16,698 - - - 261,784 - - - - - 8,744 735,494 883,079 7,634 16,698 2,536,393 43,490 8,744 23,672,924 173,023 - - - - - 3,015,097 - - - - - - 4,439,847 - - - 460,749 - - 5,420,329 - - - - - - 3,069,202 - - - - - - 150,550 - - - - 2,010 - 981,866 - - - - - - 3,721,296 791,945 - - 1,446,284 41,480 - 3,497,841 - - - - - - 172,911 - - - - - - 18,432 964,968 - - 1,907,033 43,490 - 24,487,371 (81,889) 7,634 16,698 629,360 - 8,744 (814,447) - - - - - - - - - - - - - 4,454,010 - (30,000) - - - - (1,153,863) - (30,000) - - - - 3,300,147 (81,889) (22,366) 16,698 629,360 - 8,744 2,485,700 (305,769) 280,765 5,458,241 (32,972) - (8,744) 24,830,365 (387,658) $ 258,399 $ 5,474,939 $ 596,388 $ - $ - $ 27,316,065 $ 96 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property - $ - $ 10,662 $ 10,662 $ Special assessments 1,064,414 1,064,414 1,215,365 150,951 Intergovernmental 5,633 5,633 18,969 13,336 Total Revenues 1,070,047 1,070,047 1,244,996 174,949 Expenditures Current: General government 443,147 385,959 368,975 16,984 Public works 1,102,214 1,102,214 800,032 302,182 Public health 13,500 13,500 13,100 400 Capital Outlay - 7,188 7,187 1 Total Expenditures 1,558,861 1,508,861 1,189,294 319,567 Excess (Deficiency) of Revenues Over (Under) Expenditures (488,814) (438,814) 55,702 494,516 Other Financing Sources (Uses) Transfers in 101,849 101,849 101,849 - Transfers out (86,849) (86,849) (86,849) - Total Other Financing Sources (Uses) 15,000 15,000 15,000 - Net Change in Fund Balances $ (473,814) $ (423,814) 70,702 $ 494,516 Fund Balances Beginning of Year 872,988 Fund Balances End of Year 943,690 $ For the Fiscal Year Ended June 30, 2011 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 - $ - $ 6 $ 6 $ Special assessmenets 13,000 13,000 12,861 (139) Total Revenues 13,000 13,000 12,867 (133) Expenditures Current: Public works 13,000 13,000 9,858 3,142 Excess of Revenues Over Expenditures - $ - $ 3,009 3,009 $ Fund Balances Beginning of Year 5,671 Fund Balances End of Year 8,680 $ For the Fiscal Year Ended June 30, 2011 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 $ 9,183 $ (817) $ Special assessmenets - - 233 233 Total Revenues 10,000 10,000 9,416 (584) Expenditures Current: Public works 10,000 10,000 9,850 150 (Deficiency) of Revenues (Under) Expenditures - $ - $ (434) (434) $ Fund Balances Beginning of Year 3,568 Fund Balances End of Year 3,134 $ For the Fiscal Year Ended June 30, 2011 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 $ 53,547 $ 8,547 $ Other Financing (Uses) Transfers out - Blacktail Loop debt service fund (45,000) (45,000) (49,715) - (Deficiency) of Revenues (Under) Expenditures 90,000 $ 90,000 $ 3,832 $ $ 8,547 Fund Balances Beginning of Year 35,989 Fund Balances End of Year 39,821 $ For the Fiscal Year Ended June 30, 2011 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 991,656 $ 991,656 $ 952,190 $ (39,466) $ Personal property - - 14,109 14,109 Motor vehicle 112,000 112,000 106,527 (5,473) Intergovernmental 1,299,882 1,299,882 1,321,063 21,181 Charges for Services - - 8,027 8,027 Miscellaneous - 25,026 82,930 57,904 Total Revenues 2,403,538 2,428,564 2,484,846 56,282 Expenditures Current: Public works 2,288,305 2,263,331 2,155,199 108,132 Capital Outlay 453,200 503,200 439,558 63,642 Debt Service Principal 68,248 68,248 68,248 - Interest 10,300 10,300 10,299 1 Total Expenditures 2,820,053 2,845,079 2,673,304 171,775 Excess (Deficiency) of Revenues Over (Under) Expenditures (416,515) (416,515) (188,458) 228,057 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 $ (371,515) $ (371,515) (143,458) $ 228,057 Fund Balances Beginning of Year 827,963 Fund Balances End of Year 684,505 $ For the Fiscal Year Ended June 30, 2011 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 328,491 $ 328,491 $ 323,700 $ (4,791) $ Personal property - - 6,704 6,704 Intergovernmental 43,726 43,726 43,431 (295) Miscellaneous 11 Total Revenues 372,217 372,217 373,846 1,618 Expenditures Current: Public works 370,322 370,322 368,435 1,887 (Deficiency) of Revenues (Under) Expenditures 1,895 $ 1,895 $ 5,411 3,505 $ Fund Balances Beginning of Year 39,901 Fund Balances End of Year 45,312 $ For the Fiscal Year Ended June 30, 2011 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 227,094 $ 227,094 $ 219,903 $ (7,191) $ Personal property - - 4,510 4,510 Intergovernmental 11,948 11,948 27,334 15,386 Miscellaneous - - 7 7 Charges for services 98,349 98,346 94,009 (4,337) Total Revenues 337,391 337,388 345,763 8,375 Expenditures Current: Public works 325,307 329,674 306,976 22,698 Capital Outlay 25,245 20,388 6,095 14,293 Total Expenditures 350,552 350,062 313,071 36,991 Excess of Revenues Over Expenditures (13,161) $ (12,674) $ 32,692 45,366 $ Fund Balances Beginning of Year 43,814 Fund Balances End of Year 76,506 $ For the Fiscal Year Ended June 30, 2011 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 95 $ 95 $ 95 $ - $ Charges for services 60,000 60,000 67,231 7,231 Fines and forfeitures 72,000 72,000 49,834 (22,166) Total Revenues 132,095 132,095 117,160 (14,935) Expenditures Current: Public works 167,626 167,626 158,323 9,303 Excess (Deficiency) of Revenues Over (Under) Expenditures (35,531) (35,531) (41,163) (5,632) Other Financing Sources Transfers in: Uptown parking fund 14,500 14,500 14,500 - Total Other Financing Sources 14,500 14,500 14,500 - Net Change in Fund Balances $ (21,031) $ (21,031) (26,663) $ (5,632) Fund Balances Beginning of Year (29,223) Fund Balances End of Year (55,886) $ For the Fiscal Year Ended June 30, 2011 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 562,993 $ 562,993 $ 558,822 $ (4,171) $ Personal property - - 14,251 14,251 Motor vehicle 40,000 40,000 39,638 (362) Intergovernmental 99,661 159,661 169,954 10,293 Miscellaneous - - 18 18 Charges for services 11,000 11,000 12,844 1,844 Total Revenues 713,654 773,654 795,527 21,873 Expenditures Current: General government 745,348 724,548 725,120 (572) Public safety 164,700 159,700 99,842 59,858 Total Expenditures 910,048 884,248 824,962 59,286 Excess (Deficiency) of Revenues Over (Under) Expenditures (196,394) (110,594) (29,435) 81,159 Other Financing (Uses) Transfers out: General fund - - (22,500) 22,500 Net Change in Fund Balances (51,935) Fund Balances Beginning of Year 295,359 Fund Balances End of Year 243,424 $ For the Fiscal Year Ended June 30, 2011 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 189,972 $ 189,972 $ 215,131 $ 25,159 $ Personal property - - 8,648 8,648 Intergovernmental 38,563 38,563 38,190 (373) Charges for services 267,000 267,000 337,746 70,746 Rent 10,000 10,000 8,640 (1,360) Miscellaneous - - 1,626 1,626 Total Revenues 505,535 505,535 609,981 104,446 Expenditures Current: Culture and recreation 745,144 745,143 686,576 58,567 Capital Outlay 6,000 6,000 5,995 5 Total Expenditures 751,144 751,143 692,571 58,572 Excess (Deficiency) of Revenues Over (Under) Expenditures (245,609) $ (245,608) $ (82,590) 163,018 $ Fund Balances Beginning of Year 332,549 Fund Balances End of Year 249,959 $ For the Fiscal Year Ended June 30, 2011 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 - $ - $ 7,827 $ 7,827 $ Expenditures Current: Culture and recreation 11,529 11,529 781 10,748 Excess (Deficiency) of Revenues Over (Under) Expenditures (11,529) $ (11,529) $ 7,046 18,575 $ Fund Balances Beginning of Year 11,529 Fund Balances End of Year 18,575 $ For the Fiscal Year Ended June 30, 2011 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 12,066 $ 12,066 $ 10,573 $ (1,493) $ Private grants and donations - - 4,102 4,102 Total Revenues 12,066 12,066 14,675 2,609 Expenditures Current: Culture and recreation 106,166 106,966 98,931 8,035 Excess (Deficiency) of Revenues Over (Under) Expenditures (94,100) (94,900) (84,256) 10,644 Other Financing Sources Transfers in: General fund 47,033 47,033 47,033 - Net Change in Fund Balances $ (47,067) $ (47,867) (37,223) $ 10,644 Fund Balances Beginning of Year 57,971 Fund Balances End of Year 20,748 $ For the Fiscal Year Ended June 30, 2011 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 149 $ 149 $ 794 $ 645 $ Charges for services 3,000 3,000 4,721 1,721 Private grants and donations 48,510 48,510 18,676 (29,834) Investment earnings 250 250 52 (198) Total Revenues 51,909 51,909 24,243 (27,666) Expenditures Current: Culture and recreation 231,951 231,951 193,568 38,383 Capital Outlay - - - - Total Expenditures 231,951 231,951 193,568 38,383 Excess (Deficiency) of Revenues Over (Under) Expenditures (180,042) (180,042) (169,325) 10,717 Other Financing Sources Transfers in: Urban revitalization agency fund 15,000 15,000 15,000 - General fund 144,250 144,250 144,250 - Total Other Financing Sources 159,250 159,250 159,250 - Net Change in Fund Balances $ (20,792) $ (20,792) (10,075) $ 10,717 Fund Balances Beginning of Year 31,096 Fund Balances End of Year 21,021 $ For the Fiscal Year Ended June 30, 2011 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 55,978 $ 55,978 $ 54,959 $ (1,019) $ Personal property - - 1,255 1,255 Special assessments - - 417 417 Intergovernmental 9,247 9,247 9,185 (62) Total Revenues 65,225 65,225 65,816 591 Expenditures Current: Housing and community development 68,000 68,000 67,995 5 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,775) $ (2,775) $ (2,179) 596 $ Fund Balances Beginning of Year 12,774 Fund Balances End of Year 10,595 $ For the Fiscal Year Ended June 30, 2011 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 50,000 $ 50,000 $ 16,422 $ (33,578) $ Expenditures Current: Housing and community development 850,000 850,000 190,338 659,662 Excess of Revenues Over Expenditures (800,000) $ (800,000) $ (173,916) 626,084 $ Fund Balances Beginning of Year 2,615,909 Fund Balances End of Year 2,441,993 $ For the Fiscal Year Ended June 30, 2011 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 562,984 $ 562,984 $ 541,273 $ (21,711) $ Personal property - - 7,677 7,677 Special assessments - - 2,084 2,084 Intergovernmental 1,110,272 1,134,272 1,273,199 138,927 Charges for services 101,000 101,000 99,419 (1,581) Rent 12,000 12,000 12,000 - Miscellaneous - - 4,086 4,086 Total Revenues 1,786,256 1,810,256 1,939,738 129,482 Expenditures Current: Public works 1,195,966 1,195,966 1,106,559 89,407 Capital Outlay 680,281 704,281 654,842 49,439 Debt Service Principal 40,000 40,000 - 40,000 Total Expenditures 1,916,247 1,940,247 1,761,401 178,846 Excess (Deficiency) of Revenues Over (Under) Expenditures $ (129,991) $ (129,991) 178,337 $ 308,328 Fund Balances Beginning of Year 66,875 Fund Balances End of Year 245,212 $ For the Fiscal Year Ended June 30, 2011 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 2,031,152 $ 2,058,908 $ 1,803,906 $ (255,002) $ Charges for services 397,500 397,500 378,252 (19,248) Miscellaneous - - 155 155 Private grants and donations 23,000 23,000 23,609 609 Total Revenues 2,451,652 2,479,408 2,205,922 (273,486) Expenditures Current: Public health 2,879,999 2,907,755 2,414,118 493,637 Capital Outlay - - - - Total Expenditures 2,879,999 2,907,755 2,414,118 493,637 (Deficiency) of Revenues (Under) Expenditures (428,347) $ (428,347) $ (208,196) (767,123) $ Fund Balances Beginning of Year 55,941 Fund Balances End of Year (152,255) $ For the Fiscal Year Ended June 30, 2011 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 64,762 $ 64,762 $ 64,036 $ (726) $ Personal property - - 1,190 1,190 Intergovernmental 11,494 11,494 11,418 (76) Total Revenues 76,256 