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HomeMy Public PortalAbout20230228 - Select Board - Agenda PacketTOWN OF HOPKINTON SELECT BOARD MEETING AGENDA Tuesday,February 28,2023 6:00 PM Hopkinton Town Hall,18 Main St,Hopkinton,MA -Room 215/216 (Executive Session will be held in Room 211) Please click the link below to join the meeting: https://us02web.zoom.us/j/82917905974?pwd=cENzTWxMNXh1OHVwOHR2a1RYcC9WZz09 Passcode:793034 Or One tap mobile : US:+13092053325,,82917905974#or +13126266799,,82917905974# Or Telephone: Dial(for higher quality,dial a number based on your current location): US:+1 309 205 3325 or +1 312 626 6799 or +1 646 876 9923 or +1 646 931 3860 or +1 301 715 8592 or +1 305 224 1968 or +1 346 248 7799 or +1 360 209 5623 or +1 386 347 5053 or +1 408 638 0968 or +1 507 473 4847 or +1 564 217 2000 or +1 669 444 9171 or +1 669 900 6833 or +1 689 278 1000 or +1 719 359 4580 or +1 253 205 0468 or +1 253 215 8782 Webinar ID:829 1790 5974 International numbers available:https://us02web.zoom.us/u/kcsaXwK5wF 6:00 PM CALL TO ORDER 1.EXECUTIVE SESSION a.Pursuant to M.G.L.c.30A,§21(a)(purpose 3)to consider strategy with respect to collective bargaining relative to Police,Fire and Communications Unions because an open meeting may have a detrimental effect on the negotiating position of the Board; b.Pursuant to M.G.L.c.30A,§21(a)(purpose 2)to consider strategy with respect to negotiations with non-union personnel (Police Chief and Town Manager) c.Pursuant to M.G.L.c.30A,§21(a)(purpose 6)to consider the purchase,lease,sale or value of real estate in relation to properties in the vicinity of Town Hall,0 Spring Street,Map R23 Block 100 Lot 0 West Main Street,Map R23 Block 73 Lot A and Block 73 Lot B Rear West Main Street,and 3 contiguous parcels on College Street totalling 20.74 acres because an open meeting may have a detrimental effect on the negotiating position of the Board;and d.Approve Executive Session Minutes (2/7/23,2/14/23) 6:30 PM CALL TO ORDER -OPEN SESSION 2.PLEDGE OF ALLEGIANCE 6:31 PM PUBLIC FORUM 3.Residents are invited to share ideas,opinions or ask questions regarding Town Government. 6:40 PM ELEMENTARY SCHOOL BUILDING COMMITTEE 2 ELMWOOD SCHOOL PREFERRED REPLACEMENT OPTION Page 1 4.The Elementary School Building Committee 2 will ask the Select Board to consider voting on the preferred schematic option and site for replacing Elmwood School.The School Committee will be in attendance. Supporting Exhibits:ESBC-2 Presentation 7:00 PM FY 2022 AUDIT REPORT 5.The Select Board will receive an update on the Town’s FY22 Audited Financial Statements. Supporting Exhibits:Memo,Auditor ’s Report 7:15 PM PUBLIC INFORMATION SESSION ON PROPOSED GENERAL BYLAW AMENDMENTS 6.The Select Board will hold a public information session on proposed amendments to the General Bylaws which are on the warrant for the 2023 Annual Town Meeting.The proposed General Bylaw amendments are: ●Housekeeping Amendment -Delete Definition (Ch.1,Art.V)-Sponsor:Town Clerk ●Minutes Bylaw Amendment (Ch.5,Art.VIII)-Sponsor:Town Clerk ●Leash Law Bylaw Amendment (Ch.62,Art.III)-Sponsor:Select Board ●Short Term Rental Bylaw -Sponsor:Select Board ●Gun Club Indoor Shooting -Sponsor:Citizens Petition Supporting Exhibits:Description of Amendments;Text of Amendments 7:45 PM PUBLIC HEARING -FY24 COMPREHENSIVE BUDGET 7.The Select Board will hold a public hearing on the proposed FY24 Comprehensive Budget,which includes operating budgets and capital project requests.The Board is seeking comments,questions and ideas. Supporting Exhibits:FY24 Budget Questions for Select Board;Comprehensive Budget information: https://www.hopkintonma.gov/departments/town_clerk/town_meeting.php 8:15 PM 127th BOSTON MARATHON,APRIL 17,2023 8.The Select Board will: ●Consider approving a Parade Permit for the 127th Boston Marathon,to be held on Monday,April 17,2023 with the starting point at E.Main St.adjacent to the Hopkinton Common and ending point at Route 135 at Hopkinton/Ashland line. The road closures will be variable starting at 7:00 AM and will be determined by the Hopkinton Police Department as the event gets closer. ●Receive an update on the Boston Marathon starting line re-design. Supporting Exhibits:Parade Permit Applications and supporting documents;Permitting Team Comments;Statline re-design proposed plans. 8:30 PM CELEBRATING ASHLAND’S PLACE IN BOSTON MARATHON HISTORY 9.The Select Board will consider acknowledging,honoring and celebrating Ashland’s history in the Boston Marathon.2023 marks the 100th anniversary of the last time Ashland hosted the start of the Boston Marathon. 8:40 PM CONSENT AGENDA 10.The Select Board will consider the following consent agenda: Page 2 a.MINUTES -The Select Board will consider approving the Minutes of the February 7th and 14th,2023 meetings. b.AMBULANCE GIFT -The Select Board will consider accepting an Ambulance Fund Gift of $25.00 from Karen Woodbury in memory of Julia Harris. c.BOARD/COMMITTEE APPOINTMENTS -The Select Board will consider re-appointing Cristine Enos to the Cultural Council to a term ending on 3/10/2026. d.MARATHON FUND REQUEST -The Select Board will consider approving the following Marathon Fund requests: 1.$2,600 to the class of 2023 of which $500 will be used for a DJ at the Gillette dinner for the Seniors and their parents and $2,100 will be used for Police Detail for the car parade. 2.$2,000 to the Senior Center to pay for exercise classes at the Senior Center. 3.$1,500 to the Hopkinton Police Association for buying fish to stock the pond at the Hopkinton Sportsmen’s Association for the May 13,2023 fishing derby. Supporting Exhibits:Marathon Fund Request Forms 8:45 PM TOWN MANAGER REPORT 11.Town Manager will report on the following: a.Draft SWAP/TRIC Shared Housing Services (SHSO)Intermunicipal Agreement b.Main Street Corridor Project c.Per-and Polyfluoroalkyl Substances (PFAS)treatment project d.Massachusetts Water Resources Authority (MWRA)Southborough Interconnection project e.Tax relief remarks Supporting Exhibits:Town Manager Report 8:50 PM LIAISON REPORTS/BOARD INVITES 12.Supporting Exhibit:FY 23 Liaison Assignments;Invite-Cultural Council Artists Reception 8:55 PM FUTURE BOARD AGENDA ITEMS 13.Board members will identify future agenda items. Supporting Exhibit:Board Member Future Agenda Items 9:00 PM ADJOURN Correspondence to Select Board 1.Email -Municipal Electricity Aggregation -2-13-23 2.Board of Health Violation Notice 3.Verizon Fios -LFA Notice -Mexicanal HD 4.Public Hearing Notice -Zoning Bylaw Amendments -3-6-23 5.Email from Keith Rowe 2-17-23 re proposed Gun Club shooting bylaw 6.Email from Sarah &Ben Paharik regarding Housing by-law 2-21-23 7.Board of Appeals Notice of Decision -18 Kruger Road 8.8 Pike St.Support for Short Term Rental Bylaw 9.Email -Support of Outdoor Gun Shooting Ban -2-20-23 Page 3 Upcoming Select Board Meetings 1.March 14,2023 2.March 28,2023 3.April 4,2023 4.April 11,2023 The listed matters are those reasonably anticipated by the Chair to be discussed at the meeting.Not all items may in fact be discussed and other items not listed may also be brought up for discussion to the extent permitted by law.Unless an agenda item is a posted public hearing,the matter may be considered earlier than the indicated time if there are last minute cancellations or other unforeseen events which cause the Board to move more quickly through the agenda. Page 4 SELECT BOARD MEETING February 28, 2023 WEBSITE: elmwoodproject.com ELMWOOD SCHOOL, HOPKINTON Hopkinton Elmwood Elementary School Option Evaluation Criteria 1.Education Program Accommodation 2.Cost (above baseline) 3.Schedule Duration 4.Disruption to Education During Construction/Incl. of Fields 5.Sustainability 6.Net Zero Achievable 7.Construction impact to Neighbors 8.Swing Space 9.Traffic 10.Parking and On-site Circulation 11.Permitting & Approvals Complexity 12.School Future Growth and Flexibility 13.District Operations/Bussing 14.Public Safety Considerations 15.Site Complexities (wetlands, ledge, access, etc.) 16.Walkability/bikeabilty 17.Proximity to public Utilities ELMWOOD SCHOOL, HOPKINTON HAYDEN ROWE VILLAGE –SITE PLAN-EAST HR7E: GR2-4 MARATHON SCHOOL WETLAND WALKING PATH WETLAND WETLAND WETLAND ELMWOOD SCHOOL, HOPKINTON HAYDEN ROWE VILLAGE –SITE PLAN-EAST HR7E: GR2-4 PARKING COURTS CAR DROP BUS DROP TO MARATHON SCHOOL (4) ½ FIELD SIZED PE ZONES RAIN GARDEN WALKING PATH PARKING RECESS FIELD RECESS ELMWOOD SCHOOL, HOPKINTON MEDIA CENTER ART ACADEMIC WING OPEN TO BELOW ACADEMIC WING HAYDEN ROWE VILLAGE-3 WING -FLOOR PLANS HR7: GR2-4 ACADEMIC WING GYM MUSIC CAFETERIA & STAGE ADMIN & GUID ACADEMIC WING MAIN ENTRY ACADEMIC WING ACADEMIC WING ROOF FIRST FLOOR PLAN SECOND FLOOR PLAN ART, MUSIC, TECH CLASSROOMS ADMINISTRATION SPECIAL EDUCATION PUBLIC (GYM, CAF, MEDIA) UTILITY AND SUPPORT LEGEND: OPEN TO BELOW MEDIA CENTER ROOF STE ACADEMIC WING ACADEMIC WING ACADEMIC WING THIRD FLOOR PLAN ESBC Evdludtlon Ratings Evaluation Matrix - Hopkinton Elmwood Elementary School feasibility Study Site Concept Options 2 3 4 S Advenrglous . .. Least Advantageous Ins advantageous Neutral CyeaVon from it/ Concept Options 'Cote Repair Addition & Renovation New School on Existing Elmwood Site New School on H yden Rowe Sites Updated, 02/15/2023 Existin: Buildi -: Onl Addition & Renovation Fiat Plan Villa a Pinwheel Fast Pinwheel West Villa;' East Vi- a West 3 Win; Vilt, ,e West t Win V,Ba-r West BRA AR.1 LE .4 EEG HR4 C HR4-W HR6-E HR6-W HR7-W HR7 E Evaluation Criteria Primary NesppnsiMMy ` "hr n.,,, _•a .<poruc' of Er': irg Ik.lc %c - and held Additions totem, nl bast flat school of Swing Soo<r New boldest in (runt of the Lusting &vlWrg. r•^ 5,400l on t "sting''.'Gird 'e footprint 'wooers roll school Sarre Space New XnoG or. Nee Sne asrp on the Todaro Parcel New Sheol 0" "..""o c� PetePete the New SOW an New Site tleep on the iodate Parcel New School an New 5rte on Marathon Parcel New S ool on New Sor • School Marathon Pete! r.r V, Xhca cri Yee' Site deep or the Todaro Panel Consldaratens Project kedge .• ; et =y� �7 1p _ ..""' ems" 1 ' :Pi , '1";17 :1:7:2;(i �" a _ e ,et^• ./�.,.. v t � !fit �[ _ - _ _4'. i , \ ` • f. 4-'''''C". v i Education Program Accommodation Perkins Al new an budding options c meet the educational program and most meat key adl,anies. Using 'misting building 4 not optima: seam sites or adjacenies Costs (above baseline) Perkins & Vertex Schedule Duration Vertex Bolding swing soma adds duration, phased renovations take longer. NR East schedule a little longer to Install 011111104. roads. etc duper In the me Disruption to Education during construction HPS (Perkins, Unripe 1 Occupied Renovation very diswptne. Moving students to swine space, deruptire, building very close to the existing building was Sbar:Rive. Sufficient separation w era one Hayden Sustalnablkty Perkins tontine l on ,n options.t thermal Workingl,0, withefficiency Optimal solar onentaenvelope bldg enrebpe Is challenging to thermal efficiency Net Zero Achievable Perkins ESBC ro make decisions on Nil. Elmwood Could be limiteron, of PV with canopy or Geothermal wells Construction Impact to Neighbors ESBC (Perkins, Veereev E Impacts to neighborhoods and commenter arterial roadways In both options. Blasting at Elmwood Swing Space E$BC No offsite swing space is avanable. Elmwood need site swing space for parting and play fields for geothermal Traffic Perkins Both sites have- 2 means secess & egress, off busy roads, along commuter routes. 00 has moan of centralizing traffic withthe other uhools in Town. Increased crosstown Traffic from Park me and per•si; a Circulation Perkins HR has more capacity to handle volume of 'rank and parking on sea and auanmodatethe bus Queue Permitting & Approvals Complexity Perkins & Vertex Conservation Commission wetlands review, Planning Board eery renew, open spate rei Add Fire 1 review, n ledge approve any ledge blasting. AccesflbEny w4*, Add Reno MAAO School Future Growth and Flexibility ESBC, HPS mush greater tenni:dons at Ekmwood on where future additions or parking could be added District Operations & Busing HPS longer bus ride tines and double pickups in nieghborhmsds with Elmwood site. Faclhlies and Central Admit dose, proximity h. shared resovrte, Public Safety Considerations ESBC (Perkins, Vwrlae 1 full vehsdoar access around buildings, lines of sight for fest responders Site Complexities (wetlands, Ledge, restrictions, etc.) Perkins set back and sae teutIctions from Wetlands Gas easement and ledge at Elmwood. Wetlands at NR Walkabdty& Blkeabdlty ESBC Beth sites are off busy roads with limited sidewalks on one side of the road, narrow sidewalln with no buffer Atcess to Public Utilities Perkins HR East has a longer run to instal utilities ELMWOOD SCHOOL, HOPKINTON Comparative Cost Prelim. Schematic Report Town of Hopkinton 2/15/2023 Elmwood Elementary School Project Selected Option Elmwood Bar Elmwood Village Hayden Rowe Pinwheel Hayden Rowe Pinwheel Hayden Rowe Village Hayden Rowe Village Hayden Rowe 3- Wing Village EE4 EE6 HR4E HR4W HR6E HR6W HR7E Grades 2-4 2-4 2-4 2-4 2-4 2-4 2-4 Approx. Bldg Size - GSF 176,106 176,106 176,106 176,106 176,106 176,106 176,106 Construction Cost Only PM&C Estimate****131,298,102$ 134,370,983$ 135,138,874$ 133,801,762$ 134,045,427$ 132,708,316$ 135,138,874$ A.M. Fogarty Estimate****131,175,008$ 134,493,617$ 135,633,650$ 134,133,650$ 134,136,841$ 132,636,841$ 135,633,650$ Potential Deducts*****(1,700,000)$ (1,700,000)$ (8,457,000)$ (8,390,000)$ (8,402,000)$ (8,335,000)$ (8,457,000)$ 6,600,000$ 28,000,000$ Soft Costs = (6% Construction Contingency, 3% Project Contingency, Consultant Fees, Furniture Fixtures & Equipment, Technology, Moving, Testing & Inspections, Legal, Insurance, etc. ) Soft Cost Multiplier 28.8%28.8%28.8%28.8%28.8%28.8%28.8% Estimated Soft Costs 37,813,853$ 38,698,843$ 38,919,996$ 38,534,907$ 38,605,083$ 38,219,995$ 38,919,996$ Total Project Budget After Deducts*****174,000,000$ 199,000,000$ 163,000,000$ 162,000,000$ 162,000,000$ 160,000,000$ 163,000,000$ High End of Range for Total Project Budget ****176,000,000$ 201,000,000$ 174,000,000$ 172,000,000$ 173,000,000$ 171,000,000$ 174,000,000$ *Carried the PM&C Estimate for Total Project Cost calculations ** Code Repair Option is not compliant with the educational Plan. Accordingly, the MSBA would not provide reimbursement under the Core Program *** Add/Reno Option is not considered as it is a 2-3 grade configuration, and School Committee Voted to Pursue a 2-4 Grade Configuration **** Base Estimate assumes full geothermal HVAC system and CM at Risk Procurement *****Deduct Alternates assumes selection of hybrid geothermal HVAC for all schemes and Design Bid Build procurement for Hayden Rowe Schemes Only Elmwood Bar(EE4) swing space calculated using 5% phasing contingency Swing Space ELMWOOD SCHOOL, HOPKINTON Hayden Rowe Street/Grove Street Corridor New School School Grades Timings Marathon PK – 1 8:55 AM – 3:15 PM Elmwood 2 – 3 8:55 AM – 3:15 PM Hopkins 4 – 5 8:55 AM – 3:15 PM Middle School 6 – 8 8:00 AM – 2:25 PM High School 9 – 12 8:00 AM – 2:25 PM 1.2 Miles ELMWOOD SCHOOL, HOPKINTON PSR Schedule Milestones -Decisions •2/2/23 Sch. Comm votes to Recommend Grade Configuration to ESBC •Selected 2-4 Grade Configuration •2/13/23 ESBC Reviews and Votes Preferred Schematic Option (picks site, location on site, building size, etc.) •Selected Option HR7E •2/16/23 Sch. Comm votes to endorse Option Recommendation of ESBC •Voted to Endorse Selected Option •2/28/23 Select Board votes to endorse Option Recommendation of ESBC •3/1/23 ESBC Approves Submission of Preferred Schematic Report •3/2/23 Project Team Submits PDP Report to MSBA TOWN OF HOPKINTON Accounting/Procurement Department 18 Main St., Hopkinton MA 01748 TO:Select Board FROM: Elizabeth Rourke, Senior Accounting Manager/Town Accountant VIA: Norman Khumalo, Town Manager DATE:February 28, 2023 SUBJ:Fiscal Year 2022 Audit Results As is the consistent yearly practice, the Town of Hopkinton was audited by an independent Certified Public Accounting firm in the Fiscal Year 2022. The Fiscal Year 2022 audit process was successfully completed. The auditors issued an opinion that the financial statements were presented fairly, in all material respects, in accordance with Generally Accepted Accounting Principles (GAAP). The auditors did not identify any violations in the expenditure of federal awards. These results mean that the Town will continue to have access to the bond markets and support from the federal government. The primary purpose of an audit is for an independent auditor to verify that the entity’s financial records are all being kept in accordance with Generally Accepted Accounting Principles (GAAP), and that the entity is complying with all relevant accounting and reporting requirements. Hopkinton retains responsibility for the integrity of the financial statements and the internal control environment. The auditor's role is limited to expressing a reasonable opinion of the financial statements. The Towns auditor, Roselli, Clark & Associates, issued an opinion that the Fiscal Year 2022 Financial Statements are presented fairly in all material respects. This milestone meets the requirement for the Town to continue to have a bond rating by Standard & Poor's and access the bond markets. The issuance of audited financial statements does not, in and of itself, state or imply that an organization is or is not financially healthy. Instead, an audit provides reasonable assurance that the financial statements accurately reflect the financial status of an organization. The rating agencies and potential bondholders use this uniform presentation to analyze the financial health of an organization and compare it consistently to other organizations issuing debt. The 2022 Annual Town Meeting authorized several projects that involve issuing bonds. These projects were approved at the Town Election on May 16, 2022, giving the Town Treasurer and Select Board authorization to issue debt to move the approved projects forward. A financial statement audit is a component of carrying out the actions approved by Town Meeting and Hopkinton voters. In addition to a financial statement audit, Hopkinton was required to undergo a Single Audit because more than $750,000 of federal funds were expended in Fiscal Year 2022. Hopkinton generally receives more than $750,000 in federal funds each year, primarily through school special education programs. In a Single Audit, auditors examine federal funds using guidance from the Federal Office of Management and Budget. The auditors did not identify questionable costs or material weaknesses.. The audit report is posted to a federal database as part of the Federal Government's oversight of grant awards. The annual audit process meets several regulatory requirements and supports the continuous improvement of the internal control environment in Hopkinton. The Finance team continues to identify ways to automate processes that improve fiscal integrity and streamline operations.Audit reports are available for public review on the Accounting Department's page on the Town website. TOWN OF HOPKINTON, MASSACHUSETTS FEDERAL AWARD REPORTS PURSUANT TO THE UNIFORM GUIDANCE YEAR ENDED JUNE 30, 2022 TOWN OF HOPKINTON, MASSACHUSETTS TABLE OF CONTENTS YEAR ENDED JUNE 30, 2022 Page Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...................................... 1-2 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by Uniform Guidance ................................. 3-5 Schedule of Expenditures of Federal Awards .......................................................................... 6-8 Notes to Schedule of Expenditures of Federal Awards .............................................................. 9 Schedules of Findings and Questioned Costs ............................................................................ 10 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Members of the Select Board Town of Hopkinton, Massachusetts We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Hopkinton, 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 Hopkinton, Massachusetts’s basic financial statements and have issued our report thereon dated December 14, 2022. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses, or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Town of Hopkinton, Massachusetts 1 Federal Awards Reports Town of Hopkinton, Massachusetts Page Two Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Roselli, Clark and Associates Certified Public Accountants Woburn, Massachusetts December 14, 2022 Town of Hopkinton, Massachusetts 2 Federal Awards Reports INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Members of the Select Board Town of Hopkinton, Massachusetts Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the Town of Hopkinton, Massachusetts’ compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the Town of Hopkinton, Massachusetts’ major federal programs for the year ended June 30, 2022. The Town of Hopkinton, Massachusetts’ major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the Town of Hopkinton, Massachusetts complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Town of Hopkinton, Massachusetts and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the Town of Hopkinton, Massachusetts’ compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Town of Hopkinton, Massachusetts’ federal programs. Town of Hopkinton, Massachusetts 3 Federal Awards Reports Town of Hopkinton, Massachusetts Page Two Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Town of Hopkinton, Massachusetts’ compliance based on our audit. 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, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Town of Hopkinton, Massachusetts’ compliance with the requirements of each major program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Audit Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain skepticism throughout the audit. • Identify and assess the risks of material noncompliance, 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 Town of Hopkinton, Massachusetts’ compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the Town of Hopkinton, Massachusetts’ internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Town of Hopkinton, Massachusetts’ internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Town of Hopkinton, Massachusetts 4 Federal Awards Reports Town of Hopkinton, Massachusetts Page Three Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibility for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the Town of Hopkinton, 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 Hopkinton, Massachusetts’s basic financial statements. We have issued our report thereon dated December 14, 2022, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance, and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Roselli, Clark & Associates Certified Public Accountants Woburn, Massachusetts December 14, 2022 Town of Hopkinton, Massachusetts 5 Federal Awards Reports TOWN OF HOPKINTON, MASSACHUSETTS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2022 See notes to Schedule of Expenditures of Federal Awards Federal Grantor /Assistance Passed Pass-Through Grantor /Listing Pass-Through Through to Federal Program Title Number Number Subrecipients Expenditures U.S. Department of Agriculture Child Nutrition Cluster Passed through the Commonwealth of Massachusetts - Department of Elementary and Secondary Education School Breakfast Program 10.553 09-139 -$ 94,329$ COVID-19 - National School Lunch Program:10.555 09-139 107,365 National School Lunch Program:10.555 09-139 Cash Assistance - 1,474,320 Non-Cash Assistance (Commodities)- 66,197 Total National School Lunch Program - 1,647,882 Total Child Nutrition Cluster - 1,742,211 State Pandemic Electronic Benefit Transfer (P-EBT) Administrative Costs Grants 10.649 Not available - 3,684 Total U.S. Department of Agriculture - 1,745,895 U.S. Department of Justice Direct Award Bulletproof Vest Program 16.607 - 1,899 Passed through the Commonwealth of Massachusetts - Executive Office of Public Safety & Homeland Security COVID-19 - Coronavirus Emergency Supplemental Funding 16.034 SCEPSSFT2021COVIDHOPKI - 1,255 Total U.S. Department of Justice - 3,154 U.S. Department of the Treasury Direct Award COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 - 85,146 Passed through the Commonwealth of Massachusetts - Executive Office for Administration and Finance COVID-19 - Coronavirus Relief Fund 21.019 COVID19 139 - 116,759 Total U.S. Department of the Treasury - 201,905 (Continued) Town of Hopkinton, Massachusetts 6 Federal Awards Reports TOWN OF HOPKINTON, MASSACHUSETTS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2022 See notes to Schedule of Expenditures of Federal Awards Federal Grantor /Assistance Passed Pass-Through Grantor /Listing Pass-Through Through to Federal Program Title Number Number Subrecipients Expenditures U.S. Department of Education Special Education Cluster (IDEA) Passed through the Commonwealth of Massachusetts - Department of Elementary and Secondary Education Special Education - Grants to States 84.027 231-483247-2021-0139 - 3,250 Special Education - Grants to States 84.027 240-534173-2022-0139 - 397,029 Special Education - Grants to States 84.027 240-390932-2021-0139 - 410,224 Special Education - Grants to States 84.027 274-482617-2021-0139 - 4,639 COVID-19 - Special Education - Grants to States 84.027X 252-532490-2022-0139 - 117,188 Total Special Education - Grants to States - 932,330 Special Education - Preschool Grants 84.173 262-534174-2022-0139 - 12,583 Special Education - Preschool Grants 84.173 262-390933-2021-0139 - 10,693 Special Education - Preschool Grants 84.173 298-481662-2021-0139 - 927 COVID-19 - Special Education - Preschool Grants 84.173X 264-532499-2022-0139 - 6,095 Total Special Education - Preschool Grants - 30,298 Total Special Education Cluster (IDEA)- 962,628 Title I Grants to Local Educational Agencies 84.010 305-554011-2022-0139 - 3,286 Title I Grants to Local Educational Agencies 84.010 305-403392-2021-0139 - 57,986 Total Title I Grants to Local Educational Agenciess - 61,272 Career and Technical Education - Basic Grants to States 84.048 406-418255-2021-0139 - 3,022 Total Career and Technical Education - Basic Grants to States - 3,022 English Language Acquisition State Grants 84.365 180-554015-2022-0139 - 15,214 English Language Acquisition State Grants 84.365 180-404786-2021-0139 - 28,173 Total English Language Acquisition State Grants - 43,387 Supporting Effective Instruction State Grants 84.367 140-554014-2022-0139 - 3,547 Supporting Effective Instruction State Grants 84.367 140-404787-2021-0139 - 31,651 Total Supporting Effective Instruction State Grants - 35,198 Student Support and Academic Enrichment Grants 84.424 309-554016-2022-0139 - 7,475 Student Support and Academic Enrichment Grants 84.424 309-404790-2021-0139 - 6,868 Total Student Support and Academic Enrichment Grants - 14,343 COVID-19 - Education Stabilization Fund 84.425D 113-378313-2021-0139 - 365 COVID-19 - Education Stabilization Fund 84.425D 115-497759-2021-0139 - 100,445 COVID-19 - Education Stabilization Fund 84.425U 119-583150-2022-0139 - 87,677 Total COVID-19 - Education Stabilization Fund - 188,487 Total U.S. Department of Education - 1,308,337 (Continued) Town of Hopkinton, Massachusetts 7 Federal Awards Reports TOWN OF HOPKINTON, MASSACHUSETTS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2022 See notes to Schedule of Expenditures of Federal Awards Federal Grantor /Assistance Passed Pass-Through Grantor /Listing Pass-Through Through to Federal Program Title Number Number Subrecipients Expenditures U.S. Department of Health and Human Services Direct Award Drug-Free Communities Support Program Grant 93.276 - 49,343 Passed through the Commonwealth of Massachuetts - Department of Public Health Block Grants for Prevention and Treatment of Substance Abuse 93.959 INTF2354M78220129168 - 36,686 Total U.S. Department of Health and Human Services - 86,029 U.S. Department of Homeland Security Direct Award Staffing for Adequate Fire and Emergency Response 97.083 - 185,971 Passed through the Commonwealth of Massachusetts - Massachusetts Emergency Management Agency Disaster Grants: Public Assistance (Presidentially Declared)97.036 CTFEMA4496HOPKI00224 - 86,596 Emergency Management Performance Grants 97.042 FY21EMPG2000002HOPKI - 4,448 Total U.S. Department of Homeland Security - 277,015 TOTAL FEDERAL GRANT EXPENDITURES -$ 3,622,335$ (Concluded) Town of Hopkinton, Massachusetts 8 Federal Awards Reports TOWN OF HOPKINTON, MASSACHUSETTS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2022 A. