HomeMy Public PortalAboutBrewster 2014 Report on the Examination of the Basic Financial Statements
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
TABLE OF CONTENTS
PAGE
Independent Auditor’s Report 1 - 2
Management’s Discussion and Analysis 3 – 10
Basic Financial Statements
Statement of Net Position 11
Statement of Activities 12 – 13
Governmental Funds – Balance Sheet 14
Governmental Funds – Statement of Revenues, Expenditures, and
Changes in Fund Balances
15
Reconciliation of the Governmental Funds Balance Sheet Total
Fund Balances to the Statement of Net Position
16
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
17
General Fund – Statement of Revenues, Expenditures, and
Changes in Fund Balance – Budget and Actual
18
Proprietary Funds - Statement of Net Position
Proprietary Funds – Statement of Revenues, Expenses, and
Changes in Fund Net Position
Proprietary Funds – Statements of Cash Flows
19
20
21
Fiduciary Funds – Statement of Fiduciary Net Position 22
Fiduciary Funds – Statement of Changes in Fiduciary Net Position 23
Notes to Basic Financial Statements 24– 57
Required Supplementary Information:
Retirement System Schedules of Funding Progress and Employer
Contributions
58
Other Postemployment Benefits – Schedules of Funding Progress and
Employer Contributions
59 – 60
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
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Town of Brewster,
Massachusetts as of and for the year ended June 30, 2014, and the related notes to the financial
statements, which collectively comprise the Town of Brewster, Massachusetts’s basic financial statements
as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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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,
2014, and the respective changes in financial position and, where applicable cash flows thereof for the
year then ended in accordance with accounting principles generally accepted in the United States of
America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, retirement system schedules of funding progress and employer contributions and
other post-employment benefits – schedules of funding progress and employer contributions on pages 3-
10, 58 and 59 – 60 be presented to supplement the basic financial statements. Such information, although
not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
R. E. Brown & Company
March 18, 2015
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Management’s Discussion and Analysis
As management of the Town of Brewster (the Town), we offer readers of the Town’s financial statements this
narrative overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2014.
We encourage readers to consider this information in addition to the statements and notes.
The Town complies with financial reporting requirements issued by the Governmental Accounting Standards
Board (GASB). GASB is the authoritative standard setting body that provides guidance on how to prepare
financial statements in conformity with accounting principles generally accepted in the United States of America
(GAAP). Users of these financial statements, such as investors and rating agencies, rely on the GASB to establish
consistent reporting standards for all governments in the United States. This consistent application is the only
way users can assess the financial condition of one government compared to others.
Financial Highlights
• The assets of the Town exceeded its liabilities at the close of the fiscal year by $88.4 million (net position).
Of this amount, $7.5 million is considered unrestricted (unrestricted net position).
• The unrestricted net position of the Town’s governmental activities are $3.0 million and may be used to meet
the government’s ongoing obligations to citizens and creditors. The unrestricted net position of the Town’s
business-type activities are $4.5 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 position increased by $1.120 million, or 1.28%, from fiscal 2013. Within this
total, net position of governmental activities increased by $478 thousand, a .67% increase from fiscal 2013.
Also, net position of business-type activities increased by $642 thousand or 4.04% from 2013.
• At June 30, 2014, the Town’s governmental funds had combined ending fund balances of $15.2 million. The
combined governmental funds balance decreased by $338thousand, a 2.17% decrease over the prior year’s
ending fund balances.
• The Town’s general fund reported a fund balance of $8.1 million at the end of fiscal 2014. The unassigned
fund balance for the general fund was $5.3 million or 13.77% of total general fund expenditures. A total of
$779 thousand of the assigned fund balance was designated for funding the fiscal year 2015 budget.
• The total cost of all Town services for fiscal 2014 was $43 million, $38 million of which was for
governmental activities, and $5 million of which was for business-type activities.
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Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements.
