Document Butte_doc_8189ebe7fc

City and County Of Butte-Silver Bow, State of Montana Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 2010 ---PAGE BREAK--- ---PAGE BREAK--- City and County of Butte-Silver Bow, State of Montana Comprehensive Annual Financial Report For Fiscal Year Ended June 30, 2010 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, 2010 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 iv ---PAGE BREAK--- Page Ladder Truck Bond 158 Archives 159 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 Civic Center Renovation 169 Detention Center & LEA Administrative Project 170 Combining Statement of Net Assets - Nonmajor Enterprise 171 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Nonmajor Enterprise 172 Combining Statement of Cash Flows - Nonmajor Enterprise 173 Combining Statement of Cash Flows - Nonmajor Proprietary 174 Combining Statement of Net Assets - Internal Services 176 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets - Internal Service 177 Combining Statement of Cash Flows - Internal Service 178 Combining Statement of Fiduciary Net Assets Trust 181 Combining Statement of Changes in Fiduciary Net Assets - Trust 182 Statement of Changes in Fiduciary Assets and Liabilities.……………………………………. 183 STATISTICAL SECTION 188 v ---PAGE BREAK--- ---PAGE BREAK--- Introductory Section ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---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 Personnel 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, 2010 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 Joseph E..Lee Council Member-District No.3 John P. Morgan Council Member-District No.4 Terry L. Schultz Council Member-District No.5 Charlie O’Leary Council Member-District No.6 Wally Frasz Council Member-District No.7 Mark Moodry Council Member-District No.8 Ristene Hall Council Member-District No.9 Dan Foley Council Member-District No.10 Mike Sheehy 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--- Financial Section ---PAGE BREAK--- ---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, 2010 11 MANAGEMENT’S DISCUSSION AND ANALYSIS Within this section of the City and County of Butte-Silver Bow, Montana (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, 2010. 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 $170,925,226 (net assets) for the fiscal year reported. • Total net assets are comprised of the following: Capital assets, net of related debt, is $102,928,389 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 $12,063,380 are restricted by constraints imposed from outside the City and County such as debt covenants, grantors, laws, or regulations. Unrestricted net assets of $55,933,457 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 $50,596,183 this year. This compares to the prior year ending fund balance of $55,114,888 showing a decrease of $4,518,706 during the current fiscal year. Unreserved fund balance of $34,695,303 at June 30, 2010 shows a $6,284,636 decrease from the prior year. • At the end of the current fiscal year, unreserved fund balance for the general fund was $4,606,908, or 21.2% of total general fund expenditures in fiscal year 2010. The percentage at June 30, 2009 was 20.7%, or 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, 2010 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, 2010 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 39-41 of 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, 2010 14 Financial Analysis of the City and County as a Whole The City and County’s net assets at fiscal year-end are $170,925,226. The following table provides a summary of the City and County’s net assets comparing June 30, 2010 with June 30, 2009: 2010 2009 2010 2009 2010 2009 2010 2009 Assets: Current assets 59,979 $ 61,952 $ 16,930 $ 18,556 $ 76,909 $ 80,508 $ 34% 34% Non-current assets 82,635 77,797 68,317 61,727 150,952 139,524 66% 66% Total assets 142,614 139,749 85,247 80,283 227,861 220,032 100% 100% Liabilities: Current liabilities 10,418 8,477 4,720 3,306 15,138 11,783 27% 27% Long-term liabilities 35,175 37,922 6,623 7,788 41,798 45,710 73% 73% Total liabilities 45,593 46,399 11,343 11,094 56,936 57,493 100% 100% Net assets: Invested in capital assets, net of debt 47,028 38,442 55,900 50,182 102,928 88,624 60% 60% Restricted 9,160 8,446 2,904 3,392 12,064 11,838 7% 7% Unrestricted 40,833 46,462 15,100 15,615 55,933 62,077 38% 38% Total net assets 97,021 $ 93,350 $ 73,904 $ 69,189 $ 170,925 $ 162,539 $ 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 5.8 to 1 (as compared to the restated 7.3 to 1 at June 30, 2009) and 3.6 to 1 (as compared to 5.6 to 1 at June 30, 2009) for business type activities. For the City and County overall, the current ratio is 5.1 to 1 (as compared to 7 to 1 at June 30, 2009). 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 $3,670,669 in this fiscal year as compared to a $2,797,875 increase in fiscal year 2009. Net assets increased $4,175,702 in fiscal year 2010 as compared to an increase of $4,544,073 for business-type activities in fiscal year 2009. The City and County's overall financial position improved during fiscal year 2010 by $8,386,372. Note that approximately 57.8% of the governmental activities’ total assets are tied up in capital as compared to 55% at June 30, 2009. 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 75.4% of its total assets and 75.6% 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, 2010 15 The following chart reports the total net asset balances from fiscal year 2003 - 2010. $74,526,219 $82,863,923 $89,092,644 $99,138,998 $147,841,932 $155,541,003 $162,538,854 $170,925,226 $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 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal Year Total Net Assets Note that over the last seven 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, 2010 16 The following table presents the details of the changes in net assets for fiscal years 2010 and 2009. Restated Restated 2010 2009 2010 2009 2010 2009 Revenues: Program: Charges for services & fines 6,757 $ 6,757 $ 13,373 $ 13,457 $ 20,130 $ 20,214 $ Operating grants 16,455 16,605 5,118 4,419 21,573 21,024 General: Taxes 26,603 23,626 - - 26,603 23,626 Investment earnings 396 938 50 258 446 1,196 Other 1,085 873 231 215 1,316 1,088 Total revenues 51,296 48,799 18,772 18,349 70,068 67,148 Program expenses: General government 12,091 10,866 - - 12,091 10,866 Public safety 14,294 14,106 - - 14,294 14,106 Public works 6,871 6,602 - - 6,871 6,602 Public health 4,531 4,141 - - 4,531 4,141 Social and economic services 237 237 - - 237 237 Culture and recreation 2,993 2,815 - - 2,993 2,815 Housing and community development 4,782 5,272 - - 4,782 5,272 Interest 2,072 2,168 - - 2,072 2,168 Water Utility Division - - 7,149 7,106 7,149 7,106 Metro Sewer Operations - - 3,459 3,415 3,459 3,415 Solid Waste - - 2,182 2,027 2,182 2,027 Other enterprise activities - - 1,021 1,051 1,021 1,051 Total expenses 47,871 46,207 13,811 13,599 61,682 59,806 Excess (deficiency) 3,425 2,592 4,961 4,750 8,386 7,342 Transfers 246 206 (246) (206) - - Change in net assets 3,671 2,798 4,715 4,544 8,386 7,342 Beginning net assets 93,350 90,896 69,189 64,645 162,539 155,541 Prior period adjustment - (344) - - - (344) Ending net assets 97,021 $ 93,350 $ 73,904 $ 69,189 $ 170,925 $ 162,539 $ 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, 2010 17 GOVERNMENTAL REVENUES The City and County is heavily reliant on property taxes to support governmental operations. Property taxes equal 51.2% of the revenues for governmental activities, as compared to 46.4% in fiscal year 2009. Because of the City and County’s healthy financial position, we have been able to earn $396 thousand in investment earnings to support governmental activities. Also, note that program revenues cover 51.5% of governmental operating expenses as compared to 50.6% in fiscal year 2009. These are extremely high percentages. This means that the government’s taxpayers and the City and County’s other general revenues fund only 48.5% of the governmental activities in fiscal year 2010. GOVERNMENTAL FUNCTIONAL EXPENSES Public safety costs comprise 29.9% of the total governmental expenses, as compared to 30.5% in fiscal year 2009. These public safety costs increased 9.6% or by approximately $188,000 at the government-wide financial reporting level. General government expenses makes up 25.3% of the total governmental expenses, as compared to 23.5% in fiscal year 2009. Public works is the third largest costly function, totaling over $6.8 million or 14.4% of total expenses the same 14.3% in fiscal year 2009. The following table presents the cost of each of the City and County’s programs, including the net costs total cost less revenues generated by the activities). The net costs illustrate the financial burden that was placed on the City and County’s taxpayers by each of these functions. Total Cost Net Cost Total Cost Net Cost of Services of Services of Services of Services General government 12,091,322 $ 292,667 $ 10,866,213 $ (1,385,609) $ Public safety 14,293,718 10,688,831 14,105,614 10,919,859 Public works 6,870,507 3,499,678 6,601,992 3,608,687 Public health 4,530,875 1,192,653 4,141,100 1,048,768 Social and economic services 237,155 201,667 236,774 202,333 Culture and recreation 2,993,172 2,075,260 2,815,238 2,152,665 Housing and community development 4,781,874 4,635,837 5,272,460 4,130,710 Interest 2,072,750 2,072,750 2,167,905 2,167,905 Total 47,871,373 $ 24,659,343 $ 46,207,296 $ 22,845,318 $ Governmental Activities Fiscal Year 2010 Fiscal Year 2009 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 43.3% of the total amount as compared to 45% in fiscal year 2009. BUSINESS-TYPE ACTIVITIES In total, the enterprise funds reported a $4,715,702 increase in net assets as compared to $4,544,073 in fiscal year 2009. Operating income in fiscal year 2010 of $76,803 is down $499,594 or 8.7% from fiscal year 2009. Operating revenue is down $59,834 from fiscal year 2009 or just 4/10th of Operating expenses were $439,760 more than fiscal year 2009, or 3.4%. The explanations for these changes are highlighted in the proprietary fund section below. ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2010 18 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 $50,596,183. Of this year-end total, $34,695,303 is unreserved indicating availability for continuing City and County service requirements. This amount compares to $40,979,939 at June 30, 2009. Legally restricted fund balances the reserved fund balances) include $3,676,262 committed to service debt, $1,066,940 set aside for an accumulation of reserve pursuant to state law, and $4,416,197 committed to economic development. In addition, $4,872,011 is not available to spend as it is tied up in long- term loans; $1,722,177 is set aside for self-funded employee health insurance and $147,293 for code enforcement activities. The total ending fund balances of governmental funds show a increase of $4,518,706 or 8.2% over the prior year. A large portion of this increase relates to the Archives fund or $4,132,182. 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 increased by $136,673 or just 2.2%. In fiscal year 2009, the fund balance decreased by $93,705. The general fund’s ending unreserved fund balance of $4,606,908 is considered adequate, representing the equivalent of 20.7% of annual expenditures. This percentage compares to 21.2% at June 30, 2009. 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 increased $1,644,702 or 8.1% over fiscal year 2009. In fiscal year 2009, total revenues increased 5.3%. Real property tax revenues increased $1,013,676 or 14.5% above the prior year. This increase relates to combination of increased real property values and increased appropriations in the tax supported funds. Charges for services increased $49,332 over fiscal year 2009. Investment earnings were down $55,417 from fiscal year 2009. This decrease relates to lower investment interest rates and fewer resources available for investment. Fines and forfeitures increased $84,309 or 19.3% due to increased fine collections. Most other general fund revenues were comparable to fiscal year 2009 amounts. The expenditures side reports an increase of $1,179,096 or 6.2% over the prior year. Last year the expenditures increased $1,179,096 or 6.2% over the June 30, 2008 amounts. General government expenditures were approximately $9 million, for an increase of $973,637 or 12.1%. This increase is due in large part to increased health care costs ($675,000) and salary adjustments to move employees to the mid-level of the market. Most other functional expenditures were similar to those amounts reported in fiscal year 2009. 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 (other than 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 Ramsay. ---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, 2010 19 The revenues consist primarily of property taxes totaling $5,670,490. Property taxes were $425,025 or 7.8% above those of fiscal year 2009. This increase primarily relates to REC Silicon property improvements and to the beginning of operations at Seacast. Before transfers out, this fund incurred expenditures of $3,184,440. The majority of these expenditures relate to the final construction of the Sea Cast Building, as well as, the construction of the Aerotech Rocket testing facility. Additionally, engineering has begun on a waste water line that will run approximately 7 miles through the TIFID into the Waste Water Treatment Facility. This fund transferred the majority of their revenues, $3,985,418 to the ASiMI bond fund to retire related revenue bonds. The fund balance in this fund decreased $1,314,182 because of the expenditures and the above transfer. In addition, this fund transferred $42,920 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 $8,870,929. 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 maintains 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 2010 decreased $250,772 or 3.5% from the prior fiscal year. Operating expenses were 270,967 or 4.1% more than fiscal year 2009. Most of which relates to increased depreciation expense for waterline replacement, transmission line replacement, and replacement of the Big Hole diversion dam. Because of these changes, the operating income for this fund is $619,069 or 110.9% less than fiscal year 2009. This fund reported intergovernmental revenue of over $4.72 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. Typically, these resources are spent on water line replacement. In addition, the Big Hole diversion dam was also replaced utilizing funds from both NRD and the Army Corp of Engineers. The unrestricted net assets of this fund increased over $4.3 million over the June 30, 2009 amount, which now is approximately $2.1 million. Metro Sewer Operations – For the 5th year in a row, the operating revenues in fiscal year 2010 were very close to the prior fiscal year amounts. Operating expenses were almost identical to the 2009 amounts as well. As a result, this fund continued reporting an operating loss, or $274,471. However, because of investment earnings and operating grants, the fund reported a total increase in net assets of $190,401 before transfers out of $150,000. At June 30, 2010, this fund reported $14,861,895 in net assets. Solid Waste Program – The operating revenue in fiscal year 2010 was up $214,700 or 8.6% over the prior fiscal year. The landfill usage has increased. Operating expenses were up $154,717 or 7.6% over fiscal year 2009. As a result, operating income was up $59,983 or 12.8%. Total net assets increased $491,117 over fiscal year 2009. General Fund Budgetary Highlights The total revenue budget was amended upward just $47,742 or 2/10th of 1% and the total expenditure appropriation was amended upward by $124,642 or about ½ of In total, revenues realized were $436,637 below projected revenues. Real and personal property taxes were $303,487 above the final budget amount. This increase relates to unanticipated value growth. The motor vehicle taxes were below budget by $228,485. ---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, 2010 20 Intergovernmental revenue was $240,352 below the final budget or 4.6%. This difference relates to a variety of contracts that were below the revenue budget for this source. In total, 98% of the final revenue budget was recognized. On the expenditure side, only 92.2% of the budget was expended, below the under spending in fiscal year 2009. The general government function was $729,362 below the estimated appropriation. Public safety costs were $665,802 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, 2010, was $82,431,155 and $64,254,871 respectively. The net investment in the governmental activities increased by approximately $4.9 million and the business-type activities increased approximately $5 million as compared to the June 30, 2009 balances. See Note 3-D for additional information about changes in capital assets during the fiscal year and outstanding at the end of the year. The following table provides a summary of capital assets at June 30, 2010 and 2009. 2010 2009 2010 2009 2010 2009 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 6,621,701 2,235,210 2,429,518 3,595,594 9,051,219 5,830,804 Total non-depreciable 10,555,475 6,168,984 3,729,453 4,895,529 14,284,928 11,064,513 Depreciable assets: Buildings 28,014,335 26,144,239 27,633,642 27,624,131 55,647,977 53,768,370 Improvements other than buildings 9,060,490 7,009,115 70,340,883 60,968,380 79,401,373 67,977,495 Machinery and equipment 18,892,734 18,303,820 9,588,766 9,165,900 28,481,500 27,469,720 Infrastructure 62,698,341 62,251,338 - - 62,698,341 62,251,338 Total depreciable assets 118,665,900 113,708,512 107,563,291 97,758,411 226,229,191 211,466,923 Less accumulated depreciation 46,790,220 42,393,778 47,037,873 43,463,907 93,828,093 85,857,685 Book value - depreciable assets 71,875,680 71,314,734 60,525,418 54,294,504 132,401,098 125,609,238 Percentage depreciated 39% 37% 44% 44% 41% 41% Total capital assets net 82,431,155 $ 77,483,718 $ 64,254,871 $ 59,190,033 $ 146,686,026 $ 136,673,751 $ Governmental Activities Business Activities Total Capital Assets At June 30, 2010, the depreciable capital assets for governmental activities were 39% depreciated. This amount is just 2% more than the June 30, 2009 percentage. With the City and County’s business type activities, 44% of the asset values were depreciated at June 30, 2010 compared to 44% at June 30, 2009. In both instances, the minimal change in the percentage depreciated is a positive indicator. ---PAGE BREAK--- MANAGEMENT'S DISCUSSION AND ANALYSIS (Unaudited) City and County of Butte-Silver Bow, Montana As of and For the Year Ended June 30, 2010 21 The major increase in the governmental activities capital asset costs relate to: • $4.4 million in construction in progress for the archives building project • $1.9 for improvements other than buildings for Main Street Overlay Project, Splash Pad at Clark Park, Courthouse Elevator Renovation Project, Lighting Retrofit Project • $589,000 for machinery and equipment for a street sweeper and mobile computers for law enforcement • $447,000 for infrastructure for Greenway Creek restoration & culverts The major increase in the business-type activities capital assets “improvements other than buildings” includes: • Metro Sewer Waste Water Treatment Plant Upgrades - $2 million • Big Hole Transmission Line - $2.4 million • Water Main Replacement - $2.5 million Long-term Debt At the end of the fiscal year, the City and County had total long-term debt outstanding of $47,992,687. Of this amount, $19,800,050 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 $14,935,000 supported by tax increment financing. The following schedule includes the June 30, 2010 and 2009 outstanding long-term debt. Outstanding Borrowings % Change Restated Restated 2010 2009 2010 2009 2010 2009 General obligation bonds 18,811,630 $ 19,686,844 $ - $ - $ 18,811,630 $ 19,686,844 $ -4.4% Tax increment debt 14,935,000 17,450,000 - - 14,935,000 17,450,000 -14.4% Revenue bonds - - 8,752,100 9,525,000 8,752,100 9,525,000 -8.1% General obligation notes 988,420 1,256,492 - - 988,420 1,256,492 -21.3% SID bonds 200,000 240,000 - - 200,000 240,000 100.0% Capital leases 354,120 386,274 - - 354,120 386,274 -8.3% Post closure - - 235,108 210,374 235,108 210,374 11.8% Compensated absences 3,067,129 2,695,956 649,180 591,252 3,716,309 3,287,208 13.1% Total 38,356,299 $ 41,715,566 $ 9,636,388 $ 10,326,626 $ 47,992,687 $ 52,042,192 $ -7.8% Totals Governmental Activities Business-type Activities During this year, the City and County used general obligation bond proceeds for the construction of an archives building. 