HomeMy Public PortalAboutReport on the Examination of Basic Financial Statements
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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 – 71
Required Supplementary Information:
Barnstable County Retirement Association Schedules:
Schedule of Town’s Proportionate Share of the Net Pension Liability
72
Schedule of Town’s Contribution 73
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
TABLE OF CONTENTS PAGE
Massachusetts Teachers Retirement System Schedule:
Schedule of the Commonwealth’s Collective amounts of the Net Pension
Liability
74
Other Postemployment Benefit Plan Schedules:
Schedule of the Town’s Net OPEB Liability and Related Ratios 75
Schedule of the Town’s Contribution 76
Schedule of Investment Return 77
Notes to Required Supplementary Information 78 - 79
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
Opinions
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, 2022, 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.
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, 2022, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the Town of Brewster, Massachusetts, and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting
principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in
the aggregate, that raise substantial doubt about the Town of Brewster, Massachusetts’s ability to continue as a going concern
for twelve months beyond the financial statement date, including any currently known information that may raise substantial
doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance
is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is
a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements.
•Obtain an understanding of internal control relevant to the audit 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 Town of Brewster,
Massachusetts’s internal control. Accordingly, no such opinion is expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluate the overall presentation of the financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial
doubt about the Town of Brewster, Massachusetts’s ability to continue as a going concern for a reasonable period of
time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and
analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of
the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Certified Public Accountant
January 11, 2023
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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, 2022.
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 $77.36 million (net position).
•The unrestricted negative net position of the Town’s governmental activities are -$30.01 million. The
unrestricted positive net position of the Town’s business-type activities are $1.26 million.
•The government’s total net position increased by $7.65 million from fiscal 2021. Within this total, net
position of governmental activities increased by $5.88 million from fiscal 2021. Also, net position of
business-type activities increased by $1.77 million from 2021.
•At June 30, 2022, the Town’s governmental funds had combined ending fund balances of $20.46 million.
The combined governmental funds balance decreased by -$2,301,892 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 2022. The unassigned
fund balance for the general fund was $8.6 million or 17.4% of total general fund expenditures.
•The total cost of all Town services for fiscal 2022 was $54.32 million, $48.95 million of which was for
governmental activities, and $5.37 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.
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.
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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 $77,355,941 at the close of fiscal year 2022. 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 $90,263,303, or
116.69% 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 $15,837,498 (20.47% of total) represents resources that are
subject to external restrictions on how they may be used. The remaining balance of unrestricted net position is
($28,744,860) or -37.16% of total.
The Town increased its total liabilities by $18,447,181 as compared to fiscal 2021, and total net position increased
by $7.65 million or 10.98%. Net position of governmental activities increased by $5,877,656, a 10.93% increase
from fiscal 2021. Net position of business-type activities increased by $1,775,813 or 11.16% from 2021. There
was an increase of $384,433 in net position reported in connection with the water business-type activity, and an
increase of $1,391,380 in net position in connection with the golf department business-type activity, respectively.
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Increase Increase Increase
FY 2022 FY 2021 (Decrease)FY 2022 FY 2021 (Decrease)FY 2022 FY 2021 (Decrease)
Assets:
Current assets 27,496,276$ 26,994,288$ 501,988$ 6,823,918$ 5,165,550$ 1,658,368$ 34,320,194$ 32,159,838$ 2,160,356$
Noncurrent assets (excluding capital)193,943 259,040 (65,097) 299 3,394 (3,095) 194,242 262,434 (68,192)
Capital assets 113,651,912 87,994,147 25,657,765 20,734,281 21,263,921 (529,640) 134,386,193 109,258,068 25,128,125
Total assets 141,342,131 115,247,475 26,094,656 27,558,498 26,432,865 1,125,633 168,900,629 141,680,340 27,220,289
Deferred Outflow of Resources:3,623,068 3,030,607 592,461 495,934 525,640 (29,706) 4,119,002 3,556,247 562,755
Liabilities:
Current liabilities (excluding debt)2,282,992 2,382,036 (99,044) 167,833 263,219 (95,386) 2,450,825 2,645,255 (194,430)
Noncurrent liabilities (excluding debt)32,199,136 34,703,766 (2,504,630) 4,400,963 5,618,729 (1,217,766) 36,600,099 40,322,495 (3,722,396)
Current debt 5,963,936 2,276,248 3,687,688 1,161,000 405,000 756,000 7,124,936 2,681,248 4,443,688
Noncurrent debt 35,102,127 16,966,808 18,135,319 3,295,000 3,510,000 (215,000) 38,397,127 20,476,808 17,920,319
Total liabilities 75,548,191 56,328,858 19,219,333 9,024,796 9,796,948 (772,152) 84,572,987 66,125,806 18,447,181
Deferred Inflows of Resources:9,751,691 8,161,563 1,590,128 1,339,012 1,246,746 92,266 11,090,703 9,408,309 1,682,394
Net Position:
Net investment in capital assets 73,833,698 69,960,078 3,873,620 16,429,605 17,348,921 (919,316) 90,263,303 87,308,999 2,954,304
Restricted 15,837,498 14,820,801 1,016,697 - - - 15,837,498 14,820,801 1,016,697
Unrestricted (30,005,879) (30,993,218) 987,339 1,261,019 (1,434,110) 2,695,129 (28,744,860) (32,427,328) 3,682,468
Total net position 59,665,317$ 53,787,661$ 5,877,656$ 17,690,624$ 15,914,811$ 1,775,813$ 77,355,941$ 69,702,472$ 7,653,469$
Revenues
Program Revenues:
Charges for services 3,747,590$ 3,901,614$ (154,024)$ 8,121,356$ 7,521,954$ 599,402$ 11,868,946$ 11,423,568$ 445,378$
Operating grants and contributions 4,856,929 6,729,568 (1,872,639) 78,577 79,217 (640) 4,935,506 6,808,785 (1,873,279)
Capital grants and contributions 248,574 774,186 (525,612) - - - 248,574 774,186 (525,612)
General Revenues:
Real Estate and personal property taxes 37,765,003 36,346,103 1,418,900 - - - 37,765,003 36,346,103 1,418,900
Tax Liens 35,914 13,146 22,768 - - - 35,914 13,146 22,768
Motor vehicle and other excise taxes 1,749,095 1,722,856 26,239 - - - 1,749,095 1,722,856 26,239
Hotel/Motel Tax and Meals Tax 3,049,603 2,262,385 787,218 - - - 3,049,603 2,262,385 787,218
Penalties and interest on taxes 145,159 110,261 34,898 - - - 145,159 110,261 34,898
Payments in Lieu of Taxes 6,859 6,883 (24) - - - 6,859 6,883 (24)
Nonrestricted grants and contributions 2,622,433 2,213,764 408,669 - - - 2,622,433 2,213,764 408,669
Unrestricted investment income 21,952 27,416 (5,464) - - - 21,952 27,416 (5,464)
Bond Premium 16,454 - 16,454 - - - 16,454 - 16,454
Other revenues 32,106 48,929 (16,823) - - - 32,106 48,929 (16,823)
Total Revenues 54,297,671 54,157,111 140,560 8,199,933 7,601,171 598,762 62,497,604 61,758,282 739,322
Expenses:
General Government 6,007,213 6,018,917 (11,704) - - - 6,007,213 6,018,917 (11,704)
Public Safety 8,185,123 7,521,175 663,948 - - - 8,185,123 7,521,175 663,948
Education 22,456,196 21,384,051 1,072,145 - - - 22,456,196 21,384,051 1,072,145
Public Works 2,975,590 2,647,621 327,969 - - - 2,975,590 2,647,621 327,969
Human Services 985,042 876,708 108,334 - - - 985,042 876,708 108,334
Culture and Recreation 1,292,431 1,330,301 (37,870) - - - 1,292,431 1,330,301 (37,870)
Employee Benefits 5,689,020 7,186,486 (1,497,466) - - - 5,689,020 7,186,486 (1,497,466)
State and County Assessments 643,674 621,789 21,885 - - - 643,674 621,789 21,885
Interest 715,052 556,230 158,822 - - - 715,052 556,230 158,822
Golf - - - 3,317,875 3,393,440 (75,565) 3,317,875 3,393,440 (75,565)
Water - - - 2,049,929 2,610,413 (560,484) 2,049,929 2,610,413 (560,484)
Total Expenses 48,949,341 48,143,278 806,063 5,367,804 6,003,853 (636,049) 54,317,145 54,147,131 170,014
Increase/(Decrease) in Net Position before contributions
to permanent endowments and transfers 5,348,330 6,013,833 (665,503) 2,832,129 1,597,318 1,234,811 8,180,459 7,611,151 569,308
Transfers 529,326 314,993 214,333 (529,326) (314,993) (214,333) - - -
Change in Net Position 5,877,656 6,328,826 (451,170) 2,302,803 1,282,325 1,020,478 8,180,459 7,611,151 569,308
Prior Period Adjustment - Enterprise - - - (526,990) - (526,990) (526,990) - (526,990)
Prior Period Adjustment - Agency - 81,406 (81,406) - - - - 81,406 (81,406)
Net Position - beginning 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
Net Position - ending 59,665,317$ 53,787,661$ 5,877,656$ 17,690,624$ 15,914,811$ 1,775,813$ 77,355,941$ 69,702,472$ 7,653,469$
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
$20,460,299 a -$2,301,892 decrease from the prior year’s ending fund balance.