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Hopkinton, Massachusetts (the Town) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town. B. Summary of Significant Accounting Policies Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. The accompanying Schedule includes the federal grant transactions of the Town. Although some of these programs may be supplemented with state and other revenue, only federal activity is shown. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. The Town has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. C. U.S. Department of Agriculture Programs The Town receives non-cash commodities from the U.S. Department of Agriculture as a part of the National School Lunch program. The amounts reported as non-cash assistance represent the fair market value of these commodities received during the year. The amounts reported as cash assistance represent federal reimbursements for meals provided. D. U.S. Department of Homeland Security Programs U.S. Department of Homeland Security’s Disaster Grants – Public Assistance (Presidentially Declared Disaster) expenditures are recognized when the Federal Emergency Management Administration (FEMA) approves the Town’s project worksheet (PW) and the Town has incurred the eligible expenditures. The amounts reported in the Schedule include $86,596 of expenditures incurred in prior fiscal years but awarded by FEMA in the current fiscal year. Town of Hopkinton, Massachusetts 9 Federal Awards Reports TOWN OF HOPKINTON, MASSACHUSETTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2022 A. Summary of Audit Results FINANCIAL STATEMENTS Type of auditor’s report issued Unmodified Internal control over financial reporting: Material weaknesses identified No Significant deficiencies identified not considered to be material weaknesses No Noncompliance material to financial statements noted? No FEDERAL AWARDS Internal control over major programs: Material weaknesses identified No Significant deficiencies identified not considered to be material weaknesses No Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516 No IDENTIFICATION OF MAJOR PROGRAMS Name of Federal Program AL Number(s) Child Nutrition Cluster 10.553 & 10.555 COVID-19 – Education Stabilization Fund 84.425 Dollar threshold used to distinguish between type A and type B programs $ 750,000 Auditee qualified as a low-risk auditee? Yes B. Financial Statement Findings None C. Federal Award Findings and Questioned Costs None Town of Hopkinton, Massachusetts 10 Federal Awards Reports TOWN OF HOPKINTON, MASSACHUSETTS Basic Financial Statements and Additional Information Year Ended June 30, 2022 TOWN OF HOPKINTON, MASSACHUSETTS TABLE OF CONTENTS YEAR ENDED JUNE 30, 2022 Page(s) INDEPENDENT AUDITORS’ REPORT 1 – 3 MANAGEMENT’S DISCUSSION AND ANALYSIS 4 – 11 BASIC FINANCIAL STATEMENTS: Government-Wide Financial Statements: Statement of Net Position 12 – 13 Statement of Activities 14 Governmental Funds Financial Statements: Balance Sheet 15 Reconciliation of the Balance Sheet Total Fund Balances to the Statement of Net Position 16 Statement of Revenues, Expenditures and Changes in Fund Balances 17 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 18 Proprietary Funds Financial Statements: Statement of Net Position 19 – 20 Statement of Revenues, Expenses and Changes in Net Position 21 Statement of Cash Flows 22 Fiduciary Funds Financial Statements: Statement of Fiduciary Net Position 23 Statement of Changes in Fiduciary Net Position 24 Notes to the Financial Statements 25 – 55 REQUIRED SUPPLEMENTARY INFORMATION – UNAUDITED: Schedule of the Town’s Proportionate Share of the Net Pension Liability 56 Schedule of the Town’s Contributions to the Pension Plan 56 Schedule of the Commonwealth’s Collective Share of the Massachusetts Teachers’ Retirement System Net Pension Liability 57 Schedule of Changes in Net OPEB Liability and Related Ratios 58 Schedule of Contributions to the OPEB Plan 59 Schedule of Investment Returns 59 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund 60 Notes to Required Supplementary Information 61 INDEPENDENT AUDITORS' REPORT The Honorable Members of the Select Board Town of Hopkinton, 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 Hopkinton, Massachusetts, (the “Town”) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Town’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 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 of Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town 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 opinion. 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’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. Town of Hopkinton, Massachusetts Page 1 of 61 Basic Annual Financial Statements Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements taken as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. 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 and Government 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 and Government 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’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’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, and the schedules listed under the required supplementary information section in the accompanying table of contents be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers these to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. Town of Hopkinton, Massachusetts Page 2 of 61 Basic Annual Financial Statements We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required By Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 14, 2022 on our consideration of the Town’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Roselli, Clark & Associates Certified Public Accountants Woburn, Massachusetts December 14, 2022 Town of Hopkinton, Massachusetts Page 3 of 61 Basic Annual Financial Statements MANAGEMENT’S DISCUSSION AND ANALYSIS As the management of the Town of Hopkinton, Massachusetts (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 the information presented here in conjunction with their review of the basic financial statements, notes to the basic financial statements and required supplementary information. Financial Highlights  The Town’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by nearly $159.1 million (total net position). The Town’s total net position increased by approximately $11.3 million in fiscal year 2022, which was driven primarily by the over $10.9 million increase in net position in the Town’s governmental activities.  The Town continues to report a deficit in its unrestricted net position in its governmental activities, which totaled over $39.4 million at June 30, 2022. This deficit is primarily due to the cumulative effect of noncash, employee-benefit related liabilities surrounding pension and OPEB, which totaled approximately $53.7 million at June 30, 2022.  At the close of the current fiscal year, the Town’s governmental funds balance sheet reported a combined ending fund balance surplus of over $62.3 million, which is approximately $11.4 million higher than the prior year. The Town reported increases in fund balances in all its major governmental funds in fiscal year 2022.  Of the ending fund balances reported in the Town’s governmental funds balance sheet, over $15.6 million is available for spending at the government’s discretion as unassigned fund balance. The remainder is earmarked for specific expenditures.  At the end of the current fiscal year, the unassigned fund balance for the general fund was approximately $15.9 million. The June 30, 2022 total general fund balance exceeded $22.8 million, which is an increase of approximately $6.3 million from the prior year and represented nearly 23% of the total fiscal year 2022 general fund expenditures.  The Town’s total gross long-term debt obligations decreased nearly $1.4 million during the current fiscal year due to normal. The Town issued nearly $5.0 million in general obligation bonds in fiscal year 2022 and repaid over $6.3 million in long-term debt.  In connection with the Town’s June 2022 general obligation bond issuance, S&P affirmed the Town’s AAA credit rating. Town of Hopkinton, Massachusetts Page 4 of 61 Basic Annual Financial Statements Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements comprise three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains other required supplementary information in addition to the basic financial statements. Government-Wide Financial Statements – The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances, similar to private-sector business. The statement of net position presents information on all of the Town’s assets and deferred outflows of resources and its liabilities and deferred inflows of resources, 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 of the Town is improving or deteriorating. The statement of activities presents information showing how the Town’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 fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town include general government, public safety, highways and streets, sanitation, education, health and human services, culture and recreation, fringe benefits, and debt service. The business-type activities of the Town include its sewer and water activities. 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. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into three categories: governmental funds, proprietary and fiduciary funds. Governmental funds distinguish fund balance between amounts that are considered nonspendable, such as fund balances associated with inventories, and other amounts that are classified based on the relative strength of the constraints that control the purposes for which specific amounts can be spent. Beginning with the most binding constraints, fund balance amounts will be reported in the following classifications:  Nonspendable – amounts that cannot be spent because they are either (a) not in spendable form (i.e., inventory or prepaid items) or (b) legally or contractually required to be maintained intact.  Restricted – amounts constrained by external parties, constitutional provision or enabling legislation.  Committed – amounts constrained by a government using its highest level of decision-making authority.  Assigned – amounts a government intends to use for a particular purpose.  Unassigned – amounts that are not constrained will be reported in the general fund or in other major governmental funds if negative. Town of Hopkinton, Massachusetts Page 5 of 61 Basic Annual Financial Statements 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 fund financial 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. Reconciliations are provided in the basic financial statements to help the reader understand the differences. The Town maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the community preservation, capital projects and ARPA grant funds. Data from the other governmental funds are combined into a single, aggregated presentation. The Town adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with this budget. This schedule has been prepared as required supplementary information and can be found along with the corresponding notes to the financial statements. Proprietary Funds – Proprietary funds are used to account for a Town’s ongoing organizations and activities which are similar to those often found in the private sector. The Town utilizes the proprietary funds to report activities of its enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses enterprise funds to account for its sewer and water activities. 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 statement because 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. Notes to the 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. Other Information – In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s progress in funding its obligation to provide pension benefits and other postemployment benefits to its employees as well as a budget to actual comparison for the current year’s general fund operations. Town of Hopkinton, Massachusetts Page 6 of 61 Basic Annual Financial Statements Government-Wide Financial Statements Analysis The condensed comparative statements of net position for the two most recent years are as follows: As noted earlier, net position may serve over time as a useful indicated of a government’s financial position. The Town’s total net position increased by approximately $11.3 million in fiscal year 2022. The Town continues to recognize revenues in excess of expenses in its governmental activities, which resulted in an increase in its governmental activities’ net position of over $10.9 million ($6.2 million in fiscal year 2021). The net position reported in the business-type activities increased approximately $358,000 year-over-year. The largest portion of the Town’s net position reflects its investment in capital assets, less any related debt (netted down by those amounts expected to be reimbursed by the Commonwealth) used to acquire those assets that is still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, 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 Town’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance is classified as unrestricted net position and is a deficit balance at both June 30, 2022 and 2021. The deficit balance in unrestricted net position in the governmental activities is primarily the result of the Town’s net OPEB and pension liabilities, which totaled approximately $53.7 million and $1.1 million at June 30, 2022 in the governmental and business-type activities, respectively. June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Assets: Current and other assets 76,957,426$ 72,713,971$ 11,017,271$ 10,803,029$ 87,974,697$ 83,517,000$ Capital assets, net 177,324,417 175,026,150 43,137,014 43,458,600 220,461,431 218,484,750 Total Assets 254,281,843 247,740,121 54,154,285 54,261,629 308,436,128 302,001,750 Deferred Outflows of Resources 10,937,753 12,903,516 170,044 223,565 11,107,797 13,127,081 Liabilities: Long-term liabilities 118,619,499 123,051,497 12,656,831 14,300,983 131,276,330 137,352,480 Other liabilities 17,557,211 22,626,764 2,687,479 1,710,243 20,244,690 24,337,007 Total Liabilities 136,176,710 145,678,261 15,344,310 16,011,226 151,521,020 161,689,487 Deferred Inflows of Resources 8,705,619 5,567,722 262,633 114,300 8,968,252 5,682,022 Net Position: Net investment in capital assets 115,263,890 115,296,632 31,421,692 30,684,575 146,685,582 145,981,207 Restricted 44,481,336 37,569,207 - - 44,481,336 37,569,207 Unrestricted (39,407,959) (43,468,185) 7,295,694 7,675,093 (32,112,265) (35,793,092) Total Net Position 120,337,267$ 109,397,654$ 38,717,386$ 38,359,668$ 159,054,653$ 147,757,322$ TotalGovernmental Activities Business-Type Activities Town of Hopkinton, Massachusetts Page 7 of 61 Basic Annual Financial Statements The condensed comparative statements of activities for the two most recent years are as follows: Governmental Activities – Total revenues decreased over $0.6 million in fiscal year 2022. This decrease was due primarily to a nearly $5.2 million decrease in operating grants and contributions and $2.2 million decrease is capital grants and contributions. Operating grants and contributions associated with the pension payments made by the Commonwealth to the MTRS on behalf of the Town decreased nearly $7.2 million year-over-year. The decrease in capital grants and contributions was primarily due to lower roadway construction reimbursements from the Commonwealth in fiscal year 2022 versus 2021. These decreases were offset by a nearly $5.7 million, or 7.2%, increase in property taxes and $1.2 million increase in charges for services. Property taxes continue to represent the majority of the Town’s total revenues reported in its governmental activities. Property taxes represented approximately 69% and 64% of total fiscal year 2022 and 2021 revenues, respectively. Property taxes increased approximately 7.2% year-over-year, which was due to normal increases under Proposition 2 ½ together with new growth and the effects of increased property taxes associated with new debt exclusions. Operating grants and contributions represented approximately 20% and 24% of total fiscal year 2022 and 2021 revenues, respectively. The fluctuation in these ratios was due primarily to the effect of the decrease in MTRS contributions described above. No other revenues were greater than 10% of total governmental activities revenues in fiscal years 2022 or 2021. 2022 2021 2022 2021 2022 2021 Revenues: Program revenues: Charges for services 7,244,566$ 6,020,964$ 5,047,591$ 4,959,831$ 12,292,157$ 10,980,795$ Operating grants and contributions 23,849,308 29,019,086 - - 23,849,308 29,019,086 Capital grants and contributions 1,188,996 3,388,616 212,676 3,966 1,401,672 3,392,582 General revenues: Property taxes 84,458,625 78,768,793 - - 84,458,625 78,768,793 Excise taxes 3,476,790 3,375,718 - - 3,476,790 3,375,718 Intergovernmental 863,357 834,159 - - 863,357 834,159 Other 830,759 1,126,614 - 807 830,759 1,127,421 Total Revenues 121,912,401 122,533,950 5,260,267 4,964,604 127,172,668 127,498,554 Expenses: General government 8,013,585 7,779,200 - - 8,013,585 7,779,200 Public safety 11,043,184 11,850,394 - - 11,043,184 11,850,394 Education 79,308,997 82,838,382 - - 79,308,997 82,838,382 Public works 6,407,941 8,441,956 - - 6,407,941 8,441,956 Health and human services 1,752,403 1,480,457 - - 1,752,403 1,480,457 Culture and recreation 2,406,221 1,831,825 - - 2,406,221 1,831,825 Interest expense 2,040,457 2,248,814 - - 2,040,457 2,248,814 Utility services - - 4,902,549 4,944,416 4,902,549 4,944,416 Total Expenses 110,972,788 116,471,028 4,902,549 4,944,416 115,875,337 121,415,444 Change in Net Position Before Transfers 10,939,613 6,062,922 357,718 20,188 11,297,331 6,083,110 Transfers - 184,465 - 23,198 - 207,663 Change in Net Position 10,939,613 6,247,387 357,718 43,386 11,297,331 6,290,773 Net Position: Beginning of year 109,397,654 103,150,267 38,359,668 38,316,282 147,757,322 141,466,549 End of year 120,337,267$ 109,397,654$ 38,717,386$ 38,359,668$ 159,054,653$ 147,757,322$ Governmental Activities Business-Type Activities Total Town of Hopkinton, Massachusetts Page 8 of 61 Basic Annual Financial Statements Total expenses decreased over $5.5 million, or 4.8%, year-over-year. This decrease was due primarily to the approximate $7.2 million decrease in MTRS pension expense (previously described) as well as a $1.6 million decrease in benefits expense related to pension and OPEB. The Town’s largest expense category is education, which the Town continues to devote substantial resources. Education expenses decreased approximately $3.5 million year-over-year. As previously noted, MTRS expenses decreased nearly $7.2 million in fiscal year 2022, which offset the normal education spending increases budgeted by the Town. Education expenses totaled approximately 71% of total fiscal year 2022 and 2021 expenses. Public safety expenses represented 10% of total fiscal year 2022 and 2021 expenses. Public safety expenses decreased over $0.8 million year-over-year, which was due primarily to the effects of lower noncash benefits expenses as well as lower spending related to the mitigation of COVID-19. No other expense categories were greater than 10% of total expenses in fiscal years 2022 or 2021. Business-Type Activities –Revenues in the Town’s business-type activities increased approximately $296,000 year-over-year, while expenses decreased nearly $42,000. The Town’s sewer enterprise reported an approximate $46,000 decrease in net position, while the net position in its water enterprise increased nearly $404,000 year-over-year. Governmental Funds Financial Statements Analysis As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds – The focus of the Town’s governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s 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 close of the current fiscal year, the Town’s governmental funds balance sheet reported a combined ending fund balance surplus of over $62.3 million, which was approximately $11.4 million higher than the prior year. Of the ending fund balance in the governmental funds, over $15.6 million is available for spending at the government’s discretion as unassigned fund balance. The remainder is earmarked for specific expenditures. The general fund is the chief operating fund of the Town. At the end of the current fiscal year, the unassigned fund balance of the general fund exceeded $15.9 million, while total fund balance exceeded $22.8 million. 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 approximately 16% of total fiscal year 2022 general fund expenditures, while total fund balance represents nearly 23% of that same amount. The general fund reported an increase in fund balance of approximately $6.3 million in fiscal year 2022, which was primarily due to robust property tax and departmental revenue growth. The community preservation fund reported an approximate $1.0 million increase in fund balances as activity in this fund continues to be limited at this time. Town of Hopkinton, Massachusetts Page 9 of 61 Basic Annual Financial Statements The capital projects fund reported an increase of over $7.7 million, which was due primarily to the sale of approximately $5.3 million in general obligation bonds and the transfer in of over $2.4 million from the general fund and other special revenue funds. Beginning in fiscal year 2022, the Town began reporting the financial activity and position of its ARPA grant fund as a major governmental fund. The ARPA grant fund expended approximately $86,000 in fiscal year 2022 and reports cash assets of approximately $2.7 million and a corresponding unearned revenue (liability) of that same figure. The Town’s nonmajor governmental funds reported an increase of nearly $1.4 million to its fund balances, which was primarily due to the timing of receipts, particularly donations, versus expenditures. Proprietary Funds – The Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. At the end of the year, net position of the sewer and water enterprise funds were approximately $38.7 million in the aggregate. Fiduciary Funds – The Town reports the financial position and results of activities of its OPEB and private purpose trusts in its fiduciary funds financial statements. General Fund Budgetary Highlights Differences between the Town’s original budget and its final budget were due primarily to the use of free cash and transfers from special revenue funds to fund capital articles. A budget to actual schedule for the general fund has been provided as required supplementary information. Capital Asset and Debt Administration Capital Assets – As of June 30, 2022, the Town’s investment in capital assets for its governmental and business-type activities approximated $177.3 million and $43.1 million, respectively. Governmental net capital assets increased approximately $2.3 million in fiscal year 2022, while business-type net capital assets decreased over $0.3 million. Additional information on the Town’s capital assets can be found in the notes to the basic financial statements. Long-Term Debt – At the end of the current fiscal year, the Town had total long-term general obligation debt outstanding of approximately $79.3 million, which represents a decrease of approximately $1.4 million from the prior year. The Town issued nearly $5.0 million in general obligation bonds in fiscal year 2022 and repaid over $6.3 million in long-term debt. Additionally, the Town issued temporary, or short-term borrowings totaling nearly $4.9 million in June 2022. In May 2022, Standard & Poor’s Ratings Services (“S&P”) reaffirmed an “AAA” credit rating to the Town’s long-term general obligation debt, which is its highest credit rating. Additional information on the Town’s debt can in found in the notes to the basic financial statements. Town of Hopkinton, Massachusetts Page 10 of 61 Basic Annual Financial Statements Economic Factors and Next Year’s Budget  Net state aid for fiscal year 2023 is expected to approximate $9.9 million.  The Town enters fiscal year 2023 with the following financial reserves:  Certified free cash of nearly $7.2 million;  General stabilization funds of approximately $3.9 million;  Capital stabilization funds of approximately $0.4 million; and  School stabilization funds (2 in total) of approximately $3.9 million.  Inflation is expected to affect the Town in a number of areas including increased capital acquisition costs and operating expenses.  The median household income and home values within the Town significantly exceed the state- wide and national averages. Furthermore, the Town’s unemployment rates are significantly better than both the state-wide and national averages.  