HomeMy Public PortalAboutBrewster 2004 Report on the Examination of the Basic Financial Statements
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
TABLE OF CONTENTS
PAGE
Independent Auditor’s Report 1
Management’s Discussion and Analysis 2 – 8
Basic Financial Statements
Statement of Net Assets 9
Statement of Activities 10 – 11
Governmental Funds – Balance Sheet 12
Governmental Funds – Statement of Revenues, Expenditures, and
Changes in Fund Balances
13
Reconciliation of the Governmental Funds Balance Sheet Total
Fund Balances to the Statement of Net Assets
14
Reconciliation of the Statements of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
15
General Fund – Statement of Revenues, Expenditures, and
Changes in Fund Balance – Budget and Actual
16
Proprietary Funds – Statement of Net Assets 17
Proprietary Funds – Statement of Revenues, Expenses, and
Changes in Fund Net Assets
18
Proprietary Funds – Statement of Cash Flows 19
Fiduciary Funds – Statement of Fiduciary Net Assets 20
Fiduciary Funds – Statement of Changes in Fiduciary Net Assets 21
Notes to Basic Financial Statements 22 – 48
R. E. BROWN & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
25 CEMETERY STREET – P. O. BOX 230
Mendon, Massachusetts 01756
Phone: (508) 478-3941 Fax: (508) 478-1779
INDEPENDENT AUDITOR’S REPORT
To the Honorable Board of Selectmen
Town of Brewster, Massachusetts
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
Town of Brewster, Massachusetts, as of and for the year ended June 30, 2004, which collectively
comprise the Town’s basic financial statements as listed in the table of contents. These financial
statements are the responsibility of Town of Brewster, Massachusetts, management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Town of Brewster,
Massachusetts, as of June 30, 2004, and the respective changes in financial position and cash
flows, where applicable, thereof for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
The management’s discussion and analysis located on pages 2 through 8, is not a required part of
the basic financial statements but is supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the supplementary information. However, we did not audit the information
and express no opinion on it.
R. E. Brown & Company
July 1, 2005
Management’s Discussion and Analysis
As management of the Town of Brewster (the “Town”), we offer readers of these basic financial statements this
narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2004. This is the
second year our financial statements have been prepared under the Governmental Accounting Standards Board
Statement Number 34 – Basic Financial Statements and Management’s Discussion and Analysis for State and
Local Governments. We encourage readers to consider the information presented in this report.
Financial Highlights
• The assets of the Town exceeded its liabilities at the close of the fiscal year by $63.4 million (net assets). Of
this amount, $16.1 million is considered unrestricted (unrestricted net assets).
• The unrestricted net assets of the Town’s governmental activities are $11.8 million and may be used to meet
the government’s ongoing obligations to citizens and creditors. The unrestricted net assets of the Town’s
business-type activities are $4.3 million and may be used to meet the ongoing obligations of the Town’s water
and golf department business-type activities.
• The government’s total net assets increased by $976 thousand, or 1.56%, in fiscal 2004. Within this total, net
assets of governmental activities increased by $536 thousand, a 1.03% increase from fiscal 2003. Also, net
assets of business-type activities increased by $440 thousand or 4.3% from 2003.
• At June 30, 2004, the Town’s governmental funds had a combined ending fund balance of $9.2 million. The
combined governmental funds balance decreased by $1.7 million or -16% from the prior year’s ending fund
balance.
• The Town’s general fund reported a fund balance of $4.44 million at the end of fiscal 2004. The unreserved
fund balance for the general fund was $2.5 million or 9.9% of total general fund expenditures. There was a
$194 thousand decrease in total general fund balance for the year. A total of $540 thousand of the unreserved
fund balance was designated for funding the fiscal year 2005 budget.
• The total cost of all Town services for fiscal 2004 was $30.9 million, $26.8 million of which was for
governmental services, and $4.1 million of which was for business-type activities.
• The Town issued new general obligation bonds totaling $1,210,000, of which $485,000 was for road
betterments in the governmental activities, and $725,000 was for standpipe rehabilitation in the water
enterprise business-type activities. In addition, the Town also issued bonds totaling $185,254 for Title V
septic remediation through the Massachusetts Water Pollution Abatement Trust (MWPAT). Total principal
redemptions were $1.6 million, of which $953 thousand was in the governmental activities and $663 thousand
was in the business-type activities.
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Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements.
These basic financial statements are comprised of three components:
1. Government-wide Financial Statements
2. Fund Financial Statements
3. Notes to the Basic Financial Statements
Government-wide Financial Statements – The government-wide financial statements are designed to provide
readers with a broad overview of finances, in a manner similar to private-sector business.
The statement of net assets presents information on all assets and liabilities, with the difference between the two
reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether
the financial position is improving or deteriorating.
The statement of activities presents information showing how the government’s net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future periods, (e.g., uncollected taxes and earned
but unused vacation/sick leave).
Both of the government-wide financial statements distinguish functions that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees or charges (business-type activities). The governmental
activities include general government, public safety, education, public works, human services, culture and
recreation, employee benefits, debt service, and state and county assessments. The business-type activities
include water and golf department services.
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. Fund accounting is used to ensure and
demonstrate compliance with finance related legal requirements. All of the funds can be divided into three main
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental Funds – governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government’s near-term financing decisions. Both, the Governmental Funds Balance
Sheet and the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Town of Brewster adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
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Proprietary Funds – Enterprise funds are used to report the same functions presented as business-type activities
in the government-wide financial statements. The Town has two enterprise funds:
¾ Water Enterprise Fund accounts for the water activity of the Town.
¾ Golf Enterprise Fund accounts for the golf activity of the Town.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statement, as the resources of
those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is
much like that used for proprietary funds.
Private-purpose trust funds and agency funds are each reported and combined into a single, aggregate presentation
in the fiduciary fund financial statements under the captions “private purpose trust funds” and “agency funds”,
respectively.
Notes to the basic financial statements – The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Government-wide Financial Analysis:
The chart on the following page summarizes key financial components of the Town’s financial statements.
As noted earlier, assets exceed liabilities by $63,420,558 at the close of fiscal year 2004. The Town is able to
report positive balances in all categories of net assets, both for the government as a whole, and for its separate
governmental and business-type activities.
The largest component of the Town’s net assets are its investment in capital assets (e.g., land, buildings,
machinery, and equipment), less any related outstanding debt used to acquire those assets, is $45,042,696, or
71.02% of total net assets. The Town uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the investment in the Town’s capital assets is reported net
of its related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
The second largest component of the Town’s net assets are its unrestricted net assets totaling $16,190,421
(25.53%), which may be used to meet the government’s ongoing obligations to its citizens and creditors.
The Town reduced its total liabilities by $329,796 over fiscal 2003, while total net assets increased by $976,470,
or 1.56%. Net assets of governmental activities increased by $536,494, a 1.03% increase from fiscal 2003. Net
assets of business-type activities increased by $439,976 or 4.3% from 2003. There was an increase of $231,561 in
net assets reported in connection with the water business-type activities, and an increase of $208,415 in net assets
in connection with the golf department business-type activity, respectively.
An additional portion of the net assets totaling $2,187,441 (3.45%) represents resources that are subject to
external restrictions on how they may be used.
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Increase Increase Increase
FY 2004 FY 2003 (Decrease)FY 2004 FY 2003 (Decrease)FY 2004 FY 2003 (Decrease)
Assets:
Current Assets 12,578,181$ 14,816,108$ (2,237,927)$ 4,089,020$ 3,695,557$ 393,463$ 16,667,201$ 18,511,665$ (1,844,464)$
Noncurrent Assets (excluding capital)7,099,950 7,125,648 (25,698) 63,315 10,130 53,185 7,163,265 7,135,778 27,487
Capital Assets 45,817,505 43,380,501 2,437,004 19,236,440 19,159,783 76,657 65,053,945 62,540,284 2,513,661
Total Assets 65,495,636 65,322,257 173,379 23,388,775 22,865,470 523,305 88,884,411 88,187,727 696,684
Liabilities:
Current Liabilities (excluding debt)1,328,744 1,629,004 (300,260) 130,753 229,632 (98,879) 1,459,497 1,858,636 (399,139)
Noncurrent Liabilities (excluding debt)1,300,000 1,350,000 (50,000) - - - 1,300,000 1,350,000 (50,000)
Current Debt 1,150,900 1,053,108 97,792 765,000 662,792 102,208 1,915,900 1,715,900 200,000
Noncurrent Debt 8,968,456 9,079,103 (110,647) 11,820,000 11,790,000 30,000 20,788,456 20,869,103 (80,647)
Total Liabilities 12,748,100 13,111,215 (363,115) 12,715,753 12,682,424 33,329 25,463,853 25,793,639 (329,786)
Net Assets:
Capital Assets Net of Related Debt 38,677,623 36,763,556 1,914,067 6,365,073 6,706,991 (341,918) 45,042,696 43,470,547 1,572,149
Restricted 2,187,441 2,943,995 (756,554) - - - 2,187,441 2,943,995 (756,554)
Unrestricted 11,882,472 12,503,491 (621,019) 4,307,949 3,526,055 781,894 16,190,421 16,029,546 160,875
Total Net Assets 52,747,536$ 52,211,042$ 536,494$ 10,673,022$ 10,233,046$ 439,976$ 63,420,558$ 62,444,088$ 976,470$
Revenues
Program Revenues:
Charges for Services 1,643,218$ 1,638,824$ 4,394$ 5,348,506$ 5,524,274$ (175,768)$ 6,991,724$ 7,163,098$ (171,374)$
Operating Grants and Contributions 2,676,835 2,843,060 (166,225) 73,283 22,685 50,598 2,750,118 2,865,745 (115,627)
Capital Grants and Contributions 1,057,258 1,074,910 (17,652) - 15,400 (15,400) 1,057,258 1,090,310 (33,052)
General Revenues:
Real Estate and Personal Property Taxes 18,625,159 17,477,607 1,147,552 - - - 18,625,159 17,477,607 1,147,552
Tax Liens 81,146 98,492 (17,346) - - - 81,146 98,492.00 (17,346)
Motor Vehicle and Other Excise Taxes 1,158,136 1,239,263 (81,127) - - - 1,158,136 1,239,263 (81,127)
Hotel/Motel Tax 495,506 534,273 (38,767) - - - 495,506 534,273 (38,767)
Penalties and Interest on Taxes 107,134 125,015 (17,881) - - - 107,134 125,015 (17,881)
Payments in Lieu of Taxes 6,841 6,587 254 6,841 6,587 254
Nonrestricted Grants and Contributions 488,969 560,823 (71,854) - - - 488,969 560,823 (71,854)
Unrestricted Investment Income 157,465 180,423 (22,958) - - - 157,465 180,423 (22,958)
Other Revenues 9,642 62,025 (52,383) - - - 9,642 62,025 (52,383)
Total Revenues 26,507,309 25,841,302 666,007 5,421,789 5,562,359 (140,570) 31,929,098 31,403,661 525,437
Expenses:
General Government 2,306,125 2,203,015 103,110 - - - 2,306,125 2,203,015 103,110
Public Safety 3,565,708 3,556,433 9,275 - - - 3,565,708 3,556,433 9,275
Education 13,813,786 12,692,529 1,121,257 - - - 13,813,786 12,692,529 1,121,257
Public Works 2,375,538 1,820,173 555,365 - - - 2,375,538 1,820,173 555,365
Human Services 507,190 443,695 63,495 - - - 507,190 443,695 63,495
Culture and Recreation 671,451 711,918 (40,467) - - - 671,451 711,918 (40,467)
Employee Benefits 2,676,506 2,296,289 380,217 - - - 2,676,506 2,296,289 380,217
State and County Assessments 432,076 381,006 51,070 - - - 432,076 381,006 51,070
Interest 507,471 540,420 (32,949) - - - 507,471 540,420 (32,949)
Golf - - - 2,754,417 2,824,694 (70,277) 2,754,417 2,824,694 (70,277)
Water - - - 1,342,360 1,236,225 106,135 1,342,360 1,236,225 106,135
Total Expenses 26,855,851 24,645,478 2,210,373 4,096,777 4,060,919 35,858 30,952,628 28,706,397 2,246,231
Transfers 885,036 825,096 59,940 (885,036) (825,096) (59,940) - - -
Change in Net Assets 536,494 2,020,920 (1,484,426) 439,976 676,344 (236,368) 976,470 2,697,264 (1,720,794)
Net Assets - Beginning 52,211,042 50,190,122 2,020,920 10,233,046 9,556,702 676,344 62,444,088 59,746,824 2,697,264
Net Assets - Ending 52,747,536$ 52,211,042$ 536,494$ 10,673,022$ 10,233,046$ 439,976$ 63,420,558$ 62,444,088$ 976,470$
TOWN of BREWSTER - FINANCIAL HIGHLIGHTS
Governmental
Activities
Business-type
Activities
Total
Primary Government
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Financial analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds – The focus of governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing financing requirements. In
particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year, governmental funds reported combined ending fund balances of
$9,240,809, a $1.7 million decrease from the prior year’s ending fund balance.