The general fund is the primary operating fund. At the end of the current fiscal year, unassigned fund balance of
the general fund was $8,607,070, while total fund balance stood at $13,075,157. As a measure of the general
fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 17.39% of total general fund expenditures, while total fund
balance represents 26.43% of that same amount.
The stabilization fund has accumulated a fund balance of $3,000,409 which represents 6.06% of general fund
expenditures. The funds can be used for general or capital purposes upon Town Meeting approval.
General Fund Budget Highlights
During the fiscal year the operating budget was amended by $1,471,215 (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 $44.47 million in revenues
and $52.75 million in expenditures, drawing on transfers and prior year’s surplus to finance the difference. At
year end, actual revenues exceeded estimates by $2,699,077 and $933,069 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, 2022, amounts to $134,386,193 net of accumulated depreciation. The investment in capital assets
includes land, buildings and improvements, capital improvements (other than buildings), machinery, equipment
and vehicles, infrastructure, and construction in progress.
The governmental activities capital assets (net of accumulated depreciation) were increased by $25,657,765
during the current fiscal year while the business-type activities capital assets (net of accumulated depreciation)
decreased by -$-409,651. Total depreciation was $3,515,954, resulting in a total government-wide increase to
capital assets (net of accumulated depreciation) of $25,248,114.
Increase Increase
FY 2022 FY 2021 (Decrease)FY 2022 FY 2021 (Decrease)FY 2022 FY 2021
Land 68,562,861$ 42,192,861$ 26,370,000$ 3,559,212$ 3,559,212$ -$ 72,122,073$ 45,752,073$
Construction in Progress 556,137 145,547 410,590 434,726 100,850 333,876 990,863 246,397
69,118,998 42,338,408 26,780,590 3,993,938 3,660,062 333,876 73,112,936 45,998,470
Buildings and improvements 24,365,000 25,252,798 (887,798) 3,329,066 3,475,962 (146,896) 27,694,066 28,728,760
Improvements (other than buildings)3,447,464 3,672,386 (224,922) - - - 3,447,464 3,672,386
Machinery, Equipment, and Vehicles 4,266,777 4,378,913 (112,136) 1,611,628 1,712,818 (101,190) 5,878,405 6,091,731
Infrastructure 12,453,673 12,351,642 102,031 11,799,649 12,295,090 (495,441) 24,253,322 24,646,732
44,532,914 45,655,739 (1,122,825) 16,740,343 17,483,870 (743,527) 61,273,257 63,139,609
Total Capital Assets 113,651,912$ 87,994,147$ 25,657,765$ 20,734,281$ 21,143,932$ (409,651)$ 134,386,193$ 109,138,079$
Activities Activities Government
Capital Assets
(Net of Depreciation)
Total
Governmental Business-type Primary
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Long Term Debt - The Town’s debt burden is reasonable in relation to other communities its size. Outstanding
long-term debt, as of June 30, 2022 totaled $39,425,000. Within this total, business-type activities have debt of
$3,510,000 that is fully supported by their respective program revenues, and governmental activities debt is
$35,915,000. Total debt consists of the following:
Outstanding Outstanding
Governmental Activities June 30, 2022 June 30, 2021
Road Betterments - Prell Circle 10,000$ 15,000$
Road Betterments - Allen Drive 10,000 15,000
Ebeneezer Lane Road Bett 40,000 50,000
S.Pond DR/Captain Fitz Rd 60,000 70,000
School Renovations 2,030,000 2,175,000
Road Repairs 1,190,000 1,325,000
MWPAT Title V 20,000 30,000
Punkhorn Land Acquisition - 6/30/11 290,000 325,000
Land Purchase 535,000 660,000
Fire Station - 5/3/17 4,875,000 5,200,000
Road Repairs - 5/3/17 1,450,000 1,610,000
Library Parking Lot - 5/3/17 180,000 200,000
Tower Hill Circle - RD Bett - 5/3/17 135,000 150,000
Moss/Commons - RD Bett - 5/3/17 45,000 50,000
Public Way - 3/15/18 65,000 75,000
Fire Building - 3/15/18 4,800,000 5,100,000
TriTown Septage - 3/15/18 370,000 435,000
Land Purchase 19,810,000 -
Total Governmental Activities 35,915,000$ 17,485,000$
Outstanding Outstanding
Business-type Activities June 30, 2022 June 30, 2021
Land Purchase - Copelas 380,000$ 415,000$
Well Access Road 100,000 125,000
Water 570,000 615,000
WELL #6 & WATER MAIN - 1,595,000 1,730,000
Water offices/garage 725,000 850,000
Slough Road 140,000 175,000
Water Betterments - Fiddler's Lane - 5,000
Total Business-type Activities 3,510,000$ 3,915,000$
Grand Total - All long-term debt 39,425,000$ 21,400,000$
Outstanding Debt at Year End
Please refer to Notes 5 and 10 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 2023
budget and tax rates including the following:
• The Fiscal 2023 tax rate was set at $6.99, a $.86 cent decrease over Fiscal 2022. The excess levy capacity
was $344,571.
• The Select Board voted during their classification hearing to maintain the same tax rate for all classes of
property.
• Fiscal 2023 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, $250,000 in Fiscal 2021, and $300,000 in Fiscal
2022. The June 30, 2022 balance in this fund is $3,294,393.
• The June 30, 2022 balance in the Stabilization Fund is $3,000,409. In addition, the Town has a balance of
$727,471 in the Capital Stabilization Fund.
Request for Information
This financial report is designed to provide a general overview of the Town of Brewster’s finances for all those
with an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Finance Director, 2198 Main
Street, Brewster, MA 02631.
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 26,198,491$ 5,666,395$ 31,864,886$
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 348,710 - 348,710
TAX LIENS 455,277 - 455,277
MOTOR VEHICLE EXCISE TAXES 135,468 - 135,468
USER FEES - 1,155,624 1,155,624
DEPARTMENTAL AND OTHER 254,660 - 254,660
INTERGOVERNMENTAL 36,931 - 36,931
SPECIAL ASSESSMENTS 66,739 1,899 68,638
NONCURRENT:
RECEIVABLES:
SPECIAL ASSESSMENTS 193,943 299 194,242
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 113,651,912 20,734,281 134,386,193
TOTAL ASSETS 141,342,131 27,558,498 168,900,629
DEFERRED OUTFLOWS OF RESOURCES
RELATED TO PENSIONS 2,989,619 407,675 3,397,294
RELATED TO POST EMPLOYMENT BENEFITS 633,449 88,259 721,708
TOTAL DEFERRED OUTFLOWS OF RESOURCES 3,623,068 495,934 4,119,002
LIABILITIES
CURRENT:
1,903,724 154,355 2,058,079
10,471 - 10,471
340,063 13,478 353,541
28,734 - 28,734
114,431 111,000 225,431
ACCOUNTS PAYABLE
OTHER LIABILITIES
ACCRUED INTEREST
LANDFILL POSTCLOSURE CARE COSTS
LEASES
BONDS AND NOTES PAYABLE 5,849,505 1,050,000 6,899,505
NONCURRENT:
224,166 - 224,166
13,731,615 1,913,233 15,644,848
18,243,355 2,487,730 20,731,085
319,856 185,000 504,856
LANDFILL POSTCLOSURE CARE COSTS
POSTEMPLOYMENT BENEFITS
NET PENSION LIABILITY
LEASES
BONDS AND NOTES PAYABLE 34,782,271 3,110,000 37,892,271
TOTAL LIABILITIES 75,548,191 9,024,796 84,572,987
DEFERRED INFLOWS OF RESOURCES
RELATED TO PENSIONS 6,638,557 905,258 7,543,815
RELATED TO POST EMPLOYMENT BENEFITS 3,113,134 433,754 3,546,888
TOTAL DEFERRED INFLOWS OF RESOURCES 9,751,691 1,339,012 11,090,703
NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 73,833,698 16,429,605 90,263,303
RESTRICTED FOR:
PERMANENT FUNDS:
EXPENDABLE 151,802 - 151,802
NONEXPENDABLE 150,388 - 150,388
OTHER PURPOSES 15,535,308 - 15,535,308
UNRESTRICTED (30,005,879) 1,261,019 (28,744,860)
TOTAL NET POSITION 59,665,317$ 17,690,624$ 77,355,941$
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2022
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 6,007,213$ 627,363$ 1,214,006$ 192,400$ (3,973,444)$