These basic financial statements are comprised of three components:
1. Government-wide Financial Statements
2. Fund Financial Statements
3. Notes to the Basic Financial Statements
Government-wide Financial Statements – The government-wide financial statements are designed to provide
readers with a broad overview of finances, in a manner similar to private-sector business.
The statement of net position presents information on all assets and liabilities, with the difference between the two
reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future periods, (e.g., uncollected taxes).
Both of the government-wide financial statements distinguish functions that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees or charges (business-type activities). The governmental
activities include general government, public safety, education, public works, human services, culture and
recreation, employee benefits, debt service, and state and county assessments. The business-type activities
include water and golf department services.
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. Fund accounting is used to ensure and
demonstrate compliance with finance related legal requirements. All of the funds can be divided into three main
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental Funds – governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental funds statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government’s near-term financing decisions. Both, the Governmental Funds Balance
Sheet and the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental activities.
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The Town of Brewster adopts an annual appropriated budget for its general fund. A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
Proprietary Funds – Enterprise funds are used to report the same functions presented as business-type activities
in the government-wide financial statements. The Town has two enterprise funds:
Water Enterprise Fund accounts for the water activity of the Town.
Golf Enterprise Fund accounts for the golf activity of the Town.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statements, as the resources of
those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is
much like that used for proprietary funds.
Private-purpose trust funds, postemployment benefits trust, and agency funds are each reported and combined into
a single, aggregate presentation in the fiduciary funds financial statements under the captions “private purpose
trust funds”, “postemployment benefits trust”, and “agency funds”, respectively.
Notes to the basic financial statements – The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Government-wide Financial Analysis:
The chart on the following page summarizes key financial components of the Town’s financial statements.
As noted earlier, assets exceed liabilities by $88,426,511 at the close of fiscal year 2014. The Town is able to
report positive balances in all categories of net position, both for the government as a whole, and for its separate
governmental and business-type activities.
The largest component of the Town’s net position are its investment in capital assets (e.g., land, buildings,
machinery, and equipment), less any related outstanding debt used to acquire those assets, and is $70,575,766, or
80% of total net position. The Town uses these capital assets to provide services to citizens; consequently, these
assets are not available for future spending. Although the investment in the Town’s capital assets is reported net
of its related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the net position totaling $10,374,490 (12% of total) represents resources that are subject
to external restrictions on how they may be used. The remaining balance of unrestricted net position totaling
$7,476,255 (8.0% of total) may be used to meet the government’s ongoing obligations to its citizens and creditors.
The Town decreased its total liabilities by $2,514,214 over fiscal 2013, while total net position increased by
$1,119,761 or 1.27%. Net position of governmental activities increased by $477,639, a .66% increase from fiscal
2013. Net position of business-type activities increased by $642,122 or 4.0% from 2013. There was an increase
of $252,180 in net position reported in connection with the water business-type activity, and an increase of
$389,942 in net position in connection with the golf department business-type activity, respectively.
