HomeMy Public PortalAboutReport on the Examination of Basic Financial StatementsTOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
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
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
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
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 Select Board
Town of Brewster, Massachusetts
Report on the Financial Statements
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, 2021, and the related notes to the financial statements, which collectively comprise the
Town of Brewster, Massachusetts’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 and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the Town of Brewster, Massachusetts, as of June 30, 2021, and the respective
changes in financial position, and, where applicable, cash flows thereof 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 13, 2022, on our
consideration of the Town of Brewster, Massachusetts’s internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town of Brewster,
Massachusetts’s internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Town of Brewster,
Massachusetts’s internal control over financial reporting and compliance.
Certified Public Accountant
May 13, 2022
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Management’s Discussion and Analysis
As management of the Town of Brewster (the Town), we offer readers of the Town’s financial statements this
narrative overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2021.
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 $69.7 million (net position).
• The unrestricted negative net position of the Town’s governmental activities are -$31.0 million. The
unrestricted negative net position of the Town’s business-type activities are -$1.4 million.
• The government’s total net position increased by $7.6 million from fiscal 2020. Within this total, net position
of governmental activities increased by $6.3 million from fiscal 2020. Also, net position of business-type
activities increased by $1.3 million from 2020.
• At June 30, 2021, the Town’s governmental funds had combined ending fund balances of $22.8 million. The
combined governmental funds balance increased by $3.8 million, a 20.0% increase over the prior year’s
ending fund balances.
• The Town’s general fund reported a fund balance of $13.1 million at the end of fiscal 2021. The unassigned
fund balance for the general fund was $8.6 million or 18.88% of total general fund expenditures. A total of
$1.8 million of the assigned fund balance was designated for funding the fiscal year 2022 budget.
• The total cost of all Town services for fiscal 2021 was $54.15 million, $48.14 million of which was for
governmental activities, and $6.01 million of which was for business-type activities.
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Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements.
These basic financial statements are comprised of three components:
1. Government-wide Financial Statements
2. Fund Financial Statements
3. Notes to the Basic Financial Statements
Government-wide Financial Statements – The government-wide financial statements are designed to provide
readers with a broad overview of finances, in a manner similar to private-sector business.
The statement of net position presents information on all assets and liabilities, with the difference between the two
reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future periods, (e.g., uncollected taxes).
Both of the government-wide financial statements distinguish functions that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees or charges (business-type activities). The governmental
activities include general government, public safety, education, public works, human services, culture and
recreation, employee benefits, debt service, and state and county assessments. The business-type activities
include water and golf department services.
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. Fund accounting is used to ensure and
demonstrate compliance with finance related legal requirements. All of the funds can be divided into three main
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental Funds – governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental funds statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government’s near-term financing decisions. Both, the Governmental Funds Balance
Sheet and the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental activities.
- 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 and postemployment benefits trust are each reported and combined into a single,
aggregate presentation in the fiduciary funds financial statements under the captions “private purpose trust funds”
and “postemployment benefits trust”, 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 $69,702,472 at the close of fiscal year 2021. 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 $87,308,999, or
125.26% 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 $14,820,801 (21.26% of total) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of unrestricted net position is
($32,427,328) or -46.52% of total.
The Town decreased its total liabilities by $6,939,603 as compared to fiscal 2020, and total net position increased
by $7.7 million or 12.41%. Net position of governmental activities increased by $6,410,232, a 13.53% increase
from fiscal 2020. Net position of business-type activities increased by $1,282,325 or 8.76% from 2020. There
was an increase of $141,203 in net position reported in connection with the water business-type activity, and an
increase of $1,141,122 in net position in connection with the golf department business-type activity, respectively.
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Increase Increase Increase
FY 2021 FY 2020 (Decrease)FY 2021 FY 2020 (Decrease)FY 2021 FY 2019 (Decrease)
Assets:
Current assets 26,994,288$ 23,821,424$ 3,172,864$ 5,165,550$ 3,567,883$ 1,597,667$ 32,159,838$ 27,389,307$ 4,770,531$
Noncurrent assets (excluding capital)259,040 382,481 (123,441) 3,394 6,120 (2,726) 262,434 388,601 (126,167)
Capital assets 87,994,147 88,131,471 (137,324) 21,263,921 22,041,682 (777,761) 109,258,068 110,173,153 (915,085)
Total assets 115,247,475 112,335,376 2,912,099 26,432,865 25,615,685 817,180 141,680,340 137,951,061 3,729,279
Deferred Outflow of Resources:3,030,607 3,864,142 (833,535) 525,640 711,137 (185,497) 3,556,247 4,575,279 (1,019,032)
Liabilities:
Current liabilities (excluding debt)2,382,036 2,180,014 202,022 263,219 175,689 87,530 2,645,255 2,355,703 289,552
Noncurrent liabilities (excluding debt)34,703,766 38,193,385 (3,489,619) 5,618,729 6,260,119 (641,390) 40,322,495 44,453,504 (4,131,009)
Current debt 2,276,248 3,343,146 (1,066,898) 405,000 405,000 - 2,681,248 3,748,146 (1,066,898)
Noncurrent debt 16,966,808 18,593,056 (1,626,248) 3,510,000 3,915,000 (405,000) 20,476,808 22,508,056 (2,031,248)
Total liabilities 56,328,858 62,309,601 (5,980,743) 9,796,948 10,755,808 (958,860) 66,125,806 73,065,409 (6,939,603)
Deferred Inflows of Resources:8,161,563 6,512,488 1,649,075 1,246,746 938,528 308,218 9,408,309 7,451,016 1,957,293
Net Position:
Net investment in capital assets 69,960,078 68,419,755 1,540,323 17,348,921 17,873,006 (524,085) 87,308,999 86,292,761 1,016,238
Restricted 14,820,801 11,810,300 3,010,501 - - - 14,820,801 11,810,300 3,010,501
Unrestricted (30,993,218) (32,852,626) 1,859,408 (1,434,110) (3,240,520) 1,806,410 (32,427,328) (36,093,146) 3,665,818
Total net position 53,787,661$ 47,377,429$ 6,410,232$ 15,914,811$ 14,632,486$ 1,282,325$ 69,702,472$ 62,009,915$ 7,692,557$
Revenues
Program Revenues:
Charges for services 3,901,614$ 2,947,017$ 954,597$ 7,521,954$ 6,242,526$ 1,279,428$ 11,423,568$ 9,189,543$ 2,234,025$
Operating grants and contributions 6,729,568 4,364,989 2,364,579 79,217 71,245 7,972 6,808,785 4,436,234 2,372,551
Capital grants and contributions 774,186 1,146,894 (372,708) - - - 774,186 1,146,894 (372,708)
General Revenues:
Real Estate and personal property taxes 36,346,103 35,304,344 1,041,759 - - - 36,346,103 35,304,344 1,041,759
Tax Liens 13,146 46,612 (33,466) - - - 13,146 46,612 (33,466)
Motor vehicle and other excise taxes 1,722,856 1,617,176 105,680 - - - 1,722,856 1,617,176 105,680
Hotel/Motel Tax and Meals Tax 2,262,385 1,699,075 563,310 - - - 2,262,385 1,699,075 563,310
Penalties and interest on taxes 110,261 62,505 47,756 - - - 110,261 62,505 47,756
Payments in Lieu of Taxes 6,883 6,884 (1) - - - 6,883 6,884 (1)
Nonrestricted grants and contributions 2,213,764 2,180,275 33,489 - - - 2,213,764 2,180,275 33,489
Unrestricted investment income 27,416 172,935 (145,519) - - - 27,416 172,935 (145,519)
Other revenues 48,929 28,012 20,917 - - - 48,929 28,012 20,917
Total Revenues 54,157,111 49,576,718 4,580,393 7,601,171 6,313,771 1,287,400 61,758,282 55,890,489 5,867,793
Expenses:
General Government 6,018,917 4,264,012 1,754,905 - - - 6,018,917 4,264,012 1,754,905
Public Safety 7,521,175 7,125,037 396,138 - - - 7,521,175 7,125,037 396,138
Education 21,384,051 21,011,343 372,708 - - - 21,384,051 21,011,343 372,708
Public Works 2,647,621 2,485,848 161,773 - - - 2,647,621 2,485,848 161,773
Human Services 876,708 950,022 (73,314) - - - 876,708 950,022 (73,314)
Culture and Recreation 1,330,301 1,253,516 76,785 - - - 1,330,301 1,253,516 76,785
Employee Benefits 7,186,486 6,639,159 547,327 - - - 7,186,486 6,639,159 547,327
State and County Assessments 621,789 626,188 (4,399) - - - 621,789 626,188 (4,399)
Interest 556,230 641,385 (85,155) - - - 556,230 641,385 (85,155)
Golf - - - 3,393,440 3,041,693 351,747 3,393,440 3,041,693 351,747
Water - - - 2,610,413 2,409,295 201,118 2,610,413 2,409,295 201,118
Total Expenses 48,143,278 44,996,510 3,146,768 6,003,853 5,450,988 552,865 54,147,131 50,447,498 3,699,633
Increase/(Decrease) in Net Position before contributions
to permanent endowments and transfers 6,013,833 4,580,208 1,433,625 1,597,318 862,783 734,535 7,611,151 5,442,991 2,168,160
Transfers 314,993 200,000 114,993 (314,993) (200,000) (114,993) - - -
Change in Net Position 6,328,826 4,780,208 1,548,618 1,282,325 662,783 619,542 7,611,151 5,442,991 2,168,160
Prior Period Adjustment - OPEB - (1,071,452) 1,071,452 - 109,991 (109,991) - (961,461) 961,461
Prior Period Adjustment - Agency 81,406 - 81,406 - - - 81,406 - 81,406
Net Position - beginning 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
Net Position - ending 53,787,661$ 47,377,429$ 6,410,232$ 15,914,811$ 14,632,486$ 1,282,325$ 69,621,066$ 62,009,915$ 7,611,151$
Town of Brewster - Financial Highlights
Total
Governmental Business-type Primary
Activities Activities Government
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Financial analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds – The focus of governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year, governmental funds reported combined ending fund balances of
$22,762,191 a $3,795,356 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 $8,568,197, while total fund balance stood at $13,086,497. 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 18.9% of total general fund expenditures, while total fund
balance represents 28.8% of that same amount.
The stabilization fund has accumulated a fund balance of $2,990,811 which represents 6.59% 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 $63,859 (at Special Town Meeting), primarily for
increases to fund general government, public safety, education, public works, human services, and culture &
recreation; while decreases were approved for employee benefits. The Town budgeted $42.7 million in revenues
and $47.0 million in expenditures, drawing on transfers and prior year’s surplus to finance the difference. At year
end, actual revenues exceeded estimates by $1,813,846 and $1,546,607 of unexpended appropriation balances
was closed out to unassigned fund balance.
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Capital Asset and Debt Administration
Capital Assets - In conjunction with the operating budget, the Town annually prepares capital budgets for the
upcoming fiscal year.