PUBLIC SAFETY 8,185,123 1,961,166 301,036 30,161 (5,892,760)
EDUCATION 22,456,196 46,085 1,681,982 - (20,728,129)
PUBLIC WORKS 2,975,590 599,581 305,263 26,013 (2,044,733)
HUMAN SERVICES 985,042 62,318 129,081 - (793,643)
CULTURE & RECREATION 1,292,431 451,077 230,607 - (610,747)
EMPLOYEE BENEFITS 5,689,020 - 994,954 - (4,694,066)
STATE & COUNTY ASSESSMENTS 643,674 - - - (643,674)
INTEREST 715,052 - - - (715,052)
TOTAL GOVERNMENTAL ACTIVITIES 48,949,341 3,747,590 4,856,929 248,574 (40,096,248)
BUSINESS-TYPE ACTIVITIES:
GOLF 3,317,875 4,857,079 - - 1,539,204
WATER 2,049,929 3,264,277 78,577 - 1,292,925
TOTAL BUSINESS-TYPE ACTIVITIES 5,367,804 8,121,356 78,577 - 2,832,129
TOTAL PRIMARY GOVERNMENT 54,317,145$ 11,868,946$ 4,935,506$ 248,574$ (37,264,119)$
(continued)
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2022
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 (40,096,248)$ 2,832,129$ (37,264,119)$
GENERAL REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS PAYABLE 37,765,003 - 37,765,003
TAX LIENS 35,914 - 35,914
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,749,095 - 1,749,095
HOTEL/MOTEL & MEALS TAX 3,049,603 - 3,049,603
PENALTIES AND INTEREST ON TAXES 145,159 - 145,159
PAYMENTS IN LIEU OF TAXES 6,859 - 6,859
GRANTS AND CONTRIBUTIONS NOT RESTRICTED
TO SPECIFIC PROGRAMS 2,622,433 - 2,622,433
BOND PREMIUM 16,454 - 16,454
UNRESTRICTED INVESTMENT INCOME 21,952 - 21,952
MISCELLANEOUS 32,106 - 32,106
TRANSFERS, NET 529,326 (529,326) -
TOTAL GENERAL REVENUES AND TRANSFERS 45,973,904 (529,326) 45,444,578
CHANGE IN NET POSITION 5,877,656 2,302,803 8,180,459
NET POSITION:
BEGINNING OF YEAR 53,787,661 15,387,821 69,175,482
END OF YEAR 59,665,317$ 17,690,624$ 77,355,941$
(concluded)
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2022
PRIMARY GOVERNMENT
See accompanying notes to the basic financial statements
- 13 -
TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2022
NONMAJOR TOTAL
COMMUNITY LAND GOVERNMENTAL GOVERNMENTAL
ASSETS GENERAL PRESERVATION ACQUISITION FUNDS FUNDS
CASH AND SHORT-TERM INVESTMENTS 14,646,639$ 4,268,666$ -$ 7,283,186$ 26,198,491$
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 348,710 - - - 348,710
TAX LIENS 455,277 - - - 455,277
MOTOR VEHICLE EXCISE TAXES 135,468 - - - 135,468
DEPARTMENTAL AND OTHER - 20,177 - 234,483 254,660
INTERGOVERNMENTAL - - - 36,931 36,931
SPECIAL ASSESSMENTS - - - 260,682 260,682
TOTAL ASSETS 15,586,094$ 4,288,843$ -$ 7,815,282$ 27,690,219$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES:
ACCOUNTS PAYABLE 1,700,398$ 2,375$ -$ 200,951$ 1,903,724$
OTHER LIABILITIES 156 - - 10,315 10,471
NOTES PAYABLE - - 3,990,000 - 3,990,000
TOTAL LIABILITIES 1,700,554 2,375 3,990,000 211,266 5,904,195
DEFFERRED INFLOWS OF RESOURCES:
UNAVAILABLE REVENUE 810,383 20,177 - 495,165 1,325,725
FUND BALANCES:
NONSPENDABLE - - - 150,388 150,388
RESTRICTED 146,759 4,266,291 - 7,298,344 11,711,394
COMMITTED 3,411,595 - - - 3,411,595
ASSIGNED 909,733 - - - 909,733
UNASSIGNED 8,607,070 - (3,990,000) (339,881) 4,277,189
TOTAL FUND BALANCES 13,075,157 4,266,291 (3,990,000) 7,108,851 20,460,299
TOTAL LIABILITIES, DEFERRED INFLOW OF RESOURCES
AND FUND BALANCES 15,586,094$ 4,288,843$ -$ 7,815,282$ 27,690,219$
See accompanying notes to the basic financial statements
- 14 -
NONMAJOR TOTAL
COMMUNITY LAND GOVERNMENTAL GOVERNMENTAL
GENERAL PRESERVATION ACQUISITION FUNDS FUNDS
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 37,947,931$ -$ -$ -$ 37,947,931$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,732,823 - - - 1,732,823
INTERGOVERNMENTAL 3,006,093 771,193 - 1,508,764 5,286,050
PAYMENTS IN LIEU OF TAXES 6,859 - - - 6,859
PENALTIES & INTEREST ON TAXES 145,159 - - - 145,159
FINES & FORFEITS 45,491 - - - 45,491
CHARGES FOR SERVICES 594,156 - - 1,884,598 2,478,754
HOTEL/MOTEL & MEALS TAX 1,820,349 - - - 1,820,349
INVESTMENT INCOME 21,224 3,891 - 1,656 26,771
CONTRIBUTIONS AND DONATIONS - - - 109,318 109,318
DEPARTMENTAL AND OTHER 2,857,193 1,118,135 - 1,009,840 4,985,168
TOTAL REVENUES 48,177,278 1,893,219 - 4,514,176 54,584,673
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 6,517,900 951,151 24,000,000 931,502 32,400,553
PUBLIC SAFETY 7,214,317 - - 553,317 7,767,634
EDUCATION 21,543,495 - - 431,674 21,975,169
PUBLIC WORKS 2,874,340 - - 248,825 3,123,165
HUMAN SERVICES 872,754 161 - 97,223 970,138
CULTURE & RECREATION 911,541 208,886 - 406,215 1,526,642
EMPLOYEE BENEFITS 7,149,507 - - 29,086 7,178,593
STATE & COUNTY ASSESSMENTS 643,674 - - - 643,674
DEBT SERVICE
PRINCIPAL 1,220,000 160,000 - - 1,380,000
INTEREST 532,351 43,682 - - 576,033
TOTAL EXPENDITURES 49,479,879 1,363,880 24,000,000 2,697,842 77,541,601
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,302,601) 529,339 (24,000,000) 1,816,334 (22,956,928)
OTHER FINANCING SOURCES (USES)
PROCEEDS FROM BONDS AND NOTES - - 19,810,000 - 19,810,000
PROCEEDS FROM BONDS PREMIUM - - 200,000 115,710 315,710
OPERATING TRANSFERS IN 1,941,261 - - 650,000 2,591,261
OPERATING TRANSFERS OUT (650,000) - - (1,411,935) (2,061,935)
TOTAL OTHER FINANCING SOURCES (USES)1,291,261 - 20,010,000 (646,225) 20,655,036
NET CHANGE IN FUND BALANCES (11,340) 529,339 (3,990,000) 1,170,109 (2,301,892)
FUND BALANCES AT BEGINNING OF YEAR 13,086,497 3,736,952 - 5,938,742 22,762,191
FUND BALANCES AT END OF YEAR 13,075,157$ 4,266,291$ (3,990,000)$ 7,108,851$ 20,460,299$
TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2022
See accompanying notes to the basic financial statements
- 15 -
TOTAL GOVERNMENTAL FUND BALANCES 20,460,299$
CAPITAL ASSETS (NET) USED IN GOVERNMENTAL ACTIVITIES ARE NOT FINANCIAL RESOURCES
AND, THEREFORE, ARE NOT REPORTED IN THE FUNDS 113,651,912
ACCOUNTS RECEIVABLE ARE NOT AVAILABLE TO PAY FOR CURRENT-PERIOD
EXPENDITURES AND, THEREFORE, ARE DEFERRED IN THE FUNDS 1,325,725
IN THE STATEMENT OF ACTIVITIES, INTEREST IS ACCRUED ON OUTSTANDING LONG-TERM DEBT,
WHEREAS IN GOVERNMENTAL FUNDS INTEREST IS NOT REPORTED UNTIL DUE (340,063)
LONG-TERM LIABILITIES ARE NOT DUE AND PAYABLE IN THE CURRENT PERIOD AND, THEREFORE,
ARE NOT REPORTED IN THE GOVERNMENTAL FUNDS
(35,915,000)
(434,287)
(18,243,355)
2,989,619
(6,638,557)
(13,731,615)
633,449
(3,113,134)
(726,776)
BONDS AND NOTES PAYABLE
LEASES
NET PENSION LIABILITY
DEFERRED OUTFLOWS OF RESOURCES - RELATED TO PENSION
DEFERRED INFLOWS OF RESOURCES - RELATED TO PENSION
POSTEMPLOYMENT BENEFITS
DEFERRED OUTFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS
DEFERRED INFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS
UNAMORTIZED BOND PREMIUM
LANDFILL POSTCLOSURE CARE COSTS (252,900)
NET EFFECT OF REPORTING LONG-TERM LIABILITIES (75,432,556)
NET POSITION OF GOVERNMENTAL ACTIVITIES 59,665,317$
TOWN OF BREWSTER, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying notes to the basic financial statements
- 16 -
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (2,301,892)$
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 28,096,388
DEPRECIATION EXPENSE (2,438,623)
NET EFFECT OF REPORTING CAPITAL ASSETS 25,657,765
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 (303,456)
THE ISSUANCE OF LONG-TERM DEBT (E.G., BONDS) PROVIDES CURRENT FINANCIAL
RESOURCES TO GOVERNMENTAL FUNDS, WHILE THE REPAYMENT OF THE PRINCIPAL OF LONG-
TERM DEBT CONSUMES THE FINANCIAL RESOURCES OF GOVERNMENTAL FUNDS. NEITHER
TRANSACTION, HOWEVER, HAS ANY EFFECT ON NET ASSETS. ALSO, GOVERNMENTAL FUNDS
REPORT THE EFFECT OF ISSUANCE COSTS, PREMIUMS, DISCOUNTS, AND SIMILAR ITEMS WHEN
DEBT IS FIRST ISSUED, WHEREAS THESE AMOUNTS ARE DEFERRED AND AMORTIZED IN THE
STATEMENT OF ACTIVITIES.