Approximately 17% of the Town’s property tax levy pertains to commercial and industrial taxpayers. The Town’s proximity to route 495 and the Massachusetts Turnpike make it an ideal location for many commercial concerns. The above items were considered when the Town accepted its budget for fiscal year 2023 in a May 2022 Town Meeting. The Town set its fiscal year 2023 tax rate on December 8, 2022. Requests for Information This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or request for additional financial information should be addressed to the attention of the Town Manager at the Town’s offices located at 18 Main Street, Hopkinton, Massachusetts 01748. Town of Hopkinton, Massachusetts Page 11 of 61 Basic Annual Financial Statements Governmental Business-Type Activities Activities Total Assets: Cash and cash equivalents 17,123,568$ 6,068,339$ 23,191,907$ Investments 55,603,134 - 55,603,134 Receivables, net of allowances: Property taxes 2,229,202 - 2,229,202 Excise taxes 312,745 - 312,745 Departmental, user charges and other 964,558 4,937,844 5,902,402 Intergovernmental 724,219 11,088 735,307 Land 21,715,551 3,845,100 25,560,651 Construction in-progress 5,336,365 1,301,028 6,637,393 Depreciable capital assets, net 150,272,501 37,990,886 188,263,387 Total Assets 254,281,843 54,154,285 308,436,128 Deferred Outflows of Resources: Other postemployment benefits 9,515,443 115,397 9,630,840 Pensions 1,422,310 54,647 1,476,957 Total Deferred Outflows of Resources 10,937,753 170,044 11,107,797 (continued) TOWN OF HOPKINTON, MASSACHUSETTS STATEMENT OF NET POSITION JUNE 30, 2022 Town of Hopkinton, Massachusetts Page 12 of 61 Basic Annual Financial Statements Governmental Business-Type Activities Activities Total TOWN OF HOPKINTON, MASSACHUSETTS STATEMENT OF NET POSITION JUNE 30, 2022 Liabilities: Warrants and accounts payable 3,126,763$ 182,416$ 3,309,179$ Retainage payable - 56,474 56,474 Accrued interest 677,494 103,143 780,637 Unearned revenues 2,957,053 - 2,957,053 Deposits and escrows 1,640,002 - 1,640,002 Other liabilities 11,639 - 11,639 Bond anticipation note payable 3,896,543 985,000 4,881,543 Noncurrent liabilities: Due within one year 5,247,717 1,360,446 6,608,163 Due in more than one year 118,619,499 12,656,831 131,276,330 Total Liabilities 136,176,710 15,344,310 151,521,020 Deferred Inflows of Resources: Unearned revenues 205,557 - 205,557 Other postemployment benefits 2,432,243 29,497 2,461,740 Pensions 6,067,819 233,136 6,300,955 Total Deferred Inflows of Resources 8,705,619 262,633 8,968,252 Net Position: Net investment in capital assets 115,263,890 31,421,692 146,685,582 Restricted for: Nonexpendable permanent funds 1,408,970 - 1,408,970 Expendable permanent funds 4,041,036 - 4,041,036 Community preservation 8,494,264 - 8,494,264 Other purposes 30,537,066 - 30,537,066 Unrestricted (39,407,959) 7,295,694 (32,112,265) Total Net Position 120,337,267$ 38,717,386$ 159,054,653$ (concluded) See accompanying notes to basic financial statements. Town of Hopkinton, Massachusetts Page 13 of 61 Basic Annual Financial Statements Operating Capital Charges for Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General government 8,013,585$ 815,249$ 1,376,840$ 60,000$ (5,761,496)$ (5,761,496)$ Public safety 11,043,184 3,137,002 596,090 - (7,310,092) (7,310,092) Education 79,308,997 2,225,300 19,779,062 - (57,304,635) (57,304,635) Public works 6,407,941 64,831 38,472 1,028,996 (5,275,642) (5,275,642) Health and human services 1,752,403 243,834 2,012,921 - 504,352 504,352 Culture and recreation 2,406,221 758,350 45,923 100,000 (1,501,948) (1,501,948) Interest expense 2,040,457 - - - (2,040,457) (2,040,457) Total Governmental Activities 110,972,788 7,244,566 23,849,308 1,188,996 (78,689,918) (78,689,918) Business-Type Activities: Sewer 2,644,036 2,385,269 - 212,676 (46,091)$ (46,091) Water 2,258,513 2,662,322 - - 403,809 403,809 Total Business-Type Activities 4,902,549 5,047,591 - 212,676 357,718 357,718 Total Primary Government 115,875,337$ 12,292,157$ 23,849,308$ 1,401,672$ 357,718 (78,332,200) General Revenues: Property taxes 84,458,625 - 84,458,625 Motor vehicle and other excise taxes 3,476,790 - 3,476,790 Grants and contributions not restricted to to specific programs 863,357 - 863,357 Penalties and interest on taxes 708,638 - 708,638 Unrestricted investment income 104,423 - 104,423 Other income 17,698 - 17,698 Total General Revenues and Transfers 89,629,531 - 89,629,531 Change in Net Position 10,939,613 357,718 11,297,331 Net Position: Beginning of year 109,397,654 38,359,668 147,757,322 End of year 120,337,267$ 38,717,386$ 159,054,653$ See accompanying notes to basic financial statements. TOWN OF HOPKINTON, MASSACHUSETTS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2022 Program Revenues Net (Expenses) Revenues and Changes in Net Position Town of Hopkinton, Massachusetts Page 14 of 61 Basic Annual Financial Statements Community Capital ARPA Nonmajor General Preservation Projects Grant Governmental Fund Fund Fund Fund Funds Total Assets: Cash and cash equivalents 2,234,960$ 7,438,334$ 1,368,154$ 2,675,258$ 3,406,862$ 17,123,568$ Investments 23,676,121 1,065,225 13,334,541 - 17,527,247 55,603,134 Receivables, net of allowances: Property taxes 2,204,366 24,836 - - - 2,229,202 Excise taxes 312,745 - - - - 312,745 Departmental, user charges and other - - - - 964,558 964,558 Intergovernmental - - - - 724,219 724,219 Total Assets 28,428,192 8,528,395 14,702,695 2,675,258 22,622,886 76,957,426 Total Deferred Outflows of Resources - - - - - - Total Assets and Deferred Outflows of Resources 28,428,192$ 8,528,395$ 14,702,695$ 2,675,258$ 22,622,886$ 76,957,426$ Liabilities: Warrants and accounts payable 1,572,451$ 253$ 384,715$ -$ 1,169,344$ 3,126,763$ Unearned revenues - - - 2,675,258 281,795 2,957,053 Deposits and escrows 1,640,002 - - - - 1,640,002 Other liabilities 11,639 - - - - 11,639 Bond anticipation note payable - - 3,896,543 - - 3,896,543 Total Liabilities 3,224,092 253 4,281,258 2,675,258 1,451,139 11,632,000 Deferred Inflows of Resources: Prepaid property taxes 196,515 9,042 - - - 205,557 Unavailable revenues - property taxes 1,845,672 24,836 - - - 1,870,508 Unavailable revenues - other 312,745 - - - 595,704 908,449 Total Deferred Inflows of Resources 2,354,932 33,878 - - 595,704 2,984,514 Fund Balances: Nonspendable - - - - 1,408,970 1,408,970 Restricted 831,899 8,494,264 10,479,432 - 19,409,494 39,215,089 Committed 3,974,796 - - - - 3,974,796 Assigned 2,106,293 - - - - 2,106,293 Unassigned 15,936,180 - (57,995) - (242,421) 15,635,764 Total Fund Balances 22,849,168 8,494,264 10,421,437 - 20,576,043 62,340,912 Total Liabilities, Deferred Inflows of Resources and Fund Balances 28,428,192$ 8,528,395$ 14,702,695$ 2,675,258$ 22,622,886$ 76,957,426$ See accompanying notes to basic financial statements. TOWN OF HOPKINTON, MASSACHUSETTS BALANCE SHEET JUNE 30, 2022 GOVERNMENTAL FUNDS Town of Hopkinton, Massachusetts Page 15 of 61 Basic Annual Financial Statements Total Governmental Fund Balances 62,340,912$ Capital assets used in governmental activities in the statement of net position are not financial resources and, therefore, are not reported in the funds.177,324,417 Certain receivables and revenues are deferred in the governmental funds as they are not current financial resources. These revenues are accrued under the economic resources basis of accounting.2,778,957 Deferred outflows and inflows of resources to be recognized in future expense are not available resources and, therefore, are not reported in the funds: Deferred outflows of resources - other postemployment benefits 9,515,443 Deferred outflows of resources - pensions 1,422,310 Deferred inflows of resources - other postemployment benefits (2,432,243) Deferred inflows of resources - pensions (6,067,819) Net effect of reporting deferred outflows and inflows of resources 2,437,691 Interest is accrued on outstanding long-term debt in the statement of net position but not in the funds until due.(677,494) Long-term liabilities not currently due and payable are reported in the statement of net position and not in the funds: Net other postemployment benefits liability (37,577,967) Net pension liability (16,106,260) Compensated absences (367,958) Bonds and notes payable (69,815,031) Net effect of reporting long-term liabilities (123,867,216) Net Position — Governmental Activities 120,337,267$ See accompanying notes to basic financial statements. TOWN OF HOPKINTON, MASSACHUSETTS RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO THE STATEMENT OF NET POSITION AS OF JUNE 30, 2022 Town of Hopkinton, Massachusetts Page 16 of 61 Basic Annual Financial Statements Community Capital ARPA Nonmajor General Preservation Projects Grant Governmental Fund Fund Fund Fund Funds Total Revenues: Property taxes, net of tax refunds 84,650,170$ 1,333,420$ -$ -$ -$ 85,983,590$ Intergovernmental 17,365,527 553,004 - 85,882 5,487,164 23,491,577 Motor vehicle and other excise taxes 3,463,363 - - - - 3,463,363 Licenses and permits 106,497 - - - - 106,497 Penalties and interest on taxes 708,638 - - - - 708,638 Fines and forfeitures 9,895 - - - - 9,895 Departmental and other revenues 1,305,718 - - - 5,791,885 7,097,603 Contributions and donations 753,050 - - - 2,392,084 3,145,134 Investment income (loss) 54,027 (11,713) - - 62,109 104,423 Other - - - - 17,698 17,698 Total Revenues 108,416,885 1,874,711 - 85,882 13,750,940 124,128,418 Expenditures: Current: General government 4,902,180 155,497 6,412 85,882 1,947,532 7,097,503 Public safety 6,852,202 - 358,656 - 1,688,057 8,898,915 Education 62,123,930 - 4,527,512 - 4,656,986 71,308,428 Public works 6,234,242 - 112,536 - 1,525,268 7,872,046 Health and human services 1,163,084 - - - 313,143 1,476,227 Culture and recreation 788,325 537,480 60,325 - 904,847 2,290,977 Pension and fringe benefits 11,208,844 - - - - 11,208,844 State and county charges 479,647 - - - - 479,647 Debt service: Principal 4,674,258 120,000 - - 260,000 5,054,258 Interest 2,318,241 49,018 - - - 2,367,259 Total Expenditures 100,744,953 861,995 5,065,441 85,882 11,295,833 118,054,104 Excess (Deficiency) of Revenues Over (Under) Expenditures 7,671,932 1,012,716 (5,065,441) - 2,455,107 6,074,314 Other Financing Sources (Uses): Proceeds from general obligation bonds - - 4,955,000 - - 4,955,000 Premium from bond sales - - 342,501 - - 342,501 Transfers in 672,295 - 2,413,654 - - 3,085,949 Transfers out (2,013,654) - (7,984) - (1,064,311) (3,085,949) Total Other Financing Sources (Uses) (1,341,359) - 7,703,171 - (1,064,311) 5,297,501 Change in Fund Balances 6,330,573 1,012,716 2,637,730 - 1,390,796 11,371,815 Fund Balances: Beginning of the year 16,518,595 7,481,548 7,783,707 - 19,185,247 50,969,097 End of the year 22,849,168$ 8,494,264$ 10,421,437$ -$ 20,576,043$ 62,340,912$ See accompanying notes to basic financial statements. TOWN OF HOPKINTON, MASSACHUSETTS GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2022 Town of Hopkinton, Massachusetts Page 17 of 61 Basic Annual Financial Statements Change in Fund Balances — Total Governmental Funds 11,371,815$ Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is capitalized and depreciated over their estimated useful lives. Capital asset activity in the current fiscal year included: Capital asset additions 10,052,696 Depreciation expense (7,754,429) Net effect of reporting capital activity 2,298,267 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. (2,216,017) The issuance of long-term debt provides current financial resources to the governmental funds, while the repayment of the principal of long-term debt consumes the financial resources of governmental funds. Neither has any effect on net position. Also, the 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. Differences in the treatment of long-term debt transactions in the current fiscal year included: Issuance of long-term debt (4,955,000) Premiums received on long-term borrowings (342,501) Repayments of long-term debt 5,054,258 Amortization of bond premiums 258,194 Net effect of reporting long-term debt activity 14,951 Some revenues/expenses reported in the statement of activities do not provide/require the use of current financial resources and therefore are not reported as revenues/expenditures in the governmental funds: Net other postemployment benefits liability (2,468,535) Net pension liability 1,861,356 Compensated absences 9,168 Accrued interest 68,608 Net effect of reporting long-term liabilities (529,403) Change in Net Position — Governmental Activities 10,939,613$ See accompanying notes to basic financial statements. TOWN OF HOPKINTON, MASSACHUSETTS RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2022 Town of Hopkinton, Massachusetts Page 18 of 61 Basic Annual Financial Statements Sewer Water Total Assets: Current Assets: Cash and cash equivalents 2,292,109$ 3,776,230$ 6,068,339$ Receivables, net of allowances: User charges and other 957,570 806,553 1,764,123 Betterments 434,384 - 434,384 Intergovernmental 10,421 - 10,421 Total Current Assets 3,694,484 4,582,783 8,277,267 Noncurrent Assets: Betterments 2,739,337 - 2,739,337 Intergovernmental receivables 667 - 667 Land 2,878,817 966,283 3,845,100 Construction in-progress - 1,301,028 1,301,028 Depreciable capital assets, net 29,467,226 8,523,660 37,990,886 Total Noncurrent Assets 35,086,047 10,790,971 45,877,018 Total Assets 38,780,531 15,373,754 54,154,285 Deferred Outflows of Resources: Other postemployment benefits 14,282 101,115 115,397 Pensions 23,631 31,016 54,647 Total Deferred Outflows of Resources 37,913 132,131 170,044 (continued) TOWN OF HOPKINTON, MASSACHUSETTS STATEMENT OF NET POSITION JUNE 30, 2022 Business-Type Activities PROPRIETARY FUNDS Town of Hopkinton, Massachusetts Page 19 of 61 Basic Annual Financial Statements Sewer Water Total TOWN OF HOPKINTON, MASSACHUSETTS STATEMENT OF NET POSITION JUNE 30, 2022 Business-Type Activities PROPRIETARY FUNDS Liabilities: Current Liabilities: Warrants and accounts payable 85,576$ 96,840$ 182,416$ Retainage payable - 56,474 56,474 Accrued interest 36,438 66,705 103,143 Due to other government 123,550 - 123,550 Bond anticipation note payable 85,000 900,000 985,000 Current portion of long-term debt 723,241 513,655 1,236,896 Total Current Liabilities 1,053,805 1,633,674 2,687,479 Noncurrent liabilities: Net other postemployment benefits liability 56,406 399,315 455,721 Net pension liability 267,601 351,227 618,828 Due to other government 1,191,832 - 1,191,832 Long-term debt 5,251,160 5,139,290 10,390,450 Total Noncurrent Liabilities 6,766,999 5,889,832 12,656,831 Total Liabilities 7,820,804 7,523,506 15,344,310 Deferred Inflows of Resources: Other postemployment benefits 3,651 25,846 29,497 Pensions 100,816 132,320 233,136 Total Deferred Inflows of Resources 104,467 158,166 262,633 Net Position: Net investment in capital assets 25,478,182 5,943,510 31,421,692 Unrestricted 5,414,991 1,880,703 7,295,694 Total Net Position 30,893,173$ 7,824,213$ 38,717,386$ (concluded) See accompanying notes to basic financial statements. Town of Hopkinton, Massachusetts Page 20 of 61 Basic Annual Financial Statements Sewer Water Total Operating Revenues: Charges for services 2,245,812$ 1,894,246$ 4,140,058$ Other operating revenues 139,457 768,076 907,533 Total Operating Revenues 2,385,269 2,662,322 5,047,591 Operating Expenses: Payroll and personnel costs 456,827 701,671 1,158,498 Operating costs 770,373 980,615 1,750,988 Depreciation expense 1,273,355 399,724 1,673,079 Total Operating Expenses 2,500,555 2,082,010 4,582,565 Operating (Loss) Income (115,286) 580,312 465,026 Nonoperating Revenues (Expenses): Interest expenses (143,481) (176,503) (319,984) Total Nonoperating Revenues (Expenses) (143,481) (176,503) (319,984) (Loss) Income Before Capital Contributions and Transfers (258,767) 403,809 145,042 Capital Contributions and Transfers: Intergovernmental capital contributions 3,280 - 3,280 Capital contributions 209,396 - 209,396 Total Capital Contributions and Transfers 212,676 - 212,676 Change in Net Position (46,091) 403,809 357,718 Net Position: Beginning of the year 30,939,264 7,420,404 38,359,668 End of the year 30,893,173$ 7,824,213$ 38,717,386$ See accompanying notes to basic financial statements. TOWN OF HOPKINTON, MASSACHUSETTS PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2022 Business-Type Activities Town of Hopkinton, Massachusetts Page 21 of 61 Basic Annual Financial Statements Sewer Water Total Cash Flows from Operating Activities: Receipts from user charges 2,657,804$ 1,704,831$ 4,362,635$ Receipts from other operating revenues 139,457 768,076 907,533 Payments to employees (481,724) (728,626) (1,210,350) Payments to vendors (904,569) (955,738) (1,860,307) Net Cash Provided By Operating Activities 1,410,968 788,543 2,199,511 Cash Flows from Capital and Related Financing Activities: Proceeds from capital grants 222,379 - 222,379 Proceeds from the issuance of short-term debt 85,000 900,000 985,000 Acquisition and construction of capital assets (48,755) (1,302,738) (1,351,493) Principal repayments on long-term debt (714,169) (562,934) (1,277,103) Interest payments (147,343) (184,429) (331,772) Net Cash Used In Capital and Related Financing Activities (602,888) (1,150,101) (1,752,989) Change in Cash and Cash Equivalents 808,080 (361,558) 446,522 Cash and Cash Equivalents: Beginning of the year 1,484,029 4,137,788 5,621,817 End of the year 2,292,109$ 3,776,230$ 6,068,339$ Reconciliation of Operating (Loss) Income to Net Cash Provided By Operating Activities: Operating (Loss) Income (115,286)$ 580,312$ 465,026$ Adjustments to Reconcile Operating (Loss) Income to Net Cash Provided By Operating Activities: Depreciation expense 1,273,355 399,724 1,673,079 Changes in assets, deferred outflows (inflows) of resources and liabilities: Receivables and other current assets 411,992 (189,415) 222,577 Warrants payable and other current liabilities (134,196) 24,877 (109,319) Accrued and deferred benefits payable (24,897) (26,955) (51,852) Net Cash Provided By Operating Activities 1,410,968$ 788,543$ 2,199,511$ See accompanying notes to basic financial statements. TOWN OF HOPKINTON, MASSACHUSETTS PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2022 Business-Type Activities Town of Hopkinton, Massachusetts Page 22 of 61 Basic Annual Financial Statements Private OPEB Purpose Trust Trust Funds Assets: Cash and cash equivalents 21,719$ -$ Investments at fair value: Mutual funds 4,339,252 - MMDT - 13,345 Total Assets 4,360,971 13,345 Liabilities: Warrants and accounts payable - - Total Liabilities - - Net Position: Restricted for other postemployment benefits 4,360,971 - Held in trust for private purposes - 13,345 Total Net Position 4,360,971$ 13,345$ See accompanying notes to basic financial statements. TOWN OF HOPKINTON, MASSACHUSETTS STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2022 FIDUCIARY FUNDS Town of Hopkinton, Massachusetts Page 23 of 61 Basic Annual Financial Statements Private OPEB Purpose Trust Trust Funds Additions: Employer contributions 1,740,026$ -$ Investment income: 267,884 126 (935,419) - Interest and dividends Net decline in fair value of investments Less investment management fees (20,460) - Total net investment income (687,995) 126 Total Additions 1,052,031 126 Deductions: Benefits paid to retirees and survivors 1,319,776 - Scholarships -650 Total Deductions 1,319,776 650 Change in Net Position (267,745) (524) Net Position: Beginning of the year 4,628,716 13,869 End of the year 4,360,971$ 13,345$ See accompanying notes to basic financial statements. TOWN OF HOPKINTON, MASSACHUSETTS FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2022 Town of Hopkinton, Massachusetts Page 24 of 61 Basic Annual Financial Statements TOWN OF HOPKINTON, MASSACHUSETTS NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 2022 I.Summary of Significant Accounting Policies The basic financial statements of the Town of Hopkinton (the “Town”) have been prepared in conformity with generally accepted accounting principles (“GAAP”) as applied to state and local governments. GAAP is prescribed by the Governmental Accounting Standards Board (“GASB”), which is the primary standard-setting body for state and local governmental entities. The following is a summary of the more significant policies and practices used by the Town. A.Reporting Entity The Town, which is approximately twenty-six miles southwest of Boston, is located in Middlesex County. The Town was incorporated on December 13, 1715. The governing structure utilizes an open town meeting format with an elected five-member Select Board and an appointed Town Manager, who oversees the Town’s daily executive and administrative duties. Members of the Select Board serve three-year terms. The Town provides governmental services for the territory within its boundaries, including police and fire protection, public education from kindergarten to grade twelve, sewer and water services, street maintenance, library, veterans’ services, parks and recreational facilities, including a municipal beach. The sewer and water services are primarily self-funded and treated as business enterprises in the basic financial statements. Component units, while separate entities, are in substance part of the governmental operations if the significance of their operations and/or financial relationship with the Town meet certain criteria. Pursuant to these criteria there are no component units required to be included in the financial statements. B.Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which are primarily supported by user fees. Separate financial statements are provided for governmental, proprietary and fiduciary funds. Major individual government funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor governmental funds are aggregated and presented in a single column. Fiduciary funds are reported by fund type. Town of Hopkinton, Massachusetts Page 25 of 61 Basic Annual Financial Statements Major Fund Criteria – Major funds must be reported if both of the following criteria are met: 1)The total assets, liabilities, revenues, or expenditures/expenses of an individual governmental or enterprise fund are at least 10% of the corresponding element (assets, liabilities, etc.) for all funds of that category or type (total governmental or total enterprise funds), and 2)The total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5% of the corresponding element for all governmental and enterprise funds combined. In addition, any other governmental or enterprise fund that management believes is particularly significant to the basic financial statements may be reported as a major fund. C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are proprietary funds. Under this method, revenues are recorded when earned and expenses are recorded when incurred. 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 are met. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (i) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (ii) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. The effect of material interfund activity has been removed from the government-wide financial statements. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when susceptible to accrual (i.e., measurable and available). Revenues are considered to be available when they are 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 payment is due, certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with current expendable available resources. The Town applies the susceptible to accrual criteria to intergovernmental revenues. In applying the susceptible to accrual concept, there are two types of revenues. In the first, monies must be expended for a specific purpose or project before any amounts will be paid; therefore, revenues are recognized as expenditures are incurred. In the second, monies are virtually unrestricted and are usually revocable only for failure to comply with prescribed requirements. These resources are reflected as revenues when cash is received, or earlier if the susceptible to accrual criteria are met. State aid is accrued as revenue in the year that the funds are appropriated by the Commonwealth of Massachusetts (the “Commonwealth”). Town of Hopkinton, Massachusetts Page 26 of 61 Basic Annual Financial Statements The Town considers property tax revenues to be available if they are collected within sixty days after the end of the fiscal year. Investment income associated with the current fiscal period is susceptible to accrual and has been recognized as revenue of the current fiscal period. All other revenue items are considered to be measurable and available only when the cash is received and are recognized as revenue at that time. The Town reports the following major governmental funds: General Fund – is the government’s primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund. Community Preservation Fund – is used to account for specific activities related to the purchase of land parcels within the Town for community preservation purposes as well as historical preservation. Capital Projects Funds – are used to account for financial resources that are restricted, committed or assigned to expenditures for capital outlays. ARPA Fund – was established as a major fund in fiscal year 2022 and is used to account for the Town’s expenditure of the American Rescue Plan Act of 2021. The nonmajor governmental funds consist of special revenue 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: Special Revenue Funds – are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Permanent Funds – are used to account for financial resources that are restricted to the extent that only earnings, not principal, may be used for purposes that support the governmental programs. The proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under this method, revenues are recognized when earned and expenses are recorded when incurred. 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 a proprietary fund’s principal ongoing operations. The principal operating revenues are user charges and fees, while operating expenses consist of salaries, ordinary maintenance, assessments, indirect costs and depreciation. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The Town reports its sewer and water activities as proprietary funds. Town of Hopkinton, Massachusetts Page 27 of 61 Basic Annual Financial Statements Fiduciary fund financial statements are reported using the economic resources measurement focus and use the accrual basis of accounting. Fiduciary funds are used to account for assets held in a trustee capacity for others that may not be used for government programs. The Town reports the following fiduciary funds: Other Postemployment Benefits Trust Fund – is used to accumulate plan assets used to reduce the Town’s other postemployment benefit, or OPEB, unfunded liability. Private-Purpose Trust Funds – are used to account for trust arrangements under which principal and income benefit individuals, private organizations or other governments. These funds are used primarily for educational scholarships. D.Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Equity Deposits and Investments – The Town’s cash and cash equivalents 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. The Town reports its investments at fair value. When actively quoted observable prices are not available, the Town generally uses either implied pricing from similar investments or valuation models based on net present values of estimated future cash flows (adjusted as appropriate for liquidity, credit, market and/or other risk factors). The Town categorizes its fair value measurements within the fair value hierarchy established by GAAP. This hierarchy is based on valuation inputs used to measure the fair value of the asset or liability. The three levels of the hierarchy are as follows: Level 1 – Inputs are quoted prices in active markets for identical investments at the measurement date. Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the investment through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 – Inputs reflect the Town’s best estimate of what market participants would use in pricing the investment at the measurement date. Receivables – Real estate and personal property taxes are assessed on January 1 each year. Bills are sent quarterly and are due on August 1, November 1, February 1, and May 1, or thirty days subsequent to the mailing date. Interest accrues on delinquent taxes up to the statutory percentage rate per annum. Property taxes levied are recorded as receivables in the fiscal year of the levy. Real estate taxes, sewer, water and other user fees are secured through a lien process in the second quarter of the following fiscal year and are considered 100% collectible. Accordingly, an allowance for uncollectible accounts for these receivables is not reported. All personal property tax, excise tax and other departmental receivables are shown net of an allowance for uncollectible accounts, which are comprised of those outstanding amounts greater than five years old, if material. Town of Hopkinton, Massachusetts Page 28 of 61 Basic Annual Financial Statements Inventories and Prepaid Items – Inventories, which are not material to the basic financial statements, are considered to be expenditures at the time of purchase. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items within other current assets in both government-wide and governmental fund financial statements. Capital Assets – Capital assets, which include land, land improvements, buildings and improvements, machinery and equipment, vehicles, library materials and infrastructure are reported in the applicable governmental or business-type activities columns in the government- wide financial statements. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. All purchases and construction costs in excess of $5,000 ($25,000 in the case of infrastructure assets) are capitalized at the date of acquisition or construction, respectively, with expected lives of greater than two years. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Capital assets (excluding land and construction in-progress) are depreciated using the straight-line method over the following estimated useful lives: Buildings and improvements 20 to 40 years Infrastructure 40 to 50 years Machinery and equipment 5 to 10 years Vehicles 5 to 7 years Interfund Balances – Activity between funds that are representative of lending arrangements outstanding at the end of the fiscal year are referred to as either due to/from other funds or advances to/from other funds. All other outstanding balances between funds are reported as due to/from other funds. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances. Interfund Transfers – During the course of its operations, resources are permanently reallocated between and within funds. These transactions are reported as transfers in and transfers out in the individual fund statements. Transfers between and within governmental and fiduciary funds are eliminated from the governmental activities in the statement of activities. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the statement of activities as transfers, net. 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 state law. Investment income of the proprietary funds is retained by the respective funds. Compensated Absences – The Town permits employees to accumulate earned but unused vacation benefits. Amounts related to these benefits are accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental fund financial statements only if they have matured. Town of Hopkinton, Massachusetts Page 29 of 61 Basic Annual Financial Statements Unearned Revenues – Amounts collected in advance from unlevied taxes, federal and state grants and user charges are reported as unearned revenues if material. Long-Term Debt – Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method if material. Bond anticipation notes payable are reported net of the applicable bond premium or discount. In the governmental fund financial statements, the face amount of long-term debt issued is reported as other financing sources. Premiums received on a debt issuance are reported as other financing sources while discounts are reported as other financing uses. Issuance costs are exclusively reported as general government expenditures regardless of whether they are withheld from the actual proceeds. Due to Other Government – Per the terms of an intermunicipal agreement, the Town is liable for its share of long-term general obligation bonds and notes incurred in connection with plant construction in its sewer enterprise fund. The present value of future payments is recorded in current and noncurrent liabilities in the sewer enterprise. Risk Financing – The Town insures for workers’ compensation, health, unemployment benefits, casualty, theft and other losses. Uninsured losses are recorded as expenditures when incurred. Deferred Outflows/Inflows of Resources – 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. In its government-wide statement of net position, the Town reports deferred outflows related to its net OPEB and pension liabilities. These deferred outflows of resources are expected to be amortized into expense over the next six years. 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. In its government- wide statement of net position, the Town reports deferred outflows related to its net pension and OPEB liabilities, which are expected to be recognized as a reduction to pension expense within the next four years, as well as from prepaid property taxes, which will be recognized in the following fiscal year. In its governmental funds financial statements, the Town reports certain prepaid taxes and unavailable revenue as deferred inflows of resources. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Fund Equity – The Town presents its fund balances in its governmental funds using classifications that comprise a hierarchy based primarily on the extent in which the Town is required to honor constraints on the specific purpose for which amounts in the funds can be spent. Town of Hopkinton, Massachusetts Page 30 of 61 Basic Annual Financial Statements Fund balance is reported in five components – nonspendable, restricted, committed, assigned, and unassigned as described below: Nonspendable represents amounts that cannot be spent because they are either (i) not in spendable form (i.e., inventory or prepaid items) or (ii) legally or contractually required to be maintained intact such as the corpus of an endowment. Restricted represents amounts that have constraints placed either externally by third-parties (creditors, grantors, contributors, or laws or regulations of other governments) or by law through constitutional provisions or enabling legislation. Enabling legislation authorizes the Town to assess, levy, charge or otherwise mandate payment of resources (from external resource providers) and includes a legally enforceable requirement (compelled by external parties) that those resources be used only for the specific purposes stipulated in the legislation. Committed represents amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the Town’s highest level of decision-making authority, which consists of the Town Meeting members through Town Meeting Votes. Those committed amounts cannot be used for any other purpose unless the Town Meeting removes or changes the specified use by taking the same type of action (through Town Meeting Votes) it employed previously to commit those amounts. Assigned represents amounts that are constrained by the Town’s intent to be used for specific purposes but are neither restricted nor committed. The authority for assigning fund balance is expressed by the Town Meeting, Select Board or their designee. Unassigned represents amounts that have not been restricted, committed or assigned to specific purposes within the Town’s governmental funds, primarily its general fund. Net Position – In the government-wide financial statements, net position reported as net investment in capital assets includes capital assets, net of accumulated depreciation, less the principal balance of outstanding debt used to acquire capital assets. Unspent proceeds of capital related debt are not considered to be capital related debt. Net position is reported as restricted when amounts are not available for appropriation or are legally restricted by outside parties for a specific use. Net position has been restricted for the following: Nonexpendable perpetual funds represent the endowment portion of donor restricted trusts that support governmental programs. Expendable perpetual funds represent the spendable portion of donor restricted trusts that support governmental programs. Community preservation funds represent financial resources accumulated for community and historical preservation projects. Other purposes represent assets that are restricted by donors for specific governmental programs and uses. Town of Hopkinton, Massachusetts Page 31 of 61 Basic Annual Financial Statements E.Use of Estimates The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and liabilities at the date of the basic financial statements and the reported amounts of the revenues and expenditures/expenses during the fiscal year. Actual results could vary from estimates used. II.Detailed Notes to All Funds A.Deposits and Investments A cash and investment pool is maintained and is available for use by all funds. Each fund type’s portion of this pool is displayed on the balance sheet as cash and cash equivalents. The deposits and investments of trust funds are held separately from those of other funds. State laws and regulations require the Town to invest funds only in preapproved investment instruments, which include, but are not limited to, bank deposits, money markets, certificates of deposit, U.S. obligations, repurchase agreements and State Treasurer’s investment pool, which is administered by the Massachusetts Municipal Depository Trust (“MMDT”). In addition, the statutes impose various limitations on the amount and length of investments and deposits. Repurchase agreements cannot be for a period of over ninety days, and the underlying security must be a United States obligation. During the fiscal year, the Town did not enter into any repurchase agreements. Custodial Credit Risk: Deposits – In the case of deposits, this is the risk that in the event of a bank failure, the Town’s deposits may not be returned to it. The Town’s investment policy does not have a deposit policy for custodial credit risk relative to cash holdings. At June 30, 2022, $2,915,093 in Town bank deposits were not insured by the federal depository insurance, other depositors’ insurance or third-party collateralization and was therefore exposed to custodial credit risk. Custodial Credit Risk: Investments – In the case of investments, this is the risk that in the event of the invested party not being able to provide required payments to investors, ceasing to exist, or filing of bankruptcy, the Town may not be able to recover the full amount of its principal investment and/or investment earnings. All of the Town’s investments are registered in its name and cannot be pledged or assigned. The Town is not exposed to custodial credit risk on its investments. Town of Hopkinton, Massachusetts Page 32 of 61 Basic Annual Financial Statements Fair Value Measurements: Investments – The following table presents the Town’s investments carried at fair value on a recurring basis at June 30, 2022: Short-term investments in the MMDT are measured at amortized cost, which approximates fair value. Concentration of Credit Risk: Investments – The Town’s investment in MMDT represents approximately 74% of the Town’s total investments at June 30, 2022. No other individual investment exceeded 5% of the Town’s total investments. Interest Rate Risk: Investments – This is the risk that changes in interest rates will adversely affect the market value of an investment, particularly fixed income securities. The Town manages the duration of its fixed income investments to better mitigate interest rate risk. The following table presents the Town’s investments with maturities at June 30, 2022: June 30, Investments by Fair Value Level 2022 Level 1 Level 2 Level 3 Debt securities: U.S. Treasury notes 2,994,204$ 2,994,204$ -$ -$ U.S. Government agency obligations 792,066 - 792,066 - Corporate bonds 4,185,532 -4,185,532 - Total debt securities 7,971,802 2,994,204 4,977,598 - Equity securities 2,152,323 2,152,323 - - Mutual funds 5,218,646 -5,218,646 - Total investments by fair value level 15,342,771 5,146,527$ 10,196,244$ -$ Investments measured at amortized cost: MMDT 44,612,960 Total investments at fair value 59,955,731$ Fair Value Measurements Using Fair Investments Value Less than 1 1 to 5 6 to 10 Debt securities: U.S. Government obligations 3,786,270$ 1,068,182$ 2,578,803$ 139,285$ Corporate bonds 4,185,532 169,837 3,627,456 388,239 Total investments with maturities 7,971,802 1,238,019$ 6,206,259$ 527,524$ Other investments: Equity securities 2,152,323 Mutual funds 5,218,646 MMDT 44,612,960 Total Investments 59,955,731$ Time Until Maturity (in years) Town of Hopkinton, Massachusetts Page 33 of 61 Basic Annual Financial Statements Credit Risk: Investments – This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Town has not adopted a formal policy relative to credit risk. However, Massachusetts General Laws, or MGL, requires the Town Treasurer to invest Town funds in preapproved investments. In addition, the statutes impose various limitations on the amount and length of investments and deposits. The following table summarizes the credit rating assigned by Moody’s Investors Service (“Moody’s”) to the Town’s fixed income investments at June 30, 2022: B.Receivables 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, were as follows: Receivables for the Town’s proprietary funds at June 30, 2022 were as follows: Quality Ratings (Moody's) U.S. Government Obligations Corporate Bonds Aaa 3,786,270$ -$ A1 - 548,970 A2 - 1,768,250 Baa1 - 776,795 Baa2 - 1,047,600 Baa3 -43,917 3,786,270$ 4,185,532$ Gross Amount Allowance for Uncollectibles Net Amount Personal property taxes 76,213$ -$ 76,213$ Real estate taxes 868,404 - 868,404 Tax liens and deferrals 1,284,585 - 1,284,585 Motor vehicle excise taxes 372,745 (60,000) 312,745 Ambulance 547,041 (228,000) 319,041 Police details 368,854 - 368,854 Betterments 276,663 - 276,663 Due from the Commonwealth 724,219 -724,219 4,518,724$ (288,000)$ 4,230,724$ Gross Amount Allowance for Uncollectibles Net Amount User charges 1,764,123$ -$ 1,764,123$ Betterments 3,173,721 - 3,173,721 Due from MCWT 11,088 -11,088 4,948,932$ -$ 4,948,932$ Town of Hopkinton, Massachusetts Page 34 of 61 Basic Annual Financial Statements Governmental funds report unavailable revenue as a deferred inflow of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current accounting period. The following table identifies the components of unavailable revenues at June 30, 2022 in the governmental funds: C. Capital Assets Capital asset activity for the fiscal year ended June 30, 2022 was as follows: General Fund Community Preservation Fund Nonmajor Governmental Funds Total Governmental Funds Property taxes 563,315$ 22,608$ -$ 585,923$ Tax liens and deferrals 1,282,357 2,228 - 1,284,585 Motor vehicle excise taxes 312,745 - - 312,745 Ambulance - - 319,041 319,041 Betterments - -276,663 276,663 2,158,417$ 24,836$ 595,704$ 2,778,957$ Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital assets not being depreciated: Land 21,715,551$ -$ -$ 21,715,551$ Construction in-progress 4,839,597 3,015,028 (2,518,260) 5,336,365 Total capital assets not being depreciated 26,555,148 3,015,028 (2,518,260) 27,051,916 Capital assets being depreciated: Buildings and improvements 193,142,082 7,247,848 - 200,389,930 Infrastructure 52,755,767 1,147,596 (810,049) 53,093,314 Machinery and equipment 9,243,678 956,980 - 10,200,658 Vehicles 3,857,958 203,504 (78,000) 3,983,462 T otal capital assets being depreciated 258,999,485 9,555,928 (888,049) 267,667,364 Less accumulated depreciation for: Buildings and improvements (69,518,592) (5,245,036) - (74,763,628) Infrastructure (35,213,338) (1,413,366) 810,049 (35,816,655) Machinery and equipment (3,566,094) (352,816) - (3,918,910) Vehicles (2,230,459) (743,211) 78,000 (2,895,670) Total accumulated depreciation (110,528,483) (7,754,429) 888,049 (117,394,863) Total capital assets being depreciated, net 148,471,002 1,801,499 -150,272,501 Governmental activities capital assets, net 175,026,150$ 4,816,527$ (2,518,260)$ 177,324,417$ Town of Hopkinton, Massachusetts Page 35 of 61 Basic Annual Financial Statements Beginning Ending Balance Increases Decreases Balance Business-Type Activities: Combined Capital assets not being depreciated: Land 3,845,100$ -$ -$ 3,845,100$ Construction in-progress 480,027 1,301,028 (480,027) 1,301,028 Total capital assets not being depreciated 4,325,127 1,301,028 (480,027) 5,146,128 Capital assets being depreciated: Physical plant and infrastructure 73,486,503 481,737 - 73,968,240 Machinery and equipment 877,006 - - 877,006 Vehicles 492,564 48,755 -541,319 Total capital assets being depreciated 74,856,073 530,492 -75,386,565 Less accumulated depreciation for: Physical plant and infrastructure (34,808,323) (1,548,469) - (36,356,792) Machinery and equipment (543,448) (77,169) - (620,617) Vehicles (370,829) (47,441) -(418,270) Total accumulated depreciation (35,722,600) (1,673,079) -(37,395,679) T otal capital assets being depreciated, net 39,133,473 (1,142,587) -37,990,886 Total Net Business-Type Activities 43,458,600$ 158,441$ (480,027)$ 43,137,014$ Beginnin g E nding Balance Increases Decreases Balance Business-Type Activities: Sewer Capital assets not being depreciated: Land 2,878,817$ -$ -$ 2,878,817$ Capital assets being depreciated: Physical plant and infrastructure 59,853,543 - - 59,853,543 Machinery and equipment 255,341 - - 255,341 Vehicles 69,994 48,755 -118,749 Total capital assets being depreciated 60,178,878 48,755 -60,227,633 Less accumulated depreciation for: Physical plant and infrastructure (29,279,254) (1,244,877) - (30,524,131) Machinery and equipment (137,804) (23,602) - (161,406) Vehicles (69,994) (4,876) -(74,870) Total accumulated depreciation (29,487,052) (1,273,355) -(30,760,407) T otal capital assets being depreciated, net 30,691,826 (1,224,600) -29,467,226 Total Sewer 33,570,643$ (1,224,600)$ -$ 32,346,043$ Town of Hopkinton, Massachusetts Page 36 of 61 Basic Annual Financial Statements Depreciation expense was charged to the functions/programs in the governmental activities in fiscal year 2022 as follows: Beginnin g E nding Balance Increases Decreases Balance Business-Type Activities: Water Capital assets not being depreciated: Land 966,283$ -$ -$ 966,283$ Construction in-progress 480,027 1,301,028 (480,027) 1,301,028 Total capital assets not being depreciated 1,446,310 1,301,028 (480,027) 2,267,311 Capital assets being depreciated: Physical plant and infrastructure 13,632,960 481,737 - 14,114,697 Machinery and equipment 621,665 - - 621,665 Vehicles 422,570 - -422,570 Total capital assets being depreciated 14,677,195 481,737 -15,158,932 Less accumulated depreciation for: Physical plant and infrastructure (5,529,069) (303,592) - (5,832,661) Machinery and equipment (405,644) (53,567) - (459,211) Vehicles (300,835) (42,565) -(343,400) Total accumulated depreciation (6,235,548) (399,724) -(6,635,272) Total capital assets being depreciated, net 8,441,647 82,013 -8,523,660 T otal Water 9,887,957$ 1,383,041$ (480,027)$ 10,790,971$ General government 256,944$ Public safety 747,562 Education 3,931,792 Public works 2,140,770 Health and human services 16,051 Culture and recreation 661,310 7,754,429$ Town of Hopkinton, Massachusetts Page 37 of 61 Basic Annual Financial Statements D.Interfund Transfers Interfund transfers for the fiscal year ended June 30, 2022 were as follows: E.Short-Term or Temporary Debt The Town is authorized to borrow on a short-term or temporary basis to fund current operating costs (generally through revenue or tax anticipation notes) or capital projects (generally through grant anticipation notes or bond anticipation notes). Short-term or temporary notes are general obligations of the Town and carry maturity dates that are limited by state law. Interest expenditures and expenses for short-term or temporary borrowings are generally accounted for in the general fund and enterprise funds, respectively. The following summarizes the Town’s short- term or temporary borrowings for the fiscal year ended June 30, 2022: Temporary notes were issued for the following purposes: Capital General Projects Fund Funds Total General fund -$2,013,654$ 2,013,654$ (1) Capital projects fund 7,984 - 7,984 (2) Nonmajor governmental funds 664,311 400,000 1,064,311 (2) 672,295$ 2,413,654$ 3,085,949$ (1)Budgeted transfers to capital projects were used to fund capital outlays. (2)A closed school capital article was transferred to the school stabilization fund, which is reported in the general fund. (3)Budgeted transfers of $565,547 and $64,458 from the ambulance receipts reserved for appropriation and Title V revolving funds, respectively, and the transfer of $34,306 in excess parks and recreation funds into the general fund. A transfer of $400,000 from parks and recreation to capital projects to fund a turf field. Transfers In Transfers Out Interest Maturity Beginning Ending Type Rate Date Balance Increases Decreases Balance BAN 1.50% matured 5,297,501$ -$(5,297,501)$ -$ BAN 2.13% 6/15/23 -4,881,543 -4,881,543 5,297,501$ 4,881,543$ (5,297,501)$ 4,881,543$ Main Street corridor 2,150,000$ Fruit Street turf field 1,271,543 Hayden Rowe Street water 900,000 School HVAC 475,000 Comprehensive wastewater plan 85,000 4,881,543$ Town of Hopkinton, Massachusetts Page 38 of 61 Basic Annual Financial Statements F. Long-Term Obligations The Town issues general obligation bonds and notes to provide funds for the acquisition and construction of major capital facilities and projects. General obligation bonds and notes have been issued for both governmental and business-type activities. In addition, the Town incurs various other long-term obligations relative to personnel costs and long-term service agreements with other governments. The long-term liabilities in the governmental activities will be liquidated by the general fund, while those in the business-type activities will be liquidated by the individual enterprise fund reporting the long-term liabilities. The following reflects the changes in long-term liabilities for the fiscal year: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental Activities: General obligation bonds 67,419,800$ 4,955,000$ (4,989,800)$ 67,385,000$ 4,784,000$ Unamortized bond premiums 1,931,266 342,501 (258,194) 2,015,573 270,474 Direct borrowings and placements 478,916 - (64,458) 414,458 64,458 Compensated absences 377,126 5,983 (15,151) 367,958 128,785 Net other postemployment benefits 34,954,864 17,269,829 (14,646,726) 37,577,967 - Net pension liability 23,203,971 4,183,765 (11,281,476) 16,106,260 - Total Governmental Activities 128,365,943$ 26,757,078$ (31,255,805)$ 123,867,216$ 5,247,717$ Beginning Ending Due Within Balance Increases Decreases Balance One Year Business-Type Activities: Sewer General obligation bonds 1,413,000$ -$ (232,000)$ 1,181,000$ 232,000$ Direct borrowings and placements 5,275,570 - (482,169) 4,793,401 491,241 Due to other government 1,437,693 - (122,311) 1,315,382 123,550 Net other postemployment benefit 49,571 27,118 (20,283) 56,406 - Net pension liability 385,529 69,512 (187,440) 267,601 - Total Sewer 8,561,363 96,630 (1,044,203) 7,613,790 846,791 Water General obligation bonds 5,657,200 - (488,200) 5,169,000 439,000 Unamortized bond premiums 109,633 - (14,369) 95,264 13,070 Direct borrowings and placements 449,046 - (60,365) 388,681 61,585 Net other postemployment benefit 387,153 179,687 (167,525) 399,315 - Net pension liability 506,006 91,236 (246,015) 351,227 - Total Water 7,109,038 270,923 (976,474) 6,403,487 513,655 Total Business-Type Activities 15,670,401$ 367,553$ (2,020,677)$ 14,017,277$ 1,360,446$ Description of Issue Description of Issue Town of Hopkinton, Massachusetts Page 39 of 61 Basic Annual Financial Statements General obligation bonds and notes payable outstanding at June 30, 2022 were as follows: Debt service requirements on long-term debt at June 30, 2022 were as follows: Interest Beginning Ending Description Rate(s)Balance Increases Decreases Balance Governmental Activities: General obligation bonds 0.75% - 5.00% 67,419,800$ 4,955,000$ (4,989,800)$ 67,385,000$ MCWT Notes 0.00% - 2.00% 478,916 -(64,458) 414,458 Total Governmental Activities 67,898,716$ 4,955,000$ (5,054,258)$ 67,799,458$ Business-Type Activities - Sewer: General obligation bonds 2.00% - 5.00% 1,413,000$ -$ (232,000)$ 1,181,000$ MCWT Notes 0.00% - 2.00% 5,275,570 -(482,169) 4,793,401 Total Sewer 6,688,570 -(714,169) 5,974,401 Business-Type Activities - Water: General obligation bonds 2.00% - 5.00% 5,657,200 - (488,200)5,169,000 MCWT Notes 0.00% - 2.00% 449,046 -(60,365) 388,681 Total Water 6,106,246 -(548,565) 5,557,681 Total Business-Type Activities 12,794,816$ -$ (1,262,734)$ 11,532,082$ Year Ended June 30,Principal Interest Principal Interest 2023 4,784,000$ 2,290,079$ 64,458$ 236$ 2024 4,580,000 2,066,377 55,000 - 2025 4,290,000 1,872,937 55,000 - 2026 4,069,000 1,687,916 55,000 - 2027 3,850,000 1,517,620 45,000 - 2028 - 2032 17,932,000 5,734,395 140,000 - 2033 - 2037 15,570,000 3,191,993 - - 2038 - 2042 7,340,000 1,356,469 - - 2043 - 2047 4,550,000 446,358 - - 2048 - 2050 420,000 19,740 - - 67,385,000$ 20,183,884$ 414,458$ 236$ General Obligation Bonds Direct Borrowings and Placements Governmental Activities Town of Hopkinton, Massachusetts Page 40 of 61 Basic Annual Financial Statements Year Ended June 30,Principal Interest Principal Interest 2023 671,000$ 199,468$ 552,826$ 99,036$ 2024 625,000 174,369 526,492 87,425 2025 625,000 150,592 537,216 76,597 2026 471,000 128,468 532,428 65,986 2027 460,000 108,793 543,456 55,228 2028 - 2032 1,623,000 363,929 2,280,704 121,337 2033 - 2037 1,180,000 182,982 208,960 2,090 2038 - 2042 545,000 53,204 - - 2043 - 2047 150,000 13,595 - - 6,350,000$ 1,375,400$ 5,182,082$ 507,699$ Business-Type Activities: Combined General Obligation Bonds Direct Borrowings and Placements Year Ended June 30,Principal Interest Principal Interest 2023 232,000$ 30,060$ 491,241$ 91,878$ 2024 197,000 24,161 463,663 81,511 2025 197,000 18,885 473,118 71,953 2026 123,000 14,460 467,035 62,637 2027 123,000 11,060 476,742 53,199 2028 - 2032 309,000 15,930 2,212,642 120,656 2033 - -208,960 2,090 1,181,000$ 114,556$ 4,793,401$ 483,924$ General Obligation Bonds Direct Borrowings and Placements Business-Type Activities: Sewer Year Ended June 30,Principal Interest Principal Interest 2023 439,000$ 169,408$ 61,585$ 7,158$ 2024 428,000 150,208 62,829 5,914 2025 428,000 131,707 64,098 4,644 2026 348,000 114,008 65,393 3,349 2027 337,000 97,733 66,714 2,029 2028 - 2032 1,314,000 347,999 68,062 681 2033 - 2037 1,180,000 182,982 - - 2038 - 2042 545,000 53,204 - - 2043 - 2047 150,000 13,595 - - 5,169,000$ 1,260,844$ 388,681$ 23,775$ Business-Type Activities: Water General Obligation Bonds Direct Borrowings and Placements Town of Hopkinton, Massachusetts Page 41 of 61 Basic Annual Financial Statements Authorized and Unissued Debt – At June 30, 2022, the Town had authorized but not yet issued long-term debt for the following: G. Fund Balances The components of fund balances as listed in aggregate in the governmental funds balance sheet at June 30, 2022 are detailed as follows: The ARPA grant fund is not presented above at it did not maintain a fund balance at June 30, 2022. Project Amount Education-related projects 2,934,952$ Fire engine 2 replacement 736,318 Other governmental purposes 361,702 Sewer projects 209,000 Water projects 785,222 5,027,194$ Community Capital Nonmajor Total General Preservation Projects Governmental Governmental Fund Funds Funds Funds Funds Nonspendable: Nonexpendable perpetual funds -$ -$ -$ 1,408,970$ 1,408,970$ Restricted: Expendable perpetual funds - - - 4,041,036 4,041,036 Debt service reserve 831,899 - - - 831,899 Community preservation - 8,494,264 - - 8,494,264 Capital projects - -10,479,432 - 10,479,432 Federal and state grants - -- 1,513,733 1,513,733 Receipts reserved for appropriation - -- 1,068,497 1,068,497 Revolving funds - -- 12,786,228 12,786,228 Committed: School stabilization funds 3,974,796 - - - 3,974,796 Assigned: General government 223,851 - - - 223,851 Education 693,919 - - - 693,919 Public works 748,710 - - - 748,710 Subsequent years' budget 355,309 - - - 355,309 Other purposes 84,504 - - - 84,504 Unassigned: Capital stabilization fund 336,850 - - - 336,850 General stabilization funds 