
Disclaimer: The views I express here are my own and should NOT be construed as speaking for the City of Bangor or the City Council of Bangor.
Finance Committee (Special Meeting)
Auditors from the auditing firm Runyon Kersteen Ouellette were on hand to give the Finance Committee an overview of the Fiscal Year 2024 audit.
You can see the slides from the presentation as well as the Fiscal Year 2024 Annual Comprehensive Financial Report for the City of Bangor by clicking here.
Audit Challenges and Timeline
The auditors noted several challenges that complicated and extended the audit timeline for fiscal year 2024.
- New Accounting Standards: Ongoing implementation of GASB 96 (subscription-based IT agreements) and GASB 87 (leases) continues to add a significant amount of work to the audit. These standards require identifying and recording numerous agreements across various city departments as assets and liabilities.
- Staffing and Backlog: The finance and treasury staff were still not caught up on a backlog of work from the previous year, which was compounded by turnover, including the deputy finance director position.
- Bank Reconciliations: Bank reconciliations were significantly delayed. For example, the June 2024 reconciliation was not completed until January 2025. The Finance Director is currently working with a new Payroll and Accounting Specialist to get caught up.
The audit began the week of October 21st, with the first draft of financial statements received on March 5th and a revised copy on April 18th.
Summary of Audit Results
Financial Statements
- The financial statements received an unmodified, or “clean,” opinion, which is the best possible result.
Internal Controls Over Financial Reporting
- A material weakness (a repeat finding) was issued related to the delayed cash account reconciliations. These delays increase the risk that errors may not be detected in a timely manner.
- A significant deficiency was noted for material audit adjustments and financial statement preparation, largely due to staff being behind on their work, which limited time for a thorough review of all accounts.
Federal and State Grant Compliance
- The city expended just under $30 million in federal awards, requiring a single audit.
- Ten federal programs were tested.
- No material weaknesses were found in relation to federal compliance testing.
- However, seven of the ten programs tested had compliance findings, and there were several significant deficiencies.
- Testing was also conducted under Maine’s Uniform Accounting and Auditing Practices for Community Agencies for state grants. This testing also resulted in significant deficiencies and compliance findings but no material weaknesses.
Key Financial Highlights
- General Fund Balance: The total fund balance increased by just over $1 million from FY23 to FY24. The unassigned fund balance was 12.43%, which is within the city’s formal policy target of 8.33% to 16.66% of operating expenditures.
- Budget vs. Actual (Revenues):
- Tax revenue was $524,000 higher than budgeted due to increased vehicle registrations.
- State revenue sharing exceeded budget.
- Licenses and permits were $325,000 over budget due to higher demand for building permits.
- Budget vs. Actual (Expenditures):
- General government expenditures were about $1 million lower than budget due to unfilled vacancies.
- Public Safety, Health and Community Services, and Public Services also came in under budget, primarily due to open positions and lower demand for certain services.
- School department expenditures for regular instruction were over budget due to a late entry identified during the audit.
- Tax Collection: The city collected 97.7% of its current year tax commitment within the fiscal year.
Key Compliance Findings
Several compliance findings and significant deficiencies were detailed:
- Allowable Costs: Personnel costs in the Health and Community Services department were charged to grants based on budgeted amounts rather than actual time worked, which is required by uniform guidance.
- CDBG Program: City staff not associated with the Community Development Block Grant (CDBG) program charged expenditures to the grant without the director’s knowledge. Required federal transparency act reporting for subrecipients also did not occur.
- ARPA Funds: The School Department, a recipient of ARPA funds, did not follow federal procurement standards for playground equipment purchases. On the city side, one expenditure was missed and reported in a later quarterly report than required.
- Health & Community Services: Four monthly reports for opioid and substance abuse grants were not submitted by the 15-day deadline. The department also failed to adequately monitor its subrecipients by not verifying the information they reported.
- Federal Transit (Bus Program): A reimbursement request prepared by the bus director improperly included encumbrances and other costs that had not gone through federal procurement standards. The request was corrected before funds were drawn down.
In closing, the auditors stated that having all information ready at the start of the audit is a key factor in improving the timeliness of the process.
City Council Workshop
You can read the meeting agenda by clicking here.
City Solicitor Update
The City Solicitor provided several updates from the legal department:
- Website FAQ: Since August 12, the city’s website has featured a “Frequently Asked Questions” section from the legal department. It covers topics such as the Freedom of Access Act, vacant building registration, and the rights of residential tenants. (Click here to view the Legal Department’s FAQ page.)
- Vacant Buildings: An update was provided on the vacant building registration ordinance. Since the last update in July, five properties are no longer vacant, and two new ones have been identified. There are now 65 properties on the list, a decrease of three. However, the number of unregistered properties has risen from 15 to 35, largely because many six-month registrations recently expired and renewals are in process but not yet finalized.
- Bangor Mall Hearing: A hearing regarding rule violations at the Bangor Mall took place all day on September 22. The mall presented evidence of “significant progress” in fixing violations, particularly with stormwater structures. However, the issues have not been fully resolved, and the hearing did not conclude. The judge is considering having the remaining witnesses provide testimony by deposition.
