HomeMy Public PortalAboutFY 2019 Report on the Examination of Basic Financial Statements
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
TABLE OF CONTENTS
PAGE
Independent Auditor’s Report 1 - 2
Management’s Discussion and Analysis 3 – 10
Basic Financial Statements
Statement of Net Position 11
Statement of Activities 12 – 13
Governmental Funds – Balance Sheet 14
Governmental Funds – Statement of Revenues, Expenditures, and
Changes in Fund Balances
15
Reconciliation of the Governmental Funds Balance Sheet Total
Fund Balances to the Statement of Net Position
16
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
17
General Fund – Statement of Revenues, Expenditures, and
Changes in Fund Balance – Budget and Actual
18
Proprietary Funds - Statement of Net Position
Proprietary Funds – Statement of Revenues, Expenses, and
Changes in Net Position
Proprietary Funds – Statement of Cash Flows
19
20
21
Fiduciary Funds – Statement of Fiduciary Net Position 22
Fiduciary Funds – Statement of Changes in Fiduciary Net Position 23
Notes to Basic Financial Statements 24 – 68
Required Supplementary Information:
Barnstable County Retirement Association Schedules:
Schedule of Town’s Proportionate Share of the Net Pension Liability
69
Schedule of Town’s Contribution 70
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
TABLE OF CONTENTS
PAGE
Massachusetts Teachers Retirement System Schedule:
Schedule of the Commonwealth’s Collective amounts of the Net Pension
Liability
71
Other Postemployment Benefit Plan Schedules:
Schedule of the Town’s Net OPEB Liability and Related Ratios
72
Schedule of the Town’s Contribution 73
Schedule of Investment Return 74
Notes to Required Supplementary Information
75 - 76
ROBERT E. BROWN II
CERTIFIED PUBLIC ACCOUNTANT
25 CEMETERY STREET – P.O. BOX 230
Mendon, Massachusetts 01756
Phone: (508) 478-3941 Fax: (508) 478-1779
INDEPENDENT AUDITOR’S REPORT
To the Honorable Board of Selectmen
Town of Brewster, Massachusetts
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Town of Brewster,
Massachusetts as of and for the year ended June 30, 2019, and the related notes to the financial statements, which
collectively comprise the Town’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the Town of Brewster, Massachusetts, as of June 30, 2019, and the respective
changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison
for the general fund for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, and Barnstable County Retirement Association schedules - Town’s proportionate share of
the net pension liability, and Town’s contribution, Massachusetts Teachers Retirement System’s schedule of the
Commonwealth’s Collective amounts of the Net Pension Liability, Other Post-Employment Benefit schedules -
Town’s Net OPEB Liability and Related Ratios, Town’s contribution, and investment return, and notes to
required supplementary information on pages 3 – 10, 69 – 70, 71, 72 – 74 and 75 - 76 be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial statements, is required
by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
March 17, 2020
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Management’s Discussion and Analysis
As management of the Town of Brewster (the Town), we offer readers of the Town’s financial statements this
narrative overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2019.
We encourage readers to consider this information in addition to the statements and notes.
The Town complies with financial reporting requirements issued by the Governmental Accounting Standards
Board (GASB). GASB is the authoritative standard setting body that provides guidance on how to prepare
financial statements in conformity with accounting principles generally accepted in the United States of America
(GAAP). Users of these financial statements, such as investors and rating agencies, rely on the GASB to establish
consistent reporting standards for all governments in the United States. This consistent application is the only
way users can assess the financial condition of one government compared to others.
Financial Highlights
• The assets of the Town exceeded its liabilities at the close of the fiscal year by $57.5 million (net position).
• The unrestricted negative net position of the Town’s governmental activities are -$32.4 million. The
unrestricted negative net position of the Town’s business-type activities are -$3.2 million.
• The government’s total net position increased by $2.4 million from fiscal 2018. Within this total, net position
of governmental activities increased by $2.7 million from fiscal 2018. Also, net position of business-type
activities decreased by -$0.3 million from 2018.
• At June 30, 2019, the Town’s governmental funds had combined ending fund balances of $17.4 million. The
combined governmental funds balance decreased by -$0.3 million, a 1.6% decrease over the prior year’s
ending fund balances.
• The Town’s general fund reported a fund balance of $9.2 million at the end of fiscal 2019. The unassigned
fund balance for the general fund was $6.2 million or 14.97% of total general fund expenditures. A total of
$1.2 million of the assigned fund balance was designated for funding the fiscal year 2020 budget.
• The total cost of all Town services for fiscal 2019 was $51.5 million, $45.4 million of which was for
governmental activities, and $6.1 million of which was for business-type activities.
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Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements.
These basic financial statements are comprised of three components:
1. Government-wide Financial Statements
2. Fund Financial Statements
3. Notes to the Basic Financial Statements
Government-wide Financial Statements – The government-wide financial statements are designed to provide
readers with a broad overview of finances, in a manner similar to private-sector business.
The statement of net position presents information on all assets and liabilities, with the difference between the two
reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future periods, (e.g., uncollected taxes).
Both of the government-wide financial statements distinguish functions that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees or charges (business-type activities). The governmental
activities include general government, public safety, education, public works, human services, culture and
recreation, employee benefits, debt service, and state and county assessments. The business-type activities
include water and golf department services.
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. Fund accounting is used to ensure and
demonstrate compliance with finance related legal requirements. All of the funds can be divided into three main
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental Funds – governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental funds statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government’s near-term financing decisions. Both, the Governmental Funds Balance
Sheet and the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental activities.
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The Town of Brewster adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
Proprietary Funds – Enterprise funds are used to report the same functions presented as business-type activities
in the government-wide financial statements. The Town has two enterprise funds:
Water Enterprise Fund accounts for the water activity of the Town.
Golf Enterprise Fund accounts for the golf activity of the Town.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements, as the resources of
those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is
much like that used for proprietary funds.
Private-purpose trust funds, postemployment benefits trust, and agency funds are each reported and combined into
a single, aggregate presentation in the fiduciary funds financial statements under the captions “private purpose
trust funds”, “postemployment benefits trust”, and “agency funds”, respectively.
Notes to the basic financial statements – The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Government-wide Financial Analysis:
The chart on the following page summarizes key financial components of the Town’s financial statements.
As noted earlier, assets exceed liabilities by $57,528,385 at the close of fiscal year 2019. The Town is able to
report positive balances of net position, both for the government as a whole, and for its separate governmental and
business-type activities in total.
The largest component of the Town’s net position are its investment in capital assets (e.g., land, buildings,
machinery, and equipment), less any related outstanding debt used to acquire those assets, and is $82,644,309, or
143.7% of total net position. The Town uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. Although the investment in the Town’s capital assets is reported
net of its related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the net position totaling $10,542,634 (18.3% of total) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of unrestricted net position is
($35,658,558).
The Town decreased its total liabilities by $2,717,178 as compared to fiscal 2018, and total net position increased
by $2.4 million or 4.33%. Net position of governmental activities increased by $2,653,866, a 6.47% increase
from fiscal 2018. Net position of business-type activities decreased by -$267,434 or 1.89% from 2018. There was
a decrease of $443,974 in net position reported in connection with the water business-type activity, and an
increase of $176,540 in net position in connection with the golf department business-type activity, respectively.
- 6 -
Increase Increase Increase
FY 2019 FY 2018 (Decrease)FY 2019 FY 2018 (Decrease)FY 2019 FY 2018 (Decrease)
Assets:
Current assets 22,982,623$ 21,954,395$ 1,028,228$ 3,888,008$ 5,518,926$ (1,630,918)$ 26,870,631$ 27,473,321$ (602,690)$
Noncurrent assets (excluding capital)455,842 557,772 (101,930) 14,039 18,203 (4,164) 469,881 575,975 (106,094)
Capital assets 87,557,389 85,535,810 2,021,579 22,585,442 22,311,841 273,601 110,142,831 107,847,651 2,295,180
Total assets 110,995,854 108,047,977 2,947,877 26,487,489 27,848,970 (1,361,481) 137,483,343 135,896,947 1,586,396
Deferred Outflow of Resources:5,154,733 3,624,857 1,529,876 953,638 693,625 260,013 6,108,371 4,318,482 1,789,889
Liabilities:
Current liabilities (excluding debt)2,726,051 3,231,374 (505,323) 201,981 319,272 (117,291) 2,928,032 3,550,646 (622,614)
Noncurrent liabilities (excluding debt)38,397,250 39,144,474 (747,224) 6,639,935 6,543,245 96,690 45,037,185 45,687,719 (650,534)
Current debt 3,924,943 2,070,013 1,854,930 1,365,000 1,420,904 (55,904) 5,289,943 3,490,917 1,799,026
Noncurrent debt 20,143,878 22,061,934 (1,918,056) 4,320,000 5,645,000 (1,325,000) 24,463,878 27,706,934 (3,243,056)
Total liabilities 65,192,122 66,507,795 (1,315,673) 12,526,916 13,928,421 (1,401,505) 77,719,038 80,436,216 (2,717,178)
Deferred Inflows of Resources:7,289,792 4,150,232 3,139,560 1,054,499 164,292 890,207 8,344,291 4,314,524 4,029,767
Net Position:
Net investment in capital assets 65,574,910 64,293,963 1,280,947 17,069,399 16,105,348 964,051 82,644,309 80,399,311 2,244,998
Restricted 10,542,634 11,615,551 (1,072,917) - - - 10,542,634 11,615,551 (1,072,917)
Unrestricted (32,448,871) (34,894,707) 2,445,836 (3,209,687) (1,978,202) (1,231,485) (35,658,558) (36,872,909) 1,214,351
Total net position 43,668,673$ 41,014,807$ 2,653,866$ 13,859,712$ 14,127,146$ (267,434)$ 57,528,385$ 55,141,953$ 2,386,432$
Revenues
Program Revenues:
Charges for services 3,553,923$ 2,188,275$ 1,365,648$ 5,959,954$ 6,607,597$ (647,643)$ 9,513,877$ 8,795,872$ 718,005$
Operating grants and contributions 3,999,802 4,369,794 (369,992) 68,352 78,320 (9,968) 4,068,154 4,448,114 (379,960)
Capital grants and contributions 932,156 371,818 560,338 - - - 932,156 371,818 560,338
General Revenues:
Real Estate and personal property taxes 33,599,411 31,329,128 2,270,283 - - - 33,599,411 31,329,128 2,270,283
Tax Liens 101,634 98,385 3,249 - - - 101,634 98,385 3,249
Motor vehicle and other excise taxes 1,632,250 1,613,934 18,316 - - - 1,632,250 1,613,934 18,316
Hotel/Motel Tax and Meals Tax 1,367,058 1,329,247 37,811 - - - 1,367,058 1,329,247 37,811
Penalties and interest on taxes 100,376 174,054 (73,678) - - - 100,376 174,054 (73,678)
Payments in Lieu of Taxes 14,012 6,873 7,139 - - - 14,012 6,873 7,139
Nonrestricted grants and contributions 2,229,761 1,932,585 297,176 - - - 2,229,761 1,932,585 297,176
Unrestricted investment income 268,127 162,302 105,825 - - - 268,127 162,302 105,825
Bond Premium 1,001 - 1,001 - - - 1,001 - 1,001
Other revenues 11,990 187,125 (175,135) - - - 11,990 187,125 (175,135)
Total Revenues 47,811,501 43,763,520 4,047,981 6,028,306 6,685,917 (657,611) 53,839,807 50,449,437 3,390,370
Expenses:
General Government 4,199,188 3,923,169 276,019 - - - 4,199,188 3,923,169 276,019
Public Safety 6,867,643 6,485,856 381,787 - - - 6,867,643 6,485,856 381,787
Education 20,247,626 21,505,901 (1,258,275) - - - 20,247,626 21,505,901 (1,258,275)
Public Works 2,423,680 2,620,254 (196,574) - - - 2,423,680 2,620,254 (196,574)
Human Services 1,351,050 1,282,512 68,538 - - - 1,351,050 1,282,512 68,538
Culture and Recreation 1,171,735 1,183,760 (12,025) - - - 1,171,735 1,183,760 (12,025)
Employee Benefits 7,856,178 6,058,218 1,797,960 - - - 7,856,178 6,058,218 1,797,960
State and County Assessments 615,511 657,501 (41,990) - - - 615,511 657,501 (41,990)
Interest 652,627 663,599 (10,972) - - - 652,627 663,599 (10,972)
Golf - - - 3,582,326 3,718,355 (136,029) 3,582,326 3,718,355 (136,029)
Water - - - 2,485,811 2,518,510 (32,699) 2,485,811 2,518,510 (32,699)
Total Expenses 45,385,238 44,380,770 1,004,468 6,068,137 6,236,865 (168,728) 51,453,375 50,617,635 835,740
Increase/(Decrease) in Net Position before contributions
to permanent endowments and transfers 2,426,263 (617,250) 3,043,513 (39,831) 449,052 (488,883) 2,386,432 (168,198) 2,554,630
Transfers 227,603 (23,220) 250,823 (227,603) 23,220 (250,823) - - -
Change in Net Position 2,653,866 (640,470) 3,294,336 (267,434) 472,272 (739,706) 2,386,432 (168,198) 2,554,630
Prior Period Adjustment - OPEB - (12,115,026) 12,115,026 - (1,515,425) 1,515,425 - (13,630,451) 13,630,451
Prior Period Adjustment - Debt/Land - (130,000) 130,000 - 130,000 (130,000) - - -
Net Position - beginning 41,014,807 53,900,303 (12,885,496) 14,127,146 15,040,299 (913,153) 55,141,953 68,940,602 (13,798,649)
Net Position - ending 43,668,673$ 41,014,807$ 2,653,866$ 13,859,712$ 14,127,146$ (267,434)$ 57,528,385$ 55,141,953$ 2,386,432$
Town of Brewster - Financial Highlights
Total
Governmental Business-type Primary
Activities Activities Government
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Financial analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds – The focus of governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year, governmental funds reported combined ending fund balances of
$17,382,470 a -$282,956 decrease from the prior year’s ending fund balance.
The general fund is the primary operating fund. At the end of the current fiscal year, unassigned fund balance of
the general fund was $6,190,813, while total fund balance stood at $9,180,653. As a measure of the general
fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 14.97% of total general fund expenditures, while total fund
balance represents 22.2% of that same amount.
The stabilization fund has accumulated a fund balance of $2,493,329 which represents 6.03% of general fund
expenditures. The funds can be used for general or capital purposes upon Town Meeting approval.
General Fund Budget Highlights
During the fiscal year the operating budget was amended by -$215,042 (at Special Town Meeting), with modest
increases to fund general government and debt service; while decreases were approved for public safety, public
works, and employee benefits. The Town budgeted $40.6 million in revenues and $42.6 million in expenditures,
drawing on transfers and prior year’s surplus to finance the difference. At year end, actual revenues exceeded
estimates by $656,085 and $997,370 of unexpended appropriation balances was closed out to unassigned fund
balance.
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Capital Asset and Debt Administration
Capital Assets - In conjunction with the operating budget, the Town annually prepares capital budgets for the
upcoming fiscal year.
The Town’s investment in capital assets for governmental and business type activities, as summarized below, as
of June 30, 2019, amounts to $110,142,831 net of accumulated depreciation. The investment in capital assets
includes land, buildings and improvements, capital improvements (other than buildings), machinery, equipment
and vehicles, infrastructure, and construction in progress.
The governmental activities capital assets (net of accumulated depreciation) were increased by $2,021,579 during
the current fiscal year while the business-type activities capital assets (net of accumulated depreciation) decreased
by -$408,774. Total depreciation was $3.13 million, resulting in a total government-wide increase to capital
assets (net of accumulated depreciation) of $1,612,805.