The general fund is the primary operating fund. At the end of the current fiscal year, unreserved fund balance of
the general fund was $2,532,816, while total fund balance stood at $4,443,894. As a measure of the general
fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund
expenditures. Unreserved fund balance represents 9.8% of total general fund expenditures, while total fund
balance represents 17.3% of that same amount.
The stabilization fund has accumulated a fund balance of $1,705,914, which represents 6.6% of general fund
expenditures. These funds can be used for general or capital purposes upon Town Meeting approval.
General Fund Budget Highlights
During the fiscal year the operating budget was amended by $868,509 at two Special Town Meetings to fund
wage settlements, land acquisition, capital equipment purchases for education, public safety and public works,
and road maintenance and drainage projects. The Town budgeted $23.3 million in revenues and $26.9 in
expenditures, drawing on transfers and prior year’s surplus to finance the difference. At year end, $445,452 of
unexpended appropriation balances was closed out to undesignated fund balance.
Capital Asset and Debt Administration
Capital Assets - In conjunction with the operating budget, the Town annually prepares capital budgets for the
upcoming fiscal year.
The Town’s investment in capital assets for governmental and business type activities, as summarized below, as
of June 30, 2004, amounts to $65,053,945, net of accumulated depreciation. The investment in capital assets
includes land, buildings, machinery and equipment, vehicles, and infrastructure.
The governmental activities capital assets (net of accumulated depreciation) were increased by $2,437,004 during
the current fiscal year while the business-type activities capital assets (net of accumulated depreciation) were
increased by $76,657. Total depreciation was $1.6 million, resulting in a total government-wide increase to
capital assets (net of accumulated depreciation) of $2,513,661.
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Increase Increase Increase
FY 2004 FY 2003 (Decrease)FY 2004 FY 2003 (Decrease)FY 2004 FY 2003 (Decrease)
Land 28,037,512$ 26,515,312$ 1,522,200$ 2,874,212$ 2,874,212$ -$ 30,911,724$ 29,389,524$ 1,522,200
Buildings 14,137,579 12,714,568 1,423,011 2,125,933 2,187,513 (61,580) 16,263,512 14,902,081 1,361,431
Capital Improvements (other than buildings)22,944 26,425 (3,481) - - - 22,944 26,425 (3,481)
Machinery , Equipment, and Vehicles 1,447,804 1,472,800 (24,996) 784,614 878,274 (93,660) 2,232,418 2,351,074 (118,656)
Infrastructure 2,171,666 2,229,509 (57,843) 13,451,681 9,672,845 3,778,836 15,623,347 11,902,354 3,720,993
Construction in Progress - 421,887 (421,887) - 3,546,939 (3,546,939) - 3,968,826 (3,968,826)
Total Capital Assets 45,817,505$ 43,380,501$ 2,437,004$ 19,236,440$ 19,159,783$ 76,657$ 65,053,945$ 62,540,284$ 2,513,661$
Activities Activities Primary Government
Capital Assets
(Net of Depreciation)
Governmental Business-type Total
Long Term Debt - The Town’s debt burden is reasonable in relation to other communities its size. Outstanding
long-term debt, as of June 30, 2004, totaled $22,264,356. Within this total, business-type activities have debt of
$12,515,000 that is fully supported by their respective program revenues, and governmental activities debt is
$9,749,356. Total debt consists of the following:
Outstanding Outstanding Increase
Governmental Activities June 30, 2004 June 30, 2003 (Decrease)
Punkhorn Land -$ 23,632$ (23,632)$
Land Acquisition - 17,192 (17,192)
School Construction - 61,488 (61,488)
Land Acquisition - 119,896 (119,896)
School Construction 5,075,000 5,500,000 (425,000)
Library Construction 600,000 650,000 (50,000)
MWPAT Title V - Sewer 176,602 187,003 (10,401)
Road Betterments - Blueberry Rd.77,500 93,000 (15,500)
Road Betterments - Beach Plum Rd.90,000 105,000 (15,000)
Police Station 2,720,000 2,890,000 (170,000)
Road Betterments - Highlands Rd.85,000 100,000 (15,000)
Road Betterments - Millstone Rd.255,000 285,000 (30,000)
Road Betterments - Commons Way Rd.205,000 - 205,000
Road Betterments - Meetinghouse Rd.280,000 - 280,000
MWPAT #97-1156 Title V - Sewer 185,254 - 185,254
Total Governmental Activities 9,749,356$ 10,032,211$ (282,855)$
Outstanding Outstanding Increase
Business-type Activities June 30, 2004 June 30, 2003 (Decrease)
Golf Course -$ 46,424$ (46,424)$
Water Well - 11,368 (11,368)
Golf Course 8,615,000 8,955,000 (340,000)
Water Mains 2,430,000 2,585,000 (155,000)
Telemetry System 120,000 145,000 (25,000)
Water Betterments - Sears Rd.15,000 20,000 (5,000)
Water Betterments - Williams Drive 35,000 40,000 (5,000)
Standpipe #2 575,000 650,000 (75,000)
Standpipe Rehabilitation 725,000 - 725,000
Total Business-type Activities 12,515,000$ 12,452,792$ 62,208$
Long Term Debt at Year End
Please refer to Notes 5 and 8 for further discussion of the major capital and debt activity.
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Economic Factors and Next Year’s Budgets & Rates
• One of the financial factors was the estimated level funding of local aid.
• The state did provide municipal relief aid in the sum of $44,628.
• Increasing health care and pension costs rose at a double digit rate for the 5th year, absorbing a portion of
the new growth revenues.
• Brewster’s share of the regional school system rose to approximately 50%. This equates to $143
thousand in new costs.
• The fiscal 2005 tax rate was set at $6.06, a $1.23 decrease over fiscal 2004, which resulted in
approximately the same level of services without the need for a general override under proposition 2 1/2.
• The Board of Selectmen voted during their classification hearing to maintain the same tax rate for all
classes of property.
• During fiscal 2005, the Town authorized borrowing for open space land acquisition and the irrigation
project at the town’s 36 hole golf course
• Town meeting authorized the adoption of fire dispatch services at the regional level in Barnstable County.
• Votes at town meetings transferred $600,000 into the town’s stabilization fund in FY 05.
• The town funded $600,000 for ongoing renovations at one of the two elementary schools without
impacting the tax rate.
Request for Information
This financial report is designed to provide a general overview of the Town of Brewster’s finances for all those
with an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Finance Director, 2198 Main
Street, Brewster, MA 02631.