PROCEEDS FROM BONDS AND NOTES (19,810,000)
DEBT SERVICE PRINCIPAL PAYMENTS 1,380,000
CAPITAL LEASE - PRINCIPAL PAYMENTS 176,041
NET EFFECT OF REPORTING LONG-TEM DEBT (18,253,959)
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 (1,269,671)
NET CHANGE IN DEFERRED OUTFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS 386,459
NET CHANGE IN DEFERRED INFLOWS OF RESOURCES - RELATED TO POSTEMPLOYMENT BENEFITS 2,097,670
NET CHANGE IN LANDFILL POSTCLOSURE CARE ACCRUAL 27,900
NET CHANGE IN NET PENSION LIABILITY 3,756,911
NET CHANGE IN DEFERRED OUTFLOWS OF RESOURCES - RELATED TO PENSIONS 206,002
NET CHANGE IN DEFERRED INFLOWS OF RESOURCES - RELATED TO PENSIONS (3,687,798)
NET CHANGE IN UNAMORTIZED BOND PREMIUM (229,048)
NET CHANGE IN ACCRUED INTEREST ON LONG-TERM DEBT (209,227)
NET EFFECT OF RECORDING LONG-TERM LIABILITIES 1,079,198
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 5,877,656$
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, 2022
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 37,606,987$ 37,606,987$ 37,947,931$ 340,944$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,441,320 1,441,320 1,732,823 291,503
INTERGOVERNMENTAL 1,924,927 1,924,927 2,014,686 89,759
PAYMENTS IN LIEU OF TAXES 5,507 5,507 6,859 1,352
PENALTIES & INTEREST ON TAXES 115,731 115,731 145,159 29,428
FINES & FORFEITS 33,088 33,088 45,491 12,403
HOTEL/MOTEL & MEALS TAX 1,809,908 1,809,908 1,820,349 10,441
INVESTMENT INCOME 16,668 16,668 9,323 (7,345)
DEPARTMENTAL AND OTHER 1,520,757 1,520,757 3,451,349 1,930,592
TOTAL REVENUES 44,474,893 44,474,893 47,173,970 2,699,077
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 7,664,833 7,915,801 7,554,370 361,431
PUBLIC SAFETY 7,529,865 8,302,453 8,130,056 172,397
EDUCATION 22,048,879 22,073,879 22,055,117 18,762
PUBLIC WORKS 3,051,625 3,730,533 3,662,277 68,256
HUMAN SERVICES 935,183 959,088 873,711 85,377
CULTURE & RECREATION 958,195 1,015,107 983,293 31,814
EMPLOYEE BENEFITS 6,708,333 6,369,153 6,164,852 204,301
STATE & COUNTY ASSESSMENTS 626,094 628,208 643,674 (15,466)
DEBT SERVICE
PRINCIPAL 1,220,000 1,220,000 1,220,000 -
INTEREST 537,298 537,298 531,101 6,197
TOTAL EXPENDITURES 51,280,305 52,751,520 51,818,451 933,069
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (6,805,412) (8,276,627) (4,644,481) 3,632,146
OTHER FINANCING SOURCES (USES):
OPERATING TRANSFERS IN 1,746,261 1,941,261 1,941,261 -
OPERATING TRANSFERS OUT (250,000) (650,000) (650,000) -
TOTAL OTHER FINANCING SOURCES (USES)1,496,261 1,291,261 1,291,261 -
NET CHANGE IN FUND BALANCE (5,309,151) (6,985,366) (3,353,220) 3,632,146
BUDGETARY FUND BALANCE, BEGINNING OF YEAR 9,132,596 9,132,596 9,132,596 -
BUDGETARY FUND BALANCE, END OF YEAR 3,823,445$ 2,147,230$ 5,779,376$ 3,632,146$
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, 2022
BUDGETED AMOUNTS
- 18 -
ASSETS GOLF WATER TOTAL
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 2,913,412$ 2,752,983$ 5,666,395$
USER FEES - 1,155,624 1,155,624
SPECIAL ASSESSMENTS - 1,899 1,899
TOTAL CURRENT ASSETS 2,913,412 3,910,506 6,823,918
NONCURRENT:
SPECIAL ASSESSMENTS - 299 299
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 7,257,777 13,476,504 20,734,281
TOTAL NONCURRENT ASSETS 7,257,777 13,476,803 20,734,580
TOTAL ASSETS 10,171,189 17,387,309 27,558,498
DEFERRED OUTFLOWS OF RESOURCES
RELATED TO PENSIONS 237,810 169,865 407,675
RELATED TO POST EMPLOYMENT BENEFITS 53,633 34,626 88,259
TOTAL DEFERRED OUTFLOWS OF RESOURCES 291,443 204,491 495,934
LIABILITIES
CURRENT:
ACCOUNTS PAYABLE 62,250 92,105 154,355
ACCRUED INTEREST - 13,478 13,478
CAPITAL LEASE PAYABLE 111,000 - 111,000
BONDS AND NOTES PAYABLE - 1,050,000 1,050,000
TOTAL CURRENT LIABILITIES 173,250 1,155,583 1,328,833
NONCURRENT:
POSTEMPLOYMENT BENEFITS 1,162,635 750,598 1,913,233
NET PENSION LIABILITY 1,451,176 1,036,554 2,487,730
CAPITAL LEASE PAYABLE 185,000 - 185,000
BONDS AND NOTES PAYABLE - 3,110,000 3,110,000
TOTAL NONCURRENT LIABILITIES 2,798,811 4,897,152 7,695,963
TOTAL LIABILITIES 2,972,061 6,052,735 9,024,796
DEFERRED INFLOWS OF RESOURCES
RELATED TO PENSIONS 528,067 377,191 905,258
RELATED TO POST EMPLOYMENT BENEFITS 263,584 170,170 433,754
TOTAL DEFERRED INFLOWS OF RESOURCES 791,651 547,361 1,339,012
NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 6,961,777 9,467,828 16,429,605
UNRESTRICTED (262,857) 1,523,876 1,261,019
TOTAL NET POSITION 6,698,920$ 10,991,704$ 17,690,624$
See accompanying notes to the basic financial statements
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2022
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS
- 19 -
GOLF WATER TOTAL
OPERATING REVENUES:
CHARGES FOR SERVICES 4,857,079$ 3,264,277$ 8,121,356$
DEPARTMENTAL AND OTHER - 76,338 76,338
TOTAL OPERATING REVENUES 4,857,079 3,340,615 8,197,694
OPERATING EXPENSES:
GENERAL SERVICES 2,784,183 1,376,669 4,160,852
DEPRECIATION 533,692 543,639 1,077,331
TOTAL OPERATING EXPENSES 3,317,875 1,920,308 5,238,183
OPERATING INCOME (LOSS)1,539,204 1,420,307 2,959,511
NON-OPERATING REVENUES (EXPENSES):
INTEREST INCOME - 2,239 2,239
INTEREST EXPENSE - (129,621) (129,621)
TOTAL NON-OPERATING REVENUES (EXPENSES), NET - (127,382) (127,382)
INCOME (LOSS) BEFORE OPERATING TRANSFERS 1,539,204 1,292,925 2,832,129
OPERATING TRANSFERS:
OPERATING TRANSFERS OUT (129,324) (400,002) (529,326)
CHANGE IN NET POSITION 1,409,880 892,923 2,302,803
NET POSITION AT BEGINNING OF YEAR 5,289,040 10,098,781 15,387,821
NET POSITION AT END OF YEAR 6,698,920$ 10,991,704$ 17,690,624$
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, 2022
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUNDS
- 20 -
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2022
GOLF WATER TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES:
RECEIPTS FROM CUSTOMERS AND USERS 4,857,079$ 2,985,393$ 7,842,472$
PAYMENTS TO SUPPLIERS (1,845,263) (1,115,143) (2,960,406)
PAYMENTS TO EMPLOYEES (1,475,959) (915,407) (2,391,366)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,535,857 954,843 2,490,700
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING TRANSFERS OUT (129,324) (400,002) (529,326)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
- 650,000 650,000
- (405,000) (405,000)
(111,000) - (111,000)
- (667,681) (667,681)
NET PROCEEDS FROM THE ISSUANCE/RETIREMENT OF BONDS AND NOTES
PRINCIPAL PAYMENTS ON BONDS AND NOTES
PRINCIPAL PAYMENTS ON LEASES
ACQUISITION AND CONSTRUCTION OF CAPITAL ASSETS
INTEREST EXPENSE - (129,880) (129,880)
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (111,000) (552,561) (663,561)
CASH FLOWS FROM INVESTING ACTIVITIES:
INTEREST RECEIVED - 2,239 2,239
NET INCREASE (DECREASE) IN CASH AND SHORT TERM INVESTMENTS 1,295,533 4,519 1,300,052
CASH AND SHORT TERM INVESTMENTS - BEGINNING OF YEAR 1,617,879 2,748,464 4,366,343
CASH AND SHORT TERM INVESTMENTS- END OF YEAR 2,913,412$ 2,752,983$ 5,666,395$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
OPERATING INCOME (LOSS)1,539,204$ 1,420,307$ 2,959,511$
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 533,692 543,639 1,077,331
(INCREASE) DECREASE IN ACCOUNTS RECEIVABLE - (355,221) (355,221)
(INCREASE) DECREASE IN DEFERRED OUTFLOWS OF RESOURCES (8,543) 38,249 29,706
INCREASE (DECREASE) IN ACCOUNTS PAYABLE (89,302) (5,825) (95,127)
INCREASE (DECREASE) IN DEFERRED INFLOWS OF RESOURCES 72,742 19,524 92,266
INCREASE (DECREASE) IN NET PENSION LIABILITY (619,437) (775,233) (1,394,670)
INCREASE (DECREASE) IN POSTEMPLOYMENT BENEFITS 107,501 69,403 176,904
TOTAL ADJUSTMENTS (3,347) (465,464) (468,811)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,535,857$ 954,843$ 2,490,700$
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 21 -
TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
POSTEMPLOYMENT PRIVATE
BENEFITS PURPOSE
TRUST TRUST FUNDS
ASSETS
CASH AND SHORT-TERM INVESTMENTS -$ 91,035$
INVESTMENTS 3,294,393 -
TOTAL ASSETS 3,294,393 91,035
LIABILITIES - -
NET POSITION
RESTRICTED FOR:
POSTEMPLOYMENT BENEFITS 3,294,393 -
INDIVIDUALS AND OTHER ORGAIZATIONS - 91,035
TOTAL NET POSITION 3,294,393$ 91,035$
See accompanying notes to the basic financial statements
- 22 -
POSTEMPLOYMENT PRIVATE
BENEFITS PURPOSE
TRUST TRUST FUNDS
ADDITIONS:
CONTRIBUTIONS:
CONTRIBUTIONS -$ 13,500$
EMPLOYER CONTRIBUTIONS 300,000 -
EMPLOYER CONTRIBUTIONS TO PAY FOR OPEB BENEFITS 815,440 -
NET INVESTMENT INCOME (LOSS):
INVESTMENT INCOME (142,227) 176
TOTAL ADDITIONS 973,213 13,676
DEDUCTIONS:
BENEFIT PAYMENTS 815,440 -
FUNDS DISTRIBUTED ON BEHALF OF OTHERS - 9,491
TOTAL DEDUCTIONS 815,440 9,491
NET INCREASE (DECREASE) IN FIDUCIARY NET POSITION 157,773 4,185
NET POSITION AT BEGINNING 3,136,620 86,850
NET POSITION AT END 3,294,393$ 91,035$
TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FISCAL YEAR ENDED JUNE 30, 2022
See accompanying notes to the basic financial statements
- 23 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 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 five (5) 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 48.17% in the joint venture.
Name Purpose Address
Annual
Assessment
Nauset Regional To provide education services 78 Eldredge Parkway $ 11,919,499
School District Orleans, MA 02653
Cape Cod Regional
Technical High
School
To provide vocational education 351 Pleasant Lake Ave
Harwich, MA 02645
$ 1,214,343
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
-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 9.00% 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, 2022
- 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,
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, 2022