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. ---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, 2010 22 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 not affected 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 a significant drop in the price of copper, Montana Resources, Inc. continues operations and remains a major employer in the area. The City and County serves as the regional trade and medical center for southwestern Montana and it is unique from a transportation infrastructure standpoint in that it is the only location in the state that is at the intersection of the interstate highway system (I-90 and I-15) and is the only area in the state that is served by two railroads, the Union Pacific and Burlington Northern & Santa Fe. Contacting the City and County’s Financial Management This financial report is designed to provide a general overview of the City and County’s finances, comply with finance- related laws and regulations, and demonstrate the City and County’s commitment to public accountability. If you have questions about this report or would like to request additional information, contact the City and County’s Finance and Budget Director at the Butte-Silver Bow Courthouse, Butte, Montana or call 406/497-6320. ---PAGE BREAK--- Basic Financial Statements 23 ---PAGE BREAK--- 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) 14,587,995 $ 6,148,973 $ 20,736,968 $ 1,346,568 $ Investments 27,600,727 6,733,854 34,334,581 - Receivables (Note 3B): Accounts 1,900,120 2,500,448 4,400,568 145,914 Property taxes 2,661,000 - 2,661,000 22,270 Special assessments 538,367 1,213,170 1,751,537 - Notes 4,891,098 - 4,891,098 418,409 Interfund (287,122) 287,122 - - Primary government - - - 74,984 Inventory (Note 1-E-4) - 6,555 6,555 2,560 Prepaid items (Note I-E-5) - 12,261 12,261 12,853 Restricted assets (Note 1-E-6) 8,087,191 136,106 8,223,297 - Total Current Assets 59,979,376 17,038,489 77,017,865 2,023,558 Non-Current Assets Notes receivable Restricted investments - 3,931,543 3,931,543 - Capital assets (Note 3C) Nondepreciable 6,266,989 3,729,453 9,996,442 809,414 Depreciable, net 76,164,166 60,525,418 136,689,584 3,436,626 Other assets - deferred bond issuance costs 203,787 130,729 334,516 - Total Non-Current Assets 82,634,942 68,317,143 150,952,086 4,246,040 Total Assets 142,614,318 85,355,632 227,969,950 6,269,598 Liabilities Current Liabilities Vouchers payable 3,424,326 1,197,514 4,621,840 - Accounts payable 284,217 110,908 395,125 165,382 Contracts payable - 51,672 51,672 - Accrued wages and benefits payable 1,299,307 300,980 1,600,287 29,754 Performance bonds payable 41,554 - 41,554 - Accrued interest payable 1,018,697 42,601 1,061,298 Unearned revenue 227,779 372,283 600,062 7,588 Revenue bonds payable - 2,452,100 2,452,100 - Closure and postclosure care payable - 4,702 4,702 - Compensated absences payable 1,003,040 64,918 1,067,958 43,837 Claims payable 827,727 - 827,727 - General obligation bonds payable 960,214 - 960,214 - General obligation notes payable 172,911 - 172,911 - Tax increment bonds payable 1,080,000 - 1,080,000 - Special improvement districts bonds payable 45,000 - 45,000 - Capital leases payable 33,897 - 33,897 - Total Current Liabilities 10,418,669 4,597,678 15,016,347 246,561 Long-Term Liabilities (net of current portion): Customer deposits - 115,387 115,387 - Accrued interest payable - customer deposits - 20,719 20,719 - Closure and postclosure care payable - 230,406 230,406 - Revenue bonds payable - 5,902,737 5,902,737 - Compensated absences payable 2,064,088 584,262 2,648,350 43,934 General obligation bonds payable 17,965,046 - 17,965,046 - General obligation notes payable 815,509 - 815,509 - Tax increment bonds payable 13,855,000 - 13,855,000 - Special improvement districts bonds payable 155,000 - 155,000 - Capital leases payable 320,223 - 320,223 - Total Long-Term Liabilities 35,174,866 6,853,511 42,028,377 43,934 Total Liabilities 45,593,535 11,451,189 57,044,724 290,495 Net Assets Invested in capital assets, net of related debt (Note 3J) 47,028,355 55,900,034 102,928,389 4,246,040 Restricted for: Economic development - ceased mining operations 4,416,197 - 4,416,197 Debt service - bond restrictions 3,676,262 2,903,981 6,580,243 - Accumulation authorized by law 1,066,940 - 1,066,940 - Unrestricted 40,833,029 15,100,428 55,933,457 1,733,063 Total Net Assets 97,020,783 $ 73,904,443 $ 170,925,226 $ 5,979,103 $ City and County of Butte-Silver Bow, Montana June 30, 2010 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 12,091,322 $ 4,426,863 $ 7,371,792 $ - $ (292,667) $ - $ (292,667) $ - $ Public safety 14,293,718 1,089,915 2,514,972 - (10,688,831) - (10,688,831) - Public works 6,870,507 114,812 2,624,443 - (4,131,252) - (4,131,252) - Public health 4,530,875 566,563 2,771,659 - (1,192,653) - (1,192,653) - Social and economic services 237,155 - 35,488 - (201,667) - (201,667) - Cultural and recreation 2,993,172 558,501 359,411 - (2,075,260) - (2,075,260) - Housing and community development 4,781,874 - 146,037 - (4,635,837) - (4,635,837) - Interest 2,072,750 - - - (2,072,750) - (2,072,750) - Total Governmental Activities 47,871,373 6,756,654 15,823,802 - (25,290,917) - (25,290,917) - Business-Type Activities: Community facilties 84,988 - - - - (84,988) (84,988) - Home health 455,141 391,260 - - - (63,881) (63,881) - Small business incubator 159,511 92,619 - - - (66,892) (66,892) - Water utility division 7,148,937 6,802,722 4,667,124 - - 4,320,909 4,320,909 - Metro sewer operations 3,458,844 3,144,573 450,752 - - 136,481 136,481 - Solid waste 2,181,947 2,698,390 - - - 516,443 516,443 - Silver lake water system 228,506 243,873 - - - 15,367 15,367 - MR infrastructure project 92,681 - - - - (92,681) (92,681) - Total Business-Type Activities 13,810,555 13,373,437 5,117,876 - - 4,680,758 4,680,758 - Total - Primary Government 61,681,928 $ 20,130,091 $ 20,941,678 $ - $ (25,290,917) 4,680,758 (20,610,159) - Component Units Port of Montana Port Authority 1,124,875 $ 1,262,960 $ - $ - $ - - - 138,085 General Revenues Property taxes levied for general purposes 26,272,299 - 26,272,299 188,100 Franchise taxes 330,218 - 330,218 Motor fuel taxes 631,574 - 631,574 Gain on sale of capital assets - - - (2,795) Investment earnings 396,421 50,062 446,483 26,627 Miscellaneous 1,084,810 231,147 1,315,957 370,426 Transfers 246,265 (246,265) - - Total General Revenues and Transfers 28,961,587 34,944 28,996,531 582,358 Change in Net Assets 3,670,669 4,715,702 8,386,372 720,443 Net Assets Beginning of Year, as Restated 93,350,113 69,188,741 162,538,854 5,258,660 Net Assets End of Year 97,020,783 $ 73,904,443 $ 170,925,226 $ 5,979,103 $ 97,020,783 $ 73,904,443 $ 170,925,226 $ 5,979,103 $ 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, 2010 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 2,021,215 $ 1,312,858 $ 10,217,831 $ 13,551,904 $ Investments 4,582,243 8,021,537 14,996,947 27,600,727 Restricted assets - - 8,087,191 8,087,191 Receivables: Accounts 358,855 - 1,535,718 1,894,573 Property taxes 1,224,828 - 1,436,172 2,661,000 Special assessments 35 194 538,138 538,367 Loans - - 4,891,098 4,891,098 Interfund 1,091,959 - 380,000 1,471,959 Total Assets 9,279,135 $ 9,334,589 $ 42,083,095 $ 60,696,819 $ Liabilities and Fund Balances Liabilities Vouchers payable 770,066 $ 459,628 $ 2,122,266 $ 3,351,960 $ Accounts payable 14,916 - 269,301 284,217 Accrued salaries and benefits 709,647 3,838 523,382 1,236,867 Performance bonds payable 20,570 - 20,984 41,554 Interfund payable - - 1,759,081 1,759,081 Deferred revenue 1,287,558 194 2,139,205 3,426,957 Total Liabilities 2,802,757 463,660 6,834,219 10,100,636 Fund Balances Reserved for: Debt service - - 3,676,262 3,676,262 Long-term notes and loans receivable - - 4,872,011 4,872,011 Economic development - ceased mining operation - - 4,416,197 4,416,197 Accumulation of reserve authorized by state law - - 1,066,940 1,066,940 Self-funded employee health insurance plan 1,722,177 - - 1,722,177 Code enforcement activities 147,293 - - 147,293 Unreserved: Undesignated, reported in: General fund 4,606,908 - - 4,606,908 Special revenue funds - 8,870,929 15,897,068 24,767,997 Capital projects funds - - 5,320,398 5,320,398 Total Fund Balances 6,476,378 8,870,929 35,248,876 50,596,183 Total Liabilities and Fund Balances 9,279,135 $ 9,334,589 $ 42,083,095 $ 60,696,819 $ See accompanying notes to the basic financial statements Balance Sheet City and County of Butte-Silver Bow, Montana June 30, 2010 Governmental Funds 28 ---PAGE BREAK--- The Government-wide Statement of Net Assets For the Fiscal Year Ended June 30, 2010 Total Governmental Fund Balances 50,596,183 $ 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 124,323,577 $ Less accumulated depreciation (43,327,688) 80,995,889 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. 3,199,178 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. 2,214,676 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 (1,471,959) $ Interfund payables 1,471,959 - Liabilities not due and payable in the current period and therefore are not reported in the governmental fund balance sheets but are reported on the government-wide statement of net assets. Exclusive of internal service funds' long-term debt. Long-term debt (35,402,800) $ Compensated absences (2,939,706) Claims (827,727) Accrued interest on long-term debt (1,018,697) (40,188,930) Bond issuance costs are reported as expenditures in the governmental fund financial statements but capitalized on the government-wide statement of net assets. 203,787 Net Assets of Governmental Activities 97,020,783 $ See accompanying notes to the basic financial statements 97,020,783 $ 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 10,787,992 $ 5,670,490 $ 9,039,337 $ 25,497,819 $ Special assessments - - 1,375,779 1,375,779 Licenses and permits 928,139 - - 928,139 Intergovernmental 4,933,495 73 8,574,700 13,508,268 Charges for services 4,516,575 2,100 964,761 5,483,436 Fines and forfeitures 520,570 - 154,727 675,297 Private grants and donations 28,665 - 1,655,311 1,683,976 Investment earnings 82,421 29,769 284,231 396,421 Miscellaneous 70,282 211,164 799,410 1,080,856 Total Revenues 21,868,139 5,913,596 22,848,256 50,629,991 Expenditures Current: General government 9,008,576 - 2,449,998 11,458,574 Public safety 8,641,026 - 4,356,497 12,997,523 Public works 415,208 - 5,463,468 5,878,676 Public health 1,165,315 - 3,233,412 4,398,727 Social and economic services 86,331 - 146,616 232,947 Cultural and recreation 1,870,223 - 952,822 2,823,045 Housing and community development - 1,257,965 1,379,687 2,637,652 Capital Outlay 477,776 1,926,475 6,705,515 9,109,766 Debt Service: Principal 32,154 - 3,698,286 3,730,440 Interest 20,242 - 2,112,370 2,132,612 Total Expenditures 21,716,851 3,184,440 30,498,671 55,399,962 Excess (Deficiency) of Revenues Over (Under) Expenditures 151,288 2,729,156 (7,650,415) (4,769,971) Other Financing Sources (Uses) Insurance proceeds - - 3,000 3,000 Proceeds from the sale of capital assets 2,000 - - 2,000 Transfers in 404,370 - 6,575,306 6,979,676 Transfers out (420,985) (4,043,338) (2,269,088) (6,733,411) Total Other Financing Sources (Uses) (14,615) (4,043,338) 4,309,218 251,265 Net Change in Fund Balances 136,673 (1,314,182) (3,341,197) (4,518,706) Fund Balances Beginning of Year 6,339,705 10,185,111 38,590,073 55,114,889 Fund Balances End of Year 6,476,378 $ 8,870,929 $ 35,248,876 $ 50,596,183 $ 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, 2010 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: (4,518,706) $ 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 (4,259,451) $ Capital outlay 9,289,055 5,029,604 The book value of capital assets sold are reported on the government wide statement of activities but not reported in the governmental funds. (48,108) 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 @ 6/30/09 (2,538,231) $ Balance @ 6/30/10 3,199,178 660,947 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. - 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. 3,730,440 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 @ 6/30/09 1,084,174 $ Balance @ 6/30/10 (1,018,697) 65,477 Compensated absences 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 @ 6/30/09 2,590,442 $ Balance @ 6/30/10 (2,939,706) (349,264) 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. Restated balance @ 6/30/09 313,870 $ Balance @ 6/30/10 (827,727) (513,857) Amortization of debt issuance costs and debt premiums are not reported at the fund level but are reported in the government wide statement of activities. (5,615) 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. (380,249) 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 (6,718,411) $ Transfers out 6,718,411 - Change In Net Assets Of Governmental Activities 3,670,669 $ See accompanying notes to the basic financial statements 3,670,669 $ For the Fiscal Year Ended June 30, 2010 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 9,826,181 $ 9,826,181 $ 9,376,111 $ (450,070) $ Personal property - - 209,817 209,817 Motor vehicle 1,150,000 1,150,000 1,140,460 (9,540) Tax title and property tax sale - - 61,604 61,604 Total Taxes 10,976,181 10,976,181 10,787,992 (188,189) Licenses and permits 874,942 874,942 928,139 53,197 Intergovernmental 5,126,105 5,173,847 4,933,495 (240,352) Charges for services 1,175,806 1,175,806 1,181,838 6,032 Fines and forfeits 461,500 461,500 520,570 59,070 City/County and employee health insurance contributions 3,375,000 3,375,000 3,295,629 (79,371) Investment earnings 140,000 140,000 82,421 (57,579) Private grants and contributions 50,000 50,000 28,665 (21,335) Rental 36,500 36,500 39,108 2,608 Miscellaneous 41,000 41,000 70,282 29,282 Total Revenues 22,257,034 22,304,776 21,868,139 (436,637) Expenditures: Current: General government 9,580,076 9,737,938 9,008,576 729,362 Public safety 9,367,448 9,306,828 8,641,026 665,802 Public works 426,607 446,149 415,208 30,941 Public health 1,243,440 1,243,440 1,165,315 78,125 Social and economic services 105,795 105,795 86,331 19,464 Cultural and recreation 2,082,780 2,083,966 1,870,223 213,743 Capital Outlay 558,482 565,154 477,776 87,378 Debt Service Principal 32,154 32,154 32,154 - Interest 20,242 20,242 20,242 - Total Expenditures 23,417,024 23,541,666 21,716,851 1,824,815 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,159,990) (1,236,890) 151,288 1,388,178 (Continued) For the Fiscal Year Ended June 30, 2010 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 - - 2,000 2,000 Transfers in: District Court - 55,000 55,000 - 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 42,920 42,920 42,920 - Uptown Revitalization Agency fund 21,450 21,450 21,450 - Transfers out: Public Archives fund (144,250) (144,250) (144,250) - Community development fund (96,113) (96,113) (96,113) - Belmont Senior fund (95,000) (95,000) (95,000) - Small Business Incubator fund (38,735) (38,735) (38,735) - Crime Control fund (8,750) (8,750) (8,750) - Total Other Financing Sources (Uses) (33,478) 21,522 23,522 2,000 Net Change in Fund Balances (1,193,468) $ (1,215,368) $ 174,810 1,390,178 $ Fund Balances Beginning of Year 6,339,705 Fund Balances End of Year 6,514,515 $ 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 5,351,331 $ 5,351,331 $ 5,670,490 $ 319,159 $ Intergovernmental 110 110 73 (37) Rent 2,100 2,100 2,100 - Investment earnings 200,000 200,000 29,769 (170,231) Miscellaneous 50,000 50,000 211,164 161,164 Total Revenues 5,603,541 5,603,541 5,913,596 310,055 Expenditures Current: Housing and community development 1,937,050 1,937,050 1,257,965 679,085 Capital Outlay 10,500,000 10,500,000 1,926,475 8,573,525 Total Expenditures 12,437,050 12,437,050 3,184,440 9,252,610 Excess (Deficiency) of Revenues Over (Under) Expenditures (6,833,509) (6,833,509) 2,729,156 9,562,665 Other Financing (Uses) Transfers out: General fund (42,920) (42,920) (42,920) - ASiMI bond fund (3,695,386) (3,695,386) (3,985,418) (290,032) Small business incubator fund (15,000) (15,000) (15,000) - Total Other Financing (Uses) (3,753,306) (3,753,306) (4,043,338) (290,032) Net Change in Fund Balances $(10,586,815) $(10,586,815) (1,314,182) $ 9,272,633 Fund Balances Beginning of Year 10,185,111 Fund Balances End of Year 8,870,929 $ See accompanying notes to the basic financial statements For the Fiscal Year Ended June 30, 2010 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 2008 was 12,531. 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 56,765 billable units in fiscal year 2008. 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 12,059 units for collection and 20,564 units for disposal. 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, 2010 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 1,638,851 $ 1,633,034 $ 1,958,553 $ 918,535 $ 6,148,973 $ 1,036,091 $ Investments 158,824 3,338,347 2,732,490 504,193 6,733,854 - Restricted: Cash and cash equivalents 136,106 - - - 136,106 - Receivables: Accounts 2,096,372 230,389 16,203 157,484 2,500,448 5,547 Special assessments 63,302 693,407 456,461 - 1,213,170 - Interfund - 291,081 - - 291,081 - Inventory - - - 6,555 6,555 - Prepaid expenses 12,261 - - - 12,261 - Total Current Assets 4,105,716 6,186,258 5,163,707 1,586,767 17,042,448 1,041,638 Noncurrent Assets: Restricted investments 2,903,981 - 1,027,562 - 3,931,543 - Deferred bond issuance costs 130,729 - - - 130,729 - Capital assets: Nondepreciable 2,816,694 166,800 740,526 5,433 3,729,453 40,000 Depreciable, net 45,458,843 9,351,981 3,404,287 2,310,307 60,525,418 1,395,266 Total Noncurrent Assets 51,310,247 9,518,781 5,172,375 2,315,740 68,317,143 1,435,266 Total Assets 55,415,963 15,705,039 10,336,082 3,902,507 85,359,591 2,476,904 (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 886,146 $ 140,903 $ 144,870 $ 25,595 $ 1,197,514 $ 72,366 $ Accounts payable 110,797 - 111 - 110,908 - Contracts payable 51,672 - - - 51,672 - Accrued wages and benefits payable 160,822 93,785 22,058 24,315 300,980 62,440 Compensated absences 34,046 21,771 6,235 2,867 64,918 12,742 Accrued interest payable 42,601 - - - 42,601 - Interfund payable - - - 3,959 3,959 - Unearned revenue 367,666 - - 4,617 372,283 - Closure and postclosure care payable - - 4,702 - 4,702 - Revenue bonds payable 2,061,350 390,750 - - 2,452,100 - Total Current Liabilities 3,715,100 647,209 177,976 61,353 4,601,637 147,548 Long-Term Liabilities (net of current portion): Customer deposits 115,387 - - - 115,387 - Accrued interest payable-customer deposits 20,719 - - - 20,719 - Closure and postclosure care - - 230,406 - 230,406 - Compensated absences payable 306,412 195,935 56,112 25,802 584,262 114,680 Revenue bonds payable 5,902,737 - - - 5,902,737 - Total Long-Term Liabilities 6,345,255 195,935 286,518 25,802 6,853,511 114,680 Total Liabilities 10,060,355 843,144 464,494 87,155 11,455,148 262,228 Net Assets Invested in capital assets, net of related debt (Note 3J) 40,311,450 9,128,031 4,144,813 2,315,740 55,900,034 1,435,266 Restricted for debt service 2,903,981 - - - 2,903,981 - Unrestricted 2,140,177 5,733,864 5,726,775 1,499,612 15,100,428 779,410 Total Net Assets 45,355,608 $ 14,861,895 $ 9,871,588 $ 3,815,352 $ 73,904,443 $ 2,214,676 $ 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, 2010 Governmental Enterprise Funds Activities Water Metro Other Internal Utility Sewer Solid Enterprise Service Division Operations Waste Funds Total Funds Operating Revenues Charges for services 6,802,722 $ 3,144,573 $ 2,698,390 $ 727,752 $ 13,373,437 $ 2,117,709 $ Miscellaneous 101,477 38,537 13,778 77,355 231,147 954 Total Operating Revenues 6,904,199 3,183,110 2,712,168 805,107 13,604,584 2,118,663 Operating Expenses Personal services 2,421,906 1,553,440 400,294 448,192 4,823,832 1,264,618 Operation and maintenance 1,862,891 1,187,604 1,463,328 425,177 4,939,000 973,876 Depreciation 2,421,972 716,537 318,325 147,458 3,604,292 261,303 Amortization 160,657 - - - 160,657 - Total Operating Expenses 6,867,426 3,457,581 2,181,947 1,020,827 13,527,781 2,499,797 Operating Income (Loss) 36,773 (274,471) 530,221 (215,720) 76,803 (381,134) Non-Operating Revenues (Expenses) Interest expense (281,511) (1,263) - - (282,774) - Investment earnings 22,134 15,383 10,896 1,649 50,062 - Intergovernmenal 4,667,124 450,752 - - 5,117,876 886 Total Non-Operating Revenues (Expenses) 4,407,747 464,872 10,896 1,649 4,885,164 886 Income (Loss) Before Transfers 4,444,520 190,401 541,117 (214,071) 4,961,967 (380,248) Transfers in - - - 53,735 53,735 - Transfers out (100,000) (150,000) (50,000) - (300,000) - Change in Net Assets 4,344,520 40,401 491,117 (160,336) 4,715,702 (380,248) Total Net Assets Beginning of Year 41,011,088 14,821,494 9,380,471 3,975,688 69,188,741 2,594,924 Total Net Assets End of Year 45,355,608 $ 14,861,895 $ 9,871,588 $ 3,815,352 $ 73,904,443 $ 2,214,676 $ 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, 2010 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 6,899,065 $ 2,967,663 $ 2,885,639 $ 874,957 $ 13,627,324 $ - $ Cash received from interfund services provided - - - - - 2,143,959 Cash payments for personal services (2,392,618) (1,531,812) (399,114) (446,581) (4,770,125) (1,203,748) Cash payments for goods and services (1,153,748) (1,031,095) (1,384,602) (405,393) (3,974,838) (944,386) Net Cash Provided by Operating Activities 3,352,699 404,756 1,101,923 22,983 4,882,361 (4,175) Cash Flows from Noncapital Financing Activities Receipt of interfund loan - - 31,421 - 31,421 - Payments made on interfund payable - - (548,031) - (548,031) 886 Interest expense on customer deposits (6,058) - - - (6,058) - Transfers in - - - 53,735 53,735 - Transfers out (100,000) (150,000) (50,000) - (300,000) - Net Cash Flows from Noncapital Financing Activities (106,058) (150,000) (566,610) 53,735 (768,933) 886 Cash Flows from Capital and Related Financing Activities Operating grants 5,772,192 449,538 - - 6,221,730 - Principal paid on revenue bonds payable (1,879,180) (342,950) - - (2,222,130) - Interest paid on revenue bonds (283,833) (1,261) - - (285,094) - Proceeds from issuance of bonds 715,530 750,000 - - 1,465,530 - Principal payments on main extension contracts (13,017) - - - (13,017) - Proceeds from the sale of capital assets - - - - - - Payments for capital acquisitions (6,463,994) (2,131,077) (76,760) (9,511) (8,681,342) (129,236) Net Cash (Used in) Capital and Related Financing Activities (2,152,302) (1,275,750) (76,760) (9,511) (3,514,323) (129,236) Cash Flows from Investing Activities Investment earnings 22,135 12,504 10,896 1,648 47,183 - Net Increase (Decrease) in Cash and Cash Equivalents 1,116,474 (1,008,490) 469,449 68,855 646,288 (132,525) Cash and Cash Equivalents - Beginning of Year 3,721,288 5,979,871 5,249,156 1,353,873 16,304,188 1,168,616 Cash and Cash Equivalents - End of Year 4,837,762 $ 4,971,381 $ 5,718,605 $ 1,422,728 $ 16,950,476 $ 1,036,091 $ Reconciliation to Statement of Net Assets Cash and cash equivalents 1,774,957 $ 1,633,034 $ 1,958,553 $ 918,535 $ 6,285,079 $ 1,036,091 $ Investments 158,824 3,338,347 2,732,490 $ 504,193 6,733,854 - Restricted cash and investments 2,903,981 - 1,027,562 - 3,931,543 - Total 4,837,762 $ 4,971,381 $ 5,718,605 $ 1,422,728 $ 16,950,476 $ 1,036,091 $ (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, 2010 (continued) 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 36,773 $ (274,471) $ 530,221 $ (215,720) $ 76,803 $ (381,134) $ Adjustments: Depreciation 2,421,972 716,537 318,325 147,458 3,604,292 261,303 Amortization 160,657 - - - 160,657 - Capital asset adjustment - - - - - 774 (Increase) Decrease in Assets: Accounts receivable (54,297) (229,166) 131,154 69,964 (82,345) 28,847 Special assessments receivables 126,244 (1,322) (27,196) - 97,726 - Inventory - - 151 151 - Prepaid expenses (2,067) - - - (2,067) - Increase (Decrease) in Liabilities: Vouchers payable 747,519 121,563 143,734 18,345 1,031,161 59,913 Accounts payable (36,308) - 35 - (36,273) (2,880) Accrued expenses - - - - - 6,733 Accrued wages and benefits payable 28,416 20,417 955 1,621 51,409 - Customer deposits (4,421) - - - (4,421) - Compensated absences 873 51,198 4,695 1,164 57,930 22,269 Unearned revenue (72,662) - - - (72,662) - Net Cash Provided by Operating Activities 3,352,699 $ 404,756 $ 1,101,923 $ 22,983 $ 4,882,361 $ (4,175) $ Noncash Capital Activities: Construction costs included in accounts payable 162,469 $ - $ - $ - $ 162,469 $ - $ See accompanying notes to the basic financial statements 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, 2010 Investment Trust Agency Assets Cash and cash equivalents 8,937,671 $ 25,373,945 $ Investments - 1,368,235 Receivables - 2,772,713 Land acquired by tax deed - 261,541 Total Assets 8,937,671 29,776,434 $ Liabilities Accounts payable - 1,796,342 Vouchers payable - 4,763 Accrued interest payable - 233,579 Due to others - 20,840 Due to other governments - 27,645,713 Due to component unit - 75,197 Total Liabilities - 29,776,434 $ Net Assets Net assets held in trust for pool participants 8,937,671 $ See accompanying notes to the basic financial statements 43 ---PAGE BREAK--- Additions Shares and investments purchased 198,881,227 $ Investment earnings 260,972 Total Additions 199,142,199 Deductions Shares and investments redeemed 198,882,864 Investment earnings distributed - Total Deductions 198,882,864 Change in Net Assets 259,335 Net Assets Beginning of Year 8,678,336 Net Assets End of Year 8,937,671 $ See accompanying notes to the basic financial statements For the Fiscal Year Ended June 30, 2010 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, 2010 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 Net 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, 2010 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 fund. 