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 10,739,671$ 4,026,489$ 14,766,160$
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 179,309 - 179,309
TAX LIENS 409,763 - 409,763
MOTOR VEHICLE EXCISE TAXES 51,766 - 51,766
USER FEES - 55,294 55,294
DEPARTMENTAL AND OTHER 350,642 - 350,642
INTERGOVERNMENTAL 760,118 - 760,118
SPECIAL ASSESSMENTS 86,912 7,237 94,149
NONCURRENT:
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
INTERGOVERNMENTAL 6,258,390 - 6,258,390
SPECIAL ASSESSMENTS 841,560 63,315 904,875
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 45,817,505 19,236,440 65,053,945
TOTAL ASSETS 65,495,636 23,388,775 88,884,411
LIABILITIES
CURRENT:
WARRANTS PAYABLE 1,069,852 31,801 1,101,653
OTHER LIABILITIES 106,739 13,626 120,365
ACCRUED INTEREST 102,153 85,326 187,479
BONDS AND NOTES PAYABLE 1,150,900 765,000 1,915,900
LANDFILL POSTCLOSURE CARE COSTS 50,000 - 50,000
NONCURRENT:
BONDS AND NOTES PAYABLE 8,968,456 11,820,000 20,788,456
LANDFILL POSTCLOSURE CARE COSTS 1,300,000 - 1,300,000
TOTAL LIABILITIES 12,748,100 12,715,753 25,463,853
NET ASSETS
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 38,677,623 6,365,073 45,042,696
RESTRICTED FOR:
STREETS 94,222 - 94,222
PERMANENT FUNDS:
EXPENDABLE 80,486 - 80,486
NONEXPENDABLE 91,013 - 91,013
OTHER PURPOSES 1,921,720 - 1,921,720
UNRESTRICTED 11,882,472 4,307,949 16,190,421
TOTAL NET ASSETS 52,747,536$ 10,673,022$ 63,420,558$
See accompanying notes to the basic financial statements
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF NET ASSETS
JUNE 30, 2004
PRIMARY GOVERNMENT
- 9 -
OPERATING CAPITALCHARGES FORGRANTS ANDGRANTS ANDNET (EXPENSE)FUNCTIONS/PROGRAMSEXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUEPRIMARY GOVERNMENT:GOVERNMENTAL ACTIVITIES:GENERAL GOVERNMENT 2,306,125$ 215,089$ 8,830$ 758,355$ (1,323,851)$ PUBLIC SAFETY 3,565,708 200,724 807,436 - (2,557,548) EDUCATION 13,813,786 142,526 966,067 (4,665) (12,709,858) PUBLIC WORKS 2,375,538 776,832 466,584 294,115 (838,007) HUMAN SERVICES 507,190 106,210 84,002 9,453 (307,525) CULTURE & RECREATION 671,451 201,837 96,007 - (373,607) EMPLOYEE BENEFITS 2,676,506 - 247,909 - (2,428,597) STATE & COUNTY ASSESSMENTS 432,076 - - - (432,076) INTEREST 507,471 - - - (507,471) TOTAL GOVERNMENTAL ACTIVITIES 26,855,851 1,643,218 2,676,835 1,057,258 (21,478,540) BUSINESS-TYPE ACTIVITIES:GOLF 2,754,417 3,672,690 4,032 - 922,305 WATER 1,342,360 1,675,816 69,251 - 402,707 TOTAL BUSINESS-TYPE ACTIVITIES 4,096,777 5,348,506 73,283 - 1,325,012 TOTAL PRIMARY GOVERNMENT 30,952,628$ 6,991,724$ 2,750,118$ 1,057,258$ (20,153,528)$ (continued)See accompanying notes to the basic financial statements TOWN OF BREWSTER, MASSACHUSETTSSTATEMENT OF ACTIVITIESFISCAL YEAR ENDED JUNE 30, 2004PROGRAM REVENUES- 10 -
GOVERNMENTAL BUSINESS-TYPEACTIVITIESACTIVITIES TOTALCHANGES IN NET ASSETS:NET (EXPENSE) REVENUE FROM PREVIOUS PAGE (21,478,540)$ 1,325,012$ (20,153,528)$ GENERAL REVENUES:REAL ESTATE AND PERSONAL PROPERTY TAXES,NET OF TAX REFUNDS PAYABLE 18,625,159 - 18,625,159 TAX LIENS 81,146 - 81,146 MOTOR VEHICLE AND OTHER EXCISE TAXES 1,158,136 - 1,158,136 HOTEL/MOTEL TAX 495,506 - 495,506 PENALTIES AND INTEREST ON TAXES 107,134 - 107,134 PAYMENTS IN LIEU OF TAXES 6,841 - 6,841 GRANTS AND CONTRIBUTIONS NOT RESTRICTEDTO SPECIFIC PROGRAMS 488,969 - 488,969 UNRESTRICTED INVESTMENT INCOME 157,465 - 157,465 MISCELLANEOUS 9,642 - 9,642 TRANSFERS, NET 885,036 (885,036) - TOTAL GENERAL REVENUES AND TRANSFERS 22,015,034 (885,036) 21,129,998 CHANGE IN NET ASSETS 536,494 439,976 976,470 NET ASSETS:BEGINNING OF YEAR52,211,042 10,233,046 62,444,088 END OF YEAR52,747,536$ 10,673,022$ 63,420,558$ (concluded)See accompanying notes to the basic financial statements TOWN OF BREWSTER, MASSACHUSETTSSTATEMENT OF ACTIVITIESFISCAL YEAR ENDED JUNE 30, 2004PRIMARY GOVERNMENT- 11 -
TOWN OF BREWSTER, MASSACHUSETTSGOVERNMENTAL FUNDSBALANCE SHEETJUNE 30, 2004 STONYNONMAJORTOTALBROOKSTABILIZATION GOVERNMENTALGOVERNMENTALASSETSGENERALSCHOOL FUND FUNDS FUNDSCASH AND SHORT-TERM INVESTMENTS 5,446,121$ 808,462$ 1,705,914$ 2,779,174$ 10,739,671$ RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:REAL ESTATE AND PERSONAL PROPERTY TAXES 179,309 - - - 179,309 TAX LIENS 409,763 - - - 409,763 MOTOR VEHICLE EXCISE TAXES 51,766 - - - 51,766 DEPARTMENTAL AND OTHER 7,500 - - 343,142 350,642 INTERGOVERNMENTAL 6,919,056 - - 99,452 7,018,508 SPECIAL ASSESSMENTS - - - 928,472 928,472 TOTAL ASSETS13,013,515$ 808,462$ 1,705,914$ 4,150,240$ 19,678,131$ LIABILITIES AND FUND BALANCESLIABILITIES:WARRANTS PAYABLE 1,036,266$ -$ -$ 33,586$ 1,069,852$ OTHER LIABILITIES 8,460 - - 98,279 106,739 DEFERRED REVENUES 7,524,895 - - 1,365,836 8,890,731 NOTES PAYABLE - - - 370,000 370,000 TOTAL LIABILITIES8,569,621 - - 1,867,701 10,437,322 FUND BALANCES:RESERVED FOR:ENCUMBRANCES AND CONTINUING APPROPRIATIONS 1,371,145 - - - 1,371,145 PERPETUAL PERMANENT FUNDS - - - 91,013 91,013 UNRESERVEDDESIGNATED FOR SUBSEQUENT YEARS' EXPENDITURES 539,933 - - - 539,933 UNDESIGNATED REPORTED IN:GENERAL FUND 2,532,816 - - - 2,532,816 SPECIAL REVENUE FUNDS - - 1,705,914 2,015,942 3,721,856 CAPITAL PROJECTS FUNDS - 808,462 - 95,098 903,560 PERMANENT FUNDS - - - 80,486 80,486 TOTAL FUND BALANCES4,443,894 808,462 1,705,914 2,282,539 9,240,809 TOTAL LIABILITIES AND FUND BALANCES13,013,515$ 808,462$ 1,705,914$ 4,150,240$ 19,678,131$ See accompanying notes to the basic financial statements - 12 -
STONY NONMAJOR TOTAL
BROOK STABILIZATION GOVERNMENTAL GOVERNMENTAL
GENERAL SCHOOL FUND FUNDS FUNDS
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 18,690,931$ -$ -$ -$ 18,690,931$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,176,297 - - - 1,176,297
INTERGOVERNMENTAL 2,309,400 - - 788,010 3,097,410
PAYMENTS IN LIEU OF TAXES 6,841 - - - 6,841
PENALTIES & INTEREST 89,457 - - - 89,457
FINES & FORFEITS 30,652 - - - 30,652
CHARGES FOR SERVICES - - - 961,496 961,496
HOTEL/MOTEL TAX 495,506 - - - 495,506
INVESTMENT INCOME 98,008 - 17,148 67,102 182,258
CONTRIBUTIONS AND DONATIONS - - - 70,693 70,693
DEPARTMENTAL AND OTHER 1,495,656 - - 686,779 2,182,435
TOTAL REVENUES 24,392,748 - 17,148 2,574,080 26,983,976
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 1,870,228 - - 1,526,994 3,397,222
PUBLIC SAFETY 3,371,491 - - 136,656 3,508,147
EDUCATION 13,551,961 1,452,172 - 203,289 15,207,422
PUBLIC WORKS 1,371,918 - - 1,062,340 2,434,258
HUMAN SERVICES 383,550 - - 123,640 507,190
CULTURE & RECREATION 529,012 - - 143,551 672,563
EMPLOYEE BENEFITS 2,676,506 - - - 2,676,506
STATE & COUNTY ASSESSMENTS 432,076 - - - 432,076
DEBT SERVICE 1,451,645 - - 8,583 1,460,228
TOTAL EXPENDITURES 25,638,387 1,452,172 - 3,205,053 30,295,612
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (1,245,639) (1,452,172) 17,148 (630,973) (3,311,636)
OTHER FINANCING SOURCES (USES)
PROCEEDS FROM BONDS AND NOTES - - - 670,254 670,254
OPERATING TRANSFERS IN 1,851,903 800,000 - 264 2,652,167
OPERATING TRANSFERS OUT (800,264) - - (966,867) (1,767,131)
TOTAL OTHER FINANCING SOURCES (USES) 1,051,639 800,000 - (296,349) 1,555,290
NET CHANGE IN FUND BALANCES (194,000) (652,172) 17,148 (927,322) (1,756,346)
FUND BALANCES AT BEGINNING OF YEAR 4,637,894 1,460,634 1,688,766 3,209,861 10,997,155
FUND BALANCES AT END OF YEAR 4,443,894$ 808,462$ 1,705,914$ 2,282,539$ 9,240,809$
See accompanying notes to the basic financial statements
TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2004
- 13 -
TOTAL GOVERNMENTAL FUND BALANCES 9,240,809$
CAPITAL ASSETS (NET) USED IN GOVERNMENTAL ACTIVITIES ARE NOT FINANCIAL RESOURCES
AND, THEREFORE, ARE NOT REPORTED IN THE FUNDS 45,817,505
ACCOUNTS RECEIVABLE ARE NOT AVAILABLE TO PAY FOR CURRENT-PERIOD
EXPENDITURES AND, THEREFORE, ARE DEFERRED IN THE FUNDS 8,890,731
IN THE STATEMENT OF ACTIVITIES, INTEREST IS ACCRUED ON OUTSTANDING LONG-TERM DEBT,
WHEREAS IN GOVERNMENTAL FUNDS INTEREST IS NOT REPORTED UNTIL DUE (102,153)
LONG-TERM LIABILITIES ARE NOT DUE AND PAYABLE IN THE CURRENT PERIOD AND, THEREFORE,
ARE NOT REPORTED IN THE GOVERNMENTAL FUNDS
BONDS AND NOTES PAYABLE (9,749,356)
LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS (1,350,000)
NET EFFECT OF REPORTING LONG-TERM LIABILITIES (11,099,356)
NET ASSETS OF GOVERNMENTAL ACTIVITIES 52,747,536$
See accompanying notes to the basic financial statements
TOWN OF BREWSTER, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
FISCAL YEAR ENDED JUNE 30, 2004
TOTAL FUND BALANCES TO THE STATEMENT OF NET ASSETS
- 14 -
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUND (1,756,346)$
GOVERNMENTAL FUNDS REPORT CAPITAL OUTLAYS AS EXPENDITURES. HOWEVER, IN THE
STATEMENT OF ACTIVITIES THE COST OF THOSE ASSETS IS ALLOCATED OVER THEIR
ESTIMATED USEFUL LIVES AND REPORTED AS DEPRECIATION EXPENSE.
CAPITAL OUTLAY 3,427,995
DEPRECIATION EXPENSE (990,991)
NET EFFECT OF REPORTING CAPITAL ASSETS 2,437,004
REVENUES IN THE STATEMENT OF ACTIVITIES THAT DO NOT PROVIDE CURRENT FINANCIAL
RESOURCES ARE FULLY DEFERRED IN THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES. THEREFORE, THE RECOGNITION OF REVENUE FOR VARIOUS
TYPES OF ACCOUNTS RECEIVABLE (I.E. REAL ESTATE AND PERSONAL PROPERTY, MOTOR
VEHICLE EXCISE, ETC.) DIFFER BETWEEN THE TWO STATEMENTS. THIS AMOUNT REPRESENTS
THE NET CHANGE IN DEFERRED REVENUE (476,667)
THE ISSUANCE OF LONG-TERM DEBT (E.G., BONDS) PROVIDES CURRENT FINANCIAL
RESOURCES TO GOVERNMENTAL FUNDS, WHILE THE REPAYMENT OF THE PRINCIPAL OF LONG-
TERM DEBT CONSUMES THE FINANCIAL RESOURCES OF GOVERNMENTAL FUNDS. NEITHER
TRANSACTION, HOWEVER, HAS ANY EFFECT ON NET ASSETS. ALSO, GOVERNMENTAL FUNDS
REPORT THE EFFECT OF ISSUANCE COSTS, PREMIUMS, DISCOUNTS, AND SIMILAR ITEMS WHEN
DEBT IS FIRST ISSUED, WHEREAS THESE AMOUNTS ARE DEFERRED AND AMORTIZED IN THE
STATEMENT OF ACTIVITIES.