76,256 76,644 388 Expenditures Current: Social and economic services 76,044 76,044 76,044 - (Deficiency) of Revenues (Under) Expenditures 212 $ 212 $ 600 388 $ Fund Balances Beginning of Year 13,798 Fund Balances End of Year 14,398 $ For the Fiscal Year Ended June 30, 2011 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 49,869 $ 49,869 $ 49,109 $ (760) $ Personal property - - 1,003 1,003 Intergovernmental 24,301 24,301 24,274 (27) Total Revenues 74,170 74,170 74,386 216 Expenditures Current: Social and economic services 75,640 75,640 74,506 1,134 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,470) $ (1,470) $ (120) 1,350 $ Fund Balances Beginning of Year 15,115 Fund Balances End of Year 14,995 $ For the Fiscal Year Ended June 30, 2011 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 108,147 $ 108,147 $ 116,486 $ 8,339 $ Personal property - - 4,018 4,018 Special assessments - - 2,165 2,165 Intergovernmental 18,464 18,464 18,339 (125) Miscellaneous - - 3 3 Total Revenues 126,611 126,611 141,011 14,400 Expenditures Current: General government - - 330,480 (330,480) Excess (Deficiency) of Revenues Over (Under) Expenditures 126,611 $ 126,611 $ (189,469) (316,080) $ Fund Balances Beginning of Year (126,612) Fund Balances End of Year (316,081) $ For the Fiscal Year Ended June 30, 2011 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 3,498,308 $ 3,498,308 $ 3,043,921 $ (454,387) $ Personal property - - 63,038 63,038 Special assessments - - 14,447 14,447 Intergovernmental 1,026,554 1,026,554 1,036,074 9,520 Charges for Services - - 5,316 5,316 Miscellaneous - - 15,723 15,723 Total Revenues 4,524,862 4,524,862 4,178,519 (346,343) Expenditures Current: Public safety 4,075,948 4,051,348 3,935,364 115,984 Capital Outlay - 24,600 24,599 1 Debt Service: Principal 104,664 104,664 104,663 1 Interest 8,134 8,134 8,133 1 Total Expenditures 4,188,746 4,188,746 4,072,759 115,987 (Deficiency) of Revenues (Under) Expenditures 336,116 336,116 105,760 (230,356) Other Financing Sources Transfers In 11,500 11,500 11,500 Transfers Out (11,500) (11,500) (11,500) - Net Change in Fund Balances $ 336,116 $ 336,116 105,760 $ (230,356) Fund Balances Beginning of Year 407,764 Fund Balances End of Year 513,524 $ For the Fiscal Year Ended June 30, 2011 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 844,147 $ 844,147 $ 822,556 $ (21,591) $ Personal property - - 20,609 20,609 Intergovernmental 38,731 38,731 38,467 (264) Investment earnings - - 234 234 Total Revenues 882,878 882,878 881,866 (1,012) Expenditures Current: General government 888,968 888,968 870,490 18,478 Excess (Deficiency) of Revenues Over (Under) Expenditures (6,090) $ (6,090) $ 11,376 17,466 $ Fund Balances Beginning of Year 138,091 Fund Balances End of Year 149,467 $ For the Fiscal Year Ended June 30, 2011 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 31,948 $ 31,948 $ 55,315 $ 23,367 $ Charges for services 25,000 25,000 4,562 (20,438) Total Revenues 56,948 56,948 59,877 2,929 Expenditures Current: Public safety 75,849 75,849 68,798 7,051 Excess (Deficiency) of Revenues Over (Under) Expenditures (18,901) (18,901) (8,921) 9,980 Other Financing Sources Transfers in - General Fund 8,750 8,750 8,750 - Net Change in Fund Balances $ (10,151) $ (10,151) (171) $ 9,980 Fund Balances Beginning of Year 124,735 Fund Balances End of Year 124,564 $ For the Fiscal Year Ended June 30, 2011 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 $ Fund Balances Beginning of Year 17,151 Fund Balances End of Year 32,007 $ For the Fiscal Year Ended June 30, 2011 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 44,373 $ 44,373 $ 44,373 $ - $ Expenditures Current: Public works 44,348 44,348 44,348 - Excess (Deficiency) of Revenues Over (Under) Expenditures 25 $ 25 $ 25 - $ Fund Balances Beginning of Year - Fund Balances End of Year 25 $ For the Fiscal Year Ended June 30, 2011 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 255,522 $ 255,522 $ - $ (255,522) $ Expenditures Current: General government 300 300 13 287 Capital Outlay 255,222 255,222 - 255,222 Total Expenditures 255,522 255,522 13 255,509 (Deficiency) of Revenues (Under) Expenditures - $ - $ (13) (13) $ Fund Balances Beginning of Year (55,020) Fund Balances End of Year (55,033) $ For the Fiscal Year Ended June 30, 2011 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 59,534 59,534 62,101 2,567 Total Revenues 59,574 59,574 62,141 2,567 Expenditures Current: General government 62,422 62,422 54,330 8,092 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,848) $ (2,848) $ 7,811 10,659 $ Fund Balances Beginning of Year 137,568 Fund Balances End of Year 145,379 $ For the Fiscal Year Ended June 30, 2011 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 $ 22,994 $ (2,506) $ Expenditures Current: Public works 50,000 50,000 - 50,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (24,500) $ (24,500) $ 22,994 47,494 $ Fund Balances Beginning of Year (44,384) Fund Balances End of Year (21,390) $ For the Fiscal Year Ended June 30, 2011 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 14,500 $ 14,500 $ 16,152 $ 1,652 $ Other Financing (Uses) Transfers out - parking commission fund (14,500) (14,500) (14,500) - Net Change in Fund Balances $ - $ - 1,652 $ 1,652 Fund Balances Beginning of Year 1,591 Fund Balances End of Year 3,243 $ For the Fiscal Year Ended June 30, 2011 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 Real Property 250 $ 250 $ 614 $ 364 $ Special assessments 25,000 25,000 43,403 18,403 Intergovernmental 103 103 103 - Investment earnings 156,500 156,500 190,350 33,850 Miscellaneous 500 500 577,375 576,875 Total Revenues 182,353 182,353 811,845 629,492 Expenditures Current: Housing and community development 5,674,932 5,674,932 2,201,428 3,473,504 Excess (Deficiency) of Revenues Over (Under) Expenditures (5,492,579) (5,492,579) (1,389,583) 4,102,996 Other Financing Sources (Uses) Transfers in: Tax increment bond fund 3,950,768 3,950,768 3,950,768 - RRA fund - - - - Transfers out: Road fund (45,000) (45,000) (45,000) - General fund (48,799) (48,799) (48,799) - Public archives fund (15,000) (15,000) (15,000) - East Butte RRA (800,000) (800,000) (800,000) - Total Other Financing Sources (Uses) 3,041,969 3,041,969 3,041,969 - Net Change in Fund Balances $ (2,450,610) $ (2,450,610) 1,652,386 $ 4,102,996 Fund Balances Beginning of Year 6,641,453 Fund Balances End of Year 8,293,839 $ For the Fiscal Year Ended June 30, 2011 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 126 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 950,065 $ 1,187,065 $ 1,141,966 $ (45,099) $ Rent - - 450 450 Investment earnings 700 700 581 (119) Total Revenues 950,765 1,187,765 1,142,997 (44,768) Expenditures Current: Housing and community development 1,492,975 1,729,975 1,230,111 499,864 Excess (Deficiency) of Revenues Over (Under) Expenditures (542,210) (542,210) (87,114) 455,096 Other Financing Sources: Transfers in: Community development block grant fund 85,360 85,360 85,360 - General fund - - - - Total Other Financing Sources 85,360 85,360 85,360 - Net Change in Fund Balances $ (456,850) $ (456,850) (1,754) $ 455,096 Fund Balances Beginning of Year 233,243 Fund Balances End of Year 231,489 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Community 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 600,000 $ 600,000 $ 722,137 $ 122,137 $ Investment earnings 1,500 1,500 1,035 (465) Total Revenues 601,500 $ 601,500 $ 723,172 121,672 $ Fund Balances Beginning of Year 4,416,197 Fund Balances End of Year 5,139,369 $ For the Fiscal Year Ended June 30, 2011 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 128 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings - $ - $ - $ - $ Miscellaneous - - 5,198 5,198 Total Revenues - - 5,198 5,198 Expenditures Current: Housing and community development 3,944 3,944 1,042 2,902 Excess (Deficiency) of Revenues Over (Under) Expenditures (3,944) (3,944) 4,156 (8,100) Other Financing (Uses) Transfers out - community development fund - - - - Net Change in Fund Balances $ (3,944) $ (3,944) 4,156 $ (8,100) Fund Balances Beginning of Year 59,676 Fund Balances End of Year 63,832 $ For the Fiscal Year Ended June 30, 2011 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 129 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 4,000 $ 4,000 $ 4,090 $ 90 $ Fund Balances Beginning of Year 171,606 Fund Balances End of Year 175,696 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana MT Pole Institutional Control Schedule of Revenues and Changes in Fund Balances - Budget and Actual 130 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 294,671 $ 294,671 $ 272,204 $ (22,467) $ Investment earnings 500 500 563 63 Miscellaneous - - 29 29 Total Revenues 295,171 295,171 272,796 (22,375) Expenditures Current: Public safety 300,117 350,117 285,829 64,288 Capital Outlay 105,000 55,000 7,093 47,907 Total Expenditures 405,117 405,117 292,922 112,195 Excess (Deficiency) of Revenues Over (Under) Expenditures (109,946) $ (109,946) $ (20,126) 89,820 $ Fund Balances Beginning of Year 364,873 Fund Balances End of Year 344,747 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana 911 Emergency Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 131 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 1,168,418 $ 1,168,418 $ - $ (1,168,418) $ Expenditures Current: General government 683,057 683,057 3,616 679,441 Capital Outlay 750,000 750,000 - 750,000 Total Expenditures 1,433,057 1,433,057 3,616 1,429,441 Excess (Deficiency) of Revenues Over (Under) Expenditures (264,639) (264,639) (3,616) 261,023 Other Financing Sources Transfers in: Arco fund 134,200 134,200 - (134,200) Net Change in Fund Balances $ (130,439) $ (130,439) (3,616) $ 126,823 Fund Balances Beginning of Year 7,159 Fund Balances End of Year 3,543 $ For the Fiscal Year Ended June 30, 2011 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 132 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 1,151,151 $ 1,151,151 $ 348,673 $ (802,478) $ Private grants and donations 45,900 45,900 - (45,900) Total Revenues 1,197,051 1,197,051 348,673 (848,378) Expenditures Current: General government 472,651 472,651 292,150 180,501 Capital Outlay 177,827 177,827 40,403 137,424 Total Expenditures 650,478 650,478 332,553 317,925 Excess (Deficiency) of Revenues Over (Under) Expenditures 546,573 $ 546,573 $ 16,120 (530,453) $ Fund Balances Beginning of Year (16,544) Fund Balances End of Year (424) $ For the Fiscal Year Ended June 30, 2011 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 133 ---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, 2011 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 134 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 500 $ 500 $ 379 $ (121) $ Other Financing Uses Clark Tailings Alumni - $ - $ - $ - $ Excess (Deficiency) of Revenues Over (Under) Expenditures - $ - $ 379 $ - $ Fund Balances Beginning of Year 123,767 Fund Balances End of Year 124,146 $ For the Fiscal Year Ended June 30, 2011 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 135 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings - $ - $ 33 $ 33 $ Expenditures Current: General government 15,600 15,600 5,943 9,657 Excess (Deficiency) of Revenues Over (Under) Expenditures (15,600) $ (15,600) $ (5,910) 9,690 $ Fund Balances Beginning of Year 185,001 Fund Balances End of Year 179,091 $ For the Fiscal Year Ended June 30, 2011 