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Increase Increase Increase
FY 2014 FY 2013 (Decrease)FY 2014 FY 2013 (Decrease)FY 2014 FY 2013 (Decrease)
Assets:
Current assets 19,143,220$ 20,427,175$ (1,283,955)$ 5,397,803$ 5,419,789$ (21,986)$ 24,541,023$ 25,846,964$ (1,305,941)$
Noncurrent assets (excluding capital)534,073 1,192,206 (658,133) 41,162 47,766 (6,604) 575,235 1,239,972 (664,737)
Capital assets 65,213,528 64,137,133 1,076,395 21,969,423 22,469,593 (500,170) 87,182,951 86,606,726 576,225
Total assets 84,890,821 85,756,514 (865,693) 27,408,388 27,937,148 (528,760) 112,299,209 113,693,662 (1,394,453)
Liabilities:
Current liabilities (excluding debt)1,775,895 1,999,029 (223,134) 126,834 217,536 (90,702) 1,902,729 2,216,565 (313,836)
Noncurrent liabilities (excluding debt)4,469,317 4,524,856 (55,539) 758,307 782,328 (24,021) 5,227,624 5,307,184 (79,560)
Current debt 1,319,895 2,118,191 (798,296) 1,112,890 3,800,801 (2,687,911) 2,432,785 5,918,992 (3,486,207)
Noncurrent debt 5,419,048 5,685,411 (266,363) 8,890,512 7,258,760 1,631,752 14,309,560 12,944,171 1,365,389
Total liabilities 12,984,155 14,327,487 (1,343,332) 10,888,543 12,059,425 (1,170,882) 23,872,698 26,386,912 (2,514,214)
Net Position:
Net investment in capital assets 58,561,979 57,249,869 1,312,110 12,013,787 11,590,206 423,581 70,575,766 68,840,075 1,735,691
Restricted 10,374,490 9,669,977 704,513 - - - 10,374,490 9,669,977 704,513
Unrestricted 2,970,197 4,509,181 (1,538,984) 4,506,058 4,287,517 218,541 7,476,255 8,796,698 (1,320,443)
Total net position 71,906,666$ 71,429,027$ 477,639$ 16,519,845$ 15,877,723$ 642,122$ 88,426,511$ 87,306,750$ 1,119,761$
Revenues
Program Revenues:
Charges for services 1,745,534$ 1,919,538$ (174,004)$ 5,983,569$ 6,099,091$ (115,522)$ 7,729,103$ 8,018,629$ (289,526)$
Operating grants and contributions 3,967,541 3,552,352 415,189 78,417 138,547 (60,130) 4,045,958 3,690,899 355,059
Capital grants and contributions 721,237 1,012,609 (291,372) - - - 721,237 1,012,609 (291,372)
General Revenues:
Real Estate and personal property taxes 26,888,922 25,567,487 1,321,435 - - - 26,888,922 25,567,487 1,321,435
Tax Liens 115,054 33,778 81,276 - - - 115,054 33,778 81,276
Motor vehicle and other excise taxes 1,306,972 1,230,780 76,192 - - - 1,306,972 1,230,780 76,192
Hotel/Motel Tax 1,261,973 1,145,466 116,507 - - - 1,261,973 1,145,466 116,507
Penalties and interest on taxes 127,868 151,331 (23,463) - - - 127,868 151,331 (23,463)
Payments in Lieu of Taxes 6,870 6,861 9 - - - 6,870 6,861 9
Nonrestricted grants and contributions 2,245,022 1,869,186 375,836 - - - 2,245,022 1,869,186 375,836
Unrestricted investment income 30,102 32,617 (2,515) - - - 30,102 32,617 (2,515)
Other revenues 79,906 68,041 11,865 - - - 79,906 68,041 11,865
Total Revenues 38,497,001 36,590,046 1,906,955 6,061,986 6,237,638 (175,652) 44,558,987 42,827,684 1,731,303
Expenses:
General Government 3,349,320 3,123,871 225,449 - - - 3,349,320 3,123,871 225,449
Public Safety 5,675,687 5,485,380 190,307 - - - 5,675,687 5,485,380 190,307
Education 17,944,981 16,891,619 1,053,362 - - - 17,944,981 16,891,619 1,053,362
Public Works 2,301,803 2,250,929 50,874 - - - 2,301,803 2,250,929 50,874
Human Services 694,271 654,485 39,786 - - - 694,271 654,485 39,786
Culture and Recreation 984,429 780,351 204,078 - - - 984,429 780,351 204,078
Employee Benefits 6,867,537 6,431,594 435,943 - - - 6,867,537 6,431,594 435,943
State and County Assessments 516,612 564,764 (48,152) - - - 516,612 564,764 (48,152)
Interest 260,727 301,415 (40,688) - - - 260,727 301,415 (40,688)
Golf - - - 3,000,116 3,118,027 (117,911) 3,000,116 3,118,027 (117,911)
Water - - - 1,847,968 1,722,944 125,024 1,847,968 1,722,944 125,024
Total Expenses 38,595,367 36,484,408 2,110,959 4,848,084 4,840,971 7,113 43,443,451 41,325,379 2,118,072
Increase/(Decrease) in Net Position before contributions
to permanent endowments and transfers (98,366) 105,638 (204,004) 1,213,902 1,396,667 (182,765) 1,115,536 1,502,305 (386,769)
Contributions to permanent endowments 4,225 4,950 9,175 - - - 4,225 4,950 9,175
Transfers 571,780 479,573 92,207 (571,780) (479,573) (92,207) - - -
Change in Net Position 477,639 590,161 (102,622) 642,122 917,094 (274,972) 1,119,761 1,507,255 (377,594)
Net Position - beginning 71,429,027 70,838,866 590,161 15,877,723 14,960,629 917,094 87,306,750 85,799,495 1,507,255
Net Position - ending 71,906,666$ 71,429,027$ 477,639$ 16,519,845$ 15,877,723$ 642,122$ 88,426,511$ 87,306,750$ 1,119,761$
Town of Brewster - Financial Highlights
Total
Governmental Business-type Primary
Activities Activities Government
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Financial analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds – The focus of governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year, governmental funds reported combined ending fund balances of
$15,245,735 a $337,940 decrease from the prior year’s ending fund balance.