PROCEEDS FROM BONDS AND NOTES (670,254)
DEBT SERVICE PRINCIPAL PAYMENTS 953,109
NET EFFECT OF REPORTING LONG-TEM DEBT 282,855
SOME EXPENSES REPORTED IN THE STATEMENT OF ACTIVITIES DO NOT REQUIRE THE USE OF
CURRENT FINANCIAL RESOURCES AND, THEREFORE, ARE NOT REPORTED AS EXPENDITURES
IN THE GOVERNMENTAL FUNDS.
NET CHANGE IN LANDFILL CLOSURE AND POSTCLOSURE CARE ACCRUAL 50,000
NET CHANGE IN ACCRUED INTEREST ON LONG-TERM DEBT (352)
NET EFFECT OF RECORDING LONG-TERM LIABILITIES 49,648
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES 536,494$
See accompanying notes to the basic financial statements
TOWN OF BREWSTER, MASSACHUSETTS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2004
- 15 -
ACTUAL
ORIGINAL FINAL BUDGETARY VARIANCE
BUDGET BUDGET AMOUNTS OVER(UNDER)
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 18,497,474$ 18,497,474$ 18,690,931$ 193,457$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,125,000 1,125,000 1,176,297 51,297
INTERGOVERNMENTAL 2,009,685 2,009,685 2,052,038 42,353
PAYMENTS IN LIEU OF TAXES 6,500 6,500 6,841 341
PENALTIES & INTEREST 55,000 55,000 89,457 34,457
FINES & FORFEITS 8,000 8,000 30,652 22,652
HOTEL/MOTEL TAX 420,000 420,000 495,506 75,506
INVESTMENT INCOME 50,000 50,000 98,008 48,008
DEPARTMENTAL AND OTHER 1,120,000 1,120,000 1,495,655 375,655
TOTAL REVENUES 23,291,659 23,291,659 24,135,385 843,726
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 2,044,664 2,304,824 2,187,129 117,695
PUBLIC SAFETY 3,682,720 3,999,771 3,960,334 39,437
EDUCATION 13,605,462 13,690,594 13,645,101 45,493
PUBLIC WORKS 1,565,275 1,706,380 1,615,973 90,407
HUMAN SERVICES 387,854 400,524 383,915 16,609
CULTURE & RECREATION 542,461 559,052 538,786 20,266
EMPLOYEE BENEFITS 2,396,843 2,432,643 2,428,597 4,046
STATE & COUNTY ASSESSMENTS 376,095 376,095 432,076 (55,981)
DEBT SERVICE 1,467,839 1,467,839 1,464,422 3,417
TOTAL EXPENDITURES 26,069,213 26,937,722 26,656,333 281,389
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (2,777,554) (3,646,063) (2,520,948) 1,125,115
OTHER FINANCING SOURCES (USES):
OPERATING TRANSFERS IN 1,404,557 1,627,526 1,851,903 224,377
OPERATING TRANSFERS OUT - (800,000) (800,264) (264)
TOTAL OTHER FINANCING SOURCES (USES) 1,404,557 827,526 1,051,639 224,113
NET CHANGE IN FUND BALANCE (1,372,997) (2,818,537) (1,469,309) 1,349,228
BUDGETARY FUND BALANCE, BEGINNING OF YEAR 4,637,894 4,637,894 4,637,894 -
BUDGETARY FUND BALANCE, END OF YEAR 3,264,897$ 1,819,357$ 3,168,585$ 1,349,228$
See accompanying notes to the basic financial statements
BUDGETED AMOUNTS
TOWN OF BREWSTER, MASSACHUSETTS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
- 16 -
ASSETS GOLF WATER TOTAL
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 913,957$ 3,112,532$ 4,026,489$
USER FEES, NET OF ALLOWANCE FOR UNCOLLECTIBLES: - 55,294 55,294
SPECIAL ASSESSMENTS - 7,237 7,237
TOTAL CURRENT ASSETS 913,957 3,175,063 4,089,020
NONCURRENT:
SPECIAL ASSESSMENTS - 63,315 63,315
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 10,534,818 8,701,622 19,236,440
TOTAL NONCURRENT ASSETS 10,534,818 8,764,937 19,299,755
TOTAL ASSETS 11,448,775 11,940,000 23,388,775
LIABILITIES
CURRENT:
WARRANTS PAYABLE - 31,801 31,801
OTHER LIABILITIES - 13,626 13,626
ACCRUED INTEREST 16,944 68,382 85,326
BONDS AND NOTES PAYABLE 355,000 410,000 765,000
TOTAL CURRENT LIABILITIES 371,944 523,809 895,753
NONCURRENT:
BONDS AND NOTES PAYABLE 8,260,000 3,560,000 11,820,000
TOTAL LIABILITIES 8,631,944 4,083,809 12,715,753
NET ASSETS
INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 1,919,818 4,445,255 6,365,073
UNRESTRICTED 897,013 3,410,936 4,307,949
TOTAL NET ASSETS 2,816,831$ 7,856,191$ 10,673,022$
See accompanying notes to the basic financial statements
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
JUNE 30, 2004
- 17 -
GOLF WATER TOTAL
OPERATING REVENUES:
CHARGES FOR SERVICES 3,672,690$ 1,675,816$ 5,348,506$
DEPARTMENTAL AND OTHER 4,032 68,242 72,274
TOTAL OPERATING REVENUES 3,676,722 1,744,058 5,420,780
OPERATING EXPENSES:
GENERAL SERVICES 1,991,190 868,370 2,859,560
DEPRECIATION 340,885 277,948 618,833
TOTAL OPERATING EXPENSES 2,332,075 1,146,318 3,478,393
OPERATING INCOME (LOSS) 1,344,647 597,740 1,942,387
NON-OPERATING REVENUES (EXPENSES):
INTEREST INCOME - 1,009 1,009
INTEREST EXPENSE (422,342) (196,042) (618,384)
TOTAL NON-OPERATING REVENUES (EXPENSES), NET (422,342) (195,033) (617,375)
INCOME (LOSS) BEFORE OPERATING TRANSFERS 922,305 402,707 1,325,012
OPERATING TRANSFERS:
OPERATING TRANSFERS OUT (713,890) (171,146) (885,036)
CHANGE IN NET ASSETS 208,415 231,561 439,976
NET ASSETS AT BEGINNING OF YEAR 2,608,416 7,624,630 10,233,046
NET ASSETS AT END OF YEAR 2,816,831$ 7,856,191$ 10,673,022$
See accompanying notes to the basic financial statements
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUND
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
FISCAl YEAR ENDED JUNE 30, 2004
PROPRIETARY FUNDS
- 18 -
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2004
GOLF WATER TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES:
RECEIPTS FROM CUSTOMERS AND USERS 3,676,722$ 1,792,116$ 5,468,838$
PAYMENTS TO SUPPLIERS (1,007,329) (419,115) (1,426,444)
PAYMENTS TO EMPLOYEES (985,706) (502,352) (1,488,058)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,683,687 870,649 2,554,336
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING TRANSFERS OUT (713,890) (171,146) (885,036)
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES (713,890) (171,146) (885,036)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM THE ISSUANCE OF BONDS AND NOTES - 795,000 795,000
PRINCIPAL PAYMENTS ON BONDS AND NOTES (386,424) (276,368) (662,792)
ACQUISITION AND CONSTRUCTION OF CAPITAL ASSETS (24,139) (671,350) (695,489)
INTEREST EXPENSE (423,073) (189,247) (612,320)
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (833,636) (341,965) (1,175,601)
CASH FLOWS FROM INVESTING ACTIVITIES:
INTEREST RECEIVED - 1,009 1,009
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES: - 1,009 1,009
NET INCREASE (DECREASE) IN CASH AND SHORT TERM INVESTMENTS 136,161 358,547 494,708
CASH AND SHORT TERM INVESTMENTS - BEGINNING OF YEAR 777,796 2,753,985 3,531,781
CASH AND SHORT TERM INVESTMENTS- END OF YEAR 913,957$ 3,112,532$ 4,026,489$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
OPERATING INCOME (LOSS)1,344,647$ 597,740$ 1,942,387$
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 340,885 277,948 618,833
(INCREASE) DECREASE IN ACCOUNTS RECEIVABLE - 48,059 48,059
INCREASE (DECREASE) IN ACCOUNTS PAYABLE (1,845) (53,471) (55,316)
INCREASE (DECREASE) IN OTHER LIABILITIES - 373 373
TOTAL ADJUSTMENTS 339,040 272,909 611,949
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,683,687$ 870,649$ 2,554,336$
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUND
See accompanying notes to the basic financial statements
- 19 -
TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
JUNE 30, 2004
PRIVATE
PURPOSE AGENCY
TRUST FUNDS FUNDS
ASSETS
CASH AND SHORT-TERM INVESTMENTS 62,292$ 37,893$
DEPARTMENTAL - 3,468
TOTAL ASSETS 62,292 41,361
LIABILITIES
WARRANTS PAYABLE - 11,283
OTHER LIABILITIES - 30,078
TOTAL LIABILITIES - 41,361
NET ASSETS
HELD IN TRUST FOR OTHER PURPOSES 62,292$ -$
See accompanying notes to the basic financial statements
- 20 -
PRIVATE
PURPOSE
TRUST FUNDS
ADDITIONS:
INVESTMENT INCOME: 777$
TOTAL ADDITIONS 777
DEDUCTIONS:
EDUCATIONAL SCHOLARSHIPS 1,000
CHANGE IN NET ASSETS (223)
NET ASSETS AT BEGINNING OF YEAR 62,515
NET ASSETS AT END OF YEAR 62,292$
See accompanying notes to the basic financial statements
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED JUNE 30, 2004
FIDUCIARY FUNDS
- 21 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying basic financial statements of the Town of Brewster, Massachusetts (the Town) have
been prepared in accordance with accounting principles generally accepted in the United States of
America (GAAP). The Governmental Accounting Standards Board (GASB) is the recognized standard-
setting body for establishing governmental accounting and financial reporting principles. The following is
a summary of the more significant Town accounting policies:
A. Reporting Entity
Primary Government
The Town is a municipal corporation that is governed by an elected five member Board of Selectmen (the
Board). The Board is responsible for appointing a Town Administrator whose responsibility is to manage
the day to day operations. For financial reporting purposes, the Town has included all funds,
organizations, account groups, agencies, boards, commissions and institutions. The Town has also
considered all potential component units, blended or discretely presented, for which it is financially
accountable as well as other organizations for which the nature and significance of their relationship with
the Town are such that exclusion would cause the basic financial statements to be misleading or
incomplete. Blended component units, although legally separate entities, are, in substance, part of the
government’s operations and discretely presented component units are reported in a separate column in
the government-wide financial statements to emphasize that they are legally separate from the
government. It has been determined that there are no component units (blended or discretely presented)
for inclusion in the primary government’s financial reporting entity.