Increase Increase
FY 2019 FY 2018 (Decrease)FY 2019 FY 2018 (Decrease)FY 2019 FY 2018
Land 41,455,667$ 39,401,942$ 2,053,725$ 3,559,212$ 3,559,212$ -$ 45,014,879$ 42,961,154$
Construction in Progress 3,682,181 15,436,156 (11,753,975) 475,762 475,762 - 4,157,943 15,911,918
45,137,848 54,838,098 (9,700,250) 4,034,974 4,034,974 - 49,172,822 58,873,072
Buildings and improvements 27,016,052 14,980,775 12,035,277 4,102,996 4,172,640 (69,644) 31,119,048 19,153,415
Improvements (other than buildings)3,552,020 3,860,916 (308,896) - - - 3,552,020 3,860,916
Machinery, Equipment, and Vehicles 4,222,892 4,449,494 (226,602) 980,868 1,024,019 (43,151) 5,203,760 5,473,513
Infrastructure 7,628,577 7,406,527 222,050 13,466,604 13,762,583 (295,979) 21,095,181 21,169,110
42,419,541 30,697,712 11,721,829 18,550,468 18,959,242 (408,774) 60,970,009 49,656,954
Total Capital Assets 87,557,389$ 85,535,810$ 2,021,579$ 22,585,442$ 22,994,216$ (408,774)$ 110,142,831$ 108,530,026$
Activities Activities Government
Capital Assets
(Net of Depreciation)
Total
Governmental Business-type Primary
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Long Term Debt - The Town’s debt burden is reasonable in relation to other communities its size. Outstanding
long-term debt, as of June 30, 2019 totaled $26,265,600. Within this total, business-type activities have debt of
$5,645,000 that is fully supported by their respective program revenues, and governmental activities debt is
$20,620,600. Total debt consists of the following:
Outstanding Outstanding
Governmental Activities June 30, 2019 June 30, 2018
Road Betterments - Prell Circle 25,000$ 30,000$
Road Betterments - Allen Drive 30,000 40,000
Ebeneezer Lane Road Bett 70,000 80,000
S. Pond DR/Captain Fitz Rd 90,000 100,000
School Renovations 2,465,000 2,610,000
Road Repairs 1,595,000 1,730,000
MWPAT Title V 50,000 60,000
Punkhorn Land Acquisition - 6/30/11 395,000 430,000
Heights Road Betterments - 6/30/11 40,000 60,000
Lane Road Betterments - 6/30/11 10,000 15,000
Police Station 165,000 330,000
MWPAT #97-1156 Title V 20,600 31,000
Land Purchase 120,000 180,000
Land Purchase 915,000 1,045,000
Fire Station - 5/3/17 5,850,000 6,175,000
Road Repairs - 5/3/17 1,930,000 2,090,000
Library Parking Lot - 5/3/17 245,000 270,000
Tower Hill Circle - RD Bett - 5/3/17 185,000 205,000
Moss/Commons - RD Bett - 5/3/17 60,000 65,000
Public Way - 3/15/18 95,000 105,000
Fire Building - 3/15/18 5,700,000 6,005,000
TriTown Septage - 3/15/18 565,000 630,000.00
Total Governmental Activities 20,620,600$ 22,286,000$
Outstanding Outstanding
Business-type Activities June 30, 2019 June 30, 2018
Golf Course 770,000$ 1,505,000$
Land Purchase - Copelas 485,000 520,000
Well Access Road 180,000 210,000
Water 705,000 750,000
WELL #6 & WATER MAIN - 2,000,000 2,135,000
Water offices/garage 1,100,000 1,225,000
Water Mains 145,000 290,000
Slough Road 245,000 280,000
Water Betterments - Fiddler's Lane 15,000 20,000
Total Business-type Activities 5,645,000$ 6,935,000$
Grand Total - All long-term debt 26,265,600$ 29,221,000$
Outstanding Debt at Year End
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Please refer to Notes 5 and 9 for further discussion of the major capital asset and debt activity.
Economic Factors and Next Year’s Budgets & Tax Rate
The Town’s leadership (elected and appointed officials) considered many factors when setting the fiscal 2020
budget and tax rates including the following:
• The Fiscal 2020 tax rate was set at $8.62, a $.04 cent increase over Fiscal 2020. The excess levy capacity was
$205.975.
• The Selectboard voted during their classification hearing to maintain the same tax rate for all classes of
property.
• Fiscal 2019 budgetary issues were Health Care (for active and retired employees), Pension Obligations, and
State Aid for both the Town and Nauset Regional School District,
• OPEB Liability Funding: Brewster Invested $1,123,000 with the HSCB in FY 2014 and is committed to an
annual contribution. The Fiscal 2016 contribution was $50,000, $75,000 in Fiscal 2017, $55,000 in Fiscal
2018, and $100,000 in Fiscal 2019. The June 30, 2019 balance in this fund is $1,961,324.
• Approximately $408,891 of Chapter 90 Highway Funds was expended on local roadway repairs and
construction. Approximately $500,000 Chapter 90 Highway Funds will be expended in Fiscal 2020.
Request for Information
This financial report is designed to provide a general overview of the Town of Brewster’s finances for all those
with an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Finance Director, 2198 Main
Street, Brewster, MA 02631.
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 21,369,237$ 2,951,130$ 24,320,367$
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 354,504 - 354,504
TAX LIENS 494,560 - 494,560
MOTOR VEHICLE EXCISE TAXES 90,679 - 90,679
USER FEES - 933,284 933,284
DEPARTMENTAL AND OTHER 242,108 - 242,108
INTERGOVERNMENTAL 350,437 - 350,437
SPECIAL ASSESSMENTS 81,098 3,594 84,692
NONCURRENT:
RESTRICTED ASSETS:
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
SPECIAL ASSESSMENTS 455,842 14,039 469,881
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 87,557,389 22,585,442 110,142,831
TOTAL ASSETS 110,995,854 26,487,489 137,483,343
DEFERRED OUTFLOWS OF RESOURCES
RELATED TO PENSIONS 4,450,246 854,613 5,304,859
RELATED TO POST EMPLOYMENT BENEFITS 704,487 99,025 803,512
TOTAL DEFERRED OUTFLOWS OF RESOURCES 5,154,733 953,638 6,108,371
LIABILITIES
CURRENT:
ACCOUNTS PAYABLE 2,524,594 171,673 2,696,267
ACCRUED INTEREST 157,469 30,308 187,777
LANDFILL POSTCLOSURE CARE COSTS 43,988 - 43,988
CAPITAL LEASES 199,488 - 199,488
BONDS AND NOTES PAYABLE 3,725,455 1,365,000 5,090,455
NONCURRENT:
LANDFILL POSTCLOSURE CARE COSTS 190,512 - 190,512
POSTEMPLOYMENT BENEFITS 13,544,369 1,903,843 15,448,212
NET PENSION LIABILITY 24,662,369 4,736,092 29,398,461
CAPITAL LEASES 608,557 - 608,557
BONDS AND NOTES PAYABLE 19,535,321 4,320,000 23,855,321
TOTAL LIABILITIES 65,192,122 12,526,916 77,719,038
DEFERRED INFLOWS OF RESOURCES
RELATED TO PENSIONS 579,347 111,256 690,603
RELATED TO POST EMPLOYMENT BENEFITS 6,710,445 943,243 7,653,688
TOTAL DEFERRED OUTFLOWS OF RESOURCES 7,289,792 1,054,499 8,344,291
NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 65,574,910 17,069,399 82,644,309
RESTRICTED FOR:
PERMANENT FUNDS:
EXPENDABLE 137,317 - 137,317
NONEXPENDABLE 150,388 - 150,388
OTHER PURPOSES 10,254,929 - 10,254,929
UNRESTRICTED (32,448,871) (3,209,687) (35,658,558)
TOTAL NET POSITION 43,668,673$ 13,859,712$ 57,528,385$
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2019
PRIMARY GOVERNMENT
See accompanying notes to the basic financial statements
- 11 -
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND NET (EXPENSE)
FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT:
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT 4,199,188$ 1,064,671$ 469,703$ 497,357$ (2,167,457)$
PUBLIC SAFETY 6,867,643 1,379,081 487,248 - (5,001,314)
EDUCATION 20,247,626 112,863 1,301,986 - (18,832,777)
PUBLIC WORKS 2,423,680 576,343 148,586 434,799 (1,263,952)
HUMAN SERVICES 1,351,050 68,544 151,859 - (1,130,647)
CULTURE & RECREATION 1,171,735 352,421 163,821 - (655,493)
EMPLOYEE BENEFITS 7,856,178 - 1,276,599 - (6,579,579)
STATE & COUNTY ASSESSMENTS 615,511 - - - (615,511)
INTEREST 652,627 - - - (652,627)
TOTAL GOVERNMENTAL ACTIVITIES 45,385,238 3,553,923 3,999,802 932,156 (36,899,357)
BUSINESS-TYPE ACTIVITIES:
GOLF 3,582,326 3,749,091 - - 166,765
WATER 2,485,811 2,210,863 68,352 - (206,596)
TOTAL BUSINESS-TYPE ACTIVITIES 6,068,137 5,959,954 68,352 - (39,831)
TOTAL PRIMARY GOVERNMENT 51,453,375$ 9,513,877$ 4,068,154$ 932,156$ (36,939,188)$
(continued)
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2019
PROGRAM REVENUES
See accompanying notes to the basic financial statements
- 12 -
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
CHANGES IN NET POSITION:
NET (EXPENSE) REVENUE FROM PREVIOUS PAGE (36,899,357)$ (39,831)$ (36,939,188)$
GENERAL REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS PAYABLE 33,599,411 - 33,599,411
TAX LIENS 101,634 - 101,634
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,632,250 - 1,632,250
HOTEL/MOTEL & MEALS TAX 1,367,058 - 1,367,058
PENALTIES AND INTEREST ON TAXES 100,376 - 100,376
PAYMENTS IN LIEU OF TAXES 14,012 - 14,012
GRANTS AND CONTRIBUTIONS NOT RESTRICTED
TO SPECIFIC PROGRAMS 2,229,761 - 2,229,761
BOND PREMIUM 1,001 - 1,001
UNRESTRICTED INVESTMENT INCOME 268,127 - 268,127
MISCELLANEOUS 11,990 - 11,990
TRANSFERS, NET 227,603 (227,603) -
TOTAL GENERAL REVENUES AND TRANSFERS 39,553,223 (227,603) 39,325,620
CHANGE IN NET POSITION 2,653,866 (267,434) 2,386,432
NET POSITION:
BEGINNING OF YEAR 41,014,807 14,127,146 55,141,953
END OF YEAR 43,668,673$ 13,859,712$ 57,528,385$
(concluded)
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2019
PRIMARY GOVERNMENT
See accompanying notes to the basic financial statements
- 13 -
TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2019
NONMAJOR TOTAL
COMMUNITY GOVERNMENTAL GOVERNMENTAL
ASSETS GENERAL PRESERVATION FUNDS FUNDS
CASH AND SHORT-TERM INVESTMENTS 10,985,579$ 4,452,078$ 5,931,580$ 21,369,237$
INVESTMENTS - - - -
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 354,504 - - 354,504
TAX LIENS 494,560 - - 494,560
MOTOR VEHICLE EXCISE TAXES 90,679 - - 90,679
DEPARTMENTAL AND OTHER - 19,775 222,333 242,108
INTERGOVERNMENTAL - - 350,437 350,437
SPECIAL ASSESSMENTS - - 536,940 536,940
TOTAL ASSETS 11,925,322$ 4,471,853$ 7,041,290$ 23,438,465$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES:
ACCOUNTS PAYABLE 1,974,221$ 12,902$ 537,471$ 2,524,594$
NOTES PAYABLE - 1,594,900 387,005 1,981,905
TOTAL LIABILITIES 1,974,221 1,607,802 924,476 4,506,499
DEFFERRED INFLOWS OF RESOURCES:
UNAVAILABLE REVENUE 770,448 19,775 759,273 1,549,496
FUND BALANCES:
NONSPENDABLE - - 150,388 150,388
RESTRICTED 243,871 2,844,276 5,438,824 8,526,971
COMMITTED 1,503,120 - - 1,503,120
ASSIGNED 1,242,849 - - 1,242,849
UNASSIGNED 6,190,813 - (231,671) 5,959,142
TOTAL FUND BALANCES 9,180,653 2,844,276 5,357,541 17,382,470
TOTAL LIABILITIES, DEFERRED INFLOW OF RESOURCES
AND FUND BALANCES 11,925,322$ 4,471,853$ 7,041,290$ 23,438,465$
See accompanying notes to the basic financial statements
- 14 -
NONMAJOR TOTAL
COMMUNITY GOVERNMENTAL GOVERNMENTAL
GENERAL PRESERVATION FUNDS FUNDS
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 33,751,025$ -$ -$ 33,751,025$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,657,004 - - 1,657,004
INTERGOVERNMENTAL 3,398,578 446,471 1,157,927 5,002,976
PAYMENTS IN LIEU OF TAXES 14,012 - - 14,012
PENALTIES & INTEREST ON TAXES 100,376 - - 100,376
FINES & FORFEITS 29,698 - - 29,698
CHARGES FOR SERVICES 566,919 - 1,911,115 2,478,034
HOTEL/MOTEL & MEALS TAX 1,367,058 - - 1,367,058
INVESTMENT INCOME 267,811 66,961 8,125 342,897
CONTRIBUTIONS AND DONATIONS - 270,000 58,360 328,360
DEPARTMENTAL AND OTHER 1,450,730 1,000,873 555,537 3,007,140
TOTAL REVENUES 42,603,211 1,784,305 3,691,064 48,078,580
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 3,092,359 2,304,091 740,485 6,136,935
PUBLIC SAFETY 5,770,084 - 1,700,815 7,470,899
EDUCATION 19,091,752 - 718,950 19,810,702
PUBLIC WORKS 2,146,080 - 761,818 2,907,898
HUMAN SERVICES 770,835 - 553,960 1,324,795
CULTURE & RECREATION 843,693 44,169 125,159 1,013,021
EMPLOYEE BENEFITS 6,891,211 - 1,619 6,892,830
STATE & COUNTY ASSESSMENTS 615,511 - - 615,511
DEBT SERVICE
PRINCIPAL 1,440,400 225,000 - 1,665,400
INTEREST 682,222 69,927 - 752,149
TOTAL EXPENDITURES 41,344,147 2,643,187 4,602,806 48,590,140
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,259,064 (858,882) (911,742) (511,560)
OTHER FINANCING SOURCES (USES)
PROCEEDS FROM BONDS PREMIUM - - 1,001 1,001
OPERATING TRANSFERS IN 1,048,994 75,000 543,824 1,667,818
OPERATING TRANSFERS OUT (443,824) (100,000) (896,391) (1,440,215)
TOTAL OTHER FINANCING SOURCES (USES)605,170 (25,000) (351,566) 228,604
NET CHANGE IN FUND BALANCES 1,864,234 (883,882) (1,263,308) (282,956)
FUND BALANCES AT BEGINNING OF YEAR 7,316,419 3,728,158 6,620,849 17,665,426
FUND BALANCES AT END OF YEAR 9,180,653$ 2,844,276$ 5,357,541$ 17,382,470$
TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2019
See accompanying notes to the basic financial statements
- 15 -
TOTAL GOVERNMENTAL FUND BALANCES 17,382,470$
CAPITAL ASSETS (NET) USED IN GOVERNMENTAL ACTIVITIES ARE NOT FINANCIAL RESOURCES
AND, THEREFORE, ARE NOT REPORTED IN THE FUNDS 87,557,389
ACCOUNTS RECEIVABLE ARE NOT AVAILABLE TO PAY FOR CURRENT-PERIOD
EXPENDITURES AND, THEREFORE, ARE DEFERRED IN THE FUNDS 1,549,496
IN THE STATEMENT OF ACTIVITIES, INTEREST IS ACCRUED ON OUTSTANDING LONG-TERM DEBT,
WHEREAS IN GOVERNMENTAL FUNDS INTEREST IS NOT REPORTED UNTIL DUE (157,469)
LONG-TERM LIABILITIES ARE NOT DUE AND PAYABLE IN THE CURRENT PERIOD AND, THEREFORE,
ARE NOT REPORTED IN THE GOVERNMENTAL FUNDS
BONDS AND NOTES PAYABLE (20,620,600)
CAPITAL LEASES (808,045)
NET PENSION LIABILITY (24,662,369)
DEFERRED OUTFLOWS OF RESOURCES - RELATED TO PENSION 4,450,246
DEFERRED INFLOWS OF RESOURCES - RELATED TO PENSION (579,347)
POSTEMPLOYMENT BENEFITS (13,544,369)
DEFERRED OUTFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS 704,487
DEFERRED INFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS (6,710,445)
UNAMORTIZED BOND PREMIUM (658,271)
LANDFILL POSTCLOSURE CARE COSTS (234,500)
NET EFFECT OF REPORTING LONG-TERM LIABILITIES (62,663,213)
NET POSITION OF GOVERNMENTAL ACTIVITIES 43,668,673$
TOWN OF BREWSTER, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION
JUNE 30, 2019
See accompanying notes to the basic financial statements
- 16 -
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (282,956)$
GOVERNMENTAL FUNDS REPORT CAPITAL OUTLAYS AS EXPENDITURES. HOWEVER, IN THE
STATEMENT OF ACTIVITIES THE COST OF THOSE ASSETS IS ALLOCATED OVER THEIR
ESTIMATED USEFUL LIVES AND REPORTED AS DEPRECIATION EXPENSE.