-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 Land Acquisition fund is a capital project fund used to account for the acquisition of Besse
Cartway and 3057 Main Street properties.
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, 2022
- 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, 2022
- 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, 2022
- 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, 2022
-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, 2022
- 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, 2022
- 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, 2022
- 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, 2022
-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 System’s fiduciary net position have been
determined on the same basis as they are reported by the Systems. 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 MGL 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, 2022
-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 2022 approved budget authorized
$49,238,303 in current year appropriations and other amounts to be raised and $2,042,002 in carryover
articles carried over from previous fiscal years. Supplemental appropriations of $1,471,215 were
approved at three Town Meetings for fiscal year 2022.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
-37 -
The Finance Director has the responsibility to ensure that budgetary controls are maintained and
monitored through the accounting system.
B. Budgetary – GAAP Reconciliation
For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of
accounting (established by the Commonwealth) is followed, which differs from the GAAP basis of
accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the fiscal
year ended June 30, 2022 is presented below:
C. Deficit Fund Balances
Several individual fund deficits exist within the special revenue funds and one deficit exits in the
governmental capital projects funds. These individual deficits will be eliminated through subsequent
fiscal year budget transfers, grants, and/or proceeds from long-term debt during fiscal year 2023.
NOTE 3 – DEPOSITS AND INVESTMENTS
State and local statutes place certain limitations on the nature of deposits and investments available to the
Town. Deposits (including demand deposits, term deposits and certificates of deposit) in any one financial
institution may not exceed certain levels unless collateralized by the financial institutions involved.
Deposits
Custodial Credit Risk - Deposits
Custodial credit risk is the risk that in the event of bank failure, the Town’s deposits may not be
returned. Massachusetts General Law Chapter 44, Section 55, limits the deposits “in a bank or
trust company, or banking company to an amount not exceeding sixty percent (60%) of the
capital and surplus of such bank or trust company or banking company, unless satisfactory
security is given to it by such bank or trust company or banking company for such excess.”
The Town does not have a formal deposit policy for custodial credit risk.
Net change in fund balance - budgetary basis (3,353,220)$
Basis of accounting differences:
Inc rease in revenue for on-behalf payments - MTRS 990,157
Increase in expenditures for on-behalf payments - MTRS (990,157)
Increase in revenue for the MWPAT subsidy 1,250
Increase in expenditures for the MWPAT subsidy (1,250)
Net Stabilization fund activity 11,901
Adjustment for current year articles 3,414,545
Adjustment for current year encumbrances 182,261
Adjustment for expenditures from prior year encumbrances (266,827)
Net change in fund balance - GAAP basis (11,340)$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
-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, 2022:
Total Bank Balances 28,644,000$
Bank Balances Covered by Deposit Insurance
Federal Deposit Insurance Corporation (FDIC)4,664,549
Depositor's Insurance Fund (DIF)19,664,193
Total Bank Balances Covered by Deposit Insurance 24,328,742
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 4,315,258
Total Bank Balances Subject to Custodial Credit Risk 4,315,258
Total Bank Balances 28,644,000$
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, 2022
- 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 3,294,393$ N/A 3,294,393$
• 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, 2022
-40 -
Information about the sensitivity of the fair values of the Town’s investments to market interest
rate fluctuations is as follows:
Investment
maturities
(in years)
Investment type Fair value Less than 1
State Retirees Benefits Trust Fund (SRBT) -
HCST OPEB Master Trust 3,294,393$ 3,294,393$
•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, 2022
-41 -
The Town has the following recurring fair value measurement as of June 30, 2022:
Investment Type June 30, 2022
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)3,294,393
Investments measured at amortized cost
Massachusetts Municipal Depository Trust - (MMDT)4,139,983
Total Investments 7,434,376$
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, 2022 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 353,010$ (4,300)$ 348,710$
Tax liens 455,277 - 455,277
Motor vehicle and other excise taxes 203,606 (68,138) 135,468
Departmental and other 334,123 (79,463) 254,660
Intergovernmental 36,931 - 36,931
Special assessments 260,682 - 260,682
Total 1,643,629$ (151,901)$ 1,491,728$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
-42 -
The receivables at June 30, 2022, 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 1,155,624$ -$ 1,155,624$
Special Assessments 2,198 - 2,198
Total 1,157,822$ -$ 1,157,822$
Nonmajor
General Community Governmental
Deferred Inflows:Fund Preservation Funds Total
Deferred Property Taxes 219,639$ 20,177$ 253,055$ 492,871$
Deferred Other Revenue 590,744 - 242,110 832,854
Total 810,383$ 20,177$ 495,165$ 1,325,725$
Deferred Inflows of Resources Analysis
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 43 -
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2022, was as follows:
Beginning Decrease/Ending
Governmental Activities:Balance Increases Adjustments Balance
Capital assets not being depreciated:
Land 42,192,861$ 26,370,000$ -$ 68,562,861$
Construction in progress 145,547 447,010 (36,420) 556,137
Total capital assets not being depreciated 42,338,408 26,817,010 (36,420) 69,118,998
Capital assets being depreciated:
Building and improvements 41,796,598 112,621 - 41,909,219
Capital improvement (other than buildings)6,780,520 155,770 36,420 6,972,710
Machinery, equipment, and vehicles 15,065,283 498,905 - 15,564,188
Infrastructure 18,942,249 512,082 - 19,454,331
Total capital assets being depreciated 82,584,650 1,279,378 36,420 83,900,448
Less accumulated depreciation for:
Building and improvements (16,543,800) (1,000,419) - (17,544,219)
Capital improvement (other than buildings)(3,108,134) (417,112) - (3,525,246)
Machinery, equipment, and vehicles (10,686,370) (611,041) - (11,297,411)
Infrastructure (6,590,607) (410,051) - (7,000,658)
Total accumulated depreciation (36,928,911) (2,438,623) - (39,367,534)
Total capital assets being depreciated, net 45,655,739 (1,159,245) 36,420 44,532,914
Total governmental activities capital assets, net 87,994,147$ 25,657,765$ -$ 113,651,912$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 44 -
Depreciation expense was charged to functions/programs of the primary government as follows:
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 100,850 333,876 - 434,726
Total capital assets not being depreciated 3,660,062 333,876 - 3,993,938
Capital assets being depreciated:
Buildings and improvements 5,731,042 - - 5,731,042
Machinery, equipment, and vehicles 4,744,930 210,780 - 4,955,710
Infrastructure 26,012,875 123,024 - 26,135,899
Total capital assets being depreciated 36,488,847 333,804 - 36,822,651
Less accumulated depreciation for:
Buildings and improvements (2,255,080) (146,896) - (2,401,976)
Machinery, equipment, and vehicles (3,032,112) (311,970) - (3,344,082)
Infrastructure (13,717,785) (618,465) - (14,336,250)
Total accumulated depreciation (19,004,977) (1,077,331) - (20,082,308)
Total capital assets being depreciated, net 17,483,870 (743,527) - 16,740,343
Total business-type activites capital assets, net 21,143,932$ (409,651)$ -$ 20,734,281$
General government 127,036$
Public safety 939,396
Education 508,976
Public works 606,274
Human services 14,904
Culture and recreation 242,037
Total depreciation expense - governmental activities 2,438,623$
Water 543,639$
Golf 533,692
Total depreciation expense - business-type activities 1,077,331$
Governmental Activities:
Business-Type Activities:
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 45 -
NOTE 6 – CAPITAL LEASES
The Town has entered into lease agreements as lessee for financing the acquisition of 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, 2022, are as follows:
Primary
Year Ending June 30 Government
2023 125,570$
2024 125,570
2025 71,085
2026 71,085
2027 71,085
Total minimum lease payments 464,395
Less: amounts representing interest (30,108)
Present value of minimum lease payments 434,287$
Governmental
Activities
Assets:
Vehicles 1,205,000$
Less: Accumulated depreciation (348,500)
856,500$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 46 -
NOTE 7 – OPERATING LEASE
The Town has entered into a lease agreement as lessee for financing of golf carts. The lease agreement
qualifies as an operating lease for accounting purposes and, therefore, has been recorded at the present
value of the future minimum lease payments as of the inception date.