The general fund is the primary operating fund. At the end of the current fiscal year, unassigned fund balance of
the general fund was $5,295,269, while total fund balance stood at $8,148,137. As a measure of the general
fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 14% of total general fund expenditures, while total fund
balance represents 21% of that same amount.
The stabilization fund has accumulated a fund balance of $2,121,956 which represents 5.52% of general fund
expenditures. The funds can be used for general or capital purposes upon Town Meeting approval.
General Fund Budget Highlights
During the fiscal year the operating budget was amended by $1,349,544 (at two Special Town Meetings) to fund
prior year’s unpaid bills, fire and police department expenses, education expenses, school building capital
improvements, general government equipment and expenses and public works equipment and expenses. The
Town budgeted $32.6 million in revenues and $38 million in expenditures, drawing on transfers and prior year’s
surplus to finance the difference. At year end, $378,850 of unexpended appropriation balances was closed out to
unassigned fund balance.
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Capital Asset and Debt Administration
Capital Assets - In conjunction with the operating budget, the Town annually prepares capital budgets for the
upcoming fiscal year.
The Town’s investment in capital assets for governmental and business type activities, as summarized below, as
of June 30, 2014, amounts to $87,182,951 net of accumulated depreciation. The investment in capital assets
includes land, buildings and improvements, capital improvements (other than buildings), machinery, equipment
and vehicles, infrastructure, and construction in progress.
The governmental activities capital assets (net of accumulated depreciation) were increased by $1,076,395 during
the current fiscal year while the business-type activities capital assets (net of accumulated depreciation) decreased
by ($500,170) Total depreciation was $2.6 million, resulting in a total government-wide increase to capital assets
(net of accumulated depreciation) of $576,225.
