HomeMy Public PortalAbout05.05.21 FinCom Packet
Town of Brewster Finance Committee
2198 Main St., Brewster, MA 02631
fincommeeting@brewster-ma.gov
(508) 896-3701
MEETING AGENDA
Remote Participation Only
May 5, 2021 at 6:00 PM
This meeting will be conducted by remote participation pursuant to Gov. Baker’s March 2020 orders suspending certain Open
Meeting Law provisions and imposing limits on public gatherings. No in-person meeting attendance will be permitted. If the Town is
unable to live broadcast this meeting, a record of the proceedings will be provided on the Town website as soon as possible.
The meeting may be viewed by: Live broadcast (Brewster Government TV Channel 18), Livestream (livestream.brewster-
ma.gov), or Video recording (tv.brewster-ma.gov).
Meetings may be joined by:
1. Phone: Call (929) 436-2866 or (301) 715-8592. Webinar ID: 814 5568 0821 Passcode: 546055
To request to speak: Press *9 and wait to be recognized.
2. Zoom Webinar: https://us02web.zoom.us/j/81455680821?pwd=SUtNOCtYUHgxdkIyUFVJYzVNQjZXdz09
Passcode: 546055
To request to speak: Tap Zoom “Raise Hand” button or type “Chat” comment with your name and address, then
wait to be recognized.
Finance
Committee
Harvey (Pete) Dahl
Chair
Frank Bridges
Vice Chair
William Meehan
Clerk
Andrew Evans
Alex Hopper
Honey Pivirotto
Robert Tobias
Robert Young
Town
Administrator
Peter Lombardi
Finance Director
Mimi Bernardo
1. Call to Order
2. Declaration of a Quorum
3. Meeting Participation Statement
4. Recording Statement
5. Public Announcements and Comment: Members of the public may address the Finance Committee on
matters not on the meeting’s agenda for a maximum 3-5 minutes at the Chair’s discretion. Under the Open Meeting
Law, the Finance Committee is unable to reply but may add items presented to a future agenda.
6. Town Administrator/Finance Director Report
7. Policies and Procedures Update (Standing Item)
8. Discussion and Vote on remaining Town Meeting Warrant Articles
9. FY 2020 Audit – Audit Committee Presentation, Discussion and vote
10. Liaison Reports
11. Review and Approval of Minutes
12. Request for agenda items for future meetings.
13. Matters Not Reasonably Anticipated by the Chair
14. Next Finance Committee Meeting – 05/12/21
15. Adjournment
Date Posted: Date Revised: Received by Town Clerk:
5/3/21
DRAFT
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
DRAFT
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
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 – 70
Required Supplementary Information:
Barnstable County Retirement Association Schedules:
Schedule of Town’s Proportionate Share of the Net Pension Liability
71
Schedule of Town’s Contribution 72
DRAFT
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
TABLE OF CONTENTS
PAGE
Massachusetts Teachers Retirement System Schedule:
Schedule of the Commonwealth’s Collective amounts of the Net Pension
Liability
73
Other Postemployment Benefit Plan Schedules:
Schedule of the Town’s Net OPEB Liability and Related Ratios
74
Schedule of the Town’s Contribution 75
Schedule of Investment Return 76
Notes to Required Supplementary Information
77 - 78
DRAFT
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, 2020, 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.
DRAFT
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, 2020, 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 Postemployment 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, 71 – 72, 73, 74 – 76 and 77 - 78 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.
Certified Public Accountant
March 31, 2021
DRAFT
- 3 -
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, 2020.
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 $62.0 million (net position).
• The unrestricted negative net position of the Town’s governmental activities are -$32.9 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 $5.4 million from fiscal 2019. Within this total, net position
of governmental activities increased by $4.8 million from fiscal 2019. Also, net position of business-type
activities increased by $0.6 million from 2019.
• At June 30, 2020, the Town’s governmental funds had combined ending fund balances of $18.9 million. The
combined governmental funds balance increased by $1.5 million, a 8.6% increase over the prior year’s ending
fund balances.
• The Town’s general fund reported a fund balance of $10.8 million at the end of fiscal 2020. The unassigned
fund balance for the general fund was $7.7 million or 17.62% of total general fund expenditures. A total of
$0.15 million of the assigned fund balance was designated for funding the fiscal year 2021 budget.
• The total cost of all Town services for fiscal 2020 was $50.45 million, $45.0 million of which was for
governmental activities, and $5.45 million of which was for business-type activities.
DRAFT
- 4 -
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.
DRAFT
- 5 -
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 $62,009,915 at the close of fiscal year 2020. 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 $86,292,761, or
139.16% 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 $11,810,300 (19.05% of total) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of unrestricted net position is
($36,093,146) or -58.21% of total.
The Town decreased its total liabilities by $4,653,629 as compared to fiscal 2019, and total net position increased
by $4.5 million or 7.79%. Net position of governmental activities increased by $3,708,756, a 8.49% increase
from fiscal 2019. Net position of business-type activities increased by $772,774 or 5.58% from 2019. There was
a increase of $6,793 in net position reported in connection with the water business-type activity, and an increase
of $655,990 in net position in connection with the golf department business-type activity, respectively.
DRAFT
- 6 -
Increase Increase Increase
FY 2020 FY 2019 (Decrease)FY 2020 FY 2019 (Decrease)FY 2020 FY 2019 (Decrease)
Assets:
Current assets 23,821,424$ 22,982,623$ 838,801$ 3,567,883$ 3,888,008$ (320,125)$ 27,389,307$ 26,870,631$ 518,676$
Noncurrent assets (excluding capital)382,481 455,842 (73,361) 6,120 14,039 (7,919) 388,601 469,881 (81,280)
Capital assets 88,131,471 87,557,389 574,082 22,041,682 22,585,442 (543,760) 110,173,153 110,142,831 30,322
Total assets 112,335,376 110,995,854 1,339,522 25,615,685 26,487,489 (871,804) 137,951,061 137,483,343 467,718
Deferred Outflow of Resources:3,864,142 5,154,733 (1,290,591) 711,137 953,638 (242,501) 4,575,279 6,108,371 (1,533,092)
Liabilities:
Current liabilities (excluding debt)2,180,014 2,726,051 (546,037) 175,689 201,981 (26,292) 2,355,703 2,928,032 (572,329)
Noncurrent liabilities (excluding debt)38,193,385 38,397,250 (203,865) 6,260,119 6,639,935 (379,816) 44,453,504 45,037,185 (583,681)
Current debt 3,343,146 3,924,943 (581,797) 405,000 1,365,000 (960,000) 3,748,146 5,289,943 (1,541,797)
Noncurrent debt 18,593,056 20,143,878 (1,550,822) 3,915,000 4,320,000 (405,000) 22,508,056 24,463,878 (1,955,822)
Total liabilities 62,309,601 65,192,122 (2,882,521) 10,755,808 12,526,916 (1,771,108) 73,065,409 77,719,038 (4,653,629)
Deferred Inflows of Resources:6,512,488 7,289,792 (777,304) 938,528 1,054,499 (115,971) 7,451,016 8,344,291 (893,275)
Net Position:
Net investment in capital assets 68,419,755 65,574,910 2,844,845 17,873,006 17,069,399 803,607 86,292,761 82,644,309 3,648,452
Restricted 11,810,300 10,542,634 1,267,666 - - - 11,810,300 10,542,634 1,267,666
Unrestricted (32,852,626) (32,448,871) (403,755) (3,240,520) (3,209,687) (30,833) (36,093,146) (35,658,558) (434,588)
Total net position 47,377,429$ 43,668,673$ 3,708,756$ 14,632,486$ 13,859,712$ 772,774$ 62,009,915$ 57,528,385$ 4,481,530$
Revenues
Program Revenues:
Charges for services 2,947,017$ 3,553,923$ (606,906)$ 6,242,526$ 5,959,954$ 282,572$ 9,189,543$ 9,513,877$ (324,334)$
Operating grants and contributions 4,364,989 3,999,802 365,187 71,245 68,352 2,893 4,436,234 4,068,154 368,080
Capital grants and contributions 1,146,894 932,156 214,738 - - - 1,146,894 932,156 214,738
General Revenues:
Real Estate and personal property taxes 35,304,344 33,599,411 1,704,933 - - - 35,304,344 33,599,411 1,704,933
Tax Liens 46,612 101,634 (55,022) - - - 46,612 101,634 (55,022)
Motor vehicle and other excise taxes 1,617,176 1,632,250 (15,074) - - - 1,617,176 1,632,250 (15,074)
Hotel/Motel Tax and Meals Tax 1,699,075 1,367,058 332,017 - - - 1,699,075 1,367,058 332,017
Penalties and interest on taxes 62,505 100,376 (37,871) - - - 62,505 100,376 (37,871)
Payments in Lieu of Taxes 6,884 14,012 (7,128) - - - 6,884 14,012 (7,128)
Nonrestricted grants and contributions 2,180,275 2,229,761 (49,486) - - - 2,180,275 2,229,761 (49,486)
Unrestricted investment income 172,935 268,127 (95,192) - - - 172,935 268,127 (95,192)
Bond Premium - 1,001.00 (1,001) - - - - 1,001.00 (1,001)
Other revenues 28,012 11,990 16,022 - - - 28,012 11,990 16,022
Total Revenues 49,576,718 47,811,501 1,765,217 6,313,771 6,028,306 285,465 55,890,489 53,839,807 2,050,682
Expenses:
General Government 4,264,012 4,199,188 64,824 - - - 4,264,012 4,199,188 64,824
Public Safety 7,125,037 6,867,643 257,394 - - - 7,125,037 6,867,643 257,394
Education 21,011,343 20,247,626 763,717 - - - 21,011,343 20,247,626 763,717
Public Works 2,485,848 2,423,680 62,168 - - - 2,485,848 2,423,680 62,168
Human Services 950,022 1,351,050 (401,028) - - - 950,022 1,351,050 (401,028)
Culture and Recreation 1,253,516 1,171,735 81,781 - - - 1,253,516 1,171,735 81,781
Employee Benefits 6,639,159 7,856,178 (1,217,019) - - - 6,639,159 7,856,178 (1,217,019)
State and County Assessments 626,188 615,511 10,677 - - - 626,188 615,511 10,677
Interest 641,385 652,627 (11,242) - - - 641,385 652,627 (11,242)
Golf - - - 3,041,693 3,582,326 (540,633) 3,041,693 3,582,326 (540,633)
Water - - - 2,409,295 2,485,811 (76,516) 2,409,295 2,485,811 (76,516)
Total Expenses 44,996,510 45,385,238 (388,728) 5,450,988 6,068,137 (617,149) 50,447,498 51,453,375 (1,005,877)
Increase/(Decrease) in Net Position before contributions
to permanent endowments and transfers 4,580,208 2,426,263 2,153,945 862,783 (39,831) 902,614 5,442,991 2,386,432 3,056,559
Transfers 200,000 227,603 (27,603) (200,000) (227,603) 27,603 - - -
Change in Net Position 4,780,208 2,653,866 2,126,342 662,783 (267,434) 930,217 5,442,991 2,386,432 3,056,559
Prior Period Adjustment - OPEB (1,071,452) - (1,071,452) 109,991 - 109,991 (961,461) - (961,461)
Net Position - beginning 42,597,221 41,014,807 1,582,414 13,969,703 14,127,146 (157,443) 56,566,924 55,141,953 1,424,971
Net Position - ending 47,377,429$ 43,668,673$ 3,708,756$ 14,632,486$ 13,859,712$ 772,774$ 62,009,915$ 57,528,385$ 4,481,530$
Town of Brewster - Financial Highlights
Total
Governmental Business-type Primary
Activities Activities Government
DRAFT
- 7 -
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
$18,885,429 a $1,502,959 increase 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 $7,686,820, while total fund balance stood at $10,768,113. 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 17.6% of total general fund expenditures, while total fund
balance represents 24.7% of that same amount.
The stabilization fund has accumulated a fund balance of $2,535,242 which represents 5.81% 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 $1,097,500 (at Special Town Meeting), primarily for
increases to fund public works and general government; while decreases were approved for public safety. 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 $760,417 and $1,567,465 of
unexpended appropriation balances was closed out to unassigned fund balance.