The assets acquired through the operating lease is as follows:
The future minimum lease obligations and the net present value of the minimum lease payments as of
June 30, 2022, are as follows:
Primary
Year Ending June 30 Government
2023 111,000$
2024 111,000
2025 74,000
Present value of minimum lease payments 296,000$
Buisness Type
Activities
Assets:
Machinery & Equipment 555,000$
Less: Accumulated depreciation (277,500)
277,500$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 47 -
NOTE 8 – INTERFUND TRANSFERS
Interfund transfers for the fiscal year ended June 30, 2022, 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
NOTE 9 – SHORT-TERM FINANCING
Under state law, and with the appropriate authorization, the Town is authorized to borrow funds on a
temporary basis as follows:
• To fund current operations prior to the collection of revenues by issuing revenue anticipation notes
(RANS).
• To fund grants prior to reimbursement by issuing grant anticipation notes (GANS).
• To fund Capital project costs incurred prior to selling permanent debt by issuing bond anticipation
notes (BANS).
• To fund current project costs and other approved expenditures incurred, that are anticipated to be
reimbursed by the Commonwealth through the issuance of State Aid anticipation notes (SAANS).
Short-term loans are general obligations of the Town and maturity dates are governed by statute. Interest
expenditures and expenses for short-term borrowings are accounted for in the general fund and the Water
Enterprise fund.
Nonmajor
General Governmental
Operating Transfers Out:Fund Funds Total
Nonmajor Governmental Funds 1,411,935$ -$ 1,411,935$ (1)
Golf Enterprise Fund 129,324 - 129,324 (1)
General Fund - 650,000 650,000 (2)
Water Enterprise Fund 400,002 - 400,002 (1)
Total 1,941,261$ 650,000$ 2,591,261$
Operating Transfers In:
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 48 -
The following is a summary of changes in short-term debt for the year ended June 30, 2022:
NOTE 10 – 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, 2021
Renewed/
Issued
Retired/
Redeemed
Balance at
June 30, 2022
Governmental Funds
BAN Various Projects 0.43 4/1/2022 650,000$ -$ (650,000)$ -$
BAN Land Acquisition 1.00 11/10/2022 - 3,990,000 - 3,990,000
Total Governmental Funds 650,000 3,990,000 (650,000) 3,990,000
Business - Type Activities
BAN Water Equipment 0.98 11/10/2022 -$ 650,000$ -$ 650,000$
Total:650,000$ 4,640,000$ (650,000)$ 4,640,000$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 49 -
The following is a summary of the changes in long-term debt for the year ended June 30, 2022:
Bonds and Notes Payable Schedule -Governmental Funds
Project
Interest
Rate (%)
Outstanding at
June 30, 2021 Issued
Redeemed/
Refunded
Outstanding at
June 30, 2022
MWPAT Title V Septic 3.59 30,000$ -$ 10,000$ 20,000$
Land Acquisition 4.49 180,000 - 45,000 135,000
Land Acquisition 4.49 480,000 - 80,000 400,000
Land Acquisition 3.84 325,000 - 35,000 290,000
Road Betterments 3.00 15,000 - 5,000 10,000
Road Betterments 3.00 15,000 - 5,000 10,000
Road Betterments 2.5 - 4.0 50,000 - 10,000 40,000
Road Betterments 2.5 - 4.0 70,000 - 10,000 60,000
School Renovations 2.5 - 4.0 2,175,000 - 145,000 2,030,000
Road Betterments 2.5 - 4.0 1,325,000 - 135,000 1,190,000
Fire Station 2.25 -5.00 5,200,000 - 325,000 4,875,000
Road Repairs 2.25 -5.00 1,610,000 - 160,000 1,450,000
Library Parking Lot 2.25 -5.00 200,000 - 20,000 180,000
Road Betterments 2.25 -5.00 150,000 - 15,000 135,000
Road Betterments 2.25 -5.00 50,000 - 5,000 45,000
Road Betterments 2.92 75,000 - 10,000 65,000
Fire Station 2.92 5,100,000 - 300,000 4,800,000
Town Septage 2.92 435,000 - 65,000 370,000
Land Acquisition 2.00 - 5.00 - 19,810,000 - 19,810,000
Total Bonds and Notes Payable 17,485,000 19,810,000 1,380,000 35,915,000
Add: Unamortized Bond Premium 497,728 - 70,208 427,520
Total 17,982,728$ 19,810,000$ 1,450,208$ 36,342,520$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 50 -
The annual debt service requirements for principal and interest for Governmental bonds and notes
outstanding at June 30, 2022 are as follows:
Bonds and Notes Payable Schedule -Water and Golf Enterprise Funds
Project
Interest
Rate (%)
Outstanding at
June 30, 2021 Issued
Redeemed/
Refunded
Outstanding at
June 30, 2022
Water Betterments - Slough Rd 3.64 175,000$ -$ 35,000$ 140,000$
Water Betterments - Fiddler's Ln 4.49 5,000 - 5,000 -
Land Acquisition 3 - 3.50 415,000 - 35,000 380,000
Water Offices/Garage 3.96 850,000 - 125,000 725,000
Well #6 3 - 3.50 1,730,000 - 135,000 1,595,000
Well Access Road 2.5 - 4.0 125,000 - 25,000 100,000
Water 2.5 - 4.0 615,000 - 45,000 570,000
Total 3,915,000$ -$ 405,000$ 3,510,000$
Fiscal Year Principal Interest Total
2023 1,770,000$ 1,399,304$ 3,169,304$
2024 1,765,000 1,032,028 2,797,028
2025 1,770,000 955,840 2,725,840
2026 1,735,000 870,820 2,605,820
2027 1,745,000 805,958 2,550,958
2028-2032 8,105,000 3,222,326 11,327,326
2033-2037 6,765,000 2,232,661 8,997,661
2038-2042 3,755,000 1,466,515 5,221,515
2043-2047 3,950,000 947,418 4,897,418
2048-2052 4,555,000 337,778 4,892,778
Total 35,915,000$ 13,270,648$ 49,185,648$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 51 -
The annual debt service requirements for principal and interest for water and golf enterprise funds bonds
and notes outstanding at June 30, 2022 are as follows:
Loans Authorized and Unissued
As of June 30, 2022, the Town has loans authorized and unissued as follows:
Fiscal Year Principal Interest Total
2023 400,000$ 115,355$ 515,355$
2024 395,000 101,020 496,020
2025 390,000 86,721 476,721
2026 390,000 72,614 462,614
2027 325,000 60,550 385,550
2028-2032 1,130,000 170,260 1,300,260
2033-2036 480,000 26,750 506,750
Total 3,510,000$ 633,270$ 4,143,270$
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
Water Generator Project 5/15/2021 678,000
Land Acquisition - WH Besse 9/25/2021 4,000,000
11,569,315$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 52 -
Changes in Long-term Liabilities
The following is a summary of changes in long-term liabilities for the year ended June 30, 2022:
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 17,485,000$ 19,810,000$ (1,380,000)$ 35,915,000$ 1,770,000$
Add: Unamortized Premiums 497,728 - (70,208) 427,520 62,641
Total Bond Payable 17,982,728 19,810,000 (1,450,208) 36,342,520 1,832,641
Landfill postclosure care costs 280,800 - (27,900) 252,900 28,734
Lease 610,328 - (176,041) 434,287 114,431
Postemployment benefits 12,461,944 1,269,671 - 13,731,615 -
Net pension liability 22,000,266 - (3,756,911) 18,243,355 -
Total governmental activities
long-term liabilities 53,336,066$ 21,079,671$ (5,411,060)$ 69,004,677$ 1,975,806$
Beginning Ending Current
Business-Type Activities:Balance Additions Reductions Balance Portion
Postemployment benefits 1,736,329$ 176,904$ -$ 1,913,233$ -$
Lease 407,000 - (111,000) 296,000 111,000
Net Pension Liability 3,882,400 - (1,394,670) 2,487,730 -
Bonds and notes payable 3,915,000 - (405,000) 3,510,000 400,000
Total business-type activities
long-term liabilities 9,940,729$ 176,904$ (1,910,670)$ 8,206,963$ 511,000$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 53 -
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, 2022:
Total Long-Town's Town's
Term Debt Estimated Indirect
Agency Outstanding Share Debt
Nauset Regional School District 2,450,000$ 48.17% 1,180,165$
Cape Cod Regional Technical High School 59,245,000 9.00% 5,332,050$
Barnstable County 21,680,679 4.59% 995,143
83,375,679 7,507,358
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 54 -
NOTE 11 – GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The Town has classified its governmental fund balances with the following hierarchy.