The Town’s investment in capital assets for governmental and business type activities, as summarized below, as
of June 30, 2021, amounts to $109,258,068 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 decreased by -$137,324 during
the current fiscal year while the business-type activities capital assets (net of accumulated depreciation) decreased
by -$777,761. Total depreciation was $3.28 million, resulting in a total government-wide decrease to capital
assets (net of accumulated depreciation) of $915,085.
Increase Increase
FY 2021 FY 2020 (Decrease)FY 2021 FY 2020 (Decrease)FY 2021 FY 2020
Land 42,192,861$ 42,192,861$ -$ 3,559,212$ 3,559,212$ -$ 45,752,073$ 45,752,073$
Construction in Progress 145,547 3,709,131 (3,563,584) 100,850 581,224 (480,374) 246,397 4,290,355
42,338,408 45,901,992 (3,563,584) 3,660,062 4,140,436 (480,374) 45,998,470 50,042,428
Buildings and improvements 25,252,798 26,120,151 (867,353) 3,984,451 4,033,351 (48,900) 29,237,249 30,153,502
Improvements (other than buildings)3,672,386 3,594,726 77,660 - - - 3,672,386 3,594,726
Machinery, Equipment, and Vehicles 4,378,913 4,176,913 202,000 1,324,318 1,017,516 306,802 5,703,231 5,194,429
Infrastructure 12,351,642 8,337,689 4,013,953 12,295,090 12,850,379 (555,289) 24,646,732 21,188,068
45,655,739 42,229,479 3,426,260 17,603,859 17,901,246 (297,387) 63,259,598 60,130,725
Total Capital Assets 87,994,147$ 88,131,471$ (137,324)$ 21,263,921$ 22,041,682$ (777,761)$ 109,258,068$ 110,173,153$
Activities Activities Government
Capital Assets
(Net of Depreciation)
Total
Governmental Business-type Primary
- 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, 2021 totaled $21,400,000. Within this total, business-type activities have debt of
$3,915,000 that is fully supported by their respective program revenues, and governmental activities debt is
$17,485,000. Total debt consists of the following:
Outstanding Outstanding
Governmental Activities June 30, 2021 June 30, 2020
Road Betterments - Prell Circle 15,000$ 20,000$
Road Betterments - Allen Drive 15,000 20,000
Ebeneezer Lane Road Bett 50,000 60,000
S. Pond DR/Captain Fitz Rd 70,000 80,000
School Renovations 2,175,000 2,320,000
Road Repairs 1,325,000 1,460,000
MWPAT Title V 30,000 40,000
Punkhorn Land Acquisition - 6/30/11 325,000 360,000
Heights Road Betterments - 6/30/11 - 20,000
Lane Road Betterments - 6/30/11 - 5,000
MWPAT #97-1156 Title V - 10,200
Land Purchase - 60,000
Land Purchase 660,000 785,000
Fire Station - 5/3/17 5,200,000 5,525,000
Road Repairs - 5/3/17 1,610,000 1,770,000
Library Parking Lot - 5/3/17 200,000 220,000
Tower Hill Circle - RD Bett - 5/3/17 150,000 165,000
Moss/Commons - RD Bett - 5/3/17 50,000 55,000
Public Way - 3/15/18 75,000 85,000
Fire Building - 3/15/18 5,100,000 5,400,000
TriTown Septage - 3/15/18 435,000 500,000
Total Governmental Activities 17,485,000$ 18,960,200$
Outstanding Outstanding
Business-type Activities June 30, 2021 June 30, 2020
Land Purchase - Copelas 415,000$ 450,000$
Well Access Road 125,000 150,000
Water 615,000 660,000
WELL #6 & WATER MAIN - 1,730,000 1,865,000
Water offices/garage 850,000 975,000
Slough Road 175,000 210,000
Water Betterments - Fiddler's Lane 5,000 10,000
Total Business-type Activities 3,915,000$ 4,320,000$
Grand Total - All long-term debt 21,400,000$ 23,280,200$
Outstanding Debt at Year End
Please refer to Notes 5 and 9 for further discussion of the major capital asset and debt activity.
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Economic Factors and Next Year’s Budgets & Tax Rate
The Town’s leadership (elected and appointed officials) considered many factors when setting the fiscal 2022
budget and tax rates including the following:
• The Fiscal 2022 tax rate was set at $7.85, a $.73 cent decrease over Fiscal 2021. The excess levy capacity
was $19,622.
• The Select Board voted during their classification hearing to maintain the same tax rate for all classes of
property.
• Fiscal 2021 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, $200,000 in Fiscal 2020, and $250,000 in Fiscal 2021. The June 30, 2021
balance in this fund is $3,136,620.
• The June 30, 2021 balance in the Stabilization Fund is $2,990,811. In addition, the Town has a balance of
$500,168 in the Capital Stabilization Fund.
Request for Information
This financial report is designed to provide a general overview of the Town of Brewster’s finances for all those
with an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Finance Director, 2198 Main
Street, Brewster, MA 02631.
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 25,068,023$ 4,366,343$ 29,434,366$
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 472,032 - 472,032
TAX LIENS 497,724 - 497,724
MOTOR VEHICLE EXCISE TAXES 119,196 - 119,196
USER FEES - 797,308 797,308
DEPARTMENTAL AND OTHER 362,277 - 362,277
INTERGOVERNMENTAL 408,297 - 408,297
SPECIAL ASSESSMENTS 66,739 1,899 68,638
NONCURRENT:
RECEIVABLES:
SPECIAL ASSESSMENTS 259,040 3,394 262,434
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 87,994,147 21,263,921 109,258,068
TOTAL ASSETS 115,247,475 26,432,865 141,680,340
DEFERRED OUTFLOWS OF RESOURCES
RELATED TO PENSIONS 2,783,617 491,227 3,274,844
RELATED TO POST EMPLOYMENT BENEFITS 246,990 34,413 281,403
TOTAL DEFERRED OUTFLOWS OF RESOURCES 3,030,607 525,640 3,556,247
LIABILITIES
CURRENT:
ACCOUNTS PAYABLE 2,211,800 249,482 2,461,282
OTHER LIABILITIES 156 - 156
ACCRUED INTEREST 130,836 13,737 144,573
LANDFILL POSTCLOSURE CARE COSTS 39,244 - 39,244
CAPITAL LEASES 176,040 - 176,040
BONDS AND NOTES PAYABLE 2,100,208 405,000 2,505,208
NONCURRENT:
LANDFILL POSTCLOSURE CARE COSTS 241,556 - 241,556
POSTEMPLOYMENT BENEFITS 12,461,944 1,736,329 14,198,273
NET PENSION LIABILITY 22,000,266 3,882,400 25,882,666
CAPITAL LEASES 434,288 - 434,288
BONDS AND NOTES PAYABLE 16,532,520 3,510,000 20,042,520
TOTAL LIABILITIES 56,328,858 9,796,948 66,125,806
DEFERRED INFLOWS OF RESOURCES
RELATED TO PENSIONS 2,950,759 520,722 3,471,481
RELATED TO POST EMPLOYMENT BENEFITS 5,210,804 726,024 5,936,828
TOTAL DEFERRED INFLOWS OF RESOURCES 8,161,563 1,246,746 9,408,309
NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 69,960,078 17,348,921 87,308,999
RESTRICTED FOR:
PERMANENT FUNDS:
EXPENDABLE 147,994 - 147,994
NONEXPENDABLE 150,388 - 150,388
OTHER PURPOSES 14,522,419 - 14,522,419
UNRESTRICTED (30,993,218) (1,434,110) (32,427,328)
TOTAL NET POSITION 53,787,661$ 15,914,811$ 69,702,472$
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2021
PRIMARY GOVERNMENT
See accompanying notes to the basic financial statements
- 11 -
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND NET (EXPENSE)
FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT:
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT 6,018,917$ 541,738$ 2,858,529$ -$ (2,618,650)$
PUBLIC SAFETY 7,521,175 2,043,770 345,560 - (5,131,845)
EDUCATION 21,384,051 218,139 1,323,258 - (19,842,654)
PUBLIC WORKS 2,647,621 598,805 28,625 102,756 (1,917,435)
HUMAN SERVICES 876,708 68,836 159,621 - (648,251)
CULTURE & RECREATION 1,330,301 430,326 133,810 671,430 (94,735)
EMPLOYEE BENEFITS 7,186,486 - 1,880,165 - (5,306,321)
STATE & COUNTY ASSESSMENTS 621,789 - -- (621,789)
INTEREST 556,230 - -- (556,230)
TOTAL GOVERNMENTAL ACTIVITIES 48,143,278 3,901,614 6,729,568 774,186 (36,737,910)
BUSINESS-TYPE ACTIVITIES:
GOLF 3,393,440 4,649,529 - - 1,256,089
WATER 2,610,413 2,872,425 79,217 - 341,229
TOTAL BUSINESS-TYPE ACTIVITIES 6,003,853 7,521,954 79,217 - 1,597,318
TOTAL PRIMARY GOVERNMENT 54,147,131$ 11,423,568$ 6,808,785$ 774,186$ (35,140,592)$
(continued)
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2021
PROGRAM REVENUES
See accompanying notes to the basic financial statements
- 12 -
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
CHANGES IN NET POSITION:
NET (EXPENSE) REVENUE FROM PREVIOUS PAGE (36,737,910)$ 1,597,318$ (35,140,592)$
GENERAL REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS PAYABLE 36,346,103 - 36,346,103
TAX LIENS 13,146 - 13,146
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,722,856 - 1,722,856
HOTEL/MOTEL & MEALS TAX 2,262,385 - 2,262,385
PENALTIES AND INTEREST ON TAXES 110,261 - 110,261
PAYMENTS IN LIEU OF TAXES 6,883 - 6,883
GRANTS AND CONTRIBUTIONS NOT RESTRICTED
TO SPECIFIC PROGRAMS 2,213,764 - 2,213,764
UNRESTRICTED INVESTMENT INCOME 27,416 - 27,416
MISCELLANEOUS 48,929 - 48,929
TRANSFERS, NET 314,993 (314,993) -
TOTAL GENERAL REVENUES AND TRANSFERS 43,066,736 (314,993) 42,751,743
CHANGE IN NET POSITION 6,328,826 1,282,325 7,611,151
NET POSITION:
BEGINNING OF YEAR 47,458,835 14,632,486 62,091,321
END OF YEAR 53,787,661$ 15,914,811$ 69,702,472$
(concluded)
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2021
PRIMARY GOVERNMENT
See accompanying notes to the basic financial statements
- 13 -
TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2021
NONMAJOR TOTAL
COMMUNITY GOVERNMENTAL GOVERNMENTAL
ASSETS GENERAL PRESERVATION FUNDS FUNDS
CASH AND SHORT-TERM INVESTMENTS 15,040,302$ 3,750,079$ 6,277,642$ 25,068,023$
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 472,032 - - 472,032
TAX LIENS 497,724 - - 497,724
MOTOR VEHICLE EXCISE TAXES 119,196 - - 119,196
DEPARTMENTAL AND OTHER - 24,097 338,180 362,277
INTERGOVERNMENTAL - - 408,297 408,297
SPECIAL ASSESSMENTS - - 325,779 325,779
TOTAL ASSETS 16,129,254$ 3,774,176$ 7,349,898$ 27,253,328$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES:
ACCOUNTS PAYABLE 2,101,476$ 13,127$ 97,197$ 2,211,800$
OTHER LIABILITIES 156 - - 156
NOTES PAYABLE - - 650,000 650,000
TOTAL LIABILITIES 2,101,632 13,127 747,197 2,861,956
DEFFERRED INFLOWS OF RESOURCES:
UNAVAILABLE REVENUE 941,125 24,097 663,959 1,629,181