DRAFT
- 8 -
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, 2020, amounts to $110,173,153 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 $574,082 during
the current fiscal year while the business-type activities capital assets (net of accumulated depreciation) decreased
by -$543,760. Total depreciation was $3.21 million, resulting in a total government-wide increase to capital
assets (net of accumulated depreciation) of $30,322.
Increase Increase
FY 2020 FY 2019 (Decrease)FY 2020 FY 2019 (Decrease)FY 2020 FY 2019
Land 42,192,861$ 41,455,667$ 737,194$ 3,559,212$ 3,559,212$ -$ 45,752,073$ 45,014,879$
Construction in Progress 3,709,131 3,682,181 26,950 581,224 475,762 105,462 4,290,355 4,157,943
45,901,992 45,137,848 764,144 4,140,436 4,034,974 105,462 50,042,428 49,172,822
Buildings and improvements 26,120,151 27,016,052 (895,901) 4,033,351 4,102,996 (69,645) 30,153,502 31,119,048
Improvements (other than buildings)3,594,726 3,552,020 42,706 - - - 3,594,726 3,552,020
Machinery, Equipment, and Vehicles 4,176,913 4,222,892 (45,979) 1,017,516 980,868 36,648 5,194,429 5,203,760
Infrastructure 8,337,689 7,628,577 709,112 12,850,379 13,466,604 (616,225) 21,188,068 21,095,181
42,229,479 42,419,541 (190,062) 17,901,246 18,550,468 (649,222) 60,130,725 60,970,009
Total Capital Assets 88,131,471$ 87,557,389$ 574,082$ 22,041,682$ 22,585,442$ (543,760)$ 110,173,153$ 110,142,831$
Activities Activities Government
Capital Assets
(Net of Depreciation)
Total
Governmental Business-type Primary
DRAFT
- 9 -
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, 2020 totaled $23,280,200. Within this total, business-type activities have debt of
$4,320,000 that is fully supported by their respective program revenues, and governmental activities debt is
$18,960,200. Total debt consists of the following:
Outstanding Outstanding
Governmental Activities June 30, 2020 June 30, 2019
Road Betterments - Prell Circle 20,000$ 25,000$
Road Betterments - Allen Drive 20,000 30,000
Ebeneezer Lane Road Bett 60,000 70,000
S. Pond DR/Captain Fitz Rd 80,000 90,000
School Renovations 2,320,000 2,465,000
Road Repairs 1,460,000 1,595,000
MWPAT Title V 40,000 50,000
Punkhorn Land Acquisition - 6/30/11 360,000 395,000
Heights Road Betterments - 6/30/11 20,000 40,000
Lane Road Betterments - 6/30/11 5,000 10,000
Police Station - 165,000
MWPAT #97-1156 Title V 10,200 20,600
Land Purchase 60,000 120,000
Land Purchase 785,000 915,000
Fire Station - 5/3/17 5,525,000 5,850,000
Road Repairs - 5/3/17 1,770,000 1,930,000
Library Parking Lot - 5/3/17 220,000 245,000
Tower Hill Circle - RD Bett - 5/3/17 165,000 185,000
Moss/Commons - RD Bett - 5/3/17 55,000 60,000
Public Way - 3/15/18 85,000 95,000
Fire Building - 3/15/18 5,400,000 5,700,000
TriTown Septage - 3/15/18 500,000 565,000
Total Governmental Activities 18,960,200$ 20,620,600$
Outstanding Outstanding
Business-type Activities June 30, 2020 June 30, 2019
Golf Course -$ 770,000$
Land Purchase - Copelas 450,000 485,000
Well Access Road 150,000 180,000
Water 660,000 705,000
WELL #6 & WATER MAIN - 1,865,000 2,000,000
Water offices/garage 975,000 1,100,000
Water Mains - 145,000
Slough Road 210,000 245,000
Water Betterments - Fiddler's Lane 10,000 15,000
Total Business-type Activities 4,320,000$ 5,645,000$
Grand Total - All long-term debt 23,280,200$ 26,265,600$
Outstanding Debt at Year End
Please refer to Notes 5 and 9 for further discussion of the major capital asset and debt activity.
DRAFT
- 10 -
Economic Factors and Next Year’s Budgets & Tax Rate
The Town’s leadership (elected and appointed officials) considered many factors when setting the fiscal 2021
budget and tax rates including the following:
• The Fiscal 2021 tax rate was set at $8.58, a $.04 cent decrease over Fiscal 2020. The excess levy capacity
was $42,827.
• The Selectboard voted during their classification hearing to maintain the same tax rate for all classes of
property.
• Fiscal 2020 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, $100,000 in Fiscal 2019, and $200,000 in Fiscal 2020. The June 30, 2020 balance in this fund is
$2,199,890.
• Approximately $725,835 of Chapter 90 Highway Funds was expended on local roadway repairs and
construction. Approximately $500,000 Chapter 90 Highway Funds will be expended in Fiscal 2021.
Request for Information
This financial report is designed to provide a general overview of the Town of Brewster’s finances for all those
with an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Finance Director, 2198 Main
Street, Brewster, MA 02631.
DRAFTGOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 22,034,970$ 2,614,378$ 24,649,348$
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 731,025 - 731,025
TAX LIENS 511,289 - 511,289
MOTOR VEHICLE EXCISE TAXES 193,825 - 193,825
USER FEES - 951,606 951,606
DEPARTMENTAL AND OTHER 223,668 - 223,668
INTERGOVERNMENTAL 57,847 - 57,847
SPECIAL ASSESSMENTS 68,800 1,899 70,699
NONCURRENT:
RECEIVABLES:
SPECIAL ASSESSMENTS 382,481 6,120 388,601
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 88,131,471 22,041,682 110,173,153
TOTAL ASSETS 112,335,376 25,615,685 137,951,061
DEFERRED OUTFLOWS OF RESOURCES
RELATED TO PENSIONS 3,417,968 656,377 4,074,345
RELATED TO POST EMPLOYMENT BENEFITS 446,174 54,760 500,934
TOTAL DEFERRED OUTFLOWS OF RESOURCES 3,864,142 711,137 4,575,279
LIABILITIES
CURRENT:
ACCOUNTS PAYABLE 1,993,780 160,122 2,153,902
OTHER LIABILITIES 156 - 156
ACCRUED INTEREST 147,264 15,567 162,831
LANDFILL POSTCLOSURE CARE COSTS 38,814 - 38,814
CAPITAL LEASES 204,446 - 204,446
BONDS AND NOTES PAYABLE 3,138,700 405,000 3,543,700
NONCURRENT:
LANDFILL POSTCLOSURE CARE COSTS 274,886 - 274,886
POSTEMPLOYMENT BENEFITS 14,741,552 1,809,283 16,550,835
NET PENSION LIABILITY 23,176,947 4,450,836 27,627,783
CAPITAL LEASES 610,328 - 610,328
BONDS AND NOTES PAYABLE 17,982,728 3,915,000 21,897,728
TOTAL LIABILITIES 62,309,601 10,755,808 73,065,409
DEFERRED INFLOWS OF RESOURCES
RELATED TO PENSIONS 2,008,951 385,793 2,394,744
RELATED TO POST EMPLOYMENT BENEFITS 4,503,537 552,735 5,056,272
TOTAL DEFERRED INFLOWS OF RESOURCES 6,512,488 938,528 7,451,016
NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 68,419,755 17,873,006 86,292,761
RESTRICTED FOR:
PERMANENT FUNDS:
EXPENDABLE 144,606 - 144,606
NONEXPENDABLE 150,388 - 150,388
OTHER PURPOSES 11,515,306 - 11,515,306
UNRESTRICTED (32,852,626) (3,240,520) (36,093,146)
TOTAL NET POSITION 47,377,429$ 14,632,486$ 62,009,915$
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2020
PRIMARY GOVERNMENT
See accompanying notes to the basic financial statements
- 11 -
DRAFTOPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND NET (EXPENSE)
FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT:
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT 4,264,012$ 455,390$ 912,179$ 400,000$ (2,496,443)$
PUBLIC SAFETY 7,125,037 1,320,213 177,969 - (5,626,855)
EDUCATION 21,011,343 164,437 1,364,783 - (19,482,123)
PUBLIC WORKS 2,485,848 553,855 24,761 746,894 (1,160,338)
HUMAN SERVICES 950,022 66,928 119,351 - (763,743)
CULTURE & RECREATION 1,253,516 386,194 87,635 - (779,687)
EMPLOYEE BENEFITS 6,639,159 - 1,678,311 - (4,960,848)
STATE & COUNTY ASSESSMENTS 626,188 - - - (626,188)
INTEREST 641,385 - - - (641,385)
TOTAL GOVERNMENTAL ACTIVITIES 44,996,510 2,947,017 4,364,989 1,146,894 (36,537,610)
BUSINESS-TYPE ACTIVITIES:
GOLF 3,041,693 3,697,683 - - 655,990
WATER 2,409,295 2,544,843 71,245 - 206,793
TOTAL BUSINESS-TYPE ACTIVITIES 5,450,988 6,242,526 71,245 - 862,783
TOTAL PRIMARY GOVERNMENT 50,447,498$ 9,189,543$ 4,436,234$ 1,146,894$ (35,674,827)$
(continued)
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2020
PROGRAM REVENUES
See accompanying notes to the basic financial statements
- 12 -
DRAFTGOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
CHANGES IN NET POSITION:
NET (EXPENSE) REVENUE FROM PREVIOUS PAGE (36,537,610)$ 862,783$ (35,674,827)$
GENERAL REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS PAYABLE 35,304,344 - 35,304,344
TAX LIENS 46,612 - 46,612
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,617,176 - 1,617,176
HOTEL/MOTEL & MEALS TAX 1,699,075 - 1,699,075
PENALTIES AND INTEREST ON TAXES 62,505 - 62,505
PAYMENTS IN LIEU OF TAXES 6,884 - 6,884
GRANTS AND CONTRIBUTIONS NOT RESTRICTED
TO SPECIFIC PROGRAMS 2,180,275 - 2,180,275
UNRESTRICTED INVESTMENT INCOME 172,935 - 172,935
MISCELLANEOUS 28,012 - 28,012
TRANSFERS, NET 200,000 (200,000) -
TOTAL GENERAL REVENUES AND TRANSFERS 41,317,818 (200,000) 41,117,818
CHANGE IN NET POSITION 4,780,208 662,783 5,442,991
NET POSITION:
BEGINNING OF YEAR 42,597,221 13,969,703 56,566,924
END OF YEAR 47,377,429$ 14,632,486$ 62,009,915$
(concluded)
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2020
PRIMARY GOVERNMENT
See accompanying notes to the basic financial statements
- 13 -
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2020
NONMAJOR TOTAL
COMMUNITY GOVERNMENTAL GOVERNMENTAL
ASSETS GENERAL PRESERVATION FUNDS FUNDS
CASH AND SHORT-TERM INVESTMENTS 12,300,939$ 3,770,388$ 5,963,643$ 22,034,970$
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 731,025 - - 731,025
TAX LIENS 511,289 - - 511,289
MOTOR VEHICLE EXCISE TAXES 193,825 - - 193,825
DEPARTMENTAL AND OTHER - 30,758 192,910 223,668
INTERGOVERNMENTAL - - 57,847 57,847
SPECIAL ASSESSMENTS - - 451,281 451,281
TOTAL ASSETS 13,737,078$ 3,801,146$ 6,665,681$ 24,203,905$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES:
ACCOUNTS PAYABLE 1,905,325$ 5,014$ 83,441$ 1,993,780$
OTHER LIABILITIES 156 - - 156
NOTES PAYABLE - 695,690 890,417 1,586,107
TOTAL LIABILITIES 1,905,481 700,704 973,858 3,580,043
DEFFERRED INFLOWS OF RESOURCES:
UNAVAILABLE REVENUE 1,063,484 30,758 644,191 1,738,433
FUND BALANCES:
NONSPENDABLE - - 150,388 150,388
RESTRICTED 208,061 3,069,684 5,901,375 9,179,120
COMMITTED 2,721,914 - - 2,721,914
ASSIGNED 151,318 - - 151,318
UNASSIGNED 7,686,820 - (1,004,131) 6,682,689
TOTAL FUND BALANCES 10,768,113 3,069,684 5,047,632 18,885,429
TOTAL LIABILITIES, DEFERRED INFLOW OF RESOURCES
AND FUND BALANCES 13,737,078$ 3,801,146$ 6,665,681$ 24,203,905$
See accompanying notes to the basic financial statements
- 14 -
DRAFTNONMAJOR TOTAL
COMMUNITY GOVERNMENTAL GOVERNMENTAL
GENERAL PRESERVATION FUNDS FUNDS
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 35,161,066$ -$ -$ 35,161,066$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,514,030 - - 1,514,030
INTERGOVERNMENTAL 3,536,325 692,896 1,296,877 5,526,098
PAYMENTS IN LIEU OF TAXES 6,884 - - 6,884
PENALTIES & INTEREST ON TAXES 62,505 - - 62,505
FINES & FORFEITS 41,215 - - 41,215
CHARGES FOR SERVICES 550,855 - 1,286,303 1,837,158
HOTEL/MOTEL & MEALS TAX 1,699,075 - - 1,699,075
INVESTMENT INCOME 172,717 59,245 6,516 238,478
CONTRIBUTIONS AND DONATIONS - - 64,495 64,495
DEPARTMENTAL AND OTHER 1,303,063 1,037,074 896,640 3,236,777
TOTAL REVENUES 44,047,735 1,789,215 3,550,831 49,387,781
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 3,305,526 1,292,647 337,802 4,935,975
PUBLIC SAFETY 6,446,463 - 298,791 6,745,254
EDUCATION 19,895,982 - 622,626 20,518,608
PUBLIC WORKS 2,017,986 - 1,579,562 3,597,548
HUMAN SERVICES 839,181 - 98,461 937,642
CULTURE & RECREATION 941,389 27,718 133,797 1,102,904
EMPLOYEE BENEFITS 7,463,295 - 22,268 7,485,563
STATE & COUNTY ASSESSMENTS 626,188 - - 626,188
DEBT SERVICE
PRINCIPAL 1,435,400 225,000 - 1,660,400