Joint Ventures
Municipal joint ventures pool resources to share the costs, risks and rewards of providing services to their
participants, the general public or others. The Town is a participant in the following joint ventures:
Name Purpose Address
Annual
Assessment
Nauset Regional To provide education services 78 Eldredge Parkway $ 7,401,600
School District Orleans, MA 02653
Cape Cod Regional
Technical High
School
To provide vocational education 351 Pleasant Lake Ave
Harwich, MA 02645
$ 766,482
The Nauset Regional School District (the District) is governed by an eleven (11) member school
committee consisting of three (3) elected representatives from the Town of Brewster. The Town is
indirectly liable for debt and other expenditures of the District and is assessed annually for its share of the
operating and capital costs. Separate financial statements may be obtained by writing to the Treasurer of
the District at the above address. The Town has an approximately 48.33% equity interest in the joint
venture.
- 22 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
The Cape Cod Regional Technical High School is governed by a twenty-one (21) member school
committee consisting of two (2) elected representatives from the Town of Brewster. The Town is
indirectly liable for debt and other expenditures of the District and is assessed annually for its share of the
operating and capital costs. Separate financial statements may be obtained by writing to the Treasurer of
the District at the above address. The Town has no equity interest in the joint venture.
Pursuant to an inter-municipal agreement authorized by state statutes, the Town joined the Town of
Orleans, and the Town of Eastham to provide for sharing of the capital, operating and maintenance and
other costs of a Septic Treatment Facility (Tri-Town Septage Facility) for the mutual advantage of the
Towns. A three member Board of Managers for the joint venture is appointed for oversight purposes, such
Board consisting of the chairman of each Town’s Board of Selectmen. An annual budget for the operation
and management of the facility is prepared by the facility superintendent and submitted to the Board of
Managers.
B. Government-Wide and Fund Financial Statements
Government-Wide Financial Statements
The government-wide financial statements (i.e., statement of net assets and the statement of changes in
net assets) report information on all of the non-fiduciary activities of the primary government.
Governmental activities, which are primarily supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which are supported primarily by user fees and charges.
Fund Financial Statements
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though fiduciary funds are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements. Nonmajor funds are aggregated and displayed in a single column.
Major Fund Criteria
A fund is considered major if it is the primary operating fund of the Town or it meets the
following criteria:
a. If the total assets, liabilities, revenues, or expenditures/expenses of an individual
governmental or enterprise fund are at least 10 percent of the corresponding element (assets,
liabilities, etc.) for all funds of that category or type (total governmental or total enterprise
funds), and
b. If the total assets, liabilities, revenues, or expenditures/expenses of the individual
governmental fund or enterprise fund are at least 5 percent of the corresponding element for
all governmental and enterprise funds combined.
Additionally, any other governmental or enterprise fund that management believes is particularly
significant to the basic financial statements may be reported as a major fund.
Fiduciary funds are reported by fund type.
- 23 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses
are recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as
revenues in the fiscal year for which they are levied. Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by the provider have been met.
The statement of activities demonstrates the degree to which the direct expenses of a particular function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include the following:
a. Charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment.
b. Grants and contributions that are restricted to meeting the operational requirements of a particular
function or segment.
c. Grants and contributions that are restricted to meeting the capital requirements of a particular
function or segment.
Taxes and other items not identifiable as program revenues are reported as general revenues.
For the most part, the effect of interfund activity has been removed from the government-wide financial
statements. Exceptions are charges between the general fund and the various enterprise funds. Elimination
of these charges would distort the direct costs and program revenues reported for the functions affected.
Fund Financial Statements
Governmental Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting,
revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). Measurable means the amount of the transaction can be determined and available means
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
Expenditures are recorded when the related fund liability is incurred, except for interest on general long-
term debt which is recognized when due, and the landfill post closure care costs, which is recognized
when the obligation is expected to be liquidated with current expendable available resources.
- 24 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
In applying the susceptible to accrual concept to intergovernmental revenues, there are essentially two
types of revenues. In one, moneys must be expended on the specific purpose or project before any
amounts will be paid to the Town; therefore, revenues are recognized based upon the expenditures
incurred. In the other, moneys are virtually unrestricted and are usually revocable only for failure to
comply with prescribed compliance requirements. These resources are reflected as revenues at the time of
receipt or earlier if the susceptible to accrual criteria are met.
The Town considers property taxes as available if they are due and collected within 60 days after fiscal
year-end. Licenses and permits, user charges, fines and forfeitures, and miscellaneous revenues are
recorded as revenues when received. Investment earnings are recorded as earned.
The Town reports the following major governmental funds:
¾ The general fund is the primary operating fund of the Town. It is used to account for all financial
resources, except those that are required to be accounted for in another fund.
¾ The stabilization fund is a special revenue fund used to account for the accumulation of resources
to provide general and/or capital reserves.
¾ The Stony Brook School fund is a capital project fund used to account for the construction costs of
the Stony Brook School.
¾ The nonmajor governmental funds consist of other special revenue, capital projects and
permanent funds that are aggregated and presented in the nonmajor governmental funds column
on the governmental funds financial statements. The following describes the general use of these
fund types:
o The special revenue fund is used to account for the proceeds of specific revenue sources
(other than permanent funds or capital projects funds) that are restricted by law or
administrative action to expenditures for specified purposes.
o The capital projects fund is used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by enterprise
and trust funds).
o The permanent fund is used to account for financial resources that are legally restricted to the
extent that only earnings, not principal, may be used for purposes that support the
governmental programs.
Proprietary Fund Financial Statements
Proprietary fund financial statements are reported using the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and
expenses are recorded when the liabilities are incurred.
- 25 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with the proprietary funds principal ongoing operations. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
The following major proprietary funds are reported:
¾ The water enterprise fund is used to account for water activities.
¾ The golf enterprise fund is used to account for golf activities.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements are reported using the flow of economic resources measurement focus
and use the accrual basis of accounting. Fiduciary funds are used to account for assets held by the Town
in a trustee capacity for others that cannot be used to support the governmental programs.
The following fiduciary fund types are reported:
The private-purpose trust fund is used to account for trust arrangements, other than those properly
reported in the permanent fund (nonmajor governmental funds), under which principal and investment
income exclusively benefit individuals, private organizations, or other governments.
The agency fund is used to account for assets held in a purely custodial capacity
Government-Wide and Fund Financial Statements
For the government-wide financial statements, and proprietary and fiduciary fund accounting, all
applicable Financial Accounting Standards Board (FASB) pronouncements issued on or prior to
November 30, 1989, are applied, unless those pronouncements conflict with or contradict GASB
pronouncements.
D. Cash and Investments
Government-Wide and Fund Financial Statements
Cash and short term investments are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition. Investments are
reported at fair value.
E. Accounts Receivable
Government-Wide and Fund Financial Statements
The recognition of revenue related to accounts receivable reported in the government-wide financial
statements and proprietary and fiduciary funds financial statements are reported under the accrual basis of
accounting. The recognition of revenue related to accounts receivable reported in the governmental funds
financial statements are reported under the modified accrual basis of accounting.
- 26 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
Real Estate, Personal Property Taxes and Tax Liens
Real estate and personal property taxes are based on values assessed as of each January 1 and are
normally due on the subsequent November 1 and May 1. Property taxes that remain unpaid after the
respective due dates are subject to penalties and interest charges. By law, all taxable property in the
Commonwealth must be assessed at 100% of fair market value. Once levied, which is required to be at
least 30 days prior to the due date, these taxes are recorded as receivables in the fiscal year of levy.
Based on the Town’s experience, most property taxes are collected during the year in which they are
assessed. Liening of properties on which taxes remain unpaid occurs annually. The Town ultimately has
the right to foreclose on all properties where the taxes remain unpaid.
A statewide property tax limitation statute known as “Proposition 2 ½” limits the amount of increase in
property tax levy in any fiscal year. Generally, Proposition 2 ½ limits the total levy to an amount not
greater than 2 ½ % of the total assessed value of all taxable property within the Town. Secondly, the tax
levy cannot increase by more than 2 ½ % of the prior year’s levy plus the taxes on property newly added
to the tax rolls. Certain provisions of Proposition 2 ½ can be overridden by a Town-wide referendum.
Real estate receivables are secured via the tax lien process and are considered 100% collectible.
Accordingly, an allowance for uncollectibles is not reported.
Personal property taxes cannot be secured through the lien process. The allowance of uncollectibles is
estimated based on historical trends and specific account analysis.
Motor Vehicle Excise
Motor vehicle excise taxes are assessed annually for each vehicle registered in the Town and are recorded
as receivables in the fiscal year of the levy. The Commonwealth is responsible for reporting the number
of vehicles registered and the fair values of those vehicles. The tax calculation is the fair value of the
vehicle multiplied by $25 per $1,000 of value.
The allowance for uncollectibles is estimated based on historical trends and specific account analysis.
Water
User fees are levied semi-annually based on meter readings and are subject to penalties if they are not
paid by the respective due date. Water liens are processed in December of every year and included as a
lien on the property owner's tax bill. Water charges and related liens are recorded as receivables in the
fiscal year of the levy.
Since the receivables are secured via the lien process, these accounts are considered 100% collectible and
therefore do not report an allowance for uncollectibles.
Departmental and Other
Departmental and other receivables consist primarily of Title V and ambulance receivables and are
recorded as receivables in the fiscal year accrued. The allowance for uncollectibles is estimated based on
historical trends and specific account analysis.
- 27 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
Intergovernmental
Various federal and state grants for operating and capital purposes are applied for and received annually.
For non-expenditure driven grants, receivables are recognized as soon as all eligibility requirements
imposed by the provider have been met. For expenditure driven grants, receivables are recognized when
the qualifying expenditures are incurred and all other grant requirements are met.
These receivables are considered 100% collectible and therefore do not report an allowance for
uncollectibles.
F. Inventories
Government-Wide and Fund Financial Statements
Inventories of the governmental funds and the water and golf enterprise funds are recorded as
expenditures at the time of purchase. Such inventories are not material in total to the basic financial
statements, and therefore are not reported.
G. Capital Assets
Government-Wide and Proprietary Fund Financial Statements
Capital assets, which include land, vehicles, buildings and improvements, capital improvements,
machinery and equipment, and infrastructure (e.g., water mains, roadways, and similar items), are
reported in the applicable governmental or business-type activities column of the government-wide
financial statements, and the proprietary fund financial statements. Capital assets are recorded at historical
cost, or at estimated historical cost, if actual historical cost is not available. Donated capital assets are
recorded at the estimated fair market value at the date of donation. Except for the capital assets of the
governmental activities column in the government-wide financial statements, construction period interest
is capitalized on constructed capital assets if material.
All purchases and construction costs in excess of $15,000, and all land costs, are capitalized at the date of
acquisition or construction, respectively, with expected useful lives of five years or greater.