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. 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, ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 47 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: 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. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 48 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. 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. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 49 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. 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. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 50 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, 2010. 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). 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. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 51 1-E-6 Capital Assets General capital assets are those assets not specifically related to activities reported in the proprietary funds. These assets generally result from expenditures in governmental funds. The City and County reports these assets in the governmental activities column of the government-wide statement of net assets but does not report these assets in the governmental fund financial statements. Capital assets utilized by enterprise funds are reported both in the business-type activities column of the government-wide statement of net assets and in the proprietary funds’ statement of net assets. All capital assets are capitalized at cost (or estimated historical cost) and updated for additions and retirements during the year. Donated capital assets are recorded at their fair market values as of the date received. The City and County maintains a capitalization threshold of five thousand dollars. The City and County’s infrastructure consists primarily of roads and water and sewer lines. The City and County governmental activities infrastructure has been capitalized since fiscal year 1981. Improvements to capital assets are capitalized. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset’s life are expensed. Interest incurred during the construction of capital assets utilized by the enterprise funds is capitalized. All reported capital assets are depreciated except for land and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Useful lives for infrastructure were estimated based on the City and County’s historical records of necessary improvements and replacement. Depreciation is computed using the straight-line method over the following useful lives: Governmental Business-type Component Asset Class Activities Activities Unit Buildings 30-60 Years 15-40 years Improvements other than buildings 25-50 Years 25-50 Years 15-40 years HUB transportation facility 25-40 years Machinery and equipment 10-20 years 10-20 years 3-15 Years Infrastructure 30-60 Years Estimated Lives At the inception of capital leases at the governmental fund reporting level, expenditures and an “other financing source” of an equal amount are reported at the net present value of future minimum lease payments. 1-E-7 Accrued Liabilities and Long-term Obligations All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements. In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources, are reported as obligations of the these funds. However, compensated absences, claims and unfunded pension benefits that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they are “due for payment” during the current year. Bonds and capital leases are recognized as a liability in the governmental fund financial statements “when due”. 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. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 52 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. The City and County reserves those portions of fund balance which are legally segregated for a specific future use or which do not represent available, spendable resources and therefore are not available for appropriation or expenditure. Unreserved fund balance indicates that portion of fund balance that is available for appropriation in future periods. Designations are management’s intent to set aside these resources for specific services. Net Assets - Net assets 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. 1-E-10 Operating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses, including operating grants, investment earnings, interest expense and gains and losses on dispositions of capital assets. 1-E-11 Contributions of Capital Contributions of capital in proprietary fund financial statements arise from transfers from capital assets of governmental activities, outside contributions of capital assets, tap-in fees to the extent they exceed the cost of the connection to the system, or from grants or outside contributions of resources restricted to capital acquisition and construction. 1-E-12 Interfund Activity Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the 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) ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 53 . 1-E-14 Estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States, requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. 1-E-15 Comparative Data Comparative total data for the prior year have been presented only for individual funds in the fund financial statements in order to provide an understanding of the changes in the financial position and operations of these funds. I-E-16 Concentration of Credit Risk – Component Unit The Port of Montana Port Authority, a discretely presented component unit, receives revenues from shipping, storage and switching in Silver Bow, Montana. The Port Authority grants credit on some of these sales and generally requires no collateral from its customers. Note 2 – Stewardship, Compliance and Accountability 2-A. Budgetary Information Budgets are adopted on a basis consistent with GAAP for all budgeted funds of the government in accordance with the Local Government Budget Act (Title 7, Chapter 6, part 40, MCA). Per the Local Government Budget Act, the City and County has excluded the damages and judgments fund, a special revenue fund. Because the amounts of possible judgments are unknown, no expenditure budget is included for this fund. Revenues are budgeted because prior year expenditures are levied for in the current year. In accordance with state law judgments against a local government not covered by insurance may be levied for over a 3-year period to pay the current fiscal years judgments. Also, a budget was not necessary for the ARCO redevelopment fund. A soon to be 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. However, 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. The Council of Commissioners also must approve budget transfers within departments. Management of City and County may make transfers of appropriations among objects within a function or department subject to the approval of the Council of Commissioners. All appropriations lapse on June 30th. 2-B. Excess of Expenditures over Appropriations The following funds had expenditures in excess of the fund budget: Bridge Fund – public works $1,183 Maintenance Fund (2504) – public works $2,389 These expenditures were labor accruals related to the settlement of a collective bargaining agreement and are considered immaterial amounts. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 54 2-C. Deficit Fund Equities The following funds had fund balance deficits Parking Commission Fund – ($29,223) – 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 – ($44,384) – 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 – ($126,612) – This fund accounts for judgments made against the local government. Property taxes will be levied in fiscal year 2010-2011 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 – ($365,642) – 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 – ($57,575) – 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. Superfund Storm Water Fund – ($32,972) – This fund covers activities under the Superfund Storm Water Capital Improvements 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. Planning-ARCO Grant Fund ($55,020) – 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. Planning-ARCO Grant Fund ($16,544) – This fund accounts for several reclamations projects funded through the State of Montana Dept of Natural Resources and Conservation (DNRC) via the Reclamation and Development Grants Program (RDGP). The general fund has made an interim loan to the project to avoid delays. This project will be fully funded prior to closeout. Archives Debt Service Fund – ($84,109) – This fund accounts for the debt payments on $7.5 million in bonds issued in FY 2009. The City and County is funding this operation in the interim with a loan from the general fund so payments can proceed without delay. Property taxes will be levied in fiscal year 2010-2011 to cover this deficit. RTP Grants Fund – ($8,744) – 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 RTP projects will remain active with private grants expected to offset this negative balance prior to the closure of these projects. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 55 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 $60,038,882 and the related bank balances totaled $60,939,954. Of the bank balance, $757,662 was covered by Federal Depository Insurance; $44,298,614 was collateralized by the pledging financial institution’s trust department or an agent in the City and County’s name and $14,498,606 was uncollateralized. Component Unit’s Deposits At June 30, 2010, the carrying amount of the Port Authority's deposits, including certificates of deposit of $1,346,568 and the related bank balances totaled $1,464,291. Of the bank balance, $1,021,325 was secured by Federal Depository Insurance; $149,664 was guaranteed or collateralized by government securities and $293,302 was uncollateralized. Primary Government’s Investments Interest Rate Risk – Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. In compliance with the City and County’s Investment Policy, the City and County minimized the interest rate risk, related to the decline in the market value of securities due to rising interest rates in the portfolio by; limiting the duration of the investment of security types with the expectation of securities purchases related to reserve funds; structuring the investment portfolio so that the securities matured to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the secondary market. The City and County has invested operating funds primarily in short-term securities or the State of Montana investment pool. At June 30, 2010 the City and County had the following investments presented by maturity period: Fair Investment Type Value U.S. Government Securities 8,424,007 $ Wells Fargo Restricted Investmments 1,135,847 Montana Investment Pool "2a7 like" 34,484,051 Total Investments 44,043,905 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 56 Wells Fargo Restricted Investments consists of government money market funds which meet the requirements of Rule 2A-7 under the Investment Company Act of 1940. The investments consist of collateralized money market accounts (CMMA) which are insured by up to $250,000 by the FDIC. To the extent funds on deposit exceeds the FDIC limit, the uninsured amounts are covered by pledged collateral set aside by Wells Fargo Bank. 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, 2010 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, 2010 57 Cash and Investment Reconciliation: Cash and Cash Equivalents Investments Total Fund Reporting Level: Governmental Funds - Balance Sheet 14,587,995 $ 27,600,727 $ 42,188,722 $ Governmental Funds - Balance Sheet - Restricted 8,087,191 - 8,087,191 Proprietary Fund Type Statement of Net Assets 6,148,973 6,733,854 12,882,827 Proprietary Fund Type Statement of Net Assets - Restricted 136,106 3,931,543 4,067,649 Fiduciary Fund 26,577,712 10,305,906 36,883,618 Less cash on hand (27,220) (27,220) Total 55,510,757 $ 48,572,030 $ 104,082,787 $ Cash and cash equivalents 60,038,882 $ Investments 44,043,905 Total 104,082,787 $ 3-B. Receivables Receivables at June 30, 2010, 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, 2010, 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, 2009. The property taxes were due and recognized as an enforceable lien on January 31, 2010. 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, 2010 58 3-D. Capital Assets Capital asset activity for the year ended June 30, 2010, was as follows: Balance Balance 6/30/2009 Additions Deductions 6/30/2010 Governmental activities Nondepreciable capital assets Land 3,933,774 $ - $ - $ 3,933,774 $ Construction in progress 2,333,215 4,288,486 - 6,621,701 Total nondepreciable capital assets 6,266,989 4,288,486 - 10,555,475 Depreciable capital assets Buildings 26,144,239 1,870,095 - 28,014,334 Improvements other than buildings 7,009,115 2,141,908 90,533 9,060,490 Machinery and equipment 18,303,820 718,500 129,586 18,892,734 Infrastructure 62,251,338 447,003 - 62,698,341 Total depreciable capital assets 113,708,513 5,177,506 220,119 118,665,900 Total capital assets 119,975,502 9,465,992 220,119 129,221,375 Accumulated depreciation Buildings 6,323,216 672,051 - 6,995,267 Improvements other than buildings 3,361,835 294,437 44,522 3,611,750 Machinery and equipment 11,850,852 1,269,526 79,790 13,040,588 Infrastructure 20,857,874 2,284,740 - 23,142,614 Total accumulated depreciation 42,393,778 4,520,754 124,312 46,790,220 Governmental activities capital assets, net 77,581,724 $ 4,945,238 $ 95,807 $ 82,431,155 $ Governmental activities depreciation expense General government 704,517 $ Public safety 806,741 Public works 666,808 Public health 21,036 Culture and recreation 188,473 Housing and community development 2,133,179 Total governmental activities depreciation expense 4,520,754 $ (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, 2010 59 Balance Balance 6/30/2009 Additions Deductions 6/30/2010 Business-type activities Nondepreciable capital assets Land 1,299,935 $ - $ - $ 1,299,935 $ Construction in progress 3,595,594 2,429,518 3,595,594 2,429,518 Total nondepreciable capital assets 4,895,529 2,429,518 3,595,594 3,729,453 Depreciable capital assets Buildings 27,624,131 9,511 - 27,633,642 Improvements other than buildings 60,968,380 9,372,638 135 70,340,883 Machinery and equipment 9,165,900 453,058 30,192 9,588,766 Total depreciable assets 97,758,411 9,835,207 30,327 107,563,291 Total capital assets 102,653,940 12,264,725 3,625,921 111,292,744 Accumulated depreciation Buildings 12,036,222 664,286 - 12,700,508 Improvements other than buildings 25,353,260 2,447,624 135 27,800,749 Machinery and equipment 6,074,425 492,383 30,192 6,536,616 Total accumulated depreciation 43,463,907 3,604,293 30,327 47,037,873 Business-type activities capital assets, net 59,190,033 $ 8,660,432 $ 3,595,594 $ 64,254,871 $ (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, 2010 60 The following are the changes in component unit’s capital assets: Balance Balance 6/30/2009 Additions Deductions 6/30/2010 Component unit Nondepreciable capital assets Land 353,253 $ - $ - $ 353,253 $ Construction in progress - 456,162 - 456,162 Total nondepreciable capital assets 353,253 456,162 - 809,415 Depreciable capital assets Warehouse and improvements 753,184 - 90 753,094 Machinery and equipment 1,198,757 - 33,320 1,165,437 HUB Transportation facility Buildings and improvements 4,119,372 - - 4,119,372 Tracks 1,469,324 - - 1,469,324 Total depreciable capital assets 7,540,637 - 33,410 7,507,227 Total capital assets 7,893,890 456,162 33,410 8,316,642 Accumulated depreciation Warehouse and improvements 522,103 12,921 90 534,934 Machinery and equipment 960,086 30,052 30,525 959,613 HUB Transportation facility Buildings and improvements 1,817,772 98,438 - 1,916,210 Tracks 626,785 33,060 - 659,845 Total accumulated depreciation 3,926,746 174,471 30,615 4,070,602 Component unit capital assets, net 3,967,144 $ 281,691 $ 2,795 $ 4,246,040 $ 3-E. Interfund Balances and Transfers Interfund balances at June 30, 2010, consisted of the following amounts and represent charges for services or reimbursable expenses. These remaining balances resulted from the time lag between the dates that interfund goods or services are provided or reimbursable expenditures occur, transactions are recorded in the accounting period, payments between funds are made and to the reclassification of a cash overdraft in the City’s cash and investment pool. The City and County expects to repay most interfund balances within one year. Governmental Payable to: Funds Total General Fund 1,091,959 $ 1,091,959 $ Nonmajor Governmental Funds 380,000 380,000 Metro Sewer Replacement Fund 291,081 291,081 1,763,040 $ 1,763,040 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 61 The following is a summary of the interfund transfers: Nonmajor Nonmajor General governmental enterprise Transfers from: fund funds funds Total General fund - $ 420,985 $ - $ 420,985 $ Ramsey TIFID 42,920 3,985,418 15,000 4,043,338 Nonmajor governmental funds 76,450 2,192,638 - 2,269,088 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 404,370 $ 6,614,041 $ 15,000 $ 7,033,411 $ Transfers to: 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 postclosure 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 postclosure 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 postclosure care as of the balance sheet date is $2,015,335 and estimated total current cost remaining to be recognized is $1,780,227. These amounts are based on what it would cost to perform all closure and postclosure care in 2010. Percentage of landfill capacity used to date is about 11.67%. 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. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 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, 2010 are $1,480,000. 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, 2010 are $9,225,000. 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, 2009 are $751,630. 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, 2010 are $7,355,000. Annual debt service requirements to amortize the bonds are as follows: Fiscal Year Principal Interest Total 2011 960,214 745,053 1,705,267 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 2016-2029 13,420,560 3,282,930 16,703,490 Total 18,811,630 $ 6,597,380 $ 25,409,010 $ (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, 2010 63 Tax Increment Revenue Bonds – The City and County has three outstanding tax increment revenue bond issues. Tax Increment Bond, Series 1994 were issued with a final maturity date July 1, 2014 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, 2010 of $350,000. Tax Increment Industrial Infrastructure Development Revenue Bonds, Series 1996, consisting of three different terms and rates. Future revenues from the industrial tax increment finance district have been pledged to pay bond principal and interest as due. Original amount of the issue is $26,785,000 consisting of: $13,285,000 at 6.89% with a final maturity of July 1, 2005; $2,715,000 at 7.185% with a final maturity of July 1, 2007 and $10,785,000 at 7.61% with a final maturity of July 1, 2021. The balance at June 30, 2010 was $7,740,000. Tax Increment Industrial Infrastructure Development Revenue Bonds, Series 1997, consisting of two different terms and rates. Future revenue from the industrial tax increment finance district has been pledged to pay bond principal and interest as due. Original amount of issue is $16,135,000 consisting of: $5,690,000 at 7.00% with final maturity of July 1, 2004 and $10,445,000 at 7.63% with final maturity of July 1, 2022. The balance at June 30, 2010 was $6,845,000. The Series 1996 and 1997 bonds were secured by a Reimbursement Agreement between the City and County of City and County (the issuer), Advanced Silicon Materials, Inc. and the Bank of Tokyo-Mitsubishi, LTD. In January 2006 Advanced Silicon Materials, Inc. was purchased by REC, Incorporated (Renewable Energy Corporation), a Norwegian Corporation. The letter of credit agreement was renewed on July 29, 2005 and assumed by REC, Incorporated. In Section 2 of this agreement the Bank of Tokyo-Mitsubishi, LTD agreed to issue a Letter of Credit to the Trustee for the joint and several account of the obligors in the amount of $23,050,000 to pay the principal of the bonds and 205 days of interest not exceeding $993,382.31 on the bonds. The amount available under the Letter of Credit is reduced to extent of principal payments paid per the Indenture or by which there is a drawing upon the maturity, redemption or acceleration of all of the bonds. The Reimbursement Obligation shall be paid on each Reimbursement Obligation Payment Date from the Trust Money per the Bond Indenture and from the pledged revenues, if not deposited in the Trust Funds. Provided the bank does not receive payment in full on each Reimbursement Obligation Payment date, REC, Incorporated, shall immediately pay to the Bank on demand the unpaid amount of such Reimbursement Obligation. There were no draws on the letter of credit for fiscal year ending June 30, 2010. Annual debt service requirements to amortize the bonds are as follows: Fiscal Year Principal Interest Total 2011 1,080,000 1,185,066 2,265,066 2012 875,000 1,110,710 1,985,710 2013 925,000 1,042,234 1,967,234 2014 990,000 972,385 1,962,385 2015 1,065,000 888,208 1,953,208 2016-2029 10,000,000 3,614,226 13,614,226 Total 14,935,000 $ 8,812,829 $ 23,747,829 $ (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, 2010 64 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. Annual debt service requirements to amortize the bonds are as follows: Fiscal Year Principal Interest Total 2011 45,000 7,028 52,028 2012 50,000 5,303 55,303 2013 50,000 3,365 53,365 2014 55,000 1,183 56,183 200,000 $ 16,878 $ 216,878 $ 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: Fiscal Year Principal 2011 172,911 $ 2012 181,399 2013 190,296 2014 192,346 2015 82,668 2016-2017 168,800 988,420 $ (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, 2010 65 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, with a current book value of $9,734. 