3,882,336 - - - 3,882,336 Unrestricted 11,716,994 -(57,995) (242,421) 11,416,578 22,849,168$ 8,494,264$ 10,421,437$ 20,576,043$ 62,340,912$ Town of Hopkinton, Massachusetts Page 42 of 61 Basic Annual Financial Statements When both restricted and unrestricted resources are available for use, it is the Town’s policy to use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as they are needed. When unrestricted resources (committed, assigned and unassigned) are available for use, it is the Town’s policy to use committed resources first, then assigned, and then unassigned as they are needed. The Town has not established financial policies with respect to maintaining minimum fund balance amounts. Stabilization Funds – The Town maintains four stabilization funds – general, capital, school and special education. The general stabilization fund may be used for any municipal purpose upon a two-thirds vote of the Town Meeting. The capital, school and special education stabilization funds also requires a two-thirds vote of Town Meeting to expend funds for capital outlays and school enrollment costs, respectively. The general and capital stabilization funds are reported in the Town’s unassigned fund balance in the general fund, while the school and special education stabilization funds are reported as committed. Encumbrances – The Town’s encumbrance policy regarding the general fund is to (i) classify encumbrances that arise from the issuance of purchase orders resulting from normal, approved purchasing activity as assigned, and (ii) classify encumbrances that result from an action of the Town Meeting as committed. Encumbrances of funds already restricted or committed are included within the classification of those fund balances and not reported separately. The Town reports $1,750,984 of encumbrances from normal purchasing activity as assigned at June 30, 2022. There are no encumbrances reported in other funds. H.Excess of Expenditures Over Appropriations and Deficits The Town expended $19,132 over appropriation for state and country charges, which will be raised on the fiscal year 2023 tax recap. The Town reported deficits of $57,995 and $242,421 in its capital projects and nonmajor governmental funds, respectively, at June 30, 2022. These amounts are reflected as unassigned fund balance in their respective funds and will be funded through future bond or grant proceeds. I. Tax Abatements The Town enters into property tax abatements with local businesses as an incentive for economic growth. The agreements are commonly referred to as tax increment financing, or TIF, agreements. Under Massachusetts General Laws, property owners may be granted property tax abatements of up to 100% of the value of a tax increment for a maximum term of twenty years provided the property is located in a TIF zone. TIF zones are approved by the Massachusetts Economic Assistance Coordinating Council. The Town’s Select Board and Town Meeting must approve all TIF agreements. The Town has TIF agreements with two commercial taxpayers. Under the terms of a February 2013 TIF agreement, a manufacturer was provided property tax abatements ranging from 90% to 30% on its real estate increment over a thirteen-year period commencing in fiscal year 2014 (currently at 50%). The manufacturer agreed to (i) retain up to 175 permanent jobs and create an additional 225 new jobs, and (ii) invest approximately $13,000,000 in property improvements. Property tax abatements of $81,419 were provided in fiscal year 2022 to this manufacturer. Town of Hopkinton, Massachusetts Page 43 of 61 Basic Annual Financial Statements Under the terms of a February 2019 TIF agreement, a biosciences company was provided property tax abatements ranging from 90% to 20% of its real estate increment and 90% to 50% on its personal property increment over a ten-year period commencing in fiscal year 2021. The biosciences company agreed to (i) create 125 new permanent full-time jobs and (ii) invest approximately $12,000,000 in property improvements. Property tax abatements of $11,009 were provided in fiscal year 2022 to this biosciences company. J.Economic Dependence During the fiscal year ended June 30, 2022, approximately 16% of total general fund revenues were recognized from the Commonwealth or other governmental agencies. III.Other Information A.Retirement System Pension Plan Description – The Town contributes to the Middlesex Regional Retirement System (the “Retirement System”), a cost-sharing multiple-employer defined benefit pension plan. The Retirement System was established under Chapter 32 of MGL. The Retirement System is administered by the Middlesex Regional Retirement Board (the “Retirement Board”). Stand- alone audited financial statements for the year ended December 31, 2021 were issued and are available by submitting a request to the Retirement Board at 25 Linnell Circle, Billerica, Massachusetts 01821. Current membership in the Retirement System for all seventy-one participating employers as of December 31, 2021 was as follows: Benefit Terms – Membership in the Retirement System is mandatory for all full-time employees and nonseasonal, part-time employees who, in general, regularly work more than twenty hours per week. Teachers and certain administrative personnel employed by the school department participate in a separate pension plan administered by the Massachusetts Teachers’ Retirement System, which is the legal responsibility of the Commonwealth of Massachusetts. Members of the Retirement System do not participate in the federal Social Security retirement system. Massachusetts contributory retirement system benefits are uniform for all public pension systems. The Retirement System provides for retirement allowance benefits up to a maximum of 80% of a participant’s highest three-year or five-year average annual rate of regular compensation, depending on the participant’s date of hire. Benefit payments are based upon a participant’s age, length of creditable service, level of compensation and job classification. The most common benefits paid by the Retirement System include normal retirement, disability retirement and survivor benefits. Active members 9,432 Inactive unvested members 3,581 Inactive vested members 403 Retirees and beneficiaries currently receiving benefits 6,284 19,700 Town of Hopkinton, Massachusetts Page 44 of 61 Basic Annual Financial Statements Normal retirement generally occurs at age 65. However, participants may retire after twenty years of service or at any time after attaining age 55, if hired prior to April 2, 2012 or at any time after attaining age 60 if hired on or after April 2, 2012. Participants with hire dates subsequent to January 1, 1978 must have a minimum of ten years’ creditable service in order to retire at age 55. Participants become vested after ten years of service. Benefits commencing before age 65 are provided at a reduced rate. Members working in certain occupations may retire with full benefits earlier than age 65. Ordinary disability retirement is where a participant is permanently incapacitated from a cause unrelated to employment. Accidental disability retirement is where the disability is the result of an injury or illness received or aggravated in the performance of duty. The amount of benefits to be received in such cases is dependent upon several factors, including the age at which the disability retirement occurs, the years of service, average compensation and veteran status. Survivor benefits are extended to eligible beneficiaries of participants whose death occurs prior to or following retirement. Cost-of-living adjustments granted to members of Massachusetts retirement systems granted between 1981 and 1997 and any increases in other benefits imposed by the Commonwealth during those years have been the financial responsibility of the Commonwealth. Beginning in 1998, the funding of cost-of-living amounts became the responsibility of the participating units like the Retirement System. The Retirement System may be amended or terminated in whole or in part at any time by the Massachusetts Legislature, provided that no such modification, amendment or termination shall be made that would deprive a current member of superannuation pension rights or benefits provided under applicable laws of Massachusetts, if such member has paid the stipulated contributions specified in sections or provisions of such laws. There were no significant changes to the Retirement System’s benefit terms in the current fiscal year. Contributions Requirements – Under current MGL, the Retirement System is required to be fully funded by June 30, 2040. Participating employers to the Retirement System are assessed their proportionate share of the total annual pension appropriation. The Town contributed $2,916,805 to the Retirement System in fiscal year 2022, which equaled the actuarially-determined contribution requirement for the fiscal year. The Town’s contributions as a percentage of covered payroll were approximately 16% in fiscal year 2022. Net Pension Liability – At June 30, 2022, the Town reported a liability of $16,725,088 for its proportionate share of the net pension liability. The total pension liability was determined by an actuarial valuation as of January 1, 2022, which was rolled back to the measurement date of December 31, 2021. There were no material changes to the Retirement System’s benefit terms since the actuarial valuation. There were a number of changes to key actuarial data used in the most recent actuarial valuation; the most notable change in actuarial assumption was a reduction in the discount rate from 7.3% to 7.15%. The Town’s proportion of the net pension liability is based on a projection of the Town’s long- term share of contributions to the Retirement System relative to the projected contributions of all employers. The Town’s proportion was approximately 1.25% and 1.57% at December 31, 2021 and 2020, respectively. Town of Hopkinton, Massachusetts Page 45 of 61 Basic Annual Financial Statements Fiduciary Net Position – The elements of the Retirement System’s basic financial statements (that is, all information about the Retirement System’s assets, deferred outflows of resources, liabilities, deferred inflows of resources and fiduciary net position) can be found in the Retirement System’s full financial statements as of and for the year ended December 31, 2021, which can be obtained by contacting the Retirement Board. The Retirement System’s fiduciary net position was determined using the accrual basis of accounting. The Retirement System’s accounting records are maintained on a calendar-year basis in accordance with the standards and procedures established by the Massachusetts Public Employee Retirement Administration Commission, or PERAC. Contributions from employers and employees are recognized in the period in which they become due pursuant to formal commitments, statutory or contractual requirements. Benefit payments (including refunds of employee contributions) are recorded when incurred, regardless of the timing of payment. Investments are reported at fair value; fair value is determined as the price one would receive in an orderly transaction between market participants at a measurement date. Pension Expense – The Town recognized $983,932 in pension expense in the statement of activities in fiscal year 2022. Deferred Outflows of Resources and Deferred Inflows of Resources – At June 30, 2022, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The deferred outflows/inflows of resources at June 30, 2022 are expected to be recognized in the Town’s pension expense (benefit) as follows: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 285,037$ -$ Changes of assumptions 595,522 - Net difference between projected and actual earnings on pension plan investments - 2,843,734 Changes in proportion and differences between Town contributions and proportionate share of contributions 596,398 3,457,221 1,476,957$ 6,300,955$ 2023 (627,969)$ 2024 (1,447,759) 2025 (1,515,705) 2026 (1,232,565) (4,823,998)$ Year ended June 30, Town of Hopkinton, Massachusetts Page 46 of 61 Basic Annual Financial Statements Actuarial Valuation – The measurement of the Retirement System’s total pension liability is developed by an independent actuary. The significant actuarial assumptions used in the latest actuarial valuation included: Actuarial cost method Entry age normal cost method Amortization method Prior year’s total contribution increased by 6.5% for fiscal 2022 through fiscal 2028, and thereafter the remaining unfunded liability will be amortized on a 4.0% annual increasing basis; ERI liability amortized in level payments Projected salary increases Varies by length of service with ultimate rate of 4.00% for Group 1, 4.25% for Group 2 and 4.50% for Group 4 Cost of living adjustments 3.0% of the first $16,000 of retirement income Investment rate of return 7.15% (previously 7.3%) Pre-retirement mortality The RP-2014 Blue Collar Employee Mortality Table projected generationally with Scale MP-2021 Post-retirement mortality The RP-2014 Blue Collar Healthy Annuitant Mortality Table projected generationally with Scale MP-2021 Disabled retiree mortality The RP-2014 Blue Collar Healthy Annuitant Mortality Table set forward one year and projected generationally with scale MP-2021 The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future rates of returns (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return be weighting the expected future rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic rates of return for each major asset class included in the Retirement System’s target allocation as of December 31, 2021 are summarized in the following table: Asset Class Long-Term Expected Asset Allocation Long-Term Expected Real Rate of Return Domestic equity 22.00% 6.11% International equity - developed markets 11.50% 6.49% Emerging markets equity - emerging markets 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 funds, GTAA, risk parity 10.00% 2.63% Private equity 15.00% 9.93% Town of Hopkinton, Massachusetts Page 47 of 61 Basic Annual Financial Statements Discount Rate – The discount rate used to measure the total pension liability at December 31, 2021 was 7.15%, which is a reduction from the previous rate of 7.3%. The projection of cash flows used to determine the discount rate assumed plan member contributions were made at the current contribution rate and that employer contributions will be made at rates equal to the actuarially-determined contribution rates. Based on those assumptions, the Retirement System’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity Analysis – The following presents the Town’s proportionate share of the net pension liability calculated using the discount rate of 7.15% as well as the Town’s proportionate share of the net pension liability using a discount rate that is 1% higher or lower than the current rate: B.Massachusetts Teachers’ Retirement System Teachers and certain administrative employees of the Town’s school department participate in the Massachusetts Teachers’ Retirement System (“MTRS”), a cost-sharing multiple employer defined benefit pension plan. MTRS is managed by the Commonwealth on behalf of municipal teachers and municipal teacher retirees. Like the Retirement System, MTRS was established under Chapter 32 of MGL. The Commonwealth’s legislature has the authority to amend or modify the MTRS’s funding policies. The Commonwealth is a nonemployer contributor to the MTRS and is legally responsible by statute for all actuarially determined employer contributions and future benefit requirements of the MTRS. Therefore, the Town is considered to be in a special funding situation as defined under GAAP. For the year ended June 30, 2022, the Commonwealth contributed $7,299,842 to the MTRS on behalf of the Town. The Town’s proportionate share of the collective MTRS net pension liability at this reporting date was approximately 0.42%, which was based on the actual, actuarially- determined contribution made by the Commonwealth on behalf of the Town as a percentage of the total annual contribution made by the Commonwealth on behalf of all employers. The net pension liability assumed by the Commonwealth on behalf of the Town was $94,800,233 at June 30, 2022. The pension expense incurred by the Commonwealth on behalf of the Town was $7,607,324 for the year ended June 30, 2022, which has been recognized by the Town as intergovernmental revenue and pension expense in the statement of activities for the year ended June 30, 2022. MTRS issues certain financial information to the public on its website – www.mass.gov/mtrs. A more detailed discussion of its funding policies, actuarial assumptions and other inputs used to measure total pension liability may be found there. Current Discount Rate 1% Decrease Current Rate 1% Increase 7.15% 21,634,452$ 16,725,088$ 12,590,286$ Net Pension Liability At Town of Hopkinton, Massachusetts Page 48 of 61 Basic Annual Financial Statements C.Other Postemployment Benefits The Town administers a single-employer defined benefit healthcare plan (the “OPEB Plan”). The OPEB Plan provides health and life insurance benefits (other postemployment benefits) to current and future retirees, their dependent and beneficiaries in accordance with Section 20 of Chapter 32B of MGL. Specific benefit provisions and contribution rates are established by collective bargaining agreements, state law and Town ordinance. All benefits are provided through the Town’s insurance program. The OPEB Plan does not issue a stand-alone financial report since there are no assets legally segregated for the sole purpose of paying benefits under the OPEB Plan. Employees Covered by Benefit Terms – The following employees were covered by the benefit terms as of June 30, 2022: Contributions – The contribution requirements of OPEB Plan members and the Town are established by and may be amended by the Town. Retirees contribute 50% of health and life insurance premiums and 100% of dental insurance premiums. The remainder of the insurance premiums and the costs of administering the OPEB Plan are paid by the Town. For the year ended June 30, 2022, the Town’s average contribution rate was approximately 3% of covered payroll. Net OPEB Liability – The Town’s net OPEB liability was determined using an actuarial valuation as of July 1, 2020, which was rolled forward to the measurement date of June 30, 2022. The components of the net OPEB liability reported by the Town at June 30, 2022 were as follows: The total OPEB liability in the most recent actuarial valuation was determined using the following key actuarial assumptions applied to all periods included in the measurement, unless otherwise specified: Inactive employees or beneficiaries receiving benefits 305 Active employees 630 935 Total OPEB liability 42,394,659$ Plan fiduciary net position (4,360,971) Net OPEB liability 38,033,688$ Plan fiduciary net position as a percentage of total OPEB liability 10.3% Town of Hopkinton, Massachusetts Page 49 of 61 Basic Annual Financial Statements Long-Term Expected Rate of Return – The long-term expected rate of return on OPEB Plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB Plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return were as reflected in the following table: Actuarial cost method Individual entry age normal Investment rate of return 5.7%, net of OPEB plan investment expenses (previously 6.15%) Municipal bond rate 4.09% as of June 30, 2022 (previously 2.18%) Single equivalent discount rate 5.44% (previously 5.50%) Healthcare cost trend rates 4.5% per annum Participation rate 50% to 65% of eligible employees will participate in retiree medical, dental and life insurance plans Pre-retirement mortality RP-2014 Mortality Table for Blue Collar Employees (White Collar for teachers) projected generationally with scale MP-2016, set forward 1 year for females (for non-teachers only) Post-retirement mortality RP-2014 Mortality Table for Blue Collar Healthy Annuitants (White Collar for teachers) projected generationally with scale MP-2016, set forward 1 year for females (for non-teachers only) Disabled Mortality RP-2014 Mortality Table for Blue Collar Healthy Annuitants (White Collar for teachers) projected generationally with scale MP-2016, set forward 1 year (for non-teachers only) Asset Class Target Allocation Long-Term Expected Real Rate of Return Domestic equity - large cap 18.00% 4.42% Domestic equity - small/mid cap 15.50% 4.81% International equity - developed markets 10.25% 4.91% International equity - emerging markets 7.50% 5.58% Domestic fixed income 32.00% 1.00% International fixed income 6.25% 5.98% Alternatives 10.00% 5.98% Cash and cash equivalents 0.50%0.00% 100.00% Real rate of return 3.45% Inflation assumption 2.50% Total nominal rate of return 5.95% Investment expense 0.25% Net investment return 5.70% Town of Hopkinton, Massachusetts Page 50 of 61 Basic Annual Financial Statements Discount Rate – The discount rate used to measure the total OPEB liability was 5.44% versus a discount rate of 5.50% in the previous actuarial report. Changes in the Net OPEB Liability – The following table summarizes the changes in the net OPEB liability for the year ended June 30, 2022: Sensitivity Analyses – The following presents the Town’s net OPEB liability calculated using the current discount rate as well as what the Town’s net OPEB liability would be if it were calculated using a discount rate that is 1% lower or higher than the current discount rate. The following presents the Town’s net OPEB liability calculated using the current healthcare trend rate as well as what the Town’s net OPEB liability would be if it were calculated using a healthcare trend rate that is 1% lower or higher than the current discount rate. Total OPEB Liability Plan Fiduciary Net Position Net OPEB Liability (a)(b)(a) - (b) Balances — beginning of year 40,020,304$ 4,628,716$ 35,391,588$ Changes for the year: Service cost 1,054,075 - 1,054,075 Interest 2,223,283 - 2,223,283 Changes in assumptions 416,773 - 416,773 Employer contributions - 1,740,026 (1,740,026) Net investment income (loss)- (687,995) 687,995 Benefit payments (1,319,776) (1,319,776) - Net changes 2,374,355 (267,745) 2,642,100 Balances — end of year 42,394,659$ 4,360,971$ 38,033,688$ Increase (Decrease) Current Discount Rate 1% Decrease Current Rate 1% Increase 5.44% 44,973,435$ 38,033,688$ 32,530,459$ Net OPEB Liability At Current Healthcare Trend Rate 1% Decrease Current Rate 1% Increase 4.50% 31,915,161$ 38,033,688$ 45,787,899$ Net OPEB Liability At Town of Hopkinton, Massachusetts Page 51 of 61 Basic Annual Financial Statements OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the year ended June 30, 2022, the Town recognized OPEB expense of $4,228,224. Deferred outflows of resources and deferred inflows of resources related to OPEB at June 30, 2022 were reported as follows: Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Investment Custody – In accordance with MGL, the Town Treasurer is the custodian of the OPEB Plan. OPEB Plan assets may be invested and reinvested by the custodian consistent with the prudent investor rule. OPEB Plan assets are segregated from other funds and are not subject to the claims of any general creditor of the Town. Investment Policy – The Town adopted an investment policy for the Town’s OPEB Plan in December 2018. The investment policy seeks to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct investment asset classes. Investment Rate of Return – For the year ended June 30, 2022, the annual money-weighted rate of return on investments, net of investment expense, was approximately -14.9%. The money- weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 1,864,733$ -$ Changes of assumptions 7,291,819 2,461,740 Net difference between projected and actual earnings on OPEB Plan investments 474,288 - 9,630,840$ 2,461,740$ Year Ended June 30, 2023 1,245,638$ 2024 1,243,329 2025 1,224,193 2026 1,683,097 2027 1,713,304 2028 59,539 7,169,100$ Town of Hopkinton, Massachusetts Page 52 of 61 Basic Annual Financial Statements D. Risk Financing The Town is exposed to various risks of loss related to torts; theft, damage, and destruction of assets; errors and omissions; natural disasters; and various employee benefits including health, worker’s compensation, and unemployment compensation. The Town essentially transfers its risk through payment of its annual assessment, which is adjusted according to the Town’s experience history. All insurance except health is carried through conventional, commercial carriers. The amount of claim settlements has not exceeded insurance coverage in any of the previous three years. K. Commitments and Contingencies General – The Town is party to certain legal claims, which are subject to many uncertainties, and the outcome of individual litigation matters is not always predictable with assurance. Although the amount of liability, if any, at June 30, 2022, cannot be determined, management believes that any resulting liability, if any, should not materially affect the basic financial statements of the Town at June 30, 2022. Appellate Tax Board – The Town has pending cases filed with the Massachusetts Appellate Tax Board of the Commonwealth of Massachusetts (“ATB”). In total, the gross Town-assessed value of properties challenged by taxpayers in ATB approximated $888.9 million. Of this total, approximately $358.5 million pertains to assessed commercial real estate values and $531.4 million pertains to assessed personal property values. The Town cannot estimate at this time the amount of previously assessed property taxes (and interest) that may be refunded to these taxpayers, if any. Furthermore, the Town cannot determine the likelihood of the taxpayers’ success at the ATB. Accordingly, no such loss provision has been made in the Town’s basic financial statements. Grant Compliance – Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal and state governments. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time, although the Town expects such amounts, if any, would not have a material effect on its financial condition. Arbitrage – The Town is subject to certain Federal arbitrage laws in accordance with long-term borrowing agreements. Failure to comply with the rules could result in the payment of penalties. The amount of penalties, if any, cannot be determined at this time, although the Town expects such amounts, if any, would not have a material effect on its financial condition. Town of Hopkinton, Massachusetts Page 53 of 61 Basic Annual Financial Statements IV. Implementation of New GASB Pronouncements A. Current Year Implementations In June 2017, the GASB issued GASB Statement No. 87, Leases. This Statement redefined the manner in which long-term leases are accounted and reported. As amended, the provisions of this Statement became effective in fiscal year 2022. The adoption of this standard did not have a material impact on the Town’s financial statements. In June 2018, the GASB issued GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. This statement established accounting requirements for interest costs incurred before the end of a construction period. As amended, the provisions of this Statement became effective in fiscal year 2022. The adoption of this standard did not have a material impact on the Town’s financial statements. In June 2020, the GASB issued GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The objective of this Statement was to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution OPEB plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code Section 457 deferred compensation plans that meet the definition of a pension plan and for benefits provided through those plans. The provisions of this Statement became effective in fiscal year 2022. The adoption of this standard did not have a material impact on the Town’s financial statements. B. Future Year Implementations In May 2019, the GASB issued GASB Statement No. 91, Conduit Debt Obligations. The objective of this Statement is to standardize the reporting of conduit debt obligations by issuers by clarifying the existing definition of conduit debt obligation, among other matters. As amended, the provisions of this Statement are effective for financial reporting periods beginning after December 15, 2021 (fiscal year 2023). The Town is currently evaluating whether adoption will have a material impact on the financial statements. In March 2020, the GASB issued GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial reporting by addressing issued related to public-private and public-public partnership arrangements. The provisions of this Statement are effective for financial reporting periods beginning after June 15, 2022 (fiscal year 2023). The Town is currently evaluating whether adoption will have a material impact on the financial statements. Town of Hopkinton, Massachusetts Page 54 of 61 Basic Annual Financial Statements In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information Technology Arrangements. The objective of this Statement is to address accounting for subscription-based information technology arrangements to government end users based on the standards established in Statement No. 87, as amended. The provisions of this Statement are effective for financial reporting periods beginning after June 15, 2022 (fiscal year 2023). The Town is currently evaluating whether adoption will have a material impact on the financial statements. In June 2022, the GASB issued GASB Statement No. 100, Accounting Changes and Error Corrections – An Amendment of GASB Statement No 62. The objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent and comparable information for decision making or assessing accountability. The provisions of this Statement are effective for financial reporting periods beginning after June 15, 2023 (fiscal year 2024). The Town is currently evaluating whether adoption will have a material impact on the financial statements. In June 2022, the GASB issued GASB Statement No. 101, Compensate Absences. The objective of this Statement is to update the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The provisions of this Statement are effective for financial reporting periods beginning after December 15, 2023 (fiscal year 2025). The Town is currently evaluating whether adoption will have a material impact on the financial statements. * * * * * * Town of Hopkinton, Massachusetts Page 55 of 61 Basic Annual Financial Statements Year Ended June 30, Proportion of the Net Pension Liability Proportionate Share of the Net Pension Liability Covered Payroll Proportionate Share of the Net Pension Liability as a Percentage of Covered Payroll Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 2022 1.25%16,725$ 18,553$ 90.1%61.1% 2021 1.57%24,096 17,003 141.7%53.4% 2020 1.63%26,084 16,297 160.1%49.5% 2019 1.63%25,369 14,509 174.9%46.4% 2018 1.46%20,654 13,911 148.5%49.3% 2017 1.51%21,332 13,436 158.8%45.5% 2016 1.51%19,499 12,526 155.7%46.1% 2015 1.40%16,829 12,045 139.7%47.7% Year Ended June 30, Actuarially Determined Contribution Contributions in Relation to the Actuarially Determined Contribution Contribution Deficiency (Excess) Covered Payroll Contributions as a Percentage of Covered Payroll 2022 2,910$ 2,916$ (6)$ 18,553$ 15.7% 2021 2,487 2,487 - 17,003 14.6% 2020 2,335 2,335 - 16,297 14.3% 2019 2,106 2,106 - 14,509 14.5% 2018 1,985 1,985 - 13,911 14.3% 2017 1,836 1,836 - 13,436 13.7% 2016 1,729 1,729 - 12,526 13.8% 2015 1,812 1,812 - 12,045 15.0% These schedules are presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is completed, information is presented for those years in which information is available. See accompanying independent auditors' report. SCHEDULE OF THE TOWN'S CONTRIBUTIONS TO THE PENSION PLAN (dollar amounts are in thousands) TOWN OF HOPKINTON, MASSACHUSETTS REQUIRED SUPPLEMENTARY INFORMATION TOWN PENSION PLAN SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (dollar amounts are in thousands) Town of Hopkinton, Massachusetts Page 56 of 61 Basic Annual Financial Statements For the Year Ended June 30, * Commonwealth's Proportion of the MTRS Net Pension Liability Town's Proportion of the MTRS Net Pension Liability Commonwealth's Proportionate Share of the MTRS Net Pension Liability On Behalf of the Town Commonwealth's Actuarially Determined Contribution Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 2022 100%0%94,800$ 7,300$ 62.0% 2021 100%0%119,788 6,519 50.7% 2020 100%0%105,890 6,063 53.9% 2019 100%0%98,705 5,473 54.8% 2018 100%0%82,200 4,438 54.3% 2017 100%0%106,881 5,376 52.7% 2016 100%0%64,175 3,784 55.4% * Amounts determined for the previous year ended June 30. Contributions to the MTRS are the responsibilty of the Commonwealth of Massachusetts. Accordingly, the Town has not recognized any portion of the net pension liability relative to Town employees covered under the MTRS pension plan. These schedules are presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is completed, information is presented for those years in which information is available. See accompanying independent auditors' report. TOWN OF HOPKINTON, MASSACHUSETTS REQUIRED SUPPLEMENTARY INFORMATION MASSACHUSETTS TEACHERS RETIREMENT SYSTEM PENSION PLAN SCHEDULE OF THE COMMONWEALTH'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (dollar amounts are in thousands) Town of Hopkinton, Massachusetts Page 57 of 61 Basic Annual Financial Statements 2022 2021 2020 2019 2018 Total OPEB Liability: Service cost 1,054$ 691$ 676$ 745$ 931$ Interest 2,223 1,837 1,723 1,585 1,517 Changes in benefit terms - - (1,591) - - Experience differences - 1,868 - 1,237 - Changes in assumptions 417 9,708 - (3,623) - Benefit payments (1,320) (1,201) (1,140) (1,127) (928) Net Change in Total OPEB Liability 2,374 12,903 (332) (1,183) 1,520 Total OPEB Liability: Beginning of year 40,020 27,117 27,449 28,632 27,112 End of year (a) 42,394$ 40,020$ 27,117$ 27,449$ 28,632$ Plan Fiduciary Net Position: Contributions 1,740$ 2,011$ 1,541$ 1,527$ 1,308$ Net investment income (loss)(688) 801 87 135 87 Benefit payments (1,320) (1,201) (1,140) (1,127) (928) Net Change in Plan Fiduciary Net Position (268) 1,611 488 535 467 Plan Fiduciary Net Position: Beginning of year 4,629 3,018 2,530 1,995 1,528 End of year (b) 4,361$ 4,629$ 3,018$ 2,530$ 1,995$ Net OPEB Liability — End of Year (a) - (b) 38,033$ 35,391$ 24,099$ 24,919$ 26,637$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 10.3% 11.6% 11.1% 9.2% 7.0% Covered payroll 51,060$ 49,573$ 49,840$ 48,388$ 44,961$ Net OPEB Liability as a Percentage of Covered Payroll 74.5% 71.4% 48.4% 51.5% 59.2% This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is completed, information is presented for those years in which information is available. See accompanying independent auditors' report. Year Ended June 30, TOWN OF HOPKINTON, MASSACHUSETTS REQUIRED SUPPLEMENTARY INFORMATION OTHER POSTEMPLOYMENT BENEFITS PLAN SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS (dollar amounts are in thousands) Town of Hopkinton, Massachusetts Page 58 of 61 Basic Annual Financial Statements 2022 2021 2020 2019 2018 2017 Actuarially determined contribution 2,798$ 2,326$ 2,450$ 2,495$ 2,599$ 2,641$ Contributions in relation to the actuarially determined contribution (1,740) (2,011) (1,541) (1,527) (1,308) (2,261) Contribution deficiency (excess)1,058$ 315$ 909$ 968$ 1,291$ 380$ Covered payroll 51,060$ 49,573$ 49,840$ 48,388$ 44,961$ 43,652$ Contribution as a percentage of covered payroll 3.41% 4.06% 3.09% 3.16% 2.91% 5.18% Notes to Schedule: Valuation date Asset valuation method Actuarial cost method Inflation Investment rate of return Municipal bond rate Single equivalent discount rate Healthcare cost trend rates Pre-retirement mortality Post-retirement mortality Disabled mortality 2022 2021 2020 2019 2018 2017 Annual money-weighted rate of return, net of investment expenses -14.86% 24.46% 3.02% 6.69% 4.75% N/A This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is completed, information is presented for those years in which information is available. See accompanying independent auditors' report. July 1, 2020 TOWN OF HOPKINTON, MASSACHUSETTS REQUIRED SUPPLEMENTARY INFORMATION OTHER POSTEMPLOYMENT BENEFITS PLAN SCHEDULE OF CONTRIBUTIONS Year Ended June 30, (dollar amounts are in thousands) 2.50% per annum SCHEDULE OF INVESTMENT RETURNS Market value of the assets as of the reporting date Individual entry age normal 5.7% net of OPEB Plan investment expenses (previously 6.15%) 4.09% as of June 30, 2022 (previously 2.18%) 5.44% per annum, net of OPEB Plan investmet expenses (previously 5.5%) Year Ended June 30, 4.5% per annum RP-2014 Mortality Table for Blue Collar Employees (White Collar for teachers) projected generationally with scale MP-2016, set forward 1 year for females (for non-teachers only) RP-2014 Mortality Table for Blue Collar Healthy Annuitants (White Collar for teachers) projected generationally with scale MP-2016, set forward 1 year for females (for non-teachers only) RP-2014 Mortality Table for Blue Collar Healthy Annuitants (White Collar for teachers) projected generationally with scale MP-2016, set forward 1 year for females (for non-teachers only) Town of Hopkinton, Massachusetts Page 59 of 61 Basic Annual Financial Statements Actual Actual Positive Original Final Budgetary Budgetary (Negative) Budget Budget Amounts Encumbrances Adjusted Variance Revenues: Property taxes, net of tax refunds 81,364,793$ 81,364,793$ 84,510,992$ 84,510,992$ 3,146,199$ Intergovernmental 9,449,169 9,449,169 9,758,203 9,758,203 309,034 Motor vehicle and other excise taxes 2,949,000 2,949,000 3,463,363 3,463,363 514,363 Licenses and permits 45,000 45,000 106,497 106,497 61,497 Penalties and interest on taxes 138,307 138,307 708,638 708,638 570,331 Fines and forfeitures 13,000 13,000 9,895 9,895 (3,105) Departmental and other revenues 785,000 785,000 1,305,718 1,305,718 520,718 Investment income 95,000 95,000 152,629 152,629 57,629 Total Revenues 94,839,269 94,839,269 100,015,935 100,015,935 5,176,666 Expenditures: General government 5,776,605 5,776,605 4,902,180 223,851$ 5,126,031 650,574 Public safety 7,418,463 7,418,463 6,852,202 32,499 6,884,701 533,762 Education 55,215,764 55,215,764 54,516,606 693,919 55,210,525 5,239 Public works 7,096,513 7,096,513 6,234,242 748,710 6,982,952 113,561 Health and human services 1,304,017 1,304,017 1,163,084 35,945 1,199,029 104,988 Culture and recreation 891,492 891,492 788,325 371 788,696 102,796 Pension and fringe benefits 13,292,954 13,292,954 11,907,440 15,689 11,923,129 1,369,825 State and county charges 460,515 460,515 479,647 - 479,647 (19,132) Debt service 7,532,400 7,532,400 6,992,499 -6,992,499 539,901 Total Expenditures 98,988,723 98,988,723 93,836,225 1,750,984$ 95,587,209 3,401,514 Other Financing Sources (Uses): Transfers in 1,328,601 1,328,601 1,362,907 1,362,907 34,306 Transfers out 114,486 (2,928,503) (2,928,503) (2,928,503) - Total Other Financing Sources (Uses)1,443,087 (1,599,902) (1,565,596) (1,565,596) 34,306 (Deficiency) Excess of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses (2,706,367) (5,749,356) 4,614,114$ 2,863,130$ 8,612,486$ Other Budgetary Items: Prior year encumbrances 1,272,488 1,272,488 Free cash 1,120,561 4,163,550 Other items 313,318 313,318 Total Other Budgetary Items 2,706,367 5,749,356 Net Budget -$-$ See notes to required supplementary information. See accompanying independent auditors' report. TOWN OF HOPKINTON, MASSACHUSETTS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2022 Budgeted Amounts BUDGET AND ACTUAL - GENERAL FUND Town of Hopkinton, Massachusetts Page 60 of 61 Basic Annual Financial Statements TOWN OF HOPKINTON, MASSACHUSETTS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2022 An annual budget is legally adopted for the general fund. Financial orders are initiated by department heads, recommended by the Finance Committee and approved by the Town members at the Town’s annual meeting, which generally takes place each May. At the close of each fiscal year, unencumbered appropriation balances lapse or revert to unreserved fund balance. Budgetary control is exercised through the Town’s accounting system. The Town adopts an annual budget for the general fund in conformity with the guidelines above. The Town’s senior accounting manager is responsible to ensure that budgetary control is maintained in the manner in which the appropriations were voted by Town Meeting. Budgetary control is exercised through the Town’s accounting system. The Town’s general fund is prepared on a basis other than GAAP. The “actual” results column of the Schedule of Revenues, Expenditures and Changes in Fund Equity – Budgetary Basis is presented on a budgetary basis to provide a meaningful comparison with the budget. A reconciliation is provided below: Basis of Accounting Differences Fund Perspective Differences Total Revenues — statutory basis 100,015,935$ On-behalf payments 7,607,324$ -$7,607,324 Revenue recognition 139,178 - 139,178 Stabilization income -654,448 654,448 Revenues — GAAP basis 7,746,502$ 654,448$ 108,416,885$ Expenditures — statutory basis 93,836,225$ On-behalf payments 7,607,324$ -$7,607,324 T ransfer treatment - indirect costs -(698,596) (698,596) Expenditures — GAAP basis 7,607,324$ (698,596)$ 100,744,953$ Net transfers — statutory basis (1,565,596)$ Stabilization transfers -$922,833$ 922,833 Transfer treatment - indirect costs -(698,596) (698,596) Net transfers — GAAP basis -$ (698,596)$ (1,341,359)$ Town of Hopkinton, Massachusetts Page 61 of 61 Basic Annual Financial Statements TOWN OF HOPKINTON Select Board NOTICE - PUBLIC INFORMATION SESSION PROPOSED GENERAL BYLAW AMENDMENTS The Select Board will hold a public information session on Tuesday, February 28, 2023 at 7:15 p.m.on proposed amendments to the General Bylaws which are on the warrant for the 2023 Annual Town Meeting. The meeting will be held in Room 215/216 at the Town Hall, 18 Main St., Hopkinton MA. Remote participation is available via Zoom, with the link on the web meeting calendar listing for the meeting at www.hopkintonma.gov and on the Select Board meeting agenda. The article sponsors are seeking public comments, recommendations and questions on the proposed amendments. Proposed General Bylaw amendments are: ●Housekeeping Amendment - Delete Definition (Ch. 1 Art. V) - With the passage of chapter 90 of the Acts of 2021 by the Massachusetts General Court, the Town Charter has been amended so that the defined “Board of Selectmen” no longer exists in the Home Rule Charter of the Town of Hopkinton. Since the definition is no longer needed, it is proposed to be deleted. (Sponsor: Town Clerk) ●Minutes Bylaw (Ch. 5 Art VIII) - The Attorney General’s office (AGO) did not have guidance on what constituted a “timely manner” in the approval process of meeting minutes until about a year after the adoption of the Town’s Minutes bylaw in 2017. AGO guidance now specifies approval of meeting minutes within 30 days of the meeting or at a board’s next meeting, whichever is later. The proposed bylaw change from 40 days to 30 days ensures that the Town’s definition aligns with the opinion of the AGO regarding the interpretation of the open meeting law. A second proposed amendment would change “boards, committees, or commissions” to “public bodies” to ensure the Town’s language is consistent with the Open Meeting Law. (Sponsor: Town Clerk) ●Amendments to the Leash Law (Ch. 62 Art. III) - The current bylaw requires dogs to be leashed when off their own property between the hours of 7:00 a.m. and 8:00 p.m. The proposed changes include removing the hour limitation so that dogs must be leased all the time, with an exemption for guide, hunting and therapy dogs, and dogs used in law enforcement. Also proposed is an increase in fees and fines. (Sponsor: Select Board) ●New Short Term Rental Bylaw - The new bylaw would adopt annual licensing requirements for short term rentals of residential property. It would include provisions including requiring sufficient parking, regular trash removal and property maintenance, and compliance with health and safety codes. The bylaw would permit such rentals for a minimum of 2 and a maximum of 30 days; short term rental of less than 2 days would not be permitted. The bylaw would also include penalties for violation, which could include revocation of the license. (Sponsor - Select Board) ●Gun Club Indoor Shooting Requirement - The proposed General Bylaw seeks to limit shooting at gun clubs to indoors so as to reduce noise pollution. (Sponsor: Citizens Petition) 18 Main St., Hopkinton MA 01748 - 508-497-9701 -selectboard@hopkintonma.gov 1 The full text of the amendments are available in the “General Bylaw Amendments - Public Information Session Feb. 28, 2023” document on the Town website:2023 Town Meeting & FY2024 Budget Documents Written comments and questions for the proponents of the proposed Bylaw changes may be submitted by February 22, 2023 to Elaine Lazarus at elainel@hopkintonma.gov. 2 PROPOSED GENERAL BYLAW AMENDMENTS – Feb. 22, 2023 ARTICLE: Housekeeping - Delete Definition; Sponsor: Town Clerk To see if the Town will vote to amend Chapter 1 of the General Bylaws of the Town of Hopkinton by striking “Article V Definitions” in its entirety and changing Article VI, Administration of Fines for Certain Violations, to Article V accordingly. Pass any vote or take any other act relative thereto ARTICLE: Amend Meeting Minutes Bylaw: Sponsor: Town Clerk To see if the Town will vote to amend Section 5-29 “Meeting Minutes,” subsection A, of the General Bylaws of the Town of Hopkinton by striking “boards, committees, and commissions” and in its place insert the phrase “multi-member public bodies” and to also strike the phrase “forty (40) calendar days” of said section and inserting in its place “thirty (30) days” so that the amended c.5 §29.A will read as follows: “Approval of Minutes. All multi-member public bodies of the Town shall approve the minutes of their open session or executive session meetings within thirty (30) days of the meeting, or at its next meeting, whichever is later.” Pass any vote or take any act relative thereto. ARTICLE: Amend Leash Law: Sponsor: Select Board To see if the Town will vote to amend Article III, Leashing of Dogs, in Chapter 62, Animals, of the General Bylaws as follows: 1. By deleting Section 62-3 “Leashing and curbing required certain hours; exception” in its entirety and inserting in its place, a new Section 62-3 “Leashing and curbing required; exceptions” to read as follows: No person who owns or keeps a dog or dogs shall allow the same to run free unless said dog is on the owner's or keeper's premises. Any dog not on the premises of its owner or keeper shall be leashed and curbed, provided that the said leashing or curbing shall not apply to hunting, guide and therapy dogs under direct command of its owner or keeper, or to dogs used in law enforcement. 2. By deleting items B and C in Section 62-4, Violations and penalties, and inserting in its place new items B and C as follows: B. Second offense: $50 C. Third and all subsequent offenses: $100 3. By deleting “$15” in Section 62-5, Redemption fee, and inserting in its place “$25”. Pass any vote or take any act relative thereto. ARTICLE: Short Term Rental Bylaw: Sponsor: Select Board To see if the Town will vote to amend the General Bylaws of the Town of Hopkinton by adopting a new Chapter 164, Short Term Rental of Residential Property, as follows: CHAPTER 164 Short Term Rental of Residential Property §164-1 Purpose The purpose of this Chapter is to establish regulations and a licensing process for administration and enforcement of the short term rental of residential property in the Town of Hopkinton. The regulations and the licensing process are designed to protect the health, safety and welfare of the short term tenants, the property owner, the residents of the surrounding neighborhood and the general public, and to ensure compliance with applicable Massachusetts General Law. §164-2 Applicability The rental of residential property to short term paying guests shall be allowed only in properties whose owners have obtained a license from the Select Board in accordance with the requirements of this Bylaw. §164-3 Definitions SHORT TERM RENTAL - An owner-occupied, tenant-occupied or non-owner occupied property including, but not limited to, a dwelling unit, single-family dwelling unit, condominium, apartment, multi-family dwelling, or a furnished accommodation that is not a hotel, inn, bed and breakfast establishment, lodging house, continuing care retirement facility/assisted living facility/nursing home facility or similar facility, where: 1) at least one room or unit is rented to an occupant or sub-occupant; and 2) all accommodations are reserved in advance; provided, however, that a private owner-occupied property shall be considered a single unit if leased and rented as such. Short term rentals are rentals of 30 consecutive days or less duration. §164-4 General Requirements The following requirements shall apply to all short term rentals: A. A short term rental license shall not be issued for any residential property with outstanding violations or noncompliance with the Building Code, Fire Code, and Board of Health regulations. B. A short term rental is required to have a manager or responsible party who will respond within 2 hours to any problem or complaint and within 30 minutes in an emergency. C. The number of off-street parking spaces on the property shall be sufficient to accommodate all guest occupant vehicles for overnight parking. D. Maximum occupancy is limited to two people per bedroom. E. No commercial trash receptacle such as a dumpster may be maintained on the property to be used for regular trash disposal. Trash removal shall be by regular residential trash removal services, and shall be collected weekly at a minimum. F. Short term rentals shall be subject to inspection by the Board of Health, Fire Department and the Director of Municipal Inspections, to establish compliance with the provisions of this Chapter and the Select Board’s adopted regulations, and to determine compliance with license requirements. G. A short term rental license does not run with the property, and shall be terminated upon sale or transfer of the property for which the license has been issued, or if the person to whom the license is issued is no longer in control of the property; provided, however, that the Select Board may allow the transfer of a license at its sole discretion. H. Short term rental licenses shall not be issued for any dwelling unit which is subject to zoning restrictions that prohibit short term rental use. I. Short term rental licenses shall only permit rentals for a minimum of 2 and a maximum of 30 days. Short term rental for less than 2 days is not permitted. J. Holders of short term rental licenses shall maintain the structure and property exterior in good condition, including the upkeep of lawns, shrubbery and other landscape features. §164-5 License A property owner who wishes to obtain a license for short term rental accommodations shall apply annually for a license from the Select Board. The Select Board shall adopt regulations and an application form and procedures for the licensing process, which may include a fee schedule and a complaint process, in furtherance of the implementation of this Bylaw. All licenses will expire on June 30 of each year. §164-6 Violations and Penalties A. Failure to comply with the requirements of this Bylaw, the Regulations adopted by the Select Board or the conditions of a license issued by the Select Board shall be subject to the following penalties: First Violation: $150 Second violation: $250 Third and subsequent violations: $350 Each day that such violation continues shall be deemed to be a separate violation and be subject to the above penalty. B. If a determination has been made that a short term rental is not in compliance with an issued license, the Select Board may suspend a license until compliance has been achieved, or revoke the license. C. Any person or entity maintaining short term rental accommodations without a license shall be punished by a fine of $500. Each day that such violation continues shall be deemed to be a separate violation and be subject to the penalty. D. In lieu of the penalties set forth in this section, violations may be addressed in accordance with the provisions of M.G.L. c. 40, § 21D, and Ch. 1, Art. II, Noncriminal Disposition, of the General Bylaws of the Town of Hopkinton. Pass any vote or take any action related thereto. ARTICLE: Gun Club Indoor Shooting: Sponsor: Citizens Petition To see if the Town will vote to amend the General Bylaws of the Town of Hopkinton as follows: Protect “we the people, babies, animals & birds”, from noise pollution. Gun clubs, should practice firing gun shorts indoor and stop noise pollution and make the Town of Hopkinton, enjoyable to every citizen, babies, animals & birds. Pass any vote or take any action relative thereto. Draft Short Term Rental Bylaw – Town Counsel Review Comments – Feb. 15, 2023 ARTICLE: Short Term Rental Bylaw: Sponsor: Select Board To see if the Town will vote to amend the General Bylaws of the Town of Hopkinton by adopting a new Chapter 164, Short Term Rental of Residential Property, as follows: CHAPTER 164 Short- Term Rental of Residential Property §164-1 Purpose The purpose of this Chapter is to establish regulations and a licensing process for the administration and enforcement of the short termshort-term rental of residential property in the Town of Hopkinton. The regulations and the licensing process are designed to protect the health, safety, and welfare of the short termshort-term tenants, the property owner, the residents of the surrounding neighborhood, and the general publicpublic, and to ensure compliance with applicable Massachusetts General Laws and regulations. §164-2 Applicability The rental of residential property to short termshort-term paying guests shall be allowed only in properties whose owners have obtained a license from the Select Board in accordance with the requirements of this Bylaw. §164-3 Definitions DWELLING UNIT – An owner-occupied, tenant-occupied or non-owner-occupied residential property including, but not limited to, a dwelling unit, single-family dwelling unit, condominium, apartment, multi-family dwelling, or a furnished accommodation that is not a: hotel; inn; bed and breakfast establishment; lodging house; or continuing care retirement facility, assisted living facility, nursing home facility, or similar facility. LICENSE – A license issued by the Select Board for operation of a Short-Term Rental Unit. OPERATOR – Any person or entity operating a Short-Term Rental Unit. An Operator may be the owner of a Short-Term Rental Unit, or a lessee of a Short-Term Rental Unit with express written permission from the unit’s lessor. SHORT- TERM RENTAL UNIT -– An owner-occupied, tenant-occupied or non-owner occupied property including, but not limited to, a dwelling unit, single-family dwelling unit, condominium, apartment, multi-family