INTEREST 646,298 88,442 - 734,740
TOTAL EXPENDITURES 43,617,708 1,633,807 3,093,307 48,344,822
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 430,027 155,408 457,524 1,042,959
OTHER FINANCING SOURCES (USES)
PROCEEDS FROM CAPITAL LEASES 260,000 - - 260,000
OPERATING TRANSFERS IN 1,432,849 70,000 535,416 2,038,265
OPERATING TRANSFERS OUT (535,416) - (1,302,849) (1,838,265)
TOTAL OTHER FINANCING SOURCES (USES)1,157,433 70,000 (767,433) 460,000
NET CHANGE IN FUND BALANCES 1,587,460 225,408 (309,909) 1,502,959
FUND BALANCES AT BEGINNING OF YEAR 9,180,653 2,844,276 5,357,541 17,382,470
FUND BALANCES AT END OF YEAR 10,768,113$ 3,069,684$ 5,047,632$ 18,885,429$
TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2020
See accompanying notes to the basic financial statements
- 15 -
DRAFTTOTAL GOVERNMENTAL FUND BALANCES 18,885,429$
CAPITAL ASSETS (NET) USED IN GOVERNMENTAL ACTIVITIES ARE NOT FINANCIAL RESOURCES
AND, THEREFORE, ARE NOT REPORTED IN THE FUNDS 88,131,471
ACCOUNTS RECEIVABLE ARE NOT AVAILABLE TO PAY FOR CURRENT-PERIOD
EXPENDITURES AND, THEREFORE, ARE DEFERRED IN THE FUNDS 1,738,433
IN THE STATEMENT OF ACTIVITIES, INTEREST IS ACCRUED ON OUTSTANDING LONG-TERM DEBT,
WHEREAS IN GOVERNMENTAL FUNDS INTEREST IS NOT REPORTED UNTIL DUE (147,264)
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 (18,960,200)
CAPITAL LEASES (814,774)
NET PENSION LIABILITY (23,176,947)
DEFERRED OUTFLOWS OF RESOURCES - RELATED TO PENSION 3,417,968
DEFERRED INFLOWS OF RESOURCES - RELATED TO PENSION (2,008,951)
POSTEMPLOYMENT BENEFITS (14,741,552)
DEFERRED OUTFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS 446,174
DEFERRED INFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS (4,503,537)
UNAMORTIZED BOND PREMIUM (575,121)
LANDFILL POSTCLOSURE CARE COSTS (313,700)
NET EFFECT OF REPORTING LONG-TERM LIABILITIES (61,230,640)
NET POSITION OF GOVERNMENTAL ACTIVITIES 47,377,429$
TOWN OF BREWSTER, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION
JUNE 30, 2020
See accompanying notes to the basic financial statements
- 16 -
DRAFTNET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 1,502,959$
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 3,185,766
DEPRECIATION EXPENSE (2,351,684)
NET EFFECT OF REPORTING CAPITAL ASSETS 834,082
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 188,937
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.
PROCEEDS FROM CAPITAL LEASES (260,000)
DEBT SERVICE PRINCIPAL PAYMENTS 1,660,400
CAPITAL LEASE - PRINCIPAL PAYMENTS (6,729)
NET EFFECT OF REPORTING LONG-TEM DEBT 1,393,671
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 (214,799)
NET CHANGE IN DEFERRED OUTFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS (169,245)
NET CHANGE IN DEFERRED INFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS 2,206,908
NET CHANGE IN LANDFILL POSTCLOSURE CARE ACCRUAL (79,200)
NET CHANGE IN NET PENSION LIABILITY 1,485,422
NET CHANGE IN DEFERRED OUTFLOWS OF RESOURCES - RELATED TO PENSIONS (1,032,278)
NET CHANGE IN DEFERRED INFLOWS OF RESOURCES - RELATED TO PENSIONS (1,429,604)
NET CHANGE IN UNAMORTIZED BOND PREMIUM 83,150
NET CHANGE IN ACCRUED INTEREST ON LONG-TERM DEBT 10,205
NET EFFECT OF RECORDING LONG-TERM LIABILITIES 860,559
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 4,780,208$
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, 2020
See accompanying notes to the basic financial statements
- 17 -
DRAFTACTUAL
ORIGINAL FINAL BUDGETARY VARIANCE
BUDGET BUDGET AMOUNTS OVER(UNDER)
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 35,130,848$ 35,130,848$ 35,161,066$ 30,218$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,443,343 1,443,343 1,514,030 70,687
INTERGOVERNMENTAL 1,850,685 1,850,685 1,881,394 30,709
PAYMENTS IN LIEU OF TAXES 8,328 8,328 6,884 (1,444)
PENALTIES & INTEREST ON TAXES 152,889 152,889 62,505 (90,384)
FINES & FORFEITS 23,826 23,826 41,215 17,389
HOTEL/MOTEL & MEALS TAX 1,207,106 1,207,106 1,699,075 491,969
INVESTMENT INCOME 114,793 114,793 130,805 16,012
DEPARTMENTAL AND OTHER 1,658,657 1,658,657 1,853,918 195,261
TOTAL REVENUES 41,590,475 41,590,475 42,350,892 760,417
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 4,188,544 4,647,177 4,383,203 263,974
PUBLIC SAFETY 7,501,819 7,410,202 6,951,151 459,051
EDUCATION 19,993,744 19,993,744 19,943,431 50,313
PUBLIC WORKS 2,411,917 3,001,917 2,871,869 130,048
HUMAN SERVICES 821,396 875,251 849,413 25,838
CULTURE & RECREATION 1,024,694 1,024,694 966,061 58,633
EMPLOYEE BENEFITS 6,321,479 6,406,483 5,856,272 550,211
STATE & COUNTY ASSESSMENTS 624,563 626,188 626,188 -
DEBT SERVICE
PRINCIPAL 1,435,400 1,435,400 1,435,400 -
INTEREST 672,636 672,636 643,239 29,397
TOTAL EXPENDITURES 44,996,192 46,093,692 44,526,227 1,567,465
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (3,405,717) (4,503,217) (2,175,335) 2,327,882
OTHER FINANCING SOURCES (USES):
OPERATING TRANSFERS IN 1,247,036 1,267,536 1,432,849 165,313
OPERATING TRANSFERS OUT (535,416) (535,416) (535,416) -
TOTAL OTHER FINANCING SOURCES (USES)711,620 732,120 897,433 165,313
NET CHANGE IN FUND BALANCE (2,694,097) (3,771,097) (1,277,902) 2,493,195
BUDGETARY FUND BALANCE, BEGINNING OF YEAR 6,355,771 6,355,771 6,355,771 -
BUDGETARY FUND BALANCE, END OF YEAR 3,661,674$ 2,584,674$ 5,077,869$ 2,493,195$
TOWN OF BREWSTER, MASSACHUSETTS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2020
BUDGETED AMOUNTS
See accompanying notes to the basic financial statements
- 18 -
DRAFT
ASSETS GOLF WATER TOTAL
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 227,955$ 2,386,423$ 2,614,378$
USER FEES - 951,606 951,606
SPECIAL ASSESSMENTS - 1,899 1,899
TOTAL CURRENT ASSETS 227,955 3,339,928 3,567,883
NONCURRENT:
SPECIAL ASSESSMENTS - 6,120 6,120
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 7,812,228 14,229,454 22,041,682
TOTAL NONCURRENT ASSETS 7,812,228 14,235,574 22,047,802
TOTAL ASSETS 8,040,183 17,575,502 25,615,685
DEFERRED OUTFLOWS OF RESOURCES
RELATED TO PENSIONS 363,024 293,353 656,377
RELATED TO POST EMPLOYMENT BENEFITS 34,619 20,141 54,760
TOTAL DEFERRED OUTFLOWS OF RESOURCES 397,643 313,494 711,137
LIABILITIES
CURRENT:
ACCOUNTS PAYABLE 103,154 56,968 160,122
ACCRUED INTEREST - 15,567 15,567
BONDS AND NOTES PAYABLE - 405,000 405,000
TOTAL CURRENT LIABILITIES 103,154 477,535 580,689
NONCURRENT:
POSTEMPLOYMENT BENEFITS 1,143,813 665,470 1,809,283
NET PENSION LIABILITY 2,461,636 1,989,200 4,450,836
BONDS AND NOTES PAYABLE - 3,915,000 3,915,000
TOTAL NONCURRENT LIABILITIES 3,605,449 6,569,670 10,175,119
TOTAL LIABILITIES 3,708,603 7,047,205 10,755,808
DEFERRED INFLOWS OF RESOURCES
RELATED TO PENSIONS 213,371 172,422 385,793
RELATED TO POST EMPLOYMENT BENEFITS 349,434 203,301 552,735
TOTAL DEFERRED INFLOWS OF RESOURCES 562,805 375,723 938,528
NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 7,812,228 10,060,778 17,873,006
UNRESTRICTED (3,645,810) 405,290 (3,240,520)
TOTAL NET POSITION 4,166,418$ 10,466,068$ 14,632,486$
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2020
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 19 -
DRAFTGOLF WATER TOTAL
OPERATING REVENUES:
CHARGES FOR SERVICES 3,697,683$ 2,544,843$ 6,242,526$
DEPARTMENTAL AND OTHER - 71,245 71,245
TOTAL OPERATING REVENUES 3,697,683 2,616,088 6,313,771
OPERATING EXPENSES:
GENERAL SERVICES 2,594,075 1,814,257 4,408,332
DEPRECIATION 426,692 433,948 860,640
TOTAL OPERATING EXPENSES 3,020,767 2,248,205 5,268,972
OPERATING INCOME (LOSS)676,916 367,883 1,044,799
NON-OPERATING REVENUES (EXPENSES):
INTEREST EXPENSE (20,926) (161,090) (182,016)
INCOME (LOSS) BEFORE OPERATING TRANSFERS 655,990 206,793 862,783
OPERATING TRANSFERS:
OPERATING TRANSFERS OUT - (200,000) (200,000)
CHANGE IN NET POSITION 655,990 6,793 662,783
NET POSITION AT BEGINNING OF YEAR 3,510,428 10,459,275 13,969,703
NET POSITION AT END OF YEAR 4,166,418$ 10,466,068$ 14,632,486$
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2020
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 20 -
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2020
GOLF WATER TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES:
RECEIPTS FROM CUSTOMERS AND USERS 3,697,683$ 2,607,380$ 6,305,063$
PAYMENTS TO SUPPLIERS (1,431,274) (932,209) (2,363,483)
PAYMENTS TO EMPLOYEES (1,291,038) (908,657) (2,199,695)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 975,371 766,514 1,741,885
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING TRANSFERS OUT - (200,000) (200,000)
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 (770,000) (555,000) (1,325,000)
ACQUISITION AND CONSTRUCTION OF CAPITAL ASSETS (44,620) (272,260) (316,880)
INTEREST EXPENSE (31,837) (164,920) (196,757)
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (886,457) (992,180) (1,878,637)
NET INCREASE (DECREASE) IN CASH AND SHORT TERM INVESTMENTS 88,914 (425,666) (336,752)
CASH AND SHORT TERM INVESTMENTS - BEGINNING OF YEAR 139,041 2,812,089 2,951,130
CASH AND SHORT TERM INVESTMENTS- END OF YEAR 227,955$ 2,386,423$ 2,614,378$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
OPERATING INCOME (LOSS)676,916$ 367,883$ 1,044,799$
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 426,692 433,948 860,640
(INCREASE) DECREASE IN ACCOUNTS RECEIVABLE - (8,708) (8,708)
(INCREASE) DECREASE IN DEFERRED OUTFLOWS OF RESOURCES 131,635 99,934 231,569
INCREASE (DECREASE) IN ACCOUNTS PAYABLE (14,938) 3,386 (11,552)
INCREASE (DECREASE) IN DEFERRED INFLOWS OF RESOURCES (103,833) (12,137) (115,970)
INCREASE (DECREASE) IN NET PENSION LIABILITY (157,767) (127,489) (285,256)
INCREASE (DECREASE) IN POSTEMPLOYMENT BENEFITS 16,666 9,697 26,363
TOTAL ADJUSTMENTS 298,455 398,631 697,086
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 975,371$ 766,514$ 1,741,885$
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 21 -
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2020
POSTEMPLOYMENT PRIVATE
BENEFITS PURPOSE AGENCY
TRUST TRUST FUNDS FUNDS
ASSETS
CASH AND SHORT-TERM INVESTMENTS -$ 87,615$ 106,371$
INVESTMENTS 2,199,890 - -
TOTAL ASSETS 2,199,890 87,615 106,371
LIABILITIES
ACCOUNTS PAYABLE - - 24,965
OTHER LIABILITIES - - 81,406
TOTAL LIABILITIES - - 106,371
NET POSITION
NET POSITION - HELD IN TRUST FOR OPEB AND OTHER PURPOSES 2,199,890$ 87,615$ -$
See accompanying notes to the basic financial statements
- 22 -
DRAFTPOSTEMPLOYMENT PRIVATE
BENEFITS PURPOSE
TRUST TRUST FUNDS
ADDITIONS:
CONTRIBUTIONS:
CONTRIBUTIONS -$ 2,341$
EMPLOYER CONTRIBUTIONS 200,000 -
EMPLOYER CONTRIBUTIONS TO PAY FOR OPEB BENEFITS 791,361 -
NET INVESTMENT INCOME (LOSS):
INVESTMENT INCOME 38,566 956
TOTAL ADDITIONS 1,029,927 3,297
DEDUCTIONS:
BENEFIT PAYMENTS 791,361 -
EDUCATION - 6,115
TOTAL DEDUCTIONS 791,361 6,115
CHANGE IN NET POSITION 238,566 (2,818)
CHANGE IN NET POSITION 238,566 (2,818)
NET POSITION AT BEGINNING OF YEAR 1,961,324 90,433
NET POSITION AT END OF YEAR 2,199,890$ 87,615$
TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FISCAL YEAR ENDED JUNE 30, 2020
See accompanying notes to the basic financial statements
- 23 -
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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 $ 10,935,110
School District Orleans, MA 02653
Cape Cod Regional
Technical High
School
To provide vocational education 351 Pleasant Lake Ave
Harwich, MA 02645
$ 1,242,992