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 Interest Total 2011 33,897 $ 18,498 $ 52,395 $ 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 2016-2019 165,235 18,147 183,382 354,120 $ 90,173 $ 444,293 $ (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, 2010 66 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, 2010 were 141 percent of the annual debt service payment. Also, all bond covenants relating to the reserve requirements have been met. On September 24, 2008, the City and County of Butte-Silver Bow issued $5,880,000 in Water System Refunding Bonds with an interest rate between 3.125% and 3.25% to refund $7,135,000 of outstanding 1998 Series bonds with an interest rate of 2.0% to 3.6%. The net proceeds of $5,849,533 (after payment of $128,430 underwriting fees, insurance, and other issuance costs) plus an additional $1,460,000 of 1998 Series Reserve Fund monies were used to extinguish the remaining Series 1998 bonds. The reacquisition price exceeded the net carrying amount of the old debt by $621,995. This amount is netted against the new debt amortized over the new debt’s life, which is equal to the refunded debt. The transaction also resulted in an economic gain of $390,887 and a reduction of $559,429 in future debt service payments. 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 $3,645,000 and 2008 Series Bonds with variable rates between 3.13% and 3.25% outstanding balance of $5,880,000. 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 $7,547,737. Annual debt service requirements to amortize the revenue bonds are as follows: Fiscal Year Principal Interest Total 2011 1,645,000 241,881 1,886,881 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 7,945,000 $ 679,390 $ 8,624,390 $ 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 amount owed on the bonds as of June 30, 2010 was $50 on the bonds and $416,300 on the bonds. It is anticipated the entire amount of the bonds will be forgiven in fiscal year 2011 per the terms of the agreement. The bonds are noted as current liabilities at June 30, 2010. 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 amount owed on the bonds as of June 30, 2010 was $50 on the bonds and $390,700 on the bonds. It is anticipated the entire amount of the bonds will be forgiven in fiscal year 2011 per the terms of the agreement. The bonds are noted as current liabilities at June 30, 2010. (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, 2010 67 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, 2010: Restated Outstanding Outstanding Amounts Due Governmental Activities 6/30/2009 Additions Reductions 6/30/2010 in One Year General obligation bonds 19,686,844 $ - $ 875,214 $ 18,811,630 $ 960,214 $ General obligation notes 1,256,492 - 268,072 988,420 172,911 Tax increment 17,450,000 - 2,515,000 14,935,000 1,080,000 SID bonds 240,000 - 40,000 200,000 45,000 Capital leases 386,274 - 32,154 354,120 33,897 Compensated absences 2,695,596 2,117,200 1,745,667 3,067,129 1,798,037 Total Governmental Activities 41,371,108 $ 2,117,200 $ 5,476,107 $ 38,356,299 $ 4,090,059 $ Business-Type Activities Revenue bonds 9,525,000 $ 1,465,530 $ 2,238,430 $ 8,752,100 $ 2,452,100 $ Less unamortized: Refunding loss (486,241) 112,443 (373,798) Premium 83,574 (19,212) 64,362 Discount (114,175) 26,348 (87,827) Total bonds payable 9,008,158 1,465,530 2,358,009 8,354,837 2,452,100 Compensated absences 591,252 415,038 357,110 649,180 367,823 Landfill postclosure costs 210,374 24,734 - 235,108 5,878 Total Business-Type Activities 9,809,785 $ 1,905,302 $ 2,715,119 $ 9,239,125 $ 2,825,801 $ Component Unit Compensated absences 94,604 $ 50,420 $ 57,253 $ 87,771 $ 43,837 $ Total Component Unit 94,604 $ 50,420 $ 57,253 $ 87,771 $ 43,837 $ The debt service funds are retiring the general obligation bonds, the tax increment bonds and the SID bonds. The general retired 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 community facilities fund is retiring the business-type activities notes payable. 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, 2010 68 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, 2010 was $20,010,704. 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, 2010, 2009 and 2008 were $1,043,951, $987,609 and $898,989, 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, 2010 was $15,130. 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 2010. The Plan is administered by the State of Montana. The Authority contribution for the year ended June 30, 2010, 2009, and 2008 was $37,655, $34,021 and $34,772. 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, 2010 was $270. 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, 2010 69 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, 2010, 2009, and 2008 were, $243,810, $236,091 and $222,132 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, 2010 was $636,440. 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, 2010, 2009, and 2008 were $328,861, $292,412 and $288,716, 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, 2010 was $979,447. 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, 2010 70 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, 2010, 2009, and 2008 were $80,044, $73,626and $67,898 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, 2010, 2009, and 2008 were $24,901, $23,824, and $20,895 respectively. 3-J. Net Assets Net assets on the government-wide statement of net assets as of June 30, 2010 are as follows: Business Governmental Type Component Invested in capital assets, net of related debt: Activities Activities Unit Cost of capital assets 129,221,375 $ 111,292,744 $ 8,316,642 $ Less accumulated depreciation 46,790,220 47,037,873 4,070,602 Book value 82,431,155 64,254,871 4,246,040 Less capital related debt 35,289,170 8,752,100 - Plus/minus bond related items (113,630) 397,263 - Invested in capital assets, net of related debt 47,028,355 $ 55,900,034 $ 4,246,040 $ (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, 2010 71 Governmental Activities – The following are net assets restricted for specific purposes: Governmental Activities: Restriction/Fund Amount Accumulation Authorized by Law: Tax increment bond fund 974,295 $ SID revolving fund 92,645 Total 1,066,940 $ Debt Service/Bond Restrictions: Tax increment bond fund 162,750 $ AsiMi bond fund 3,508,244 Ladder truck bond fund 1,128 Civic center fund 25,858 LEA detention center & admin. project 62,391 Total 3,760,371 $ Economic Development* Ceased Mining Operations: Hard rock mind trust 4,416,197 $ *These restricted assets are to be used in accordance with Montana Code Annotated, (MCA) 7-6-2225 which includes for the use of planning and economic development activities if mining operation has ceased or the number of employees is less than one half of the average number of perons employed full-time in mining activities by the mining operation in the previous 5-year period. Business-type Activities - The following are net assets restricted for specific purposes: Business-type Activities: Restriction/Fund Amount Debt Service/Bond Restrictions: Water utility division fund: Operations and maintenance 503,000 $ Current debt service 1,163,981 Replace and depreciation 1,237,000 Total 2,903,981 $ ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 72 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. The tort liability plan and workers' compensation program issued a $7.610 million, to finance the necessary insurance reserves. All members signed a contingent note for a pro rata share of this liability in case operating revenues were insufficient to cover the debt service. The City and County's share is $701,243 for the workers' compensation program. Based on both plans' current financial position, the City and County does not expect to make any payments on the note. The pool uses an actuarial calculation. Claims incurred but not reported (IBNR's) have been considered when determining the claims liability. 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. 2010 2009 Claims payable, beginning of year 313,869 $ 212,499 $ Claims incurred during the year 3,785,829 3,050,337 Claims paid during the year (3,271,971) (2,948,967) Claims payable, end of year 827,727 $ 313,869 $ Reconciliation of Claims Payable 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. That reserve was $1,722,177 at June 30, 2010. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 73 4-B. Subsequent Events On December 10, 2010, the ARRA bonds disclosed in Note 3-H were forgiven in the amount of $390,700. On February 1, 2011, the ARRA bonds disclosed in Note 3-H were forgiven in the amount of $416,300. 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 $13,075,000. 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 purchaser of the bonds is REC Advanced Silicon Materials LLC, a Delaware limited liability company. 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, 2010. 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. 4-D. Construction Commitments As of June 30, 2010, the City has made the following construction commitments: Project Expended to Future Authorized June 30, 2010 Financing Aerotech building 169,000 $ 79,548 $ 89,452 $ Archives building and renovation 5,780,252 5,328,993 451,259 Big Hole diversion dam 3,328,343 266,222 3,062,121 Metro waste water treatment upgrade 1,847,000 1,777,013 69,987 Water main replacement 2,040,479 1,732,158 308,321 13,165,074 $ 9,183,934 $ 3,981,140 $ 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, 2010. 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, 2010 the pooled investment’s fair value was $8,937,671, which is the value of the pooled shares. In the State of Montana there is no regulatory oversight for this pool of investments. A separately issued report exists for the external investment pool maintained by the City and County. This report can be obtained by writing to the City and County, Finance and Budget office, at 155 West Granite Street, Butte, MT 59701, or by calling 406/497-6322. ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Notes to the Basic Financial Statements For the Year Ended June 30, 2010 74 4-F. Prior Period Adjustments As of and for the year ended June 30, 2009, the liability for compensatory time was not recorded in the government-wide financial statements. This omission requires a restatement of the June 30, 2009 government-wide net asset balance as follows: Government-wide Net Assets Net assets as previously reported at June 30, 2009. 93,964,210 $ To record liability at June 30, 2009 344,098 Net assets, as restated at June 30, 2009. 93,620,112 $ ---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. ---PAGE BREAK--- Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds Assets Cash and cash equivalents 5,981,932 $ 265,232 $ 3,970,667 $ 10,217,831 $ Investments 12,044,507 891,085 2,061,355 14,996,947 Restricted assets - investments 4,416,197 3,670,994 - 8,087,191 Receivables: Accounts 1,535,611 - 107 1,535,718 Property taxees 852,590 583,582 - 1,436,172 Special assessments 538,138 - - 538,138 Loans 4,872,011 - 19,087 4,891,098 Interfund 380,000 - - 380,000 Total Assets 30,620,986 $ 5,410,893 $ 6,051,216 $ 42,083,095 $ Liabilities and Fund Balances Liabilities Vouchers payable 1,508,761 $ - $ 613,505 $ 2,122,266 $ Accounts payable 240,362 - 28,939 269,301 Accrued salaries and benefits 523,382 - - 523,382 Interfund payable 1,674,972 84,109 - 1,759,081 Performance bonds payable 20,984 - - 20,984 Deferred revenue 1,467,249 583,582 88,374 2,139,205 Total Liabilities 5,435,710 667,691 730,818 6,834,219 Fund Balances Reserved for: Debt service - 3,676,262 - 3,676,262 Long-term loans 4,872,011 - - 4,872,011 Accumulation of reserve authorized by State Law - 1,066,940 - 1,066,940 Economic development - ceased mining operation 4,416,197 - - 4,416,197 Unreserved, undesignated, reported in: Special revenue funds 15,897,068 - - 15,897,068 Capital projects funds - - 5,320,398 5,320,398 Total Fund Balances 25,185,276 4,743,202 5,320,398 35,248,876 Total Liabilities and Fund Balances 30,620,986 $ 5,410,893 $ 6,051,216 $ 42,083,095 $ City and County of Butte-Silver Bow, Montana June 30, 2010 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 6,299,706 $ 2,739,631 $ - $ 9,039,337 $ Special assessments 1,375,779 - - 1,375,779 Intergovernmental 8,158,125 317,602 98,973 8,574,700 Charges for services 964,761 - - 964,761 Fines and forfeitures 71,546 - 83,181 154,727 Private grants and donations 1,655,311 - - 1,655,311 Investment earnings 255,014 3,117 26,100 284,231 Miscellaneous 245,881 523,613 29,916 799,410 Total Revenues 19,026,123 3,583,963 238,170 22,848,256 Expenditures Current: General government 2,449,998 - - 2,449,998 Public safety 4,316,756 - 39,741 4,356,497 Public works 5,463,468 - - 5,463,468 Public health 3,233,412 - - 3,233,412 Social and economic services 146,616 - - 146,616 Cultural and recreation 951,772 1,050 - 952,822 Housing and community development 1,368,864 10,823 - 1,379,687 Capital Outlay 2,072,652 - 4,632,863 6,705,515 Debt Service: Principal 268,072 3,430,214 - 3,698,286 Interest 38,657 2,073,713 - 2,112,370 Total Expenditures 20,310,267 5,515,800 4,672,604 30,498,671 (Deficiency) of Revenues (Under) Expenditures (1,284,144) (1,931,837) (4,434,434) (7,650,415) Other Financing Sources (Uses) Insurance proceeds 3,000 - - 3,000 Proceeds from the sale of capital assets - - - - Transfers in 2,540,175 4,035,131 - 6,575,306 Transfers out (311,484) (1,957,604) - (2,269,088) Total Other Financing Sources (Uses) 2,231,691 2,077,527 - 4,309,218 Net Change in Fund Balances 947,547 145,690 (4,434,434) (3,341,197) Fund Balances Beginning of Year 24,237,729 4,597,512 9,754,832 38,590,073 Fund Balances End of Year 25,185,276 $ 4,743,202 $ 5,320,398 $ 35,248,876 $ 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, 2010 84 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2010 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 888,468 $ 3,708 $ 3,568 $ 35,989 $ 1,677,483 $ 61,126 $ 35,648 $ - $ 367,208 $ 345,995 $ Investments - 1,963 - - - - - - - - Receivables: Taxes 578 - - - 87,906 41,381 21,993 - 84,901 53,575 Accounts - - - - 6,687 - 45,164 - 18,407 14,163 Special assessments 206,981 1,450 2,124 168,104 - - 11,288 - - - Loans - - - - - - - - - - Interfund - - - - - - - - - - Restricted assets - investments - - - - - - - - - - Total Assets 1,096,027 $ 7,121 $ 5,692 $ 204,093 $ 1,772,076 $ 102,507 $ 114,093 $ - $ 470,516 $ 413,733 $ Liabilities and Fund Balances Liabilities Vouchers payable 3,479 $ - $ - $ - $ 790,952 $ 21 $ 625 $ 494 $ 65,044 $ 12,544 $ Accounts payable - - - - - - - - - - Accrued salaries and benefits 12,003 - - - 65,255 21,205 15,388 8,585 25,213 15,065 Performance bonds payable - - - - - - 20,984 - - - Interfund payable - - - - - - - 20,144 - - Deferred revenue 207,557 1,450 2,124 168,104 87,906 41,380 33,282 - 84,900 53,575 Total Liabilities 223,039 1,450 2,124 168,104 944,113 62,606 70,279 29,223 175,157 81,184 Fund Balances Reserved for: Long-term loans - - - - - - - - - - Economic development - ceased mining operation - - - - - - - - - - Unreserved, undesignated 872,988 5,671 3,568 35,989 827,963 39,901 43,814 (29,223) 295,359 332,549 Total Fund Balances 872,988 5,671 3,568 35,989 827,963 39,901 43,814 (29,223) 295,359 332,549 Total Liabilities and Fund Balances 1,096,027 $ 7,121 $ 5,692 $ 204,093 $ 1,772,076 $ 102,507 $ 114,093 $ - $ 470,516 $ 413,733 $ 85 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2010 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 Reserved for: Long-term loans Economic development - ceased mining operation Unreserved, undesignated 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 11,529 $ 60,654 $ 24,759 $ 12,774 $ 159,854 $ 189,293 $ - $ 13,798 $ 18,126 $ - $ - - 17,040 - 2,300,787 - - - - - - - - 7,719 - 41,472 - 8,029 5,822 34,059 - - 919 - - 158,325 349,531 - 500 - - - - - - - - - - - - - - - 231,788 - - - - - - - - - - - - - - - - - - - - - - - - - 11,529 $ 60,654 $ 42,718 $ 20,493 $ 2,692,429 $ 389,090 $ 349,531 $ 21,827 $ 24,448 $ 34,059 $ - $ - $ 1,276 $ - $ - $ 25,485 $ 31,668 $ - $ 138 $ - $ - - - - - - 125 - - - - 2,683 10,346 - - 35,257 96,040 - 3,372 - - - - - - - - - - - - - - - - 220,000 165,757 - - 126,611 - - - 7,719 76,520 41,473 - 8,029 5,823 34,060 - 2,683 11,622 7,719 76,520 322,215 293,590 8,029 9,333 160,671 - - - - 231,788 - - - - - - - - - - - - - - - 11,529 57,971 $ 31,096 12,774 2,384,121 66,875 55,941 13,798 15,115 (126,612) 11,529 57,971 31,096 12,774 2,615,909 66,875 55,941 13,798 15,115 (126,612) 11,529 $ 60,654 $ 42,718 $ 20,493 $ 2,692,429 $ 389,090 $ 349,531 $ 21,827 $ 24,448 $ 34,059 $ 86 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2010 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 Reserved for: Long-term loans Economic development - ceased mining operation Unreserved, undesignated 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 573,963 $ 71,548 $ 122,412 $ 17,151 $ 2,965 $ - $ 140,288 $ 26,697 $ 1,591 $ 60,023 $ - 67,529 - - - - - - - - 357,558 107,597 - - - - - - - - 32,552 5,304 - - - - - - - - - - - - - - 74,509 3,442 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 964,073 $ 246,674 $ 127,716 $ 17,151 $ 2,965 $ - $ 140,288 $ 101,206 $ 5,033 $ 60,023 $ 60,131 $ 987 $ - $ - $ 1,150 $ - $ - $ - $ - $ - $ 5,884 - - - - - - - - - 132,734 - 2,981 - 1,815 - 2,720 - - - - - - - - - - - - - - - - - - 55,020 - 71,081 - - 357,560 107,596 - - - - - 74,509 3,442 - 556,309 108,583 2,981 - 2,965 55,020 2,720 145,590 3,442 - - - - - - - - - - - - - - - - - - - - - 407,764 138,091 124,735 17,151 - (55,020) 137,568 (44,384) 1,591 60,023 407,764 138,091 124,735 17,151 - (55,020) 137,568 (44,384) 1,591 60,023 964,073 $ 246,674 $ 127,716 $ 17,151 $ 2,965 $ - $ 140,288 $ 101,206 $ 5,033 $ 60,023 $ 87 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2010 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 Reserved for: Long-term loans Economic development - ceased mining operation Unreserved, undesignated 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 71,580 $ 83,338 $ - $ 4,050 $ 3,448 $ 189,280 $ 11,271 $ - $ 783 $ - $ 2,515,587 10,943 - - 398,158 184,038 - - - 124,210 - - - - - - - - - - - 62,629 - - - - - 142,412 - - 62,478 - - - - - - - - - 3,857,382 82,707 - 55,810 - - - - - - 380,000 - - - - - - - - - - - 4,416,197 - - - - - - - 6,887,027 $ 239,617 $ 4,416,197 $ 59,860 $ 401,606 $ 373,318 $ 11,271 $ 142,412 $ 783 $ 124,210 $ 175,298 $ - $ - $ 184 $ - $ 1,989 $ - $ 42,486 $ - $ - $ - - - - 230,000 210 4,112 - - - 7,798 6,374 - - - 6,246 - - - - - - - - - - - - - - - - - - - - - 116,470 - 443 62,478 - - - - - - - - - 245,574 6,374 - 184 230,000 8,445 4,112 158,956 - 443 3,857,382 82,707 - 55,810 - - - - - - - - 4,416,197 - - - - - - - 2,784,071 150,536 - 3,866 171,606 364,873 7,159 (16,544) 783 123,767 6,641,453 233,243 4,416,197 59,676 171,606 364,873 7,159 (16,544) 783 123,767 6,887,027 $ 239,617 $ 4,416,197 $ 59,860 $ 401,606 $ 373,318 $ 11,271 $ 142,412 $ 783 $ 124,210 $ 88 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2010 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 Reserved for: Long-term loans Economic development - ceased mining operation Unreserved, undesignated Total Fund Balances Total Liabilities and Fund Balances East Butte Arco Renovation PIT Historic and County Department Montana Superfund ARCO ARCO Watch ED Preservation Rehabilitation Land of Justice Historical Health Superfund Anaconda Lead Program Grant Agency Planning Grant Preservation Studies Land Mgt-GIS ARCO Program 188,920 $ 115,126 $ - $ 41,279 $ - $ - $ 57,610 $ 5,901 $ 185,470 $ 7,405 $ 290 862,701 15,028 - - - - - 62,575 14,967 - - - - - - - - - - - - - - 5,889 - - - 7,592 - - - 7,762 - - - - - - - - - - - - - - - 385,752 - - - - - - - - - - - - - - - - - - - - - 189,210 $ 977,827 $ 22,790 $ 41,279 $ 5,889 $ - $ 57,610 $ 5,901 $ 641,389 $ 22,372 $ 4,209 $ 19,471 $ - $ - $ 5,221 $ - $ 2,874 $ - $ - $ - $ - - - - - - - - - - - - - - - - - 3,931 - - - - - - - - - - - - - - 380,670 - 176 16,241 - - - - - - 7,762 - - - - - - - 4,209 19,471 388,432 - 5,397 16,241 2,874 3,931 - - - - - - - - - - 385,752 - - - - - - - - - - - 185,001 958,356 (365,642) 41,279 492 (16,241) 54,736 1,970 255,637 22,372 185,001 958,356 (365,642) 41,279 492 (16,241) 54,736 1,970 641,389 22,372 189,210 $ 977,827 $ 22,790 $ 41,279 $ 5,889 $ - $ 57,610 $ 5,901 $ 641,389 $ 22,372 $ 89 ---PAGE BREAK--- City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2010 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 Reserved for: Long-term loans Economic development - ceased mining operation Unreserved, undesignated Total Fund Balances Total Liabilities and Fund Balances Natural Resources East Butte Total Superfund Damages RRA ARCO Superfund Nonmajor Residential Greenway Revolving Redevelopment Storm Water Special Revenue Metals Project Loan Trust System RTP Grants Funds - $ - $ 11,743 $ - $ 78,110 $ - $ 5,981,932 $ - - 10,450 5,458,241 - - 12,044,507 - - - - - - 852,590 - 685,537 - - - - 1,535,611 - - - - - - 538,138 - - 258,572 - - - 4,872,011 - - - - - - 380,000 - - - - - - 4,416,197 - $ 685,537 $ 280,765 $ 5,458,241 $ 78,110 $ - $ 30,620,986 $ 23,754 $ 157,400 $ - $ - $ 81,881 $ - $ 1,508,761 $ - - - - 31 - 240,362 17,280 1,921 - - 29,170 - 523,382 - - - - - - 20,984 16,541 477,074 - - - 8,744 1,674,972 - - - - - - 1,467,249 57,575 636,395 - - 111,082 8,744 5,435,710 - - 258,572 - - - 4,872,011 - - - - - - 4,416,197 (57,575) 49,142 22,193 5,458,241 (32,972) (8,744) 15,897,068 (57,575) 49,142 280,765 5,458,241 (32,972) (8,744) 25,185,276 - $ 685,537 $ 280,765 $ 5,458,241 $ 78,110 $ - $ 30,620,986 $ 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 For the Fiscal Year Ended June 30, 2010 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 14,433 $ - $ - $ - $ 693,912 $ 284,671 $ 191,386 $ - $ 650,160 $ 370,284 $ Special assessments 1,249,881 6 165 47,051 - - - - - - Intergovernmental 200,457 - - - 1,843,754 41,507 26,826 84 106,674 36,519 Charges for services - 12,289 6,588 - - - 105,824 60,830 12,498 273,775 Fines and forfeitures - - - - - - - 71,546 - - Private grants and donations - - - - - - - - - - Investment earnings - - - - - - - - - - Miscellaneous - - - - 31,569 560 - - 3,452 7,553 Total Revenues 1,464,771 12,295 6,753 47,051 2,569,235 326,738 324,036 132,460 772,784 688,131 Expenditures Current: General government 60,876 - - - - - - - 636,553 - Public safety - - - - - - - - 147,943 - Public works 1,047,079 11,658 9,310 - 2,100,717 372,873 300,949 167,763 - - Public health 13,400 - - - - - - - - - Social and economic services - - - - - - - - - - Cultural and recreation - - - - - - - - - 659,979 Housing and community development - - - - - - - - - - Capital Outlay 235,398 - - - 730,922 - - - - 2,239 Debt Service: - Principal - - - - 65,054 - - - - - Interest - - - - 19,306 - - - - - Total Expenditures 1,356,753 11,658 9,310 - 2,915,999 372,873 300,949 167,763 784,496 662,218 Excess (Deficiency) of Revenues Over (Under) Expenditures 108,018 637 (2,557) 47,051 (346,764) (46,135) 23,087 (35,303) (11,712) 25,913 Other Financing Sources (Uses) Insurance proceeds - - - - - - - - - - Transfers in 101,851 - - - 45,000 - - 14,500 - - Transfers out (86,849) - - (49,715) - - - - (55,000) - Total Other Financing Sources (Uses) 15,002 - - (49,715) 45,000 - - 14,500 (55,000) - Net Change in Fund Balances 123,020 637 (2,557) (2,664) (301,764) (46,135) 23,087 (20,803) (66,712) 25,913 Fund Balances Beginning of Year 749,968 5,034 6,125 38,653 1,129,727 86,036 20,727 (8,420) 362,071 306,636 Fund Balances End of Year 872,988 $ 5,671 $ 3,568 $ 35,989 $ 827,963 $ 39,901 $ 43,814 $ (29,223) $ 295,359 $ 332,549 $ 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 For the Fiscal Year Ended June 30, 2010 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 - $ - $ - $ 52,454 $ - $ 321,954 $ - $ 49,568 $ 42,724 $ 166,209 $ - - - 381 - 2,185 - - - 3,405 - 104,512 100 8,776 - 575,650 2,081,793 10,908 24,580 17,524 - 4,133 - 102,812 375,238 - - - - - - - - - - - - - 315 - - - - 29,518 - - - - - 56 - 51,428 - - - - - 5,641 - - - - 9,003 90 - - 20 5,641 104,827 4,289 61,611 51,428 1,011,604 2,486,639 60,476 67,304 187,158 - - - - - - - - - 137,688 - - - - - - - - - - - - - - - 935,389 - - - - - - - - - - 2,665,109 - - - - - - - - - - 76,044 70,572 - 3,950 91,404 166,564 - - - - - - - - - - 65,000 4,179 - - - - - - - - - - 42,384 13,749 - - - - - - - - - - - - - - - - - - - - - - - 3,950 91,404 166,564 65,000 4,179 977,773 2,678,858 76,044 70,572 137,688 1,691 13,423 (162,275) (3,389) 47,249 33,831 (192,219) (15,568) (3,268) 49,470 - - - - - - - - - - - 38,137 159,250 - - 15,000 - - - - - - - - - - - - - - - 38,137 159,250 - - 15,000 - - - - 1,691 51,560 (3,025) (3,389) 47,249 48,831 (192,219) (15,568) (3,268) 49,470 9,838 6,411 34,121 16,163 2,568,660 18,044 248,160 29,366 18,383 (176,082) 11,529 $ 57,971 $ 31,096 $ 12,774 $ 2,615,909 $ 66,875 $ 55,941 $ 13,798 $ 15,115 $ (126,612) $ 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 For the Fiscal Year Ended June 30, 2010 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 2,545,705 $ 880,382 $ - $ - $ - $ - $ - $ - $ - $ - $ 12,795 - - - - - - 25,730 15,869 - 1,002,836 36,758 58,806 14,856 43,897 - 37 - - - - - 3,565 - - - - - - - - - - - - - - - - - 5,000 - - - - - 56,566 - - - - 536 - - - - - - - - 10 - - - - - - - - - 3,566,346 917,676 62,371 14,856 43,897 - 56,603 25,730 15,869 - - 980,462 - - - - 60,936 - - - 3,750,807 - 65,255 - - - - - - - - - - - 43,897 - - 120 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 131,468 - - - - 99,766 - - - - - - - - - 16,837 - - - - - - - - - 3,867,410 980,462 65,255 - 43,897 131,468 60,936 120 - - (301,064) (62,786) (2,884) 14,856 - (131,468) (4,333) 25,610 15,869 - 3,000 - - - - - - - - - - - 8,750 - - - - - - - - - - - - - - - (14,500) - 3,000 - 8,750 - - - - - (14,500) - (298,064) (62,786) 5,866 14,856 - (131,468) (4,333) 25,610 1,369 - 705,828 200,877 118,869 2,295 - 76,448 141,901 (69,994) 222 60,023 407,764 $ 138,091 $ 124,735 $ 17,151 $ - $ (55,020) $ 137,568 $ (44,384) $ 1,591 $ 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 For the Fiscal Year Ended June 30, 2010 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 Community URA Hard-Rock Development Montana Transportation Local Law Clark PIT Economic Community Mine Trust Block Grants Pole 911 Enhancement DNRC Enforcement Tailings Watch ED Development Development Reserve Projects Institution Emergency Program Grants Block Grant O & M Trust Program - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 18,015 - - - - - - - - - - 97 129,576 566,083 - - 208,611 23,623 268,526 - - - - 200 - - - - - - - - - - - - - - - - - - - - - - - - - - - 39,005 - - - 117,133 717 1,681 - 6,641 602 - - 21,536 407 71 157,961 - - - - 22 - - - - - 293,206 130,493 567,764 - 6,641 209,235 23,623 307,531 21,536 407 71 - - - - - - 46,953 193,916 - - 4,434 - - - - - 246,428 - - 1,090 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,055,515 227,774 - 9,836 - - - - - - - - - - - - - - 136,780 20,445 - - - 103,252 - - - - - - - - - - 2,514 - - - - - - - - - 1,055,515 333,540 - 9,836 - 246,428 46,953 330,696 21,535 - 4,434 (762,309) (203,047) 567,764 (9,836) 6,641 (37,193) (23,330) (23,165) 1 407 (4,363) - - - - - - - - - - - 1,957,604 194,195 - - - - 5,888 - - - - (66,450) - - (3,082) - - - - - - - 1,891,154 194,195 - (3,082) - - 5,888 - - - - 1,128,845 (8,852) 567,764 (12,918) 6,641 (37,193) (17,442) (23,165) 1 407 (4,363) 5,512,608 242,095 3,848,433 72,594 164,965 402,066 24,601 6,621 782 123,360 189,364 6,641,453 $ 233,243 $ 4,416,197 $ 59,676 $ 171,606 $ 364,873 $ 7,159 $ (16,544) $ 783 $ 123,767 $ 185,001 $ 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 For the Fiscal Year Ended June 30, 2010 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 Historic and County Department Montana Superfund ARCO Ana-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 - $ 35,864 $ - $ - $ - $ - $ - $ - $ - $ - $ - 296 - - - - - - - - - - - 105,469 - - 59 - - 248 - - 7,009 - - - - - - - - - - - - - - - - - - - - - 10,510 - 114,540 - - 557,848 2,822 49 - - 4,875 - - 20,581 49 - - 30,000 - - - - - - - - 2,822 66,209 7,009 105,469 15,385 - 114,599 20,581 49 558,096 123,097 - - - - - 115,026 - - - - - - 105,233 - - - - - - - - - - - - - - - - - - - - - 13,250 - - - 541,653 - - - - - - - - - - - - - - 29,875 - - - - - - 6,560 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 123,097 6,560 - 105,233 29,875 13,250 115,026 - - 541,653 (120,275) 59,649 7,009 236 (14,490) (13,250) (427) 20,581 49 16,443 - - - - - - - - - - - - - - - - - - - - (5,888) (30,000) - - - - - - - - (5,888) (30,000) - - - - - - - - (126,163) 29,649 7,009 236 (14,490) (13,250) (427) 20,581 49 16,443 1,084,519 (395,291) 34,270 256 (1,751) 67,986 2,397 620,808 22,323 (74,018) 958,356 $ (365,642) $ 41,279 $ 492 $ (16,241) $ 54,736 $ 1,970 $ 641,389 $ 22,372 $ (57,575) $ 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 For the Fiscal Year Ended June 30, 2010 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 Resources East Butte Total Damages RRA ARCO Superfund Nonmajor Greenway Revolving Redevelopment Storm Water Special Revenue Project Loan Trust System RTP Grants Funds - $ - $ - $ - $ - $ 6,299,706 $ - - - - - 1,375,779 618,828 - - 151 - 8,158,125 - - - - - 964,761 - - - - - 71,546 - - - 842,009 - 1,655,311 - 7,972 17,858 - - 255,014 - - - - - 245,881 618,828 7,972 17,858 842,160 - 19,026,123 90,057 - - - - 2,449,998 - - - - - 4,316,756 - - - 473,713 - 5,463,468 - - - - - 3,233,412 - - - - - 146,616 - - - - - 951,772 - - - - - 1,368,864 315,535 - - 443,732 - 2,072,652 - - - - - 268,072 - - - - - 38,657 405,592 - - 917,445 - 20,310,267 213,236 7,972 17,858 (75,285) - (1,284,144) - - - - - 3,000 - - - - - 2,540,175 - - - - - (311,484) - - - - - 2,231,691 213,236 7,972 17,858 (75,285) - 947,547 (164,094) 272,793 5,440,383 42,313 (8,744) 24,237,729 49,142 $ 280,765 $ 5,458,241 $ (32,972) $ (8,744) $ 25,185,276 $ 96 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property - $ - $ 14,433 $ 14,433 $ Special assessments 1,487,504 1,487,504 1,249,881 (237,623) Intergovernmental 5,439 186,931 200,457 13,526 Total Revenues 1,492,943 1,674,435 1,464,771 (209,664) Expenditures Current: General government 116,669 116,669 60,876 55,793 Public works 1,462,660 1,462,660 1,047,079 415,581 Public health 43,000 43,000 13,400 29,600 Capital Outlay 55,000 236,492 235,398 1,094 Total Expenditures 1,677,329 1,858,821 1,356,753 502,068 Excess (Deficiency) of Revenues Over (Under) Expenditures (184,386) (184,386) 108,018 292,404 Other Financing Sources (Uses) Transfers in: SID funds 89,009 89,009 86,851 (2,158) Solid waste fund 15,000 15,000 15,000 - Transfers out: SID administration fund (86,849) (86,849) (86,849) - Total Other Financing Sources (Uses) 17,160 17,160 15,002 (2,158) Net Change in Fund Balances $ (167,226) $ (167,226) 123,020 $ 290,246 Fund Balances Beginning of Year 749,968 Fund Balances End of Year 872,988 $ For the Fiscal Year Ended June 30, 2010 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 Charges for services 13,000 $ 13,000 $ 12,289 $ (711) $ Special assessmenets - - 6 6 Total Revenues 13,000 13,000 12,295 (705) Expenditures Current: Public works 13,000 13,000 11,658 1,342 Excess of Revenues Over Expenditures - $ - $ 637 637 $ Fund Balances Beginning of Year 5,034 Fund Balances End of Year 5,671 $ For the Fiscal Year Ended June 30, 2010 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 $ 6,588 $ (3,412) $ Special assessmenets - - 165 165 Total Revenues 10,000 10,000 6,753 (3,247) Expenditures Current: Public works 10,000 10,000 9,310 690 (Deficiency) of Revenues (Under) Expenditures - $ - $ (2,557) (2,557) $ Fund Balances Beginning of Year 6,125 Fund Balances End of Year 3,568 $ For the Fiscal Year Ended June 30, 2010 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 51,500 $ 51,500 $ 47,051 $ (4,449) $ Other Financing (Uses) Transfers out - Blacktail Loop debt service fund (49,715) (49,715) (49,715) - Net Change in Fund Balances $ 1,785 $ 1,785 (2,664) $ (4,449) Fund Balances Beginning of Year 38,653 Fund Balances End of Year 35,989 $ For the Fiscal Year Ended June 30, 2010 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 582,868 $ 582,868 $ 563,441 $ (19,427) $ Personal property - - 17,003 17,003 Motor vehicle 110,000 110,000 113,468 3,468 Intergovernmental 1,906,928 1,906,928 1,843,754 (63,174) Miscellaneous - - 31,569 31,569 Total Revenues 2,599,796 2,599,796 2,569,235 (30,561) Expenditures Current: Public works 2,343,788 2,343,788 2,100,717 243,071 Capital Outlay 899,081 899,081 730,922 168,159 Debt Service Principal 65,055 65,055 65,054 1 Interest 19,306 19,306 19,306 - Total Expenditures 3,327,230 3,327,230 2,915,999 411,231 Excess (Deficiency) of Revenues Over (Under) Expenditures (727,434) (727,434) (346,764) 380,670 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 $ (682,434) $ (682,434) (301,764) $ 380,670 Fund Balances Beginning of Year 1,129,727 Fund Balances End of Year 827,963 $ For the Fiscal Year Ended June 30, 2010 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 288,977 $ 288,977 $ 275,855 $ (13,122) $ Personal property - - 8,816 8,816 Intergovernmental 41,807 41,807 41,507 (300) Miscellaneous 560 Total Revenues 330,784 330,784 326,738 (4,606) Expenditures Current: Public works 371,689 371,689 372,873 (1,184) (Deficiency) of Revenues (Under) Expenditures (40,905) $ (40,905) $ (46,135) (5,790) $ Fund Balances Beginning of Year 86,036 Fund Balances End of Year 39,901 $ For the Fiscal Year Ended June 30, 2010 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 198,668 $ 198,668 $ 190,469 $ (8,199) $ Personal property - - 917 917 Intergovernmental 34,636 34,636 26,826 (7,810) Charges for services 119,929 119,929 105,824 (14,105) Total Revenues 353,233 353,233 324,036 (29,197) Expenditures Current: Public works 327,588 332,588 300,949 31,639 Capital Outlay 25,245 20,245 - 20,245 Total Expenditures 352,833 352,833 300,949 51,884 Excess of Revenues Over Expenditures 400 $ 400 $ 23,087 22,687 $ Fund Balances Beginning of Year 20,727 Fund Balances End of Year 43,814 $ For the Fiscal Year Ended June 30, 2010 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 116 $ 116 $ 84 $ (32) $ Charges for services 75,500 75,500 60,830 (14,670) Fines and forfeitures 65,000 65,000 71,546 6,546 Total Revenues 140,616 140,616 132,460 (8,156) Expenditures Current: Public works 193,915 193,915 167,763 26,152 Excess (Deficiency) of Revenues Over (Under) Expenditures (53,299) (53,299) (35,303) 17,996 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 $ (38,799) $ (38,799) (20,803) $ 17,996 Fund Balances Beginning of Year (8,420) Fund Balances End of Year (29,223) $ For the Fiscal Year Ended June 30, 2010 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 615,249 $ 615,249 $ 590,950 $ (24,299) $ Personal property - - 17,057 17,057 Motor vehicle 40,000 40,000 42,153 2,153 Intergovernmental 89,217 89,217 106,674 17,457 Miscellaneous - - 3,452 3,452 Charges for services 11,000 11,000 12,498 1,498 Total Revenues 755,466 755,466 772,784 17,318 Expenditures Current: General government 793,571 755,571 636,553 119,018 Public safety 200,000 183,000 147,943 35,057 Total Expenditures 993,571 938,571 784,496 154,075 Excess (Deficiency) of Revenues Over (Under) Expenditures (238,105) (183,105) (11,712) 171,393 Other Financing (Uses) Transfers out: General fund - (55,000) (55,000) - Net Change in Fund Balances (66,712) Fund Balances Beginning of Year 362,071 Fund Balances End of Year 295,359 $ For the Fiscal Year Ended June 30, 2010 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 374,026 $ 374,026 $ 358,437 $ (15,589) $ Personal property - - 11,847 11,847 Intergovernmental 36,922 36,922 36,519 (403) Charges for services 230,000 230,000 273,775 43,775 Rent 8,640 8,640 - (8,640) Miscellaneous - - 7,553 7,553 Total Revenues 649,588 649,588 688,131 38,543 Expenditures Current: Culture and recreation 791,024 774,749 659,979 114,770 Capital Outlay 26,200 16,000 2,239 13,761 Total Expenditures 817,224 790,749 662,218 128,531 Excess (Deficiency) of Revenues Over (Under) Expenditures (167,636) $ (141,161) $ 25,913 167,074 $ Fund Balances Beginning of Year 306,636 Fund Balances End of Year 332,549 $ For the Fiscal Year Ended June 30, 2010 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 - $ - $ 5,641 $ 5,641 $ Expenditures Current: Culture and recreation 12,400 12,400 3,950 8,450 Excess (Deficiency) of Revenues Over (Under) Expenditures (12,400) $ (12,400) $ 1,691 14,091 $ Fund Balances Beginning of Year 9,838 Fund Balances End of Year 11,529 $ For the Fiscal Year Ended June 30, 2010 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 12,064 $ 97,064 $ 104,512 $ 7,448 $ Private grants and donations 85,000 - 315 315 Total Revenues 97,064 97,064 104,827 7,763 Expenditures Current: Culture and recreation 107,307 107,307 91,404 15,903 Excess (Deficiency) of Revenues Over (Under) Expenditures (10,243) (10,243) 13,423 23,666 Other Financing Sources Transfers in: General fund 40,240 40,240 38,137 (2,103) Net Change in Fund Balances $ 29,997 $ 29,997 51,560 $ 21,563 Fund Balances Beginning of Year 6,411 Fund Balances End of Year 57,971 $ For the Fiscal Year Ended June 30, 2010 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 108 $ 108 $ 100 $ $ Charges for services 3,000 3,000 4,133 1,133 Private grants and donations 14,000 14,000 - (14,000) Investment earnings 250 250 56 (194) Total Revenues 17,358 17,358 4,289 (13,069) Expenditures Current: Culture and recreation 226,275 226,275 166,564 59,711 Capital Outlay 40,329 40,329 - 40,329 Total Expenditures 266,604 266,604 166,564 100,040 Excess (Deficiency) of Revenues Over (Under) Expenditures (249,246) (249,246) (162,275) 86,971 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 $ (89,996) $ (89,996) (3,025) $ 86,971 Fund Balances Beginning of Year 34,121 Fund Balances End of Year 31,096 $ For the Fiscal Year Ended June 30, 2010 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 52,995 $ 52,995 $ 50,841 $ (2,154) $ Personal property - - 1,613 1,613 Special assessments - - 381 381 Intergovernmental 8,840 8,840 8,776 (64) Total Revenues 61,835 61,835 61,611 (224) Expenditures Current: Housing and community development 68,000 68,000 65,000 3,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (6,165) $ (6,165) $ (3,389) 2,776 $ Fund Balances Beginning of Year 16,163 Fund Balances End of Year 12,774 $ For the Fiscal Year Ended June 30, 2010 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 $ 51,428 $ 1,428 $ Expenditures Current: Housing and community development 50,000 50,000 4,179 45,821 Excess of Revenues Over Expenditures - $ - $ 47,249 47,249 $ Fund Balances Beginning of Year 2,568,660 Fund Balances End of Year 2,615,909 $ For the Fiscal Year Ended June 30, 2010 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 329,041 $ 329,041 $ 313,606 $ (15,435) $ Personal property - - 8,348 8,348 Special assessments - - 2,185 2,185 Intergovernmental 1,170,742 1,170,742 575,650 (595,092) Charges for services 101,000 101,000 102,812 1,812 Miscellaneous 12,000 12,000 9,003 (2,997) Total Revenues 1,612,783 1,612,783 1,011,604 (601,179) Expenditures Current: Public works 1,099,420 1,099,420 935,389 164,031 Capital Outlay 585,000 585,000 42,384 542,616 Debt Service Principal 40,000 40,000 - 40,000 Total Expenditures 1,724,420 1,724,420 977,773 746,647 Excess (Deficiency) of Revenues Over (Under) Expenditures (111,637) (111,637) 33,831 145,468 Other Financing Sources Transfers in: Urban revitalization agency fund 15,000 15,000 15,000 - Net Change in Fund Balances $ (96,637) $ (96,637) 48,831 $ 145,468 Fund Balances Beginning of Year 18,044 Fund Balances End of Year 66,875 $ For the Fiscal Year Ended June 30, 2010 City and County of Butte-Silver Bow, Montana Transit Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 112 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Intergovernmental 1,942,285 $ 2,127,413 $ 2,081,793 $ (45,620) $ Charges for services 333,500 333,500 375,238 41,738 Miscellaneous - - 90 90 Private grants and donations 21,000 21,000 29,518 8,518 Total Revenues 2,296,785 2,481,913 2,486,639 4,726 Expenditures Current: Public health 2,857,584 3,042,712 2,665,109 377,603 Capital Outlay 14,016 14,016 13,749 267 Total Expenditures 2,871,600 3,056,728 2,678,858 377,870 (Deficiency) of Revenues (Under) Expenditures (574,815) $ (574,815) $ (192,219) (373,144) $ Fund Balances Beginning of Year 248,160 Fund Balances End of Year 55,941 $ For the Fiscal Year Ended June 30, 2010 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 49,701 $ 49,701 $ 47,651 $ (2,050) $ Personal property - - 1,917 1,917 Intergovernmental 10,987 10,987 10,908 (79) Total Revenues 60,688 60,688 60,476 (212) Expenditures Current: Social and economic services 76,044 76,044 76,044 - (Deficiency) of Revenues (Under) Expenditures (15,356) $ (15,356) $ (15,568) (212) $ Fund Balances Beginning of Year 29,366 Fund Balances End of Year 13,798 $ For the Fiscal Year Ended June 30, 2010 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 43,790 $ 43,790 $ 41,494 $ (2,296) $ Personal property - - 1,230 1,230 Intergovernmental 23,111 23,111 24,580 1,469 Total Revenues 66,901 66,901 67,304 403 Expenditures Current: Social and economic services 71,640 71,640 70,572 1,068 Excess (Deficiency) of Revenues Over (Under) Expenditures (4,739) $ (4,739) $ (3,268) 1,471 $ Fund Balances Beginning of Year 18,383 Fund Balances End of Year 15,115 $ For the Fiscal Year Ended June 30, 2010 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 158,432 $ 158,432 $ 154,929 $ (3,503) $ Personal property - - 11,280 11,280 Special assessments - - 3,405 3,405 Intergovernmental 17,651 17,651 17,524 (127) Miscellaneous - - 20 20 Total Revenues 176,083 176,083 187,158 11,075 Expenditures Current: General government - - 137,688 (137,688) Excess (Deficiency) of Revenues Over (Under) Expenditures 176,083 $ 176,083 $ 49,470 (126,613) $ Fund Balances Beginning of Year (176,082) Fund Balances End of Year (126,612) $ For the Fiscal Year Ended June 30, 2010 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 2,882,689 $ 2,882,689 $ 2,477,495 $ (405,194) $ Personal property - - 68,210 68,210 Special assessments - - 12,795 12,795 Intergovernmental 964,783 1,008,756 1,002,836 (5,920) Private grants and donations - - 5,000 5,000 Miscellaneous - - 10 10 Total Revenues 3,847,472 3,891,445 3,566,346 (325,099) Expenditures Current: Public safety 3,744,863 3,792,836 3,750,807 42,029 Capital Outlay 8,000 4,000 - 4,000 Debt Service: Principal 99,766 99,766 99,766 - Interest 16,838 16,838 16,837 1 Total Expenditures 3,869,467 3,913,440 3,867,410 46,030 (Deficiency) of Revenues (Under) Expenditures (21,995) (21,995) (301,064) (279,069) Other Financing Sources Insurance proceeds 5,000 5,000 3,000 (2,000) Net Change in Fund Balances $ (16,995) $ (16,995) (298,064) $ (281,069) Fund Balances Beginning of Year 705,828 Fund Balances End of Year 407,764 $ For the Fiscal Year Ended June 30, 2010 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 902,257 $ 902,257 $ 862,513 $ (39,744) $ Personal property - - 17,869 17,869 Intergovernmental 37,025 37,025 36,758 (267) Investment earnings - - 536 536 Total Revenues 939,282 939,282 917,676 (21,606) Expenditures Current: General government 1,008,158 1,008,158 980,462 27,696 Excess (Deficiency) of Revenues Over (Under) Expenditures (68,876) $ (68,876) $ (62,786) 6,090 $ Fund Balances Beginning of Year 200,877 Fund Balances End of Year 138,091 $ For the Fiscal Year Ended June 30, 2010 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 31,960 $ 31,960 $ 58,806 $ 26,846 $ Charges for services 40,000 40,000 3,565 (36,435) Total Revenues 71,960 71,960 62,371 (9,589) Expenditures Current: Public safety 89,896 89,896 65,255 24,641 Excess (Deficiency) of Revenues Over (Under) Expenditures (17,936) (17,936) (2,884) 15,052 Other Financing Sources Transfers in - general fund 8,750 8,750 8,750 - Net Change in Fund Balances $ (9,186) $ (9,186) 5,866 $ 15,052 Fund Balances Beginning of Year 118,869 Fund Balances End of Year 124,735 $ For the Fiscal Year Ended June 30, 2010 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 4,165 $ 4,165 $ 14,856 $ 10,691 $ Fund Balances Beginning of Year 2,295 Fund Balances End of Year 17,151 $ For the Fiscal Year Ended June 30, 2010 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 45,157 $ 45,157 $ 43,897 $ (1,260) $ Expenditures Current: Public works 46,678 46,678 43,897 2,781 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,521) $ (1,521) $ - 1,521 $ Fund Balances Beginning of Year - Fund Balances End of Year - $ For the Fiscal Year Ended June 30, 2010 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 310,250 $ 310,250 $ - $ (310,250) $ Expenditures Current: General government 300 300 - 300 Capital Outlay 386,690 386,690 131,468 255,222 Total Expenditures 386,990 386,990 131,468 255,522 (Deficiency) of Revenues (Under) Expenditures (76,740) $ (76,740) $ (131,468) (54,728) $ Fund Balances Beginning of Year 76,448 Fund Balances End of Year (55,020) $ For the Fiscal Year Ended June 30, 2010 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 43 $ 43 $ 37 $ $ Private grants and donations 56,215 56,215 56,566 351 Total Revenues 56,258 56,258 56,603 345 Expenditures Current: General government 63,524 63,524 60,936 2,588 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,266) $ (7,266) $ (4,333) 2,933 $ Fund Balances Beginning of Year 141,901 Fund Balances End of Year 137,568 $ For the Fiscal Year Ended June 30, 2010 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 30,500 $ 30,500 $ 25,730 $ (4,770) $ Expenditures Current: Public works 50,000 50,000 120 49,880 Excess (Deficiency) of Revenues Over (Under) Expenditures (19,500) $ (19,500) $ 25,610 45,110 $ Fund Balances Beginning of Year (69,994) Fund Balances End of Year (44,384) $ For the Fiscal Year Ended June 30, 2010 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 $ 15,869 $ 1,369 $ Other Financing (Uses) Transfers out - parking commission fund (14,500) (14,500) (14,500) - Net Change in Fund Balances $ - $ - 1,369 $ 1,369 Fund Balances Beginning of Year 222 Fund Balances End of Year 1,591 $ For the Fiscal Year Ended June 30, 2010 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 Special assessments 15,000 $ 15,000 $ 18,015 $ 3,015 $ Intergovernmental 3,241 3,241 97 (3,144) Investment earnings 211,000 211,000 117,133 (93,867) Miscellaneous 500 500 157,961 157,461 Total Revenues 229,741 229,741 293,206 63,465 Expenditures Current: Housing and community development 2,916,811 2,916,811 1,055,515 1,861,296 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,687,070) (2,687,070) (762,309) 1,924,761 Other Financing Sources (Uses) Transfers in: Tax increment bond fund 2,088,596 2,088,596 1,957,604 (130,992) RRA fund 30,000 30,000 30,000 - Transfers out: Road fund (45,000) (45,000) (45,000) - General fund (21,450) (21,450) (21,450) - Public archives fund (15,000) (15,000) (15,000) - Transit fund (15,000) (15,000) (15,000) - Total Other Financing Sources (Uses) 2,022,146 2,022,146 1,891,154 (130,992) Net Change in Fund Balances $ (664,924) $ (664,924) 1,128,845 $ 1,793,769 Fund Balances Beginning of Year 5,512,608 Fund Balances End of Year 6,641,453 $ For the Fiscal Year Ended June 30, 2010 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 242,055 $ 242,055 $ 129,576 $ (112,479) $ Rent 350 350 200 (150) Investment earnings 838 838 717 (121) Total Revenues 243,243 243,243 130,493 (112,750) Expenditures Current: Housing and community development 578,020 578,020 227,774 350,246 Debt Service: Principal 103,252 103,252 103,252 - Interest 2,514 2,514 2,514 - Total Expenditures 683,786 683,786 333,540 350,246 Excess (Deficiency) of Revenues Over (Under) Expenditures (440,543) (440,543) (203,047) 237,496 Other Financing Sources: Transfers in: Community development block grant fund 7,300 7,300 3,082 (4,218) General fund 191,113 191,113 191,113 - Total Other Financing Sources 198,413 198,413 194,195 (4,218) Net Change in Fund Balances $ (242,130) $ (242,130) (8,852) $ 233,278 Fund Balances Beginning of Year 242,095 Fund Balances End of Year 233,243 $ For the Fiscal Year Ended June 30, 2010 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 800,000 $ 800,000 $ 566,083 $ (233,917) $ Investment earnings 170,000 170,000 1,681 (168,319) Total Revenues 970,000 $ 970,000 $ 567,764 (402,236) $ Fund Balances Beginning of Year 3,848,433 Fund Balances End of Year 4,416,197 $ For the Fiscal Year Ended June 30, 2010 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 500 $ 500 $ - $ (500) $ Miscellaneous - - - - Total Revenues 500 500 - (500) Expenditures Current: Housing and community development 6,648 6,648 9,836 (3,188) Excess (Deficiency) of Revenues Over (Under) Expenditures (6,148) (6,148) (9,836) 3,688 Other Financing (Uses) Transfers out - community development fund 7,300 7,300 (3,082) 10,382 Net Change in Fund Balances $ 1,152 $ 1,152 (12,918) $ 14,070 Fund Balances Beginning of Year 72,594 Fund Balances End of Year 59,676 $ For the Fiscal Year Ended June 30, 2010 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 15,000 $ 15,000 $ 6,641 $ (8,359) $ Fund Balances Beginning of Year 164,965 Fund Balances End of Year 171,606 $ For the Fiscal Year Ended June 30, 2010 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 288,640 $ 288,640 $ 208,611 $ (80,029) $ Investment earnings 2,500 2,500 602 (1,898) Miscellaneous - - 22 22 Total Revenues 291,140 291,140 209,235 (81,905) Expenditures Current: Public safety 292,922 292,922 246,428 46,494 Capital Outlay 105,000 105,000 - 105,000 Total Expenditures 397,922 397,922 246,428 151,494 Excess (Deficiency) of Revenues Over (Under) Expenditures (106,782) $ (106,782) $ (37,193) 69,589 $ Fund Balances Beginning of Year 402,066 Fund Balances End of Year 364,873 $ For the Fiscal Year Ended June 30, 2010 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 877,226 $ 877,226 $ 23,623 $ (853,603) $ Expenditures Current: General government 292,810 292,810 46,953 245,857 Capital Outlay 750,000 750,000 - 750,000 Total Expenditures 1,042,810 1,042,810 46,953 995,857 Excess (Deficiency) of Revenues Over (Under) Expenditures (165,584) (165,584) (23,330) 142,254 Other Financing Sources Transfers in: Arco fund 134,200 134,200 5,888 (128,312) Net Change in Fund Balances $ (31,384) $ (31,384) (17,442) $ 13,942 Fund Balances Beginning of Year 24,601 Fund Balances End of Year 7,159 $ For the Fiscal Year Ended June 30, 2010 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 1,278,766 $ 1,264,558 $ 268,526 $ (996,032) $ Private grants and donations - - 39,005 39,005 Total Revenues 1,278,766 1,264,558 307,531 (957,027) Expenditures Current: General government 992,113 629,905 193,916 435,989 Capital Outlay - 348,000 136,780 211,220 Total Expenditures 992,113 977,905 330,696 647,209 Excess (Deficiency) of Revenues Over (Under) Expenditures 286,653 $ 286,653 $ (23,165) (309,818) $ Fund Balances Beginning of Year 6,621 Fund Balances End of Year (16,544) $ For the Fiscal Year Ended June 30, 2010 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 21,535 $ 21,535 $ 21,536 $ 1 $ Expenditures Current: Public safety 1,078 1,090 1,090 - Capital Outlay 20,457 20,445 20,445 - Total Expenditures 21,535 21,535 21,535 - Excess (Deficiency) of Revenues Over (Under) Expenditures - $ - $ 1 1 $ Fund Balances Beginning of Year 782 Fund Balances End of Year 783 $ For the Fiscal Year Ended June 30, 2010 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 2,000 $ 2,000 $ 407 $ (1,593) $ Fund Balances Beginning of Year 123,360 Fund Balances End of Year 123,767 $ For the Fiscal Year Ended June 30, 2010 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 2,000 $ 2,000 $ 71 $ (1,929) $ Expenditures Current: General government 15,600 15,600 4,434 11,166 Excess (Deficiency) of Revenues Over (Under) Expenditures (13,600) $ (13,600) $ (4,363) 9,237 $ Fund Balances Beginning of Year 189,364 Fund Balances End of Year 185,001 $ For the Fiscal Year Ended June 30, 2010 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 24,000 $ 24,000 $ 2,822 $ (21,178) $ Expenditures Current: General government 241,115 241,115 123,097 118,018 Excess (Deficiency) of Revenues Over (Under) Expenditures (217,115) (217,115) (120,275) 96,840 Other Financing Sources Transfers out: CTEP fund (134,200) (134,200) (5,888) (128,312) Net Change in Fund Balances $ (351,315) $ (351,315) (126,163) $ (31,472) Fund Balances Beginning of Year 1,084,519 Fund Balances End of Year 958,356 $ For the Fiscal Year Ended June 30, 2010 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 - $ - $ 35,841 $ 35,841 $ Personal property - - 23 23 Special assessments - - 296 296 Investment earnings 250 250 49 (201) Miscellaneous - - 30,000 30,000 Total Revenues 250 250 66,209 65,959 Expenditures Current: Housing and community development 27,250 27,250 6,560 20,690 Excess (Deficiency) of Revenues Over (Under) Expenditures (27,000) (27,000) 59,649 86,649 Other Financing Sources (Uses) Transfer from URA 32,091 32,091 - (32,091) Transfer to revolving loan fund (30,000) (30,000) (30,000) - Total Other Financing Sources (Uses) 2,091 2,091 (30,000) (32,091) Net Change in Fund Balances $ (24,909) $ (24,909) 29,649 $ 54,558 Fund Balances Beginning of Year (395,291) Fund Balances End of Year (365,642) $ For the Fiscal Year Ended June 30, 2010 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 $ 7,009 $ 159 $ Fund Balances Beginning of Year 34,270 Fund Balances End of Year 41,279 $ For the Fiscal Year Ended June 30, 2010 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 116,545 $ 116,545 $ 105,469 $ (11,076) $ Expenditures Current: Public safety 116,552 116,552 105,233 11,319 Excess (Deficiency) of Revenues Over (Under) Expenditures $ $ 236 243 $ Fund Balances Beginning of Year 256 Fund Balances End of Year 492 $ For the Fiscal Year Ended June 30, 2010 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 25,000 $ 25,000 $ 10,510 $ (14,490) $ Private grants and contributions 6,005 6,005 4,875 (1,130) Total Revenues 31,005 31,005 15,385 (15,620) Expenditures Current: Culture and recreation 31,005 31,005 29,875 1,130 (Deficiency) of Revenues (Under) Expenditures - $ - $ (14,490) (14,490) $ Fund Balances Beginning of Year (1,751) Fund Balances End of Year (16,241) $ For the Fiscal Year Ended June 30, 2010 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 65,000 $ 65,000 $ - $ (65,000) $ Expenditures Current: Housing and community development 65,000 65,000 13,250 51,750 (Deficiency) of Revenues (Under) Expenditures - $ - $ (13,250) (13,250) $ Fund Balances Beginning of Year 67,986 Fund Balances End of Year 54,736 $ For the Fiscal Year Ended June 30, 2010 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 59 $ 59 $ 59 $ - $ Private grants and donations 116,733 116,733 114,540 (2,193) Total Revenues 116,792 116,792 114,599 (2,193) Expenditures Current: General government 118,156 118,156 115,026 3,130 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,364) $ (1,364) $ (427) 937 $ Fund Balances Beginning of Year 2,397 Fund Balances End of Year 1,970 $ For the Fiscal Year Ended June 30, 2010 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 $ 20,581 $ 581 $ Fund Balances Beginning of Year 620,808 Fund Balances End of Year 641,389 $ For the Fiscal Year Ended June 30, 2010 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 200 $ 200 $ 49 $ (151) $ Fund Balances Beginning of Year 22,323 Fund Balances End of Year 22,372 $ For the Fiscal Year Ended June 30, 2010 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 248 $ 248 $ 248 $ - $ Private grants and donations 515,000 515,000 557,848 42,848 Total Revenues 515,248 515,248 558,096 42,848 Expenditures Current: Public health 582,964 582,964 541,653 41,311 Capital Outlay - - - - Total Expenditures 582,964 582,964 541,653 41,311 Excess (Deficiency) of Revenues Over (Under) Expenditures (67,716) $ (67,716) $ 16,443 84,159 $ Fund Balances Beginning of Year (74,018) Fund Balances End of Year (57,575) $ For the Fiscal Year Ended June 30, 2010 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 4,212,879 $ 4,212,879 $ 618,828 $ (3,594,051) $ Expenditures Current: General government 735,983 735,983 90,057 645,926 Capital Outlay 3,243,735 3,243,735 315,535 2,928,200 Total Expenditures 3,979,718 3,979,718 405,592 3,574,126 Excess (Deficiency) of Revenues Over (Under) Expenditures 233,161 $ 233,161 $ 213,236 (19,925) $ Fund Balances Beginning of Year (164,094) Fund Balances End of Year 49,142 $ For the Fiscal Year Ended June 30, 2010 City and County of Butte-Silver Bow, Montana Natural Resource Damages Program 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 8,902 $ 8,902 $ 7,972 $ (930) $ Expenditures Current: Housing and community development - - - - Excess of Revenues Over Expenditures 8,902 8,902 7,972 (930) Other Financing (Uses) Transfers out - East butte RRA (30,000) (30,000) - 30,000 Net Change in Fund Balances $ (21,098) $ (21,098) 7,972 $ 29,070 Fund Balances Beginning of Year 272,793 Fund Balances End of Year 280,765 $ For the Fiscal Year Ended June 30, 2010 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 90,000 $ 90,000 $ 17,858 $ (72,142) $ Fund Balances Beginning of Year 5,440,383 Fund Balances End of Year 5,458,241 $ For the Fiscal Year Ended June 30, 2010 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 151 $ 151 $ 151 $ - $ Private grants and donations 254,690 254,690 842,009 587,319 Total Revenues 254,841 254,841 842,160 587,319 Expenditures Current: Public works 511,525 517,525 473,713 43,812 Capital Outlay 6,000 491,200 443,732 47,468 Total Expenditures 517,525 1,008,725 917,445 91,280 Excess (Deficiency) of Revenues Over (Under) Expenditures (262,684) $ (753,884) $ (75,285) 678,599 $ Fund Balances Beginning of Year 42,313 Fund Balances End of Year (32,972) $ For the Fiscal Year Ended June 30, 2010 City and County of Butte-Silver Bow, Montana ARCO Superfund Stormwater Capital Improvement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 150 ---PAGE BREAK--- Fund Balances Beginning of Year (8,744) Fund Balances End of Year (8,744) $ For the Fiscal Year Ended June 30, 2010 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 83,210 $ 92,645 $ 25,858 $ 62,391 $ 1,128 $ - $ - $ 265,232 $ Investments 891,085 - - - - - - 891,085 Restricted assets - investments 162,750 - - - - - 3,508,244 3,670,994 Property taxes receivable 405,090 - 18,903 111,684 15,740 32,165 - 583,582 Total Assets 1,542,135 $ 92,645 $ 44,761 $ 174,075 $ 16,868 $ 32,165 $ 3,508,244 $ 5,410,893 $ Liabilities and Fund Balances Liabilities Interfund payable - $ - $ - $ - $ - $ 84,109 $ - $ 84,109 $ Deferred revenue 405,090 - 18,903 111,684 15,740 32,165 - 583,582 Total Liabilities 405,090 - 18,903 111,684 15,740 116,274 - 667,691 Fund Balances Reserved for: Debt service 162,750 - 25,858 62,391 1,128 (84,109) 3,508,244 3,676,262 Accumulation of reserve authorized by State Law 974,295 92,645 - - - - - 1,066,940 Total Fund Balances 1,137,045 92,645 25,858 62,391 1,128 (84,109) 3,508,244 4,743,202 Total Liabilities and Fund Balances 1,542,135 $ 92,645 $ 44,761 $ 174,075 $ 16,868 $ 32,165 $ 3,508,244 $ 5,326,784 $ June 30, 2010 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 1,314,748 $ - $ 157,244 $ 818,068 $ 125,692 $ 323,879 $ - $ 2,739,631 $ Intergovernmental 283,801 - 21,627 - - 12,174 - 317,602 Miscellaneous 523,613 - - - - - - 523,613 Investment earnings 3,117 - - - - - - 3,117 Total Revenues 2,125,279 - 178,871 818,068 125,692 336,053 - 3,583,963 Expenditures Current: Culture and recreation - - 500 - - 550 - 1,050 Housing and community development - - - - - - 10,823 10,823 Debt Service: Principal retirement 55,000 40,000 110,000 520,000 100,214 145,000 2,460,000 3,430,214 Interest and fiscal charges 28,198 8,465 78,218 403,968 26,864 273,808 1,254,192 2,073,713 Total Expenditures 83,198 48,465 188,718 923,968 127,078 419,358 3,725,015 5,515,800 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,042,081 (48,465) (9,847) (105,900) (1,386) (83,305) (3,725,015) (1,931,837) Other Financing Sources (Uses) Transfers in - 49,713 - - - - 3,985,418 4,035,131 Transfers out (1,957,604) - - - - - - (1,957,604) Total Other Financing Sources (Uses) (1,957,604) 49,713 - - - - 3,985,418 2,077,527 Net Change in Fund Balances 84,477 1,248 (9,847) (105,900) (1,386) (83,305) 260,403 145,690 Fund Balances Beginning of Year 1,052,568 91,397 35,705 168,291 2,514 (804) 3,247,841 4,597,512 Fund Balances End of Year 1,137,045 $ 92,645 $ 25,858 $ 62,391 $ 1,128 $ (84,109) $ 3,508,244 $ 4,743,202 $ 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, 2010 153 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Taxes: Real property 1,850,000 $ 1,850,000 $ 1,313,501 $ (536,499) $ Tax title and property tax sale 2,500 2,500 1,247 (1,253) Intergovernmental 283,801 283,801 283,801 - Investment earnings - - 3,117 3,117 Miscellaneous - - 523,613 523,613 Total Revenues 2,136,301 2,136,301 2,125,279 (11,022) Expenditures Debt Service: Principal 55,000 55,000 55,000 - Interest 28,198 28,198 28,198 - Total Expenditures 83,198 83,198 83,198 - Excess (Deficiency) of Revenues Over (Under) Expenditures 2,053,103 2,053,103 2,042,081 (11,022) Other Financing (Uses) Transfers out: Urban revitalization agency economic development fund (2,088,596) (2,088,596) (1,957,604) - Net Changes in Fund Balances (35,493) $ (35,493) $ 84,477 (11,022) $ Fund Balances Beginning of Year 1,052,568 Fund Balances End of Year 1,137,045 $ For the Fiscal Year Ended June 30, 2010 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 40,000 $ 40,000 $ 40,000 $ - $ Interest 8,465 8,465 8,465 - Total Expenditures 48,465 48,465 48,465 - Other Financing Sources Transfers in: Combined special improvement district 49,715 49,715 49,713 Net Change in Fund Balances (1,250) $ (1,250) $ 1,248 $ Fund Balances Beginning of Year 91,397 Fund Balances End of Year 92,645 $ For the Fiscal Year Ended June 30, 2010 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 159,894 $ 159,894 $ 156,258 $ (3,636) $ Personal property - - 986 986 Intergovernmental 21,784 21,784 21,627 (157) Total Revenues 181,678 181,678 178,871 (2,807) Expenditures Current: Culture and recreation 1,000 1,000 500 500 Debt Service: Principal 110,000 110,000 110,000 - Interest 78,218 78,218 78,218 - Total Expenditures 189,218 189,218 188,718 500 (Deficiency) of Revenues (Under) Expenditures (7,540) $ (7,540) $ (9,847) (2,307) $ Fund Balances Beginning of Year 35,705 Fund Balances End of Year 25,858 $ For the Fiscal Year Ended June 30, 2010 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 829,503 $ 829,503 $ 797,815 $ (31,688) $ Personal property - - 20,253 20,253 Total Revenues 829,503 829,503 818,068 (11,435) Expenditures Current: Public safety 1,500 1,500 - 1,500 Debt Service: Principal 520,000 520,000 520,000 - Interest 403,968 403,968 403,968 - Total Expenditures 925,468 925,468 923,968 1,500 (Deficiency) of Revenues (Under) Expenditures (95,965) $ (95,965) $ (105,900) (9,935) $ Fund Balances Beginning of Year 168,291 Fund Balances End of Year 62,391 $ For the Fiscal Year Ended June 30, 2010 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 129,437 $ 129,437 $ 122,591 $ (6,846) $ Personal property - 2,052 2,662 610 Miscellaneous - - 439 439 Total Revenues 129,437 131,489 125,692 (5,797) Expenditures Debt Service: Principal 100,214 100,214 100,214 - Interest 26,864 26,864 26,864 - Total Expenditures 127,078 127,078 127,078 - Excess (Deficiency) of Revenues Over (Under) Expenditures 2,359 $ 4,411 $ (1,386) (5,797) $ Fund Balances Beginning of Year 2,514 Fund Balances End of Year 1,128 $ For the Fiscal Year Ended June 30, 2010 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 348,418 $ 348,418 $ 321,659 $ (26,759) $ Personal property - - 2,220 2,220 Intergovernmental - - 12,174 12,174 Total Revenues 348,418 348,418 336,053 (12,365) Expenditures Current: Cultural and recreation 1,200 1,200 550 650 Debt Service: Principal 145,000 145,000 145,000 - Interest 181,787 273,808 273,808 - Total Expenditures 327,987 420,008 419,358 650 Excess (Deficiency) of Revenues Over (Under) Expenditures 20,431 $ (71,590) $ (83,305) (11,715) $ Fund Balances Beginning of Year (804) Fund Balances End of Year (84,109) $ For the Fiscal Year Ended June 30, 2010 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 1,500 1,500 - (1,500) Total Revenues 501,500 501,500 - (501,500) Expenditures Current: Housing and community development 225,000 225,000 10,823 214,177 Debt Service: Principal 2,460,000 2,460,000 2,460,000 - Interest 1,254,192 1,254,192 1,254,192 - Total Expenditures 3,939,192 3,939,192 3,725,015 214,177 (Deficiency) of Revenue (Under) Expenditures (3,437,692) (3,437,692) (3,725,015) (287,323) Other Financing Sources Transfers in - Ramsey TIFID#2 fund 3,769,237 3,769,237 3,985,418 216,181 Net Change in Fund Balances $ 331,545 $ 331,545 260,403 $ (71,142) Fund Balances Beginning of Year 3,247,841 Fund Balances End of Year 3,508,244 $ For the Fiscal Year Ended June 30, 2010 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 Detention Center Total Hard Rock Junk Vehicle Water Distribution Archives Center and LEA Nonmajor Capital Mine Capital Highway Capital System Building Renovation Administration Capital Projects Improvements Trust Abandonment Reserve Improvements Fund Project Projects Funds Assets Cash and cash equivalents 2,004,823 $ - $ 228 $ 3,526 $ 278,154 $ 1,671,473 $ 675 $ 11,788 $ 3,970,667 $ Investments 1,669,874 127,032 145,466 3,054 - 69,246 - 46,683 2,061,355 Receivables: Accounts 107 - - - - - - - 107 Special assessments - - - - - - - - - Loans 19,087 - - - - - - - 19,087 Total Assets 3,693,891 $ 127,032 $ 145,694 $ 6,580 $ 278,154 $ 1,740,719 $ 675 $ 58,471 $ 6,051,216 $ Liabilities and Fund Balances Liabilities Vouchers payable 61,450 $ - $ - $ - $ - $ 552,055 $ - $ - $ 613,505 $ Accounts payable - - - - - - 28,939 28,939 Deferred revenue 88,374 - - - - - - - 88,374 Total Liabilities 149,824 - - - - 552,055 - 28,939 730,818 Fund Balances Unreserved, undesignated 3,544,067 127,032 145,694 6,580 278,154 1,188,664 675 29,532 5,320,398 Total Liabilities and Fund Balances 3,693,891 $ 127,032 $ 145,694 $ 6,580 $ 278,154 $ 1,740,719 $ 675 $ 58,471 $ 6,051,216 $ City and County of Butte-Silver Bow, Montana Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2010 161 ---PAGE BREAK--- Silver Lake Civic Detention Center Total Hard Rock Junk Vehicle Water Distribution Archives Center and LEA Nonmajor Capital Mine Capital Highway Capital System Building Renovation Administration Capital Projects Improvements Trust Abandonment Reserve Improvements Fund Project Projects Funds Revenues Intergovernmental 50,326 $ - $ - $ - $ - $ 48,647 $ - $ - $ 98,973 $ Fines and forfeitures 83,181 - - - - - - - 83,181 Miscellaneous 29,916 - - - - - - - 29,916 Investment earnings 15,392 417 475 9 - 9,653 - 154 26,100 Total Revenues 178,815 417 475 9 - 58,300 - 154 238,170 Expenditures Current General government 39,741 - - - - - - - 39,741 Capital Outlay 442,381 - - - - 4,190,482 - - 4,632,863 Total Expenditures 482,122 - - - - 4,190,482 - - 4,672,604 Excess (Deficiency) of Revenues Over (Under) Expenditures (303,307) 417 475 9 - (4,132,182) - 154 (4,434,434) Fund Balances Beginning of Year 3,847,374 126,615 145,219 6,571 278,154 5,320,846 675 29,378 9,754,832 Fund Balances End of Year 3,544,067 $ 127,032 $ 145,694 $ 6,580 $ 278,154 $ 1,188,664 $ 675 $ 29,532 $ 5,320,398 $ 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, 2010 162 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Fines and forfeitures 150,000 $ 90,000 $ 83,181 $ (6,819) $ Intergovernmental 19 19 50,326 50,307 Miscellaneous - - 29,916 29,916 Investment earnings 60,000 60,000 15,392 (44,608) Total Revenues 210,019 150,019 178,815 28,796 Expenditures Current: General government 28,391 40,391 39,741 650 Capital Outlay: Public safety 120,000 120,000 119,112 888 General government 937,297 925,297 323,269 602,028 Total Expenditures 1,085,688 1,085,688 482,122 603,566 Excess (Deficiency) of Revenues Over (Under) Expenditures (875,669) $ (935,669) $ (303,307) 632,362 $ Fund Balances Beginning of Year 3,847,374 Fund Balances End of Year 3,544,067 $ For the Fiscal Year Ended June 30, 2010 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 - $ - $ 417 $ 417 $ Fund Balances Beginning of Year 126,615 Fund Balances End of Year 127,032 $ For the Fiscal Year Ended June 30, 2010 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 2,400 $ 2,400 $ 475 $ (1,925) $ Expenditures Capital Outlay: Public works 100,000 100,000 - 100,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (97,600) $ (97,600) $ 475 98,075 $ Fund Balances Beginning of Year 145,219 Fund Balances End of Year 145,694 $ For the Fiscal Year Ended June 30, 2010 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 6,571 Fund Balances End of Year 6,580 $ For the Fiscal Year Ended June 30, 2010 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, 2010 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 45,000 $ 45,000 $ 48,647 $ 3,647 $ Investment earnings 30,000 30,000 9,653 (20,347) Total Revenues 75,000 75,000 58,300 (16,700) Expenditures Capital Outlay: Culture and recreation 5,310,000 5,310,000 4,190,482 1,119,518 (Deficiency) of Revenues (Under) Expenditures (5,235,000) (5,235,000) (4,132,182) (1,136,218) Fund Balances Beginning of Year 5,320,846 Fund Balances End of Year 