Increase Increase
FY 2014 FY 2013 (Decrease)FY 2014 FY 2013 (Decrease)FY 2014 FY 2013
Land 38,562,192$ 37,877,192$ 685,000$ 2,874,212$ 2,874,212$ -$ 41,436,404$ 40,751,404$
Construction in Progress 224,693 623,632 (398,939) - 2,874,425 (2,874,425) 224,693 3,498,057
38,786,885 38,500,824 286,061 2,874,212 5,748,637 (2,874,425) 41,661,097 44,249,461
Buildings and improvements 13,985,085 14,366,324 (381,239) 4,418,356 4,559,805 (141,449) 18,403,441 18,926,129
Improvements (other than buildings)2,361,803 1,597,201 764,602 - - - 2,361,803 1,597,201
Machinery, Equipment, and Vehicles 3,643,586 3,741,921 (98,335) 802,884 827,120 (24,236) 4,446,470 4,569,041
Infrastructure 6,436,169 5,930,863 505,306 13,873,971 11,334,031 2,539,940 20,310,140 17,264,894
26,426,643 25,636,309 790,334 19,095,211 16,720,956 2,374,255 45,521,854 42,357,265
Total Capital Assets 65,213,528$ 64,137,133$ 1,076,395$ 21,969,423$ 22,469,593$ (500,170)$ 87,182,951$ 86,606,726$
Activities Activities Government
Capital Assets
(Net of Depreciation)
Total
Governmental Business-type Primary
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Long Term Debt - The Town’s debt burden is reasonable in relation to other communities its size. Outstanding
long-term debt, as of June 30, 2014 totaled $15,771,238. Within this total, business-type activities have debt of
$9,848,597 that is fully supported by their respective program revenues, and governmental activities debt is
$5,922,641. Total debt consists of the following:
Outstanding Outstanding
Governmental Activities June 30, 2014 June 30, 2013
Land Purchase - Copelas 660,000$ -$
Road Betterments - Prell Circle 67,331 -
Road Betterments - Allen Drive 83,185 -
School Construction 800,000 1,220,000
Library Construction 100,000 150,000
MWPAT Title V - Sewer 99,525 109,050
Punkhorn Land Acquisition - 6/30/11 570,000 605,000
Heights Road Betterments - 6/30/11 160,000 185,000
Lane Road Betterments - 6/30/11 55,000 65,000
Police Station 1,010,000 1,180,000
Road Betterments - Commons Way Rd - 20,000
Road Betterments - Meetinghouse Rd - 25,000
MWPAT #97-1156 Title V - Sewer 72,600 83,000
Land Purchase 425,000 490,000
Road Betterments - Kings Grant Road 60,000 90,000
Road Betterments - Barons Way Road 30,000 45,000
Land Purchase 1,565,000 1,695,000
Road Betterments - Fiddler's Lane 45,000 60,000
Road Betterments - Herringbrook Lane 30,000 40,000
Road Betterments - 2008 90,000 115,000
Total Governmental Activities 5,922,641$ 6,177,050$
Outstanding Outstanding
Business-type Activities June 30, 2014 June 30, 2013
Golf Course 4,085,000$ 4,645,000$
Golf Course Irrigation - 100,000
WELL #6 & WATER MAIN - 2,678,597 -
Water offices/garage 1,725,000 1,850,000
Water Mains 890,000 1,040,000
Standpipe Rehabilitation - 70,000
Slough Road 430,000 470,000
Water Betterments - Fiddler's Lane 40,000 45,000
Total Business-type Activities 9,848,597$ 8,220,000$
Grand Total - All long-term debt 15,771,238$ 14,397,050$
Outstanding Debt at Year End
Please refer to Notes 5 and 9 for further discussion of the major capital asset and debt activity.
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Economic Factors and Next Year’s Budgets & Rate
The Town’s leadership (elected and appointed officials) considered many factors when setting the fiscal 2015
budget and tax rates including the following:
• The Fiscal 2015 tax rate was set at $8.26, a $.08 cent increase over Fiscal 2014. The excess levy capacity was
$31,220.
• The Board of Selectmen voted during their classification hearing to maintain the same tax rate for all classes
of property.
• Fiscal 2015 budgetary issues were Health Care Reform, Pension obligations, and State Aid for both the Town
and Nauset Regional School District,
• The Nauset Regional School District received approval from the Massachusetts School Building Authority for
the Replacement of Roof and Windows at the Regional High School. The project was completed at a cost of
$4.8 million with the Green Repair Program Grant award of $1.7 million.
• The Nauset Regional School District received Grant approval from the Massachusetts School Building
Authority for a Roof Replacement Project for the Regional Middle School for Fiscal 2015. The project is
estimated at $2.4 million with the MSBA contributing approximately $900 thousand dollars. This project
received voter approval and a Proposition 2 ½ override.
• GASB45/OPEB Funding: Brewster Invested $1,123,000 with the HSCB and is committed to an annual
contribution. The Fiscal 2014 contribution was $25,000, increasing to $50,000 in Fiscal 2015 and $75,000 in
Fiscal 2016.