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 136 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 3,000 $ 3,000 $ 2,640 $ (360) $ Intergovernmental 13 13 - (13) Total Revenues 3,013 $ 3,013 $ 2,640 $ (373) $ Expenditures Current: General government 240,065 240,065 86,283 153,782 Excess (Deficiency) of Revenues Over (Under) Expenditures (237,052) (237,065) (83,643) 153,422 Other Financing Sources Transfers out: CTEP fund - - - - Net Change in Fund Balances $ (237,052) $ (237,065) (83,643) $ 153,422 Fund Balances Beginning of Year 958,356 Fund Balances End of Year 874,713 $ For the Fiscal Year Ended June 30, 2011 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 137 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 46,677 $ 46,677 $ 39,028 $ (7,649) $ Personal property - - 1,260 1,260 Special assessments - - 220 220 Investment earnings 50 50 30 (20) Miscellaneous 1,306 1,306 31,306 30,000 Total Revenues 48,033 48,033 71,844 23,811 Expenditures Current: Housing and community development 74,609 74,609 30,382 44,227 Excess (Deficiency) of Revenues Over (Under) Expenditures (26,576) (26,576) 41,462 68,038 Other Financing Sources (Uses) Transfer from revolving loan fund 42,209 42,209 30,000 (12,209) Transfer to URA (30,000) (30,000) (30,000) - Total Other Financing Sources (Uses) 12,209 12,209 - (12,209) Net Change in Fund Balances $ (14,367) $ (14,367) 41,462 $ 55,829 Fund Balances Beginning of Year (365,642) Fund Balances End of Year (324,180) $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana East Butte RRA 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 Charges for services 6,850 $ 6,850 $ 6,615 $ (235) $ Fund Balances Beginning of Year 41,279 Fund Balances End of Year 47,894 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana County Land Planning Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 139 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 11,079 $ 116,718 $ 78,719 $ (37,999) $ Charges For Services - $ - $ 441 $ 441 $ Total Revenues 11,079 $ 116,718 $ 79,160 $ (37,558) $ Expenditures Current: Public safety 19,064 118,477 50,014 68,463 Capital Outlay 32,400 32,400 32,360 40 Total Expenditures 51,464 150,877 82,374 68,503 Excess (Deficiency) of Revenues Over (Under) Expenditures (40,385) $ (34,159) $ (3,214) $ (106,061) $ Fund Balances Beginning of Year 492 Fund Balances End of Year (2,722) $ For the Fiscal Year Ended June 30, 2011 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 140 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental - $ - $ - $ - $ Private grants and contributions - - - - Total Revenues - - - - Expenditures Current: Culture and recreation - - - - (Deficiency) of Revenues (Under) Expenditures - $ - $ - - $ Fund Balances Beginning of Year (16,240) Fund Balances End of Year (16,240) $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Montana Historical Preservation 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 Private grants and donations 25,000 $ 25,000 $ - $ (25,000) $ Expenditures Current: Housing and community development 25,000 25,000 13,450 11,550 (Deficiency) of Revenues (Under) Expenditures - $ - $ (13,450) (13,450) $ Fund Balances Beginning of Year 54,736 Fund Balances End of Year 41,286 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Superfund Health Studies Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 142 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 63 $ 63 $ 63 $ - $ Private grants and donations 119,068 119,068 117,361 (1,707) Total Revenues 119,131 119,131 117,424 (1,707) Expenditures Current: General government 124,787 124,787 111,444 13,343 Excess (Deficiency) of Revenues Over (Under) Expenditures (5,656) $ (5,656) $ 5,980 11,636 $ Fund Balances Beginning of Year 1,970 Fund Balances End of Year 7,950 $ For the Fiscal Year Ended June 30, 2011 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 143 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 20,000 $ 20,000 $ 20,997 $ 997 $ Fund Balances Beginning of Year 641,389 Fund Balances End of Year 662,386 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Anaconda-ARCO Community Readjustment Schedule of Revenues and Changes in Fund Balances - Budget and Actual 144 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings - $ - $ 46 $ 46 $ Fund Balances Beginning of Year 22,372 Fund Balances End of Year 22,418 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Arco Lead Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 145 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 276 $ 276 $ 275 $ $ Private grants and donations 644,946 644,946 673,291 28,345 Total Revenues 645,222 645,222 673,566 28,344 Expenditures Current: Public health 618,036 678,319 628,534 49,785 Capital Outlay - - - - Total Expenditures 618,036 678,319 628,534 49,785 Excess (Deficiency) of Revenues Over (Under) Expenditures 27,186 $ (33,097) $ 45,032 78,129 $ Fund Balances Beginning of Year (57,575) Fund Balances End of Year (12,543) $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Superfund Residential Metals Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 146 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 6,145,179 $ 6,145,179 $ 883,079 $ (5,262,100) $ Expenditures Current: General government 483,023 483,023 173,023 310,000 Capital Outlay 5,849,753 5,849,753 791,945 5,057,808 Total Expenditures 6,332,776 6,332,776 964,968 5,367,808 Excess (Deficiency) of Revenues Over (Under) Expenditures (187,597) $ (187,597) $ (81,889) 105,708 $ Fund Balances Beginning of Year - As Restated (305,769) Fund Balances End of Year (387,658) $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana NRDP Greenway Projects 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 Investment earnings 7,638 $ 7,638 $ 7,634 $ $ Expenditures Current: Housing and community development - - - - Excess of Revenues Over Expenditures 7,638 7,638 7,634 Other Financing (Uses) Transfers out - East butte RRA (42,209) (42,209) (30,000) 12,209 Net Change in Fund Balances $ (34,571) $ (34,571) (22,366) $ 12,205 Fund Balances Beginning of Year 280,765 Fund Balances End of Year 258,399 $ For the Fiscal Year Ended June 30, 2011 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 148 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 17,500 $ 17,500 $ 16,698 $ (802) $ Fund Balances Beginning of Year 5,458,241 Fund Balances End of Year 5,474,939 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Arco Redevelopment Trust 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 Intergovernmental 254 $ 254 $ 130 $ (124) $ Private grants and donations 2,511,235 2,511,235 2,536,263 25,028 Total Revenues 2,511,489 2,511,489 2,536,393 24,904 Expenditures Current: Public works 535,851 600,851 460,749 140,102 Capital Outlay 2,010,381 1,945,381 1,446,284 499,097 Total Expenditures 2,546,232 2,546,232 1,907,033 639,199 Excess (Deficiency) of Revenues Over (Under) Expenditures (34,743) $ (34,743) $ 629,360 664,103 $ Fund Balances Beginning of Year (32,972) Fund Balances End of Year 596,388 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Superfund Stormwater System Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 150 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Miscellaneous Revenue - $ - $ 8,744 $ 8,744 $ Excess (Deficiency) of Revenues Over (Under) Expenditures - $ - $ 8,744 8,744 $ Fund Balances Beginning of Year (8,744) Fund Balances End of Year - $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana RTP Grants Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 151 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Debt Service Funds LEA Detention Total Tax Civic Center and Nonmajor Increment SID Center Adminstration Ladder Truck Debt Service Bond Revolving Bond Issue Projects Debt Service Archives ASIMI Bond Funds Assets Cash and cash equivalents 193,480 $ 90,332 $ 23,243 $ 132,137 $ 5,851 $ 1,989 $ 1,757,064 $ 2,204,096 $ Investments 154,157 - - - - - - 154,157 Restricted assets - investments 158,023 - - - - - - 158,023 Special Assesssments 113,206 - - - - - - 113,206 Property taxes receivable - - 17,673 104,796 13,684 56,580 - 192,733 Total Assets 618,866 $ 90,332 $ 40,916 $ 236,933 $ 19,535 $ 58,569 $ 1,757,064 $ 2,822,215 $ Liabilities and Fund Balances Liabilities Interfund payable - $ - $ - $ - $ - $ - $ - $ - $ Deferred revenue 113,206 - 17,674 104,796 13,685 56,579 - 305,940 Total Liabilities 113,206 - 17,674 104,796 13,685 56,579 - 305,940 Fund Balances Restricted 158,022 90,332 23,242 132,137 5,850 1,990 1,757,064 2,168,637 Assigned 347,638 - - - - - - 347,638 Total Fund Balances 505,660 90,332 23,242 132,137 5,850 1,990 1,757,064 2,516,275 Total Liabilities and Fund Balances 618,866 $ 90,332 $ 40,916 $ 236,933 $ 19,535 $ 58,569 $ 1,757,064 $ 2,822,215 $ June 30, 2011 152 ---PAGE BREAK--- LEA Detention Total Tax Civic Center and Ladder Nonmajor Increment SID Center Adminstration Truck Archives Debt Service Bond Revolving Bond Issue Projects Bond Issue Bond Issue ASiMI Bond Funds Property taxes 1,641,589 $ - $ 163,067 $ 933,688 $ 119,096 $ 563,608 $ - $ 3,421,048 $ Intergovernmental 283,801 - 22,633 - - 18,054 - 324,488 Miscellaneous 646,890 - - - 4 20 - 646,914 Investment earnings 1,073 - - - - - - 1,073 Total Revenues 2,573,353 - 185,700 933,688 119,100 581,682 - 4,393,523 Expenditures Current: Culture and recreation - - 500 350 - 550 - 1,400 Debt Service: Principal retirement 60,000 45,000 115,000 540,000 100,214 205,000 2,810,000 3,875,214 Interest and fiscal charges 23,970 7,028 72,816 382,205 14,164 290,033 1,063,420 1,853,636 Bond issuance costs - - - - - - 12,660 12,660 Advance bond refunding - - - - - - 120,000 120,000 Total Expenditures 83,970 52,028 188,316 922,555 114,378 495,583 4,006,080 5,862,910 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,489,383 (52,028) (2,616) 11,133 4,722 86,099 (4,006,080) (1,469,387) Other Financing Sources (Uses) Proceeds from tax increment bonds 12,152,536 12,152,536 Payment to refunded bond escrow agent - - - - - - (11,655,000) (11,655,000) Transfers in - 49,715 - 58,613 - - 1,757,364 1,865,692 Transfers out (3,120,768) - - - - - - (3,120,768) Total Other Financing Sources (Uses) (3,120,768) 49,715 - 58,613 - - 2,254,900 (757,540) Net Change in Fund Balances (631,385) (2,313) (2,616) 69,746 4,722 86,099 (1,751,180) (2,226,927) Fund Balances Beginning of Year 1,137,045 92,645 25,858 62,391 1,128 (84,109) 3,508,244 4,743,202 Fund Balances End of Year 505,660 $ 90,332 $ 23,242 $ 132,137 $ 5,850 $ 1,990 $ 1,757,064 $ 2,516,275 $ 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, 2011 153 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 2,007,414 $ 2,007,414 $ 1,641,589 $ (365,825) $ Tax title and property tax sale 2,500 2,500 - (2,500) Intergovernmental 283,801 283,801 283,801 - Investment earnings 5,000 5,000 1,073 (3,927) Miscellaneous - - 646,890 646,890 Total Revenues 2,298,715 2,298,715 2,573,353 274,638 Expenditures Debt Service: Principal 60,000 60,000 60,000 - Interest 23,970 23,970 23,970 - Total Expenditures 83,970 83,970 83,970 - Excess (Deficiency) of Revenues Over (Under) Expenditures 2,214,745 2,214,745 2,489,383 274,638 Other Financing (Uses) Transfers out: Urban revitalization agency economic development fund - - (3,120,768) - Net Changes in Fund Balances 2,214,745 $ 2,214,745 $ (631,385) 274,638 $ Fund Balances Beginning of Year 1,137,045 Fund Balances End of Year 505,660 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Tax Increment