- Freedom of Access Act (FOAA): The legal department continues to receive an increasing number of complex FOAA requests, and they are doing their best to keep up with the volume.
City Manager Update
The City Manager provided updates on several city projects and initiatives:
- Airport Runway: The runway refurbishment at the airport is complete, with a ribbon-cutting ceremony planned for October.
- Council Chambers Wall: A historical timeline installation, created in partnership with the Bangor Historical Society, is planned for the back wall of the council chambers and will hopefully be installed sometime next year.
- ARPA Funds: The city is monitoring the spending of ARPA grant recipients. While many have begun to spend their funds more aggressively, the city will meet with those who have not to ensure the money is spent by the end of 2026 and not returned to the federal government.
Police Photo with Council Candidate
The City Manager invited the Police Chief to address concerns about a photograph showing officers with a council candidate.
- Context: The Chief explained that officers frequently receive requests for photos and rarely know who they are standing with. In this specific instance, which occurred during a “flag-waving event” on the previous Friday, an individual approached the officers for a photo.
- Officer Awareness: The officers did not know the individual was a council candidate. The Chief stated that while the department regrets a photo was taken with a candidate, there was no intent by the officers to influence an election. He emphasized the photograph does not suggest an endorsement of any candidate or their political beliefs.
- Police Presence: Police were aware of the event and coordinated with Brewer Police and the Sheriff’s office. A supervisor, a trainee supervisor, and another officer were present to ensure participants did not interfere with traffic and to address safety issues.
Regular City Council Meeting
Click here to read the meeting agenda.
Here is a list of all items on the agenda for the Bangor City Council meeting on September 22, 2025.
Consent Agenda
The Consent Agenda passed, and included:
- Minutes of: Bangor City Council Meetings of September 8, 2025 and September 15, 2025, Government Operations Committee Meetings of July 21, 2025 and August 4, 2025 and Finance Committee Meeting of September 15, 2025.
- Item 25-272: Order Authorizing the Execution of a Municipal Quitclaim Deed for Real Estate Located at 194 Warren Street.
- Item 25-273: Order Authorizing the Parks and Recreation Department to Partner with the Bangor Rotary to Improve and Install Signage Along the Kenduskeag Stream Trail.
- Item 25-274: Order Authorizing the City Manager to Execute a Memorandum of Agreement with Licensed Clinical Social Worker Karen Gardner to Provide Clinical Oversight for the HIV Intensive Case Manager Program.
- Item 25-275: Order Authorizing the City Manager to Execute a Subordination Agreement with the Owners of 21 Eaton Place and First National Bank.
- Item 25-276: Order Authorizing the City Manager to Apply for a Cole Foundation Grant in the Amount of $243,225 to Support a Community Paramedicine Program.
- Item 25-277: Order Authorizing the City Manager to Apply for a Grant Through the State of Maine Not to Exceed $400,000 to Support Housing Stability Services.
- Item 25-278: Order Authorizing the City Manager to Execute a Collective Bargaining Agreement between the City of Bangor and American Federation of State, County, and Municipal Employees (AFSCME), Local 926, Council 93 Representing Airport Operations.
- Item 25-280: Order Authorizing City Manager to Accept a Donation of 18 Trees from Bangor Beautiful.
Referrals to Committee and First Reading
- PASSED Item 25-281: Resolve Accepting & Appropriate up to $730,000 in Grant Funds from Maine Department of Health and Human Services for the Purpose of Funding Bangor Public Health and Community Services Infrastructure Needs (First Reading).
Unfinished Business
- PASSED Item 25-264: Order Authorizing the City Manager to Execute a Contract with S.J. Services d/b/a Star Janitorial & Integrated Services as Custodial Service Provider for Bangor International Airport, City Hall, and Public Health & Community Services Facilities.
New Business
Originally “Item 25-279: Order Authorizing the City Manager to Execute Easement to Bangor ME 1, LLC at City Owned Right of Way at the End of Gilman Road” was on the consent agenda. During Public Comment the City Engineer informed the Council that the alternative arrangement that was discussed during the September 15, 2025 Infrastructure Committee meeting was discussed. As a result, the item was pulled from the Consent Agenda and a motion passed to postpone the item indefinitely.
- Public Hearing: Application for Special Amusement License Renewal of the Main Tavern, Inc., d/b/a The Main Tavern, Inc., 152 Main Street. No one approached. License was renewed.
- PASSED Item 25-283: Order Referring the Issue of Taking and Circulating Nomination Papers on Behalf of Another to the City’s Board of Ethics for an Advisory Opinion.
- PASSED Item 25-282: Order Referring the Issue of City Councilor Wayne Mallar’s Actions During the August 14, 2025 Historic Preservation Commission Meeting to the City’s Board of Ethics for Advisory Opinion.
Two Events This Saturday, September 27, 2025!
During closing comments by City Council I mentioned these two events:
- Recovery-Palooza at the Waterfront (Click Here)
- Bangor Multicultural Fair at the Library (Click Here)
Hope to see you there!