Capital assets (excluding land and construction in progress) are depreciated on a straight-line basis. The
estimated useful lives of capital assets are as follows:
Asset Class
Estimated
Useful Life
(in years)
Buildings and Improvements 20-40
Capital Improvements (other than buildings) 20
Machinery, Equipment and Vehicles 5-15
Infrastructure 40
- 28 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend
asset lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized.
Governmental Fund Financial Statements
Capital asset costs are recorded as expenditures in the fiscal year of purchase for the various funds.
H. Interfund Receivables and Payables
During the course of its operations, transactions occur between and within individual funds that may
result in amounts owed between funds.
Government-Wide Financial Statements
Transactions of a buyer/seller nature between and within governmental funds are eliminated from the
governmental activities in the statement of net assets. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the statement of net assets as "internal
balances".
Fund Financial Statements
Transactions of a buyer/seller nature between and within funds are not eliminated from the individual
fund statements. Receivables and payables resulting from these transactions are classified as "Due from
other funds" or "Due to other funds" on the balance sheet.
I. Interfund Transfers
During the course of its operations, resources are permanently reallocated between and within funds.
These transactions are reported as operating transfers in and operating transfers out.
Government-Wide Financial Statements
Operating transfers between and within governmental funds are eliminated from the governmental
activities in the statement of net assets. Any residual balances outstanding between the governmental
activities and business-type activities are reported in the statement of activities as "Transfers, net".
Fund Financial Statements
Operating transfers between and within funds are not eliminated from the individual fund statements and
are reported as operating transfers in and operating transfers out.
J. Deferred Revenue
Deferred revenue at the governmental fund financial statement level represents billed receivables that do
not meet the available criterion in accordance with the current financial resources measurement focus and
the modified accrual basis of accounting. Deferred revenue is recognized as revenue in the conversion to
the government-wide (full accrual) financial statements.
- 29 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
K. Net Assets and Fund Equity
Government-Wide Financial Statements (Net Assets)
Net assets are classified into three components:
a. Invested in capital assets, net of related debt – consists of capital assets including restricted
capital assets, net of accumulated depreciation and reduced by the outstanding balances of any
bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction,
or improvement of those assets.
b. Restricted net assets – Consists of net assets with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, or laws or regulations of other
governments; or (2) law through constitutional provisions or enabling legislation.
Net assets have been “restricted” for the following:
• Streets represent amounts committed by the Commonwealth for the repair and/or construction
of streets.
• Permanent funds -expendable represents amounts held in trust for which the expenditures are
restricted by various trust agreements.
• Permanent funds -nonexpendable represents amounts held in trust for which only investment
earnings may be expended.
• Other specific purpose represents restrictions placed on assets from outside parties.
c. Unrestricted net assets – All other net assets that do not meet the definition of “restricted” or
“invested in capital assets, net of related debt.”
Fund Financial Statements (Fund Balances)
a. Fund balances consist of funds that are reserved for amounts, that are not available for
appropriation, that are legally restricted by outside parties for a specific future use, and
designations of fund balances that represent tentative management plans that are subject to
change.
Fund balances have been reserved for the following:
• Encumbrances and continuing appropriations represents amounts obligated under purchase
orders, contracts and other commitments for expenditures that are being carried over to the
ensuing fiscal year.
• Perpetual permanent funds represent amounts held in trust for which only investment
earnings may be expended.
- 30 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
Fund balances have been designated for the following:
• Subsequent year's expenditures represents amounts appropriated for the fiscal year 2004
operating budget.
b. Undesignated fund balances – all other fund balances that do not meet the definition of
“reserved” or “designated.”
L. Long-term debt
Government-Wide and Proprietary Fund Financial Statements
Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net
assets. Material bond premiums and discounts are deferred and amortized over the life of the bonds using
the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
Governmental Fund Financial Statements
The face amount of governmental funds long-term debt is reported as other financing sources. Bond
premiums and discounts, as well as issuance costs, are recognized in the current period. Bond premiums
are reported as other financing sources and bond discounts are reported as other financing uses. Issuance
costs, whether or not withheld from the actual bond proceeds received, are reported as general
government expenditures.
M. Investment Income
Excluding the permanent funds, investment income derived from major and nonmajor governmental
funds is legally assigned to the general fund unless otherwise directed by Massachusetts General Laws
(MGL).
N. Compensated Absences
Employees are granted sick and vacation leave in varying amounts. Upon retirement, termination or
death, certain employees are compensated for unused sick and vacation leave (subject to certain
limitations) at their then current rates of pay. The total amount of sick and vacation costs to be paid in
future years is not material to the basic financial statements and has not been recorded on the basic
financial statements.
- 31 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
O. Post Retirement Benefits
Government-Wide and Fund Financial Statements
In addition to providing pension benefits, health and life insurance coverage is provided for retired
employees and their survivors in accordance with Chapter 32B, of Massachusetts General Laws, under
various contributory plans. The cost of providing health and life insurance is recognized by recording the
employer's 50% share of insurance premiums in the general fund in the fiscal year paid. All benefits are
provided through third-party insurance carriers and health maintenance organizations that administer,
assume, and pay all claims. For the fiscal year ended June 30, 2004, this expense/expenditure totaled
approximately $154,269. There were approximately 56 participants eligible to receive benefits at
June 30, 2004.
P. Use of Estimates
Government-Wide and Fund Financial Statements
The preparation of the accompanying financial statements in conformity with accounting principles
generally accepted in the United States of America, requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could vary from estimates that were
used.
Q. Total Column
Government-Wide Financial Statements
The total column presented on the government-wide financial statements represents consolidated financial
information.
Fund Financial Statements
The total column on the fund financial statements is presented only to facilitate financial analysis. Data in
this column is not comparable to the consolidated financial information.
- 32 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Basis of Accounting
Pursuant to Chapter 44, Section 32 of the Massachusetts General Laws, the Town adopts an annual
budget for the general fund as well as for those special revenue funds for which the provisions of Chapter
44,Section 53fl1/2 have been adopted. The budgets for all departments and operations of the Town,
except that of the public schools, are prepared under the direction of the Town Administrator. The School
Department budget is prepared under the direction of the School Committee. The level of expenditures
may not legally exceed appropriations for each department or undertaking in the following categories: (1)
salaries and wages; (2) ordinary maintenance; and (3) capital outlays.
The majority of appropriations are non-continuing which lapse at the end of each fiscal year. Others are
continuing appropriations for which the governing body has authorized that an unspent balance from a
prior fiscal year be carried forward and made available for spending in the current fiscal year. Carryover
articles, not encumbrances, are included as part of the subsequent fiscal year's original budget.
Original and supplemental appropriations are enacted upon by a Town Meeting vote. Management may
not amend the budget without seeking the approval of the governing body. The Town’s Finance
Committee can legally transfer funds from its reserve fund to other appropriations within the budget
without seeking Town Meeting approvals. The original fiscal year 2004 approved budget authorized
$25,156,002 in current year appropriations and other amounts to be raised and $913,211 in carryover
articles carried over from previous fiscal years. Supplemental appropriations of $868,509 were approved
at two Special Town Meetings for fiscal year 2004.
The Town Accountant has the responsibility to ensure that budgetary controls are maintained and
monitored through the accounting system.
B. Budgetary – GAAP Reconciliation
For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of
accounting (established by the Commonwealth) is followed, which differs from the GAAP basis of
accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the fiscal
year ended June 30, 2004, is presented below:
Net change in fund balance - budgetary basis (1,469,309)$
Basis of accounting differences:
Increase in revenue for on-behalf payments - MTRS 247,909
Increase in expenditures for on-behalf payments - MTRS (247,909)
Increase in revenue for the MWPAT subsidy 9,454
Increase in expenditures for the MWPAT subsidy (9,454)
Adjustment for current year articles 1,221,158
Adjustment for current year encumbrances 149,986
Adjustment for expenditures from prior year encumbrances (95,835)
Net change in fund balance - GAAP basis (194,000)$
- 33 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
C. Excess of Expenditures over Appropriations
For the fiscal year ended June 30, 2004, actual expenditures exceeded appropriations for snow and ice.
These over-expenditures will be funded by available funds during fiscal year 2005.
D. Deficit Fund Balances
Several individual fund deficits exist within the special revenue funds. These individual deficits will be
eliminated through subsequent fiscal year budget transfers and grants during fiscal year 2005.
NOTE 3 – CASH AND INVESTMENTS
State and local statutes place certain limitations on the nature of deposits and investments available to the
Town. Deposits (including demand deposits, term deposits and certificates of deposit) in any one financial
institution may not exceed certain levels unless collateralized by the financial institutions involved.
Investments can also be made in securities issued by or unconditionally guaranteed by the U.S.
government or agencies that have a maturity of less than one year from the date of purchase, repurchase
agreement guaranteed by the U.S. government or agencies that have a maturity of less than one year from
the date of purchase, repurchase agreements guaranteed by such securities with maturity dates of no more
than 90 days from the date of purchase, and units in the Massachusetts Municipal Depository Trust
(MMDT). The Treasurer of the Commonwealth of Massachusetts oversees the financial management of
the MMDT, a local investment pool for cities, towns, and other state and local agencies within the
Commonwealth. The Town’s fair value of its investment in MMDT represents their value of the pool’s
shares. The Town’s Trust Funds have expanded investment powers including the ability to invest in
equity securities, corporate bonds, annuities and other specified investments.
The composition of the Town’s bank recorded deposits and investments fluctuates depending primarily
on the timing of property tax receipts, proceeds from borrowings, collections of state and federal aid, and
capital outlays throughout the year.
Short-term investments and investments are classified as to collateral risk into the following three
categories:
Category 1: Insured or registered, or securities held by the Town or its agent in the Town's name.
Category 2: Uninsured and unregistered, with securities held by the counterparty's trust department or
agent in the Town's name.
Category 3: Uninsured and unregistered, with securities held by the counterparty, or its trust
department or agent but not in the Town's name.
Mutual fund investments (MMDT) are not categorized because they are managed investment pools.