Bond Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 154 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Debt Service: Principal 45,000 $ 45,000 $ 45,000 $ - $ Interest 7,028 7,028 7,028 - Total Expenditures 52,028 52,028 52,028 - Other Financing Sources Transfers in: Combined special improvement district 49,715 49,715 49,715 - Net Change in Fund Balances 2,313 $ 2,313 $ (2,313) - $ Fund Balances Beginning of Year 92,645 Fund Balances End of Year 90,332 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana SID Revolving Fund Schedule of Expenditures and Changes in Fund Balances - Budget and Actual 155 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes Real property 163,235 $ 163,235 $ 159,290 $ (3,945) $ Personal property - - 3,777 3,777 Intergovernmental 22,788 22,788 22,633 (155) Total Revenues 186,023 186,023 185,700 (323) Expenditures Current: Culture and recreation 900 900 500 400 Debt Service: Principal 115,000 115,000 115,000 - Interest 72,817 72,817 72,816 1 Total Expenditures 188,717 188,717 188,316 401 (Deficiency) of Revenues (Under) Expenditures (2,694) $ (2,694) $ (2,616) 78 $ Fund Balances Beginning of Year 25,858 Fund Balances End of Year 23,242 $ For the Fiscal Year Ended June 30, 2011 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 156 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 933,488 $ 933,488 $ 914,214 $ (19,274) $ Personal property - - 19,474 19,474 Total Revenues 933,488 933,488 933,688 200 Expenditures Current: Public safety 1,350 1,350 350 1,000 Debt Service: Principal 540,000 540,000 540,000 - Interest 382,205 382,205 382,205 - Total Expenditures 923,555 923,555 922,555 1,000 (Deficiency) of Revenues (Under) Expenditures 9,933 $ 9,933 $ 11,133 1,200 $ Other Financing Sources Transfers in: LED Debt Service Fund - - 58,613 58,613 Net Change in Fund Balance 69,746 Fund Balances Beginning of Year 62,391 Fund Balances End of Year 132,137 $ For the Fiscal Year Ended June 30, 2011 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 157 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 118,124 $ 118,124 $ 115,434 $ (2,690) $ Personal property - - 2,897 2,897 Special Assessments - - 765 765 Miscellaneous - - 4 4 Total Revenues 118,124 118,124 119,100 976 Expenditures Debt Service: Principal 100,214 100,214 100,214 - Interest 14,165 14,165 14,164 1 Total Expenditures 114,379 114,379 114,378 1 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,745 $ 3,745 $ 4,722 977 $ Fund Balances Beginning of Year 1,128 Fund Balances End of Year 5,850 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Ladder Truck Bond 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 592,226 $ 592,226 $ 555,796 $ (36,430) $ Personal property - - 7,812 7,812 Miscellaneous - - 20 20 Intergovernmental 11,240 11,240 18,054 6,814 Total Revenues 603,466 603,466 581,682 (21,784) Expenditures Current: Cultural and recreation 1,200 1,200 550 650 Debt Service: Principal 205,000 205,000 205,000 - Interest 290,033 290,033 290,033 - Total Expenditures 496,233 496,233 495,583 650 Excess (Deficiency) of Revenues Over (Under) Expenditures 107,233 $ 107,233 $ 86,099 (21,134) $ Fund Balances Beginning of Year (84,109) Fund Balances End of Year 1,990 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Archives 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 Letter of credit in lieu of taxes 500,000 $ 500,000 $ - $ (500,000) $ Investment earnings - - - - Total Revenues 500,000 500,000 - (500,000) Expenditures Current: Housing and community development 225,000 225,000 - 225,000 Debt Service: Principal 2,915,000 2,915,000 2,810,000 105,000 Interest 1,176,096 1,176,096 1,063,420 112,676 Bond issuance costs - 12,660 12,660 - Advance bond refunding - - 120,000 (120,000) Total Expenditures 4,316,096 4,328,756 4,006,080 322,676 (Deficiency) of Revenue (Under) Expenditures (3,816,096) (3,828,756) (4,006,080) (177,324) Other Financing Sources Proceeds from tax increment bonds - - 12,152,536 12,152,536 Payment to refunded bond escrow agent - - (11,655,000) (11,655,000) Transfers in - Ramsey TIFID#2 fund 4,252,215 4,252,215 1,757,364 (2,494,851) Net Change in Fund Balances $ 436,119 $ 423,459 (1,751,180) $ (2,174,639) Fund Balances Beginning of Year 3,508,244 Fund Balances End of Year 1,757,064 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana ASiMI Bond Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 160 ---PAGE BREAK--- Silver Lake Civic Total Hard Rock Junk Vehicle Water Distribution Archives Center Nonmajor Capital Mine Capital Highway Capital System Building Renovation REC Capital Projects Improvements Trust Abandonment Reserve Improvements Fund Project Expansion Funds Assets Cash and cash equivalents 1,617,139 $ 2 $ 228 $ 3,526 $ 278,154 $ 458,536 $ 675 $ 1,260,390 $ 3,618,650 $ Investments 1,503,276 127,419 145,911 3,063 - 69,458 - 1,849,127 Receivables: Accounts 23,978 - - - - - - 23,978 Special assessments - - - - - - - - Loans 14,087 - - - - - - 14,087 Total Assets 3,158,480 $ 127,421 $ 146,139 $ 6,589 $ 278,154 $ 527,994 $ 675 $ 1,260,390 $ 5,505,842 $ Liabilities and Fund Balances Liabilities Vouchers payable 38,988 $ - $ - $ - $ - $ 132,951 $ - $ 171,939 $ Accounts payable - - - - - - - Deferred revenue 88,374 - - - - - - 88,374 Total Liabilities 127,362 - - - - 132,951 - - 260,313 Fund Balances Restricted 3,031,118 127,421 6,589 278,154 395,043 675 1,260,390 5,099,390 Assigned 146,139 146,139 Total Fund Balances 3,031,118 127,421 146,139 6,589 278,154 395,043 675 1,260,390 5,245,529 Total Liabilities and Fund Balances 3,158,480 $ 127,421 $ 146,139 $ 6,589 $ 278,154 $ 527,994 $ 675 $ 1,260,390 $ 5,505,842 $ City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2011 161 ---PAGE BREAK--- Silver Lake Civic Detention Center Total Hard Rock Junk Vehicle Water Distribution Archives Center REC and LEA Nonmajor Capital Mine Capital Highway Capital System Building Renovation Expansion Administration Capital Projects Improvements Trust Abandonment Reserve Improvements Fund Project Project Projects Funds Revenues Intergovernmental 23,428 $ - $ - $ - $ - $ - $ - $ - $ 23,428 $ Fines and forfeitures 69,816 - - - - - - - 69,816 Miscellaneous 9,556 - - - - - - 28,939 38,495 Investment earnings 6,316 389 445 9 - 212 - 218 143 7,732 Total Revenues 109,116 389 445 9 - 212 - 218 29,082 139,471 Expenditures Current General government 52,433 - - - - - - - - 52,433 Capital Outlay 569,632 - - - - 793,833 - 152,792 - 1,516,257 Debt Service: Bond issuance costs - - - - - - - 139,500 - 139,500 Total Expenditures 622,065 - - - - 793,833 - 292,292 - 1,708,190 Excess (Deficiency) of Revenues Over (Under) Expenditures (512,949) 389 445 9 - (793,621) - (292,074) 29,082 (1,568,719) Other Financing Sources (Uses) Transfers Out - - - - - - - - (58,614) (58,614) Bond Proceeds - - - - - - - 1,552,464 - 1,552,464 Total Other Financing Sources (Uses) - - - - - - - 1,552,464 (58,614) 1,493,850 Net Change in Assets (512,949) 389 445 9 - (793,621) - 1,260,390 (29,532) (74,869) Fund Balances Beginning of Year 3,544,067 127,032 145,694 6,580 278,154 1,188,664 675 - 29,532 5,320,398 Fund Balances End of Year 3,031,118 $ 127,421 $ 146,139 $ 6,589 $ 278,154 $ 395,043 $ 675 $ 1,260,390 $ - $ 5,245,529 $ 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, 2011 162 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Fines and forfeitures 165,000 $ 165,000 $ 69,816 $ (95,184) $ Intergovernmental - - 23,428 23,428 Miscellaneous - - 9,556 9,556 Investment earnings 15,000 15,000 6,316 (8,684) Total Revenues 180,000 180,000 109,116 (70,884) Expenditures Current: General government 48,779 48,779 52,433 (3,654) Capital Outlay: Public safety 1,486,840 1,486,840 569,632 917,208 General government - - - - Total Expenditures 1,535,619 1,535,619 622,065 913,554 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,355,619) $ (1,355,619) $ (512,949) 842,670 $ Fund Balances Beginning of Year 3,544,067 Fund Balances End of Year 3,031,118 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Capital Improvements Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 163 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 425 $ 425 $ 389 $ 417 $ Fund Balances Beginning of Year 127,032 Fund Balances End of Year 127,421 $ For the Fiscal Year Ended June 30, 2011 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 164 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 500 $ 500 $ 445 $ (55) $ Expenditures Capital Outlay: Public works 100,000 100,000 - 100,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (99,500) $ (99,500) $ 445 99,945 $ Fund Balances Beginning of Year 145,694 Fund Balances End of Year 146,139 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Highway Abandonment 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 - $ - $ 9 $ 9 $ Fund Balances Beginning of Year 6,580 Fund Balances End of Year 6,589 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Junk Vehicle Capital Improvement Fund Schedule of Revenues and Changes in Fund Balances - Budget and Actual 166 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Fund Balances Beginning of Year 278,154 Fund Balances End of Year 278,154 $ For the Fiscal Year Ended June 30, 2011 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 167 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental - $ - $ - $ - $ Investment earnings - - 212 212 Total Revenues - - 212 212 Expenditures Capital Outlay: Culture and recreation 1,179,672 1,179,672 793,833 385,839 (Deficiency) of Revenues (Under) Expenditures (1,179,672) (1,179,672) (793,621) (385,627) Fund Balances Beginning of Year 1,188,664 Fund Balances End of Year 395,043 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Archives Building Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 168 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings - $ - $ 218 $ 218 $ Expenditures Capital Outlay - 152,792 152,792 - Debt Service: Bond issuance costs - 139,500 139,500 - Total Expenditures - 292,292 292,292 - (Deficiency) of Revenues (Under) Expenditures - (292,292) (292,074) 218 Other Financing Sources Issuance of tax increment bonds - - 1,552,464 1,552,464 Net Change in Fund Balances $ - $ (292,292) 1,260,390 $ 1,552,682 Fund Balances Beginning of Year - Fund Balances End of Year 1,260,390 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana REC Expansion 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 675 Fund Balances End of Year 675 $ For the Fiscal Year Ended June 30, 2011 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 150 $ 150 $ 143 $ $ Other Miscellaneous Revenue - $ - $ 28,939 $ 28,939 $ Total Revenues 150 $ 150 $ 29,082 $ 28,932 $ Other Financing Sources Transfers Out (58,614) (Deficiency) of Revenues (Under) Expenditures (29,532) Fund Balances Beginning of Year 29,532 Fund Balances End of Year - $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Detention Center & LEA Administrative Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 171 ---PAGE BREAK--- Small Silver Lake MR Total Nonmajor Community Home Business Water Infrastructure Enterprise Facilities Health Incubator System Project Funds Assets Current Assets: Cash and cash equivalents 88,402 $ - $ 152,718 $ 557,483 $ - $ 798,603 $ Investments - - 85,059 401,005 - 486,064 Accounts receivable - 115,373 7,921 468,141 - 591,435 Inventory - 5,334 - - - 5,334 Total Current Assets 88,402 120,707 245,698 1,426,629 - 1,881,436 Noncurrent Assets: Capital assets: Nondepreciable - - 5,433 - - 