dwelling, or a furnished accommodation that is not a hotel, inn, bed and breakfast establishment, lodging house, continuing care retirement 2 facility/assisted living facility/nursing home facility or similar facility,Any Dwelling Unit where : 1) at least one room or unit is rented to an occupant or sub-occupant; and 2) all accommodations are reserved in advance; provided, however, that a private owner-occupied property shall be considered a single unit if leased and rented as such. Short term rentals are rentals of 30 consecutive days or less duration. §164-4 General Requirements The following requirements shall apply to all short term rentals: A. No property other than a Dwelling Unit may be operated as a Short-Term Rental Unit. B. No non-residential property may be operated as a Short-Term Rental Unit. C. No Dwelling Unit may be operated as a Short-Term Rental Unit without a License. D. Notwithstanding the issuance of a License, no Dwelling Unit may be used as a Short- Term Rental Unit except in compliance with these General Requirements. E. No Dwelling Unit shall be operated as Short-Term Rental Unit if it is designated as affordable or otherwise income-restricted, which are subject to affordability covenants or are otherwise subject to housing or rental assistance under local, state, or federal programs or law. F. No Dwelling Unit shall be operated as Short-Term Rental Unit if it is in violation or noncompliance with any provisions of the A short term rental license shall not be issued for any residential property with outstanding violations or noncompliance with the Building Code, Fire Code, and Board of Health regulations. A.G. No Dwelling Unit shall be operated as Short-Term Rental Unit if the Operator, or owner of the property if different from the Operator, is in arears for payment of the unit’s Town taxes, water, or sewage charges. H. No Dwelling Unit shall be operated as Short-Term Rental Unit unless the number of off- street parking spaces for the property on which the unit is located is sufficient to accommodate all guest occupants. I. No Dwelling Unit shall be operated as Short-Term Rental Unit if said unit is subject to zoning or other restrictions that prohibit short-term rental use. B.J. Operators shall designate for each Short-Term Rental Unit a person to be the manager of said unit. Managers shall A short term rental is required to have a manager or responsible party who will respond within 2 hours to any problem or complaint and within 30 minutes in an emergency. C. The number of off-street parking spaces on the property shall be sufficient to accommodate all guest occupant vehicles for overnight parking. Commented [BB1]: I added some additional, suggested provisions. Please feel free to keep or delete. Commented [BB2]: I redrafted this so that even if a License is issued, when one of these conditions occurs, use as a short-term rental must cease until the condition is appropriately addressed. For example, if an annual License is issued and six months in there is a sanitary code violation, continued rental would violate the Bylaw until the violation was addressed, even though 6 months would still remain on the License. Commented [BB3]: I added a few other conditions you may want to tack on to the privilege of operating a short- term rental unit. 3 D.K. The Mmaximum occupancy of any short-term rental unit shall be is limited to two people per bedroom. E.L. No commercial trash receptacle, including but not limited to such as a dumpster, may be maintained on the property on which a Short-Term Rental Unit is located for use by the Short-Term Rental Unit to be used foccupants ofor regular trash disposal. All Ttrash removal for occupants of a Short-Term Rental Unit shall be by regular residential trash removal services, and shall be collected weekly, at a minimum. M. Short-Term Rental Units Short term rentals shall be subject to inspection by the Board of Health, Fire Department and the Director of Municipal Inspections, to establish compliance with the provisions of this Chapter and the Select Board’s adopted regulations, and to determine compliance with license requirements. F.N. All Operators shall maintain an up-to-date log of all occupants that occupy any Short-Term Rental Unit. Said log shall contain all occupants' names, ages, and dates of commencement and expiration of each short-term rental period. The log shall be available for inspection by the Board of Health, Fire Department, and the Director of Municipal Inspections. G.O. A short term rental licenseAll Licenses shall be issued to Operators and shall not does not run with the Short-Term Rental Unit or the property on which the unit is located. All Licenses shall terminate immediately , and shall be terminated uupon any sale or transfer of ownership of the Short-Term Rental Unit or property on which the Short-Term Rental Unit is located. All Licenses shall terminate for which the license has been issued, or if the person Operator to whom the license is issued transfers or is no longer in control of the said Short-Term Rental Unit or property on which the Short- Term Rental Unit is located; provided, however, that the Select Board may allow the transfer of a license at its sole discretion. H. Short term rental licenses shall not be issued for any dwelling unit which is subject to zoning restrictions that prohibit short term rental use. I.P. Short-Term Rental Unit Short term rental may only be rented for a minimum of 2 consecutive days and a maximum of 30 consecutive days. No Operator may rent a Short- Term Rental Unit to the same person for more than 30 consecutive days in any 6-month period. Rental durations outside of these minimum and maximum time periods are prohibited. licenses shall only permit rentals for a minimum of 2 and a maximum of 30 days. Short term rental for less than 2 days is not permitted. Q. Holders of short term rental licensesOperators shall maintain the structure and property exterior in good condition, including the upkeep of lawns, shrubbery, and other landscape features. R. Operators shall furnish each short-term rental occupant with a community information card containing, at a minimum, (i) emergency telephone numbers for the Hopkinton Commented [BB4]: Meant to prevent the loophole of two separate 30 day rentals back to back or separated by 1 day, etc. Formatted: Indent: Left: 0.5", No bullets or 4 Police Department, Fire Department, and manager designated by the Operator, (ii) a description of the regulations, if any, relative to on-street parking at the address and fines for parking violations, (iii) a description of the Town’s trash and recycling requirements, including the date of trash and recycling collection at the address, and (iv) a copy of the Town’s noise bylaw. S. Operators shall post a sign on the inside of the Short-Term Rental Unit providing information on the location of all fire extinguishers in the unit, and, if applicable, the location of all fire exits and pull fire alarms in the dwelling. J.T. Operators shall retain and make available to the Town, upon written request, records to demonstrate compliance with this Section. The Operator shall retain such records for as long as a Dwelling Unit is offered as a Short-Term Rental Unit. §164-5 License A property owner who wishes to obtain a license for short term rental accommodations shall apply annually for a license from the Select BoardOperators shall apply annually to the Select Board for a License for all Short-Term Rental Units. All Licenses will expire on June 30 of each year The Select Board shall may adopt regulations, and an application form, and or other procedures for the licensing processgoverning the issuance and regulation of Licenses and Operators. Short-Term Rental Units shall be annually recorded in a Short-Term Rental Registry for a fee or fees set by the Select Board. , which may include a fee schedule and a complaint process, in furtherance of the implementation of this Bylaw. All licenses will expire on June 30 of each year. §164-6 Violations and Penalties A. Failure to comply with the requirements of this Bylaw, the Rregulations adopted by the Select Board, or the conditions of a license License, or an order issued by the Board of Health, Fire Department, or Director of Municipal Inspections, issued by the Select Board sshall be subject to the following penalties: First Violation: $150 Second violation: $250 Third and subsequent violations: $350 Each day that such violation continues shall be deemed to be a separate violation and be subject to the above penalty. The B. If a determination has been made that a short term rental is not in compliance with an issued license, the Select Board may suspend a license until compliance has been achieved, or revoke the license. The Select Board may suspend or revoke any License for failure to comply with the requirements of this Bylaw, regulations adopted by the Select Formatted: List Paragraph, No bullets or numbering Formatted: List Paragraph, No bullets or numbering 5 Board, conditions of a License, or an order issued by the Board of Health, Fire Department, or Director of Municipal Inspections. C. Any person or entity maintaining Short-Term Rental Unit short term rental accommodations without a license License shall be punished by a fine of $500. Each day that such violation continues shall be deemed to be a separate violation and be subject to the penalty. D. In lieu of the penalties set forth in this section, violations may be addressed in accordance with the provisions of M.G.L. c. 40, § 21D, and Ch. 1, Art. II, Noncriminal Disposition, of the General Bylaws of the Town of Hopkinton. Pass any vote or take any action related thereto. 2023 Annual Town Meeting & FY 24 Budg et Timeline Please note that some of the dates provided below are an estimation and may change. Please call the Town Manager’s office at 508-497-9701 with questions. Any updates will be made to this document. For your convenience, references to relevant state laws, local bylaws, Town Charter and policies are also included. September 29, 2022 Town Manager gains consensus on budget timeline and budget message with Select Board, Appropriation Committee and School Committee. (Charter § 7-2(a)) Town Manager issues Budget Schedule. September 30, 2022 CFO distributes budget materials. October 1, 2022 Deadline for establishing and issuing budget schedule (Charter § 7-2(a)) October 13, 2022 Deadline to submit CPC applications November 1, 2022 Municipal Services budgets due to Town Manager. November 1, 2022 Select Board discusses its potential articles, including any General Bylaw changes November 14, 2022 Town Manager CIP review. November 14, 2022 CPC capital requests due to CIC November 14, 2022 Long Term capital plans due to CIC. November 15, 2022 Select Board Budget Listening Session December 1, 2022 Town officials and multiple member bodies may submit draft warrant articles to Town Counsel for review and comment (S.B. policy). December 6, 2022 Select Board discusses its own potential articles, including any General Bylaw changes. December 8, 2022 Select Board, School Committee, Appropriation Committee Joint Meeting - Budget Update December 15, 2022 School Superintendent presents budget 1 December 19, 2022 Town Manager completes Municipal Services budget review. December 20, 2022 CIC & CPC complete capital hearings and submit to Town Manager. December 20, 2022 Select Board vote to open the ATM warrant on January 1, 2023 (or before). (120 days before ATM) Select Board discusses its own potential articles, including any General Bylaw changes. January 1, 2023 ATM Warrant opens. Submission of proposed warrant articles begins. January 5, 2023 School Superintendent presents budget to School Committee January 10, 2023 Select Board discusses its own potential ATM articles. January 12, 2023 School Committee Public Hearing/Board Discussion, with Select Board and Appropriation Committee January 19, 2023 School Committee Votes FY 23 Budget January 24, 2023 Select Board review its own ATM articles; vote to submit own articles into warrant. January 24, 2023 Town Manager submits a consolidated budget to the Select Board. January 31, 2023 ATM Warrant closes (90 days before ATM, Charter § 2-3). ●All petitions for warrant articles submitted to Town Clerk for signature confirmation. ●Town Manager refers all appropriation articles to Appropriation Committee. ●Select Board refers voter petitions to Board of Registrars (MGL c.39 § 10). ●Select Board refers all zoning articles to Planning Bd. within 14 days of submission (MGL c.40A § 5). January 31, 2023 Select Board conducts budget and capital hearings. Select Board reviews language of its own ATM articles. February, 2023 Planning Board public hearing on zoning articles (date scheduled by Planning Board, Zoning Bylaw §210-153; MGL 2 c.40A §5. February 7, 2023 Draft ATM Warrant to Town Counsel Feb.20 - 24 School Vacation February 7, 14, 28, 2023 Select Board budget and capital hearings. Select Board finalize language of its own ATM articles. March, 2023 Public Forum - General Bylaw articles submitted into Warrant, hosted by those proposing the General Bylaw articles. (optional) March 14, 2023 Select Board budget and capital hearings. Select Board finalize language of its own ATM articles. March 14, 2023 Select Board adopts budget and capital and submits to Appropriation Committee. March 14, 2023 Draft ATM Warrant to Select Board for review. Working session with Department Heads - Non-financial Warrant articles, as needed. Select Board take positions on Warrant articles March 27, 2023 Last day to file nomination papers for town election (MGL c.53 § 7, 49 days prior to election). March 28, 2023 Select Board Review ATM Warrant Select Board take positions on Warrant articles April 4, 2023 Select Board review ATM Warrant. Select Board take positions on Warrant articles. Select Board finalize ballot questions. Select Board review draft Motions. April 6, 2023 Appropriation Committee holds hearing and votes on budget and delivers required report by April 17. (A t least 14 days before ATM, Charter § 7-2(b)) 3 April 7, 2023 Warrant and Motions Document completed. April 10, 2023 Deadline for submission of powerpoint presentations for ATM. Send to Moderator for approval. April 10, 2023 Deadline for final written notice of any ballot questions to be submitted to the Town Clerk (35 days before annual town election, MGL c.54 § 42C). April 11, 2023 Select Board review draft Motions. Select Board take positions on Warrant articles. Select Board sign ATM Warrant. Select Board discuss its town meeting presentations. April 11, 2023 Last day to register to vote for the Annual Town Meeting and Annual Town Election (20 days before Town Meeting/Election M.G.L. c. 51 § 1F). April 12, 2023 Moderator ’s Meeting: Review of final motions and meeting process with Town Counsel, SB Chair, Moderator, Appropriation Committee Chair, Town Manager, Principal Planner/Planning Board Chair, School Committee Chair, School Superintendent, Finance Director, Town Clerk, Asst. Town Manager, Deputy Moderator. School Vacation April 17 - 21 April 17, 2023 Appropriation Committee Report Due (At least 14 days before ATM, Charter § 7-2(b)) April 17, 2023 Town Report, Q&As and other documents made available (Annual Town Report 14 days before ATM, Charter § 3-1(f)). April 17, 2023 All Town Meeting Reports/handouts Are Published and Available to the Public April 18, 2023 Select Board review and assign town meeting duties/presentations. April 21, 2023 Combined Election and Warrant posted at least 8 days before ATM (Bylaws § 47-1; MGL c.39 §§ 9A, 10). May 1, 2023 Annual Town Meeting (First Monday in May, Bylaws §47-2) 4 May 15, 2023 Annual Town Election (3rd Monday in May, Bylaws §47-2) 5 FY 2024 Comprehensive Budget Proposal https://drive.google.com/drive/folders/199yLLtzzWFEIE48nmyfa_7FWAa9SDm0M?usp=sharing FY24 Budget Questions for Select Board Consideration Feb. 28, 2023 Select Board Meeting 1)Pages 1 and 2 of the Comprehensive Budget Message identified several departments that have submitted over-target budget requests, including the Hopkinton Public Schools. The Select Board has heard from departments on these requests and – to move forward with the process – it would be helpful to know if the Select Board supports the over-target requests; or whether the Select Board will direct some specific reductions in over-target requests. 2)The Comprehensive Budget Message recommends several actions that support Town Financial Policies, including: ●increased contributions to the OPEB account; ●funding to raise stabilization balances to adjust for growth in the overall budget growth; ●and, payment for all recurring expenses with recurring revenue sources. It would be helpful to know if the Select Board is committed to retaining this focus on compliance with financial policies, or if the Select Board supports backing off on some of these actions to balance the budget. 3)The Town has increased public engagement in the budget process in this cycle through a number of public listening sessions. The Select Board may want to consider additional public outreach, now that reviews of Departmental requests have been held. 4)The budget process has included a clear focus on the bow wave of capital requests that can only be achieved as debt exclusions under Proposition 2 ½ — And, there has been extensive discussion of the tax impact those pending requests could have above and beyond the tax levy limit. Considering the future tax impact issue, it would be helpful to know if the Select Board plans to support all five requests for capital borrowing shown in Enclosure (5) of the Budget Transmittal;or whether the Select Board supports deferring some or all of those proposals to manage the multi-year tax impact. 5)Considering the four preceding questions and the tax impact issues discussed, is the Select Board comfortable with a combined tax impact of 2.9% for spending within the tax levy and all five proposed capital projects this year? 6)There has been reasonable concern expressed about the multi-year tax impact of the large bow wave of capital projects, the MWRA connection, and the prospect of future operating requests like this year ’s; that are far over target. Is there specific information the Select Board needs to evaluate this year ’s budget regarding that longer-term challenge? © Boston Athletic Association 1 January 5, 2023 Amy Ritterbusch, Chair Select Board 18 Main Street Hopkinton, MA 01748 RE: 127th Boston Marathon Parade Permit – Monday, April 17, 2023 Chair Ritterbusch and Select Board Members: The 127th Boston Marathon is scheduled for Monday, April 17th, 2023. The Boston Athletic Association requests that the Town of Hopkinton issue a parade permit to conduct our annual event. The field size of 30,000 runners remains consistent as previous years, with 4 waves of 7,500 departing every 25 minutes beginning at 10:00AM. Earlier starts for other groups are expected to begin as early as 9:00AM, as attached. The B.A.A. plans to work within the same footprint used in the past, not impacting additional roadways. The race operations team is reviewing these and other items while coordinating with town, state police, and others as required. The B.A.A. requests that Hopkinton’s authorization includes permission to control and utilize the roadway, adjacent sidewalks, and other appropriate areas, as determined in our planning sessions, to conduct the race in a safe and controlled manner. This includes permission to deliver and install course signage, hydration stations, portable toilets, medical stations, timing mats, mile markers, and other equipment as outlined in the included attachments. The Town of Hopkinton is named as additionally insured on our liability insurance policy and a certificate of insurance is included here. The Boston Athletic Association looks forward to working with Hopkinton to conduct a safe and successful race on Patriots’ Day for the athletes, volunteers, and spectators looking to take part in the 127th Boston Marathon. Sincerely, The Boston Athletic Association © Boston Athletic Association 2 Monday, April 17th, 2022 – Patriots’ Day Start Times 6:00 AM – Military Marchers 9:02 AM – Men’s Wheelchair 9:05 AM – Women’s Wheelchair 9:30 AM - Handcycles and Duos 9:37 AM – Professional Men 9:45 AM – Professional Women 9:50 AM – Para Athletics Division 10:00 AM – Wave 1 10:25 AM – Wave 2 10:50 AM – Wave 3 11:15 AM – Wave 4 TOWN OF HOPKINTON SELECT BOARD 18 Main Street, Hopkinton, MA 01748 508-497-9700 www.hopkintonma.gov 1 PARADE PERMIT APPLICATION Date: _______________________ Applicant Name: ______________________________________________________________ Applicant Address: ____________________________________________________________ Telephone Number: _____________________ Email: _______________________________ Applicant: □ Private/Individual □ Business □ Non-Profit □ Town Dept./Board/Committee Date of Event: _______________ Rain Date: _______________ Time: _______________ Road Closures: _______________________________________________________________ Please provide a description/purpose of the event in the space below. (Attach a separate visual or map of the complete route of the event) Route Starting Point: ________________________ Ending Point: _______________________ Expected Number of Participants: __________________________________________________ Person Responsible for Control of Litter: _____________________ Phone: _________________ On-Site Person Responsible (Day of Event): _____________________ Phone: ______________ ADDITIONAL REQUIREMENTS: 1. A Certificate of Insurance must be provided with this application, naming the Town of Hopkinton as an additional insured for at least $1 million dollars in the case of accident. 2. Map, plan, or specific written description of the route of the proposed event. 3. Safety Plan 4. Litter Control Plan 2 The undersigned Applicant agrees that the Applicant and parade participants will conform to applicable laws, bylaws and regulations, as well as special requirements that may be made a condition of the granting of a Parade Permit pursuant to this application. I/we agree to hold the Town of Hopkinton harmless from any and all liability and will defend the Town of Hopkinton in connection therewith. ___________________________________________________ _______________________ Signature of Applicant Date Revised 10/5/2021 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2016 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY Willis Towers Watson Northeast, Inc. c/o 26 Century Blvd P.O. Box 305191 Nashville, TN 372305191 USA Boston Athletic Association 185 Dartmouth Street, 6th Floor Boston, MA 02116 Certificate Holder is Additional Insured as respects the B.A.A. Boston Marathon and related events. Aggregate limits of liability apply on a per location basis on the General Liability policy evidenced above. Coverage is Primary and Non-contributory, Umbrella/Excess Follows Form. Town of Hopkinton Board of Selectmen 18 Main Street Hopkinton, MA 01748 07/19/2022 1-877-945-7378 1-888-467-2378 certificates@willis.com National Casualty Company 11991 W25448888 A 2,000,000 500,000 5,000 2,000,000 2,000,000 2,000,000 Y 6L-KKO-00000092273-00 06/30/2022 06/30/2023 A 5,000,000 Y 6L-XKO-00000092275-00 06/30/2022 06/30/2023 5,000,000 260015122804889SR ID:BATCH: Willis Towers Watson Certificate Center Page 1 of 1 B. A. A. BOSTON M ARATHON BOSTON, M ASSACHUSETTS USATF CERTIFIED COURSE — MA14012RN MEASU RED BY RAY NELSON / JUSTI N K UO 8/6 ,7/2014 EFFECTIVE 8/19/2014 —12/31 /2024 \J1a"' e ray St. j-* i_-- To N 5TARTJ i I, t/• ,,a1 / 3.5 ' ROA D y4 COVERd o.,5n Ss E/H X1.51 to ' L" GRA SS 1SLAND J i ,f CenTral St . R�-e.13S 0A$ 2 ,• V35,. iri�0\ S' ElAN' -HofK STP•1;•1 R �P 4 5 NATICK WW1STATU 1 I &CONCRETE BAS ;� O) 113.1; ;14% ,1 (t WELLESLEY 1 / 17: C OMJ4� N�ALTy NEWTON :3010; Com monwealth Ave. t {lb , �, CiCis na7:19? ,44-„, .. St ec07S 5,1 a/nuT •:a8 st• ,r ho^ PASS O. `v AVE . cn (35K'i` Ce ve�and (g) ;sip,oircle ,,5\2-5‘; ar3I ton =�o n St —46 "ST . �' •'8eac x x B OSTO N DOOR #665 — " — 'PENCIL -THICK' GROOVE 17-kj ROg) COVER I ON TOP OF CU RB BOYSTO N ST. • 6 FT. 4 IN.. FI NIS H ST RIP r FINIS H EAST E ND OF STRIP Permitting Team Comments Parade Permit-127th Boston Marathon SB Meeting- 02/28/2023 January 18, 2023 The DPW's only comment is that we request to be reimbursed for our overtime costs associated with the Marathon as has been past practice. John K. Westerling Director of Public Works, Hopkinton DPW ____________________________________________________________________________ January 18, 2023 The FD has no comment at this time. Chief Miller Hopkinton Fire Department. ____________________________________________________________________________ February 16, 2023 The PD works very closely with the BAA to meet our logistics and security concerns. We have no further comments at this time. Chief Bennett Hopkinton Police Department ____________________________________________________________________________ February 21, 2023 No comments. Dave Daltorio Town Engineer ____________________________________________________________________________ Vasudha Dutta <vdutta@hopkintonma.gov> Boston Marathon Select Board Meeting Materials 1 message Lauren Proshan <lproshan@baa.org>Fri, Feb 24, 2023 at 11:49 AM To: Vasudha Dutta <vdutta@hopkintonma.gov> Hopkinton Select Board Dear Members of the Hopkinton Select Board, I am pleased to present to you the redesigned Boston Marathon Start Line on behalf of the Boston Athletic Association. We have collaborated with Hopkinton Town Manager, Hopkinton Marathon Committee (HMC), Hopkinton Police Department, Hopkinton Fire Department, and Hopkinton Department of Public Works in creating the enclosed drawings. The design highlights the following features: A refreshed “look-and-feel” that showcases the Town of Hopkinton. A design that is in harmony with the Boston Marathon Finish Line and consistent with the overall event brand. A capacity of 200+ people, a combination of seated and standing positions Unobstructed sightlines for those in the stands ADA access to the start line spectating area • Coverage for announcers and official starters Use of Hopkinton bleacher systems previously introduced by the HMC. A public viewing area for 800 people on Hopkinton Common inclusive of designated area for approximately five vendors An equitable experience for all professional Athletes in the various divisions An area that conceals operational functions for the most favorable reflection of event production Improved locations for [new] broadcast partners to highlight the Town of Hopkinton in the broadcast. We are delighted to present this design in conjunction with the Hopkinton Marathon Committee at the Select Board meeting on February 28, 2023. Sincerely, Lauren Tallon Proshan Chief of Race Operations and Production Boston Athletic Association 185 Dartmouth Street, 6th Floor Boston MA 02116 (c) 413-575-8706 www.baa.org Lauren Tallon Proshan Chief of Race Operations and Production Boston Athletic Association 185 Dartmouth Street, 6th Floor Boston MA 02116 (c) 413-575-8706 www.baa.org 2 attachments Start Area Design .pdf 239K Start Line Design .pdf 807K Rev. 02/16/23 1 23 WC 20x20 40x140 O P S 20x20 30x110 ADAPTIVE 40x80 INFO S AA M E D I C A L PRO ATHLETES HOPKINTON COMMON AND START MAP S T A R T JIB CAM M E D I A PUBLIC VIEWING AREA BAA VIP ATHL E T E R O U T E T O S T A R T MEDIA CAM GR TV TRUCKS VIP EXIT WCVB 9 1 1 WARM-UPS AND SP E C T A T O R C R O S S I N G RESTRICTED AREA RESTRICTED AREASPECTATOR ACC E S S SPECTA T O R A C C E S S HANDCYCLE ROUTE TO START WC/HC STAGING HANDCYCLE ROUTE TO START VENDORSCAM WC GEAR DROP HERE W W W W ? vigiiiligh MARATHON RIND RE E & '�Q g 1 5 ,Ao/ Oars of,)0��busbyhgN■rdbl } IrL 14 *wasp gionsee• of al 111q 4 y 2) Q71 s 3;, 1j moo ) � � I Yl �Y r �;�n tsar; ¢ fe fri elOr )-Ase, e a r Bly-Al,e___ pa=, c9J7o) ' Peke. AMIN Appgaied Pr! vole del 16111Ni cc Thin Panuatmt - Tammy MARATHON FIRM mum& rempooded V Dab ►. DAppealed toy vale at dm Baarei Geriaitawi _ :. . aw Tam Accastant Tosserar °rammed= at° Uale MARATHON RID REQueEr I -10 p)Cinbn ,1 )f >hsac J ?7 ki wriadreat 0 l/ / 0 1, )') Amount A p,oisd by vas aft Beard tiedridrala o Town Aaoanl■nt Troa r • Orainizetion n' Deperhaerst To:Select Board From:Norman Khumalo Date:February 24, 2023 Ref:Staff Report - Select Board February 28, 2023 Meeting 1.Draft SWAP/TRIC Shared Housing Services Office Intermunicipal Agreement:The towns of Hopkinton, Medfield, Milton, Norwood, Randolph, and Sharon have agreed to create a shared housing office. These communities are part of either the South-West Advisory Planning Committee (SWAP) or Three Rivers Interlocal Council (TRIC) sub-regions of the Metropolitan Area Planning Council (MAPC), the regional planning agency for Greater Boston. Hopkinton has agreed to host the office. The core housing services provided by this office will include planning the creation of affordable housing, monitoring the affordable housing inventory, and providing technical support. The participating towns will share in the cost of provisioning this service. The participating towns have drafted an Intermunicipal Agreement to be signed by the end of March. The initial term of the agreement expires in June 2026. Hopkinton will provide program management, administrative, financial, and procurement support as the lead agency. The participating municipalities will proportionally share the total cost of operating the SWAP/TRIC Shared Housing Services Office based on the percentage of hours planned to support each municipality for core services. The participating Towns have agreed on a formula for determining the fee schedule. They will apportion the actual fees based on the contract amount with the consultant. The 2022 Annual Town Meeting appropriated CPA funding of $23,000 and established the revolving fund for this service.More information about the Shared Housing Services office can be found here. 2.Main Street Corridor Project:Dave Daltorio (Town Engineer/Facilities Director) and Michell Murdock (Project Specialist) have provided the attached update (See Attachment 1). 