FUND BALANCES:
NONSPENDABLE - - 150,388 150,388
RESTRICTED 175,690 3,736,952 7,189,516 11,102,158
COMMITTED 2,042,002 - - 2,042,002
ASSIGNED 2,300,618 - - 2,300,618
UNASSIGNED 8,568,187 - (1,401,162) 7,167,025
TOTAL FUND BALANCES 13,086,497 3,736,952 5,938,742 22,762,191
TOTAL LIABILITIES, DEFERRED INFLOW OF RESOURCES
AND FUND BALANCES 16,129,254$ 3,774,176$ 7,349,898$ 27,253,328$
See accompanying notes to the basic financial statements
- 14 -
NONMAJOR TOTAL
COMMUNITY GOVERNMENTAL GOVERNMENTAL
GENERAL PRESERVATION FUNDS FUNDS
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 36,406,979$ -$ -$ 36,406,979$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,797,486 - - 1,797,486
INTERGOVERNMENTAL 3,711,911 746,093 2,968,064 7,426,068
PAYMENTS IN LIEU OF TAXES 6,883 - - 6,883
PENALTIES & INTEREST ON TAXES 110,261 - - 110,261
FINES & FORFEITS 46,349 - - 46,349
CHARGES FOR SERVICES 595,104 - 2,049,804 2,644,908
HOTEL/MOTEL & MEALS TAX 1,229,111 - - 1,229,111
INVESTMENT INCOME 26,573 5,902 1,443 33,918
CONTRIBUTIONS AND DONATIONS - - 247,432 247,432
DEPARTMENTAL AND OTHER 2,485,227 1,076,380 755,361 4,316,968
TOTAL REVENUES 46,415,884 1,828,375 6,022,104 54,266,363
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 3,407,643 442,592 2,243,514 6,093,749
PUBLIC SAFETY 6,581,531 - 597,736 7,179,267
EDUCATION 20,449,168 - 463,838 20,913,006
PUBLIC WORKS 2,675,452 - 622,303 3,297,755
HUMAN SERVICES 814,892 - 73,420 888,312
CULTURE & RECREATION 827,745 511,617 167,344 1,506,706
EMPLOYEE BENEFITS 8,159,221 - 944 8,160,165
STATE & COUNTY ASSESSMENTS 621,789 - - 621,789
DEBT SERVICE
PRINCIPAL 1,255,200 220,000 - 1,475,200
INTEREST 593,153 56,898 - 650,051
TOTAL EXPENDITURES 45,385,794 1,231,107 4,169,099 50,786,000
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 1,030,090 597,268 1,853,005 3,480,363
OTHER FINANCING SOURCES (USES)
OPERATING TRANSFERS IN 1,528,711 70,000 240,417 1,839,128
OPERATING TRANSFERS OUT (240,417) - (1,283,718) (1,524,135)
TOTAL OTHER FINANCING SOURCES (USES)1,288,294 70,000 (1,043,301) 314,993
NET CHANGE IN FUND BALANCES 2,318,384 667,268 809,704 3,795,356
FUND BALANCES AT BEGINNING OF YEAR 10,768,113 3,069,684 5,129,038 18,966,835
FUND BALANCES AT END OF YEAR 13,086,497$ 3,736,952$ 5,938,742$ 22,762,191$
TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2021
See accompanying notes to the basic financial statements
- 15 -
TOTAL GOVERNMENTAL FUND BALANCES 22,762,191$
CAPITAL ASSETS (NET) USED IN GOVERNMENTAL ACTIVITIES ARE NOT FINANCIAL RESOURCES
AND, THEREFORE, ARE NOT REPORTED IN THE FUNDS 87,994,147
ACCOUNTS RECEIVABLE ARE NOT AVAILABLE TO PAY FOR CURRENT-PERIOD
EXPENDITURES AND, THEREFORE, ARE DEFERRED IN THE FUNDS 1,629,181
IN THE STATEMENT OF ACTIVITIES, INTEREST IS ACCRUED ON OUTSTANDING LONG-TERM DEBT,
WHEREAS IN GOVERNMENTAL FUNDS INTEREST IS NOT REPORTED UNTIL DUE (130,836)
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 (17,485,000)
CAPITAL LEASES (610,328)
NET PENSION LIABILITY (22,000,266)
DEFERRED OUTFLOWS OF RESOURCES - RELATED TO PENSION 2,783,617
DEFERRED INFLOWS OF RESOURCES - RELATED TO PENSION (2,950,759)
POSTEMPLOYMENT BENEFITS (12,461,944)
DEFERRED OUTFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS 246,990
DEFERRED INFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS (5,210,804)
UNAMORTIZED BOND PREMIUM (497,728)
LANDFILL POSTCLOSURE CARE COSTS (280,800)
NET EFFECT OF REPORTING LONG-TERM LIABILITIES (58,467,022)
NET POSITION OF GOVERNMENTAL ACTIVITIES 53,787,661$
TOWN OF BREWSTER, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying notes to the basic financial statements
- 16 -
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 3,795,356$
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 2,256,286
DEPRECIATION EXPENSE (2,393,610)
NET EFFECT OF REPORTING CAPITAL ASSETS (137,324)
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 (109,252)
THE ISSUANCE OF LONG-TERM DEBT (E.G., BONDS) PROVIDES CURRENT FINANCIAL
RESOURCES TO GOVERNMENTAL FUNDS, WHILE THE REPAYMENT OF THE PRINCIPAL OF LONG-
TERM DEBT CONSUMES THE FINANCIAL RESOURCES OF GOVERNMENTAL FUNDS. NEITHER
TRANSACTION, HOWEVER, HAS ANY EFFECT ON NET ASSETS. ALSO, GOVERNMENTAL FUNDS
REPORT THE EFFECT OF ISSUANCE COSTS, PREMIUMS, DISCOUNTS, AND SIMILAR ITEMS WHEN
DEBT IS FIRST ISSUED, WHEREAS THESE AMOUNTS ARE DEFERRED AND AMORTIZED IN THE
STATEMENT OF ACTIVITIES.
DEBT SERVICE PRINCIPAL PAYMENTS 1,475,200
CAPITAL LEASE - PRINCIPAL PAYMENTS 204,446
NET EFFECT OF REPORTING LONG-TEM DEBT 1,679,646
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 2,279,608
NET CHANGE IN DEFERRED OUTFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS (199,184)
NET CHANGE IN DEFERRED INFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS (707,267)
NET CHANGE IN LANDFILL POSTCLOSURE CARE ACCRUAL 32,900
NET CHANGE IN NET PENSION LIABILITY 1,176,681
NET CHANGE IN DEFERRED OUTFLOWS OF RESOURCES - RELATED TO PENSIONS (634,351)
NET CHANGE IN DEFERRED INFLOWS OF RESOURCES - RELATED TO PENSIONS (941,808)
NET CHANGE IN UNAMORTIZED BOND PREMIUM 77,393
NET CHANGE IN ACCRUED INTEREST ON LONG-TERM DEBT 16,428
NET EFFECT OF RECORDING LONG-TERM LIABILITIES 1,100,400
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 6,328,826$
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, 2021
See accompanying notes to the basic financial statements
- 17 -
ACTUAL
ORIGINAL FINAL BUDGETARY VARIANCE
BUDGET BUDGET AMOUNTS OVER(UNDER)
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 36,381,645$ 36,381,645$ 36,406,979$ 25,334$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,354,879 1,354,879 1,797,486 442,607
INTERGOVERNMENTAL 1,830,709 1,830,709 1,847,817 17,108
PAYMENTS IN LIEU OF TAXES 8,328 8,328 6,883 (1,445)
PENALTIES & INTEREST ON TAXES 99,890 99,890 110,261 10,371
FINES & FORFEITS 23,826 23,826 46,349 22,523
HOTEL/MOTEL & MEALS TAX 1,257,107 1,257,107 1,229,111 (27,996)
INVESTMENT INCOME 114,793 114,793 20,835 (93,958)
DEPARTMENTAL AND OTHER 1,661,029 1,661,029 3,080,331 1,419,302
TOTAL REVENUES 42,732,206 42,732,206 44,546,052 1,813,846
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 4,614,853 4,665,745 4,200,526 465,219
PUBLIC SAFETY 7,441,831 7,470,467 7,159,143 311,324
EDUCATION 20,832,251 20,890,125 20,889,858 267
PUBLIC WORKS 3,074,998 3,091,794 3,041,887 49,907
HUMAN SERVICES 913,631 924,617 823,961 100,656
CULTURE & RECREATION 910,737 923,072 852,030 71,042
EMPLOYEE BENEFITS 6,673,415 6,559,755 6,050,115 509,640
STATE & COUNTY ASSESSMENTS 657,402 657,402 621,789 35,613
DEBT SERVICE
PRINCIPAL 1,255,383 1,255,383 1,255,200 183
INTEREST 593,891 593,891 591,135 2,756
TOTAL EXPENDITURES 46,968,392 47,032,251 45,485,644 1,546,607
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (4,236,186) (4,300,045) (939,592) 3,360,453
OTHER FINANCING SOURCES (USES):
OPERATING TRANSFERS IN 1,460,592 1,524,451 1,528,711 4,260
OPERATING TRANSFERS OUT (240,417) (240,417) (240,417) -
TOTAL OTHER FINANCING SOURCES (USES)1,220,175 1,284,034 1,288,294 4,260
NET CHANGE IN FUND BALANCE (3,016,011) (3,016,011) 348,702 3,364,713
BUDGETARY FUND BALANCE, BEGINNING OF YEAR 7,873,492 7,873,492 7,873,492 -
BUDGETARY FUND BALANCE, END OF YEAR 4,857,481$ 4,857,481$ 8,222,194$ 3,364,713$
See accompanying notes to the basic financial statements
TOWN OF BREWSTER, MASSACHUSETTS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2021
BUDGETED AMOUNTS
- 18 -
ASSETS GOLF WATER TOTAL
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 1,617,879$ 2,748,464$ 4,366,343$
USER FEES - 797,308 797,308
SPECIAL ASSESSMENTS - 1,899 1,899
TOTAL CURRENT ASSETS 1,617,879 3,547,671 5,165,550
NONCURRENT:
SPECIAL ASSESSMENTS - 3,394 3,394
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 7,402,969 13,860,952 21,263,921
TOTAL NONCURRENT ASSETS 7,402,969 13,864,346 21,267,315
TOTAL ASSETS 9,020,848 17,412,017 26,432,865
DEFERRED OUTFLOWS OF RESOURCES
RELATED TO PENSIONS 261,988 229,239 491,227
RELATED TO POST EMPLOYMENT BENEFITS 20,912 13,501 34,413
TOTAL DEFERRED OUTFLOWS OF RESOURCES 282,900 242,740 525,640
LIABILITIES
CURRENT:
ACCOUNTS PAYABLE 151,552 97,930 249,482
ACCRUED INTEREST - 13,737 13,737
BONDS AND NOTES PAYABLE - 405,000 405,000
TOTAL CURRENT LIABILITIES 151,552 516,667 668,219
NONCURRENT:
POSTEMPLOYMENT BENEFITS 1,055,134 681,195 1,736,329
NET PENSION LIABILITY 2,070,613 1,811,787 3,882,400
BONDS AND NOTES PAYABLE - 3,510,000 3,510,000
TOTAL NONCURRENT LIABILITIES 3,125,747 6,002,982 9,128,729
TOTAL LIABILITIES 3,277,299 6,519,649 9,796,948
DEFERRED INFLOWS OF RESOURCES
RELATED TO PENSIONS 277,718 243,004 520,722
RELATED TO POST EMPLOYMENT BENEFITS 441,191 284,833 726,024
TOTAL DEFERRED INFLOWS OF RESOURCES 718,909 527,837 1,246,746
NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 7,402,969 9,945,952 17,348,921
UNRESTRICTED (2,095,429) 661,319 (1,434,110)
TOTAL NET POSITION 5,307,540$ 10,607,271$ 15,914,811$
See accompanying notes to the basic financial statements
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2021
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS
- 19 -
GOLF WATER TOTAL
OPERATING REVENUES:
CHARGES FOR SERVICES 4,649,529$ 2,872,425$ 7,521,954$
DEPARTMENTAL AND OTHER - 76,486 76,486
TOTAL OPERATING REVENUES 4,649,529 2,948,911 7,598,440
OPERATING EXPENSES:
GENERAL SERVICES 2,961,131 2,011,562 4,972,693
DEPRECIATION 432,309 456,281 888,590
TOTAL OPERATING EXPENSES 3,393,440 2,467,843 5,861,283
OPERATING INCOME (LOSS)1,256,089 481,068 1,737,157
NON-OPERATING REVENUES (EXPENSES):
INTEREST INCOME - 2,731 2,731
INTEREST EXPENSE - (142,570) (142,570)
TOTAL NON-OPERATING REVENUES (EXPENSES), NET - (139,839) (139,839)