CAPITAL OUTLAY 4,305,856
DEPRECIATION EXPENSE (2,284,277)
NET EFFECT OF REPORTING CAPITAL ASSETS 2,021,579
REVENUES IN THE STATEMENT OF ACTIVITIES THAT DO NOT PROVIDE CURRENT FINANCIAL
RESOURCES ARE FULLY DEFERRED IN THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES. THEREFORE, THE RECOGNITION OF REVENUE FOR VARIOUS
TYPES OF ACCOUNTS RECEIVABLE (I.E. REAL ESTATE AND PERSONAL PROPERTY, MOTOR
VEHICLE EXCISE, ETC.) DIFFER BETWEEN THE TWO STATEMENTS. THIS AMOUNT REPRESENTS
THE NET CHANGE IN DEFERRED REVENUE (268,080)
THE ISSUANCE OF LONG-TERM DEBT (E.G., BONDS) PROVIDES CURRENT FINANCIAL
RESOURCES TO GOVERNMENTAL FUNDS, WHILE THE REPAYMENT OF THE PRINCIPAL OF LONG-
TERM DEBT CONSUMES THE FINANCIAL RESOURCES OF GOVERNMENTAL FUNDS. NEITHER
TRANSACTION, HOWEVER, HAS ANY EFFECT ON NET ASSETS. ALSO, GOVERNMENTAL FUNDS
REPORT THE EFFECT OF ISSUANCE COSTS, PREMIUMS, DISCOUNTS, AND SIMILAR ITEMS WHEN
DEBT IS FIRST ISSUED, WHEREAS THESE AMOUNTS ARE DEFERRED AND AMORTIZED IN THE
STATEMENT OF ACTIVITIES.
DEBT SERVICE PRINCIPAL PAYMENTS 1,665,400
CAPITAL LEASE - PRINCIPAL PAYMENTS 292,249
NET EFFECT OF REPORTING LONG-TEM DEBT 1,957,649
SOME EXPENSES REPORTED IN THE STATEMENT OF ACTIVITIES DO NOT REQUIRE THE USE OF
CURRENT FINANCIAL RESOURCES AND, THEREFORE, ARE NOT REPORTED AS EXPENDITURES
IN THE GOVERNMENTAL FUNDS.
NET CHANGE IN POSTEMPLOYMENT BENEFITS 4,289,763
NET CHANGE IN DEFERRED OUTFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS 656,265
NET CHANGE IN DEFERRED INFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS (4,701,075)
NET CHANGE IN LANDFILL POSTCLOSURE CARE ACCRUAL 89,500
NET CHANGE IN NET PENSION LIABILITY (3,643,427)
NET CHANGE IN DEFERRED OUTFLOWS OF RESOURCES - RELATED TO PENSIONS 873,611
NET CHANGE IN DEFERRED INFLOWS OF RESOURCES - RELATED TO PENSIONS 1,561,515
NET CHANGE IN UNAMORTIZED BOND PREMIUM 87,382
NET CHANGE IN ACCRUED INTEREST ON LONG-TERM DEBT 12,140
NET EFFECT OF RECORDING LONG-TERM LIABILITIES (774,326)
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 2,653,866$
TOWN OF BREWSTER, MASSACHUSETTS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2019
See accompanying notes to the basic financial statements
- 17 -
ACTUAL
ORIGINAL FINAL BUDGETARY VARIANCE
BUDGET BUDGET AMOUNTS OVER(UNDER)
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 33,632,404$ 33,632,404$ 33,751,025$ 118,621$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,659,200 1,659,200 1,657,004 (2,196)
INTERGOVERNMENTAL 1,840,629 1,840,629 2,117,856 277,227
PAYMENTS IN LIEU OF TAXES 7,000 7,000 14,012 7,012
PENALTIES & INTEREST ON TAXES 218,000 218,000 100,376 (117,624)
FINES & FORFEITS 28,200 28,200 29,698 1,498
HOTEL/MOTEL & MEALS TAX 1,331,000 1,331,000 1,367,058 36,058
INVESTMENT INCOME 113,784 113,784 208,624 94,840
DEPARTMENTAL AND OTHER 1,777,000 1,777,000 2,017,649 240,649
TOTAL REVENUES 40,607,217 40,607,217 41,263,302 656,085
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 3,926,401 4,151,690 3,863,061 288,629
PUBLIC SAFETY 6,171,437 6,132,937 6,020,689 112,248
EDUCATION 19,187,412 19,187,412 19,156,593 30,819
PUBLIC WORKS 2,601,518 2,580,518 2,433,767 146,751
HUMAN SERVICES 876,345 834,873 795,281 39,592
CULTURE & RECREATION 971,420 971,420 947,353 24,067
EMPLOYEE BENEFITS 5,899,491 5,871,281 5,659,244 212,037
STATE & COUNTY ASSESSMENTS 679,088 679,088 615,511 63,577
DEBT SERVICE
PRINCIPAL 1,395,400 1,490,400 1,440,400 50,000
INTEREST 683,813 707,748 678,098 29,650
TOTAL EXPENDITURES 42,392,325 42,607,367 41,609,997 997,370
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,785,108) (2,000,150) (346,695) 1,653,455
OTHER FINANCING SOURCES (USES):
OPERATING TRANSFERS IN 468,667 621,827 1,048,994 427,167
OPERATING TRANSFERS OUT (425,706) (443,824) (443,824) -
TOTAL OTHER FINANCING SOURCES (USES)42,961 178,003 605,170 427,167
NET CHANGE IN FUND BALANCE (1,742,147) (1,822,147) 258,475 2,080,622
BUDGETARY FUND BALANCE, BEGINNING OF YEAR 4,809,226 4,809,226 4,809,226 -
BUDGETARY FUND BALANCE, END OF YEAR 3,067,079$ 2,987,079$ 5,067,701$ 2,080,622$
TOWN OF BREWSTER, MASSACHUSETTS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2019
BUDGETED AMOUNTS
See accompanying notes to the basic financial statements
- 18 -
ASSETS GOLF WATER TOTAL
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 139,041$ 2,812,089$ 2,951,130$
USER FEES - 933,284 933,284
SPECIAL ASSESSMENTS - 3,594 3,594
TOTAL CURRENT ASSETS 139,041 3,748,967 3,888,008
NONCURRENT:
SPECIAL ASSESSMENTS - 14,039 14,039
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 8,194,300 14,391,142 22,585,442
TOTAL NONCURRENT ASSETS 8,194,300 14,405,181 22,599,481
TOTAL ASSETS 8,333,341 18,154,148 26,487,489
DEFERRED OUTFLOWS OF RESOURCES
RELATED TO PENSIONS 472,663 381,950 854,613
RELATED TO POST EMPLOYMENT BENEFITS 63,526 35,499 99,025
TOTAL DEFERRED OUTFLOWS OF RESOURCES 536,189 417,449 953,638
LIABILITIES
CURRENT:
ACCOUNTS PAYABLE 118,091 53,582 171,673
ACCRUED INTEREST 10,911 19,397 30,308
BONDS AND NOTES PAYABLE 810,000 555,000 1,365,000
TOTAL CURRENT LIABILITIES 939,002 627,979 1,566,981
NONCURRENT:
POSTEMPLOYMENT BENEFITS 1,221,347 682,496 1,903,843
NET PENSION LIABILITY 2,619,403 2,116,689 4,736,092
BONDS AND NOTES PAYABLE - 4,320,000 4,320,000
TOTAL NONCURRENT LIABILITIES 3,840,750 7,119,185 10,959,935
TOTAL LIABILITIES 4,779,752 7,747,164 12,526,916
DEFERRED INFLOWS OF RESOURCES
RELATED TO PENSIONS 61,533 49,723 111,256
RELATED TO POST EMPLOYMENT BENEFITS 605,106 338,137 943,243
TOTAL DEFERRED INFLOWS OF RESOURCES 666,639 387,860 1,054,499
NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 7,384,300 9,685,099 17,069,399
UNRESTRICTED (3,961,161) 751,474 (3,209,687)
TOTAL NET POSITION 3,423,139$ 10,436,573$ 13,859,712$
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2019
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 19 -
GOLF WATER TOTAL
OPERATING REVENUES:
CHARGES FOR SERVICES 3,749,091$ 2,210,863$ 5,959,954$
DEPARTMENTAL AND OTHER - 68,352 68,352
TOTAL OPERATING REVENUES 3,749,091 2,279,215 6,028,306
OPERATING EXPENSES:
GENERAL SERVICES 3,100,605 1,891,974 4,992,579
DEPRECIATION 430,484 412,285 842,769
TOTAL OPERATING EXPENSES 3,531,089 2,304,259 5,835,348
OPERATING INCOME (LOSS)218,002 (25,044) 192,958
NON-OPERATING REVENUES (EXPENSES):
INTEREST EXPENSE (51,237) (181,552) (232,789)
INCOME (LOSS) BEFORE OPERATING TRANSFERS 166,765 (206,596) (39,831)
OPERATING TRANSFERS:
OPERATING TRANSFERS IN 9,981 - 9,981
OPERATING TRANSFERS OUT (206) (237,378) (237,584)
TOTAL OPERATING TRANSFERS 9,775 (237,378) (227,603)
CHANGE IN NET POSITION 176,540 (443,974) (267,434)
NET POSITION AT BEGINNING OF YEAR 3,246,599 10,880,547 14,127,146
NET POSITION AT END OF YEAR 3,423,139$ 10,436,573$ 13,859,712$
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2019
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 20 -
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2019
GOLF WATER TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES:
RECEIPTS FROM CUSTOMERS AND USERS 3,749,091$ 2,851,312$ 6,600,403$
PAYMENTS TO SUPPLIERS (1,675,020) (992,051) (2,667,071)
PAYMENTS TO EMPLOYEES (1,373,398) (857,915) (2,231,313)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 700,673 1,001,346 1,702,019
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING TRANSFERS IN 9,981 - 9,981
OPERATING TRANSFERS OUT (206) (237,378) (237,584)
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES 9,775 (237,378) (227,603)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
NET PROCEEDS FROM THE ISSUANCE/RETIREMENT OF BONDS AND NOTES (40,000) - (40,000)
PRINCIPAL PAYMENTS ON BONDS AND NOTES (735,000) (555,000) (1,290,000)
PRINCIPAL PAYMENTS ON CAPITAL LEASES (50,904) - (50,904)
ACQUISITION AND CONSTRUCTION OF CAPITAL ASSETS (52,617) (381,377) (433,994)
INTEREST EXPENSE (61,237) (185,433) (246,670)
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (939,758) (1,121,810) (2,061,568)
NET INCREASE (DECREASE) IN CASH AND SHORT TERM INVESTMENTS (229,310) (357,842) (587,152)
CASH AND SHORT TERM INVESTMENTS - BEGINNING OF YEAR 368,351 3,169,931 3,538,282
CASH AND SHORT TERM INVESTMENTS- END OF YEAR 139,041$ 2,812,089$ 2,951,130$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
OPERATING INCOME (LOSS)218,002$ (25,044)$ 192,958$
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 430,484 412,285 842,769
(INCREASE) DECREASE IN ACCOUNTS RECEIVABLE - 572,096 572,096
(INCREASE) DECREASE IN DEFERRED OUTFLOWS OF RESOURCES (151,965) (108,048) (260,013)
INCREASE (DECREASE) IN ACCOUNTS PAYABLE (54,058) (49,353) (103,411)
INCREASE (DECREASE) IN DEFERRED INFLOWS OF RESOURCES 258,064 102,866 360,930
INCREASE (DECREASE) IN NET PENSION LIABILITY 386,970 312,703 699,673
INCREASE (DECREASE) IN POSTEMPLOYMENT BENEFITS (386,824) (216,159) (602,983)
TOTAL ADJUSTMENTS 482,671 1,026,390 1,509,061
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 700,673$ 1,001,346$ 1,702,019$
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 21 -
TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2019
POSTEMPLOYMENT PRIVATE
BENEFITS PURPOSE AGENCY
TRUST TRUST FUNDS FUNDS
ASSETS
CASH AND SHORT-TERM INVESTMENTS -$ 90,433$ 90,826$
INVESTMENTS 1,961,324 - -
TOTAL ASSETS 1,961,324 90,433 90,826
LIABILITIES
ACCOUNTS PAYABLE - - 35,208
OTHER LIABILITIES - - 55,618
TOTAL LIABILITIES - - 90,826
NET POSITION
NET POSITION - HELD IN TRUST FOR OPEB AND OTHER PURPOSES 1,961,324$ 90,433$ -$
See accompanying notes to the basic financial statements
- 22 -
POSTEMPLOYMENT PRIVATE
BENEFITS PURPOSE
TRUST TRUST FUNDS
ADDITIONS:
CONTRIBUTIONS:
CONTRIBUTIONS -$ 18,388$
EMPLOYER CONTRIBUTIONS 100,000 -
EMPLOYER CONTRIBUTIONS TO PAY FOR OPEB BENEFITS 554,673 -
NET INVESTMENT INCOME (LOSS):
INVESTMENT INCOME 106,780 1,376
TOTAL ADDITIONS 761,453 19,764
DEDUCTIONS:
BENEFIT PAYMENTS 554,673 -
EDUCATION - 12,593
TOTAL DEDUCTIONS 554,673 12,593
CHANGE IN NET POSITION 206,780 7,171
NET POSITION AT BEGINNING OF YEAR 1,754,544 83,262
NET POSITION AT END OF YEAR 1,961,324$ 90,433$
TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FISCAL YEAR ENDED JUNE 30, 2019
See accompanying notes to the basic financial statements
- 23 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 24 -
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying basic financial statements of the Town of Brewster, Massachusetts (the Town) have
been prepared in accordance with accounting principles generally accepted in the United States of
America (GAAP). The Governmental Accounting Standards Board (GASB) is the recognized standard-
setting body for establishing governmental accounting and financial reporting principles. The following is
a summary of the more significant Town accounting policies:
A. Reporting Entity
Primary Government
The Town is a municipal corporation that is governed by an elected five member Board of Selectmen (the
Board). The Board is responsible for appointing a Town Administrator whose responsibility is to manage
the day to day operations. For financial reporting purposes, the Town has included all funds,
organizations, account groups, agencies, boards, commissions and institutions. The Town has also
considered all potential component units, blended or discretely presented, for which it is financially
accountable as well as other organizations for which the nature and significance of their relationship with
the Town are such that exclusion would cause the basic financial statements to be misleading or
incomplete. Blended component units, although legally separate entities, are, in substance, part of the
government’s operations and discretely presented component units are reported in a separate column in
the government-wide financial statements to emphasize that they are legally separate from the
government. It has been determined that there are no component units (blended or discretely presented)
for inclusion in the primary government’s financial reporting entity.
Joint Ventures
Municipal joint ventures pool resources to share the costs, risks and rewards of providing services to their
participants, the general public or others. The Town is a participant in the following joint ventures:
The Nauset Regional School District (the District) is governed by a ten (10) member school committee
consisting of three (3) elected representatives from the Town of Brewster. The Town is indirectly liable
for debt and other expenditures of the District and is assessed annually for its share of the operating and
capital costs. Separate financial statements may be obtained by writing to the Treasurer of the District at
the above address. The Town has an equity interest of approximately 46.42% in the joint venture.