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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 6.55% 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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 postclosure 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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 fund 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:
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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, 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
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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.”
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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 2020 approved budget authorized
$43,493,072 in current year appropriations and other amounts to be raised and $1,503,120 in carryover
articles carried over from previous fiscal years. Supplemental appropriations of $1,097,500 were
approved at one Special Town Meeting for fiscal year 2020.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 37 -
The Finance Director has the responsibility to ensure that budgetary controls are maintained and
monitored through the accounting system.
B. Budgetary – GAAP Reconciliation
For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of
accounting (established by the Commonwealth) is followed, which differs from the GAAP basis of
accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the fiscal
year ended June 30, 2020 is presented below:
C. Deficit Fund Balances
Several individual fund deficits exist within the special revenue and the governmental capital projects
funds. These individual deficits will be eliminated through subsequent fiscal year budget transfers, grants,
and/or proceeds from long-term debt during fiscal year 2021.
NOTE 3 – DEPOSITS AND INVESTMENTS
State and local statutes place certain limitations on the nature of deposits and investments available to the
Town. Deposits (including demand deposits, term deposits and certificates of deposit) in any one financial
institution may not exceed certain levels unless collateralized by the financial institutions involved.
Deposits
Custodial Credit Risk - Deposits
Custodial credit risk is the risk that in the event of bank failure, the Town’s deposits may not be
returned. Massachusetts General Law Chapter 44, Section 55, limits the deposits “in a bank or
trust company, or banking company to an amount not exceeding sixty percent (60%) of the
capital and surplus of such bank or trust company or banking company, unless satisfactory
security is given to it by such bank or trust company or banking company for such excess.”
The Town does not have a formal deposit policy for custodial credit risk.
Net change in fund balance - budgetary basis (1,277,902)$
Basis of accounting differences:
Increase in revenue for on-behalf payments - MTRS 1,651,872
Increase in expenditures for on-behalf payments - MTRS (1,651,872)
Increase in revenue for the MWPAT subsidy 3,059
Increase in expenditures for the MWPAT subsidy (3,059)
Net Stabilization fund activity 41,912
Adjustment for current year articles 2,721,914
Adjustment for current year encumbrances 151,318
Adjustment for expenditures from prior year encumbrances (49,782)
Net change in fund balance - GAAP basis 1,587,460$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 38 -
The Town carries deposits that are fully insured by the Federal Deposit Insurance Corporation
(FDIC), 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, 2020:
Total Bank Balances 22,255,720$
Bank Balances Covered by Deposit Insurance
Federal Deposit Insurance Corporation (FDIC)1,598,350
Depositor's Insurance Fund (DIF)3,167,041
Total Bank Balances Covered by Deposit Insurance 4,765,391
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 17,490,329
Total Bank Balances Subject to Custodial Credit Risk 17,490,329
Total Bank Balances 22,255,720$
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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 39 -
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.
Minimum Rating as of
Legal Year End
Investment type Fair value Rating Unrated
State Retirees Benefits Trust Fund (SRBT) -
HCST OPEB Master Trust 2,199,890$ N/A 2,199,890$
• 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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 2,199,890$ 2,199,890$
• 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 41 -
The Town has the following recurring fair value measurement as of June 30, 2020:
Investment Type June 30, 2020
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)2,199,890
Investments measured at amortized cost
Massachusetts Municipal Depository Trust - (MMDT)2,920,193
Total Investments 5,120,083$
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, 2020 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 732,525$ (1,500)$ 731,025$
Tax liens 511,289 - 511,289
Motor vehicle and other excise taxes 279,727 (85,902) 193,825
Departmental and other 303,981 (80,313) 223,668
Intergovernmental 57,847 - 57,847
Special assessments 451,281 - 451,281
Total 2,336,650$ (167,715)$ 2,168,935$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 42 -
The receivables at June 30, 2020, 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 951,606$ -$ 951,606$
Special Assessments 8,019 - 8,019
Total 959,625$ -$ 959,625$
Nonmajor
General Community Governmental
Deferred Inflows:Fund Preservation Funds Total
Deferred Property Taxes 358,369$ 30,758$ 425,867$ 814,994$
Deferred Other Revenue 705,115 - 218,324 923,439
Total 1,063,484$ 30,758$ 644,191$ 1,738,433$
Deferred Inflows of Resources Analysis
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 43 -
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2020, was as follows:
Beginning Decrease/Ending
Governmental Activities:Balance Increases Adjustments Balance
Capital assets not being depreciated:
Land 41,455,667$ 737,194$ -$ 42,192,861$
Construction in progress 3,682,181 26,950 - 3,709,131
Total capital assets not being depreciated 45,137,848 764,144 - 45,901,992
Capital assets being depreciated:
Building and improvements 41,590,228 85,000 - 41,675,228
Capital improvement (other than buildings)5,847,685 440,599 - 6,288,284
Machinery, equipment, and vehicles 13,602,491 626,697 - 14,229,188
Infrastructure 13,562,754 1,009,326 - 14,572,080
Total capital assets being depreciated 74,603,158 2,161,622 - 76,764,780
Less accumulated depreciation for:
Building and improvements (14,574,176) (980,901) - (15,555,077)
Capital improvement (other than buildings)(2,295,665) (397,893) - (2,693,558)
Machinery, equipment, and vehicles (9,379,599) (672,676) - (10,052,275)
Infrastructure (5,934,177) (300,214) - (6,234,391)
Total accumulated depreciation (32,183,617) (2,351,684) - (34,535,301)
Total capital assets being depreciated, net 42,419,541 (190,062) - 42,229,479
Total governmental activities capital assets, net 87,557,389$ 574,082$ -$ 88,131,471$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 44 -
Depreciation expense was charged to functions/programs of the primary government as follows:
General government 132,303$
Public safety 986,025
Education 517,736
Public works 464,911
Human services 12,380
Culture and recreation 238,329
Total depreciation expense - governmental activities 2,351,684$
Water 433,948$
Golf 426,692
Total depreciation expense - business-type activities 860,640$
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 475,762 105,462 - 581,224
Total capital assets not being depreciated 4,034,974 105,462 - 4,140,436
Capital assets being depreciated:
Buildings and improvements 5,707,991 - - 5,707,991
Machinery, equipment, and vehicles 3,475,358 211,418 - 3,686,776
Infrastructure 25,947,876 - - 25,947,876
Total capital assets being depreciated 35,131,225 211,418 - 35,342,643
Less accumulated depreciation for:
Buildings and improvements (1,604,998) (69,645) - (1,674,643)
Machinery, equipment, and vehicles (2,494,489) (174,770) - (2,669,259)
Infrastructure (12,481,270) (616,225) - (13,097,495)
Total accumulated depreciation (16,580,757) (860,640) - (17,441,397)
Total capital assets being depreciated, net 18,550,468 (649,222) - 17,901,246
Total business-type activites capital assets, net 22,585,442$ (543,760)$ -$ 22,041,682$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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, 2020, are as follows:
Governmental
Activities
Assets:
Vehicles 1,205,000$
Machinery & Equipment 152,756
Less: Accumulated depreciation (223,965)
1,133,791$
Primary
Year Ending June 30 Government
2021 224,770$
2022 191,473
2023 125,570
2024 125,570
2025 71,085
2026 71,085
2027 71,085
Total minimum lease payments 880,638
Less: amounts representing interest (65,864)
Present value of minimum lease payments 814,774$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 46 -
NOTE 7 – INTERFUND TRANSFERS
Interfund transfers for the fiscal year ended June 30, 2020, 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 Governmental
Operating Transfers Out:Fund Fund Funds Total
Nonmajor Governmental Funds 1,267,536$ -$ -$ 1,267,536$ (1)
General Fund - - 535,416 535,416 (2)
Nonmajor Governmental Funds 35,313 - - 35,313 (3)
Water Enterprise Fund 130,000 70,000 - 200,000 (3)
Total 1,432,849$ 70,000$ 535,416$ 2,038,265$
Operating Transfers In:
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 47 -
The following is a summary of changes in short-term debt for the year ended June 30, 2020:
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, 2019
Renewed/
Issued
Retired/
Redeemed
Balance at
June 30, 2020
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) -
BAN Various Projects 0.75 4/2/2021 - 834,959 - 834,959
BAN Various Projects 0.75 4/2/2021 - 651,695 - 651,695
BAN Road Betterments 2.05 4/2/2021 - 99,453 - 99,453
Total Governmental Funds 1,981,905 1,586,107 (1,981,905) 1,586,107
Business - Type Activities
BAN Golf Course Improvements 2.60 11/15/2019 40,000$ -$ (40,000)$ -$
Total:2,021,905$ 1,586,107$ (2,021,905)$ 1,586,107$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 48 -
The following is a summary of the changes in long-term debt for the year ended June 30, 2020:
Bonds and Notes Payable Schedule -Governmental Funds
Project
Interest
Rate (%)
Outstanding at
June 30, 2019 Issued
Redeemed/
Refunded
Outstanding at
June 30, 2020
MWPAT Title V Septic Var 20,600$ -$ 10,400$ 10,200$
Police Station 3.89 165,000 - 165,000 -
MWPAT Title V Septic 3.59 50,000 - 10,000 40,000
Land Acquisition 3.64 120,000 - 60,000 60,000
Land Acquisition 4.49 275,000 - 50,000 225,000
Land Acquisition 4.49 640,000 - 80,000 560,000
Land Acquisition 3.84 395,000 - 35,000 360,000
Road Betterments 3.84 40,000 - 20,000 20,000
Road Betterments 3.84 10,000 - 5,000 5,000
Road Betterments 3.00 25,000 - 5,000 20,000
Road Betterments 3.00 30,000 - 10,000 20,000
Road Betterments 2.5 - 4.0 70,000 - 10,000 60,000
Road Betterments 2.5 - 4.0 90,000 - 10,000 80,000
School Renovations 2.5 - 4.0 2,465,000 - 145,000 2,320,000
Road Betterments 2.5 - 4.0 1,595,000 - 135,000 1,460,000
Fire Station 2.25 -5.00 5,850,000 - 325,000 5,525,000
Road Repairs 2.25 -5.00 1,930,000 - 160,000 1,770,000
Library Parking Lot 2.25 -5.00 245,000 - 25,000 220,000
Road Betterments 2.25 -5.00 185,000 - 20,000 165,000
Road Betterments 2.25 -5.00 60,000 - 5,000 55,000
Road Betterments 2.92 95,000 - 10,000 85,000