INCOME (LOSS) BEFORE OPERATING TRANSFERS 1,256,089 341,229 1,597,318
OPERATING TRANSFERS:
OPERATING TRANSFERS OUT (114,967) (200,026) (314,993)
CHANGE IN NET POSITION 1,141,122 141,203 1,282,325
NET POSITION AT BEGINNING OF YEAR 4,166,418 10,466,068 14,632,486
NET POSITION AT END OF YEAR 5,307,540$ 10,607,271$ 15,914,811$
See accompanying notes to the basic financial statements
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2021
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUNDS
- 20 -
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2021
GOLF WATER TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES:
RECEIPTS FROM CUSTOMERS AND USERS 4,649,529$ 3,105,935$ 7,755,464$
PAYMENTS TO SUPPLIERS (1,699,652) (1,000,433) (2,700,085)
PAYMENTS TO EMPLOYEES (1,421,936) (908,987) (2,330,923)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,527,941 1,196,515 2,724,456
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING TRANSFERS OUT (114,967) (200,026) (314,993)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PRINCIPAL PAYMENTS ON BONDS AND NOTES - (405,000) (405,000)
ACQUISITION AND CONSTRUCTION OF CAPITAL ASSETS (23,050) (87,779) (110,829)
INTEREST EXPENSE - (144,400) (144,400)
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (23,050) (637,179) (660,229)
CASH FLOWS FROM INVESTING ACTIVITIES:
INTEREST RECEIVED - 2,731 2,731
NET INCREASE (DECREASE) IN CASH AND SHORT TERM INVESTMENTS 1,389,924 362,041 1,751,965
CASH AND SHORT TERM INVESTMENTS - BEGINNING OF YEAR 227,955 2,386,423 2,614,378
CASH AND SHORT TERM INVESTMENTS- END OF YEAR 1,617,879$ 2,748,464$ 4,366,343$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
OPERATING INCOME (LOSS)1,256,089$ 481,068$ 1,737,157$
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 432,309 456,281 888,590
(INCREASE) DECREASE IN ACCOUNTS RECEIVABLE - 157,024 157,024
(INCREASE) DECREASE IN DEFERRED OUTFLOWS OF RESOURCES 114,743 70,754 185,497
INCREASE (DECREASE) IN ACCOUNTS PAYABLE 48,398 40,962 89,360
INCREASE (DECREASE) IN DEFERRED INFLOWS OF RESOURCES 156,104 152,114 308,218
INCREASE (DECREASE) IN NET PENSION LIABILITY (391,023) (177,413) (568,436)
INCREASE (DECREASE) IN POSTEMPLOYMENT BENEFITS (88,679) 15,725 (72,954)
TOTAL ADJUSTMENTS 271,852 715,447 987,299
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,527,941$ 1,196,515$ 2,724,456$
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 21 -
POSTEMPLOYMENT PRIVATE
BENEFITS PURPOSE
TRUST TRUST FUNDS
ASSETS
CASH AND SHORT-TERM INVESTMENTS -$ 86,850$
INVESTMENTS 3,136,620 -
TOTAL ASSETS 3,136,620 86,850
LIABILITIES - -
NET POSITION
RESTRICTED FOR:
POSTEMPLOYMENT BENEFITS 3,136,620 -
INDIVIDUALS AND OTHER ORGAIZATIONS - 86,850
TOTAL NET POSITION 3,136,620$ 86,850$
TOWN OF BREWSTER, MASSACHUSETTS
See accompanying notes to the basic financial statements
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2021
- 22 -
POSTEMPLOYMENT PRIVATE
BENEFITS PURPOSE
TRUST TRUST FUNDS
ADDITIONS:
CONTRIBUTIONS:
CONTRIBUTIONS -$ 4,124$
EMPLOYER CONTRIBUTIONS 250,000 -
EMPLOYER CONTRIBUTIONS TO PAY FOR OPEB BENEFITS 731,652 -
NET INVESTMENT INCOME (LOSS):
INVESTMENT INCOME 686,730 111
TOTAL ADDITIONS 1,668,382 4,235
DEDUCTIONS:
BENEFIT PAYMENTS 731,652 -
FUNDS DISTRIBUTED ON BEHALF OF OTHERS - 5,000
TOTAL DEDUCTIONS 731,652 5,000
NET INCREASE (DECREASE) IN FIDUCIARY NET POSITION 936,730 (765)
NET POSITION AT BEGINNING 2,199,890 87,615
NET POSITION AT END 3,136,620$ 86,850$
See accompanying notes to the basic financial statements
TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FISCAL YEAR ENDED JUNE 30, 2021
- 23 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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 Select Board (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 (4) 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 48.00% in the joint venture.
Name Purpose Address
Annual
Assessment
Nauset Regional To provide education services 78 Eldredge Parkway $ 11,599,042
School District Orleans, MA 02653
Cape Cod Regional
Technical High
School
To provide vocational education 351 Pleasant Lake Ave
Harwich, MA 02645
$ 857,387
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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). The Tri-Town Septage Facility,
has been decommissioned and the facility demolished. The three towns now share the cost of the health
insurance and the annual pension assessment for the retirees of the facility.
B. Government-Wide and Fund Financial Statements
Government-Wide Financial Statements
The government-wide financial statements (i.e., statement of net position and the statement of activities)
report information on all of the non-fiduciary activities of the primary government. Governmental
activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which are supported primarily by user fees and charges.
Fund Financial Statements
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though fiduciary funds are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements. Nonmajor funds are aggregated and displayed in a single column.
Major Fund Criteria
A fund is considered major if it is the primary operating fund of the Town or it meets the
following criteria:
a. If the total assets and deferred outflows of resources, liabilities and deferred inflows of
resources, revenues, or expenditures/expenses of an individual governmental or enterprise
fund are at least 10 percent of the corresponding element (total assets and deferred outflows
of resources, liabilities and deferred inflows of resources, etc.) for all funds of that category
or type (total governmental or total enterprise funds), and
b. If the total assets and deferred outflows of resources, liabilities and deferred inflows of
resources, revenues, or expenditures/expenses of the individual governmental fund or
enterprise fund are at least 5 percent of the corresponding element for all governmental and
enterprise funds combined.
Additionally, any other governmental or enterprise fund that management believes is particularly
significant to the basic financial statements may be reported as a major fund. Fiduciary funds are reported
by fund type.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 27 -
In applying the susceptible to accrual concept to intergovernmental revenues, there are essentially two
types of revenues. In one, moneys must be expended on the specific purpose or project before any
amounts will be paid to the Town; therefore, revenues are recognized based upon the expenditures
incurred. In the other, moneys are virtually unrestricted and are usually revocable only for failure to
comply with prescribed compliance requirements. These resources are reflected as revenues at the time of
receipt or earlier if the susceptible to accrual criteria are met.
The Town considers property taxes as available if they are due and collected within 60 days after fiscal
year-end. Licenses and permits, user charges, fines and forfeitures, and miscellaneous revenues are
recorded as revenues when received. Investment earnings are recorded as earned.
The Town reports the following major governmental funds:
The General fund is the primary operating fund of the Town. It is used to account for all financial
resources, except those that are required to be accounted for in another fund.
The Community Preservation fund is a special revenue fund used to account for the accumulation
of resources to purchase open space, assist in development of affordable housing, or preservation
of historic property under the guidelines of the Community Preservation Act of the Massachusetts
general laws.
The Nonmajor Governmental funds consist of other special revenue, capital projects and
permanent funds that are aggregated and presented in the nonmajor governmental funds column
on the governmental funds financial statements. The following describes the general use of these
fund types:
• The Special Revenue fund is used to account for the proceeds of specific revenue sources
(other than permanent funds or capital projects funds) that are restricted by law or
administrative action to expenditures for specified purposes.
• The Capital Projects fund is used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by enterprise
and trust funds).
• The Permanent fund is used to account for financial resources that are legally restricted to the
extent that only earnings, not principal, may be used for purposes that support the
governmental programs.
Proprietary Fund Financial Statements
Proprietary fund financial statements are reported using the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and
expenses are recorded when the liabilities are incurred.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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 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:
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 29 -
Level 1 – Quoted prices are available in active markets for identical instruments as of the reporting date.
Instruments, which are generally included in this category, include actively traded equity and debt
securities, U.S. government obligations, and mutual funds with quoted market prices in active markets.
Level 2 – Pricing inputs are other than quoted in active markets, which are either directly or indirectly
observable as of the reporting date, and fair value is determined through the use of models or other
valuation methodologies. Certain fixed income securities, primarily corporate bonds, are classified as
Level 2 because fair values are estimated using pricing models, matrix pricing, or discounted cash flows.