1,188,664 $ For the Fiscal Year Ended June 30, 2010 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 Fund Balances Beginning of Year 675 Fund Balances End of Year 675 $ For the Fiscal Year Ended June 30, 2010 City and County of Butte-Silver Bow, Montana Civic Center Renovation Fund Schedule of Expenditures and Changes in Fund Balances - Budget and Actual 169 ---PAGE BREAK--- Variance Original Final With Final Budget Budget Actual Budget Revenues Investment earnings 750 $ 750 $ 154 $ (596) $ Fund Balances Beginning of Year 29,378 Fund Balances End of Year 29,378 $ For the Fiscal Year Ended June 30, 2010 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 170 ---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 76,498 $ - $ 163,808 $ 678,229 $ - $ 918,535 $ Investments - - 84,800 419,393 - 504,193 Accounts receivable - 65,343 10,370 81,771 - 157,484 Inventory - 6,555 - - - 6,555 Total Current Assets 76,498 71,898 258,978 1,179,393 - 1,586,767 Noncurrent Assets: Capital assets: Nondepreciable - - 5,433 - - 5,433 Depreciable, net 364,895 13,158 232,680 15,879 1,683,695 2,310,307 Total Noncurrent Assets 364,895 13,158 238,113 15,879 1,683,695 2,315,740 Total Assets 441,393 85,056 497,091 1,195,272 1,683,695 3,902,507 Liabilities Current Liabilities: Vouchers payable 1,435 6,189 764 17,207 - 25,595 Accrued wages and benefits payable - 16,804 3,968 3,543 - 24,315 Compensated absences - 2,814 53 - - 2,867 Interfund payable - 3,959 - - - 3,959 Deferred revenue - - 4,617 - - 4,617 Total Current Liabilities 1,435 29,766 9,402 20,750 - 61,353 Long-Term Liabilities: Compensated absences 25,326 476 - - 25,802 Total Liabilities 1,435 55,092 9,878 20,750 - 87,155 Net Assets Invested in capital assets 364,895 13,158 238,113 15,879 1,683,695 2,315,740 Unrestricted 75,063 16,806 249,100 1,158,643 - 1,499,612 Total Net Assets 439,958 $ 29,964 $ 487,213 $ 1,174,522 $ 1,683,695 $ 3,815,352 $ Combining Statement of Net Assets City and County of Butte-Silver Bow, Montana Nonmajor Enterprise Funds June 30, 2010 171 ---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, 2010 Small Silver Lake MR Total Nonmajor Community Home Business Water Infrastructure Enterprise Facilities Health Incubator System Project Funds Operating Revenues Charges for services - $ 391,260 $ 92,619 $ 243,873 $ - $ 727,752 $ Miscellaneous 75,653 205 1,497 - - 77,355 Total Operating Revenues 75,653 391,465 94,116 243,873 - 805,107 Operating Expenses Personal services 7,341 303,962 56,502 80,387 - 448,192 Operation and maintenance 59,519 149,426 75,033 141,199 - 425,177 Depreciation 18,128 1,753 27,976 6,920 92,681 147,458 Total Operating Expenses 84,988 455,141 159,511 228,506 92,681 1,020,827 Operating Income (Loss) (9,335) (63,676) (65,395) 15,367 (92,681) (215,720) Non-Operating Revenues (Expenses) Investment earnings - - 277 1,372 - 1,649 Total Non-Operating Revenues (Expenses) - - 277 1,372 - 1,649 Income (Loss) Before Tranfers In (Out) (9,335) (63,676) (65,118) 16,739 (92,681) (214,071) Transfers in (out): General fund - - 38,735 - - 38,735 Ramsay TIFID #2 fund - - 15,000 - - 15,000 Change in Net Assets (9,335) (63,676) (11,383) 16,739 (92,681) (160,336) Net Assets Beginning of Year 449,293 93,640 498,596 1,157,783 1,776,376 3,975,688 Net Assets End of Year 439,958 $ 29,964 $ 487,213 $ 1,174,522 $ 1,683,695 $ 3,815,352 $ 172 ---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, 2010 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 $ # 409,108 $ # 91,629 $ # 298,574 $ - $ 874,957 $ Cash payments for personal services (7,415) (301,862) (56,707) (80,597) - (446,581) Cash payments for goods and services (58,083) (146,836) (75,154) (125,320) - (405,393) Net Cash Provided by (Used in) Operating Activities 10,148 (39,590) (40,232) 92,657 - 22,983 Cash Flows from Noncapital Financing Activities Transfers in - - 53,735 - - 53,735 Cash Flows from Capital and Related Financing Activities Payments for capital acquisitions - - - (9,511) - (9,511) Net Cash Provided by (Used in) Capital and Related Financing Activities - - - (9,511) - (9,511) Cash Flows from Investing Activities Interest on investments - - 276 1,372 - 1,648 Net Increase (Decrease) in Cash and Cash Equivalents 10,148 (39,590) 13,779 84,518 - 68,855 Cash and Cash Equivalents Beginning of Year 66,350 39,590 234,829 1,013,104 - 1,353,873 Cash and Cash Equivalents End of Year 76,498 $ - $ 248,608 $ 1,097,622 $ - $ 1,422,728 $ Reconciliation to Combining Statement of Net Assets Cash and cash equivalents 76,498 $ - $ 163,808 $ 678,229 $ - $ 918,535 $ Investments - - 84,800 419,393 - 504,193 Total 76,498 $ - $ 248,608 $ 1,097,622 $ - $ 1,422,728 $ 173 ---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, 2010 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) (9,335) $ (63,676) $ (65,395) $ 15,367 $ (92,681) $ (215,720) $ Adjustments: Depreciation 18,128 1,753 27,976 6,920 92,681 147,458 (Increase) Decrease in Assets: Accounts receivable - 17,645 (2,485) 54,804 - 69,964 Inventory - 151 - - - 151 Increase (Decrease) in Liabilities: Accounts payable 1,435 1,561 (427) 15,776 - 18,345 Accrued wages and benefits payable (80) 1,895 16 (210) - 1,621 Compensated absences payable - 1,081 83 - - 1,164 Net Cash Provided by (Used in) Operating Activities 10,148 $ (39,590) $ (40,232) $ 92,657 $ - $ 22,983 $ 174 ---PAGE BREAK--- 175 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 385,149 $ 97,525 $ 329,778 $ 223,639 $ 1,036,091 $ Accounts receivable 4,164 9 1,374 - 5,547 Total Current Assets 389,313 97,534 331,152 223,639 1,041,638 Noncurrent Assets: Capital assets: Nondepreciable 40,000 - - - 40,000 Depreciable, net 1,383,972 - 6,519 4,775 1,395,266 Total Noncurrent Assets 1,423,972 - 6,519 4,775 1,435,266 Total Assets 1,813,285 97,534 337,671 228,414 2,476,904 Liabilities Current Liabilities: Vouchers payable 65,611 2,237 4,158 360 72,366 Accounts payable - - - - - Accrued wages and benefits payable 30,825 14,285 15,861 1,469 62,440 Compensated absences payable 6,453 2,778 2,985 526 12,742 Total Current Liabilities 102,889 19,300 23,004 2,355 147,548 Long-term Liabilities Compensated absences payable 58,078 25,002 26,862 4,738 114,680 Total Liabilities 160,967 44,302 49,866 7,093 262,228 Net Assets Invested in capital assets 1,423,972 - 6,519 4,775 1,435,266 Unrestricted 228,346 53,232 281,286 216,546 779,410 Total Net Assets 1,652,318 $ 53,232 $ 287,805 $ 221,321 $ 2,214,676 $ City and County of Butte-Silver Bow, Montana June 30, 2010 Internal Service Funds Combining Statement of Net Assets 176 ---PAGE BREAK--- Central Equipment Central Administration Services Central EDP & Communications GIS Services Total Operating Revenues Charges for services 1,297,089 $ 358,369 $ 421,606 $ 40,645 $ 2,117,709 $ Miscellaneous 125 30 - 799 954 Total Operating Revenues 1,297,214 358,399 421,606 41,444 2,118,663 Operating Expenses Personal services 654,738 276,200 282,645 51,035 1,264,618 Operations and maintenance 728,326 73,945 168,855 2,750 973,876 Depreciation 254,985 54 5,181 1,083 261,303 Total Operating Expenses 1,638,049 350,199 456,681 54,868 2,499,797 Operating Income (Loss) (340,835) 8,200 (35,075) (13,424) (381,134) Non-Operating Revenues Intergovernmental 445 192 216 33 886 Change in Net Assets (340,390) 8,392 (34,859) (13,391) (380,248) Total Net Assets Beginning of Year 1,992,708 44,840 322,664 234,712 2,594,924 Total Net Assets End of Year 1,652,318 $ 53,232 $ 287,805 $ 221,321 $ 2,214,676 $ 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, 2010 Internal Service Funds 177 ---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 1,293,049 $ 358,580 $ 423,229 $ 69,101 $ 2,143,959 $ Cash payments for personnel services (623,468) (261,823) (266,569) (51,888) (1,203,748) Cash payments for goods and services (678,691) (77,543) (185,698) (2,454) (944,386) Net Cash Provided by Operating Activities (9,110) 19,214 (29,038) 14,759 (4,175) Cash Flows from Noncapital Financing Activities Intergovernmental 445 0 192 216 33 886 Cash Flows from Capital and Related Financing Activities Payments for capital acquisitions (129,236) - - - (129,236) Net Increase (Decrease) in Cash and Cash Equivalents (137,901) 19,406 (28,822) 14,792 (132,525) Cash and Cash Equivalents Beginning of Year 523,050 78,119 358,600 208,847 1,168,616 Cash and Cash Equivalents End of Year 385,149 $ 97,525 $ 329,778 $ 223,639 $ 1,036,091 $ Combining Statement of Cash Flows City and County of Butte-Silver Bow, Montana For the Fiscal Year Ended June 30, 2010 Internal Service Funds 178 ---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) (340,835) $ 8,200 $ (35,075) $ (13,424) $ (381,134) $ Adjustments: Depreciation 254,985 54 5,181 1,083 261,303 Capital asset adjustments 330 444 - 774 (Increase) Decrease in Assets: Accounts receivable (166) (222) 29,244 28,847 Increase (Decrease) in Liabilities: Vouchers payable 61,321 168 (1,851) 275 59,913 Accounts payable - - (2,880) - (2,880) Accrued wages and benefits payable 4,489 2,917 1,682 (2,355) 6,733 Compensated absences payable 10,766 7,884 3,683 (64) 22,269 Net Cash Provided by Operating Activities (9,110) $ 19,214 $ (29,038) $ 14,759 $ (4,175) $ City and County of Butte-Silver Bow, Montana Combining Statement of Cash Flows Internal Service Funds For the Fiscal Year Ended June 30, 2010 179 ---PAGE BREAK--- 180 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 7,632,970 $ 1,304,701 $ 8,937,671 $ Net Assets Net assets held in trust for pool participants 7,632,970 $ 1,304,701 $ 8,937,671 $ City and County of Butte-Silver Bow, Montana June 30, 2010 Trust Funds Combining Statement of Fiduciary Net Assets 181 ---PAGE BREAK--- School District #1 School District #1 Individual External Investment Investment Funds Pool Total Additions Shares and investments purchased 5,035,363 $ 193,845,864 $ 198,881,227 $ Investment earnings 202,823 58,149 260,972 Total Additions 5,238,186 193,904,013 199,142,199 Deductions Shares and investments redeemed 5,037,000 193,845,864 198,882,864 Investment earnings distributed to School District #1 - - - Total Deductions 5,037,000 193,845,864 198,882,864 Increase (Decrease) in Net Assets 201,186 58,149 259,335 Net Assets Held in Trust For Pool Participants Beginning of Year 7,431,785 1,246,551 8,678,336 Net Assets Held in Trust For Pool Participants End of Year 7,632,971 $ 1,304,700 $ 8,937,671 $ City and County of Butte-Silver Bow, Montana For the Fiscal Year Ended June 30, 2010 Trust Funds Combining Statement of Changes in Fiduciary Net Assets 182 ---PAGE BREAK--- Balance Balance June 30, 2009 Additions Deductions June 30, 2010 Property Tax Fund Assets Cash and cash equivalents 161,056 $ 1,018,333 $ 603,643 $ 575,746 $ Investments 1,001,675 3,219 25,000 979,894 Receivables 2,031,232 20,290,429 19,551,084 2,770,578 Total Assets 3,193,963 $ 21,311,981 $ 20,179,727 $ 4,326,218 $ Liabilities Accounts payable 746,354 $ 418,927 $ 119,011 $ 1,046,270 $ Interest payable 230,362 3,217 - 233,579 Intergovernmental payable: Due to special districts 396,568 158,199 119,534 435,233 Due to state 438,662 5,595,779 5,398,408 636,033 Due to schools 1,161,174 13,498,188 12,992,989 1,666,373 Due to component unit 38,541 198,598 161,940 75,199 Due to cities and towns 182,303 1,223,409 1,172,180 233,532 Total Liabilities 3,193,963 $ 21,096,317 $ 19,964,062 $ 4,326,218 $ Balance Balance School District Trust Fund June 30, 2009 Additions Deductions June 30, 2010 Assets Cash and cash equivalents 22,588,436 $ 246,022,697 $ 244,485,887 $ 24,125,246 $ Liabilities Due to schools 22,588,436 $ 246,022,697 $ 244,485,887 $ 24,125,246 $ For the Fiscal Year Ended June 30, 2010 City and County of Butte-Silver Bow, Montana Statement of Changes in Fiduciary Assets and Liabilities 183 ---PAGE BREAK--- Balance Balance June 30, 2009 Additions Deductions June 30, 2010 Fees & Judgments Due to State Assets Cash and cash equivalents 624,010 $ 13,469,735 $ 13,544,449 $ 549,296 $ Receivables 15,908 - 15,908 - Total Assets 639,918 $ 13,469,735 $ 13,560,357 $ 549,296 $ Liabilities Due to state 639,918 $ 13,453,827 $ 13,544,449 $ 549,296 $ Balance Balance Tax Deed Land & Redemption Fund June 30, 2009 Additions Deductions June 30, 2010 Assets Cash and cash equivalents 25,558 $ 120,857 $ 139,657 $ 6,758 $ Contracts receivable 2,626 85,722 86,210 2,138 Land acquired by tax deed 275,521 - 13,980 261,541 Total Assets 303,705 $ 206,579 $ 239,847 $ 270,437 $ Liabilities Accounts payable 303,705 $ 120,369 $ 158,281 $ 265,793 $ Vouchers payable - 31,545 26,901 4,644 Total Liabilities 303,705 $ 151,914 $ 185,182 $ 270,437 $ Balance Balance Butte-Silver Bow Trust Funds June 30, 2009 Additions Deductions June 30, 2010 Assets Cash and cash equivalents 128,555 $ 37,484 $ 69,982 $ 96,057 $ Investments 387,070 1,271 - 388,341 Total Assets 515,625 $ 38,755 $ 69,982 $ 484,398 $ Liabilities Accounts payable 515,625 $ 40,186 $ 71,532 $ 484,279 $ Vouchers payable - 2,856 2,737 119 Total Liabilities 515,625 $ 43,042 $ 74,269 $ 484,398 $ For the Fiscal Year Ended June 30, 2010 City and County of Butte-Silver Bow, Montana Statement of Changes in Fiduciary Assets and Liabilities 184 ---PAGE BREAK--- Balance Balance June 30, 2009 Additions Deductions June 30, 2010 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, 2010 City and County of Butte-Silver Bow, Montana Statement of Changes in Fiduciary Assets and Liabilities 185 ---PAGE BREAK--- ---PAGE BREAK--- Statistical Section ---PAGE BREAK--- ---PAGE BREAK--- Contents Exhibits Financial Trends I - XIIA Page 189 Government-wide Net Assets by Category I 190 Chart-Government-wide Net Assets by Category IA 191 Changes in Net Assets - Governmental Activities II 192 Changes in Net Assets - Governmental Activities - Percentage of Total III 193 Changes in Net Assets - Business-type Activities IV 194 Changes in Net Assets - Business-type Activities - Percentage of Total V 195 Changes in Net Assets - Total VI 196 Tax Revenues by Source - Governmental Funds VII 197 Chart-Tax Revenues by Source - Governmental Funds VIIA 198 Fund Balances - Governmental Funds VIII 199 General Governmental Revenues by Source (Unaudited) IX 200 General Governmental Expenditures by Function (Unaudited) X 201 General Governmental Current Expenditures by Function (Unaudited) XI 202 Changes in Fund Balances - Governmental Funds XII 203 Chart-Changes in Fund Balances - Governmental Funds XIIA Revenue Capacity XIII - XVI Page 204 Assessed Market Value XIII 205 Direct and Overlapping Property Tax Rates XIV 206 Principal Property Taxpayers XV 207 Property Tax Levies and Collections1 XVI Debt Capacity XVII - XXI Page 208 Ratios of Total Debt Oustanding by Type XVII 209 Ratio of General Bonded Debt Outstanding XVIII 210 Governmental Activities Direct and Overlapping Debt XIX 211 Legal Debt Margin XX 212 Schedule of Revenue Bond Coverage XXI Demographic and Economic Information XXII - XXIII Page 213 Demographic and Economic Statistics XXII 214 Top Twenty Private Employers XXIII Operating Information XXIV - XXVI Page 215 Full-time Equivalent Employees by Function XXIV 216 Operating Indicators by Function/Program XXV 217 Capital Asset and Infastructure Statistics by Function/Program XXVI Data Source: 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. 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 188 ---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 Governmental Activities Invested in capital assets, net of related debt3 (19,914,298) $ (8,224,231) $ (4,973,943) $ (1,301,770) $ 37,880,187 $ 38,272,244 $ 38,442,287 $ 47,028,355 $ 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 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 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 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 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 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 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 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 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 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 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 $ June 30, 2003 June 30, 2004 June 30, 2005 June 30, 2006 June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 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% Restricted 72.8% 25.0% 19.6% 20.8% 5.8% 7.0% 9.0% 9.4% Unrestricted 106.2% 101.9% 94.8% 82.4% 50.5% 50.9% 50.0% 42.1% Subtotal Governmental Activities Net Assets 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% Restricted 17.5% 12.2% 12.7% 15.6% 13.2% 12.7% 4.9% 3.9% Unrestricted 25.7% 27.5% 23.7% 18.5% 21.8% 19.6% 22.6% 20.4% Subtotal Business-type Activities Net Assets 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% Restricted 36.1% 16.9% 15.4% 17.7% 8.9% 9.4% 7.3% 7.1% Unrestricted 53.0% 55.0% 51.2% 45.0% 38.7% 37.9% 38.3% 32.7% Total Primary Government Net Assets 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. 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. 1 The City and County implemented GASB Statement No. 34 in fiscal year 2003, therefore, only eight years of government-wide data is presented. Amounts Percentage of Total City and County of Butte-Silver Bow, Montana Government-wide Net Assets by Category 2 Last Eight Fiscal Years 1 (accrual basis of accounting) 189 ---PAGE BREAK--- Exhibit IA Chart-Government-wide Net Assets by Category City and County of Butte-Silver Bow, Montana Last Eight 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 $49,330,181 $52,314,656 $54,601,975 $58,020,820 $61,091,583 $64,644,670 69,188,741 73,904,443 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal Year Governmental Activities Business-type Activities 190 ---PAGE BREAK--- Exhibit II Source 2003 2004 2005 2006 2007 2008 2009 2010 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 $ 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 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 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 Social and economic services 172,573 195,594 179,827 202,267 201,839 216,137 236,774 237,155 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 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 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 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 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 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 Public works 1,374,640 1,957,266 1,385,091 1,367,840 6,547,889 367,210 140,185 114,812 Other activities 796,941 859,098 825,649 783,641 597,152 573,947 1,241,495 1,125,064 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 Capital grants and contributions 610,273 719,935 1,659,303 2,629,319 312,124 753,789 - - 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 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) 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 Franchise 216,207 228,647 240,923 261,119 288,216 300,714 321,282 330,218 Motor fuel 731,704 706,957 685,844 668,036 665,350 656,136 643,665 - Investment earnings 913,867 480,856 1,076,240 1,758,245 2,504,774 2,145,787 937,855 396,421 Miscellaneous 202,290 188,198 326,261 180,734 789,360 569,371 872,978 1,084,810 Transfers in 130,862 231,265 272,308 251,501 246,265 298,945 205,774 246,265 General Revenues and Transfers In: 20,425,975 21,893,107 18,989,084 21,502,134 27,116,554 27,027,360 25,643,193 28,330,013 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 $ Notes: 1 The City and County implemented GASB Statement No. 34 in fiscal year 2003, therefore, only eight years of government-wide data is presented. City and County of Butte-Silver Bow, Montana Changes in Net Assets - Governmental Activities Last Eight Fiscal Years 1 (accrual basis of accounting) Fiscal Year Ended June 30, 191 ---PAGE BREAK--- Exhibit III Source 2003 2004 2005 2006 2007 2008 2009 2010 Expenses: General government 25.7% 23.8% 27.1% 26.2% 23.3% 23.9% 23.5% 25.3% Public safety 29.1% 29.0% 29.9% 28.8% 27.3% 30.1% 30.5% 29.9% Public works 12.5% 13.3% 12.0% 12.8% 13.0% 14.3% 14.3% 14.4% Public health 8.0% 7.4% 8.0% 7.8% 7.2% 8.0% 9.0% 9.5% Social and economic services 0.5% 0.6% 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% Housing and community development 7.8% 12.0% 8.4% 11.4% 17.6% 11.9% 11.4% 10.0% Interest and fiscal charges 9.5% 8.0% 7.7% 6.4% 5.2% 5.0% 4.7% 4.3% Total Expenses 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% Public safety 6.5% 7.7% 6.1% 5.9% 5.6% 5.3% 4.9% 4.7% Public works 7.2% 9.9% 7.0% 5.8% 28.0% 1.8% 0.6% 0.5% Other activities 4.2% 4.4% 4.2% 3.3% 2.6% 2.9% 5.3% 4.8% Operating grants and contributions 63.0% 57.6% 56.4% 57.6% 54.4% 63.9% 71.1% 70.9% Capital grants and contributions 3.2% 3.7% 8.4% 11.1% 1.3% 3.8% 0.0% 0.0% Total Program Revenues 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% Franchise 1.1% 1.0% 1.3% 1.2% 1.1% 1.1% 1.3% 1.2% Motor fuel 3.6% 3.2% 3.6% 3.1% 2.5% 2.4% 2.5% 0.0% Investment earnings 4.5% 2.2% 5.7% 8.2% 9.2% 7.9% 3.7% 1.4% Miscellaneous 1.0% 0.9% 1.7% 0.8% 2.9% 2.1% 3.4% 3.8% Transfers in 0.6% 1.1% 1.4% 1.2% 0.9% 1.1% 0.8% 0.9% General Revenues and Transfers In: 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 eight years of government-wide data is presented. City and County of Butte-Silver Bow, Montana Changes in Net Assets - Governmental Activities - Percentage of Total Last Eight Fiscal Years 1 (accrual basis of accounting) Fiscal Year Ended June 30, 192 ---PAGE BREAK--- Exhibit IV Source 2003 2004 2005 2006 2007 2008 2009 2010 Expenses: Community facilities 82,723 $ 136,777 $ 77,479 $ 93,005 $ 132,174 $ 550,183 $ 96,146 $ 84,988 $ Home health 443,873 455,989 452,745 455,245 478,038 463,873 477,407 455,141 Small business incubator 139,231 148,147 153,460 166,836 163,866 159,863 145,363 159,511 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 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 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 Silver lake water system 199,266 371,617 560,408 509,674 325,308 229,247 237,431 228,506 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 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 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 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 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 Other activities 1,038,995 1,752,888 1,960,876 1,938,562 1,800,880 868,096 750,527 727,752 Operating grants and contributions 2,707 198,146 244,340 15,425 1,196,557 3,246,789 4,418,961 5,117,876 Capital grants and contributions 1,165,795 1,168,842 1,302,889 1,763,404 - - - - 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 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 General Revenues and Transfers : Restricted investment earnings 183,510 137,738 234,081 684,335 889,296 725,949 258,092 50,062 Miscellaneous 190,862 164,258 72,772 28,194 165,373 358,252 214,997 231,147 Transfers (130,862) (231,265) (272,308) (251,501) (246,265) (298,945) (205,774) (246,265) Total General Revenues and Transfers 243,510 70,731 34,545 461,028 808,404 785,256 267,315 34,944 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 $ Notes: 1 The City and County implemented GASB Statement No. 34 in fiscal year 2003, therefore, only eight years of government-wide data is presented. City and County of Butte-Silver Bow, Montana Changes in Net Assets - Business-type Activities Last Eight Fiscal Years 1 (accrual basis of accounting) Fiscal Year Ended June 30, 193 ---PAGE BREAK--- Exhibit V Source 2003 2004 2005 2006 2007 2008 2009 2010 Expenses: Community facilities 0.7% 1.1% 0.6% 0.7% 1.0% 3.9% 0.7% 0.6% Home health 3.7% 3.6% 3.4% 3.4% 3.6% 3.3% 3.5% 3.3% Small business incubator 1.2% 1.2% 1.1% 1.3% 1.2% 1.1% 1.1% 1.2% Water utility division 53.0% 51.2% 49.3% 51.1% 51.4% 50.4% 52.3% 51.8% Metro sewer operations 23.5% 23.3% 23.4% 25.2% 25.8% 24.3% 25.1% 25.0% Solid waste 13.8% 13.5% 13.2% 13.6% 13.8% 14.8% 14.9% 15.8% Silver lake water system 1.7% 2.9% 4.2% 3.8% 2.4% 1.6% 1.7% 1.7% Water distribution systems improvements 2.2% 2.0% 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% MR infrastructure project 0.0% 1.0% 1.2% 0.9% 0.7% 0.6% 0.6% 0.6% Total Expenses 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% Metro sewer operations 21.8% 20.8% 20.0% 19.3% 20.1% 18.5% 17.5% 17.0% Solid waste 15.6% 14.9% 15.6% 14.6% 15.8% 15.4% 13.9% 14.6% Other activities 7.3% 11.3% 12.5% 11.9% 11.5% 5.1% 4.2% 3.9% Operating grants and contributions 0.0% 1.3% 1.6% 0.1% 7.7% 19.2% 24.7% 27.7% Capital grants and contributions 8.2% 7.4% 8.3% 10.9% 0.0% 0.0% 0.0% 0.0% Total Program Revenues 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 eight 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 Eight Fiscal Years 1 (accrual basis of accounting) Fiscal Year Ended June 30, 194 ---PAGE BREAK--- Exhibit VI Source 2003 2004 2005 2006 2007 2008 2009 2010 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 $ 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 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 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 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 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 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) 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 Business-type activities 3 243,510 70,731 34,545 461,028 808,404 785,256 267,315 34,944 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 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 $ Notes: Data Source: 3 See Exhibit IV 1 The City and County implemented GASB Statement No. 34 in fiscal year 2003, therefore, only eight years of government-wide data is presented. 