Nonmajor
General Community Land Governmental
Fund Preservation Acquisition Funds Total
Fund Balances
Nonspendable:
Permanent Fund Principal -$ -$ -$ 150,388$ 150,388$
Restricted For:
General Government - - - 2,271,106 2,271,106
Public Safety - - - 2,822,229 2,822,229
Education - - - 518,603 518,603
Public Works - - - 877,830 877,830
Human Services - - - 230,801 230,801
Culture & Recreration - - - 337,770 337,770
Employee Benefits - - - 88,203 88,203
Bond Premium 146,759 - - - 146,759
Community Preservation - 4,266,291 - - 4,266,291
Expendable Trust Funds - - - 151,802 151,802
146,759 4,266,291 - 7,298,344 11,711,394
Committed To:
Continuing Appropriations
General Government 1,063,344 - - - 1,063,344
Public Safety 955,334 - - - 955,334
Education 518,215 - - - 518,215
Public Works 802,784 - - - 802,784
Human Services 507 - - - 507
Culture & Recreation 71,411 - - - 71,411
3,411,595 - - - 3,411,595
Assigned To:
Encumbered For:
General Government 2,747 - - - 2,747
Public Safety 4,029 - - - 4,029
Education 122,070 - - - 122,070
Public Works 1,475 - - - 1,475
Human Services 1,000 - - - 1,000
Culture & Recreation 341 - - - 341
Employee Benefits 50,600 - - - 50,600
Stabilization Fund - Capital Imp 727,471 - - - 727,471
909,733 - - - 909,733
Unassigned
General Fund 5,606,661 - - - 5,606,661
Land Acquisition - - (3,990,000) - (3,990,000)
General Stabilization Fund 3,000,409 - - - 3,000,409
Nonmajor Governmental Funds - - - (339,881) (339,881)
8,607,070 - (3,990,000) (339,881) 4,277,189
Total Governmental Fund Balances 13,075,157$ 4,266,291$ (3,990,000)$ 7,108,851$ 20,460,299$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
- 55 -
NOTE 12 – 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 $3,000,409 as of June 30,
2022. 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 $727,471 as of June 30, 2022. The fund was established under chapter 40, sub-section 5B of
the Massachusetts General Law.
NOTE 13 – 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 $5,000
per incident. The fully insurable value of Town buildings and contents is $106,894,778.
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 2022.
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, 2022
- 56 -
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, 2022
- 57 -
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 188 Town of Brewster employees and 199
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 14 - 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. For the period ending on June 30, 2022 measurement date, total
Town premiums plus implicit costs for the retiree medical program was $815,440. The Town also made a
contribution to an OPEB Trust for $300,000 for a total contribution during the measurement period of
$1,115,440 to be reported on the financial statements for the fiscal year ending June 30, 2022.
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 2022, the Town prefunded future OPEB liabilities totaling $300,000
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, 2022,
the balance of this fund totaled $3,294,393.
GASB Statement #75 – OPEB Employer Financial Reporting
Summary of Significant Accounting Policies – For purposes of measuring the net OPEB liability,
deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expenses,
information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s
fiduciary net position have been determined on the same basis as they are reported by the Plan. For this
purpose, the Plan recognizes benefit payments when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
-58 -
Measurement Date - GASB #75 requires the net OPEB liability to be measured as of a date no earlier than
the end of the employer’s prior fiscal year and no later than the end of the employer’s current fiscal year,
consistently applied from period to period. Accordingly, the net OPEB liability was measured as of June
30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an
actuarial valuation as of June 30, 2020.
Plan Membership – The following table represents the Plan’s membership as June 30, 2020:
Active Members 191
Inactive members or beneficiaries currently receiving benefits 182
Total 373
Components of OPEB Liability – The following table represents the components of the Plan’s OPEB
liability as of June 30, 2022:
Total OPEB Liability 18,939,241$
Less: OPEB plan's fiduciary net position (3,294,393)
Net OPEB Liability 15,644,848$
The OPEB plan's fiduciary net position as a
percentage of the total OPEB liability 17.39%
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
-59 -
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, 2022 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%
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, 2022
-60 -
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, 2022 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%6.11%
International developed markets equity 11.50%6.49%
International emerging markets equity 4.50%8.12%
Core fixed income 15.00%0.38%
High- yield fixed income 8.00%2.48%
Real Estate 10.00%3.72%
Timber 4.00%3.44%
Hedge fund, GTAA, Risk parity 10.00%2.63%
Private equity 15.00%9.93%
Total 100.00%
Asset Class
Discount Rate – The discount rate used to measure the total OPEB liability was 7.00% as of June 30,
2022. 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, 2022
- 61 -
Changes in the Net OPEB Liability
Total OPEB Plan Fiduciary Net OPEB
Liablity Net Position Liability
(a)(b)(a) - (b)
Balance at June 30, 2021 17,334,893$ 3,136,620$ 14,198,273$
Charges for the year:
Service cost 559,500 - 559,500
Interest 1,224,550 - 1,224,550
Difference between expected and actual experience 635,738 - 635,738
Net Investment Income - (142,227) 142,227
Employer Contributions - 1,115,440 (1,115,440)
Benefit payments, including refunds of member contributions (815,440) (815,440) -
Net Changes 1,604,348 157,773 1,446,575
Balance at June 30, 2022 18,939,241$ 3,294,393$ 15,644,848$
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 18,116,471$ 15,644,848$ 13,598,232$
Sensitivity of the net OPEB liability to changes in the healthcare trend rate – The following table presents
the net other postemployment benefit liability, as well as what the net OPEB liability would be if it were
calculated using a health care trend rate that is 1 percentage-point lower or 1 percentage-point higher.
Current
1% Decrease Trend 1% Increase
Net OPEB liability 13,078,080$ 15,644,848$ 18,827,694$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
-62 -
At June 30, 2022 the Town reported deferred outflows of resources and deferred inflows of resources
related to other postemployment benefits of $721,708 and $3,546,888.
The balances of the deferred outflows and inflows as of June 30, 2022 consist of the following:
Deferred Deferred
Outflows Inflows
of Resources of Resources Total
Difference between expected and actual experience 685,620$ (666,416)$ 19,204$
Changes of assumptions -(2,880,472) (2,880,472)
Net difference between projected and actual earnings 36,088 - 36,088
Total Deferred Outflows (Inflows) of Resources 721,708$ (3,546,888)$ (2,825,180)$
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
2023 (1,820,348)$
2024 (448,956)
2025 (471,132)
2026 (266,384)
2027 90,820
Thereafter 90,820
Deferred Inflows/Outflows Recognized in Future
Years (2,825,180)$
Changes of Assumption – None
Changes in Plan Provisions – None
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
-63 -
NOTE 15 – 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, 2021. The
Town’s portion of the collective pension expense, contributed by the Commonwealth, of $990,157 is
reported in the general fund as intergovernmental revenue and pension expense in the current fiscal year.