Fire Building 2.92 5,700,000 - 300,000 5,400,000
Town Septage 2.92 565,000 - 65,000 500,000
Total Bonds and Notes Payable 20,620,600 - 1,660,400 18,960,200
Add: Unamortized Bond Premium 658,271 - 83,150 575,121
Total 21,278,871$ -$ 1,743,550$ 19,535,321$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 49 -
The annual debt service requirements for principal and interest for Governmental bonds and notes
outstanding at June 30, 2020 are as follows:
Bonds and Notes Payable Schedule -Water and Golf Enterprise Funds
Fiscal Year Principal Interest Total
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 1,350,000 394,718 1,744,718
2026-2030 6,055,000 1,296,050 7,351,050
2031-2035 4,265,000 595,627 4,860,627
2036-2038 1,695,000 91,000 1,786,000
Total 18,960,200$ 4,542,933$ 23,503,133$
Project
Interest
Rate (%)
Outstanding at
June 30, 2019 Issued
Redeemed/
Refunded
Outstanding at
June 30, 2020
Golf Course 3.92 770,000$ -$ 770,000$ -$
Water Mains 3.89 145,000 - 145,000 -
Water Betterments - Slough Rd 3.64 245,000 - 35,000 210,000
Water Betterments - Fiddler's Ln 4.49 15,000 - 5,000 10,000
Land Acquisition 3 - 3.50 485,000 - 35,000 450,000
Water Offices/Garage 3.96 1,100,000 - 125,000 975,000
Well #6 3 - 3.50 2,000,000 - 135,000 1,865,000
Well Access Road 2.5 - 4.0 180,000 - 30,000 150,000
Water 2.5 - 4.0 705,000 - 45,000 660,000
Total 5,645,000$ -$ 1,325,000$ 4,320,000$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 50 -
The annual debt service requirements for principal and interest for water and golf enterprise funds bonds
and notes outstanding at June 30, 2020 are as follows:
Loans Authorized and Unissued
As of June 30, 2020, the Town has loans authorized and unissued as follows:
Fiscal Year Principal Interest Total
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 390,000 86,721 476,721
2026-2030 1,445,000 254,874 1,699,874
2031-2035 840,000 74,300 914,300
2036 40,000 1,000 41,000
Total 4,320,000$ 907,550$ 5,227,550$
Date
Description Authorized Amount
Road Repair & Resurfacing 5/5/2014 5,750,000$
Fire Station 11/16/2015 548,504
DPW Dump Truck 5/7/2018 33,305
DPW Building Roof 5/7/2018 250,000
Private Road Betterement North Pond 5/7/2018 21,276
Land Acquisition - WH Besse 5/7/2018 155,100
Tri Town Septic Demo 12/3/2018 33,131
Fuel Depot 5/6/2019 100,000
Golf Equipment 5/6/2019 180,000
7,071,316$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 51 -
Changes in Long-term Liabilities
The following is a summary of changes in long-term liabilities for the year ended June 30, 2020:
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 20,620,600$ -$ (1,660,400)$ 18,960,200$ 1,475,200$
Add: Unamortized Premiums 658,271 - (83,150) 575,121 77,393
Total Bond Payable 21,278,871 - (1,743,550) 19,535,321 1,552,593
Landfill postclosure care costs 234,500 79,200 - 313,700 38,814
Capital Leases 808,045 260,000 (253,271) 814,774 204,446
Postemployment benefits 14,526,753 214,799 - 14,741,552 -
Net pension liability 24,662,369 - (1,485,422) 23,176,947 -
Total governmental activities
long-term liabilities 61,510,538$ 553,999$ (3,482,243)$ 58,582,294$ 1,795,853$
Beginning Ending Current
Business-Type Activities:Balance Additions Reductions Balance Portion
Postemployment benefits 1,782,920$ 26,363$ 1,809,283$ -$
Net Pension Liability 4,736,092 - (285,256) 4,450,836 -
Bonds and notes payable 5,645,000 - (1,325,000) 4,320,000 405,000
Total business-type activities
long-term liabilities 12,164,012$ 26,363$ (1,610,256)$ 10,580,119$ 405,000$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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, 2020:
Total Long-Town's Town's
Term Debt Estimated Indirect
Agency Outstanding Share Debt
Nauset Regional School District 2,800,000$ 46.42% 1,299,760$
Cape Cod Regional Technical High School 66,050,000 6.55% 4,326,275$
Barntsable County 22,991,188 4.67% 1,073,002
91,841,188 6,699,037
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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 - - 1,306,323 1,306,323
Public Safety - - 2,400,700 2,400,700
Education - - 359,727 359,727
Public Works - - 1,163,617 1,163,617
Human Services - - 224,017 224,017
Culture & Recreration - - 204,497 204,497
Employee Benefits - - 97,888 97,888
Bond Premium 208,061 - - 208,061
Community Preservation - 3,069,684 - 3,069,684
Expendable Trust Funds - - 144,606 144,606
208,061 3,069,684 5,901,375 9,179,120
Committed To:
Continuing Appropriations
General Government 1,049,952 - - 1,049,952
Public Safety 748,654 - - 748,654
Education 24,643 - - 24,643
Public Works 862,027 - - 862,027
Human Services 10,147 - - 10,147
Culture & Recreation 24,672 - - 24,672
Employee Benefits 1,819 - - 1,819
2,721,914 - - 2,721,914
Assigned To:
Encumbered For:
General Government 36,325 - - 36,325
Public Safety 18,167 - - 18,167
Education 51,385 - - 51,385
Public Works 1,611 - - 1,611
Human Services 800 - - 800
Employee Benefits 43,030 - - 43,030
151,318 - - 151,318
Unassigned
General Fund 5,151,578 - - 5,151,578
General Stabilization Fund 2,535,242 - - 2,535,242
Nonmajor Governmental Funds - - (267,592) (267,592)
Nonmajor Capital Projects
Public Works - - (614,576) (614,576)
Human Services - - (121,963) (121,963)
7,686,820 - (1,004,131) 6,682,689
Total Governmental Fund Balances 10,768,113$ 3,069,684$ 5,047,632$ 18,885,429$
`
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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 $2,535,242 as of June 30,
2020. 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 $96,060,955.
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 2020.
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, Barnstable County Retirement Association, 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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 Medicare 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. 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 195 Town of Brewster employees and 173
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, 2020 the Cape Cod Municipal Health Group had total assets of $67,834,545 total liabilities
of $11,150,737 (including $9,766,578 in estimated benefits obligations), and a total surplus of
$56,683,808.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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, 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, and life insurance benefits to eligible retirees and their spouses. The Town Meeting vote is the
authority to establish and amend benefit provisions to the Town. The Town has accepted various sections
of Massachusetts General Laws Chapter 32B to provide 50%of the premium cost of retirees’ health and
life insurance costs.
Funding Policy. The contribution requirements of plan members and the Town are established and may
be amended by Town Meeting vote. The required contribution is based on projected pay-as-you-go
financing requirements. For Fiscal Year 2020, total Town premiums plus implicit costs for the retiree
medical program was $791,361. The Town also made a contribution to an OPEB Trust for $200,000 for a
total contribution during the measurement period of $991,361 to be reported on the financial statements
for the fiscal year ending June 30, 2020.
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 2020, the Town prefunded future OPEB liabilities totaling $200,000
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, 2020,
the balance of this fund totaled $2,199,890.
GASB Statement #75 – OPEB Employer Financial Reporting
Summary of Significant Accounting Policies – For purposes of measuring the net OPEB liability,
deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expenses,
information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s
fiduciary net position have been determined on the same basis as they are reported by the Plan. For this
purpose, the Plan recognizes benefit payments when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
Measurement Date - GASB #75 requires the net OPEB liability to be measured as of a date no earlier than
the end of the employer’s prior fiscal year and no later than the end of the employer’s current fiscal year,
consistently applied from period to period. Accordingly, the net OPEB liability was measured as of June
30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an
actuarial valuation as of June 30, 2018.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 57 -
Plan Membership – The following table represents the Plan’s membership as June 30, 2018:
Active Members 181
Inactive members or beneficiaries currently receiving benefits 168
Total 349
Components of OPEB Liability – The following table represents the components of the Plan’s OPEB
liability as of June 30, 2020:
Total OPEB Liability 18,750,725$
Less: OPEB plan's fiduciary net position (2,199,890)
Net OPEB Liability 16,550,835$
The OPEB plan's fiduciary net position as a
percentage of the total OPEB liability 11.73%
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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, 2020 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, 2020
Investment Rate of Return 7.25%
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 Mortaity 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
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 59 -
Development of Long - Term Rate
The long-term expected rate of return on OPEB plan investments was determined using a building block
method in which expected future rates of return (expected returns, net of 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. The target allocation as of June 30, 2020 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 21.00%6.15%
International developed markets equity 13.00%6.78%
International emerging markets equity 5.00%8.65%
Core fixed income 15.00%1.11%
High- yield fixed income 8.00%3.51%
Real Estate 10.00%4.33%
Commodities 4.00%4.13%
Hedge fund, GTAA, Risk parity 11.00%3.19%
Private equity 13.00%9.99%
Total 100.00%
Asset Class
Discount Rate – The discount rate used to measure the total OPEB liability was 7.25% as of June 30,
2020. The OPEB plan fiduciary net position was projected to be available to make all projected future
benefits payments of current plan members. Therefore, the long – term expected rate of return on OPEB
plan investment was applied to all periods of projected benefit payments to determine the OPEB liability.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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, 2019 18,270,997$ 1,961,324$ 16,309,673$
Charges for the year:
Service cost 542,478 - 542,478
Interest 1,335,290 - 1,335,290
Changes in assumptions (606,679) - (606,679)
Net Investment Income - 38,566 (38,566)
Employer Contributions - 991,361 (991,361)
Benefit payments, including refunds of member contributions (791,361) (791,361) -
Net Changes 479,728 238,566 241,162
Balance at June 30, 2020 18,750,725$ 2,199,890$ 16,550,835$
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 18,995,654$ 16,550,835$ 14,522,120$
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 14,055,130$ 16,550,835$ 19,628,732$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 61 -
At June 30, 2020 the Town reported deferred outflows of resources and deferred inflows of resources
related to other postemployment benefits of $500,934 and $5,056,272.