- 34 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
As of June 30, 2004, the carrying amount of the Town’s deposits totaled $6,895,154 and the respective
bank balances totaled $7,250,483. Of the Town’s bank balances, $300,000 was covered by Federal
Depository Insurance and $6,950,483 was uninsured and uncollateralized. The following details the
carrying amount of cash and short-term investments and investments as reported in the basic financial
statements at June 30, 2004:
Cash and
Short-Term
Cash and investment balances at June 30, 2004:Investments Investments Total
Cash
Checking, savings and NOW accounts 2,877,661$ -$ 2,877,661$
Money market deposits 4,017,493 - 4,017,493
Petty cash 650 - 650
Total Carrying amount of cash 6,895,804 - 6,895,804
Investments
Investments not subject to categorization
MMDT 7,970,541 - 7,970,541
Total investments 7,970,541 - 7,970,541
Total cash and investments at June 30, 2004 14,866,345$ -$ 14,866,345$
Reconciliation to Basic Financial Statements:
Statement
Statement of Fiduciary
of Net Assets Net Assets Total
Cash and short-term investments 14,766,160$ 100,185$ 14,866,345$
Investments - - -
14,766,160$ 100,185$ 14,866,345$
- 35 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 4 – RECEIVABLES
The receivables at June 30, 2004 for the Town’s individual major and nonmajor governmental funds, and
fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as
follows:
Allowance
Gross for Net
Receivables:Amount Uncollectibles Amount
Real estate and personal property taxes 180,709$ (1,400)$ 179,309$
Tax liens 409,763 - 409,763
Motor vehicle excise taxes 65,766 (14,000) 51,766
Departmental and other 474,110 (120,000) 354,110
Intergovernmental 7,018,508 - 7,018,508
Special assessments 928,472 - 928,472
Total 9,077,328$ (135,400)$ 8,941,928$
The receivables at June 30, 2004, for the enterprise funds consist of the following:
Allowance
Gross for Net
Receivables:Amount Uncollectibles Amount
Water
User fees 55,294$ -$ 55,294$
Special Assessments 70,552 - 70,552
Total 125,846$ -$ 125,846$
- 36 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with revenues that have been received, but not yet earned. At the end
of the current fiscal year, the various components of deferred revenue reported in the governmental funds
were as follows:
Nonmajor
General Governmental
Receivable Type:Fund Funds Total
Property Taxes 144,310$ -$ 144,310$
Tax Liens 409,763 - 409,763
Motor vehicle excise taxes 51,766 - 51,766
Departmental and other - 343,142 343,142
Intergovernmental 6,919,056 94,222 7,013,278
Special assessments - 928,472 928,472
Total 7,524,895$ 1,365,836$ 8,890,731$
- 37 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2004, was as follows:
Beginning Ending
Governmental Activities:Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 26,515,312$ 1,522,200$ -$ 28,037,512$
Construction in progress 421,887 1,452,172 (1,874,059) -
Total capital assets not being depreciated 26,937,199 2,974,372 (1,874,059) 28,037,512
Capital assets being depreciated:
Building and improvements 17,189,253 - 1,874,059 19,063,312
Capital improvement (other than buildings)97,397 - - 97,397
Machinery, equipment, and vehicles 5,679,760 303,183 (38,000) 5,944,943
Infrastructure 4,200,985 150,440 - 4,351,425
Total capital assets being depreciated 27,167,395 453,623 1,836,059 29,457,077
Less accumulated depreciation for:
Building and improvements (4,474,685) (451,048) - (4,925,733)
Capital improvement (other than buildings)(70,972) (3,481) - (74,453)
Machinery, equipment, and vehicles (4,206,960) (328,179) 38,000 (4,497,139)
Infrastructure (1,971,476) (208,283) - (2,179,759)
Total accumulated depreciation (10,724,093) (990,991) 38,000 (11,677,084)
Total capital assets being depreciated, net 16,443,302 (537,368) 1,874,059 17,779,993
Total governmental activities capital assets, net 43,380,501$ 2,437,004$ -$ 45,817,505$
- 38 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
Beginning Ending
Business-Type Activities:Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 2,874,212$ -$ -$ 2,874,212$
Construction in progress 3,546,939 628,770 (4,175,709) -
Total capital assets not being depreciated 6,421,151 628,770 (4,175,709) 2,874,212
Capital assets being depreciated:
Buildings and improvements 2,476,050 - - 2,476,050
Machinery, equipment, and vehicles 1,788,062 66,719 (49,347) 1,805,434
Infrastructure 13,782,623 - 4,175,709 17,958,332
Total capital assets being depreciated 18,046,735 66,719 4,126,362 22,239,816
Less accumulated depreciation for:
Buildings and improvements (288,537) (61,581) - (350,118)
Machinery, equipment, and vehicles (909,788) (160,378) 49,347 (1,020,819)
Infrastructure (4,109,778) (396,873) - (4,506,651)
Total accumulated depreciation (5,308,103) (618,832) 49,347 (5,877,588)
Total capital assets being depreciated, net 12,738,632 (552,113) 4,175,709 16,362,228
Total business-type activites capital assets, net 19,159,783$ 76,657$ -$ 19,236,440$
Depreciation expense was charged to functions/programs of the primary government as follows:
General government 431,103$
Public safety 161,055
Education 58,536
Public works 279,323
Human services -
Culture and recreation 60,974
T otal depreciation expense - governmental activities 990,991$
W ater 277,947$
Golf 340,885
T otal depreciation expense - business-type activities 618,832$
Governmental Activities:
Business-Type Activities:
- 39 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 6 – INTERFUND TRANSFERS
Interfund transfers for the fiscal year ended June 30, 2004, are summarized as follows:
Nonmajor Stony
General Governmental Construction
Operating Transfers Out:Fund Funds Fund Total
Nonmajor Governmental Funds 966,867$ -$ -$ 966,867$ (1)
Water Enterprise Fund 171,146 - - 171,146 (2)
Golf Enterprise Fund 713,890 - - 713,890 (2)
General Fund - 264 800,000 800,264 (1)
Total 1,851,903$ 264$ 800,000$ 2,652,167$
Operating Transfers In:
(1) Represents budgeted transfer to supplement the operating budget
(2) Represents budgeted transfers from the various enterprise funds to the general fund
NOTE 7 – SHORT-TERM FINANCING
Under state law, and with the appropriate authorization, the Town is authorized to borrow funds on a
temporary basis as follows:
• To fund current operations prior to the collection of revenues by issuing revenue anticipation notes
(RANS).
• To fund grants prior to reimbursement by issuing grant anticipation notes (GANS).
• To fund Capital project costs incurred prior to selling permanent debt by issuing bond anticipation
notes (BANS).
• To fund current project costs and other approved expenditures incurred, that are anticipated to be
reimbursed by the Commonwealth through the issuance of State Aid anticipation notes (SAANS).
Short-term loans are general obligations of the Town and maturity dates are governed by statute. Interest
expenditures and expenses for short-term borrowings are accounted for in the general fund and enterprise
funds respectively.
- 40 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
The following is a summary of changes in short-term debt for the year ended June 30, 2004:
Type Purpose
Rate
(%)
Due
Dat e
Balance at
June 30, 2003
Renewed/
Issued
Retired/
Redeemed
Balance at
June 30, 2004
BAN Title V - MWPAT Var 12/31/2003 100,000$ -$ (100,000)$ -$
BAN Land Acquisition 1.35 1/5/2005 - 370,000 - 370,000
Total Governmental Funds 100,000 370,000 (100,000) 370,000
BAN Water Main - Slough Road 1.30 1/21/2005 - 70,000 - 70,000
Total Water Enterprise Fund - 70,000 - 70,000
Total 100,000$ 440,000$ (100,000)$ 440,000$
- 41 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 8 – LONG-TERM DEBT
The Town is subject to a dual-level, general debt limit: the normal debt limit and the double debt limit.
Such limits are equal to 5% and 10%, respectively, of the valuation of taxable property in the Town as
last equalized by the Commonwealth’s Department of Revenue. Debt may be authorized up to the normal
debt limit without state approval. Authorizations under the double debt limit however require the approval
of the Commonwealth’s Emergency Finance Board. Additionally, there are many categories of general
long-term debt which are exempt from the debt limit but are subject to other limitations.
The following is a summary of the changes in long-term debt for the year ended June 30, 2004:
Bonds and Notes Payable Schedule -Governmental Funds
Project
Interest
Rate (%)
Outstanding at
June 30, 2003 Issued Redeemed
Outstanding at
June 30, 2004
Punkhorn 4.65 23,632$ -$ 23,632$ -$
Land Acquisition 4.65 17,192 - 17,192 -
School 4.65 61,488 - 61,488 -
Land 4.65 119,896 - 119,896 -
School 5.15 5,500,000 - 425,000 5,075,000
Library 5.15 650,000 - 50,000 600,000
MWPAT Title V Septic Var 187,003 - 10,401 176,602
Road Betterments 4.20 93,000 - 15,500 77,500
Road Betterments 4.80 105,000 - 15,000 90,000
Police Station 5.51 2,890,000 - 170,000 2,720,000
Road Betterments 3.80 100,000 - 15,000 85,000
Road Betterments 3.59 285,000 - 30,000 255,000
Road Betterments 3.62 - 205,000 - 205,000
Road Betterments - 280,000 - 280,000
MWPAT Title V Septic 3.59 - 185,254 - 185,254
Total 10,032,211$ 670,254$ 953,109$ 9,749,356$
The annual debt service requirements for principal and interest for Governmental bonds and notes
outstanding at June 30, 2004 are as follows:
Fiscal Year Principal Interest Total
2005 780,900$ 475,482$ 1,256,382$
2006 790,426 446,093 1,236,519
2007 790,429 408,927 1,199,356
2008 785,425 371,391 1,156,816
2009 785,425 333,388 1,118,813
2010-2014 3,699,626 1,089,564 4,789,190
2015-2019 1,876,525 275,730 2,152,255
2020-2024 235,600 17,396 252,996
2025 5,000 125 5,125
Total 9,749,356$ 3,418,096$ 13,167,452$
- 42 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
Bonds and Notes Payable Schedule -Water and Golf Enterprise Fund
Project
Interest
Rate (%)
Outstanding at
June 30, 2003 Issued Redeemed
Outstanding at
June 30, 2004
Golf Course 4.65 46,424$ -$ 46,424$ -$
Water Well 4.65 11,368 - 11,368 -
Golf Course 4.75 8,955,000 - 340,000 8,615,000
Water Mains 5.51 2,585,000 - 155,000 2,430,000
Telemetry 5.51 145,000 - 25,000 120,000
Water Betterments - Sears Rd 3.80 20,000 - 5,000 15,000
Water Betterments - Williams Dr 3.80 40,000 - 5,000 35,000
Standpipe #2 3.80 650,000 - 75,000 575,000
Standpipe Rehabilitation 3.62 - 725,000 - 725,000
Total 12,452,792$ 725,000$ 662,792$ 12,515,000$
The annual debt service requirements for principal and interest for water and golf enterprise fund bonds
and notes outstanding at June 30, 2004 are as follows:
Fiscal Year Principal Interest Total
2005 695,000$ 592,016$ 1,287,016$
2006 710,000 560,753 1,270,753
2007 730,000 529,128 1,259,128
2008 745,000 497,003 1,242,003
2009 765,000 463,778 1,228,778
2010-2014 3,895,000 1,784,268 5,679,268
2015-2019 4,055,000 858,098 4,913,098
2020-2024 920,000 46,505 966,505
Total 12,515,000$ 5,331,549$ 17,846,549$
- 43 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
Loans Authorized and Unissued
As of June 30, 2004, the Town has loans authorized and unissued as follows:
Date
Description Authorized Amount
Water Mains - Slough Road 5/8/2001 750,000$
Elementary School - Septic 11/20/1995 120,000
Septage Betterments 5/6/1996 28,600
Septage Betterments 5/4/1998 2,597
Land Acquisition 11/19/2001 1,522,200
New Water Supply Well No. 5 5/5/2003 165,000
Land Acquisition -Jolly Whaler 11/1/2003 945,000
Irrigation System - Captains Golf Course 5/3/2004 800,000
Total 4,333,397$
School Building Assistance Bureau Reimbursements
Chapter 645 of the Act of 1948 as amended (“Chapter 645”) created a statewide school building
assistance program. Pursuant to this program, cities and towns issued bonds for eligible school building
projects and were reimbursed over a period of years by the Commonwealth according to a statutory
percentage for such city or town.