3.Per- and Polyfluoroalkyl Substances (PFAS) treatment project:Per- and Polyfluoroalkyl Substances (PFAS) treatment project:The Town has advertised the construction bid documents. They are available at www.accentblueprints.com.The Town has scheduled a pre-bid conference at the Well #6 site on Monday, February 27, 2023, at 10:00 a.m. Construction sub-bids are due March 2, 2023, at 11:00 a.m. Construction bids are due March 9, 2023, at 11:00 a.m. 4.Massachusetts Water Resources Authority (MWRA) Southborough Interconnection project: Hopkinton and Southborough are developing the first draft of the Intermunicipal Agreement for this project.More background information on the MWRA Southborough Interconnection project is available here. 1 Attachment 1 TO:Select Board FROM:Michelle Murdock, Dave Daltorio VIA:Norman Khumalo, Town Manager DATE:February 22, 2023 SUBJ:Select Board Update:Main Street Corridor Project Date: February 28, 2023 MassDOT’s Original Completion Date for the Project is October 22, 2023. That date was set at the award of the contract. As of the most recent schedule, submitted by A.F. Amorello on November 8, 2002, the project is still on schedule for completion by that date. Phase 1 and 2 of Main Street Reconstruction has been completed. This work focused on the area from West Main Street to the Fire Station and the 135/85 intersection. This work included the full-depth excavation of these sections of Main Street and the installation of two of the three final paving courses. The final course of pavement will be installed at the end of the project. Phase 3 of Main Street Reconstruction, from the 85/135 intersection to Ash Street, will be started after the 2023 Boston Marathon. Phase 1 and 2 of the Main Street reconstruction have been completed. This work focused on the area from West Main to the Fire Station and the 135/85 intersection and included the full-depth excavation of these sections of Main Street and the installation of 2 of the 3 final paving courses. A.F. Amorello & Sons, Inc. finished work for the season on Thursday, December 22. Winterization of the project is complete, including asphalt for driveways, sidewalks and wheelchair ramps. A base coat of asphalt has been placed for the shared-use path which will be plowed and used by all users during the winter. “Motorized Vehicles Prohibited” signs have been installed. Traffic signals at the Wood Street and the 135/85 intersection have been completed. Eversource is onsite and has started underground infrastructure. The guard rail at CVS has been installed by Premier Fence. Construction materials and equipment on Marathon Way has been moved to the area behind Center School. Amorello is waiting for the schedule of their subcontractor for the remaining materials. An enquiry is in with MassDOT for when the materials near the DoughBoy statue will be moved. 2 The snow dump has been cleared. To Date Construction Cost and Quantities through 9/24/22 Paid By Contract Bid Total (incl. contingencies) As of Sept, 24, 2022 Percent Completed MassDOT/TIP $9,919,513.90 $5,535,689 56% Paid By Town $10,014,173.48 $6,578,583 66% Total Cost $19,933,687.38 $12,114,272.90 61% Work Completed - rounded (does not include every bid item) As of 12/18/2021 As of 9/24/2022 Percent Complete Catch Basins 80 82 100% Drain Manholes 40 40 100% Reinforced Concrete Pipe 5,100 ft 5,100 ft 100% Ductile Iron Pipe 727 ft 727 ft 100% Hot Mix Asphalt (all types)2,750 tons 10,268 tons 71% Gravel (all types)2,456 cy 9,873 cy 51% Rock Excavation 1,037 cy 1,037 cy Est. 100% Grading and Compaction n/a 18,000 sy 47% Granite Curbing n/a 3,0147 lf 30% Underground Conduit 2,012 ft 11,459 ft 42% Utility Vaults Installed 12 18 1.100% Excavation (all types)968 cy 13,326 cy 56% Concrete Sidewalk n/a 565 sy 6% 3 Community Contact (2-3-23 thru 2-21-23) ●A total of 8 issues/concerns from the general public and project abutters were received, reviewed and researched, and an email response was sent to the individual(s) who reported an issue or asked a question. Issues reported/questions asked included: 1.Email from project abutter to request that the fence on his property be cleaned when work begins in the spring. It was left on the ground during construction and is very dirty; 2.Phone call made to the property owner of the Muffin House to advise that the DPW will be placing barrels in front of the property to address parking issues. The owner confirmed that he will contact the employees on site. 3.Email from project abutter on Grove Street to report that he is still awaiting repairs to fix the flooding that is occurring in his basement. Town staff have let the property owner know that MassDOT has been notified and are awaiting for the schedule to do the repair. 4.Email from property owner at 35 Main to follow up on a few items related to 35 Main Street and the Hopkinton Village Center development; street marking of parking spaces near the Muffin House, written agreement with Town over the use of private business parking spaces from 6pm-midnight, and hydroseeding in front of 25 and 35 Main. 5.Email to property owner at 18 Grove to provide an update regarding curbing in front of the property. 6.Email from property owner at 60 Main Street to ask when their sign can be put back up. After coordination with MassDOT, resetting of the sign is now approved. 7.Email from Planning Board member to ask about curbing near Hopkinton Drug and brick sidewalks which are being used in Ashland. 8.Email from property owner at 121 Main Street to ask about black poles in front of his property; advised that they are speed limit signs and are outside his property limits. Miscellaneous ●The Project website will continue to be updated throughout the Project. Visit the website to sign up for Project Updates. A QR Code has been developed for quick access. ●Project photos and drone coverage of the 135/85 reconstruction have been added to the website https://hopkintonmainstreet.com/construction-photos.htm 4 Select Board Members SELECT BOARD LIAISON LIST FY 2023 Amy Mary Jo Irfan Muriel Shahidul Norman Elaine FINANCE Appropriation Committee X X Board of Assessors X Town Manager's Budget Advisory Team X Capital Improvement Committee X Cable Advisory Committee X PUBLIC SAFETY Animal Control X Fire Department X Police Department X PERMITTING Board of Appeals X Conservation Commission X Planning Board X Board of Health X Permanent Building Committee X EDUCATION School Committee X Regional Voc. Tech School Committee X PUBLIC SERVICES Cemetery Commission X Commission on Disability X HUMAN SERVICES Town Clerk's Office X Personnel Committee X Council on Aging X MetroWest Veterans Service District X X ADA Oversight Committee X Veterans Celebration Committee X Tax Relief Committee X Select Board Members SELECT BOARD LIAISON LIST FY 2023 Amy Mary Jo Irfan Muriel Shahidul Norman Elaine CULTURAL/RECREATIONAL Hopkinton Cultural Council X Marathon Committee X Marathon Fund Committee X Public Library X Parks & Recreation Commission X Youth Commission X Community Preservation Committee X HISTORIC PRESERVATION Woodville Historic District Commission X Hopkinton Historic District Commission X Historical Commission X OTHER Sustainable Green Committee X Trail Coordination and Management Committee X Commissioners of Trust Funds X Lake Maspenock Dam Advisory Group X Fruit Street X Hopkinton Schools Athletic Field Subcommittee X Boston Athletic Association X APPOINTED BOARD/COMMITTEE MEMBERSHIPS Elementary School Building Committee (Life of the Project)X Irvine-Todaro Properties Advisory Group (Life of the Project)X Pratt Farm Master Plan Team (Life of the Project)X Upper Charles Trail Committee (3-year term expiring 6/30/25) X Open Space Preservation Commission (5-year term expiring 6/30/26)X Affordable Housing Trust Fund Board (2-year term expiring 6/30/24)X Metropolitan Area Planning Council Representative, Select Board member (Town Manager Appointment) X X MetroWest Regional Transit Authority (1-year term) X Select Board Members SELECT BOARD LIAISON LIST FY 2023 Amy Mary Jo Irfan Muriel Shahidul Norman Elaine Number of X's:7 8 9 8 9 9 2 Monday, March 20, 2023 6:30pm Hopkinton Center for the Arts - The Loft 98 Hayden Rowe St., Hopkinton, MA 01748-2730 Hosted by Hopkinton Cultural Council 508-904-7417 Message from the Host Hopkinton Cultural Council Grant Recipient and Artist Reception, Please join us as we recognize the 2023 Hopkinton Cultural Council grant recipients. In addition, we are welcoming the grant recipients of 2020, 2021 & 2022 along with the artist who participated in the Diversity Mural and Art on The Trail to be part of the reception that is able to return in person this year. Light refreshments will be provided. The Hopkinton Cultural Council (HCC) is proud to support public programs in the arts, humanities and interpretive sciences which promote access, education, diversity and excellence for our community through granting funds received from the Massachusetts Cultural Council (MCC). For more information on the HCC & MCC, follow on Facebook.com/hopkintonculturalcouncil & www.hop-culture.org and MCC's website massculturalcouncil.org Pending Select Board Member Future Agenda Items February 15, 2023 Items are listed in the order they were identified. Items identified and already discussed at meetings are not included on this list. 1.Social Justice issues - Nasrullah (8/4/20) 2.Master Plan action plan/implementation plan items for Select Board - Ritterbusch (12/1/20) (12/15/20) 3.Examination into municipal cable - Nasrullah (9/7/21) 4.The role of the Select Board in the trails/Upper Charles Trail process and what are the next steps for the Board - Kramer (1/25/22) 5.Consider support for Senate and House bills regarding a temporary moratorium on construction of new jails and prisons in Massachusetts - Kramer (1/25/22) 6.Affordable housing updates - Mannan (5/17/22) 7.Economic Development position - Mannan (5/17/22) 8.West Main St. left turns, Cumberland Farms area - Kramer (5/17/22, 10/18/22) 9.Cemetery Commission Rate Changes - Ritterbusch (6/21/22) 10.Parks & Rec. future plans - Mannan (7/12/22) 11.Status and plans for roads & sidewalks; pavement management plan - Mannan (8/2/22) 12.Board & Committee appointments - fostering volunteerism, outreach, and appreciation - Kramer (9/13/22) 13.Discuss ways to keep seniors in their homes - LaFreniere (10/18/22) 14.Policy on redaction of public survey comments - Ritterbusch (11/1/22) 15.Communications plan for the MWRA connection project - Kramer (11/15/22) 16.Ways to support boards/committees & their Chairs, including reviewing committee Charge, and asking how things are going - Kramer (12/6/22) 17.Discuss volunteer appreciation - Kramer (12/20/22); Mannan (2/14/22) 18.Boston Marathon Ashland Recognition - Ritterbusch (2/14/22) 19.Center School and Elmwood School - 2/14/22 1 2/13/23, 8:56 AM Town of Hopkinton, MA Mail - Idea for comment lIgggpstgo Idea for comment 1 message Rishi Dhupar To: selectboard@hopkintonma.gov Good morning, Elaine Lazarus <elainel@hopkintonma.gov> Mon, Feb 13, 2023 at 8:52 AM I want to have Hopkinton pursue creating a municipal electricity aggregation similar to the other —175 towns in MA that have created them to help reduce our electricity costs for citizens. Link for reference and how to get started: https://www.mass.gov/info-details/municipal-aggregation I am unavailable to attend the next meeting but if this can be brought up and determined if there is any interest in pursuing it. Thanks, Rishi Dhupar https://mail.google.com/mail/u/0/?i k=dbd2da471 e&view=pt&search=all&permthid=thread-f%3A1757724191477763303&si mpl=msg-f%3A1757724191... 1/1 TOWN OF HOPKINTON Health Department 18 Main Street Hopkinton, MA 01748 (508) 497-9725 February 13, 2023 Matheus De Oliveira Silva 70 Hayward Street Hopkinton, MA 01748 Certified Mail & First Class: # 7020 0090 0000 3035 4599 Re: Violation of Title XX Chapter 139 and 310 CMR 7.00 Dear Mr. Silva, The Hopkinton Health Department received multiple nuisance complaints from the residents of Hayward and Hillcrest Streets in Hopkinton, MA. The complaints were related to the storage of bagged insulation on the property, the windblown release of the bagged insulation and the butchering of animals in the front yard of the 70 Hayward Street property. The Hopkinton Health Department most recently responded to complaints on January 18 and February 7, 2023. On these two occasions, bags of insulation were observed stored on the ground, and unprotected along the tan shed, located along the southern side of the property. Any rodent or animal getting into these bags could result in a nuisance condition that the complainants have described. The butchering of animals in the back of your pickup truck/while portions of the animal are suspended from a tree could serve as an attractive nuisance, attracting rodents and other animals to your property. In accordance with the guidance provided by the Central Massachusetts Region of the Massachusetts Department of Environmental Protection and the Massachusetts Department of Agriculture, the Hopkinton Health Department is providing you this Notice of Non -Compliance. Further violation(s) of Title XX Chapter 139 and 310 CMR 7.10 will result in a penalty that could reach $2,880.00, per incident. Please be advised that the Land Use Department is forwarding a separate notice under separate cover. Thank you in advance for your attention to this matter. Si cerely Shaun McAuliffe, MPH, RS, Health Director Cc: Land Use Department, Zoning Officer, Fire Prevention Bureau/Fire Department; Police Department, Town Manager, Select Board, Health Agent, File 2/15/23, 9:35 AM Town of Hopkinton, MA Mail - LFA Notice -- Mexicanal ilqPNEttqo LFA Notice -- Mexicanal Elaine Lazarus <elainel@hopkintonma.gov> 'Connors, Niall S' via Select Board Office <selectboard@hopkintonma.gov> Wed, Feb 15, 2023 at 9:08 AM Reply -To: "Connors, Niall S" <niall.s.connors@verizon.com> Dear Municipal Official: This is to notify you of an upcoming change to Fios® TV programming. On or after March 31, 2023, Mexicanal HD (ch. 1514) will be discontinued and no longer available on the Fios TV line-up. This is a provider -driven change. Verizon is notifying subscribers through the Fios TV Message Center. A sample customer notice is attached. We realize that our customers have other alternatives for entertainment and our goal is to offer the best choice and value in the industry. Verizon appreciates the opportunity to conduct business in your community. Should you or your staff have any questions, please contact me. Sincerely, verizon✓ Niall Connors Franchise Service Manager Fios Video Franchising Verizon Consumer Group 0 857 415 5123 M 781 715 7058 6 Bowdoin Sq. Floor 10 Boston, MA 02114 Mexicanal HD_Customer Notice.pdf 42K https://mail.google.com/mail/u/0/?i k=dbd2da471 e&view=pt&search=all&permmsgid=msg-f%3A1757906363193386900&simpl=msg-f%3A1757906363... 1/1 TOWN OF HOPKINTON OFFICE OF THE PLANNING BOARD 18 Main Street, Hopkinton MA 01748 (508) 497-9745 February 15, 2023 PUBLIC HEARING NOTICE The Planning Board of the Town of Hopkinton will hold a public hearing on Monday, March 6, 2023 at 7:00 P.M., on proposed amendments to the Zoning Bylaws and Zoning Map. The subject matter of the proposed changes is below. This hearing will be held via Zoom meeting service. For additional details please email John Gelcich, Principal Planner, at i elcich ,hopkintomna.gov, call the Department of Land Use, Planning & Permitting at 508-497-9745, or check the online meeting calendar and agenda for this meeting at www.hopkintonma. goy. This legal notice is also posted on the Massachusetts Newspaper Publishers Association (MNPA) website at http://masspublicnotices.orc. 1. Amend Article XVHI, Supplementary Regulations, Section 210-124, Off -Street Parking, by inserting a new section for "Electric Vehicle Parking" to support the shift to electric vehicles and create opportunities for electric vehicle charging on parking areas with 5 spaces or more. 2. Amend Article XX, Site Plan Review, to exempt solar panels, modules and associated equipment that is located on the rooftop of a building from the definition of "mechanical equipment". 3. Amend Article XI, Flexible Community Development Bylaw, to change the name of the bylaw to "Inclusionary Development Bylaw" and to increase the inventory of affordable housing by reducing the threshold for applicability of the provisions of this section including other modifications to streamline the inclusion of affordable housing units alongside market -rate housing units. 4. Amend the Zoning Map by changing the zoning district of the property at 0 West Elm Street and 2 West Elm Street from Residence B (RB) to Business (B). The parcels are shown on the Town of Hopkinton Assessors Map R23-46-0 and R23-45-0 respectively. 5. Amend the Zoning Map by changing the zoning district of the property located at 66 South Street, 68 South Street, 70 South Street, 28 Hayward Street, and 30 Hayward Street as shown on the Town of Hopkinton Assessors Map L37-97-0, L37-96-0, L37-95-0, L37-94-0, and L37-93-0 respectively, as well as Pine Grove Lane, a private 25 ft. wide way from Hayward Street north to 52 South Street shown on Assessors Map R23-65-0 and Hayward Street south to 74-76 South Street shown on Assessors Map R29 -23-A, from Residence Lake Front (RLF) to Rural Business (BR). Gary Trendel Chair 2/17/23, 10:59 AM Town of Hopkinton, MA Mail - Invalid Citizens Petition ilgPalgatgo Invalid Citizens Petition 'Keith Rowe' via Select Board Office <selectboard@hopkintonma.gov> Reply -To: Keith Rowe • To: "selectboard@hopkintonma.gov" <selectboard@hopkintonma.gov> Greetings, Elaine Lazarus <elainel@hopkintonma.gov> Fri, Feb 17, 2023 at 10:46 AM It has come to my attention that a group of residents at the new apartment complex on Lumber St. have gathered a citizens petition to stop outdoor shooting in the town. First, this is an invalid petition since Massachusetts law has already addressed this with General Law Part III, Title 1, Chapter 214. Any petition in the town to move forward with a vote would be against this law. Secondly, you don't go and rent an apartment near a gun range that has been there for a long time and then complain that you are bothered by the range. You knew about it, don't be coming to town trying to change it. Third, this impacts not only the HSA, but Woodville and Southboro clubs too as well as any private recreational or hunting done within town limits. The whole petition should be thrown out. Respectfully Keith Rowe 10 Fenton St. Hopkinton https://mail.google.com/mail/u/0/?i k=dbd2da471 e&view=pt&search=all&permmsgid=msg-f%3A1758093693185466485&simpl=msg-f%3A1758093693... 1/1 February 21, 2023 Dear Members of the Hopkinton Select Board: I am writing to you in support of the short term rental regulations by-law that has been placed on the warrant for May’s Town Meeting. When we moved to Hopkinton in 1998. I had no idea what to expect. My street (a cut through) became the best neighborhood a family could ask for. Neighbors met for gatherings, helped each other’s kids grow up, helped at the bus stops, cooked meals for each other when needed, assisted in rides to doctor’s appointments – the list goes on. One day, we drove away for vacation and left our loaded cooler in the driveway. My neighbor came and put everything back in my refrigerator for me without hesitation. I want the family, who moves into our house after us to have these similar experiences. Not to live next door to a motel 6. Please ask yourselves what type of neighbor that you would want! And if you think it isn’t going to happen, please look and listen to us. It happened. I know some expressed not wanting to “put in place a by-law based on one case”. I don’t understand this reasoning. We have a chance to act now. One case, can multiply into a thousand without any regulations. Are you saying it’s ok as long as it is not happening next to you? I hope not. Again, we fully support this by-law. Thank you for your time. Sarah and Ben Paharik 6 Pike Street 32_0R* 6could John Coutinho, Chair & Clerk Michael Riley, Vice Chair #23-013 TOWN OF HOPKINTON BOARD OF APPEALS Town Hall 18 Main Street - 3rd Floor Hopkinton, MA 01748 508-497-9745 www.hookintonma.cov NOTICE OF DECISION zba hopkintonma.gov February 23, 2023 Notice is hereby given that the Board of Appeals of the Town of Hopkinton, MA, on February 23, 2023, filed the following Decision in the Office of the Town Clerk: • A Decision granting Special Permits to Dan Polanek, 18 Metcalf Ave, Milford, MA, pursuant to Sections 210-128A and 210-119 of the Zoning Bylaw for additions to a nonconforming single family dwelling at 18 Kruger Road, Hopkinton, MA, that do not conform to the setback requirements. A copy of the Decision may be obtained at the Office of the Town Clerk or the Department of Land Use, Planning & Permitting at the Town Hall, 18 Main Street, Hopkinton, MA. Appeals of the Decision, if any, shall be made pursuant to M.G.L. Chapter 40A, Section 17, and shall be filed within twenty (20) days after the date of filing of the Decision with the Office of the Town Clerk. HOPKINTON BOARD OF APPEALS John Coutinho, Clerk 1 21 February 2023 Dear Members of the Hopkinton Select Board. I am writing to you in support of the short-term rental regulations by-law that has been placed on the warrant for May's Town Meeting. I believe that many factors in our economy and society will make short-term rentals in otherwise largely residential towns like Hopkinton become even more prevalent than they are today. This could include homeowners wishing to hold on to their property until the selling market improves, or owners needing to generate income from a residence when elderly or sick family members are forced to move out of their homes. To be clear to all, this by-law is not preventing the existence of short-term rentals; rather. it is establishing sensible guidelines for doing so in a manner that fits with the norms of the town and the neighborhood. Regardless of the reason for starting to offer a short-term rental in Hopkinton. homeowners should not be allowed to just throw a 'for rent" sign on a website and. unchecked, open the floodgates for unregulated short term rental of their property to begin. The regulations and stipulations found in this by-law protect neighbors and the town from the kinds of disruptions and potential harms that could come from changing the essence of how a property on a residential street or neighborhood is maintained and used. As a Pike Street resident, I've seen exactly what can go wrong when a short-term rental isn't regulated, and all of us on Pike Street would all be remiss if we didn't ardently pursue this new by-law so that our friends and others in town don't have to experience the drama and upheaval when this situation inevitably presents itself on their street. Thank you very much. Sincerely, Brent McKenzie 10 Pike Street 2/24/23, 12:14 PM Town of Hopkinton, MA Mail - Support of Outdoor Gun Shooting Ban ilqPNEttgo Support of Outdoor Gun Shooting Ban Elaine Lazarus <elainel@hopkintonma.gov> Thomas Robinson Mon, Feb 20, 2023 at 2:56 PM To: selectboard@hopkintonma.gov I am writing to you today in support of the bylaw that seeks to limit shooting at gun clubs to indoors so as to reduce noise pollution. Currently, I am sitting in my home office which is 1.25 linear miles from the Hopkinton Sportsmen's Association or a 6 minute drive. It's a beautiful day, but I wouldn't dare open the windows. The shooters have been active since about 9:45 this morning and will likely continue until sunset. I have a noise machine running close to my computer to muffle the gun noise (that still makes its way through my house with the windows closed) over my zoom calls. I've been told that the gun clubs will attempt to argue that the town does not have the legal authority to restrict outdoor shooting at local gun clubs, but there are several Massachusetts towns that have done just that. Town officials in Gloucester, Westminster, and Scituate have all limited outdoor shooting ranges over the last few years. I would even support a partial ban on outdoor shooting. Gun noise pollution is just about the same whether there is one active shooter or 20 active shooters. If we could set aside certain times during the day that the outdoor club could be utilized, perhaps we could find a "win -win" solution. Maybe we'd even lose the nickname the town has developed- "hop - gun -ton". Aside from the noise pollution, I ask you to please not forget the safety implications of the town's residents. The new Edgewood neighborhood is awfully close to the HSA and in a direct path of any stray bullets. We have had issues in the past with stray bullets originating from local clubs ("Stray bullet pierces teen's bedroom window"). Thank you, Tom Robinson 9 Blackthorne Cir. https://mail.google.com/mail/u/0/?i k=dbd2da471 e&view=pt&search=all&permmsgid=msg-f%3A1758381221400045151 &simpl=msg-f%3A1758381221... 1/1