The balances of the deferred outflows and inflows as of June 30, 2020 consist of the following:
Deferred Deferred
Outflows Inflows
of Resources of Resources Total
Difference between expected and actual experience 422,106$ -$ 422,106$
Changes of assumptions - (5,056,272) (5,056,272)
Net difference between projected and actual earnings 78,828 - 78,828
Total Deferred Outflows (Inflows) of Resources 500,934$ (5,056,272)$ (4,555,338)$
Deferred Category
The Town’s net deferred outflows of resources and 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
2021 (1,472,763)$
2022 (1,452,196)
2023 (1,450,329)
2024 (78,937)
2025 (101,113)
Deferred Inflows/Outflows Recognized in
Future Years (4,555,338)$
Changes of Assumption – None
Changes in Plan Provisions - None
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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, 2019. The
Town’s portion of the collective pension expense, contributed by the Commonwealth, of $1,651,872 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
$13,621,740 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 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, 2020 which was $2,431,289 and 21.67% 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 64 -
D. Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
Pension Liabilities
At June 30, 2020 the Town reported a liability of $27,627,783 for its proportionate share of the net
pension liability. The net pension liability was measured as of December 31, 2019 and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of January
1, 2020. Accordingly, updated procedures were used to roll back 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, 2019, the Town’s proportion was 3.68%
which was a slight increase from the last measurement.
Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2020 the Town recognized pension expense of $3,595,266. At June 30, 2020
the Town reported deferred outflows and inflows of resources related to pensions of $4,074,345 and
$2,394,744 respectively.
The balances of deferred outflows and inflows as June 30, 2020 consist of the following:
Deferred Deferred
Outflows Inflows
of Resources of Resources Total
Difference between expected and actual experience -$ (232,878)$ (232,878)$
Changes of Assumption 3,211,919 - 3,211,919
Net difference between projected and actual investment
earnings on pension plan investments - (1,651,076) (1,651,076)
Contributions and proportionate share of contributions 862,426 (510,790) 351,636
Total Deferred Outflows (Inflows) of Resources 4,074,345$ (2,394,744)$ 1,679,601$
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
2021 441,358$
2022 433,447
2023 971,093
2024 (403,685)
2025 237,388
Deferred Inflows/Outflows Recognized in
Future Years 1,679,601$
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 65 -
E. Actuarial assumptions
The total pension liability was determined by an actuarial valuation as of January 1, 2020, using the
following actuarial assumptions, applied to all periods included in the measurement date that was rolled
back to December 31, 2019:
Valuation date……………………………… January 1, 2020
Actuarial cost method……………………… Entry Age Actuarial Cost Method.
Amortization method……………………… Appropriations increase at 5.28% per year
Projected salary increases…………………..3.25%
Investment Rate of Return/Discount Rate…..7.15% (previously 7.375%)
Cost of living adjustments………………… 3.0% of the first $18,000
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 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 a fully funded status for the
benefits provided through the pension plan.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 66 -
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%6.15%
International developed markets equity 13.00%6.78%
International emerging markets equity 5.00%8.65%
Core fixed income 15.00%1.11%
High-yield fixed income 8.00%3.51%
Real estate 10.00%4.33%
Commodities 4.00%4.13%
Hedge fund, GTAA, Risk parity 11.00%3.19%
Private equity 13.00%9.99%
Total 100.00%
For the year ended December 31, 2019 the annual money weighted rate of return on pension Plan
Investments, Net of Pension Plan Investment expense was 16.09%. The money weighted rate of return
expenses investment performance, net of the investment expense, adjusted for the changing amounts
actually invested.
G. Discount Rate
The discount rate used to measure the total pension liability was 7.15%. 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 employer 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.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 67 -
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 7.15%, as well as
what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point
lower (6.15%) or 1 percentage point higher (8.15%) than the current rate:
1% Decrease
(6.15%)
Current Discount
Rate (7.15%)
1% Increase
(8.15%)
The Town's proportionate
share of the net pension
liability 36,331,941$ 27,627,783$ 20,315,287$
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, 2020. 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 postclosure monitoring of the site for twelve years (11 years remaining), and
the estimated liability has been recorded in the Statement of Net Position, Governmental Activities. The
$313,700 reported as landfill postclosure liability at June 30, 2020 is based on what it would cost to
perform all post-closure care at June 30, 2020. Actual costs may be higher due to inflation, changes in
technology or changes in regulations.
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, 2020, cannot be ascertained, management believes any resulting liability should not materially affect
the financial position at June 30, 2020.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 68 -
NOTE 16 – COVID-19
On March 10, 2020, the Massachusetts Governor declared a state of emergency in response to the
coronavirus outbreak. The World Health Organization officially declared the novel Coronavirus (COVID-
19) a pandemic the following day. In an attempt to slow the spread of COVID-19, governments issued
various stay at home orders that caused global economic shutdowns and substantial financial market
impact. Starting in March 2020, the Governor continued to issue orders allowing governments to operate
and carry out essential functions safely. These included modifying the state’s Open Meeting Law, issuing
a stay-at-home order, and introducing a phased approach to reopening State businesses. The Town is
considered an essential business and closed to the public, but departments remained operational and most
employees continued to perform their daily duties.
In Fiscal Year 2021 the Town has incurred unanticipated costs specifically related to the pandemic. On
March 27, 2020 the United States Federal Government established the Coronavirus Aid, Relief and
Economic Security (CARES) Act in response to the economic downfall caused by the COVID-19
pandemic. This Act requires that the payment of funds be used only to cover expenses that; are necessary
expenditures incurred due to the public health emergency with respect to COVID-19. The Commonwealth
and communities throughout the Commonwealth were awarded a portion of the federal funding. In
addition to the funding from the CARES Act, there are several other federal and state grants available to
help offset these unanticipated costs.
The full extent of the financial impact cannot be determined as of the date of the financial statements.
NOTE 17 – RESTATEMENT DUE TO A CHANGE IN ACCOUNTING STANDARDS
During 2020, management has determined that it would be preferable to use the respective year-end as the
measurement date for GASB Statement #75 to coincide with the reporting date of the financial
statements. This resulted in a restatement of the governmental activities and business type activities
beginning net position at June 30, 2019 to reflect this change. The resulting change in net position is
detailed in the following table.
Description
Governmental
Activities
Business-type
Activities Water Golf
Total Net Position at June 30, 2019,
as previously reported 43,668,673$ 13,859,712$ 10,436,573$ 3,423,139$
To adjust the beginning
post employment benefits liability (982,384) 120,923 26,723 94,200
To adjust the beginning
deferred outflows of resources related to
post employment benefits liability (89,068) (10,932) (4,021) (6,911)
Total Net Position at June 30, 2019,
as restated 42,597,221$ 13,969,703$ 10,459,275$ 3,510,428$
Primary Government Business-type Activities
Statement of Net Position
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 69 -
NOTE 18 – IMPLEMENTATION OF NEW GASB PRONOUNCMENTS
During fiscal year 2020, the following GASB pronouncements were implemented:
The GASB issued Statement #84, Fiduciary Activities, was implemented in 2020. Management’s current
assessment is that this pronouncement did 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, was 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 #95, Postponement of the Effective Dates of Certain Authoritative
Guidance, was implemented in 2020. Management’s current assessment is that this pronouncement did
not have a significant impact on the Basic Financial Statements.
The GASB issued Statement #96, Subscription-Based Information Technology Arrangements, was
implemented in 2020. 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 #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 #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. . Management’s current
assessment is that this pronouncement will not have a significant impact on the Basic Financial
Statements.
The GASB issued Statement #92, Omnibus 2020, which is required to be implemented in 2022.
Management’s current assessment is that this pronouncement will not have a significant impact on the
Basic Financial Statements.
The GASB issued Statement #93, Replacement of Interbank Offered Rates, which is required to be
implemented in 2022. Management’s current assessment is that this pronouncement will not have a
significant impact on the Basic Financial Statements.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2020
- 70 -
The GASB issued Statement #94, Public-Private and Public Partnerships and Availability Payment
Arrangements, which is required to be implemented in 2022. Management’s current assessment is that
this pronouncement will not have a significant impact on the Basic Financial Statements.
The GASB issued Statement #97, Certain Component Unit Criteria, and Accounting and Financial
Reporting for Internal Revenue Service Code 457 Deferred Compensation Plans, which is required to be
implemented in 2022. Management’s current assessment is that this pronouncement will not have a
significant impact on the Basic Financial Statements.
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
BARNSTABLE COUNTY RETIREMENT ASSOCIATION
JUNE 30, 2020
Schedule of the Town’s Proportionate Share of the Net Pension Liability
December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 December 31, 2015 December 31, 2014
Town's proportion of the net pension liability 3.68%3.72%3.68%3.47%3.60%3.62%
Town's proportionate share of the net pension liability 27,627,783$ 29,398,461$ 25,055,361$ 24,381,943$ 22,672,955$ 20,436,149$
Town's covered-employee payroll 11,221,114$ 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 246.21%268.29%240.94%250.45%228.95%215.24%
Plan fiduciary net position as a percentage of the total
pension liability 62.34%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
- 71 -
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
BARNSTABLE COUNTY RETIREMENT ASSOCIATION
JUNE 30, 2020
December 31 ,2019 December 31 ,2018 December 31 ,2017 December 31 ,2016 December 31 ,2015 December 31 ,2014
Actuarily determined contribution 2,421,198$ 2,342,130$ 2,197,453$ 1,967,090$ 1,946,029$ 1,885,218$
Contribution in relation to the actuarilly
determined contribution (2,431,289) (2,342,130) (2,197,453) (1,967,090) (1,946,029) (1,885,218)
Contribution deficency (excess)(10,091)$ -$ -$ -$ -$ -$
Town's covered-employee payroll 11,221,114$ 10,957,745$ 10,398,846$ 9,735,188$ 9,902,884$ 9,494,687$
Contribution as a percentage of covered -
employee payroll 21.67%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
- 72 -
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
MASSACHUSETTS TEACHERS RETIREMENT SYSTEM
JUNE 30, 2020
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
2020 13,621,740$ 1,651,872$ 53.95%
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.
- 73 -
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2020
Schedule of the Town’s Net OPEB Liability and Related Ratios
June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Total OPEB Liability
Service Cost 542,478$ 1,010,441$ 1,032,989$ 1,200,462$
Interest 1,335,290 920,650 857,050 686,109
Differences between expected and actual experience - 1,117,981 844,215 -
Changes of assumptions (606,679) (1,273,555) (6,891,871) (2,577,803)
Benefit Payments (791,361) (707,276) (554,673) (530,788)
Net Change in total OPEB liability 479,728 1,068,241 (4,712,290) (1,222,020)
Total OPEB liability-beginning 18,270,997 17,202,756 21,915,046 23,137,066
Total OPEB liability-ending (a)18,750,725 18,270,997 17,202,756 21,915,046
Plan fiduciary net position
Contributions-employer 991,361 807,276 609,673 605,788
Net investment income 38,566 106,780 125,456 199,756
Benefit payments (791,361) (707,276) (554,673) (530,788)
Net change in plan fiduciary net position 238,566 206,780 180,456 274,756
Plan fiduciary net position - beginning 1,961,324 1,754,544 1,574,088 1,299,332
Plan fiduciary net position - ending (b)2,199,890 1,961,324 1,754,544 1,574,088
Town's net OPEB liability-ending (a)-(b)16,550,835$ 16,309,673$ 15,448,212$ 20,340,958$
Plan fiduciary net position as a percentage of
total OPEB liability 11.73%10.73%10.20%7.18%
Covered-employee payroll N/A 16,171,858 N/A 15,756,605
Plan's net OPEB liability as a percentage of
covered-employee payroll N/A 100.85%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.
- 74 -
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2020
June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Acuarially determined contribution 1,502,340$ 1,455,051$ 1,143,921$ 1,105,238$
Contributions in relation to the actuarially
determined contribution (991,360) (807,276) (609,673) (605,788)
Contribution deficiency (excess)510,980$ 647,775$ 534,248$ 499,450$
Covered-employee payroll N/A 16,171,858$ N/A 15,756,605$
Contributions as a percentage of covered-
employee payroll N/A 4.99%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.