Name Purpose Address
Annual
Assessment
Nauset Regional To provide education services 78 Eldredge Parkway $ 10,512,858
School District Orleans, MA 02653
Cape Cod Regional
Technical High
School
To provide vocational education 351 Pleasant Lake Ave
Harwich, MA 02645
$ 845,458
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 25 -
The Cape Cod Regional Technical High School is governed by a twenty-three (23) member school
committee consisting of two (2) elected representatives from the Town of Brewster. The Town is
indirectly liable for debt and other expenditures of the District and is assessed annually for its share of the
operating and capital costs. Separate financial statements may be obtained by writing to the Treasurer of
the District at the above address. The Town has an equity interest of approximately 6.30% in the joint
venture.
Pursuant to an inter-municipal agreement authorized by state statutes, the Town joined the Town of
Orleans, and the Town of Eastham to provide for sharing of the capital, operating and maintenance and
other costs of a Septic Treatment Facility (Tri-Town Septage Facility) for the mutual advantage of the
Towns. A three member Board of Managers for the joint venture is appointed for oversight purposes, such
Board consisting of the chairman of each Town’s Board of Selectmen. An annual budget for the operation
and management of the facility is prepared by the facility superintendent and submitted to the Board of
Managers.
B. Government-Wide and Fund Financial Statements
Government-Wide Financial Statements
The government-wide financial statements (i.e., statement of net position and the statement of activities)
report information on all of the non-fiduciary activities of the primary government. Governmental
activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which are supported primarily by user fees and charges.
Fund Financial Statements
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though fiduciary funds are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements. Nonmajor funds are aggregated and displayed in a single column.
Major Fund Criteria
A fund is considered major if it is the primary operating fund of the Town or it meets the
following criteria:
a. If the total assets and deferred outflows of resources, liabilities and deferred inflows of
resources, revenues, or expenditures/expenses of an individual governmental or enterprise
fund are at least 10 percent of the corresponding element (total assets and deferred outflows
of resources, liabilities and deferred inflows of resources, etc.) for all funds of that category
or type (total governmental or total enterprise funds), and
b. If the total assets and deferred outflows of resources, liabilities and deferred inflows of
resources, revenues, or expenditures/expenses of the individual governmental fund or
enterprise fund are at least 5 percent of the corresponding element for all governmental and
enterprise funds combined.
Additionally, any other governmental or enterprise fund that management believes is particularly
significant to the basic financial statements may be reported as a major fund. Fiduciary funds are reported
by fund type.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 26 -
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses
are recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as
revenues in the fiscal year for which they are levied. Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by the provider have been met.
The statement of activities demonstrates the degree to which the direct expenses of a particular function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include the following:
a. Charges to customers or applicants who purchase, use, or directly benefit from goods, services,
or privileges provided by a given function or segment.
b. Grants and contributions that are restricted to meeting the operational requirements of a
particular function or segment.
c. Grants and contributions that are restricted to meeting the capital requirements of a particular
function or segment.
Taxes and other items not identifiable as program revenues are reported as general revenues.
For the most part, the effect of interfund activity has been removed from the government-wide financial
statements. Exceptions are charges between the general fund and the various enterprise funds. Elimination
of these charges would distort the direct costs and program revenues reported for the functions affected.
Fund Financial Statements
Governmental Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting,
revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). Measurable means the amount of the transaction can be determined and available means
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
Expenditures are recorded when the related fund liability is incurred, except for interest on general long-
term debt which is recognized when due, and the noncurrent portion of landfill post closure care costs,
capital leases, net pension liability, and other postemployment benefits (OPEB) which are recognized
when the obligations are expected to be liquidated with current expendable available resources.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 27 -
In applying the susceptible to accrual concept to intergovernmental revenues, there are essentially two
types of revenues. In one, moneys must be expended on the specific purpose or project before any
amounts will be paid to the Town; therefore, revenues are recognized based upon the expenditures
incurred. In the other, moneys are virtually unrestricted and are usually revocable only for failure to
comply with prescribed compliance requirements. These resources are reflected as revenues at the time of
receipt or earlier if the susceptible to accrual criteria are met.
The Town considers property taxes as available if they are due and collected within 60 days after fiscal
year-end. Licenses and permits, user charges, fines and forfeitures, and miscellaneous revenues are
recorded as revenues when received. Investment earnings are recorded as earned.
The Town reports the following major governmental funds:
The General fund is the primary operating fund of the Town. It is used to account for all financial
resources, except those that are required to be accounted for in another fund.
The Community Preservation fund is a special revenue fund used to account for the accumulation
of resources to purchase open space, assist in development of affordable housing, or preservation
of historic property under the guidelines of the Community Preservation Act of the Massachusetts
general laws.
The Nonmajor Governmental funds consist of other special revenue, capital projects and
permanent funds that are aggregated and presented in the nonmajor governmental funds column
on the governmental funds financial statements. The following describes the general use of these
fund types:
• The Special Revenue fund is used to account for the proceeds of specific revenue sources
(other than permanent funds or capital projects funds) that are restricted by law or
administrative action to expenditures for specified purposes.
• The Capital Projects fund is used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by enterprise
and trust funds).
• The Permanent fund is used to account for financial resources that are legally restricted to the
extent that only earnings, not principal, may be used for purposes that support the
governmental programs.
Proprietary Fund Financial Statements
Proprietary fund financial statements are reported using the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and
expenses are recorded when the liabilities are incurred.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 28 -
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 the proprietary funds principal ongoing operations. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
The following major proprietary funds are reported:
The Water Enterprise fund is used to account for water activities.
The Golf Enterprise fund is used to account for golf activities.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements are reported using the flow of economic resources measurement focus
and use the accrual basis of accounting. Fiduciary funds are used to account for assets held by the Town
in a trustee capacity for others that cannot be used to support the governmental programs.
The following fiduciary fund types are reported:
The Private-Purpose Trust fund is used to account for trust arrangements, other than those
properly reported in the permanent fund (nonmajor governmental funds), under which principal
and investment income exclusively benefit individuals, private organizations, or other
governments.
The Agency fund is used to account for assets held in a purely custodial capacity.
The Postemployment Benefit Trust is used to account for the assets held that will fund the long
term liability associated with the Towns retiree’s health benefits.
D. Cash and Investments
Government-Wide and Fund Financial Statements
Cash and short term investments are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition. Investments are
reported at fair value.
E. Fair Value Measurements
The Town reports required types of financial instruments in accordance with the fair value standards.
These standards require an entity to maximize the use of observable inputs (such as quoted prices in
active markets) and minimize the use of unobservable inputs (such as appraisals or valuation techniques)
to determine fair value. Fair value standards also require the government to classify these financial
instruments into a three-level hierarchy, based on the priority of inputs to the valuation technique or in
accordance with net asset value practical expedient rules, which allow for either Level 2 or Level 3
depending on lock up and notice periods associated with the underlying funds. Instruments measured and
reported at fair value are classified and disclosed in one of the following categories:
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 29 -
Level 1 – Quoted prices are available in active markets for identical instruments as of the reporting date.
Instruments, which are generally included in this category, include actively traded equity and debt
securities, U.S. government obligations, and mutual funds with quoted market prices in active markets.
Level 2 – Pricing inputs are other than quoted in active markets, which are either directly or indirectly
observable as of the reporting date, and fair value is determined through the use of models or other
valuation methodologies. Certain fixed income securities, primarily corporate bonds, are classified as
Level 2 because fair values are estimated using pricing models, matrix pricing, or discounted cash flows.
Level 3 – Pricing inputs are unobservable for the instrument and include situations where there is little, if
any, market activity for the instrument. The inputs into the determination of fair value require significant
management judgment or estimation. In some instances the inputs used to measure fair value may fall into
different levels of the fair value hierarchy and is based on the lowest level of input that is significant to
the fair value measurement. Market price is affected by a number of factors, including the type of
instrument and the characteristics specific to the instrument. Instruments with readily available active
quoted prices generally will have a higher degree of market price observability and a lesser degree of
judgment used in measuring fair value. It is reasonably possible that change in values of these instruments
will occur in the near term and that such changes could materially affect amounts reported in these
financial statements. For more information on the fair value of the Town’s financial instruments, see Note
3 – Fair Value Measurements.
F. Accounts Receivable
Government-Wide and Fund Financial Statements
The recognition of revenue related to accounts receivable reported in the government-wide financial
statements and proprietary and fiduciary funds financial statements are reported under the accrual basis of
accounting. The recognition of revenue related to accounts receivable reported in the governmental funds
financial statements are reported under the modified accrual basis of accounting.
Real Estate, Personal Property Taxes and Tax Liens
Real estate and personal property taxes are based on values assessed as of each January 1 and are
normally due on the subsequent November 1 and May 1. Property taxes that remain unpaid after the
respective due dates are subject to penalties and interest charges. By law, all taxable property in the
Commonwealth must be assessed at 100% of fair market value. Once levied, which is required to be at
least 30 days prior to the due date, these taxes are recorded as receivables in the fiscal year of levy.
Based on the Town’s experience, most property taxes are collected during the year in which they are
assessed. Liening of properties on which taxes remain unpaid occurs annually. The Town ultimately has
the right to foreclose on all properties where the taxes remain unpaid.
A statewide property tax limitation statute known as “Proposition 2 ½” limits the amount of increase in
property tax levy in any fiscal year. Generally, Proposition 2 ½ limits the total levy to an amount not
greater than 2 ½ % of the total assessed value of all taxable property within the Town. Secondly, the tax
levy cannot increase by more than 2 ½ % of the prior year’s levy plus the taxes on property newly added
to the tax rolls. Certain provisions of Proposition 2 ½ can be overridden by a Town-wide referendum.
Real estate receivables are secured via the tax lien process and are considered 100% collectible.
Accordingly, an allowance for uncollectibles is not reported.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 30 -
Personal property taxes cannot be secured through the lien process. The allowance of uncollectibles is
estimated based on historical trends and specific account analysis.
Motor Vehicle Excise
Motor vehicle excise taxes are assessed annually for each vehicle registered in the Town and are recorded
as receivables in the fiscal year of the levy. The Commonwealth is responsible for reporting the number
of vehicles registered and the fair values of those vehicles. The tax calculation is the fair value of the
vehicle multiplied by $25 per $1,000 of value.
The allowance for uncollectibles is estimated based on historical trends and specific account analysis.
Water
User fees are levied semi-annually based on meter readings and are subject to penalties if they are not
paid by the respective due date. Water liens are processed in December of every year and included as a
lien on the property owner's tax bill. Water charges and related liens are recorded as receivables in the
fiscal year of the levy.
Since the receivables are secured via the lien process, these accounts are considered 100% collectible and
therefore do not report an allowance for uncollectibles.
Special Assessments
Governmental activities special assessments consist primarily of Road Betterments, and Title V
receivables which are recorded as receivables in the fiscal year accrued. Since the receivables are secured
via the lien process, these assets are considered 100% collectable and therefore do not report an allowance
for uncollectibles.
Departmental and Other
Departmental and other receivables consist primarily of ambulance receivables and are recorded as
receivables in the fiscal year accrued. The allowance for uncollectibles for the ambulance receivables is
estimated based on historical trends and specific account analysis.
Intergovernmental
Various federal and state grants for operating and capital purposes are applied for and received annually.
For non-expenditure driven grants, receivables are recognized as soon as all eligibility requirements
imposed by the provider have been met. For expenditure driven grants, receivables are recognized when
the qualifying expenditures are incurred and all other grant requirements are met.
These receivables are considered 100% collectible and therefore do not report an allowance for
uncollectibles.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 31 -
G. Inventories
Government-Wide and Fund Financial Statements
Inventories of the governmental funds and the water and golf enterprise funds are recorded as
expenditures at the time of purchase. Such inventories are not material in total to the basic financial
statements, and therefore are not reported.
H. Capital Assets
Government-Wide and Proprietary Fund Financial Statements
Capital assets, which include land, vehicles, buildings and improvements, capital improvements,
machinery and equipment, and infrastructure (e.g., water mains, roadways, and similar items) and
construction in progress, are reported in the applicable governmental or business-type activities column of
the government-wide financial statements, and the proprietary funds financial statements. Capital assets
are recorded at historical cost, or at estimated historical cost, if actual historical cost is not available.
Donated capital assets are recorded at the estimated fair market value at the date of donation. Except for
the capital assets of the governmental activities column in the government-wide financial statements,
construction period interest is capitalized on constructed capital assets if material.
All purchases and construction costs in excess of $15,000, and all land costs, are capitalized at the date of
acquisition or construction, respectively, with expected useful lives of five years or greater.
Capital assets (excluding land and construction in progress) are depreciated on a straight-line basis. The
estimated useful lives of capital assets are as follows:
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend
asset lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized.
Governmental Fund Financial Statements
Capital asset costs are recorded as expenditures in the fiscal year of purchase for the various funds.
Asset Class
Estimated
Useful Life
(in years)
Buildings and Improvements 20-40
Capital Improvements (other than buildings) 20
Machinery, Equipment and Vehicles 5-15
Infrastructure 40
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 32 -
I. Interfund Receivables and Payables
During the course of its operations, transactions occur between and within individual funds that may
result in amounts owed between funds.
Government-Wide Financial Statements
Transactions of a buyer/seller nature between and within governmental funds are eliminated from the
governmental activities in the statement of net position. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the statement of net position as
"internal balances".
Fund Financial Statements
Transactions of a buyer/seller nature between and within funds are not eliminated from the individual
fund statements. Receivables and payables resulting from these transactions are classified as "Due from
other funds" or "Due to other funds" on the balance sheet.
J. Interfund Transfers
During the course of its operations, resources are permanently reallocated between and within funds.
These transactions are reported as operating transfers in and operating transfers out.
Government-Wide Financial Statements
Operating transfers between and within governmental funds are eliminated from the governmental
activities in the statement of net position. Any residual balances outstanding between the governmental
activities and business-type activities are reported in the statement of activities as "Transfers, net".
Fund Financial Statements
Operating transfers between and within funds are not eliminated from the individual fund statements and
are reported as operating transfers in and operating transfers out.
K. Deferred Outflows/Inflows of Resources
Government-Wide Financial Statements (Net Position)
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense/ expenditure) until then. The Town reported deferred outflows of
resources related to postemployment benefits and pensions in this category.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 33 -
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until that time. The Town reported deferred inflows of resources related
to postemployment benefits and pensions in this category.
Governmental Fund Financial Statements
In addition to liabilities, the governmental funds balance sheet will sometimes report a separate section
for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents assets that have been recorded in the governmental fund financial statements but the
revenue is not available and so will not be recognized as an inflow of resources (revenue) until it becomes
available. The Town has recorded unavailable revenue as deferred inflows of resources in the
governmental funds balance sheet. Unavailable revenue is recognized as revenue in the conversion to the
government-wide (full accrual) financial statements.
L. Net Position and Fund Equity
Government-Wide Financial Statements (Net Position)
Net position are classified into three components:
a. Net investment in capital assets – consists of capital assets including restricted capital assets, net
of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages,
notes, or other borrowings that are attributable to the acquisition, construction, or improvement of
those assets.
b. Restricted net position – Consists of net position with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, or laws or regulations of other
governments; or (2) law through constitutional provisions or enabling legislation.
Net position have been “restricted” for the following:
• Permanent funds -expendable represents amounts held in trust for which the expenditures are
restricted by various trust agreements.
• Permanent funds -nonexpendable represents amounts held in trust for which only investment
earnings may be expended.
• Other specific purpose represents restrictions placed on assets from outside parties.
c. Unrestricted net position – All other net position that do not meet the definition of “restricted” or
“net investment in capital assets.”
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 34 -
Fund Financial Statements (Fund Balances)
The Town uses the following criteria for fund balance classification:
• For nonspendable fund balance: includes amounts that cannot be spent because they are either
(1) not in spendable form or (2) legally or contractually required to be maintained intact.
• For restricted fund balance: when constraints placed on the use of the resources are either (1)
externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments; or (2) imposed by law trough constitutional provisions or enabling legislation.
• For committed fund balance: (1) the government’s highest level of decision-making authority and
(2) the formal action that is required to be taken to establish (and modify or rescind) a fund
balance commitment.
• For assigned fund balance: (1) the body or official authorized to assign amounts to a specific
purpose and (2) the policy established by the governing body pursuant to which the authorization
is given.
• For unassigned fund balance: is the residual classification for the general fund. In other
governmental funds, if expenditures incurred for specific purposes exceeded the amounts
restricted, committed, or assigned to those purposes, it may be necessary to report a negative
unassigned fund balance.