Legislation enacted as part of the Commonwealth’s Fiscal 2001 budget repealed 645 and created a new
school building assistance program codified as Chapter 70B of the Massachusetts General Laws. Among
other changes, the new program includes grants for alternatives to construction and calculates grants for
each project based on a number of factors. The new legislation does not affect the reimbursement
percentages for bonds previously issued under Chapter 645, and the grants for certain “grandfathered”
projects will be based on the statutory percentages provided for in Chapter 645.
The Town has been approved for a 65% percent state school construction grant through the School
Construction Assistance Bureau (SBAB) to cover eligible project costs, including debt service associated
with the financing of these projects, subject to annual appropriation by the state legislature. The Town
received $656,001 in FY 2004 from the SBAB for completed school construction projects.
- 44 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
Changes in Long-term Liabilities
The following is a summary of changes in long-term liabilities for the year ended June 30, 2004:
Beginning Ending Current
Governmental Activities:Balance Additions Reductions Balance Portion
Bonds and notes payable 10,032,211$ 670,254$ (953,109)$ 9,749,356$ 780,900$
Landfill postclosure care costs 1,400,000 - (50,000) 1,350,000 50,000
Total governmental activity
long-term liabilities 11,432,211$ 670,254$ (1,003,109)$ 11,099,356$ 830,900$
Beginning Ending Current
Business-Type Activities:Balance Additions Reductions Balance Portion
Bonds and notes payable 12,452,792$ 725,000$ (662,792)$ 12,515,000$ 695,000$
Total business-type activity
long-term liabilities 12,452,792$ 725,000$ (662,792)$ 12,515,000$ 695,000$
The governmental activities long-term liabilities are generally liquidated by the general fund.
Overlapping Debt
The Town pays assessments under formulas which include debt service payments to other governmental
agencies providing services to the Town, (commonly referred to as overlapping debt). The following
summary sets forth the long-term debt of such governmental agencies and the estimated share being
financed by the Town as of June 30, 2004:
Total Long-Town's Town's
Term Debt Estimated Indirect
Agency Outstanding Share De bt
Barnstable County 635,000$ 4.25%26,988$
Nauset Regional School District 14,471,611 48.33%6,994,130
15,106,611$ 7,021,117$
- 45 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 9 – STABILIZATION FUND
At June 30, 2004, $1,705,914 has been set aside in the stabilization fund, which is classified as a major
fund in the governmental funds financial statements. The stabilization fund balance can be used for
general and/or capital purposes as approved by Town Meeting vote.
NOTE 10 – RISK FINANCING
The Town is exposed to various risks of loss related to torts; theft of, damage to or destruction of assets;
errors and omissions; injuries to employees; employee’s health and life; and natural disasters.
Buildings are fully insured against fire, theft, and natural disaster to the extent that losses exceed $1,000
per incident. The fully insurable value of Town buildings is $37,807,497.
The Town is insured for general liability; however, Chapter 258 of the Massachusetts General Laws limits
the Town’s liability to a maximum of $100,000 per claim in all matters except in actions relating to
federal civil rights, eminent domain and breach of contract. Such claims are charged to the general fund.
There were no such claims in 2004.
The Town is a member of the Cape Cod Municipal Health Group, (CCMHG) which is a Massachusetts
Municipal Health Insurance Joint purchase group. The Group includes thirteen Towns, six school
districts, five fire districts, seven water districts, one recreation authority, and one education collaborative
as participants. Health benefits consist of a traditional medical indemnity program and a Medex program
with Blue Cross Blue Shield of Massachusetts. The traditional medical indemnity program consists of
Master Health Plus and Master Health, Master Medical, and Master Medical Carveout plans. In addition,
the Group adopted an Exclusive Provider Organization plan with Harvard Pilgrim Health Care and a self
funded medi-wrap plan, Pilgrim Preferred 65, effective July 1, 1992. All of these plans are self-funded.
The Group adopted two Medicare Choice plans: Blue Care 65 and Tufts Secure Horizons (fully insured).
Beginning July 1, 1996, the group adopted Blue Cross Blue Shield Network Blue, a comprehensive, self-
funded exclusive provider organization plan. Also, beginning July 1, 1996, the Group adopted a
contributory dental insurance plan (self funded) and a voluntary (employee-pay-all/fully insured
premium) dental plan. Effective July 1, 2001, the Group adopted two Preferred Provider Organization
(PPO) plans. Blue Care Elect Preferred PP is administered by BCBS, and Harvard Pilgrim PPO is
administered by HPHC. Both PPO plans are self-funded.
The traditional medical indemnity plans, Blue Care Elect Preferred PPO plan, Network Blue EPO plan,
and Medex programs are on a claims-paid basis, and are administered by Blue Cross Blue Shield of
Massachusetts for a monthly administration fee based on the number of individual, single parent/single
child, and family plan subscribers for that particular month.
The Harvard Pilgrim EPO Plan, Harvard Pilgrim PPO plan, and Pilgrim Preferred 65 plan are on a
claims-paid basis, and are administered by Harvard Pilgrim health care for a monthly administration fee
based on a number of individual and family plan subscribers for that particular month.
The contributory dental insurance plan is on a claims-paid basis for subscribers whose employers pay a
portion (50% or more) of the monthly cost. The voluntary dental plan is on a fixed premium basis for all
other subscribers (an employee pay-all plan). The contributory dental plan is administered by Delta
Dental Plan of Massachusetts for a monthly administration fee based on the number of subscribers. The
voluntary dental plan is fully insured by Delta Dental Plan of Massachusetts.
- 46 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
The Group has a specific excess medical and prescription drug claims reinsurance contract with an
insurance carrier covering claims paid in excess of $150,000, and $150,000 per individual, to a lifetime
maximum amount payable of $2,000,000, and $2,000,000 at June 30, 2004 and 2003 respectively, for the
traditional medical indemnity, preferred provider organization (PPO), and exclusive provider organization
(EPO) plan contracts. The Group reinsures its Carveout A plan with a policy with a $50,000 specific
deductible. The Group no longer reinsures its Medex, Carveout A and B Plans, and Pilgrim Preferred 65
plans. The policy period covers claims incurred within twelve months and paid within twenty-four
months.
All refunds, surplus, and deficits are dealt with on a proportional and collective basis. In the case of a
certified surplus, the Board determines whether the excess funds will remain in the Board’s trust fund for
the purpose of reducing the participants’ future premium cost, or be distributed to the Participating
Governmental Units in proportion to the number of Participating Governmental Unit’s employees and
retirees covered under the contract purchased at the time the surplus was incurred. In the case of a
certified deficit, additional revenue will be raised and paid by the Participating Governmental Unit’s
employees and retirees covered under the contract, purchased at the time the deficit was incurred. Each
participant has to be part of the Group for two years before sharing surpluses.
The Group provides health care coverage for employees that qualify for and select health care coverage as
an employee benefit as well as retired employees. There are 209 Town of Brewster employees and 56
retirees who participate in the Group’s health care programs. The Town contributes 75% of the premium
cost for employees and 50% of the premium cost for retirees and surviving spouses.
As of June 30, 2004, the Cape Cod Municipal Health Group had total assets of $24,735,925 total
liabilities of $13,321,360 (including $12,628,780 in estimated benefits obligations) and a total surplus of
$11,414,565.
NOTE 11 – PENSION PLAN
A. Plan Descriptions
The Town contributes to the Barnstable County Contributory Retirement System (the “System”), a cost
sharing, multiple-employer, defined benefit pension plan administered by the Barnstable County
Retirement Board. Substantially all employees are members of the “System” except for public school
teachers and certain school administrators who are members of the Massachusetts Teachers’ Retirement
System (MTRS) to which the Town does not contribute.
The “System” and the MTRS are contributory defined benefit plans and membership in both the
“System” and the MTRS is mandatory upon commencement of employment for all permanent, full-time
employees. The “System” and the MTRS provide retirement, disability and death benefits to plan
members and beneficiaries.
Chapter 32 of the Massachusetts General Laws assigns authority to establish and amend benefit
provisions of the plan, and grant cost-of-living increases, to the State legislature. The “System” issues a
publicly available financial report, which can be obtained through the Commonwealth of Massachusetts,
Public Employee Retirement Administration Commission (“PERAC”), One Ashburton Place, Boston,
Massachusetts 02108.
- 47 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2004
- 48 -
B. Funding Policies
Barnstable County Contributory Retirement System
Plan members are required to contribute to the “System” at rates ranging from 5% to 11% of annual
covered compensation. The Town is required to pay into the “System”, its share of the remaining system-
wide, actuarially determined, contribution plus administration costs, which are apportioned among the
employers, based on active covered payroll. The Commonwealth of Massachusetts reimburses the
“system” for a portion of the benefit payments for the cost of living increases. The contributions to the
“System” for years ended June 30, 2004, 2003, and 2002 were $767,494, $641,378, and $628,868,
respectively, which were equal to its required contributions for each of these years.
Massachusetts Teachers’ Retirement System
Plan members (at varying rates of annual covered compensation) and the Commonwealth of
Massachusetts fund contributions to the MTRS. The Commonwealth of Massachusetts contributed “on-
behalf” payments to the MTRS totaling $247,909 for fiscal year 2004. In accordance with GASB
Statement No. 24, these on-behalf” payments have been recorded in the general fund as
intergovernmental revenues and pension expenditures.
NOTE 12 – COMMITMENTS AND CONTINGENCIES
The Town participates in a number of federal award programs. Although the grant programs have not
been audited in accordance with the provisions of the Single Audit Act Amendments of 1996 through
June 30, 2004, however, these programs may still be subject to financial and compliance audits in future
years. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be
determined at this time, although it is believed the amount, if any, would not be material.
The Town’s landfill was capped in 2000 by order of the Department of Environmental Protection (DEP).
The Town is responsible for post-closure monitoring of the site for thirty years (27 years remaining), and
the estimated liability has been recorded in the Statement of Net Assets, Governmental Activities. The
$1,350,000 reported as landfill post-closure liability at June 30, 2004 is based on what it would cost to
perform all post-closure care at June 30, 2004. Actual costs may be higher due to inflation, changes in
technology or changes in regulations.
Various legal actions and claims are pending. Litigation is subject to many uncertainties, and the outcome
of individual litigated matters is not always predictable. Although the amount of liability, if any, at June
30, 2004, cannot be ascertained, management believes any resulting liability should not materially affect
the financial position at June 30, 2004.
NOTE 13 – FUTURE IMPLEMENTATION OF GASB PRONOUNCEMENTS
The GASB issued Statement #40, Deposit and Investment Risk Disclosures, an amendment of GASB
Statement # 3, which is required to be implemented during FY2005. There will be no change in the
financial statements as this GASB will only require changes to the note disclosure.