- 75 -
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2020
June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Annual money-weighted rate of return,
net of investment expense N/A N/A 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.
- 76 -
DRAFTTOWN OF BREWSTER
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2020
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.
- 77 -
DRAFTTOWN OF BREWSTER
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2020
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
- 78 -
DRAFT
TOWN OF BREWSTER, MASSACHUSETTS
MANAGEMENT LETTER
JUNE 30, 2020
DRAFTROBERT E. BROWN II, CPA
CERTIFIED PUBLIC ACCOUNTANT
25 CEMETERY STREET - P.O. Box 230
Mendon, Massachusetts 01756
Phone: (508) 478-3941 Fax: (508) 478-1779
To the Honorable Select Board
Town of Brewster, Massachusetts
In planning and performing our audit of the basic financial statements of the Town of Brewster,
Massachusetts, as of and for the fiscal year ended June 30, 2020, in accordance with auditing
standards generally accepted in the United States of America, we considered the Town’s internal
control over financial reporting (internal control) as a basis for designing our audit procedures
for the purpose of expressing an opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the Town’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses and therefore, there can be no assurance that all
deficiencies, significant deficiencies, or material weakness have been identified.
This communication is intended solely for the information and use of management, the Select
Board, and the Commonwealth of Massachusetts and is not intended to be and should not be
used by anyone other than the specified parties.
Respectfully,
Certified Public Accountant
March 31, 2021
DRAFTTOWN OF BREWSTER, MASSACHUSETTS
COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS
JUNE 30, 2020
- 2 -
RECONCILIATION OF WATER ACCOUNTS RECEIVABLE
Finding
The Finance Department and the Water Department are periodically reconciling activity and
balances. The Water Department is also periodically reconciling the activity and balances within
the department. However, these efforts are not resulting in perfect reconciliations without
preventing variances in the activity and month end balances.
.
Recommendation
The reconciliation of accounts receivable is a very important internal control. The Water
Department’s receivable report balances and activity must be reconciled to the Water Department’s
own reports and the Town Accountant’s general ledger receivable balance on a monthly basis and
in a timely manner. If a variance occurs, the variance must be investigated in a timely manner.
Managements Response
Client response for Current Year:
After spending considerable time, effort, and energy to try to resolve this issue over the past couple
years, the Town of Brewster entered into a contract with Vadar Systems to purchase their water
utility module in November 2020. Brewster’s Finance offices (Treasurer/Collector, Assessing, and
Accounting) have used this same financial software for many years. After reviewing several
different options, it was a unanimous decision to get the water utility billing & collections on the
same system. The conversion team in Brewster consists of the Water Superintendent, The Water
Department Administrative Supervisor, IT Director, Treasurer/Collector, Assistant Town
Administrator for Community Development & Finance, and Finance Director. The Brewster Water
Dept. staff and Finance Team have been working closely with the conversion team at Vadar to
ensure the conversion is completed in a timely manner and that all data is accurate and up-to-date.
Most importantly, all water accounts will be reconciled as part of the control process of the
conversion. Town and Vadar officials are confident that the project is moving forward as planned
and will be completed on time. The anticipated go-live date for the new water utility software is
July 1, 2021. It is anticipated that this project, once implemented, will eliminate variances in the
monthly reconciliation process for these water utility accounts.
Finance Committee Minutes
March 31, 2021 Page 1 of 5
TOWN OF BREWSTER
FINANCE COMMITTEE
Date: March 31, 2021 Time: 6:00 PM
VIRTUAL MEETING MINUTES
Present: Chair Pete Dahl, Vice Chair Frank Bridges, Clerk Bill Meehan (6:17), Honey Pivirotto (6:07), Bob
Young, Andy Evans, Robert Tobias, Alex Hopper
Also present: Mimi Bernardo, Finance Director; Peter Lombardi, Town Administrator; Betsy Smith re:
Article 24
Absent:
The Chair called the meeting to order at 6:02 pm and a quorum was declared.
This meeting will be conducted by remote participation pursuant to Gov. Baker’s March 2020 orders suspending certain Open Meeting Law provisions and
imposing limits on public gatherings. No in-person meeting attendance will be permitted. If the Town is unable to live broadcast this meeting, a record of the
proceedings will be provided on the Town website as soon as possible.
The meeting may be viewed by: Live broadcast (Brewster Government TV Channel 18), Livestream (livestream.brerwster-ma.gov), or Video
recording (tv.brewster-ma.gov).
1.Public Announcements and Comment- none
Pete said the committee had expressed interest in visiting the new Cape Tech School – we were offered two
dates, today and April 15th after 3:15pm, possibly around 4pm. Please let Pete know if you would like to tour
the facility with no Committee questions, permitted under Open Meeting Law as a site visit. Pete will arrange
and let the Committee know.
2. Welcome Guests
3.Town Administrator/Finance Director Report
Andy asked about the Nauset Regional High School Election. Pete said the numbers are: Brewster voted 2,160
for; 1,456 against; 4 votes blank; a 60/40 for the project. Orleans voted 1,650 for; 585 against; 4 blanks; 74%
for and 26% against; debt exclusion was similar. Peter Lombardi said Wellfleet voted 892 for; 157 against;
Eastham voted 1,559 for; 415 against. Alex wondered about official numbers on turnout in Brewster. Peter
Lombardi said 42% of registered voters voted. He noted that the Town Clerk, who has been here awhile, was
pleased with the turnout.
Pete wanted to thank the Committee for their hard work, consideration, and lengthy discussions we have had on
the Project all along. The project had pretty strong support along all four communities. He wants to publicly
congratulate the School Committee and wish them the best of luck building the school.
4. Policies & Procedures Update - none
Approved:
VOTE:
Finance Committee Minutes
March 31, 2021 Page 2 of 5
5.Presentation, Discussion and Vote on Article 24 – Hunting on Town Property
Betsy Smith addressed the Committee. She said this issue is pretty self-explanatory. Back to 1989 was the last
time Town Meeting weighed in on hunting in the Punkhorn. Twice as many voted against as for. Many of us
were concerned about the possibility of hunting happening in the Punkhorn. The petition is the result of that.
Our sense is that we would prefer not to have hunting in the Punkhorn. Having a place to hike and walk our
dogs, ride our horses, go to bird watch without fear or disturbance is something for which many people would
be in favor.
Peter Lombardi wanted to provide context. Hunting since the town took ownership of the various parcels in the
Punkhorn has always been prohibited. The Water Commission, Conservation Commission and the Select Board
have control over those parcels. Back in 1989 there was an advisory vote, binding in nature, to memorialize
prohibiting hunting in the Punkhorn. The legal opinion which is in the packet, states that the Town Meeting
could have a vote on this being binding which would supersede the other agencies having control. The State has
agreed with Town Counsel. We asked the Water Commission and Conservation Commission to weigh in on
this, and the Water Commission doesn’t want to take a position, the Conservation Commission voted against the
petition; the genesis of this policy discussion started a couple years ago when a resident approached the
commission and asked for further research work to be done, and then developed a proposal to allow for
selective hunting in a certain part of the Punkhorn. Some residents indicated they would be interested in having
an advisory vote at Town Meeting. Just a little history of where this has come from and why we are here today.
Alex has concerns over public safety. He is not familiar with frequency of hunting in the Punkhorn seasonally
and if that would increase risk and wonders if we had any information on that. Pete said he thinks one of the
issues is increased risk. Betsy Smith said those who are opposed to hunting are concerned there is increased
risk. People have said they come to the Punkhorn when areas they normally walk have hunting.
Pete asked if the Select Board took a position. Peter Lombardi said they voted 0-4 against the petition. Betsy
Smith said they wanted to maintain flexibility in the future. She said if there was an overpopulation of deer,
someone could propose a one-time limited exception.
Bill Meehan MOVED to approve Article 24 as printed in the Warrant. Robert Tobias second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – no, Bob Young – no, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – no, Chair Pete Dahl– yes.
The Committee voted: 5-yes 3-no
6.Discussion and Vote on Elementary School Budget - Article 2
Total Assessment $10,082,808
Robert had a question regarding steps and lanes included in cola – yes, they do. His ignorance of teachers’
contracts might show here, but the appendices listing the steps (years of experience) and lanes (degrees), the
plus a number – is that lifetime educational credits? Pete said that is correct.
Bob’s comments relate to the issue we highlighted when we met with School Administration and Reserve for
Negotiation. We tried to come to some sense of how much extra capacity there could be in there, and it seemed
it could be sizable. We have gone back twice to ask about this for better understanding – depending how you
look at this, it could run into well over $100,000 for the elementary schools and far more for other regional
schools. How can he support a budget when there is a potential in excess of need of approximately $160,000?
Finance Committee Minutes
March 31, 2021 Page 3 of 5
Mimi Bernardo said in her experience, usually, unfortunately, schools do not contribute much back to Free
Cash. Because they have so much more freedom and flexibility in their operating budgets, they do find ways to
spend it, not usually turning anything back to Free Cash.
Andy said he has read the room and felt we had the greatest disappointment in voting on school budgets, there
must be some way we could suggest improvements in this budgeting process that would allow more
transparency in these budgets. Peter Lombardi said in follow up, there were similar concerns last year relative to
the Nauset School Budgets. The Select Board has an annual retreat, one of their new priority goals was fostering
relationships with Nauset School Officials especially regarding finances. This is not a new issue – we recognize
it and are working to improve it.
Frank asked about response for this. Peter Lombardi said he has not received any formal response back. Frank
said Bob raised a very valid point. His concern in delving deep into this point, this needs to occur in an
Executive Session, a closed session. Perhaps this could be taken up by Town Managers directly in a separate
meeting. Pete said he was not sure discussion of the budget items would be allowed in Executive Session. Peter
Lombardi said that is partially correct. First, trying to ascertain the real cost implications of the Reserve for
Negotiations. It is not unique. What is a challenge is what comprises that reserve, there’s the FTE count, new
hires, retirements, cola - steps and lanes, a lot of variables in play as to what comprises that number. By statute,
there is an allowance of a representative from town management to sit at the table of Regional School
Committee in terms of negotiations. We do not have that currently. To initiate that, it would go through formal
request and a vote by some parties in the four towns. He will look further into the statute.
Bill said the role of the Finance Committee is advisory. He feels the same level of frustration. He doesn’t know
how he can vote up or down without all the information we have requested. He will abstain.
Bill Meehan MOVED to approve Article 2 as printed in the Warrant. Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – abstain, Bob Young – no, Honey Pivirotto – yes,
Andrew Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 6-yes 1-no 1-abstain
7.Discussion and Vote on Nauset Regional Public School Budget – Article 3
Total Assessment $11,919,499
Peter Lombardi said he had one comment on the debt –resolved by the vote yesterday. The debt is set to
increase by $53,000 in FY22 premised on the High School project being approved and the issuance of the $9M
to move forward. If the project failed, our debt would have increased on our initial feasibility appropriation.
Pete said we have requested significant information. We have received some response. There does seem to be a
lack of total transparency. They operate independently. They don’t answer to this Committee or the voters in
Brewster. The only way to change this would be for 2/3 of the towns to reject it – 3 out of 4 towns would have
to reject it. Otherwise, they would send us an assessment. We could change the regional agreement which is a
difficult process. There are plenty of other issues that require more transparency, such as the use of millions in
revolving funds that don’t show up in the operating budget, etc.
Bill said he feels we lack sufficient information to make an informed recommendation to the town voters, and
he will abstain. In all his years, he has never voted against school budgets – he is extremely frustrated with the
current state of affairs. Nauset does run an excellent High School and an excellent Middle School, however,
they need to recognize what they spend comes out of the pockets of the voters and those voters have a right to
know more than they are allowed at this time.
Finance Committee Minutes
March 31, 2021 Page 4 of 5
Bob has the same thoughts as he did for the Elementary School Budgets. From his perspective, he feels the need
to vote no. A lack of action from the schools tells him everything he needs to know to vote.