The Town uses the following criteria for fund balance policies and procedures:
• When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available, the unrestricted amount will be considered to have been spent.
• When an expenditure is incurred for purposes for which committed, assigned, or unassigned fund
balance is available, and the least restricted amount will be considered to have been spent.
M. Long-term debt
Government-Wide and Proprietary Fund Financial Statements
Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net
position. Material bond premiums and discounts are deferred and amortized over the life of the bonds
using the effective interest method. Bonds payable are reported net of the applicable bond premium or
discount.
Governmental Fund Financial Statements
The face amount of governmental funds long-term debt is reported as other financing sources. Bond
premiums and discounts, as well as issuance costs, are recognized in the current period. Bond premiums
are reported as other financing sources and bond discounts are reported as other financing uses. Issuance
costs, whether or not withheld from the actual bond proceeds received, are reported as general
government expenditures.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 35 -
N. Investment Income
Excluding the permanent funds, investment income derived from major and nonmajor governmental
funds is legally assigned to the general fund unless otherwise directed by Massachusetts General Laws
(MGL).
O. Compensated Absences
Employees are granted sick and vacation leave in varying amounts. Upon retirement, termination or
death, certain employees are compensated for unused sick and vacation leave (subject to certain
limitations) at their then current rates of pay. The total amount of sick and vacation costs to be paid in
future years is not material to the basic financial statements and has not been recorded on the basic
financial statements.
P. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the fiduciary net position of the
Barnstable County Retirement Association (Association) and the Massachusetts Teachers Retirement
System (MTRS). Additions to/deductions from the Association’s fiduciary net position have been
determined on the same basis as they are reported by the Association. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with
the benefit terms. Investments are reported at fair value.
Q. Post Retirement Benefits
Government-Wide and Fund Financial Statements
In addition to providing pension benefits, health and life insurance coverage is provided for retired
employees and their survivors in accordance with Chapter 32B, of Massachusetts General Laws, under
various contributory plans. The cost of providing health and life insurance is recognized by recording the
employer's 50% share of insurance premiums in the general fund in the fiscal year paid. All benefits are
provided through third-party insurance carriers and health maintenance organizations that administer,
assume, and pay all claims.
R. Use of Estimates
Government-Wide and Fund Financial Statements
The preparation of the accompanying financial statements in conformity with accounting principles
generally accepted in the United States of America, requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could vary from estimates that were
used.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 36 -
S. Total Column
Government-Wide Financial Statements
The total column presented on the government-wide financial statements represents consolidated financial
information.
Fund Financial Statements
The total column on the fund financial statements is presented only to facilitate financial analysis. Data in
this column is not comparable to the consolidated financial information.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Basis of Accounting
Pursuant to Chapter 44, Section 32 of the Massachusetts General Laws, the Town adopts an annual
budget for the general fund as well as for those special revenue funds for which the provisions of Chapter
44,Section 53fl1/2 have been adopted. The budgets for all departments and operations of the Town,
except that of the public schools, are prepared under the direction of the Town Administrator. The School
Department budget is prepared under the direction of the School Committee. The level of expenditures
may not legally exceed appropriations for each department or undertaking in the following categories: (1)
salaries and wages; (2) ordinary maintenance; and (3) capital outlays.
The majority of appropriations are non-continuing which lapse at the end of each fiscal year. Others are
continuing appropriations for which the governing body has authorized that an unspent balance from a
prior fiscal year be carried forward and made available for spending in the current fiscal year. Carryover
articles, not encumbrances, are included as part of the subsequent fiscal year's original budget.
Original and supplemental appropriations are enacted upon by a Town Meeting vote. Management may
not amend the budget without seeking the approval of the governing body. The Town’s Finance
Committee can legally transfer funds from its reserve fund to other appropriations within the budget
without seeking Town Meeting approvals. The original fiscal year 2019 approved budget authorized
$41,080,866 in current year appropriations and other amounts to be raised and $1,311,459 in carryover
articles carried over from previous fiscal years. Supplemental appropriations of $215,042 were approved
at two Special Town Meetings for fiscal year 2019.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 37 -
The Finance Director has the responsibility to ensure that budgetary controls are maintained and
monitored through the accounting system.
B. Budgetary – GAAP Reconciliation
For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of
accounting (established by the Commonwealth) is followed, which differs from the GAAP basis of
accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the fiscal
year ended June 30, 2019 is presented below:
C. Excess of Expenditures over Appropriations
For the fiscal year ended June 30, 2019, actual expenditures exceeded appropriations for the capital
visioning study supplies expenditures account. These over-expenditures will be funded by available funds
during fiscal year 2020, as is allowed by Massachusetts General Laws (MGL).
D. Deficit Fund Balances
Several individual fund deficits exist within the special revenue and the governmental capital project
funds. These individual deficits will be eliminated through subsequent fiscal year budget transfers, grants,
and/or proceeds from long-term debt during fiscal year 2020.
Net change in fund balance - budgetary basis 258,475$
Basis of accounting differences:
Increase in revenue for on-behalf payments - MTRS 1,276,599
Increase in expenditures for on-behalf payments - MTRS (1,276,599)
Increase in revenue for the MWPAT subsidy 4,124
Increase in expenditures for the MWPAT subsidy (4,124)
Net Stabilization fund activity 59,187
Adjustment for current year articles 1,503,120
Adjustment for current year encumbrances 87,682
Adjustment for expenditures from prior year encumbrances (44,230)
Net change in fund balance - GAAP basis 1,864,234$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 38 -
NOTE 3 – DEPOSITS AND INVESTMENTS
State and local statutes place certain limitations on the nature of deposits and investments available to the
Town. Deposits (including demand deposits, term deposits and certificates of deposit) in any one financial
institution may not exceed certain levels unless collateralized by the financial institutions involved.
Deposits
Custodial Credit Risk - Deposits
Custodial credit risk is the risk that in the event of bank failure, the Town’s deposits may not be
returned. Massachusetts General Law Chapter 44, Section 55, limits the deposits “in a bank or
trust company, or banking company to an amount not exceeding sixty percent (60%) of the
capital and surplus of such bank or trust company or banking company, unless satisfactory
security is given to it by such bank or trust company or banking company for such excess.”
The Town does not have a formal deposit policy for custodial credit risk.
The Town carries deposits that are fully insured by the Federal Deposit Insurance Corporation
(FDIC), Share Insurance Fund (SIF), and the Depositor’s Insurance Fund (DIF). The Town also
carries deposits that are collateralized with securities held by the pledging financial Institution’s
trust department or agent but not in the Town’s name.
The following table illustrates how much of the Town’s bank deposits are insured and how much
of the Town’s bank deposits are collateralized and held by the pledging bank’s trust department
but not in the Town’s name as of June 30, 2019:
Total Bank Balances 21,771,112$
Bank Balances Covered by Deposit Insurance
Federal Deposit Insurance Corporation (FDIC)1,334,050
Share Insurance Fund (SIF)2,685,222
Depositor's Insurance Fund (DIF)12,227,759
Total Bank Balances Covered by Deposit Insurance 16,247,031
Balances Subject to Custodial Credit Risk
Bank Balances Collaterallized with Securities Held
by the Pledging Financial Institution's Trust
Department or Agent but not in the Town's Name 5,524,081
Total Bank Balances Subject to Custodial Credit Risk 5,524,081
Total Bank Balances 21,771,112$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 39 -
Investments
Investments can also be made in securities issued by or unconditionally guaranteed by the U.S.
government or agencies that have a maturity of less than one year from the date of purchase, repurchase
agreement guaranteed by the U.S. government or agencies that have a maturity of less than one year from
the date of purchase, repurchase agreements guaranteed by such securities with maturity dates of no more
than 90 days from the date of purchase, and units in the Massachusetts Municipal Depository Trust
(MMDT). The Treasurer of the Commonwealth of Massachusetts oversees the financial management of
the MMDT, a local investment pool for cities, towns, and other state and local agencies within the
Commonwealth. The Town’s fair value of its investment in MMDT represents their value of the pool’s
shares. The Town’s Trust Funds have expanded investment powers including the ability to invest in
equity securities, corporate bonds, annuities and other specified investments.
The composition of the Town’s bank recorded deposits and investments fluctuates depending primarily
on the timing of property tax receipts, proceeds from borrowings, collections of state and federal aid, and
capital outlays throughout the year.
• Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. For short-term investments that were purchased using surplus revenues,
Massachusetts General Law Chapter 44, Section 55, limits the Town’s investments to the top
rating issued by at least one nationally recognized statistical rating organization (NRSROs).
Presented below are the rating as of year-end for each investment type of the Town.
Investment type Fair value
Minimum
Legal
Rating Unrated
State Retirees Benefits Trust Fund (SRBT) -
HCST OPEB Master Trust 1,961,324$ N/A 1,961,324$
Rating as of
Year End
• Custodial Credit Risk
For an investment, this is the risk that, in the event of a failure by the counterparty, the Town will
not be able to recover the value of its investments or collateral security that are in possession of
an outside party. The investment in the State Retirees Benefit Trust Fund is not exposed to
custodial credit risk because the investment is registered in the name of the Town. The Town
does not have an investment policy for custodial credit risk.
• Interest Rate Risk
Interest rate risk is the risk of changes in market interest rates which will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the risk of
its fair value to change with the market interest rate. The Town does not have a formal investment
policy that limits investment maturities as a means of managing its exposure to fair value losses
arising from increasing interest rates.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 40 -
Information about the sensitivity of the fair values of the Town’s investments to market interest
rate fluctuations are as follows:
Investment
maturities
(in years)
Investment type Fair value Less than 1
State Retirees Benefits Trust Fund (SRBT) -
HCST OPEB Master Trust 1,961,324$ 1,961,324$
• Concentration of Credit Risk
The Town places no limit on the amount the government may invest in any one issuer. More than
5% of the Town’s investments are in the following securities:
Issuer
Percentage of
Total
Investments
State Retirees Benefits Trust Fund (SRBT) -
HCST OPEB Master Trust 100.00%
Fair Market Value of Investments
The Town holds investments that are measured at fair value on a recurring basis. Because investing is not
a core part of the Town’s mission, the Town determines that the disclosures related to these investments
only need to be disaggregated by the major type. The Town chooses a tabular format for disclosing the
levels within the fair value hierarchy.
The Town categorizes its fair value measurement within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the assets. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs
are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 41 -
The Town has the following recurring fair value measurement as of June 30, 2019:
Investment Type June 30, 2019
Quoted Price in Active
Markets for Identical
Assets (Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3)
Investments measured at fair value -$ -$ -$ -$
Investments measured at the net asset value (NAV)
State Retirees Benefits Trust - (SRBT)1,961,324
Investments measured at amortized cost
Massachusetts Municipal Depository Trust - (MMDT)2,871,917
Total Investments 4,833,241$
Fair Value Measurements Using
State Retirees Benefits Trust (SRBT) investments are valued using the net assets value method. This
investment pool was established by the Treasurer of the Commonwealth of Massachusetts, who serves as
Trustee. SRBT is administered by the Pension Reserves Investment Management Board (PRIM). The fair
values of the positions in each investment Pool are the same as the value of each Pool’s shares. The Town
does not have the ability to control any of the investment decisions relative to its funds in SRBT.
Massachusetts Municipal Depository Trust (MMDT) investments are valued at amortizated cost. Under
the amortized cost method an investment is valued initially at its cost and adjusted for the amount of
interest income accrued each day over the term of the investment to account for any difference between
the initial cost and the amount payable at its maturity. If amortized cost is determined not to approximate
fair value, the value of the portfolio securities will be determined under procedures established by the
Advisor.
NOTE 4 – RECEIVABLES
The receivables at June 30, 2019 for the Town’s individual major and nonmajor governmental funds, in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Allowance
Gross for Net
Receivables:Amount Uncollectibles Amount
Real estate and personal property taxes 356,904$ (2,400)$ 354,504$
Tax liens 494,560 - 494,560
Motor vehicle and other excise taxes 167,050 (76,371) 90,679
Departmental and other 285,982 (43,874) 242,108
Intergovernmental 350,437 - 350,437
Special assessments 536,940 - 536,940
Total 2,191,873$ (122,645)$ 2,069,228$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 42 -
The receivables at June 30, 2019, for the water enterprise fund consists of the following:
Governmental funds report deferred inflows of resources in connection with receivables for revenues that
are not considered to be available to liquidate liabilities of the current period. Governmental funds also
defer revenue recognition in connection with revenues that have been received, but not yet earned. At the
end of the current fiscal year, various components of deferred inflows of resources reported in the
governmental funds are as follows:
Allowance
Gross for Net
Receivables:Amount Uncollectibles Amount
Water
User fees 933,284$ -$ 933,284$
Special Assessments 3,594 - 3,594
Total 936,878$ -$ 936,878$
Nonmajor
General Community Governmental
Deferred Inflows:Fund Preservation Funds Total
Deferred Property Taxes 185,209$ 19,775$ 501,908$ 706,892$
Deferred Other Revenue 585,239 - 257,365 842,604
Total 770,448$ 19,775$ 759,273$ 1,549,496$
Deferred Inflows of Resources Analysis
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 43 -
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2019, was as follows:
Beginning Decrease/Ending
Governmental Activities:Balance Increases Adjustments Balance
Capital assets not being depreciated:
Land 39,401,942$ 2,053,725$ -$ 41,455,667$
Construction in progress 15,436,156 251,390 (12,005,365) 3,682,181
Total capital assets not being depreciated 54,838,098 2,305,115 (12,005,365) 45,137,848
Capital assets being depreciated:
Building and improvements 28,737,460 847,403 12,005,365 41,590,228
Capital improvement (other than buildings)5,769,745 77,940 - 5,847,685
Machinery, equipment, and vehicles 13,044,739 557,752 - 13,602,491
Infrastructure 13,045,108 517,646 - 13,562,754
Total capital assets being depreciated 60,597,052 2,000,741 12,005,365 74,603,158
Less accumulated depreciation for:
Building and improvements (13,756,685) (817,491) - (14,574,176)
Capital improvement (other than buildings)(1,908,829) (386,836) - (2,295,665)
Machinery, equipment, and vehicles (8,595,245) (784,354) - (9,379,599)
Infrastructure (5,638,581) (295,596) - (5,934,177)
Total accumulated depreciation (29,899,340) (2,284,277) - (32,183,617)
Total capital assets being depreciated, net 30,697,712 (283,536) 12,005,365 42,419,541
Total governmental activities capital assets, net 85,535,810$ 2,021,579$ -$ 87,557,389$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 44 -
Depreciation expense was charged to functions/programs of the primary government as follows:
General government 155,895$
Public safety 899,484
Education 514,864
Public works 449,365
Human services 26,255
Culture and recreation 238,414
Total depreciation expense - governmental activities 2,284,277$
Water 412,285$
Golf 430,484
Total depreciation expense - business-type activities 842,769$
Governmental Activities:
Business-Type Activities:
Beginning Decreases/Ending
Business-Type Activities:Balance Increases Adjustments Balance
Capital assets not being depreciated:
Land 3,559,212$ -$ -$ 3,559,212$
Construction in progress 475,762 - - 475,762
Total capital assets not being depreciated 4,034,974 - - 4,034,974
Capital assets being depreciated:
Buildings and improvements 5,707,991 - - 5,707,991
Machinery, equipment, and vehicles 3,346,361 128,997 - 3,475,358
Infrastructure 25,642,878 304,998 - 25,947,876
Total capital assets being depreciated 34,697,230 433,995 - 35,131,225
Less accumulated depreciation for:
Buildings and improvements (1,535,353) (69,645) - (1,604,998)
Machinery, equipment, and vehicles (2,322,340) (172,149) - (2,494,489)
Infrastructure (11,880,295) (600,975) - (12,481,270)
Total accumulated depreciation (15,737,988) (842,769) - (16,580,757)
Total capital assets being depreciated, net 18,959,242 (408,774) - 18,550,468
Total business-type activites capital assets, net 22,994,216$ (408,774)$ -$ 22,585,442$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 45 -
NOTE 6 – CAPITAL LEASES
The Town has entered into lease agreements as lessee for financing the acquisition of a Volvo front end
loader, a MVP rescue pumper, an Ambulance and specialty vehicles. The lease agreements qualify as
capital leases for accounting purposes and, therefore, have been recorded at the present value of the future
minimum lease payments as of the inception date.