Level 3 – Pricing inputs are unobservable for the instrument and include situations where there is little, if
any, market activity for the instrument. The inputs into the determination of fair value require significant
management judgment or estimation. In some instances the inputs used to measure fair value may fall into
different levels of the fair value hierarchy and is based on the lowest level of input that is significant to
the fair value measurement. Market price is affected by a number of factors, including the type of
instrument and the characteristics specific to the instrument. Instruments with readily available active
quoted prices generally will have a higher degree of market price observability and a lesser degree of
judgment used in measuring fair value. It is reasonably possible that change in values of these instruments
will occur in the near term and that such changes could materially affect amounts reported in these
financial statements. For more information on the fair value of the Town’s financial instruments, see Note
3 – Fair Value Measurements.
F. Accounts Receivable
Government-Wide and Fund Financial Statements
The recognition of revenue related to accounts receivable reported in the government-wide financial
statements and proprietary and fiduciary funds financial statements are reported under the accrual basis of
accounting. The recognition of revenue related to accounts receivable reported in the governmental funds
financial statements are reported under the modified accrual basis of accounting.
Real Estate, Personal Property Taxes and Tax Liens
Real estate and personal property taxes are based on values assessed as of each January 1 and are
normally due on the subsequent November 1 and May 1. Property taxes that remain unpaid after the
respective due dates are subject to penalties and interest charges. By law, all taxable property in the
Commonwealth must be assessed at 100% of fair market value. Once levied, which is required to be at
least 30 days prior to the due date, these taxes are recorded as receivables in the fiscal year of levy.
Based on the Town’s experience, most property taxes are collected during the year in which they are
assessed. Liening of properties on which taxes remain unpaid occurs annually. The Town ultimately has
the right to foreclose on all properties where the taxes remain unpaid.
A statewide property tax limitation statute known as “Proposition 2 ½” limits the amount of increase in
property tax levy in any fiscal year. Generally, Proposition 2 ½ limits the total levy to an amount not
greater than 2 ½ % of the total assessed value of all taxable property within the Town. Secondly, the tax
levy cannot increase by more than 2 ½ % of the prior year’s levy plus the taxes on property newly added
to the tax rolls. Certain provisions of Proposition 2 ½ can be overridden by a Town-wide referendum.
Real estate receivables are secured via the tax lien process and are considered 100% collectible.
Accordingly, an allowance for uncollectibles is not reported.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 30 -
Personal property taxes cannot be secured through the lien process. The allowance of uncollectibles is
estimated based on historical trends and specific account analysis.
Motor Vehicle Excise
Motor vehicle excise taxes are assessed annually for each vehicle registered in the Town and are recorded
as receivables in the fiscal year of the levy. The Commonwealth is responsible for reporting the number
of vehicles registered and the fair values of those vehicles. The tax calculation is the fair value of the
vehicle multiplied by $25 per $1,000 of value.
The allowance for uncollectibles is estimated based on historical trends and specific account analysis.
Water
User fees are levied semi-annually based on meter readings and are subject to penalties if they are not
paid by the respective due date. Water liens are processed in December of every year and included as a
lien on the property owner's tax bill. Water charges and related liens are recorded as receivables in the
fiscal year of the levy.
Since the receivables are secured via the lien process, these accounts are considered 100% collectible and
therefore do not report an allowance for uncollectibles.
Special Assessments
Governmental activities special assessments consist primarily of Road Betterments, and Title V
receivables which are recorded as receivables in the fiscal year accrued. Since the receivables are secured
via the lien process, these assets are considered 100% collectable and therefore do not report an allowance
for uncollectibles.
Departmental and Other
Departmental and other receivables consist primarily of ambulance receivables and are recorded as
receivables in the fiscal year accrued. The allowance for uncollectibles for the ambulance receivables is
estimated based on historical trends and specific account analysis.
Intergovernmental
Various federal and state grants for operating and capital purposes are applied for and received annually.
For non-expenditure driven grants, receivables are recognized as soon as all eligibility requirements
imposed by the provider have been met. For expenditure driven grants, receivables are recognized when
the qualifying expenditures are incurred and all other grant requirements are met.
These receivables are considered 100% collectible and therefore do not report an allowance for
uncollectibles.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 32 -
I. Interfund Receivables and Payables
During the course of its operations, transactions occur between and within individual funds that may
result in amounts owed between funds.
Government-Wide Financial Statements
Transactions of a buyer/seller nature between and within governmental funds are eliminated from the
governmental activities in the statement of net position. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the statement of net position as
"internal balances".
Fund Financial Statements
Transactions of a buyer/seller nature between and within funds are not eliminated from the individual
fund statements. Receivables and payables resulting from these transactions are classified as "Due from
other funds" or "Due to other funds" on the balance sheet.
J. Interfund Transfers
During the course of its operations, resources are permanently reallocated between and within funds.
These transactions are reported as operating transfers in and operating transfers out.
Government-Wide Financial Statements
Operating transfers between and within governmental funds are eliminated from the governmental
activities in the statement of net position. Any residual balances outstanding between the governmental
activities and business-type activities are reported in the statement of activities as "Transfers, net".
Fund Financial Statements
Operating transfers between and within funds are not eliminated from the individual fund statements and
are reported as operating transfers in and operating transfers out.
K. Deferred Outflows/Inflows of Resources
Government-Wide Financial Statements (Net Position)
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense/ expenditure) until then. The Town reported deferred outflows of
resources related to postemployment benefits and pensions in this category.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 33 -
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until that time. The Town reported deferred inflows of resources related
to postemployment benefits and pensions in this category.
Governmental Fund Financial Statements
In addition to liabilities, the governmental funds balance sheet will sometimes report a separate section
for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents assets that have been recorded in the governmental fund financial statements but the
revenue is not available and so will not be recognized as an inflow of resources (revenue) until it becomes
available. The Town has recorded unavailable revenue as deferred inflows of resources in the
governmental funds balance sheet. Unavailable revenue is recognized as revenue in the conversion to the
government-wide (full accrual) financial statements.
L. Net Position and Fund Equity
Government-Wide Financial Statements (Net Position)
Net position are classified into three components:
a. Net investment in capital assets – consists of capital assets including restricted capital assets, net
of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages,
notes, or other borrowings that are attributable to the acquisition, construction, or improvement of
those assets.
b. Restricted net position – Consists of net position with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, or laws or regulations of other
governments; or (2) law through constitutional provisions or enabling legislation.
Net position have been “restricted” for the following:
• Permanent funds -expendable represents amounts held in trust for which the expenditures are
restricted by various trust agreements.
• Permanent funds -nonexpendable represents amounts held in trust for which only investment
earnings may be expended.
• Other specific purpose represents restrictions placed on assets from outside parties.
c. Unrestricted net position – All other net position that do not meet the definition of “restricted” or
“net investment in capital assets.”
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 34 -
Fund Financial Statements (Fund Balances)
The Town uses the following criteria for fund balance classification:
• For nonspendable fund balance: includes amounts that cannot be spent because they are either
(1) not in spendable form or (2) legally or contractually required to be maintained intact.
• For restricted fund balance: when constraints placed on the use of the resources are either (1)
externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments; or (2) imposed by law trough constitutional provisions or enabling legislation.
• For committed fund balance: (1) the government’s highest level of decision-making authority and
(2) the formal action that is required to be taken to establish (and modify or rescind) a fund
balance commitment.
• For assigned fund balance: (1) the body or official authorized to assign amounts to a specific
purpose and (2) the policy established by the governing body pursuant to which the authorization
is given.
• For unassigned fund balance: is the residual classification for the general fund. In other
governmental funds, if expenditures incurred for specific purposes exceeded the amounts
restricted, committed, or assigned to those purposes, it may be necessary to report a negative
unassigned fund balance.
The Town uses the following criteria for fund balance policies and procedures:
• When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available, the unrestricted amount will be considered to have been spent.
• When an expenditure is incurred for purposes for which committed, assigned, or unassigned fund
balance is available, and the least restricted amount will be considered to have been spent.
M. Long-term debt
Government-Wide and Proprietary Fund Financial Statements
Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net
position. Material bond premiums and discounts are deferred and amortized over the life of the bonds
using the effective interest method. Bonds payable are reported net of the applicable bond premium or
discount.
Governmental Fund Financial Statements
The face amount of governmental funds long-term debt is reported as other financing sources. Bond
premiums and discounts, as well as issuance costs, are recognized in the current period. Bond premiums
are reported as other financing sources and bond discounts are reported as other financing uses. Issuance
costs, whether or not withheld from the actual bond proceeds received, are reported as general
government expenditures.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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) and additions to/deductions from the Association’s fiduciary net position have been
determined on the same basis as they are reported by the Association. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with
the benefit terms. Investments are reported at fair value.
Q. Post Retirement Benefits
Government-Wide and Fund Financial Statements
In addition to providing pension benefits, health and life insurance coverage is provided for retired
employees and their survivors in accordance with Chapter 32B, of Massachusetts General Laws, under
various contributory plans. The cost of providing health and life insurance is recognized by recording the
employer's 50% share of insurance premiums in the general fund in the fiscal year paid. All benefits are
provided through third-party insurance carriers and health maintenance organizations that administer,
assume, and pay all claims.
R. Use of Estimates
Government-Wide and Fund Financial Statements
The preparation of the accompanying financial statements in conformity with accounting principles
generally accepted in the United States of America, requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could vary from estimates that were
used.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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 2021 approved budget authorized
$44,246,478 in current year appropriations and other amounts to be raised and $2,721,914 in carryover
articles carried over from previous fiscal years. Supplemental appropriations of $63,859 were approved
for fiscal year 2021.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 37 -
The Finance Director has the responsibility to ensure that budgetary controls are maintained and
monitored through the accounting system.
B. Budgetary – GAAP Reconciliation
For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of
accounting (established by the Commonwealth) is followed, which differs from the GAAP basis of
accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the fiscal
year ended June 30, 2021 is presented below:
C. Deficit Fund Balances
Several individual fund deficits exist within the special revenue and the governmental capital projects
funds. These individual deficits will be eliminated through subsequent fiscal year budget transfers, grants,
and/or proceeds from long-term debt during fiscal year 2022.
NOTE 3 – DEPOSITS AND INVESTMENTS
State and local statutes place certain limitations on the nature of deposits and investments available to the
Town. Deposits (including demand deposits, term deposits and certificates of deposit) in any one financial
institution may not exceed certain levels unless collateralized by the financial institutions involved.
Deposits
Custodial Credit Risk - Deposits
Custodial credit risk is the risk that in the event of bank failure, the Town’s deposits may not be
returned. Massachusetts General Law Chapter 44, Section 55, limits the deposits “in a bank or
trust company, or banking company to an amount not exceeding sixty percent (60%) of the
capital and surplus of such bank or trust company or banking company, unless satisfactory
security is given to it by such bank or trust company or banking company for such excess.”
The Town does not have a formal deposit policy for custodial credit risk.