The portion of the Commonwealth’s collective net pension liability associated with the Town is
$12,339,041 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, 2022
-64 -
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, 2022 which was $2,776,801 and 22.96% 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, 2022
-65 -
D.Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
Pension Liabilities
At June 30, 2022 the Town reported a liability of $20,731,085 for its proportionate share of the net
pension liability. The net pension liability was measured as of December 31, 2021 and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of January
1, 2022. Accordingly, updated procedures were used to roll back the total pension liability to the
measurement date. The Town’s proportion of the net pension liability was based on a projection of the
Town’s long-term share of contributions to the pension plan relative to the projected contributions of all
participating members actuarially determined. At December 31, 2021, the Town’s proportion was 3.77%
which was a slight increase from the last measurement.
Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2022 the Town recognized pension expense of $1,575,104. At June 30, 2022
the Town reported deferred outflows and inflows of resources related to pensions of $3,397,294 and
$7,543,815 respectively.
The balances of deferred outflows and inflows as June 30, 2022 consist of the following:
Deferred Deferred
Outflows Inflows
of Resources of Resources Total
Difference between expected and actual experience -$ (145,479)$ (145,479)$
Changes of Assumption 2,599,823 - 2,599,823
Net difference between projected and actual investment
earnings on pension plan investments -(7,258,923) (7,258,923)
Contributions and proportionate share of contributions 797,471 (139,413) 658,058
Total Deferred Outflows (Inflows) of Resources 3,397,294$ (7,543,815)$ (4,146,521)$
Deferred Category
The Town’s net deferred outflows/inflows of resources related to pensions will be recognized in the
future are as follows:
Period Year ended June 30 Amount
2023 (437,742)$
2024 (1,841,581)
2025 (1,183,220)
2026 (956,625)
2027 272,647
Deferred Inflows/Outflows Recognized in Future
Years (4,146,521)$
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
-66 -
E.Actuarial assumptions
The total pension liability was determined by an actuarial valuation as of January 1, 2022, using the
following actuarial assumptions, applied to all periods included in the measurement date that was rolled
back to December 31, 2021:
Valuation date……………………………… January 1, 2022
Actuarial cost method……………………… Entry Age Actuarial Cost Method.
Projected salary increases…………………..3.25%
Investment Rate of Return/Discount Rate…..6.90%
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-2021
Healthy Retiree…………...The RP-2014 Blue Collar Healthy Annuitant Mortality Table
projected generationally with Scale MP-2021
Disabled Retiree………….The RP-2014 Blue Collar Healthy Annuitant Mortality Table
set forward one year and projected generationally with Scale
MP-2021.
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, 2022
-67 -
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 future real rates of return by the target asset allocation percentage, adding
expected inflation and subtracting expected investment expense and risk margin. The target allocation
(approved by the board) and projected arithmetic real rates of return for each major asset class, after
deducting inflation, but before investment expenses, used in the deviation of the long term expected
investment rate of return assumption are summarized in the following table:
Asset Class Target Allocation
Long-Term Expected
Real Rate of Return
Domestic equity 22.00%6.11%
International developed markets equity 11.50%6.49%
International emerging markets equity 4.50%8.12%
Core fixed income 15.00%0.38%
High-yield fixed income 8.00%2.48%
Real estate 10.00%3.72%
Timber Land 4.00%3.44%
Hedge fund, GTAA, Risk parity 10.00%2.63%
Private equity 15.00%9.93%
Total 100.00%
For the year ended December 31, 2021 the annual money weighted rate of return on pension Plan
Investments, Net of Pension Plan Investment expense was 19.75%. 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 6.90%. The projection of cash flows used
to determine the discount rate assumed plan member contributions will be made at the current
contribution rate and that employer contributions will be made at rates equal to the actuarially determined
contribution rate. Based on those assumptions, the plan fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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H. Sensitivity of the net pension liability to changes in the discount rate
The following presents the net pension liability, calculated using the discount rate of 6.90%, as well as
what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point
lower (5.90%) or 1 percentage point higher (7.90%) than the current rate:
1% Decrease
(5.90%)
Current Discount
Rate (6.90%)
1% Increase
(7.90%)
The Town's proportionate
share of the net pension
liability 30,486,709$ 20,731,085$ 12,525,027$
Detailed information about the pension plan’s fiduciary net pension is available in a separately issued
Barnstable County Retirement Association financial report.
NOTE 16 – 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,
2022, 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 (9 years remaining), and the
estimated liability has been recorded in the Statement of Net Position, Governmental Activities. The
$252,900 reported as landfill postclosure liability at June 30, 2022 is based on what it would cost to
perform all post-closure care at June 30, 2022. 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, 2022, cannot be ascertained, management believes any resulting liability should not materially affect
the financial position at June 30, 2022.
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 17 – 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 18 – RESTATEMENT DUE TO A CHANGE IN ACCOUNTING STANDARD AND
PRIOR PERIOD ADJUSTMENT
During 2022, GASB Statement #87 related to leases was implemented and impacted the Golf Enterprise
fund. In addition, a change in depreciation expense was made to an asset in the Water Enterprise fund.
These changes resulted in a restatement of the business type activities beginning net position at June 30,
2021. The resulting changes in net position is detailed in the following table.
Description
Business-type
Activities Water Golf
Total Net Position at June 30, 2021,
as previously reported 15,914,811$ 10,607,271$ 5,307,540$
To adjust the beginning
depreciation expense (508,490) (508,490) -
To adjust the beginning
capital lease liability (18,500) - (18,500)
Total Net Position at June 30, 2021,
as restated 15,387,821$ 10,098,781$ 5,289,040$
Primary
Government Business-type Activities
Statement of Net Position
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 19 – IMPLEMENTATION OF NEW GASB PRONOUNCMENTS
During fiscal year 2022, the following GASB pronouncements were implemented:
The GASB issued Statement #87, Leases, which was 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 was 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 #92, Omnibus 2020, which was 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 was implemented in
2022. Management’s current assessment is that this pronouncement will not have a significant impact on
the Basic Financial Statements.
The GASB issued Statement #97, Certain Component Unit Criteria, and Accounting and Financial
Reporting for Internal Revenue Service Code 457 Deferred Compensation Plans, which was 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 was implemented for fiscal year ended June 30, 2022. 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 #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 #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, 2022
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The GASB issued Statement #98, The Annual Comprehensive Financial Report, 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 #100, Accounting Changes and Error Corrections – an amendment of
GASB Statement No. 62, which is required to be implemented in 2024. Management’s current assessment
is that this pronouncement will not have a significant impact on the Basic Financial Statements.
The GASB issued Statement #101, Compensated Absenses, which is required to be implemented in
2025. 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, 2022
Schedule of the Town’s Proportionate Share of the Net Pension Liability
December 31, 2021 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 3.77%3.51%3.68%3.72%3.68%3.47%3.60%3.62%
Town's proportionate share of the net pension liability 20,731,085$ 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 12,095,748$ 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 171.39%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 75.07%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, 2022
December 31 ,2021 December 31 ,2020 December 31 ,2019 December 31 ,2018 December 31 ,2017 December 31 ,2016 December 31 ,2015 December 31 ,2014
Statutory required contribution 2,776,801$ 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 (2,776,801) (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 12,095,748$ 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 22.96%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, 2022
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
2022 12,339,041$ 990,157$ 62.03%
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, 2022
Schedule of the Town’s Net OPEB Liability and Related Ratios
June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Total OPEB Liability
Service Cost 559,500$ 533,728$ 542,478$ 1,010,441$ 1,032,989$ 1,200,462$
Interest 1,224,550 1,372,066 1,335,290 920,650 857,050 686,109
Differences between expected and actual experience 635,738 (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 (815,440) (731,652) (791,361) (707,276) (554,673) (530,788)
Net Change in total OPEB liability 1,604,348 (1,415,832) 479,728 1,068,241 (4,712,290) (1,222,020)
Total OPEB liability-beginning 17,334,893 18,750,725 18,270,997 17,202,756 21,915,046 23,137,066
Total OPEB liability-ending (a)18,939,241 17,334,893 18,750,725 18,270,997 17,202,756 21,915,046
Plan fiduciary net position
Contributions-employer 1,115,440 981,652 991,361 807,276 609,673 605,788
Net investment income (142,227) 686,730 38,566 106,780 125,456 199,756
Benefit payments (815,440) (731,652) (791,361) (707,276) (554,673) (530,788)
Net change in plan fiduciary net position 157,773 936,730 238,566 206,780 180,456 274,756
Plan fiduciary net position - beginning 3,136,620 2,199,890 1,961,324 1,754,544 1,574,088 1,299,332
Plan fiduciary net position - ending (b)3,294,393 3,136,620 2,199,890 1,961,324 1,754,544 1,574,088
Town's net OPEB liability-ending (a)-(b)15,644,848$ 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 17.39%18.09%11.73%10.73%10.20%7.18%
Covered-employee payroll N/A 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 N/A 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, 2022
June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Acuarially determined contribution 1,519,478$ 1,470,762$ 1,502,340$ 1,455,051$ 1,143,921$ 1,105,238$
Contributions in relation to the actuarially
determined contribution (1,115,440) (981,652) (991,360) (807,276) (609,673) (605,788)
Contribution deficiency (excess)404,038$ 489,110$ 510,980$ 647,775$ 534,248$ 499,450$
Covered-employee payroll N/A 17,245,477$ N/A 16,171,858$ N/A 15,756,605$
Contributions as a percentage of covered-
employee payroll N/A 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, 2022
June 30, 2022 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 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, 2022
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, 2022
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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