The assets acquired through the capital leases are as follows:
The future minimum lease obligations and the net present value of the minimum lease payments as of
June 30, 2019, are as follows:
Governmental
Activities
Assets:
Vehicles 1,187,000$
Machinery & Equipment 152,756
Less: Accumulated depreciation (217,689)
1,122,067$
Govermental
Year Ending June 30 Activities
2020 219,804$
2021 169,584
2022 136,988
2023 71,085
2024 71,085
2025 71,085
2026 71,085
2027 71,084
Total minimum lease payments 881,800
Less: amounts representing interest (73,755)
Present value of minimum lease payments 808,045$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 46 -
NOTE 7 – INTERFUND TRANSFERS
Interfund transfers for the fiscal year ended June 30, 2019, are summarized as follows:
(1) Represents budgeted transfers from the various funds to the general fund.
(2) Represents budgeted transfers from the general fund to various funds
(3) Represents other transfers
NOTE 8 – SHORT-TERM FINANCING
Under state law, and with the appropriate authorization, the Town is authorized to borrow funds on a
temporary basis as follows:
• To fund current operations prior to the collection of revenues by issuing revenue anticipation notes
(RANS).
• To fund grants prior to reimbursement by issuing grant anticipation notes (GANS).
• To fund Capital project costs incurred prior to selling permanent debt by issuing bond anticipation
notes (BANS).
• To fund current project costs and other approved expenditures incurred, that are anticipated to be
reimbursed by the Commonwealth through the issuance of State Aid anticipation notes (SAANS).
Short-term loans are general obligations of the Town and maturity dates are governed by statute. Interest
expenditures and expenses for short-term borrowings are accounted for in the general fund, and enterprise
funds respectively.
Community Nonmajor
General Preservation Golf Governmental
Operating Transfers Out:Fund Fund Fund Funds Total
Nonmajor Governmental Funds 621,292$ -$ -$ -$ 621,292$ (1)
Golf Enterprise Fund 206 - - - 206 (1)
General Fund - - - 443,824 443,824 (2)
Community Preservation Fund - - - 100,000 100,000 (3)
Nonmajor Governmental Funds 190,118 75,000 9,981 - 275,099 (3)
Water Enterprise Fund 237,378 - - - 237,378 (3)
Total 1,048,994$ 75,000$ 9,981$ 543,824$ 1,677,799$
Operating Transfers In:
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 47 -
The following is a summary of changes in short-term debt for the year ended June 30, 2019:
NOTE 9 – LONG-TERM DEBT
The Town is subject to a dual-level, general debt limit: the normal debt limit and the double debt limit.
Such limits are equal to 5% and 10%, respectively, of the valuation of taxable property in the Town as
last equalized by the Commonwealth’s Department of Revenue. Debt may be authorized up to the normal
debt limit without state approval. Authorizations under the double debt limit however require the approval
of the Commonwealth’s Emergency Finance Board. Additionally, there are many categories of general
long-term debt which are exempt from the debt limit but are subject to other limitations.
Type Purpose
Rate
(%)
Due
Date
Balance at
June 30, 2018
Renewed/
Issued
Retired/
Redeemed
Balance at
June 30, 2019
Governmental Funds
BAN Various Projects 2.13 4/3/2020 -$ 1,852,269$ -$ 1,852,269$
BAN Road Betterments 2.30 4/3/2020 - 129,636 - 129,636
Total Governmental Funds - 1,981,905 - 1,981,905
Business - Type Activities
BAN Golf Course Improvements 1.30 11/16/2018 80,000$ -$ (80,000)$ -$
BAN Golf Course Improvements 2.60 11/15/2019 - 40,000 - 40,000
Total Business Type Activities 80,000 40,000 (80,000) 40,000
Total:80,000$ 2,021,905$ (80,000)$ 2,021,905$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 48 -
The following is a summary of the changes in long-term debt for the year ended June 30, 2019:
Bonds and Notes Payable Schedule -Governmental Funds
Project
Interest
Rate (%)
Outstanding at
June 30, 2018 Issued
Redeemed/
Refunded
Outstanding at
June 30, 2019
MWPAT Title V Septic Var 31,000$ -$ 10,400$ 20,600$
Police Station 3.89 330,000 - 165,000 165,000
MWPAT Title V Septic 3.59 60,000 - 10,000 50,000
Land Acquisition 3.64 180,000 - 60,000 120,000
Land Acquisition 4.49 325,000 - 50,000 275,000
Land Acquisition 4.49 720,000 - 80,000 640,000
Land Acquisition 3.84 430,000 - 35,000 395,000
Road Betterments 3.84 60,000 - 20,000 40,000
Road Betterments 3.84 15,000 - 5,000 10,000
Road Betterments 3.00 30,000 - 5,000 25,000
Road Betterments 3.00 40,000 - 10,000 30,000
Road Betterments 2.5 - 4.0 80,000 - 10,000 70,000
Road Betterments 2.5 - 4.0 100,000 - 10,000 90,000
School Renovations 2.5 - 4.0 2,610,000 - 145,000 2,465,000
Road Betterments 2.5 - 4.0 1,730,000 - 135,000 1,595,000
Fire Station 2.25 -5.00 6,175,000 - 325,000 5,850,000
Road Repairs 2.25 -5.00 2,090,000 - 160,000 1,930,000
Library Parking Lot 2.25 -5.00 270,000 - 25,000 245,000
Road Betterments 2.25 -5.00 205,000 - 20,000 185,000
Road Betterments 2.25 -5.00 65,000 - 5,000 60,000
Road Betterments 2.92 105,000 - 10,000 95,000
Fire Building 2.92 6,005,000 - 305,000 5,700,000
Town Septage 2.92 630,000 - 65,000 565,000
Total Bonds and Notes Payable 22,286,000 - 1,665,400 20,620,600
Add: Unamortized Bond Premium 745,653 - 87,382 658,271
Total 23,031,653$ -$ 1,752,782$ 21,278,871$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 49 -
The annual debt service requirements for principal and interest for Governmental bonds and notes
outstanding at June 30, 2019 are as follows:
Bonds and Notes Payable Schedule -Water and Golf Enterprise Funds
Fiscal Year Principal Interest Total
2020 1,660,400$ 698,309$ 2,358,709$
2021 1,475,200 635,498 2,110,698
2022 1,380,000 572,230 1,952,230
2023 1,375,000 507,405 1,882,405
2024 1,365,000 450,405 1,815,405
2025-2029 6,265,000 1,493,970 7,758,970
2030-2034 4,635,000 717,674 5,352,674
2035-2038 2,465,000 165,750 2,630,750
Total 20,620,600$ 5,241,241$ 25,861,841$
Project
Interest
Rate (%)
Outstanding at
June 30, 2018 Issued
Redeemed/
Refunded
Outstanding at
June 30, 2019
Golf Course 3.92 1,505,000$ -$ 735,000$ 770,000$
Water Mains 3.89 290,000 - 145,000 145,000
Water Betterments - Slough Rd 3.64 280,000 - 35,000 245,000
Water Betterments - Fiddler's Ln 4.49 20,000 - 5,000 15,000
Land Acquisition 3 - 3.50 520,000 - 35,000 485,000
Water Offices/Garage 3.96 1,225,000 - 125,000 1,100,000
Well #6 3 - 3.50 2,135,000 - 135,000 2,000,000
Well Access Road 2.5 - 4.0 210,000 - 30,000 180,000
Water 2.5 - 4.0 750,000 - 45,000 705,000
Total 6,935,000$ -$ 1,290,000$ 5,645,000$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 50 -
The annual debt service requirements for principal and interest for water and golf enterprise funds bonds
and notes outstanding at June 30, 2019 are as follows:
Loans Authorized and Unissued
As of June 30, 2019, the Town has loans authorized and unissued as follows:
Fiscal Year Principal Interest Total
2020 1,325,000$ 195,720$ 1,520,720$
2021 405,000 144,400 549,400
2022 405,000 129,880 534,880
2023 400,000 115,355 515,355
2024 395,000 101,020 496,020
2025-2029 1,635,000 308,495 1,943,495
2030-2034 1,000,000 105,400 1,105,400
2035-2036 80,000 3,000 83,000
Total 5,645,000$ 1,103,270$ 6,748,270$
Date
Description Authorized Amount
Golf Course Improvement 11/18/2013 40,000$
Road Repair & Resurfacing 5/5/2014 5,750,000
Fire Station 11/16/2015 548,504
DPW Dump Truck 5/7/2018 235,000
DPW Building Roof 5/7/2018 250,000
Private Road Betterement North Pond 5/7/2018 150,912
Land Acquisition - WH Besse 5/7/2018 155,100
Tri Town Septic Demo 12/3/2018 33,131
Fuel Depot 5/6/2019 550,000
Golf Equipment 5/6/2019 180,000
7,892,647$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 51 -
Changes in Long-term Liabilities
The following is a summary of changes in long-term liabilities for the year ended June 30, 2019:
The governmental activities long-term liabilities are generally liquidated by the general fund.
Beginning Ending Current
Governmental Activities:Balance Additions Reductions Balance Portion
Bonds and notes payable 22,286,000$ -$ (1,665,400)$ 20,620,600$ 1,660,400$
Add: Unamortized Premiums 745,653 - (87,382) 658,271 83,150
Total Bond Payable 23,031,653 - (1,752,782) 21,278,871 1,743,550
Landfill postclosure care costs 324,000 - (89,500) 234,500 43,988
Capital Leases 1,100,294 - (292,249) 808,045 199,488
Postemployment benefits 17,834,132 - (4,289,763) 13,544,369 -
Net pension liability 21,018,942 3,643,427 - 24,662,369 -
Total governmental activities
long-term liabilities 63,309,021$ 3,643,427$ (6,424,294)$ 60,528,154$ 1,987,026$
Beginning Ending Current
Business-Type Activities:Balance Additions Reductions Balance Portion
Postemployment benefits 2,506,826$ -$ (602,983)$ 1,903,843$ -$
Net Pension Liability 4,036,419 699,673 - 4,736,092 -
Capital Lease 50,904 - (50,904) - -
Bonds and notes payable 6,935,000 - (1,290,000) 5,645,000 1,325,000
Total business-type activities
long-term liabilities 13,529,149$ 699,673$ (1,943,887)$ 12,284,935$ 1,325,000$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 52 -
Overlapping Debt
The Town pays assessments under formulas which include debt service payments to other governmental
agencies providing services to the Town, (commonly referred to as overlapping debt). The following
summary sets forth the long-term debt of such governmental agencies and the estimated share being
financed by the Town as of June 30, 2019:
Total Long-Town's Town's
Term Debt Estimated Indirect
Agency Outstanding Share Debt
Nauset Regional School District 2,975,000$ 46.42% 1,380,995$
Cape Cod Regional Technical High School 101,048,363 6.30% 6,366,047
Barntsable County 23,061,312 4.57% 1,053,902
127,084,675 8,800,944
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 53 -
NOTE 10 – GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The Town has classified its governmental fund balances with the following hierarchy.
Nonmajor
General Community Governmental
Fund Preservation Funds Total
Fund Balances
Nonspendable:
Permanent Fund Principal -$ -$ 150,388$ 150,388$
Restricted For:
General Government - - 732,287 732,287
Public Safety - - 2,391,409 2,391,409
Education - - 297,270 297,270
Public Works - - 1,293,822 1,293,822
Human Services - - 207,543 207,543
Culture & Recreration - - 259,020 259,020
Employee Benefits - - 120,156 120,156
Bond Premium 243,871 - - 243,871
Community Preservation - 2,844,276 - 2,844,276
Expendable Trust Funds - - 137,317 137,317
243,871 2,844,276 5,438,824 8,526,971
Committed To:
Continuing Appropriations
General Government 742,475 - - 742,475
Public Safety 249,405 - - 249,405
Education 63,529 - - 63,529
Public Works 272,486 - - 272,486
Human Services 24,107 - - 24,107
Culture & Recreation 106,118 - - 106,118
Employee Benefits 45,000 - - 45,000
1,503,120 - - 1,503,120
Assigned To:
Encumbered For:
General Government 33,167 - - 33,167
Public Safety 8,548 - - 8,548
Education 29,736 - - 29,736
Public Works 15,431 - - 15,431
Human Services 800 - - 800
Subsequent Years Expenditures 1,155,167 - - 1,155,167
1,242,849 - - 1,242,849
Unassigned
General Fund 3,697,484 - - 3,697,484
General Stabilization Fund 2,493,329 - - 2,493,329
Nonmajor Governmental Funds - - (8,798) (8,798)
Nonmajor Capital Projects
Human Services - - (222,873) (222,873)
6,190,813 - (231,671) 5,959,142
Total Governmental Fund Balances 9,180,653$ 2,844,276$ 5,357,541$ 17,382,470$
`
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 54 -
NOTE 11 – STABILIZATION FUND
The Town has established one fund where the Town has set aside amounts for emergency and capital
needs. This fund consists of the following:
The Stabilization fund is used to account for any appropriation, as approved by a 2/3 vote at the
annual or special town meeting for additions or reductions to the fund. Any interest shall be
added to and become part of the fund. The Stabilization fund balance is $2,493,329 as of June 30,
2019. The fund was established under chapter 40, sub-section 5B of the Massachusetts General
Law.
NOTE 12 – RISK FINANCING
The Town is exposed to various risks of loss related to torts; theft of, damage to or destruction of assets;
errors and omissions; injuries to employees; employee’s health and life; and natural disasters.
Buildings are fully insured against fire, theft, and natural disaster to the extent that losses exceed $1,000
per incident. The fully insurable value of Town buildings and contents is $91,921,012.
The Town is insured for general liability; however, Chapter 258 of the Massachusetts General Laws limits
the Town’s liability to a maximum of $100,000 per claim in all matters except in actions relating to
federal civil rights, eminent domain and breach of contract. Such claims are charged to the general fund.
There were no such claims in 2019.
The Town is a member of the Cape Cod Municipal Health Group, (CCMHG) which is a Massachusetts
Municipal Joint Health Insurance purchase group. The Group includes thirteen Towns, six school
districts, five fire districts, six water districts, one recreation authority, one education collaborative,
Veterans Services of Cape Cod, Barnstable County, Orleans/Brewster/Eastham Groundwater Protection
District, Cape Light Compact, and Cape Cod Regional Transit Authority as participants. In addition, the
Group entered into a Joint Negotiation Purchase of Health Coverage with the Dukes County Municipal
Health Group which now consists of Dukes County Commissioners; the Towns of Chilmark, Edgartown,
Gosnold, Oak Bluffs, Tisbury, West Tisbury, and Aquinnah; Martha’s Vineyard Refuse Disposal and
Resource Recovery District; Martha’s Vineyard Commission; Martha’s Vineyard Land Bank
Commission; Oak Bluffs Water District; Martha’s Vineyard Regional School District; Up-Island
Regional School District; Martha’s Vineyard Charter School; and Martha’s Vineyard Transit Authority.
Health benefits plans for active employees and non-Medicare eligible retirees consist of a traditional
medical indemnity plan, two Preferred Provider Organization (PPO) plans and two Exclusive Provider
Organization (EPO) plans. All active employee plans are self-funded with Blue Cross and Blue Shield of
Massachusetts (BCBSMA) and Harvard Pilgrim Health Care (HPHC) as third party administrators. The
Group offers six health plans for Medicare eligible retirees, which include two self-funded Medicare
Supplement Medical plans with fully insured Medicare Prescription Drug Plans (PDP’s), one of which is
administered by BCBSMA and one by HPHC, one fully insured Medicare Supplement plan with a PDP
provided by Tufts Health Plan, one HMO Medicare wrap plan fully insured by BCBSMA, and two fully
insured Medicare Advantage HMO plans, one of which is from BCBSMA and one from Tufts Health
Plan.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 55 -
The Group has adopted a contributory dental insurance plan (self-funded) and a voluntary dental plan,
which was premium based through June 30, 2007 and changed to a self funded basis effective July 1,
2007. These plans are administered by Delta Dental Plan of Massachusetts for a monthly administrative
fee, based on the number of subscribers. Dental plans are optional for employees. Effective July 1, 2009
the group adopted a voluntary fully insured vision plan from EyeMed Vision Care. The vision plan is
optional for employers, but employers may not offer both contributory and voluntary plans.