Net change in fund balance - budgetary basis 348,702$
Basis of accounting differences:
Inc rease in revenue for on-behalf payments - MTRS 1,862,076
Increase in expenditures for on-behalf payments - MTRS (1,862,076)
Increase in revenue for the MWPAT subsidy 2,018
Increase in expenditures for the MWPAT subsidy (2,018)
Net Stabilization fund activity (244,262)
Adjustment for current year articles 2,042,002
Adjustment for current year encumbrances 287,232
Adjustment for expenditures from prior year encumbrances (115,290)
Net change in fund balance - GAAP basis 2,318,384$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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, 2021:
Total Bank Balances 25,494,337$
Bank Balances Covered by Deposit Insurance
Federal Deposit Insurance Corporation (FDIC)1,634,550
Depositor's Insurance Fund (DIF)15,344,859
Total Bank Balances Covered by Deposit Insurance 16,979,409
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 8,514,928
Total Bank Balances Subject to Custodial Credit Risk 8,514,928
Total Bank Balances 25,494,337$
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.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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 3,136,620$ N/A 3,136,620$
• Custodial Credit Risk
For an investment, this is the risk that, in the event of a failure by the counterparty, the Town will
not be able to recover the value of its investments or collateral security that are in possession of
an outside party. The investment in the State Retirees Benefit Trust Fund is not exposed to
custodial credit risk because the investment is registered in the name of the Town. The Town
does not have an investment policy for custodial credit risk.
• Interest Rate Risk
Interest rate risk is the risk of changes in market interest rates which will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the risk of
its fair value to change with the market interest rate. The Town does not have a formal investment
policy that limits investment maturities as a means of managing its exposure to fair value losses
arising from increasing interest rates.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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 3,136,620$ 3,136,620$
• Concentration of Credit Risk
The Town places no limit on the amount the government may invest in any one issuer. More than
5% of the Town’s investments are in the following securities:
Issuer
Percentage of
Total
Investments
State Retirees Benefits Trust Fund (SRBT) -
HCST OPEB Master Trust 100.00%
Fair Market Value of Investments
The Town holds investments that are measured at fair value on a recurring basis. Because investing is not
a core part of the Town’s mission, the Town determines that the disclosures related to these investments
only need to be disaggregated by the major type. The Town chooses a tabular format for disclosing the
levels within the fair value hierarchy.
The Town categorizes its fair value measurement within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the assets. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs
are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 41 -
The Town has the following recurring fair value measurement as of June 30, 2021:
Investment Type June 30, 2021
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)3,136,620
Investments measured at amortized cost
Massachusetts Municipal Depository Trust - (MMDT)3,626,571
Total Investments 6,763,191$
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, 2021 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 476,032$ (4,000)$ 472,032$
Tax liens 497,724 - 497,724
Motor vehicle and other excise taxes 188,099 (68,903) 119,196
Departmental and other 420,353 (58,076) 362,277
Intergovernmental 408,297 - 408,297
Special assessments 325,779 - 325,779
Total 2,316,284$ (130,979)$ 2,185,305$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 42 -
The receivables at June 30, 2021, 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 797,308$ -$ 797,308$
Special Assessments 5,293 - 5,293
Total 802,601$ -$ 802,601$
Nonmajor
General Community Governmental
Deferred Inflows:Fund Preservation Funds Total
Deferred Property Taxes 324,204$ 24,097$ 312,613$ 660,914$
Deferred Other Revenue 616,921 - 351,346 968,267
Total 941,125$ 24,097$ 663,959$ 1,629,181$
Deferred Inflows of Resources Analysis
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 43 -
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2021, was as follows:
Beginning Decrease/Ending
Governmental Activities:Balance Increases Adjustments Balance
Capital assets not being depreciated:
Land 42,192,861$ -$ -$ 42,192,861$
Construction in progress 3,709,131 91,560 (3,655,144) 145,547
Total capital assets not being depreciated 45,901,992 91,560 (3,655,144) 42,338,408
Capital assets being depreciated:
Building and improvements 41,675,228 121,370 - 41,796,598
Capital improvement (other than buildings)6,288,284 468,936 23,300 6,780,520
Machinery, equipment, and vehicles 14,229,188 809,145 26,950 15,065,283
Infrastructure 14,572,080 827,676 3,542,493 18,942,249
Total capital assets being depreciated 76,764,780 2,227,127 3,592,743 82,584,650
Less accumulated depreciation for:
Building and improvements (15,555,077) (988,723) - (16,543,800)
Capital improvement (other than buildings)(2,693,558) (414,576) - (3,108,134)
Machinery, equipment, and vehicles (10,052,275) (634,095) - (10,686,370)
Infrastructure (6,234,391) (356,216) - (6,590,607)
Total accumulated depreciation (34,535,301) (2,393,610) - (36,928,911)
Total capital assets being depreciated, net 42,229,479 (166,483) 3,592,743 45,655,739
Total governmental activities capital assets, net 88,131,471$ (74,923)$ (62,401)$ 87,994,147$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 44 -
Depreciation expense was charged to functions/programs of the primary government as follows:
General government 128,694$
Public safety 953,529
Education 518,255
Public works 543,574
Human services 13,643
Culture and recreation 235,915
Total depreciation expense - governmental activities 2,393,610$
Water 456,281$
Golf 432,309
Total depreciation expense - business-type activities 888,590$
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 581,224 53,100 (533,474) 100,850
Total capital assets not being depreciated 4,140,436 53,100 (533,474) 3,660,062
Capital assets being depreciated:
Buildings and improvements 5,707,991 23,050 - 5,731,041
Machinery, equipment, and vehicles 3,686,776 34,679 468,474 4,189,929
Infrastructure 25,947,876 - 65,000 26,012,876
Total capital assets being depreciated 35,342,643 57,729 533,474 35,933,846
Less accumulated depreciation for:
Buildings and improvements (1,674,643) (71,950) - (1,746,593)
Machinery, equipment, and vehicles (2,669,259) (196,352) - (2,865,611)
Infrastructure (13,097,495) (620,288) - (13,717,783)
Total accumulated depreciation (17,441,397) (888,590) - (18,329,987)
Total capital assets being depreciated, net 17,901,246 (830,861) 533,474 17,603,859
Total business-type activites capital assets, net 22,041,682$ (777,761)$ -$ 21,263,921$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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, 2021, are as follows:
Governmental
Activities
Assets:
Vehicles 1,205,000$
Machinery & Equipment 152,756
Less: Accumulated depreciation (328,240)
1,029,516$
Primary
Year Ending June 30 Government
2022 191,473$
2023 125,570
2024 125,570
2025 71,085
2026 71,085
2027 71,085
Total minimum lease payments 655,868
Less: amounts representing interest (45,540)
Present value of minimum lease payments 610,328$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 46 -
NOTE 7 – INTERFUND TRANSFERS
Interfund transfers for the fiscal year ended June 30, 2021, 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.
Community Nonmajor
General P reservation Governmental
Operating Transfers Out:Fund Fund Funds Total
Nonmajor Governmental Funds 1,215,599$ -$ -$ 1,215,599$ (1)
Golf Enterprise Fund 114,967 - - 114,967 (1)
General Fund - - 240,417 240,417 (2)
Water Enterprise Fund 130,026 - - 130,026 (1)
Nonmajor Governmental Funds 68,119 - - 68,119 (3)
Water Enterprise Fund - 70,000 - 70,000 (3)
Total 1,528,711$ 70,000$ 240,417$ 1,839,128$
Operating Transfers In:
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 47 -
The following is a summary of changes in short-term debt for the year ended June 30, 2021:
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, 2020
Renewed/
Issued
Retired/
Redeemed
Balance at
June 30, 2021
Governmental Funds
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) -
BAN Various Projects 0.43 4/1/2022 - 650,000 - 650,000
Total Governmental Funds 1,586,107 650,000 (1,586,107) 650,000
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 48 -
The following is a summary of the changes in long-term debt for the year ended June 30, 2021:
Bonds and Notes Payable Schedule -Governmental Funds
Project
Interest
Rate (%)
Outstanding at
June 30, 2020 Issued
Redeemed/
Refunded
Outstanding at
June 30, 2021
MWPAT Title V Septic Var 10,200$ -$ 10,200$ -$
MWPAT Title V Septic 3.59 40,000 - 10,000 30,000
Land Acquisition 3.64 60,000 - 60,000 -
Land Acquisition 4.49 225,000 - 45,000 180,000
Land Acquisition 4.49 560,000 - 80,000 480,000
Land Acquisition 3.84 360,000 - 35,000 325,000
Road Betterments 3.84 20,000 - 20,000 -
Road Betterments 3.84 5,000 - 5,000 -
Road Betterments 3.00 20,000 - 5,000 15,000
Road Betterments 3.00 20,000 - 5,000 15,000
Road Betterments 2.5 - 4.0 60,000 - 10,000 50,000
Road Betterments 2.5 - 4.0 80,000 - 10,000 70,000
School Renovations 2.5 - 4.0 2,320,000 - 145,000 2,175,000
Road Betterments 2.5 - 4.0 1,460,000 - 135,000 1,325,000
Fire Station 2.25 -5.00 5,525,000 - 325,000 5,200,000
Road Repairs 2.25 -5.00 1,770,000 - 160,000 1,610,000
Library Parking Lot 2.25 -5.00 220,000 - 20,000 200,000
Road Betterments 2.25 -5.00 165,000 - 15,000 150,000
Road Betterments 2.25 -5.00 55,000 - 5,000 50,000
Road Betterments 2.92 85,000 - 10,000 75,000
Fire Station 2.92 5,400,000 - 300,000 5,100,000
Town Septage 2.92 500,000 - 65,000 435,000
Total Bonds and Notes Payable 18,960,200 - 1,475,200 17,485,000
Add: Unamortized Bond Premium 575,121 - 77,393 497,728
Total 19,535,321$ -$ 1,552,593$ 17,982,728$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 49 -
The annual debt service requirements for principal and interest for Governmental bonds and notes
outstanding at June 30, 2021 are as follows:
Bonds and Notes Payable Schedule -Water and Golf Enterprise Funds
Fiscal Year Principal Interest Total
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 1,295,000 331,198 1,626,198
2027-2031 5,890,000 1,133,192 7,023,192
2032-2036 3,905,000 479,287 4,384,287
2037-2038 925,000 39,000 964,000
Total 17,485,000$ 3,907,435$ 21,392,435$
Project
Interest
Rate (%)
Outstanding at
June 30, 2020 Issued
Redeemed/
Refunded
Outstanding at
June 30, 2021
Water Betterments - Slough Rd 3.64 210,000$ -$ 35,000$ 175,000.00$
Water Betterments - Fiddler's Ln 4.49 10,000 - 5,000 5,000.00
Land Acquisition 3 - 3.50 450,000 - 35,000 415,000
Water Offices/Garage 3.96 975,000 - 125,000 850,000
Well #6 3 - 3.50 1,865,000 - 135,000 1,730,000
Well Access Road 2.5 - 4.0 150,000 - 25,000 125,000
Water 2.5 - 4.0 660,000 - 45,000 615,000
Total 4,320,000$ -$ 405,000$ 3,915,000$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 50 -
The annual debt service requirements for principal and interest for water and golf enterprise funds bonds
and notes outstanding at June 30, 2021 are as follows:
Loans Authorized and Unissued
As of June 30, 2021, the Town has loans authorized and unissued as follows:
Fiscal Year Principal Interest Total
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 390,000 209,560 599,560