5,433 Depreciable, net 346,768 11,670 204,704 118,609 1,591,015 2,272,766 Total Noncurrent Assets 346,768 11,670 210,137 118,609 1,591,015 2,278,199 Total Assets 435,170 132,377 455,835 1,545,238 1,591,015 4,159,635 Liabilities Current Liabilities: Vouchers payable 2,033 7,134 1,589 26,291 - 37,047 Accrued wages and benefits payable - 4,385 1,978 920 - 7,283 Compensated absences - 2,270 32 - - 2,301 Interfund payable - 29,792 - - - 29,792 Deferred revenue - - 4,617 - - 4,617 Total Current Liabilities 2,033 43,581 8,216 27,211 - 81,040 Long-Term Liabilities: Compensated absences - 20,426 286 - - 20,713 Total Liabilities 2,033 64,007 8,502 27,211 - 101,753 Net Assets Invested in capital assets 346,768 11,670 210,137 118,609 1,591,015 2,278,199 Unrestricted 86,369 56,700 237,196 1,399,418 - 1,779,683 Total Net Assets 433,137 $ 68,370 $ 447,333 $ 1,518,027 $ 1,591,015 $ 4,057,882 $ Combining Statement of Net Assets City and County of Butte-Silver Bow, Montana Nonmajor Enterprise Funds June 30, 2011 172 ---PAGE BREAK--- 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, 2011 Small Silver Lake MR Total Nonmajor Community Home Business Water Infrastructure Enterprise Facilities Health Incubator System Project Funds Operating Revenues Charges for services - $ 438,868 $ 61,956 $ 758,225 $ - $ 1,259,049 $ Miscellaneous 75,647 31,399 42 - - 107,088 Total Operating Revenues 75,647 470,267 61,998 758,225 - 1,366,137 Operating Expenses Personal services 23,718 300,801 58,883 49,018 - 432,420 Operation and maintenance 40,622 129,572 69,013 361,988 - 601,195 Depreciation 18,128 1,488 27,976 5,195 92,680 145,467 Total Operating Expenses 82,468 431,861 155,872 416,201 92,680 1,179,082 Operating Income (Loss) (6,821) 38,406 (93,874) 342,024 (92,680) 187,055 Non-Operating Revenues (Expenses) Investment earnings - - 259 1,481 - 1,740 Total Non-Operating Revenues (Expenses) - - 259 1,481 - 1,740 Income (Loss) Before Tranfers In (Out) (6,821) 38,406 (93,615) 343,505 (92,680) 188,795 Transfers in (out): General fund - - 38,735 - - 38,735 Ramsay TIFID #2 fund - - 15,000 - - 15,000 Change in Net Assets (6,821) 38,406 (39,880) 343,505 (92,680) 242,530 Net Assets Beginning of Year 439,958 29,964 487,213 1,174,522 1,683,695 3,815,352 Net Assets End of Year 433,137 $ 68,370 $ 447,333 $ 1,518,027 $ 1,591,015 $ 4,057,882 $ 173 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Fiscal Year Ended June 30, 2011 Small Silver Lake MR Total Nonmajor Community Home Business Water Infrastructure Enterprise Facilities Health Incubator System Project Funds Increase (Decrease) in Cash and Cash Equivalents Cash Flows from Operating Activities Cash received from customers 75,646 $ # 423,980 $ # 61,958 $ # 371,855 $ - $ 933,439 $ Cash payments for personal services (24,004) (141,964) (61,586) (52,075) - (279,629) Cash payments for goods and services (39,738) (282,016) (65,198) (352,470) - (739,422) Net Cash Provided by (Used in) Operating Activities 11,904 - (64,826) (32,690) - (85,612) Cash Flows from Noncapital Financing Activities Transfers in - - 53,735 - - 53,735 Cash Flows from Capital and Related Financing Activities Payments for capital acquisitions - - - (107,925) - (107,925) Net Cash Provided by (Used in) Capital and Related Financing Activities - - - (107,925) - (107,925) Cash Flows from Investing Activities Interest on investments - - 260 1,481 - 1,741 Net Increase (Decrease) in Cash and Cash Equivalents 11,904 - (10,831) (139,134) - (138,061) Cash and Cash Equivalents Beginning of Year 76,498 - 248,608 1,097,622 - 1,422,728 Cash and Cash Equivalents End of Year 88,402 $ - $ 237,777 $ 958,488 $ - $ 1,284,667 $ Reconciliation to Combining Statement of Net Assets Cash and cash equivalents 88,402 $ - $ 152,718 $ 557,483 $ - $ 798,603 $ Investments - - 85,059 401,005 - 486,064 Total 88,402 $ - $ 237,777 $ 958,488 $ - $ 1,284,667 $ 174 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Statement of Cash Flows Nonmajor Proprietary Funds For the Fiscal Year Ended June 30, 2011 Small Silver Lake MR Total Nonmajor Community Home Business Water Infrastructure Enterprise Facilities Health Incubator System Project Funds Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities Operating Income (Loss) (6,821) $ 38,406 $ (93,874) $ 342,024 $ (92,680) $ 187,055 $ Adjustments: Depreciation 18,128 1,488 27,976 5,195 92,680 145,467 (Increase) Decrease in Assets: Accounts receivable - (67,030) 2,449 (386,370) - (450,951) Inventory - (1,221) - - - (1,221) Increase (Decrease) in Liabilities: Accounts payable 597 35,332 824 9,084 - 45,837 Accrued wages and benefits payable - (12,419) (1,990) (2,623) - (17,032) Compensated absences payable - 5,444 (211) - - 5,233 Net Cash Provided by (Used in) Operating Activities 11,904 $ - $ (64,826) $ (32,690) $ - $ (85,612) $ 175 ---PAGE BREAK--- 176 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--- Central Equipment Central Administration Services Central EDP & Communications GIS Services Total Assets Current Assets: Cash and cash equivalents 169,350 $ 42,736 $ 311,556 $ 222,396 $ 746,038 $ Accounts receivable 5,740 - 2,543 - 8,283 Total Current Assets 175,090 42,736 314,099 222,396 754,321 Noncurrent Assets: Capital assets: Nondepreciable 40,000 - - - 40,000 Depreciable, net 1,329,439 22,233 11,162 3,693 1,366,527 Total Noncurrent Assets 1,369,439 22,233 11,162 3,693 1,406,527 Total Assets 1,544,529 64,969 325,261 226,089 2,160,848 Liabilities Current Liabilities: Vouchers payable 133,116 19,818 24,088 - 177,022 Accounts payable - - - - - Accrued wages and benefits payable 10,951 4,778 6,304 481 22,514 Compensated absences payable 6,469 3,197 3,380 671 13,716 Total Current Liabilities 150,536 27,793 33,772 1,152 213,252 Long-term Liabilities Compensated absences payable 58,218 28,769 30,416 6,040 123,443 Total Liabilities 208,754 56,562 64,187 7,192 336,695 Net Assets Invested in capital assets 1,369,439 22,233 11,162 3,693 1,406,527 Unrestricted (33,664) (13,826) 249,912 215,204 417,626 Total Net Assets 1,335,775 $ 8,407 $ 261,074 $ 218,897 $ 1,824,153 $ City and County of Butte-Silver Bow, Montana June 30, 2011 Internal Service Funds Combining Statement of Net Assets 177 ---PAGE BREAK--- Central Equipment Central Administration Services Central EDP & Communications GIS Services Total Operating Revenues Charges for services 1,333,159 $ 348,178 $ 424,169 $ 32,885 $ 2,138,391 $ Miscellaneous 4,605 2,000 530 785 7,920 Total Operating Revenues 1,337,764 350,178 424,699 33,670 2,146,311 Operating Expenses Personal services 694,918 310,548 299,635 31,338 1,336,439 Operations and maintenance 759,786 84,334 150,473 3,696 998,289 Depreciation 200,072 345 1,546 1,083 203,046 Total Operating Expenses 1,654,776 395,227 451,654 36,117 2,537,774 Operating Income (Loss) (317,012) (45,049) (26,955) (2,447) (391,463) Non-Operating Revenues Intergovernmental 469 224 224 23 940 Change in Net Assets (316,543) (44,825) (26,731) (2,424) (390,523) Total Net Assets Beginning of Year 1,652,318 53,232 287,805 221,321 2,214,676 Total Net Assets End of Year 1,335,775 $ 8,407 $ 261,074 $ 218,897 $ 1,824,153 $ 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, 2011 Internal Service Funds 178 ---PAGE BREAK--- 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 1,336,190 $ 350,186 $ 428,616 $ 33,671 $ 2,148,663 $ Cash payments for personnel services (721,431) (332,139) (312,184) (32,635) (1,398,389) Cash payments for goods and services (685,488) (50,482) (134,878) (2,302) (873,150) Net Cash Provided by Operating Activities (70,729) (32,435) (18,446) (1,266) (122,876) Cash Flows from Noncapital Financing Activities Intergovernmental 469 0 224 224 23 940 Cash Flows from Capital and Related Financing Activities Payments for capital acquisitions (145,539) (22,578) - - (168,117) Net Increase (Decrease) in Cash and Cash Equivalents (215,799) (54,789) (18,222) (1,243) (290,053) Cash and Cash Equivalents Beginning of Year 385,149 97,525 329,778 223,639 1,036,091 Cash and Cash Equivalents End of Year 169,350 $ 42,736 $ 311,556 $ 222,396 $ 746,038 $ Combining Statement of Cash Flows City and County of Butte-Silver Bow, Montana For the Fiscal Year Ended June 30, 2011 Internal Service Funds 179 ---PAGE BREAK--- 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) (317,012) $ (45,049) $ (26,955) $ (2,447) $ (391,463) $ Adjustments: Depreciation 200,072 345 1,546 1,083 203,046 Capital asset adjustments - - - - (Increase) Decrease in Assets: Accounts receivable (1,573) 1,169 - (413) Increase (Decrease) in Liabilities: Vouchers payable 67,503 17,599 17,377 (360) 102,119 Accounts payable - - (5,973) - (5,973) Accrued wages and benefits payable (19,874) (9,507) (9,557) (989) (39,927) Compensated absences payable 155 4,186 3,947 1,447 9,735 Net Cash Provided by Operating Activities (70,729) $ (32,435) $ (18,446) $ (1,266) $ (122,876) $ City and County of Butte-Silver Bow, Montana Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended June 30, 2011 180 ---PAGE BREAK--- 181 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--- School District #1 School District #1 Individual External Investment Investment Funds Pool Total Assets Investments 7,756,422 $ 1,354,414 $ 9,110,836 $ Net Assets Net assets held in trust for pool participants 7,756,422 $ 1,354,414 $ 9,110,836 $ City and County of Butte-Silver Bow, Montana June 30, 2011 Trust Funds Combining Statement of Fiduciary Net Assets 182 ---PAGE BREAK--- School District #1 School District #1 Individual External Investment Investment Funds Pool Total Additions Shares and investments purchased 3,495,204 $ 173,896,241 $ 177,391,445 $ Investment earnings 134,248 49,713 183,961 Total Additions 3,629,452 173,945,954 177,575,406 Deductions Shares and investments redeemed 3,506,000 173,896,241 177,402,241 Investment earnings distributed to School District #1 - - - Total Deductions 3,506,000 173,896,241 177,402,241 Increase (Decrease) in Net Assets 123,452 49,713 173,165 Net Assets Held in Trust For Pool Participants Beginning of Year 7,632,971 1,304,700 8,937,671 Net Assets Held in Trust For Pool Participants End of Year 7,756,423 $ 1,354,413 $ 9,110,836 $ City and County of Butte-Silver Bow, Montana For the Fiscal Year Ended June 30, 2011 Trust Funds Combining Statement of Changes in Fiduciary Net Assets 183 ---PAGE BREAK--- Balance Balance June 30, 2010 Additions Deductions June 30, 2011 Property Tax Fund Assets Cash and cash equivalents 575,746 $ 1,832,982 $ 2,036,282 $ 372,446 $ Investments 979,894 352,352 731,227 601,019 Receivables 2,770,578 19,311,593 19,709,838 2,372,333 Total Assets 3,193,963 $ 21,496,927 $ 22,477,347 $ 3,345,798 $ Liabilities Accounts payable 1,046,270 $ 789,516 $ 1,337,291 $ 498,495 $ Interest payable 233,579 2,352 - 235,931 Intergovernmental payable: Due to special districts 435,233 152,723 125,192 462,764 Due to state 636,033 5,350,572 5,452,495 534,110 Due to schools 1,666,373 12,905,293 13,193,607 1,378,059 Due to component unit 75,199 204,842 252,819 27,222 Due to cities and towns 233,532 1,839,928 1,864,242 209,218 Total Liabilities 3,193,963 $ 21,245,226 $ 22,225,646 $ 3,345,798 $ Balance Balance School District Trust Fund June 30, 2010 Additions Deductions June 30, 2011 Assets Cash and cash equivalents 24,125,246 $ 225,110,784 $ 225,341,653 $ 23,894,377 $ Liabilities Due to schools 24,125,246 $ 225,110,784 $ 225,341,653 $ 23,894,377 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Statement of Changes in Fiduciary