The Master Health Plus, Blue Care Elect Preferred PPO plan, Network Blue EPO plan, and Medex 2 plan
are on a claims-paid basis, and are administered by Blue Cross Blue Shield of Massachusetts for a
monthly administration fee based on the number of individual, single parent/single child, and family plan
subscribers for that particular month. Medex 2 is combined with a fully insured PDP provided by Blue
Cross Blue Shield and called Blue Medicare RX.
The Harvard Pilgrim EPO Plan, Harvard Pilgrim PPO plan, and Harvard Pilgrim Health Care Medicare
Enhance plan (Medical Portion) are on a claims-paid basis, and are administered by Harvard Pilgrim
Health Care for a monthly administration fee based on the number of individual and family plan
subscribers for that particular month. Medicare Enhance is combined with a fully insured PDP from
Aetna Medicare RX Plan.
On July 1, 2014 the Group joined with two other Massachusetts municipal joint purchase groups to create
the first Massachusetts Municipal Reinsurance Arrangement (MMRA). The policy year is July 1 through
June 30. Risk is pooled and all participants share the same rates for coverage of claims exceeding
$300,000 up to $800,000. There is no Aggregating Specific Deductible. If claims experience is below
projections, participants are dividend eligible on a collective and proportional basis. Participating
governmental entities have agreed to participate for a minimum of three years. In addition, the group has
a specific excess medical and prescription drug claims reinsurance contract with an insurance carrier
covering claims paid in excess of $800,000 per individual. The policy period covers claims incurred
within 12 months and paid within 24 months.
The Group does not reinsure its Medex and HPHC Medicare Enhance Medical plans.
The Group’s Board may deal with certified surpluses and deficits through the rate setting process and this
is the preferred method. Alternatively, the Group may deal with certified surpluses and deficits by making
direct distributions to members in the case of a certified surplus or may require direct payments from
members in the case of a certified deficit.
The Group provides health care coverage for employees that qualify for and select health care coverage as
an employee benefit as well as retired employees. There are 196 Town of Brewster employees and 160
retirees/surviving spouses who participate in the Group’s health care programs. The Town contributes
75% of the premium cost for employees, and 50% of the premium costs for retirees and surviving
spouses.
As of June 30, 2019 the Cape Cod Municipal Health Group had total assets of $57,399,989 total liabilities
of $16,565,732 (including $13,956,161 in estimated benefits obligations), and a total surplus of
$40,834,257.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 56 -
NOTE 13 - POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
The GASB Standards for Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions, requires the following disclosures in the financial statements related to the retiree medical,
dental, and life insurance benefits:
Plan Description. The Town of Brewster other postemployment benefits plan “the plan” is a single-
employer defined benefit healthcare plan administered by the Town of Brewster. The Plan provides
medical, dental and life insurance benefits to eligible retirees and their spouses through a single-employer
defined Other Postemployment Benefit (OPEB) plan. Chapter 32B of the MGL assigns authority to
establish and amend benefit provisions of the plan. Benefit provisions are negotiated between the Town
and the unions representing Town Employees and are renegotiated each bargaining period. The Retiree
Health Plan does not issue a publicly available financial report. Additionally, retired teachers and their
spouses receive health insurance through the Group Insurance Commission of the Commonwealth of
Massachusetts (GIC). Each Participating Municipality is assessed for the governmental share of health
and life insurance premiums paid on-behalf of its teacher retirees by the State. The State pays 85-90% of
the total premium; the retiree’s co-payment is 10-15% of the total premium as well as full payment for
catastrophic illness coverage.
Funding Policy. The contribution requirements of plan members and the Town are established and may
be amended by local by-law. The required contribution is based on pay-as-you-go financing requirements.
The Town contributes 50% of the cost of current-year premiums for eligible retired plan members and
their spouses. For Fiscal Year 2019, total Town premiums plus implicit costs for the retiree medical
program was $554,673. The Town also made a contribution to an OPEB Trust for $100,000 for a total
contribution during the measurement period of $654,673 to be reported on the financial statements for the
fiscal year ending June 30, 2019.
The Commonwealth of Massachusetts passed special legislation that has allowed the Town to establish a
postemployment benefit trust fund and to enable the Town to begin pre-funding its other postemployment
benefits (OPEB) liabilities. During 2019, the Town prefunded future OPEB liabilities totaling $100,000
by contributing funds to the other postemployment benefit fund in excess of the pay as you go required
contribution. These funds are reported with the Fiduciary funds financial statements. As of June 30, 2019,
the balance of this fund totaled $1,961,324.
GASB Statement #75 – OPEB Employer Financial Reporting
Summary of Significant Accounting Policies – For purposes of measuring the net OPEB liability,
deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expenses,
information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s
fiduciary net position have been determined on the same basis as they are reported by the Plan. For this
purpose, the Plan recognizes benefit payments when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
Measurement Date - GASB #75 requires the net OPEB liability to be measured as of the OPEBS’s plans
most recent fiscal year-end. Accordingly, the net OPEB liabilities as of June 30, 2018 were adjusted
forward using standard actuarial techniques to determine the total OPEB liability as of the June 30, 2019
measurement date.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 57 -
Plan Membership – The following table represents the Plan’s membership as June 30, 2018:
Active Members 181
Inactive members currently receiving benefits 168
Total 349
Components of OPEB Liability – The following table represents the components of the Plan’s OPEB
liability as of June 30, 2018:
Total OPEB Liability 17,202,756$
Less: OPEB plan's fiduciary net position (1,754,544)
Net OPEB Liability 15,448,212$
The OPEB plan's fiduciary net position as a
percentage of the total OPEB liability 10.20%
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 58 -
Significant Actuarial Methods and Assumptions – The plan’s total OPEB liability, actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the measurement,
unless otherwise specified, that was updated to June 30, 2018 to be in accordance with GASB Statement
#75.
Valuation Date:June 30, 2018
Actuarial Cost Method:Entry Age Normal
Asset-Valuation Method:Market value
Inflation:3.25%
Discount rate 7.25% as of June 30, 2018
Salary Increases:Service-related increases for group 1 (excluding teachers) and group 2
employees: 6.00% decreasing over 11 years to an
ultimate level of 4.00%. Service-related increases for group
4 employees: 7.00% decreasing over 8 years to an
ultimate level of 4.50%. Service related increases for
Teachers 7.5% decreasing over 20 years
to an ultimate level of 4.0%.
Healthcare trend rates:
Cape Cod Municipal Health Group
Nonmedicare: 0% for 1 year, then 7.0% decreasing by 0.25% each
year to an ultimate level of 4.5% per year
Medicare: 7.25% decreasing by 0.25% each
year to an ultimate level of 4.5% per year
Group Insurance Commision
Medical/Prescription Drug 8.00% decreasing by 0.5% for 5 years, then by 0.25% for 2 years
to an ultimates level of 5.0% per year.
EGWP 5.00%
Contributions Retiree contributions are expected to increase with respective trend
shown above.
Pre-Retirement Mortality:
Healthy non-teachers RP-2014 Blue Collar Employee Mortality Table projected
generationally with scale MP-2017
Healthy teachers RP-2014 White Collar Employee Mortality Table projected
generationally with scale MP-2016
Post-Retirement Mortality:
Healthy non-teachers RP-2014 Blue Collar Healthy Annuitant Table projected
generationally with scale MP-2017
Healthy teachers RP-2014 White Collar Healthy Annuitant Mortality table
projected generationally with Scale MP-2016.
Disabled non-teachers RP-2014 Blue Collar Healthy Annuitant Mortality Table set forward
one year projected generationally with scale MP-2017
Disabled teachers RP-2014 Healthy Annuitant Mortality Table set forward four years
and projected generationally with Scale BB2D from 2014
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 59 -
Investment Policy
The long-term expected rate of return on OPEB plan investments was determined using a building block
method in which the best estimate ranges of expected future rates of return (expected returns, net of
investment expense and inflation) are developed for each major asset class. These returns are combined to
produce the long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage and by adding expected inflation and subtracting expected investment
expenses and a risk margin. The target allocation as of June 30, 2018 and projected arithmetic real rates of
return for each major asset class, after deducting inflation, but before investment expenses, used in the
derivation of the long-term expected investment rate of return assumption are summarized in the
following table.
Long-Term
Target Expected Real
Allocation Rate of Return
Domestic equity 17.50%6.15%
International developed markets equity 15.50%7.11%
International emerging markets equity 6.00%9.41%
Core fixed income 12.00%1.68%
High- yield fixed income 10.00%4.13%
Real Estate 10.00%4.90%
Commodities 4.00%4.71%
Hedge fund, GTAA, Risk parity 13.00%3.94%
Private equity 12.00%10.28%
Total 100.00%
Asset Class
Discount Rate – The discount rate used to measure the total OPEB liability was 7.25% as of June 30,
2018.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 60 -
Changes in the Net OPEB Liability
Total OPEB Plan Fiduciary Net OPEB
Liablity Net Position Liability
(a)(b)(a) - (b)
Balance at June 30, 2017 21,915,046$ 1,574,088$ 20,340,958$
Charges for the year:
Service cost 1,032,989 - 1,032,989
Interest on Total OPEB Liability,
Service Cost, and Benefit Payments 857,050 - 857,050
Difference between expected and actual experience 844,215 - 844,215
Changes in assumptions (6,891,871) - (6,891,871)
Net Investment Income - 125,456 (125,456)
Employer Contributions - 609,673 (609,673)
Benefit payments (554,673) (554,673) -
Net Changes (4,712,290) 180,456 (4,892,746)
Balance at June 30, 2018 17,202,756$ 1,754,544$ 15,448,212$
Increase (Decrease)
Sensitivity of the net OPEB liability to changes in the discount rate – The following table presents the
Plan’s net OPEB liability, calculated using the discount rate of 7.25% as well as what the net OPEB
liability would be if it were calculated using a discount rate that is 1 percentage- point lower (6.25%) or 1
percentage-point higher (8.25%) than the current rate.
Current
1% Decrease Discount Rate 1% Increase
(6.25%)(7.25%)(8.25%)
Net OPEB liability 17,726,343$ 15,448,212$ 13,560,023$
Sensitivity of the net OPEB liability to changes in the healthcare trend rate – The following table presents
the net other postemployment benefit liability, as well as what the net OPEB liability would be if it were
calculated using a health care trend rate that is 1 percentage-point lower or 1 percentage-point higher.
Current
1% Decrease Trend 1% Increase
Net OPEB liability 13,364,938$ 15,448,212$ 18,008,655$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 61 -
At June 30, 2019 the Town reported deferred outflows of resources and deferred inflows of resources
related to other postemployment benefits of $803,512 and $7,653,688.
The balances of the deferred outflows and inflows as of June 30, 2019 consist of the following:
Deferred Deferred
Outflows Inflows
of Resources of Resources Total
Difference between expected and actual experience 803,512$ -$ 803,512$
Changes of assumptions - (7,584,513) (7,584,513)
Net difference between projected and actual earnings - (69,175) (69,175)
Total Deferred Outflows (Inflows) of Resources 803,512$ (7,653,688)$ (6,850,176)$
Deferred Category
The Town’s net deferred inflows of resources related to other postemployment benefits will be recognized
in future years other postemployment benefits are as follows:
Period Year ended June 30 Amount
2020 (1,298,635)$
2021 (1,398,635)
2022 (1,398,636)
2023 (1,378,069)
2024 (1,376,201)
Thereafter -
Deferred Inflows/Outflows Recognized in Future
Years (6,850,176)$
Changes of Assumption – The discount rate increased from 3.78% to 7.25% as of June 30, 2018.
Changes in Plan Provisions - None
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 62 -
NOTE 14 – PENSION PLANS
A. Plan Descriptions
The Town contributes to the Barnstable County Retirement Association (The Association), a multiple-
employer, cost sharing contributory defined benefit pension plan, under Massachusetts General Law
(MGL), Chapter 32, and is regulated by the Massachusetts Public Employee Retirement Administration
Commission (PERAC). Substantially all employees are members of the Association except for public
school teachers and certain school administrators.
The Association issues a publically available audited financial report that may be obtained by contacting
the association at 3195 Main Street Barnstable, MA 02630.
The Town is a member of the Massachusetts Teachers’ Retirement System (MTRS), a cost-sharing multi-
employer defined benefit plan. MTRS is managed by the Commonwealth of Massachusetts
(Commonwealth) on behalf of municipal teachers and municipal teacher retirees. The Commonwealth is a
nonemployer contributor and is responsible for 100% of the contributions and future benefit requirements
of the MTRS. The MTRS covers certified teachers in cities (except Boston), towns, regional school
districts, charter schools, educational collaboratives, and Quincy College. The MTRS is part of the
Commonwealth’s reporting entity and the audited financial report may be obtained by visiting
http://www.mass.gov/osc/publications-and-reports/financial-reports/. The MTRS report may also be
obtained by contacting MTRS at One Charles Park, Cambridge, Massachusetts 02142-1206.
Special Funding Situation
The Commonwealth is a nonemployer contributor and is required by statue to make 100% of all
actuarially determined employer contributions on behalf of the Town to the MTRS. Therefore, the Town
is considered to be in a special funding situation as defined by GASB Statement No.68, Accounting and
Financial Reporting for Pensions and the Commonwealth is a nonemployer contributor in MTRS. Since
the Town does not contribute directly to MTRS, there is no net pension liability to recognize. The total of
the Commonwealth provided contributions have been allocated based on each employer’s covered payroll
to the total covered payroll of employers in MTRS as of the measurement date of June 30, 2018. The
Town’s portion of the collective pension expense, contributed by the Commonwealth, of $1,276,599 is
reported in the general fund as intergovernmental revenue and pension expense in the current fiscal year.
The portion of the Commonwealth’s collective net pension liability associated with the Town is
$12,597,747 as of the measurement date.
The “Association” and the MTRS are contributory defined benefit plans and membership in both the
“Association” and the MTRS is mandatory upon commencement of employment for all permanent, full-
time employees.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 63 -
B. Benefits
The Association and MTRS provide retirement, disability and death benefits to plan members and
beneficiaries. Massachusetts Contributory Retirement System benefits are with certain exceptions,
uniform from system to system. The Association provides for retirement allowance benefits up to a
maximum of 80% of an employees highest three year average annual rate of regular compensation for
those hired prior to April 2, 2012. For persons who became employees on or after April 2, 2012, average
salary is the average annual rate of regular compensation received during the five consecutive years that
produce the highest average, or, if greater, during the last five years (whether or not consecutive)
preceding retirement. Benefit payments are based upon an employee’s age, length of creditable service,
level of compensation, and group classification. Employees become vested after ten years of creditable
service.
Employees who become permanently and totally disabled for further duty may be eligible to receive a
disability retirement allowance. The amount of benefits to be received in such cases is dependent on
several factors, including whether or not the disability is work related, the employee’s age, years of
creditable service, level of compensation, veterans’ status and group classification.
Employees who resign from service are entitled to request a refund of their accumulated total deductions.
Survivor benefits are extended to eligible beneficiaries of employees whose death occurs prior to or
following retirement.
Cost-of living adjustments granted between 1981 and 1997, and any increase in other benefits imposed by
the Commonwealth of Massachusetts’ state law during those years are borne by the Commonwealth and
are deposited in to the pension fund. Cost-of-living adjustments granted after 1997 must be approved by
the Association and all costs are borne by the Association.
C. Contributions
Barnstable County Retirement Association
Chapter 32 of MGL governs the contributions of plan members and member employees. Active plan
employees are required to contribute to the Association at rates ranging from 5 to 9% and of their gross
regular compensation. The percentage rate is keyed to the date upon which an employee’s membership
commences. Employees hired on or after January 1, 1979, contribute an additional 2.0% of annual regular
compensation in excess of $30,000. The member units are required to pay into the Association, a
legislatively mandated actuarial determined contribution that is apportioned among the employers based
on the covered payroll. The Town’s proportionate share of the required contribution for the year ended
June 30, 2019 which was $2,342,130 and 21.37% of covered payroll, actuarially determined as an amount
that when combined with plan member contributions, is expected to finance the costs of benefits earned
by plan members during the year, with an additional amount to finance any unfunded accrued liability.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 64 -
D. Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
Pension Liabilities
At June 30, 2019 the Town reported a liability of $29,398,461 for its proportionate share of the net
pension liability. The net pension liability was measured as of December 31, 2018 and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of January
1, 2018. Accordingly, updated procedures were used to roll forward the total pension liability to the
measurement date. The Town’s proportion of the net pension liability was based on a projection of the
Town’s long-term share of contributions to the pension plan relative to the projected contributions of all
participating members actuarially determined. At December 31, 2018, the Town’s proportion was 3.72%
which was a slight increase from the last measurement.
Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2019 the Town recognized pension expense of $3,782,470. At June 30, 2019
the Town reported deferred outflows and inflows of resources related to pensions of $5,304,859 and
$690,603 respectively.
The balances of deferred outflows and inflows as June 30, 2019 consist of the following:
Deferred Deferred
Outflows Inflows
of Resources of Resources Total
Difference between expected and actual experience -$ (276,673)$ (276,673)$
Changes of Assumption 2,461,197 - 2,461,197
Net difference between projected and actual investment
earnings on pension plan investments 1,716,866 - 1,716,866
Contributions and proportionate share of contributions 1,126,796 (413,930) 712,866
Total Deferred Outflows (Inflows) of Resources 5,304,859$ (690,603)$ 4,614,256$
Deferred Category
The Town’s net deferred outflows/inflows of resources related to pensions will be recognized in future
pension expense are as follows:
Period Year ended June 30 Amount
2020 1,354,703$
2021 896,815
2022 888,638
2023 1,431,029
2024 43,071
Deferred Inflows/Outflows Recognized in Future
Years 4,614,256$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 65 -
E. Actuarial assumptions
The total pension liability was determined by an actuarial valuation as of January 1, 2018, using the
following actuarial assumptions, applied to all periods included in the measurement date of December 31,
2018:
Valuation date……………………………… January 1, 2018
Actuarial cost method……………………… Entry Age Normal Cost Method.
Amortization method……………………… Appropriations increase at 5.28% per year
Remaining amortization period…………… 17 years from July1, 2018 for 2002 and 2003 Early
Retirement Incentives, retiree sheriffs liability and
remaining unfunded liability, and 4 years from July 1,
2018 for 2010 Early Retirement Incentive.
Asset valuation method…………………… The net pension liability is calculated using the market value
of assets. The Association also uses an actuarial value of
assets that gradually reflects year-to-year changes in the
market value of assets in determining contribution
requirements.
Inflation Rate………………………………. 3.25%
Projected salary increases………………… Varies by length of service with ultimate rates of 4.00% for
Group 1, 4.25% for Group 2 and 4.50% for Group 4.
Cost of living adjustments………………… 3.0% of the first $18,000 of retirement income
Rates of retirement………………………… Varies based upon age for general employees, police and fire
employees.
Rates of disability…………………………… For general employees, it was assumed that 55% of all
disabilities are accidental disability. For police and fire
employees, 90% of all disabilities are assumed to be
accidental disability.
Mortality Rates:
Pre-Retirement……………The RP-2014 Blue Collar Employee Mortality Table
projected generationally with Scale MP-2017
Healthy Retiree…………...The RP-2014 Blue Collar Healthy Annuitant Mortality Table
projected generationally with Scale MP-2017
Disabled Retiree………….The RP-2014 Blue Collar Healthy Annuitant Mortality Table
set forward one year and projected generationally with Scale
MP-2017.
Investment rate of return/Discount rate…… 7.375% net of pension plan investment expense, including
inflation.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 66 -
Investment policy
The Pension Plan’s policy in regard to the allocation of invested assets is established by PRIT. Plan assets
are managed on a total return basis with a long-term objective of achieving and maintaining a fully
funded status for the benefits provided through the pension plan.
F. Long-Term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which expected future real rates of return (expected returns, net of inflation) are
developed for each major asset class. These ranges are combined to produce the long-term expected rate
of return by weighting the future real rates of return by the target asset allocation percentage, adding
expected inflation and subtracting expected investment expenses and a risk margin. The target allocation
“approved by the board” and projected arithmetic real rates of return for each major asset class, after
deducting inflation, but before investment expenses used in the deviation of the long term expected
investment rate of return assumption are summarized in the following table:
Asset Class Target Allocation
Long-Term Expected
Real Rate of Return
Domestic equity 21.00%6.16%
International developed markets equity 13.00%6.69%
International emerging markets equity 5.00%9.47%
Core fixed income 15.00%1.89%
High-yield fixed income 8.00%4.00%
Real estate 10.00%4.58%
Commodities 4.00%4.77%
Hedge fund, GTAA, Risk parity 11.00%3.68%
Private equity 13.00%10.00%
Total 100.00%
For the year ended December 31, 2018 the annual money weighted rate of return on pension Plan
Investments, Net of Pension Plan Investment expense was -2.34%. The money weighted rate of return
expenses investment performance, net of the investment expense, adjusted for the changing amounts
actually invested.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
- 67 -
G. Discount Rate
The discount rate used to measure the total pension liability was 7.375%. The projection of cash flows
used to determine the discount rate assumed plan member contributions will be made at the current
contribution rate and that contributions will be made at rates equal to the actuarially determined
contribution rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to
be available to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
H. Sensitivity of the net pension liability to changes on the discount rate
The following presents the net pension liability, calculated using the discount rate of 7.375%, as well as
what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point
lower (6.375%) or 1 percentage point higher (8.375%) than the current rate:
1% Decrease
(6.375%)
Current Discount
Rate (7.375%)
1% Increase
(8.375%)
The Town's proportionate
share of the net pension
liability 37,527,904$ 29,398,461$ 22,560,219$
Detailed information about the pension plan’s fiduciary net pension is available in a separately issued
Barnstable County Retirement Association financial report.
NOTE 15 – COMMITMENTS AND CONTINGENCIES
The Town participates in a number of federal award programs. However the Town is not subject to the
provisions of the Single Audit Act Amendments of 1996, since the Town did not expend more than
$750,000 of federal awards during the period ended June 30, 2019. These programs may still be subject to
financial and compliance audits. Accordingly, the amount of expenditures which may be disallowed by
the granting agencies cannot be determined at this time, although it is believed the amount, if any, would
not be material.
The Town’s landfill was capped in 2000 by order of the Department of Environmental Protection (DEP).
The Town is responsible for post-closure monitoring of the site for twelve years (12 years remaining), and
the estimated liability has been recorded in the Statement of Net Position, Governmental Activities. The
$234,500 reported as landfill post-closure liability at June 30, 2019 is based on what it would cost to
perform all post-closure care at June 30, 2019. Actual costs may be higher due to inflation, changes in
technology or changes in regulations.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2019
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Various legal actions and claims are pending. Litigation is subject to many uncertainties, and the outcome
of individual litigated matters is not always predictable. Although the amount of liability, if any, at June
30, 2019, cannot be ascertained, management believes any resulting liability should not materially affect
the financial position at June 30, 2019.
NOTE 16 – IMPLEMENTATION OF NEW GASB PRONOUNCMENTS
During fiscal year 2019, the following GASB pronouncements were implemented:
The GASB issued Statement #83, Certain Asset Retirement Obligations, was implemented in 2019.
Management’s current assessment is that this pronouncement will not have a significant impact on the
Basic Financial Statements.
The GASB issued Statement #88, Certain Disclosures Related to Debt Including Direct Borrowings and
Direct Placements, was implemented in 2019. Management’s current assessment is that this
pronouncement will not have a significant impact on the Basic Financial Statements.
Future GASB Pronouncements:
The GASB issued Statement #84, Fiduciary Activities, which is required to be implemented in 2020.
Management’s current assessment is that this pronouncement will not have a significant impact on the
Basic Financial Statements.
The GASB issued Statement #87, Leases, which is required to be implemented in 2021. Management’s
current assessment is that this pronouncement will not have a significant impact on the Basic Financial
Statements.
The GASB issued Statement #89, Accounting for Interest Cost Incurred before the End of a
Construction Period, which is required to be implemented in 2021. Management’s current assessment is
that this pronouncement will not have a significant impact on the Basic Financial Statements.
The GASB issued Statement #90, Majority Equity Interests – an Amendment of GASB Statements No.14
and No.61, which is required to be implemented in 2020. Management’s current assessment is that this
pronouncement will not have a significant impact on the Basic Financial Statements.
The GASB issued Statement #91, Conduit Debt Obligations – which is required to be implemented for
reporting periods beginning after December 15, 2020. Earlier application is encouraged. The primary
objectives of this statement is to provide a single method of reporting conduit debt obligations by issuers
and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements
associated with conduit debt obligations, and (3) related note disclosures.
TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
BARNSTABLE COUNTY RETIREMENT ASSOCIATION
JUNE 30, 2019
Schedule of the Town’s Proportionate Share of the Net Pension Liability
December 31, 2018 December 31, 2017 December 31, 2016 December 31, 2015 December 31, 2014
Town's proportion of the net pension liability 3.72%3.68%3.47%3.60%3.62%
Town's proportionate share of the net pension liability 29,398,461$ 25,055,361$ 24,381,943$ 22,672,955$ 20,436,149$
Town's covered-employee payroll 10,957,745$ 10,398,846$ 9,735,188$ 9,902,884$ 9,494,687$
Town's proportionate share of the net pension liability as a
percentage of it's covered-employee payroll 268.29%240.94%250.45%228.95%215.24%
Plan fiduciary net position as a percentage of the total
pension liability 57.63%61.86%57.28%58.10%60.43%
Note: This schedule is intended to present information for 10 years. Until a 10 year trend is compiled, information is presented for those years for
which the information is available.
See notes to Required Supplementary Information
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
BARNSTABLE COUNTY RETIREMENT ASSOCIATION
JUNE 30, 2019
December 31 ,2018 December 31 ,2017 December 31 ,2016 December 31 ,2015 December 31 ,2014
Actuarily determined contribution 2,342,130$ 2,197,453$ 1,967,090$ 1,946,029$ 1,885,218$
Contribution in relation to the actuarilly
determined contribution (2,342,130) (2,197,453) (1,967,090) (1,946,029) (1,885,218)
Contribution deficency (excess)-$ -$ -$ -$ -$
Town's covered-employee payroll 10,957,745$ 10,398,846$ 9,735,188$ 9,902,884$ 9,494,687$
Contribution as a percentage of covered -
employee payroll 21.37%21.13%20.21%19.65%19.86%
SCHEDULE OF TOWNS CONTRIBUTION
Note: This Town schedule is intended to present information for 10 years. Until a 10 year trend is compiled, information is presented for those
years for which the information is available.
See notes to Required Supplementary Information
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
MASSACHUSETTS TEACHERS RETIREMENT SYSTEM
JUNE 30, 2019
Schedule of the Commonwealth’s Collective amounts of the Net Pension Liability
The Commonwealth of Massachusetts is a nonemployer contributor and is required by statue to make all
actuarially determined employer contributions on behalf of the member employers which creates a special
funding situation. Since the Town does not contribute directly to MTRS, there is no net pension liability
to recognize. This schedule discloses the Commonwealth’s 100% share of the collective net pension
liability that is associated with the Town; the portion of the collective pension expense as both revenue
and pension expense recognized by the Town; and the Plan’s fiduciary net position as a percentage of
total liability.
Commonwealth's Town's Expense
100% Share of the and Revenue Plan Fiduciary Net
Net Pension Recognized for the Position as a
Liability Associated Commonwealth's Percentage of the
with the Town Support Total Pension Liability
2019 12,597,747$ 1,276,599$ 54.84%
2018 12,722,094 1,327,842 54.25%
2017 13,320,299 1,358,758 52.73%
2016 12,323,157 999,518 55.38%
2015 9,511,918 660,839 61.64%
Fiscal Year
Note: This schedule is intended to present information for 10 years. Until a 10-year trend is compiled,
information is presented for those years for which information is available.
See notes to required supplementary information.
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2019
Schedule of the Town’s Net OPEB Liability and Related Ratios
June 30, 2018 June 30, 2017
Total OPEB Liability
Service Cost 1,032,989$ 1,200,462$
Interest 857,050 686,109
Differences between expected and actual experience 844,215 -
Changes of assumptions (6,891,871) (2,577,803)
Benefit Payments (554,673) (530,788)
Net Change in total OPEB liability (4,712,290) (1,222,020)
Total OPEB liability-beginning 21,915,046 23,137,066
Total OPEB liability-ending (a)17,202,756 21,915,046
Plan fiduciary net position
Contributions-employer 609,673 605,788
Net investment income 125,456 199,756
Benefit payments (554,673) (530,788)
Net change in plan fiduciary net position 180,456 274,756
Plan fiduciary net position - beginning 1,574,088 1,299,332
Plan fiduciary net position - ending (b)1,754,544 1,574,088
Town's net OPEB liability-ending (a)-(b)15,448,212$ 20,340,958$
Plan fiduciary net position as a percentage of
total OPEB liability 10.20%7.18%
Covered-employee payroll N/A 15,756,605
Plan's net OPEB liability as a percentage of
covered-employee payroll N/A 129.09%
Note: This schedule is intended to present information for 10 years. Until a 10-year trend is
compiled, information is presented for those years for which information is available
See notes to required supplementary information.
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2019
June 30, 2018 June 30, 2017
Acuarially determined contribution 1,143,921$ 1,105,238$
Contributions in relation to the actuarially
determined contribution (609,673) (605,788)
Contribution deficiency (excess)534,248$ 499,450$
Covered-employee payroll N/A 15,756,605$
Contributions as a percentage of covered-
employee payroll N/A 3.84%
Schedule of the Town's Contribution
Note: This schedule is intended to present information for 10 years. Until a 10-year trend is
compiled, information is presented for those years for which information is available.
See notes to required supplementary information.
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2019
June 30, 2018 June 30, 2017
Annual money-weighted rate of return,
net of investment expense N/A 5.44%
Schedule of Investment Return
Note: This schedule is intended to present information for 10 years. Until a 10-year trend is
compiled, information is presented for those years for which information is available.
See notes to required supplementary information.
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TOWN OF BREWSTER
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2019
Pension Plan Schedules
A. Schedule of the Town’s Proportionate Share of the Net Pension Liability
The Schedule of Town’s Proportionate Share of the Net Pension Liability details the allocated percentage
of the net pension liability; the proportionate share of the net pension liability, and the covered employee
payroll. It also demonstrates the net position as a percentage of the pension liability and the net pension
liability as a percentage of covered payroll.
B. Schedule of Town’s Contribution
Governmental employees are required to pay an annual appropriation as established by PERAC. The
appropriation includes the amounts to pay the pension portion of each member’s retirement allowance, an
amount to amortize the actuarially determined unfunded liability to zero in accordance with the System’s
funding schedule, and additional appropriations in accordance with adopted early retirement incentive
programs. The appropriations are payable on July 1, and January 1. The Town may choose to pay the
entire appropriation in July at a discounted rate. Accordingly, actual contributions may be less than the
“total appropriation”. The pension fund appropriation is allocated to the Town based on covered payroll.
C. Schedule of the Commonwealth’s Collective amounts of the Net Pension Liability
The Commonwealth of Massachusetts is a nonemployer contributor and is required by statute to make all
actuarially determined employer contributions on behalf of the member employers which creates a special
funding situation. Since the Town does not contribute directly to MTRS, there is no net pension liability
to recognize. This schedule discloses the Commonwealth’s 100% share of the collective net pension
liability that is associated with the Town; the portion of the collective pension expense as both a revenue
and pension expense recognized by the Town; and the Plan’s fiduciary net position as a percentage of the
total pension liability.
D. Changes in Plan Provisions – None
Other Postemployment Benefits Schedules
A. Schedule of the Town’s Net OPEB Liability and Related Ratios
The Schedule of the Town’s Net OPEB Liability and Related Ratios presents multi-year trend information
on changes in the plan’s total OPEB liability, changes in the plan’s net position, and ending net OPEB
liability. It also demonstrates the plan’s net position as a percentage of the total liability and the plan’s net
OPEB liability as a percentage of covered-employee payroll.
B. Schedule of the Town’s Contribution
The Schedule of the Town’s contributions includes the Town’s annual required contribution to the plan,
along with the contribution made in relation to the actuarially determined contribution. The Town is not
required to fully fund this contribution.
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TOWN OF BREWSTER
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2019
C. Schedule of Investment Return
The Schedule of Investment Return includes the money-weighted investment return on the Plan’s other
postemployment assets, net of investment expense.
D. Changes in Provisions - None
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