2027-2031 1,255,000 48,000 1,303,000
2032-2036 680,000 72,614 752,614
Total 3,915,000$ 763,150$ 4,678,150$
Date
Description Authorized Amount
Road Repair & Resurfacing 5/5/2014 5,750,000$
Fire Station 11/16/2015 548,503
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
6,891,315$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 51 -
Changes in Long-term Liabilities
The following is a summary of changes in long-term liabilities for the year ended June 30, 2021:
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 18,960,200$ -$ (1,475,200)$ 17,485,000$ 1,380,000$
Add: Unamortized Premiums 575,121 - (77,393) 497,728 70,208
Total Bond Payable 19,535,321 - (1,552,593) 17,982,728 1,450,208
Landfill postclosure care costs 313,700 - (32,900) 280,800 39,244
Capital Leases 814,774 - (204,446) 610,328 176,040
Postemployment benefits 14,741,552 - (2,279,608) 12,461,944 -
Net pension liability 23,176,947 - (1,176,681) 22,000,266 -
Total governmental activities
long-term liabilities 58,582,294$ -$ (5,246,228)$ 53,336,066$ 1,665,492$
Beginning Ending Current
Business-Type Activities:Balance Additions Reductions Balance Portion
Postemployment benefits 1,809,283$ -$ (72,954)$ 1,736,329$ -$
Net Pension Liability 4,450,836 - (568,436) 3,882,400 -
Bonds and notes payable 4,320,000 - (405,000) 3,915,000 405,000
Total business-type activities
long-term liabilities 10,580,119$ -$ (1,046,390)$ 9,533,729$ 405,000$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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, 2021:
Total Long-Town's Town's
Term Debt Estimated Indirect
Agency Outstanding Share Debt
Nauset Regional School District 2,625,000$ 48.00% 1,260,000$
Cape Cod Regional Technical High School 62,730,000 6.55% 4,108,815$
Barnstable County 23,750,645 4.67% 1,109,155
89,105,645 6,477,970
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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 - - 2,280,295 2,280,295
Public Safety - - 2,641,957 2,641,957
Education - - 314,704 314,704
Public Works - - 918,323 918,323
Human Services - - 272,760 272,760
Culture & Recreration - - 515,653 515,653
Employee Benefits - - 97,830 97,830
Bond Premium 175,690 - - 175,690
Community Preservation - 3,736,952 - 3,736,952
Expendable Trust Funds - - 147,994 147,994
175,690 3,736,952 7,189,516 11,102,158
Committed To:
Continuing Appropriations
General Government 768,961 - - 768,961
Public Safety 545,988 - - 545,988
Education 353,419 - - 353,419
Public Works 341,830 - - 341,830
Human Services 7,518 - - 7,518
Culture & Recreation 24,286 - - 24,286
2,042,002 - - 2,042,002
Assigned To:
Encumbered For:
General Government 33,443 - - 33,443
Public Safety 47,363 - - 47,363
Education 134,021 - - 134,021
Public Works 24,855 - - 24,855
Human Services 1,550 - - 1,550
Employee Benefits 46,000 - - 46,000
Subsequent Years Expenditures 1,513,218 - - 1,513,218
Stabilization Fund - Capital Imp 500,168 - - 500,168
2,300,618 - - 2,300,618
Unassigned
General Fund 5,577,376 - - 5,577,376
General Stabilization Fund 2,990,811 - - 2,990,811
Nonmajor Governmental Funds - - (764,610) (764,610)
Nonmajor Capital Projects
Public Works - - (588,247) (588,247)
Human Services - - (48,305) (48,305)
8,568,187 - (1,401,162) 7,167,025
Total Governmental Fund Balances 13,086,497$ 3,736,952$ 5,938,742$ 22,762,191$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 54 -
NOTE 11 – STABILIZATION FUND
The Town has established two funds where the Town has set aside amounts for emergency and capital
needs. These funds consist 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 $2,990,811 as of June 30,
2021. The fund was established under chapter 40, sub-section 5B of the Massachusetts General
Law.
The Stabilization Capital Improvements fund is used to account for future capital projects for the
Town. Any interest shall be added to and become part of the fund. The Stabilization fund balance
is $500,168 as of June 30, 2021. 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 2021.
The Town is a member of the Cape Cod Municipal Health Group, (CCMHG) which is a Massachusetts
Municipal Joint Health Insurance purchase group formed pursuant to Massachusetts General Laws. 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.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 55 -
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.
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.
In 2014 the Group along with two other Massachusetts municipal joint purchase groups entered into a
reinsurance pooling agreement the Massachusetts Municipal Reinsurance Arrangement Series of Sentinel
Indemnity, LLC (MMRA). The first such reinsurance pooling agreement established in Massachusetts.
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 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.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 56 -
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 187
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, 2021 the Cape Cod Municipal Health Group had total assets of $80,561,805 total liabilities
of $13,782,679 (including $11,430,770 in estimated benefits obligations), and a total surplus of
$66,779,126.
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 2021, total Town premiums plus implicit costs for the retiree
medical program was $731,652. The Town also made a contribution to an OPEB Trust for $250,000 for a
total contribution during the measurement period of $981,652 to be reported on the financial statements
for the fiscal year ending June 30, 2021.
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 2021, the Town prefunded future OPEB liabilities totaling $250,000
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, 2021,
the balance of this fund totaled $3,136,620.
GASB Statement #75 – OPEB Employer Financial Reporting
Summary of Significant Accounting Policies – For purposes of measuring the net OPEB liability,
deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expenses,
information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s
fiduciary net position have been determined on the same basis as they are reported by the Plan. For this
purpose, the Plan recognizes benefit payments when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 57 -
Measurement Date - GASB #75 requires the net OPEB liability to be measured as of a date no earlier than
the end of the employer’s prior fiscal year and no later than the end of the employer’s current fiscal year,
consistently applied from period to period. Accordingly, the net OPEB liability was measured as of June
30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an
actuarial valuation as of June 30, 2020.
Plan Membership – The following table represents the Plan’s membership as June 30, 2020:
Active Members 191
Inactive members or beneficiaries currently receiving benefits 182
Total 373
Components of OPEB Liability – The following table represents the components of the Plan’s OPEB
liability as of June 30, 2021:
Total OPEB Liability 17,334,893$
Less: OPEB plan's fiduciary net position (3,136,620)
Net OPEB Liability 14,198,273$
The OPEB plan's fiduciary net position as a
percentage of the total OPEB liability 18.09%
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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, 2021 to be in accordance with GASB Statement
#75.
Valuation Date:June 30, 2020
Actuarial Cost Method:Entry Age Normal - Level Percentage Payroll
Asset-Valuation Method:Market value
Inflation:3.25%
Discount rate 7.00% as of June 30, 2021
Investment Rate of Return 7.00%
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: 2.50% for 1 year, then 6.75% decreasing by 0.25% each
year to an ultimate level of 4.5% per year
Medicare: 2.50 for 1 year, then 6.75% decreasing by 0.25% each
year to an ultimate level of 4.5% per year
Pre-Retirement Mortality:
Healthy non-teachers RP-2014 Blue Collar Employee Mortality Table projected
generationally with scale MP-2017
Healthy teachers PUB-2010 Teachers Employee head count weighted Mortality Table projected
generationally with scale MP-2020
Post-Retirement Mortality:
Healthy non-teachers RP-2014 Blue Collar Healthy Annuitant Mortaity Table projected
generationally with scale MP-2017
Healthy teachers PUB-2010 Teachers healthy retiree head count weighted Mortality Table
projected generationally with Scale MP-2020.
Disabled non-teachers RP-2014 Blue Collar Healthy Annuitant Mortality Table set forward
one year projected generationally with scale MP-2017
Disabled teachers PUB-2010 Teachers healthy retiree head count weighted Mortality Table
and projected generationally with Scale mp-2020
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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, 2021 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 22.00%6.28%
International developed markets equity 12.00%7.00%
International emerging markets equity 5.00%8.82%
Core fixed income 15.00%0.38%
High- yield fixed income 8.00%2.97%
Real Estate 10.00%3.50%
Commodities 4.00%3.45%
Hedge fund, GTAA, Risk parity 10.00%2.35%
Private equity 14.00%10.11%
Total 100.00%
Asset Class
Discount Rate – The discount rate used to measure the total OPEB liability was 7.00% as of June 30,
2021. 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.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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, 2020 18,750,725$ 2,199,890$ 16,550,835$
Charges for the year:
Service cost 533,728 - 533,728
Interest 1,372,066 - 1,372,066
Difference between expected and actual experience (999,626) - (999,626)
Changes in assumptions (1,590,348) - (1,590,348)
Net Investment Income - 686,730 (686,730)
Employer Contributions - 981,652 (981,652)
Benefit payments, including refunds of member contributions (731,652) (731,652) -
Net Changes (1,415,832) 936,730 (2,352,562)
Balance at June 30, 2021 17,334,893$ 3,136,620$ 14,198,273$
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 7.00% as well as what the net OPEB
liability would be if it were calculated using a discount rate that is 1 percentage- point lower (6.00%) or 1
percentage-point higher (8.00%) than the current rate.
Current
1% Decrease Discount Rate 1% Increase
(6.00%)(7.00%)(8.00%)
Net OPEB liability 16,434,109$ 14,198,273$ 12,342,876$
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 12,009,901$ 14,198,273$ 16,894,885$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 61 -
At June 30, 2021 the Town reported deferred outflows of resources and deferred inflows of resources
related to other postemployment benefits of $281,403 and $5,936,828.
The balances of the deferred outflows and inflows as of June 30, 2021 consist of the following:
Deferred Deferred
Outflows Inflows
of Resources of Resources Total
Difference between expected and actual experience 281,403$ (833,020)$ (551,617)$
Changes of assumptions - (4,763,546) (4,763,546)
Net difference between projected and actual earnings - (340,262) (340,262)
Total Deferred Outflows (Inflows) of Resources 281,403$ (5,936,828)$ (5,655,425)$
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
2022 (1,987,493)$
2023 (1,985,626)
2024 (614,234)
2025 (636,410)
2026 (431,662)
Deferred Inflows/Outflows Recognized in
Future Years (5,655,425)$
Changes of Assumption – The Discount Rate and Investment Rate of Return had decreased from 7.25% to
7.00%
Changes in Plan Provisions – None
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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, 2020. The
Town’s portion of the collective pension expense, contributed by the Commonwealth, of $1,862,076 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
$15,075,789 as of the measurement date.