Assets and Liabilities 184 ---PAGE BREAK--- Balance Balance June 30, 2010 Additions Deductions June 30, 2011 Fees & Judgments Due to State Assets Cash and cash equivalents 549,296 $ 12,708,429 $ 12,720,725 $ 537,000 $ Liabilities Due to state 549,296 $ 12,708,429 $ 12,720,725 $ 537,000 $ Balance Balance Tax Deed Land & Redemption Fund June 30, 2009 Additions Deductions June 30, 2011 Assets Cash and cash equivalents 6,758 $ 92,457 $ 94,164 $ 5,051 $ Contracts receivable 2,138 10,024 12,162 - Land acquired by tax deed 261,541 - - 261,541 Total Assets 303,705 $ 102,481 $ 106,326 $ 266,592 $ Liabilities Accounts payable 265,793 $ 90,318 $ 93,111 $ 263,000 $ Vouchers payable 4,644 76,996 78,048 3,592 Total Liabilities 303,705 $ 167,314 $ 171,159 $ 266,592 $ Balance Balance Butte-Silver Bow Trust Funds June 30, 2010 Additions Deductions June 30, 2011 Assets Cash and cash equivalents 96,057 $ 17,501 $ 30,042 $ 83,516 $ Investments 388,341 1,207 - 389,548 Total Assets 515,625 $ 18,708 $ 30,042 $ 473,064 $ Liabilities Accounts payable 484,279 $ 22,184 $ 33,668 $ 472,795 $ Vouchers payable 119 567 417 269 Total Liabilities 515,625 $ 22,751 $ 34,085 $ 473,064 $ For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Statement of Changes in Fiduciary Assets and Liabilities 185 ---PAGE BREAK--- Balance Balance June 30, 2010 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, 2011 City and County of Butte-Silver Bow, Montana Statement of Changes in Fiduciary Assets and Liabilities 186 ---PAGE BREAK--- Statistical Section ---PAGE BREAK--- ---PAGE BREAK--- Contents Exhibits Financial Trends I - XIIA Exhibits Page I Government-wide Net Assets by Category 190 IA Chart-Government-wide Net Assets by Category 191 II Changes in Net Assets - Governmental Activities 192 III Changes in Net Assets - Governmental Activities - Percentage of Total 193 IV Changes in Net Assets - Business-type Activities 194 V Changes in Net Assets - Business-type Activities - Percentage of Total 195 VI Changes in Net Assets - Total 196 VII Tax Revenues by Source - Governmental Funds 197 VIIA Chart-Tax Revenues by Source - Governmental Funds 198 VIII Fund Balances - Governmental Funds 199 IX General Governmental Revenues by Source (Unaudited) 200 X General Governmental Expenditures by Function (Unaudited) 201 XI General Governmental Current Expenditures by Function (Unaudited) 202 XII Changes in Fund Balances - Governmental Funds 203 XIIA Chart-Changes in Fund Balances - Governmental Funds 204 Revenue Capacity XIII - XVI Exhibits Page XIII Assessed Market Value 205 XIV Direct and Overlapping Property Tax Rates 206 XV Principal Property Taxpayers 207 XVI Property Tax Levies and Collections1 208 Debt Capacity XVII - XXI Exhibits Page XVII Ratios of Total Debt Oustanding by Type 209 XVIII Ratio of General Bonded Debt Outstanding 210 XIX Governmental Activities Direct and Overlapping Debt 211 XX Legal Debt Margin 212 XXI Schedule of Revenue Bond Coverage 213 Demographic and Economic Information XXII - XXIII Exhibits Page XXII Demographic and Economic Statistics 214 XXIII Top Twenty Private Employers 215 Operating Information XXIV - XXVI Exhibits Page XXIV Full-time Equivalent Employees by Function 216 XXV Operating Indicators by Function/Program 217 XXVI Capital Asset and Infastructure Statistics by Function/Program 218 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. 187 ---PAGE BREAK--- Exhibit I 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 Governmental Activities Invested in capital assets, net of related debt 3 (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 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 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 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 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 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 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 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 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 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 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 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 $ 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 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% Restricted 72.8% 25.0% 19.6% 20.8% 5.8% 7.0% 9.0% 9.4% 47.2% Unrestricted 106.2% 101.9% 94.8% 82.4% 50.5% 50.9% 50.0% 42.1% 3.2% Subtotal Governmental Activities Net Assets 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% Restricted 17.5% 12.2% 12.7% 15.6% 13.2% 12.7% 4.9% 3.9% 2.3% Unrestricted 25.7% 27.5% 23.7% 18.5% 21.8% 19.6% 22.6% 20.4% 17.1% Subtotal Business-type Activities Net Assets 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% Restricted 36.1% 16.9% 15.4% 17.7% 8.9% 9.4% 7.3% 7.1% 27.2% Unrestricted 53.0% 55.0% 51.2% 45.0% 38.7% 37.9% 38.3% 32.7% 9.4% Total Primary Government Net Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Notes: 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. City and County of Butte-Silver Bow, Montana Government-wide Net Assets by Category 2 Last Nine Fiscal Years 1 (accrual basis of accounting) Amounts Percentage of Total 1 The City and County implemented GASB Statement No. 34 in fiscal year 2003, therefore, only nine years of government-wide data is presented. 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. June 30, 2011 188 ---PAGE BREAK--- Exhibit IA June 30, 2011 Chart-Government-wide Net Assets by Category City and County of Butte-Silver Bow, Montana Last Nine Fiscal Years (accrual basis of accounting) $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 $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 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 6/25/1905 6/26/1905 6/27/1905 6/28/1905 6/29/1905 6/30/1905 7/1/1905 7/2/1905 7/3/1905 Fiscal Year Governmental Activities Business-type Activities 189 ---PAGE BREAK--- Exhibit II Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 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 $ 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 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 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 Social and economic services 172,573 195,594 179,827 202,267 201,839 216,137 236,774 237,155 248,113 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 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 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 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 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 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 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 Other activities 796,941 859,098 825,649 783,641 597,152 573,947 1,241,495 1,125,064 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 Capital grants and contributions 610,273 719,935 1,659,303 2,629,319 312,124 753,789 - - 4,678,246 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 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) 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 Franchise 216,207 228,647 240,923 261,119 288,216 300,714 321,282 330,218 350,428 Motor fuel 731,704 706,957 685,844 668,036 665,350 656,136 643,665 - 625,158 Investment earnings 913,867 480,856 1,076,240 1,758,245 2,504,774 2,145,787 937,855 396,421 355,257 Miscellaneous 202,290 188,198 326,261 180,734 789,360 569,371 872,978 1,084,810 1,600,472 Transfers in 130,862 231,265 272,308 251,501 246,265 298,945 205,774 246,265 246,264 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 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 $ 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. City and County of Butte-Silver Bow, Montana Changes in Net Assets - Governmental Activities Last Nine Fiscal Years 1 (accrual basis of accounting) Fiscal Year Ended June 30, 2011 190 ---PAGE BREAK--- Exhibit III Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 Expenses: General government 25.7% 23.8% 27.1% 26.2% 23.3% 23.9% 23.5% 25.3% 25.8% Public safety 29.1% 29.0% 29.9% 28.8% 27.3% 30.1% 30.5% 29.9% 28.3% Public works 12.5% 13.3% 12.0% 12.8% 13.0% 14.3% 14.3% 14.4% 13.2% Public health 8.0% 7.4% 8.0% 7.8% 7.2% 8.0% 9.0% 9.5% 8.4% Social and economic services 0.5% 0.6% 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% Housing and community development 7.8% 12.0% 8.4% 11.4% 17.6% 11.9% 11.4% 10.0% 14.1% Interest and fiscal charges 9.5% 8.0% 7.7% 6.4% 5.2% 5.0% 4.7% 4.3% 3.1% Total Expenses 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% Public safety 6.5% 7.7% 6.1% 5.9% 5.6% 5.3% 4.9% 4.7% 4.1% Public works 7.2% 9.9% 7.0% 5.8% 28.0% 1.8% 0.6% 0.5% 0.5% Other activities 4.2% 4.4% 4.2% 3.3% 2.6% 2.9% 5.3% 4.8% 4.1% Operating grants and contributions 63.0% 57.6% 56.4% 57.6% 54.4% 63.9% 71.1% 70.9% 55.7% Capital grants and contributions 3.2% 3.7% 8.4% 11.1% 1.3% 3.8% 0.0% 0.0% 18.0% Total Program Revenues 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% Franchise 1.1% 1.0% 1.3% 1.2% 1.1% 1.1% 1.3% 1.2% 1.2% Motor fuel 3.6% 3.2% 3.6% 3.1% 2.5% 2.4% 2.5% 0.0% 2.1% Investment earnings 4.5% 2.2% 5.7% 8.2% 9.2% 7.9% 3.7% 1.4% 1.2% Miscellaneous 1.0% 0.9% 1.7% 0.8% 2.9% 2.1% 3.4% 3.8% 5.3% Transfers in 0.6% 1.1% 1.4% 1.2% 0.9% 1.1% 0.8% 0.9% 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% 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, 2011 City and County of Butte-Silver Bow, Montana Changes in Net Assets - Governmental Activities - Percentage of Total Last Nine Fiscal Years 1 (accrual basis of accounting) 191 ---PAGE BREAK--- Exhibit IV Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 Expenses: Community facilities 82,723 $ 136,777 $ 77,479 $ 93,005 $ 132,174 $ 550,183 $ 96,146 $ 84,988 $ 82,468 $ Home health 443,873 455,989 452,745 455,245 478,038 463,873 477,407 455,141 431,861 Small business incubator 139,231 148,147 153,460 166,836 163,866 159,863 145,363 159,511 155,872 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 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 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 Silver lake water system 199,266 371,617 560,408 509,674 325,308 229,247 237,431 228,506 416,201 Water distribution systems improvements 256,670 256,670 - - - - - - - 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 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 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 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 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 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 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 Capital grants and contributions 1,165,795 1,168,842 1,302,889 1,763,404 - - - - 8,678,630 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 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 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 Miscellaneous 190,862 164,258 72,772 28,194 165,373 358,252 214,997 231,147 736,754 Transfers (130,862) (231,265) (272,308) (251,501) (246,265) (298,945) (205,774) (246,265) (246,264) Total General Revenues and Transfers 243,510 70,731 34,545 461,028 808,404 785,256 267,315 34,944 533,438 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 $ Notes: Fiscal Year Ended June 30, 2011 1 The City and County implemented GASB Statement No. 34 in fiscal year 2003, therefore, only nine years of government-wide data is presented. City and County of Butte-Silver Bow, Montana Changes in Net Assets - Business-type Activities Last Nine Fiscal Years 1 (accrual basis of accounting) 192 ---PAGE BREAK--- Exhibit V Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 Expenses: Community facilities 0.7% 1.1% 0.6% 0.7% 1.0% 3.9% 0.7% 0.6% 0.6% Home health 3.7% 3.6% 3.4% 3.4% 3.6% 3.3% 3.5% 3.3% 2.9% Small business incubator 1.2% 1.2% 1.1% 1.3% 1.2% 1.1% 1.1% 1.2% 1.1% Water utility division 53.0% 51.2% 49.3% 51.1% 51.4% 50.4% 52.3% 51.8% 52.5% Metro sewer operations 23.5% 23.3% 23.4% 25.2% 25.8% 24.3% 25.1% 25.0% 24.9% Solid waste 13.8% 13.5% 13.2% 13.6% 13.8% 14.8% 14.9% 15.8% 14.7% Silver lake water system 1.7% 2.9% 4.2% 3.8% 2.4% 1.6% 1.7% 1.7% 2.8% Water distribution systems improvements 2.2% 2.