Honey agrees with everything that’s been said, including the frustration. It is clear, increasingly so, there is
resistance to the level of transparency we are looking to receive. On one issue it’s very clear, when looking at
the Choice Students - you are looking at a gap of $17,000 per student where Brewster taxpayers will be picking
up the tab. She isn’t willing to vote in favor of the budget when none of the issues brought up that were
unanswered then are still unanswered. I am not in favor of subsidizing 200 students that the School Committee
has chosen to have in that school. I’m not willing to subsidize that. It is not appropriate.
Robert said this is his first budget cycle, yet he sees things he would like more information on and wishes he
knew more. He hopes we can fall back onto the Town’s Strategic Plan Goal hopeful that will add some light to
areas we don’t have enough information on.
Bill Meehan MOVED to approve Article 3 as printed in the Warrant. Frank Bridges second.
Roll Call Vote: Frank Bridges – no, Bill Meehan – abstain, Bob Young – no, Honey Pivirotto – no,
Andrew Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– no.
The Committee voted: 3-yes 4–no 1-abstain
8.Discussion and Vote on remaining Town Meeting Warrant Articles
Article 7 needs a quick re-vote; since Water Department is a full Enterprise Fund, the indirect charges that they
pay to the general fund should not be included in their total appropriation amount in their budget article. We
reduced that by $150,002. Total dollar amount $2,586,967 for this Article.
Robert Tobias MOVED to rescind the previous vote of the Finance Committee. Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Robert Tobias MOVED to approve Article 7, with the corrected amount of $2,586,967 as written in the
Warrant. Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Peter Lombardi said Article 10 is the Cable Franchise Fee account. We receive revenues from Comcast, funds
directed to a special revenue account, and we go to Town Meeting to appropriate a portion of those to cover the
cost of local cable access. Our current revenue balance is a little over $500,000, current fund balance is a little
over $275,000. We annually appropriate $200-$250k to cover cost of operating local cable access and related
capital costs. The appropriation for the Cable Franchise Fee of $250,000.
Bill Meehan MOVED to approve Article 10 as written in the Warrant for $250,000.
Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Finance Committee Minutes
March 31, 2021 Page 5 of 5
9. Liaison Reports
Bill has attended the Golf Commission Meetings. Last week they received the report from the National Golf
Foundation regarding the overall operation of Captains. Generally speaking, Captains is a well-run organization.
They have certain recommendations that need further clarification. We should be closed out momentarily.
10. Review and Approval of Minutes 3/17/21 & 3/24/21
Bill Meehan MOVED to approve the Minutes from 3/17/21 as presented. Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Bill Meehan MOVED to approve the Minutes from 3/24/21 as presented. Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
11. Request for agenda items for future meetings – please email Pete
12. Matters Not Reasonably Anticipated by the Chair- none
13. Next Finance Committee Meetings – 4/07, 4/14, 4/21, 4/28
14. Adjournment
Pete said votes on school budgets are difficult and challenging. Understandably, the mood can be somber.
He can only hope that we have maybe put something in motion that may help bridge the gap for perhaps
more information, more transparency, and more cooperation from our Regional School Committee.
Bill Meehan MOVED to adjourn the meeting at 7:37 PM. Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew Evans
– yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Respectfully submitted, Beth Devine
Packet of additional materials for public review posted on website.
Finance Committee Minutes
April 7, 2021 Page 1 of 5
TOWN OF BREWSTER
FINANCE COMMITTEE
Date: April 7, 2021 Time: 6:00 PM
VIRTUAL MEETING MINUTES
Present: Chair Pete Dahl, Vice Chair Frank Bridges, Clerk Bill Meehan, Honey Pivirotto (6:12), Bob
Young, Andy Evans, Robert Tobias, Alex Hopper
Also present: Mimi Bernardo, Finance Director; Peter Lombardi, Town Administrator
Absent:
The Chair called the meeting to order at 6:00 pm.
This meeting will be conducted by remote participation pursuant to Gov. Baker’s March 2020 orders suspending certain Open Meeting Law provisions and
imposing limits on public gatherings. No in-person meeting attendance will be permitted. If the Town is unable to live broadcast this meeting, a record of the
proceedings will be provided on the Town website as soon as possible.
The meeting may be viewed by: Live broadcast (Brewster Government TV Channel 18), Livestream (livestream.brerwster-ma.gov), or Video
recording (tv.brewster-ma.gov).
A quorum was declared for the Finance Committee.
1.Public Announcements and Comment- none
2.Town Administrator/Finance Director Report
Peter Lombardi addressed the Committee. He said we got an email from Senator Cyr letting us know that the
Chairs of the House and Senate Ways and Means Committee came to consensus for the FY22 budget – local aid
will be at or slightly higher than what Governor Baker and his administration originally proposed. Pete said it’s
always good news to hear that State Aid will be higher and the Town getting more funding than expected.
3. Policies & Procedures Update - none
4.Discussion and Vote on Article 23 – Road Betterment
Peter Lombardi said this program has been in place and successful for about 25 years. We are trying to do –
change the schedule such that these petitions would now be able to be brought to Special Town Meeting or
Annual Town Meeting. As it is now, they are only to be brought to the Annual Town Meeting. In section E, we
are memorializing past practices. The bylaw as written says there is only a second proxy vote by all the
residents if once the Planning Board approves the project, there are significant changes to the project. It leaves it
up to the Select Board discretion to send out to the residents for a second vote. What has been done, in every
instance, in every project, the town has sent out a second proxy vote regardless of what changes there will be.
And because of this practice, that is what the residents expect. In section G, we are looking to change or clarify
Approved:
VOTE:
Finance Committee Minutes
April 7, 2021 Page 2 of 5
how lots are determined under this bylaw in terms of their voting rights. Specifically dealing with issues of
corner lots, unbuildable lots, and lots with deed restrictions. On some of these larger projects, it makes sense to
put this language in the bylaw. Lastly, the bylaw says it only applies to private roads that have an HOA. That
hasn’t been the case practically, so we are looking to strike the language that limits betterments to only those
that have HOAs.
Bill Meehan supports all of these changes in the language because they are necessary, constructive, and
clarifying. This is essential for all residents to have the opportunity for road betterment regardless of whether
there is an HOA or not.
Bill Meehan MOVED to approve Article 23 as printed in the Warrant. Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
5.Discussion and Vote on remaining Town Meeting Warrant Articles
Special Town Meeting Article 1, Unpaid Bills
Peter Lombardi said there are no unpaid bills at this time, but in the off chance one comes through before Town
Meeting, we wanted the option to address it.
No action necessary tonight. The Committee deferred action until necessary.
Article 8, Section 5A
Peter Lombardi said there is one clarifying addition where we added Section 5A and $419,000 set aside
appropriation to Open Space Reserves and this combined with earlier appropriation to Open Space under 3A,
for debt service, those two amounts get us to our 50% minimum for Open Space for FY22. It was not explicitly
listed before. This committee has taken votes on everything else, the one additional on 5A is technically new.
The rest have all been voted on.
Frank Bridges MOVED to approve Article 8, Section 5A, minimum statutory allocation of $419,876
funded from CPA Annual Estimated Revenues. Bill Meehan second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – abstain, Bob Young – yes, Honey Pivirotto – yes,
Andrew Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Bill Meehan MOVED to approve Article 8, Section 1, Stoney Brook Mill retaining wall reconstruction
restoration in the sum of $125,000 to be funded from FY22 CPA Annual Estimated Revenues.
Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Bill Meehan MOVED to approve Article 8, Section 2, Community Housing the sum of $358,596 as printed
in the Warrant.
Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – no, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – abstain, Chair Pete Dahl– yes.
The Committee voted: 7-yes 0-no 1-abstain
Finance Committee Minutes
April 7, 2021 Page 3 of 5
Bill Meehan MOVED to approve Article 8, Section 3, Open Space the sum of $203,683 from FY22 CPA
Annual Estimated Revenues as printed in the Warrant.
Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Bill Meehan MOVED to approve Article 8, Section 4, Recreation, Dog Park Development Committee the
sum of $185,000 to be funded from FY22 CPA Annual Estimated Revenues as printed in the Warrant.
Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Bill Meehan MOVED to approve Article 8, Section 5B, Administration Expense, the sum of $62,356 to be
funded from FY22 CPA Annual Estimated Revenues as printed in the Warrant.
Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Bill Meehan MOVED to approve Article 9, Section 5A, Technology Upgrades and Replacements, the sum
of $60,000 to be funded from General Fund Free Cash as printed in the Warrant.
Frank Bridges second.
Bill is under the general opinion that we tend to fund Information Technology and any substantial improvement
gets his full support. Mimi Bernardo said the software we are looking at, we have reached out to other towns on
the Cape, and they say very good things about it. One feature of his software is that it also serves as a financial
transparency portal so everyone will have up to date financial information which is something the Committee
and taxpayers deserve to have. Peter Lombardi said there is a lot of work to get it up and running, but it is
relatively real time even with the bridge between our software and theirs.
Andy asked if there is adequate funding for training. Mimi Bernardo said it will really be herself and Kathy, and
she has used this software before in another town, so unless there have been significant changes, she
understands how the software works. Once it’s set up, it is automatic. Peter Lombardi said it is a large, well-
known national company that has a well-known scope of work and there is a training component to it.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Pete wanted to make note that in none of these cases have we rescinded previous votes, we have just re-voted.
If there was anyone who would object to that, let him know now. If not, he is going to let these re-votes stand
as the vote on these Articles as voted tonight. None being seen, these votes stand.
Articles 14-20, all the Union Contracts
Peter Lombardi said that the Union has ratified the agreement and the Select Board has agreed as well, the 1%
Cost Of Living Adjustment (COLA) that all town employees agreed to this year is also in that contract. We are
still negotiating on the new 2 year agreement Jul 1, 2021- June 30, 2023. We continue to negotiate, non-union
Finance Committee Minutes
April 7, 2021 Page 4 of 5
staff on two year agreements. We haven’t got to the point on those where the Select Board has taken action. We
believe they will be ready for a vote on the Town Meeting floor.
Advice has been to defer recommendation at this time until Town Meeting and put that in the Warrant. Andy
asked if this brings the total number of bargaining units to 7. Peter Lombardi answered it is 6 plus our non-
union personnel. All will be in sink. We will be happy to get back to a 3 year cycle 2024-2026. Andy said in the
future, this means time spent negotiating will be reduced. Peter Lombardi answered yes, that is the hope.
Bill Meehan MOVED to defer recommendation on Articles 14-20 as printed in the Warrant.
Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Article 28, Town Charter
Peter Lombardi said they made a couple small changes to the Charter based on feedback from the Water
Superintendent and Water Commission. It is Section 4-3-3 – subsection A - it is striking out the requirement
that the water and superintendent be bonded. Second change subsection C – it adds language that gives them
authority and responsibility for making budget recommendations, setting the water rates, and it makes sense for
them to have both authorities. This is consistent with past and current practice.
Bill Meehan MOVED to approve Article 28, the Town Charter as printed in the Warrant.
Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – no, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 7-yes 1-no
6.Discuss and approve Finance Committee Report – Town Meeting Warrant
Pete thanked Robert for drafting the report. Frank asked if the changes were marked as changes. Pete said he
was trying to present a clean copy. He went through the changes described to the Committee. The Committee
discussed and deliberated on the changes. Pete asked if Robert had any exceptions to the changes being
suggested. Robert said he is fine with the changes.
Bill Meehan MOVED to approve the amended report as recently discussed for inclusion in the Warrant
for Town Meeting. Robert Tobias second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew
Evans – yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0–no
7.Discuss and approve Finance Committee Report – Annual Town Report - defer
8. Liaison Reports
9. Review and Approval of Minutes- none
10. Request for agenda items for future meetings – please email Pete
Finance Committee Minutes
April 7, 2021 Page 5 of 5
11. Matters Not Reasonably Anticipated by the Chair- none
12. Site Visit 4/15 – Cape Tech 4PM – meet in front of building
13. Next Finance Committee Meetings – 4/21, 4/28
14. Adjournment
Bill Meehan MOVED to adjourn the meeting at 7:52 PM. Frank Bridges second.
Roll Call Vote: Frank Bridges – yes, Bill Meehan – yes, Bob Young – yes, Honey Pivirotto – yes, Andrew Evans
– yes, Robert Tobias – yes, Alex Hopper – yes, Chair Pete Dahl– yes.
The Committee voted: 8-yes 0-no
Respectfully submitted, Beth Devine
Packet of additional materials for public review posted on website.