The “Association” and the MTRS are contributory defined benefit plans and membership in both the
“Association” and the MTRS is mandatory upon commencement of employment for all permanent, full-
time employees.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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, 2021 which was $2,606,211 and 21.87% of covered payroll, actuarially determined as an amount
that when combined with plan member contributions, is expected to finance the costs of benefits earned
by plan members during the year, with an additional amount to finance any unfunded accrued liability.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 64 -
D. Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
Pension Liabilities
At June 30, 2021 the Town reported a liability of $25,882,666 for its proportionate share of the net
pension liability. The net pension liability was measured as of December 31, 2020 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 forward the total pension liability to the
measurement date. The Town’s proportion of the net pension liability was based on a projection of the
Town’s long-term share of contributions to the pension plan relative to the projected contributions of all
participating members actuarially determined. At December 31, 2020, the Town’s proportion was 3.51%
which was a slight decrease from the last measurement.
Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2021 the Town recognized pension expense of $2,737,332. At June 30, 2021
the Town reported deferred outflows and inflows of resources related to pensions of $3,274,844 and
$3,471,481 respectively.
The balances of deferred outflows and inflows as June 30, 2021 consist of the following:
Deferred Deferred
Outflows Inflows
of Resources of Resources Total
Difference between expected and actual experience -$ (141,706)$ (141,706)$
Changes of Assumption 2,276,335 - 2,276,335
Net difference between projected and actual investment
earnings on pension plan investments - (3,020,159) (3,020,159)
Contributions and proportionate share of contributions 998,509 (309,616) 688,893
Total Deferred Outflows (Inflows) of Resources 3,274,844$ (3,471,481)$ (196,637)$
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
2022 55,503$
2023 600,950
2024 (795,492)
2025 (141,531)
2026 83,933
Deferred Inflows/Outflows Recognized in
Future Years (196,637)$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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
forward to December 31, 2020:
Valuation date……………………………… January 1, 2020
Actuarial cost method……………………… Entry Age Actuarial Cost Method.
Amortization method……………………… Appropriations increase at 5.28% per year through fiscal
2034 with a smaller payment in fiscal 2035
Projected salary increases…………………..3.25%
Investment Rate of Return/Discount Rate…..7.15%
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.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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 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 adding expected inflation. 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 22.00%6.28%
International developed markets equity 12.00%7.00%
International emerging markets equity 5.00%8.82%
Core fixed income 15.00%0.38%
High-yield fixed income 8.00%2.97%
Real estate 10.00%3.50%
Timber 4.00%3.45%
Hedge fund, GTAA, Risk parity 10.00%2.35%
Private equity 14.00%10.11%
Total 100.00%
For the year ended December 31, 2020 the annual money weighted rate of return on pension Plan
Investments, Net of Pension Plan Investment expense was 12.20%. The money weighted rate of return
expenses investment performance, net of the investment expense, adjusted for the changing amounts
actually invested, measured monthly.
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 rates. Based on those assumptions, the plan fiduciary net position (FNP) 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, as of December 31, 2020.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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 35,007,154$ 25,882,666$ 18,215,490$
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. Although the grant programs have been
audited in accordance with the provisions of the Single Audit Act Amendments of 1996 through June 30,
2021, these programs are still subject to financial and compliance audits. The amount, if any, 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 ten years (10 years remaining), and the
estimated liability has been recorded in the Statement of Net Position, Governmental Activities. The
$280,800 reported as landfill postclosure liability at June 30, 2021 is based on what it would cost to
perform all post-closure care at June 30, 2021. 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, 2021, cannot be ascertained, management believes any resulting liability should not materially affect
the financial position at June 30, 2021.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
- 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
Beginning net position of the governmental activities and the nonmajor governmental funds has been
revised to reflect the implementation of GASB Statement #84. The revised balances are summarized in
the table shown below:
6/30/2020 Implementation
Previously of GASB 6/30/2020
Reported Statements #84 Revised
Balances Fiduciary Funds Balances
Government-Wide Financial Statements
Governmental activities 47,377,429$ 81,406$ 47,458,835$
Governmental Funds
Nonmajor governmental funds 5,047,632$ 81,406$ 5,129,038$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
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NOTE 18 – IMPLEMENTATION OF NEW GASB PRONOUNCMENTS
During fiscal year 2021, the following GASB pronouncements were implemented:
The GASB issued Statement #84, Fiduciary Activities, was implemented in 2021. 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 2021. 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 2022. 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 2022. 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 in
2023. 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.
The GASB issued Statement #94, Public-Private and Public Partnerships and Availability Payment
Arrangements, which is required to be implemented in 2023. Management’s current assessment is that
this pronouncement will not have a significant impact on the Basic Financial Statements.
The GASB issued Statement #96, Subscription-Based Information Technology Arrangements, which is
required to be implemented in 2023. Management’s current assessment is that this pronouncement will
not have a significant impact on the Basic Financial Statements.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2021
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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.
The GASB issued Statements #98, The Annual Comprehensive Financial Report
The requirements of this Statement are effective for fiscal years ending after December 15, 2021.
Management’s current assessment is that this pronouncement will not have a significant impact on the
Basic Financial Statements.
TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
BARNSTABLE COUNTY RETIREMENT ASSOCIATION
JUNE 30, 2021
Schedule of the Town’s Proportionate Share of the Net Pension Liability
December 31, 2020 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 3.51%3.68%3.72%3.68%3.47%3.60%3.62%
Town's proportionate share of the net pension liability 25,882,666$ 27,627,783$ 29,398,461$ 25,055,361$ 24,381,943$ 22,672,955$ 20,436,149$
Town's covered-employee payroll 11,919,076$ 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 217.15%246.21%268.29%240.94%250.45%228.95%215.24%
Plan fiduciary net position as a percentage of the total
pension liability 66.82%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
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
BARNSTABLE COUNTY RETIREMENT ASSOCIATION
JUNE 30, 2021
December 31 ,2020 December 31 ,2019 December 31 ,2018 December 31 ,2017 December 31 ,2016 December 31 ,2015 December 31 ,2014
Actuarily determined contribution 2,606,211$ 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 (2,606,211) (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 11,919,076$ 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 21.87%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
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
MASSACHUSETTS TEACHERS RETIREMENT SYSTEM
JUNE 30, 2021
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
2021 15,075,789$ 1,862,076$ 50.67%
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.
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2021
Schedule of the Town’s Net OPEB Liability and Related Ratios
June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Total OPEB Liability
Service Cost 533,728$ 542,478$ 1,010,441$ 1,032,989$ 1,200,462$
Interest 1,372,066 1,335,290 920,650 857,050 686,109
Differences between expected and actual experience (999,626) -1,117,981 844,215 -
Changes of assumptions (1,590,348) (606,679) (1,273,555) (6,891,871) (2,577,803)
Benefit Payments (731,652) (791,361) (707,276) (554,673) (530,788)
Net Change in total OPEB liability (1,415,832) 479,728 1,068,241 (4,712,290) (1,222,020)
Total OPEB liability-beginning 18,750,725 18,270,997 17,202,756 21,915,046 23,137,066
Total OPEB liability-ending (a)17,334,893 18,750,725 18,270,997 17,202,756 21,915,046
Plan fiduciary net position
Contributions-employer 981,652 991,361 807,276 609,673 605,788
Net investment income 686,730 38,566 106,780 125,456 199,756
Benefit payments (731,652) (791,361) (707,276) (554,673) (530,788)
Net change in plan fiduciary net position 936,730 238,566 206,780 180,456 274,756
Plan fiduciary net position - beginning 2,199,890 1,961,324 1,754,544 1,574,088 1,299,332
Plan fiduciary net position - ending (b)3,136,620 2,199,890 1,961,324 1,754,544 1,574,088
Town's net OPEB liability-ending (a)-(b)14,198,273$ 16,550,835$ 16,309,673$ 15,448,212$ 20,340,958$
Plan fiduciary net position as a percentage of
total OPEB liability 18.09%11.73%10.73%10.20%7.18%
Covered-employee payroll 17,245,477 N/A 16,171,858 N/A 15,756,605
Plan's net OPEB liability as a percentage of
covered-employee payroll 82.33%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.
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2021
June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Acuarially determined contribution 1,470,762$ 1,502,340$ 1,455,051$ 1,143,921$ 1,105,238$
Contributions in relation to the actuarially
determined contribution (981,652) (991,360) (807,276) (609,673) (605,788)
Contribution deficiency (excess)489,110$ 510,980$ 647,775$ 534,248$ 499,450$
Covered-employee payroll 17,245,477$ N/A 16,171,858$ N/A 15,756,605$
Contributions as a percentage of covered-
employee payroll 5.69%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.
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2021
June 30, 2021 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 N/A 5.44%
Schedule of Investment Return
Note: This schedule is intended to present information for 10 years. Until a 10-year trend is
compiled, information is presented for those years for which information is available.
See notes to required supplementary information.
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TOWN OF BREWSTER
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
Pension Plan Schedules
A.Schedule of the Town’s Proportionate Share of the Net Pension Liability
The Schedule of Town’s Proportionate Share of the Net Pension Liability details the allocated percentage
of the net pension liability; the proportionate share of the net pension liability, and the covered employee
payroll. It also demonstrates the net position as a percentage of the pension liability and the net pension
liability as a percentage of covered payroll.
B.Schedule of Town’s Contribution
Governmental employees are required to pay an annual appropriation as established by PERAC. The
appropriation includes the amounts to pay the pension portion of each member’s retirement allowance, an
amount to amortize the actuarially determined unfunded liability to zero in accordance with the System’s
funding schedule, and additional appropriations in accordance with adopted early retirement incentive
programs. The appropriations are payable on July 1, and January 1. The Town may choose to pay the
entire appropriation in July at a discounted rate. Accordingly, actual contributions may be less than the
“total appropriation”. The pension fund appropriation is allocated to the Town based on covered payroll.
C. Schedule of the Commonwealth’s Collective amounts of the Net Pension Liability
The Commonwealth of Massachusetts is a nonemployer contributor and is required by statute to make all
actuarially determined employer contributions on behalf of the member employers which creates a special
funding situation. Since the Town does not contribute directly to MTRS, there is no net pension liability
to recognize. This schedule discloses the Commonwealth’s 100% share of the collective net pension
liability that is associated with the Town; the portion of the collective pension expense as both a revenue
and pension expense recognized by the Town; and the Plan’s fiduciary net position as a percentage of the
total pension liability.
D.Changes in Plan Provisions – None
Other Postemployment Benefits Schedules
A.Schedule of the Town’s Net OPEB Liability and Related Ratios
The Schedule of the Town’s Net OPEB Liability and Related Ratios presents multi-year trend information
on changes in the plan’s total OPEB liability, changes in the plan’s net position, and ending net OPEB
liability. It also demonstrates the plan’s net position as a percentage of the total liability and the plan’s net
OPEB liability as a percentage of covered-employee payroll.
B.Schedule of the Town’s Contribution
The Schedule of the Town’s contributions includes the Town’s annual required contribution to the plan,
along with the contribution made in relation to the actuarially determined contribution. The Town is not
required to fully fund this contribution.
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TOWN OF BREWSTER
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
C.Schedule of Investment Return
The Schedule of Investment Return includes the money-weighted investment return on the Plan’s other
postemployment assets, net of investment expense.
D.Changes in Provisions - None
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