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% MSE-TA mariah project 0.2% 0.2% 3.6% 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% Total Expenses 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% Metro sewer operations 21.8% 20.8% 20.0% 19.3% 20.1% 18.5% 17.5% 17.0% 13.6% Solid waste 15.6% 14.9% 15.6% 14.6% 15.8% 15.4% 13.9% 14.6% 13.4% Other activities 7.3% 11.3% 12.5% 11.9% 11.5% 5.1% 4.2% 3.9% 5.7% Operating grants and contributions 0.0% 1.3% 1.6% 0.1% 7.7% 19.2% 24.7% 27.7% 0.0% Capital grants and contributions 8.2% 7.4% 8.3% 10.9% 0.0% 0.0% 0.0% 0.0% 39.5% Total Program Revenues 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. City and County of Butte-Silver Bow, Montana Changes in Net Assets - Business-type Activities - Percentage of Total Last Nine Fiscal Years 1 (accrual basis of accounting) Fiscal Year Ended June 30, 2011 193 ---PAGE BREAK--- Exhibit VI Source 2003 2004 2005 2006 2007 2008 2009 2010 2011 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 $ 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 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 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 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 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 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) 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 Business-type activities 3 243,510 70,731 34,545 461,028 808,404 785,256 267,315 34,944 533,438 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 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 $ Notes: City and County of Butte-Silver Bow, Montana Changes in Net Assets - Total Last Nine Fiscal Years 1 (accrual basis of accounting) 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, 2011 194 ---PAGE BREAK--- Exhibit VII Fiscal Year Motor Ended June 30, Property Franchise Fuel Total 2002 16,591,649 148,422 732,335 17,472,406 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 Percentage Change In Dollars Over 10 Years ago 61.5% 136.1% -14.6% 58.9% Fiscal Year Motor Ended June 30, Property Franchise Fuel Total 2002 95.0% 0.8% 4.2% 100.0% 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% 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 195 ---PAGE BREAK--- 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 6/24/1905 6/25/1905 6/26/1905 6/27/1905 6/28/1905 6/29/1905 6/30/1905 7/1/1905 7/2/1905 7/3/1905 Fiscal Year Motor Fuel Taxes Franchise Taxes Property Taxes 196 ---PAGE BREAK--- Exhibit VIII 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 General Fund Reserved 1,896,150 $ 1,614,326 $ - $ 1,010,921 $ 1,301,210 $ 1,374,435 $ 1,850,364 $ 2,146,461 $ 1,869,470 $ 1,472,578 $ Unreserved 5,656,324 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 Subtotal General Fund 7,552,474 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 General Fund Percentage Change 16.0% -13.4% 8.1% # -17.3% 6.4% 4.0% -0.6% -1.5% 2.2% -2.1% All Other Governmental Funds Reserved 14,065,494 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 Unreserved Special Revenue Funds1 9,889,817 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) Debt Service Funds - - - - - - - - - - Capital Projects Fund 2,842,386 11,083,586 4,464,972 4,220,666 4,287,624 4,375,157 4,351,734 9,754,832 5,320,398 - Subtotal All Other Governmental Funds 26,797,697 37,928,641 31,455,358 33,004,560 35,139,375 41,453,787 43,738,696 48,775,183 44,119,805 35,077,869 Total Governmental Funds Reserved 15,961,644 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 Unreserved 18,388,527 26,134,929 30,893,327 30,103,509 30,111,751 38,089,776 38,169,824 40,979,939 34,695,303 3,526,526 Total Governmental Funds 34,350,171 $ 44,466,323 $ 38,525,208 $ 38,854,805 $ 41,362,888 $ 47,929,047 $ 50,172,106 $ 55,114,888 $ 50,596,183 $ 41,421,386 $ All Governmental Funds Percentage Change 1.8% 29.5% -13.4% 0.9% 6.5% 15.9% 4.7% 9.9% -8.2% -18.1% Notes: 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) June 30, 2011 197 ---PAGE BREAK--- Exhibit IX Source 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Revenues: Taxes 16,591,649 $ 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 $ Licenses and permits 609,549 642,358 658,653 713,484 774,343 805,522 877,399 830,666 928,139 915,665 Intergovernmental 11,956,307 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 Charges for services 1,960,056 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 Fines and forfeitures 641,242 717,581 815,727 671,442 604,964 582,229 643,978 632,353 675,297 604,083 Special assessments 1,109,032 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 Health insurance contributions 2,092,903 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 Other grants and donations 827,582 774,183 709,832 829,506 1,589,605 6,840,412 703,469 1,370,834 1,683,976 3,518,458 Letter of credit in lieu of taxes - 1,710,322 955,116 867,569 2,503,021 260,560 352,075 - - - Investment earnings 1,212,518 913,868 480,857 1,076,240 1,758,247 2,504,774 2,145,787 937,855 396,421 355,257 Miscellaneous 433,534 214,615 223,945 335,503 225,007 378,402 567,440 809,217 1,080,856 1,591,208 Total Revenues 37,434,372 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 % change from prior year 7.2% 2.0% 5.9% -6.4% 15.4% 12.5% -7.2% 18.2% 0.0% 10.5% Taxes 44.3% 46.9% 50.6% 43.7% 41.0% 43.3% 47.4% 46.1% 47.3% 45.8% Licenses and permits 1.6% 1.7% 1.6% 1.9% 1.8% 1.6% 1.9% 1.5% 1.7% 1.5% Intergovernmental 31.9% 26.7% 25.9% 29.5% 28.0% 20.9% 26.7% 26.7% 25.0% 25.1% Charges for services 5.2% 4.9% 5.3% 4.7% 4.7% 4.2% 4.5% 10.4% 10.2% 9.5% Fines and forfeitures 1.7% 1.9% 2.0% 1.8% 1.4% 1.2% 1.4% 1.2% 1.3% 1.0% Special assessments 3.0% 2.9% 2.9% 3.3% 2.7% 2.6% 2.9% 2.4% 2.6% 2.3% Health insurance contributions 5.6% 5.5% 5.7% 6.9% 6.5% 5.9% 7.0% 6.0% 6.1% 5.5% Other grants and donations 2.2% 2.0% 1.8% 2.2% 3.6% 13.9% 1.5% 2.5% 3.1% 5.9% Letter of credit in lieu of taxes 0.0% 4.5% 2.4% 2.3% 5.7% 0.5% 0.8% 0.0% 0.0% 0.0% Investment earnings 3.2% 2.4% 1.2% 2.8% 4.0% 5.1% 4.7% 1.7% 0.7% 0.6% Miscellaneous 1.2% 0.6% 0.6% 0.9% 0.5% 0.8% 1.2% 1.5% 2.0% 2.7% Total revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Notes: Data Source: Applicable years' comprehensive 1 Includes all governmental fund For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana General Governmental Revenues by Source (Unaudited) 1 Last Ten Fiscal Years (modified accrual basis of accounting) 198 ---PAGE BREAK--- Exhibit X Function 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Expenditures: Current: General government 6,824,045 $ 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 $ Public safety 8,539,499 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 Public works 3,751,730 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 Public health 2,570,134 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 Social and economic services 189,653 171,391 194,230 179,334 199,749 201,889 213,651 234,981 232,947 244,450 Culture and recreation 2,069,003 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 Housing and community development 1,416,698 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 Total Current 25,360,762 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 % Change From Prior Year 5.8% -1.0% 18.3% -3.0% 11.1% 13.2% 2.3% 6.7% 2.3% 9.7% Capital Outlay 3,565,061 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 % Change From Prior Year 9.6% 69.1% 42.8% -71.1% 35.6% 15.9% -37.8% 270.6% 1.1% -33.9% Debt Service2 Principal 8,728,751 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 Interest and fees 1,170,256 1,302,799 531,293 505,979 537,306 2,304,627 2,180,758 2,121,027 2,132,612 1,890,566 Bond issuance costs - - - - - - - 193,760 - 272,160 Total Debt Service 9,899,007 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 % Change From Prior Year -5.2% -4.7% -7.9% -23.4% -6.7% -13.4% -2.7% -2.6% 15.1% 6.5% Total Expenditures 38,824,830 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 Debt Service as a % of Noncapital Expenditures 28.1% 27.3% 22.6% 18.8% 16.3% 12.9% 12.4% 11.0% 12.7% 11.8% Notes: Data Source: For the Fiscal Year Ended June 30, 2011 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, City and County of Butte-Silver Bow, Montana General Governmental Expenditures by Function (Unaudited) 1 Last Ten Fiscal Years (modified accrual basis of accounting) 199 ---PAGE BREAK--- Exhibit XI Function 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Expenditures: Current: General government 6,824,045 $ 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 $ Public safety 8,539,499 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 Public works 3,751,730 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 Public health 2,570,134 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 Social and economic services 189,653 171,391 194,230 179,334 199,749 201,889 213,651 234,981 232,947 244,450 Culture and recreation 2,069,003 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 Housing and community development 1,416,698 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 Total Current 25,360,762 $ 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 $ Current: General government 26.9% 25.8% 25.5% 29.5% 28.0% 26.2% 27.1% 26.5% 28.3% 28.1% Public safety 33.7% 35.7% 33.6% 33.7% 31.9% 30.1% 33.2% 33.3% 32.2% 30.5% Public works 14.8% 15.6% 15.1% 14.5% 14.3% 13.4% 14.6% 14.6% 14.5% 13.2% Public health 10.1% 9.8% 8.6% 9.3% 9.0% 8.3% 9.2% 10.3% 10.9% 9.7% Social and economic services 0.7% 0.7% 0.7% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% Culture and recreation 8.2% 7.8% 6.7% 7.0% 6.8% 6.5% 6.9% 6.6% 7.0% 6.7% Housing and community development 5.6% 4.6% 9.9% 5.4% 9.4% 14.9% 8.3% 8.1% 6.5% 11.2% Total Current 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% For the Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana General Governmental Current Expenditures by Function (Unaudited) 1 Last Ten Fiscal Years (modified accrual basis of accounting) 200 ---PAGE BREAK--- Exhibit XII Last Ten Fiscal Years 2002 2003 2004 2005 2006 2007 2008 2009 0 2010 2011 Total Revenues - Exhibit IX 37,434,372 $ 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 38,824,830 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 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,390,458) (2,389,281) (6,572,380) (85,391) 2,124,845 3,672,530 932,493 317,023 (1,474,342) 2,962,668 Other Financing Sources (Uses) Installment contract inception - - - - - - - - - - Revenue bonds issued - - - - - - - - - - General obligation bonds issued - 12,574,000 - - - - 978,554 7,500,000 - 978,554 Bond premiums - - - - - - - 124,635 - General obligation notes issues - - - - - 