2 See Exhibit II Fiscal Year Ended June 30, City and County of Butte-Silver Bow, Montana Changes in Net Assets - Total Last Eight Fiscal Years 1 (accrual basis of accounting) 195 ---PAGE BREAK--- Exhibit VII Fiscal Year Motor Ended June 30, Property Franchise Fuel Total 2001 15,701,866 $ 126,162 $ 748,753 $ 16,576,781 $ 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 Percentage Change In Dollars Over 10 Years ago 67.3% 161.7% -15.6% 60.5% Fiscal Year Motor Ended June 30, Property Franchise Fuel Total 2001 94.7% 0.8% 4.2% 100.0% 2002 95.0% 1.1% 3.8% 100.0% 2003 95.1% 1.1% 3.4% 100.0% 2004 95.5% 1.4% 4.0% 100.0% 2005 94.6% 1.4% 3.5% 100.0% 2006 95.2% 1.2% 2.8% 100.0% 2007 96.0% 1.3% 2.7% 100.0% 2008 96.0% 1.4% 2.7% 100.0% 2009 95.9% 1.2% 0.0% 100.0% 2010 98.8% 1.2% 2.4% 102.4% 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 196 ---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 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal Year Motor Fuel Taxes Franchise Taxes Property Taxes 197 ---PAGE BREAK--- Exhibit VIII 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General Fund Reserved 1,877,434 $ 1,896,150 $ 1,614,326 $ - $ 1,010,921 $ 1,301,210 $ 1,374,435 $ 1,850,364 $ 2,146,461 $ 1,869,470 $ Unreserved 4,633,632 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 Subtotal General Fund 6,511,066 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 General Fund Percentage Change #DIV/0! 16.0% -13.4% 8.1% -17.3% 6.4% 4.0% -0.6% -1.5% 2.2% All Other Governmental Funds Reserved 13,844,305 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 Unreserved Special Revenue Funds1 9,360,328 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 Debt Service Funds - - - - - - - - - - Capital Projects Fund 4,026,683 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 27,231,316 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 Total Governmental Funds Reserved 15,721,739 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 Unreserved 18,020,643 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 Total Governmental Funds 33,742,382 $ 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 $ All Governmental Funds Percentage Change 0.0% 1.8% 29.5% -13.4% 0.9% 6.5% 15.9% 4.7% 9.9% -8.2% Notes: 1 In fiscal year 2007, the City and County received a $5 million contribution from ARCO, which was unspent at June 30, 2007. June 30, City and County of Butte-Silver Bow, Montana Fund Balances - Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 198 ---PAGE BREAK--- Exhibit IX Source 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Revenues: Taxes 15,701,866 $ 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 $ Licenses and permits 2,658,823 609,549 642,358 658,653 713,484 774,343 805,522 877,399 830,666 928,139 Intergovernmental 8,186,188 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 Charges for services 1,620,514 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 Fines and forfeitures 572,154 641,242 717,581 815,727 671,442 604,964 582,229 643,978 632,353 675,297 Special assessments 963,135 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 Health insurance contributions 1,967,930 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 Other grants and donations 709,935 827,582 774,183 709,832 829,506 1,589,605 6,840,412 703,469 1,370,834 1,683,976 Letter of credit in lieu of taxes - - 1,710,322 955,116 867,569 2,503,021 260,560 352,075 - - Investment earnings 2,292,720 1,212,518 913,868 480,857 1,076,240 1,758,247 2,504,774 2,145,787 937,855 396,421 Miscellaneous 233,889 433,534 214,615 223,945 335,503 225,007 378,402 567,440 809,217 1,080,856 Total Revenues 34,907,154 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 % change from prior year #VALUE! 7.2% 2.0% 5.9% -6.4% 15.4% 12.5% -7.2% 18.2% 0.0% Taxes 45.0% 44.3% 46.9% 50.6% 43.7% 41.0% 43.3% 47.4% 46.1% 47.3% Licenses and permits 7.6% 1.6% 1.7% 1.6% 1.9% 1.8% 1.6% 1.9% 1.5% 1.7% Intergovernmental 23.5% 31.9% 26.7% 25.9% 29.5% 28.0% 20.9% 26.7% 26.7% 25.0% Charges for services 4.6% 5.2% 4.9% 5.3% 4.7% 4.7% 4.2% 4.5% 10.4% 10.2% Fines and forfeitures 1.6% 1.7% 1.9% 2.0% 1.8% 1.4% 1.2% 1.4% 1.2% 1.3% Special assessments 2.8% 3.0% 2.9% 2.9% 3.3% 2.7% 2.6% 2.9% 2.4% 2.6% Health insurance contributions 5.6% 5.6% 5.5% 5.7% 6.9% 6.5% 5.9% 7.0% 6.0% 6.1% Other grants and donations 2.0% 2.2% 2.0% 1.8% 2.2% 3.6% 13.9% 1.5% 2.5% 3.1% Letter of credit in lieu of taxes 0.0% 0.0% 4.5% 2.4% 2.3% 5.7% 0.5% 0.8% 0.0% 0.0% Investment earnings 6.6% 3.2% 2.4% 1.2% 2.8% 4.0% 5.1% 4.7% 1.7% 0.7% Miscellaneous 0.7% 1.2% 0.6% 0.6% 0.9% 0.5% 0.8% 1.2% 1.5% 2.0% 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 annual financial For the Fiscal Year Ended June 30, General Governmental Revenues by Source (Unaudited) 1 City and County of Butte-Silver Bow, Montana Last Ten Fiscal Years (modified accrual basis of accounting) 1 Includes all governmental fund types. 199 ---PAGE BREAK--- Exhibit X Function 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Expenditures: Current: General government 6,168,650 $ 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 $ Public safety 8,482,924 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 Public works 3,594,238 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 Public health 2,278,258 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 Social and economic services 190,960 189,653 171,391 194,230 179,334 199,749 201,889 213,651 234,981 232,947 Culture and recreation 1,834,420 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 Housing and community development 1,425,847 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 Total Current 23,975,297 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 % Change From Prior Year 0.0% 5.8% -1.0% 18.3% -3.0% 11.1% 13.2% 2.3% 6.7% 2.3% Capital Outlay 3,253,617 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 % Change From Prior Year 0.0% 9.6% 69.1% 42.8% -71.1% 35.6% 15.9% -37.8% 270.6% 1.1% Debt Service2 Principal 9,306,143 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 Interest and fees 1,140,031 1,170,256 1,302,799 531,293 505,979 537,306 2,304,627 2,180,758 2,121,027 2,132,612 Bond issuance costs - - - - - - - - 193,760 - Total Debt Service 10,446,174 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 % Change From Prior Year 0.0% -5.2% -4.7% -7.9% -23.4% -6.7% -13.4% -2.7% -2.6% 15.1% Total Expenditures 37,675,088 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 Debt Service as a % of Noncapital Expenditures 30.3% 28.1% 27.3% 22.6% 18.8% 16.3% 12.9% 12.4% 11.0% 12.7% Notes: Data Source: Applicable years' comprehensive annual financial report. For the Fiscal Year Ended June 30, General Governmental Expenditures by Function (Unaudited) 1 City and County of Butte-Silver Bow, Montana Last Ten Fiscal Years (modified accrual basis of accounting) 2 The classification between principal and interest is not available for fiscal years 1999-2006, 1 Includes all governmental fund types. 200 ---PAGE BREAK--- Exhibit XI Function 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Expenditures: Current: General government 6,168,650 $ 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 $ Public safety 8,482,924 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 Public works 3,594,238 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 Public health 2,278,258 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 Social and economic services 190,960 189,653 171,391 194,230 179,334 199,749 201,889 213,651 234,981 232,947 Culture and recreation 1,834,420 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 Housing and community development 1,425,847 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 Total Current 23,975,297 $ 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 $ Current: General government 25.7% 26.9% 25.8% 25.5% 29.5% 28.0% 26.2% 27.1% 26.5% 28.3% Public safety 35.4% 33.7% 35.7% 33.6% 33.7% 31.9% 30.1% 33.2% 33.3% 32.2% Public works 15.0% 14.8% 15.6% 15.1% 14.5% 14.3% 13.4% 14.6% 14.6% 14.5% Public health 9.5% 10.1% 9.8% 8.6% 9.3% 9.0% 8.3% 9.2% 10.3% 10.9% Social and economic services 0.8% 0.7% 0.7% 0.7% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% Culture and recreation 7.7% 8.2% 7.8% 6.7% 7.0% 6.8% 6.5% 6.9% 6.6% 7.0% Housing and community development 5.9% 5.6% 4.6% 9.9% 5.4% 9.4% 14.9% 8.3% 8.1% 6.5% Total Current 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Notes: Data Source: City and County of Butte-Silver Bow, Montana Last Ten Fiscal Years (modified accrual basis of accounting) Applicable years' comprehensive annual financial report. 1 Includes all governmental fund types. For the Fiscal Year Ended June 30, General Governmental Current Expenditures by Function (Unaudited) 1 201 ---PAGE BREAK--- Exhibit XII 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Total Revenues - Exhibit IX 34,907,154 $ 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 $ Total Expenditures - Exhibit X 37,675,088 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 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,767,934) (1,390,458) (2,389,281) (6,572,380) (85,391) 2,124,845 3,672,530 932,493 317,023 (1,474,342) Other Financing Sources (Uses) Installment contract inception 787,711 - - - - - - - - - Revenue bonds issued - - - - - - - - - - General obligation bonds issued - - 12,574,000 - - - - 978,554 7,500,000 - Bond premiums - - - - - - - - 124,635 - General obligation notes issues - - - - - - 1,432,989 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 64,015 - - - 25,612 - - - - 2,000 Transfers in 8,342,611 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 Transfers out (8,097,352) (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) Total Other Financing Sources (Uses) 1,096,985 1,998,264 12,720,642 631,265 414,989 383,238 1,705,417 1,310,566 7,839,519 251,265 Net Change in Fund Balances (1,670,949) $ 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) $ Data Source: Applicable years' comprehensive annual financial report. For the Fiscal Year Ended June 30, Changes in Fund Balances - Governmental Funds City and County of Butte-Silver Bow, Montana Last Ten Fiscal Years (modified accrual basis of accounting) 202 ---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) $(1,670,949) $10,331,361 $(5,941,115) $329,598 $2,508,083 $5,377,947 $8,156,542 $(1,223,077) $607,806 $2,243,059 $(8,000,000) $(6,000,000) $(4,000,000) $(2,000,000) $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fiscal Year Net Change in Fund Balances 203 ---PAGE BREAK--- Exhibit XIII 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 2001 2000 1,522,796,413 10,710,944 35,213,994 21 48,049,093 1,520,672,279 175.29 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 73.8% -6.6% 0.0% 346557.1% 62.8% 71.9% 99.6% 2001 2000 97.1% 0.7% 2.2% 0.0% 100.0% 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% 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 204 ---PAGE BREAK--- Exhibit XIV Fiscal Debt Debt Special Year Operating Service Total Operating Service Total Districts 2001 171.51 3.78 175.29 331.65 12.91 344.56 20.40 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 % Change From 2001-2010 87.0% 671.7% 99.6% 6.7% 18.7% 7.1% 24.5% 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 2 205 ---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 REC (Formerly ASiMI) 1 11,383,797 $ 1 18.30% ASiMI 1 9,192,624 $ 1 15.88% Northwestern Energy 1 10,326,056 2 16.60% Montana Power Company 2 8,722,959 2 15.07% Montana Resources, Inc. 7,973,370 3 12.82% Sumitomo Bank Capital Markets Inc 3,516,751 3 6.07% Qwest Corporation 904,240 4 1.45% Montana Resources, Inc. 3,279,085 4 5.66% Bresnan Broadband 484,486 5 0.78% US West Communication 1,131,921 5 1.95% BRE/SW Big Sky LLC 333,461 6 0.54% Hyman David L. & Anne Trustees 356,836 6 0.62% Wal-mart Real Estate Business 324,840 7 0.52% TRI Touch America, Inc. 324,794 7 0.56% Verizon Wireless 322,531 8 0.52% Praxair, Inc. 1 301,419 8 0.52% Hyman David L. & Anne Trustees 285,068 9 0.46% Sky West Airlines 233,017 9 0.40% Praxair, Inc. - REC Affiliated 1 281,434 10 0.45% WETO Non-Profit Corporation 216,713 10 0.37% Total Principal Taxpayers 32,619,283 52.44% Total Principal Taxpayers 27,276,119 47.11% All Other Taxpayers 29,585,184 47.56% All Other Taxpayers 30,624,397 52.89% Total 62,204,467 $ 100.00% Total 57,900,516 $ 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 2010 2000 City and County of Butte-Silver Bow, Montana Principal Property Taxpayers Current Year and Nine Years Ago 206 ---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 2001 7,794,546 7,096,930 91.05% 906,413 8,003,343 102.68% (208,797) -2.68% 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% (395,671) -2.68% 2010 18,942,264 17,163,977 90.61% 657,720 17,821,697 94.08% 1,120,567 5.92% Notes: Data Source: - City and County Tax Collection Records Uncollected Taxes City and County of Butte-Silver Bow, Montana Property Tax Levies and Collections 1 Last Ten Fiscal Years Collected Within the Total 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 207 ---PAGE BREAK--- Exhibit XVII General Special Solid Percentage Debt Fiscal Obligation Assessment Capital Notes & Sewer Water Waste Notes & of Personal Estimated Per Year Bonds 3 Bonds Leases Loans Bonds Bonds Bonds Loans Total Income2 Population2 Capita 2001 2,320,000 - 1,026,847 1,690,654 2,094,390 22,810,000 2,115,000 639,980 32,696,871 3.91% 33,[PHONE REDACTED] 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% 32,949 871 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 208 ---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 2001 2,320,000 85,865 2,234,135 33,766 1,520,672,279 $ 0.15% 66 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 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 209 ---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 19,806,671 Special assessment bonds 240,000 Capital leases 386,274 Notes and loans 1,256,492 Total City and County Direct Debt 21,689,437 $ 100.0% 21,689,437 Total Direct and Overlapping Debt 21,689,437 $ 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, 2009 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. 210 ---PAGE BREAK--- Exhibit XX 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Legal Debt Margin Debt limit (2.5% of total assessed value) 26,389,889 $ 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 $ Net debt applicable to limit: 4,499,478 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 Legal debt margin 21,890,411 $ 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 $ As a percentage of debt limit 82.95% 84.59% 40.49% 44.24% 50.71% 64.74% 69.26% 73.83% 62.04% 71.22% 2,614,398,355 $ Debt limit (2.5% of total assessed value) 65,359,959 $ Total bonded debt 19,011,630 Less special assessement bonds (200,000) Total debt applicable to limitation 18,811,630 Total legal debt margin 46,548,329 $ Legal Debt Margin Calculation for Fiscal Year 2010 Total assessed value June 30, City and County of Butte-Silver Bow, Montana Legal Debt Margin Last Ten Fiscal Years 211 ---PAGE BREAK--- Less Net Revenue Fiscal Operating Operating Depreciation & Available for Times Year Revenues Expenses Amortization Debt Service Principal Interest Total Coverage 2001 2,143,474 1,563,348 298,545 878,671 110,000 118,225 228,225 3.85 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 - - - - Less Net Revenue Fiscal Operating Operating Depreciation & Available for Times Year Revenues Expenses Amortization Debt Service Principal Interest Total Coverage 2001 6,995,751 4,845,672 1,492,089 3,642,168 1,110,000 1,151,735 2,261,735 1.61 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 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 212 ---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 2001 33,766 836,831 24,783 30,562 81% 38.9 5,026 5.1% 4.3% 4.7% 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% 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. 213 ---PAGE BREAK--- Exhibit XXIII COMPANY NAME PRODUCT OR SERVICE Acadia Montana Health Services Advanced Silicon Materials Polysilicon Production Aware, Inc. Human Services Butte Convalescent Center Health Services Butte Sheltered Workshop Retail Community Counseling & Correctional Service Adult Social Services Community Health Center Health Services Easter Seals - Goodwill Human Services Harrington Restaurant Supply Wholesale Herberger's Retail Human Resources Council Dist XII (Headstart) Human Services Lady of the Rockies Rehab and Living Center Health Services MSE Technology Applications, Inc. Engineering Services Montana Resources Mining Northwestern Energy Utilities Safeway Retail Silver House Mental Health Services St. James Community Hospital Health Services Town Pump Retail/Fuel Services Wal-Mart Retail 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, 2010 214 ---PAGE BREAK--- Exhibit XXIV Function 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General Government 258 223 244 248 256 187 201 195 199 200 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 42 44 46 46 41 41 44 44 44 47 Civilians 17 17 16 17 21 21 20 21 21 22 Detention Officers 14 17 18 18 25 26 27 27 27 27 Fire Chief 1 1 1 1 1 1 1 1 1 1 Assistant Chief 1 1 1 1 1 1 1 1 1 1 Firefighters and Officers 31 31 31 31 30 30 32 32 32 31 Civilians 1 1 1 1 1 1 1 1 1 1 Highways and Streets Engineering 2 2 2 2 2 2 2 2 2 2 Maintenance 21 21 21 20 17 17 17 21 24 24 Sanitation 6 6 6 5 5 5 5 6 6 6 Culture and Recreation 8 8 8 8 7 7 10 8 8 8 Water 44 44 45 44 46 44 41 45 45 50 Sewer 27 27 27 27 27 27 25 28 28 26 Total 475 445 469 471 482 412 429 434 441 448 Percentage Change From Prior Year 0.0% -6.3% 5.4% 0.4% 2.3% -14.5% 4.1% 1.2% 1.6% 1.6% As of June 30, City and County of Butte-Silver Bow, Montana Full-time Equivalent Employees by Function Last Ten Fiscal Years 215 ---PAGE BREAK--- Exhibit XXV Function 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Police Physical arrests 2,096 2,389 2,594 1,641 2,065 1,837 1,080 2,414 2,346 2,976 3,839 Parking violations 4,468 4,330 7,043 13,102 14,480 12,527 13,886 15,288 20,695 14,769 7,335 Traffic violations 3,329 3,937 4,228 5,540 5,502 3,958 2,589 4,273 5,195 5,401 4,350 Fire Inspections 170 165 155 161 149 152 168 125 117 132 177 Highway and streets Street resurfacing (miles) 2.9 2.9 2.9 2.9 2.9 2.9 2.9 4.0 3.5 4 6.8 Potholes repaired 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,500 2300 2500 2500 Sanitation Refuse collected (tons/day) 177.92 176.12 188.13 178.20 190.18 238.30 207.77 219.93 232.77 233.43 176.59 Recyclables collected (tons/day) 26.97 21.24 22.32 21.55 22.27 25.37 25.31 23.49 27.26 24.56 20.92 Water Connections 12,086 11,932 11,969 11,962 11,950 11,953 11,983 11,971 12,273 12,313 12,358 Water main breaks 327 305 247 261 228 240 258 200 268 284 240 Average daily consumption (thousands of gallons) 7,000 6,650 6,740 7,310 6,950 7,340 8,280 7,590 7,500 6,653 5,874 Wastewater Average daily sewage treatment (million of gallons/day) 4.39 4.09 3.75 3.33 3.19 3.19 3.17 3.60 3.56 3.21 3.58 Data Source: Various City/County departments Fiscal Year Ended June 30, City and County of Butte-Silver Bow, Montana Operating Indicators by Function/Program Last Ten Fiscal Years 216 ---PAGE BREAK--- Exhibit XXVI Function 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Public Safety Police: Stations 1 1 1 1 1 1 1 1 1 1 Patrol Units 25 25 25 25 23 24 24 25 25 26 Fire stations 11 11 11 11 11 11 11 11 11 11 Sanitation Collection trucks 6 6 6 6 7 8 8 10 10 10 Highways and streets Streets (miles) 710 710 710 715 715 715 715 715 715 715 Streetlights 3,197 3,200 3,230 3,234 3,241 3,258 3,311 3,326 3,327 3,330 Traffic signals 39 39 39 40 40 40 40 40 40 40 Culture and recreation Parks acreage 3,897 3,897 3,897 3,897 3,895 4,195 4,195 4,195 4,195 4,195 Parks 43 44 44 44 44 44 44 44 44 44 Swimming pools 1 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 984 1,017 1,024 1,026 1,026 1,030 1,030 1,050 1,078 1,185 Maximum daily capacity (millions of gallons) 23 23 23 23 23 23 23 23 23 23 Sewer Sanitary sewers (miles) 201.60 202.00 202.40 202.80 203.20 203.60 203.60 203.60 203.60 170.80 Storm sewers (miles) 50.10 50.20 50.20 50.20 50.30 50.30 50.30 50.30 50.30 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 Fiscal Year Ended June 30, City and County of Butte-Silver Bow, Montana Capital Asset and Infastructure Statistics by Function/Program Last Ten Fiscal Years 217 ---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, 2010 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