1,432,989 33,067 - - 33,067 Insurance reimbursement 19,760 15,780 - - - 96,663 - 9,110 3,000 Special improvement district bonds issued - - 400,000 - - - - - - - Advance letter of credit 1,738,647 - - - - - - - - - Sale of capital assets - - - 25,612 - - - - 2,000 - Transfers in 9,292,293 9,606,428 13,056,293 6,324,257 5,837,567 10,173,684 6,340,104 6,918,720 6,979,676 6,340,104 Transfers out (9,052,436) (9,475,566) (12,825,028) (5,934,880) (5,454,329) (9,997,919) (6,041,159) (6,712,946) (6,733,411) (6,041,159) Total Other Financing Sources (Uses) 1,998,264 12,720,642 631,265 414,989 383,238 1,705,417 1,310,566 7,839,519 251,265 1,310,566 Net Change in Fund Balances 607,806 $ 10,331,361 $ (5,941,115) $ 329,598 $ 2,508,083 $ 5,377,947 $ 2,243,059 $ 8,156,542 $ (1,223,077) $ 4,273,234 $ City and County of Butte-Silver Bow, Montana Changes in Fund Balances - Governmental Funds (modified accrual basis of accounting) 201 ---PAGE BREAK--- 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) June 24, 1905 June 26, 1905 June 27, 1905 2006 2007 2008 2010 2011 June 25, 1905 2009 January 0, 1900 October 23, 7375 1 2 3 4 5 6 7 8 9 10 Fiscal Year Series1 Series2 202 ---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 2002 2001 1,565,937,536 10,749,471 35,302,695 1,736 50,859,744 1,561,131,694 184.05 2003 2002 1,510,197,258 10,485,852 33,436,423 1,428 50,303,459 1,503,817,502 219.00 2004 2003 1,522,233,956 10,397,595 28,527,746 1,255 47,796,617 1,513,363,935 223.62 2005 2004 1,317,164,163 11,041,565 29,773,087 2,260 50,317,847 1,307,663,228 242.54 2006 2005 1,560,551,015 10,199,975 28,719,197 94,240 53,134,397 1,546,430,030 255.20 2007 2006 1,817,623,590 10,939,722 29,215,183 65,375 58,140,238 1,799,703,632 302.27 2008 2007 1,994,573,633 10,388,921 31,971,153 76,284 59,146,227 1,977,863,764 298.00 2009 2008 2,104,765,106 10,373,592 36,058,107 72,795 64,113,888 2,087,155,712 296.66 2010 2009 2,647,331,033 10,001,273 35,204,322 72,798 78,211,071 2,614,398,355 349.84 2011 2010 2,484,377,269 9,697,511 39,178,191 50,229 84,798,691 2,448,504,509 351.28 58.7% -9.8% 11.0% 2793.4% 66.7% 56.8% 90.9% 2002 2001 97.1% 0.7% 2.2% 0.0% 100.0% 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% 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 203 ---PAGE BREAK--- Exhibit XIV Fiscal Debt Debt Special Year Operating Service Total Operating Service Total Districts 2002 182.03 2.02 184.05 326.95 12.67 339.62 20.95 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 % Change From 2002-2011 77.3% 1316.3% 90.9% 1.7% 6.0% 1.8% 12.6% 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 2 204 ---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. 11,196,487 $ 1 17.06% Montana Power Company 2 9,968,156 $ 1 16.72% REC (Formerly ASiMI) 1 10,719,729 2 16.33% ASiMI 1 9,938,189 2 16.67% Northwestern Energy 1 8,464,596 3 12.90% Sumitomo Bank Capital Markets Inc 3,377,725 3 5.66% Basin Creek Equity Partners, LLC 1,193,726 4 1.82% Montana Resources, Inc. 3,044,294 4 5.11% Bresnan Broadband 900,361 5 1.37% Qwest Corporation 1,124,484 5 1.89% Qwest Corporation 888,773 6 1.35% TRI Touch America, Inc. 500,874 6 0.84% Praxair, Inc. - REC Affiliated 1 841,927 7 1.28% Hyman David L. & Anne Trustees 355,442 7 0.60% Verizon Wireless 394,027 8 0.60% Praxair, Inc. 1 297,971 8 0.50% BRE/SW Big Sky LLC 322,843 9 0.49% Sky West Airlines 295,358 9 0.50% Wal-mart Real Estate Business 310,128 10 0.47% Wal-mart Real Estate Business 206,463 10 0.35% Total Principal Taxpayers 35,232,597 53.68% Total Principal Taxpayers 29,108,956 48.82% All Other Taxpayers 30,397,541 46.32% All Other Taxpayers 30,518,174 51.18% Total 65,630,138 $ 100.00% Total 59,627,130 $ 100.00% Notes: 1 Taxable valuation lies in whole or in part in the Uraban Revitalization District or Tax Increment Financing District. 2 Acquired by Northwestern Energy, LLC in 2002. Data Source: City and County Tax Records 2011 2001 City and County of Butte-Silver Bow, Montana Principal Property Taxpayers Current Year and Ten Years Ago 205 ---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, 3 Amount of Levy Amount of Levy 2002 8,286,848 7,505,277 90.57% 348,000 7,853,277 94.77% 433,571 5.23% 2003 9,145,764 8,383,279 91.66% 454,256 8,837,535 96.63% 308,229 3.37% 2004 10,814,847 10,027,701 92.72% 507,638 10,535,339 97.42% 279,508 2.58% 2005 9,137,671 8,346,991 91.35% 532,136 8,879,127 97.17% 258,544 2.83% 2006 10,693,128 9,591,368 89.70% 662,712 10,254,080 95.89% 439,048 4.11% 2007 13,693,649 12,953,606 94.60% 697,894 13,651,500 99.69% 42,149 0.31% 2008 14,095,937 13,537,503 96.04% 524,801 14,062,304 99.76% 33,633 0.24% 2009 14,771,870 13,554,188 91.76% 1,613,353 15,167,541 102.68% n/a n/a 2010 18,942,264 17,163,977 90.61% 657,720 17,821,697 94.08% 1,120,567 5.92% 2011 17,425,405 17,133,348 98.32% 2,109,788 19,243,136 110.43% n/a n/a Notes: Data Source: - City and County Tax Collection Records Uncollected Taxes 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. 3 Delinquent tax collections are reported in the year collected. Fiscal Year of the Levy Total Collections to Date City and County of Butte-Silver Bow, Montana Property Tax Levies and Collections 1 Last Ten Fiscal Years Collected Within the Total 206 ---PAGE BREAK--- Exhibit XVII General Special Solid Percentage Debt Fiscal Obligation Assessment Capital Notes & Sewer Water Waste Notes & of Personal 2011 Per Year Bonds 3 Bonds Leases Loans Bonds Bonds Bonds Loans Total Income2 Population2 Capita 2002 2,240,000 - 866,372 1,417,650 1,344,390 21,640,000 2,005,000 492,975 30,006,387 3.48% 33,[PHONE REDACTED] 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% 34,234 757 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 207 ---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 2002 2,240,000 10,897 2,229,103 33,431 1,561,131,694 $ 0.14% 67 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 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 208 ---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, 2011 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. 209 ---PAGE BREAK--- Exhibit XX 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2011 Legal Debt Margin Debt limit (2.5% of total assessed value) 27,281,132 $ 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 $ Net debt applicable to limit: 4,204,272 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 Legal debt margin 23,076,860 $ 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 $ As a percentage of debt limit 84.59% 40.49% 44.24% 50.71% 64.74% 69.26% 73.83% 62.04% 71.22% 70.84% 2,448,504,509 $ Debt limit (2.5% of total assessed value) 61,212,613 $ Total bonded debt 18,006,416 Less special assessement bonds (155,000) Total debt applicable to limitation 17,851,416 Total legal debt margin 43,361,197 $ 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 June 30, 2011 210 ---PAGE BREAK--- Less Net Revenue Fiscal Operating Operating Depreciation & Available for Times Year Revenues Expenses Amortization Debt Service Principal Interest Total Coverage 2002 2,247,929 1,549,684 243,191 941,436 110,000 118,225 228,225 4.13 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 3,177,883 3,415,305 652,535 415,113 - - - - 2010 2,712,168 2,181,947 318,325 848,546 - - - - 2011 3,158,051 3,686,852 798,156 269,355 - - - - Less Net Revenue Fiscal Operating Operating Depreciation & Available for Times Year Revenues Expenses Amortization Debt Service Principal Interest Total Coverage 2002 6,710,741 4,984,220 1,515,612 3,242,133 1,170,000 1,093,322 2,263,322 1.43 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 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 211 ---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 2002 33,431 861,938 25,783 30,795 84% 39.5 4,969 5.3% 4.5% 6.0% 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% 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. 212 ---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, 2011 213 ---PAGE BREAK--- Exhibit XXIV Function 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 General Government 223 244 248 256 187 201 195 199 200 207 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 44 46 46 41 41 44 44 44 47 48 Civilians 17 16 17 21 21 20 21 21 22 21 Detention Officers 17 18 18 25 26 27 27 27 27 28 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 31 30 30 32 32 32 31 30 Civilians 1 1 1 1 1 1 1 1 1 1 Highways and Streets Engineering 2 2 2 2 2 2 2 2 2 3 Maintenance 21 21 20 17 17 17 21 24 24 21 Sanitation 6 6 5 5 5 5 6 6 6 8 Culture and Recreation 8 8 8 7 7 10 8 8 8 8 Water 44 45 44 46 44 41 45 45 50 45 Sewer 27 27 27 27 27 25 28 28 26 27 Total 445 469 471 482 412 429 434 441 448 451 Percentage Change From Prior Year -6.3% 5.4% 0.4% 2.3% -14.5% 4.1% 1.2% 1.6% # 1.6% 0.7% As of June 30, 2011 City and County of Butte-Silver Bow, Montana Full-time Equivalent Employees by Function Last Ten Fiscal Years 214 ---PAGE BREAK--- Exhibit XXV Function 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Police Physical arrests 2,594 1,641 2,065 1,837 1,080 2,414 2,346 2,976 3,839 3,577 Parking violations 7,043 13,102 14,480 12,527 13,886 15,288 20,695 14,769 7,335 9,576 Traffic violations 4,228 5,540 5,502 3,958 2,589 4,273 5,195 5,401 4,350 3,848 Fire Inspections 155 161 149 152 168 125 117 132 177 185 Highway and streets Street resurfacing (miles) 2.9 2.9 2.9 2.9 2.9 4.0 3.5 4 6.8 6.1 Potholes repaired 1,400 1,400 1,400 1,400 1,400 1,500 2300 2500 2500 2800 Sanitation Refuse collected (tons/day) 188.13 178.20 190.18 238.30 207.77 219.93 232.77 233.43 176.59 207.34 Recyclables collected (tons/day) 22.32 21.55 22.27 25.37 25.31 23.49 27.26 24.56 20.92 21.43 Water Connections 11,969 11,962 11,950 11,953 11,983 11,971 12,273 12,313 12,358 12,399 Water main breaks 247 261 228 240 258 200 268 284 240 232 Average daily consumption (thousands of gallons) 6,740 7,310 6,950 7,340 8,280 7,590 7,500 6,653 5,874 6,559 Wastewater Average daily sewage treatment (million of gallons/day) 3.75 3.33 3.19 3.19 3.17 3.60 3.56 3.21 3.58 3.94 Data Source: Various City/County departments Fiscal Year Ended June 30, 2011 City and County of Butte-Silver Bow, Montana Operating Indicators by Function/Program Last Ten Fiscal Years 215 ---PAGE BREAK--- Exhibit XXVI Function 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Public Safety Police: Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 25 25 25 23 24 24 25 25 26 34 Fire stations 11 11 11 11 11 11 11 11 11 11 Sanitation Collection trucks 6 6 6 7 8 8 10 10 10 16 Highways and streets Streets (miles) 710 710 715 715 715 715 715 715 715 715 Streetlights 3,200 3,230 3,234 3,241 3,258 3,311 3,326 3,327 3,330 3,329 Traffic signals 39 39 40 40 40 40 40 40 40 48 Culture and recreation Parks acreage 3,897 3,897 3,897 3,895 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 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 1,017 1,024 1,026 1,026 1,030 1,030 1,050 1,078 1,185 1,197 Maximum daily capacity (millions of gallons) 23 23 23 23 23 23 23 23 23 23 Sewer Sanitary sewers (miles) 202.00 202.40 202.80 203.20 203.60 203.60 203.60 203.60 170.80 176.74 Storm sewers (miles) 50.20 50.20 50.20 50.30 50.30 50.30 50.30 50.30 69.61 69.61 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, 2011 216 ---PAGE BREAK--- ---PAGE BREAK--- Comprehensive Annual Financial Report and Audit City and County of Butte-Silver Bow, State of Montana For Fiscal Year Ended June 30, 2011 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