• Brewster has been awarded $200,000 in Grant funds from Coastal Zone Management for a Coastal Resilience
Study of the sand volumes and movement along the shoreline to identify resilient and vulnerable coastal
landforms and other natural systems at risk of erosion and sea level rise impacts.
• Coastal Zone Management also awarded Brewster a $155,000 Green Infrastructure for Coastal Resilience
Pilot Grant. These funds are for the removal of a parking lot at Breakwater Landing, restoration of dune
habitat, providing a seasonal boardwalk and relocation of 30 parking spaces to a less vulnerable location.
• The Water Department secured $971,000 in funding for a Route 6A Infrastructure Project
• Approximately $301,890 of Chapter 90 Highway Funds was expended for local roadway repairs and
construction during Fiscal 2014, approximately $450,000 Chapter 90 Highway Funds will be expended in
Fiscal 2015 and an estimated $479,000 in Chapter 90 funding is expected for Fiscal 2016.
• Fiscal 2015 Major Town Capital Projects: A $3,330,000 Roof and HVAC system for the Elementary School
received voter approval via a Proposition 2 ½ override. Construction will be completed by June 30, 2015.
• Fiscal 2015Community Preservation Projects include funding for the Baptist Church Steeple Restoration,
Recreation Fields Repairs, Land Acquisition, Playground Installation and Affordable Housing.
Request for Information
This financial report is designed to provide a general overview of the Town of Brewster’s finances for all those
with an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Finance Director, 2198 Main
Street, Brewster, MA 02631.
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GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 16,591,798$ 4,435,778$ 21,027,576$
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 424,825 - 424,825
TAX LIENS 445,218 - 445,218
MOTOR VEHICLE EXCISE TAXES 79,506 - 79,506
USER FEES - 955,421 955,421
DEPARTMENTAL AND OTHER 265,608 - 265,608
INTERGOVERNMENTAL 1,219,700 - 1,219,700
SPECIAL ASSESSMENTS 106,907 5,835 112,742
DEFERRED AMOUNT ON REFUNDING 9,658 769 10,427
NONCURRENT:
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
SPECIAL ASSESSMENTS 521,337 37,314 558,651
DEFERRED AMOUNT ON REFUNDING 12,736 3,848 16,584
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 65,213,528 21,969,423 87,182,951
TOTAL ASSETS 84,890,821 27,408,388 112,299,209
LIABILITIES
CURRENT:
ACCOUNTS PAYABLE 1,715,011 37,626 1,752,637
ACCRUED INTEREST 41,384 89,208 130,592
LANDFILL POSTCLOSURE CARE COSTS 19,500 - 19,500
CAPITAL LEASES 179,454 59,293 238,747
BONDS AND NOTES PAYABLE 1,140,441 1,053,597 2,194,038
NONCURRENT:
LANDFILL POSTCLOSURE CARE COSTS 380,000 - 380,000
POSTEMPLOYMENT BENEFITS 4,089,317 758,307 4,847,624
CAPITAL LEASES 571,848 95,512 667,360
BONDS AND NOTES PAYABLE 4,847,200 8,795,000 13,642,200
TOTAL LIABILITIES 12,984,155 10,888,543 23,872,698
NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 58,561,979 12,013,787 70,575,766
RESTRICTED FOR:
STREETS 424,024 - 424,024
PERMANENT FUNDS:
EXPENDABLE 117,508 - 117,508
NONEXPENDABLE 141,613 - 141,613
OTHER PURPOSES 9,691,345 - 9,691,345
UNRESTRICTED 2,970,197 4,506,058 7,476,255
TOTAL NET POSITION 71,906,666$ 16,519,845$ 88,426,511$
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2014
PRIMARY GOVERNMENT
See accompanying notes to the basic financial statements
- 11 -
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND NET (EXPENSE)
FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT:
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT 3,349,320$ 256,601$ 337,095$ 25,000$ (2,730,624)$
PUBLIC SAFETY 5,675,687 388,946 990,130 3,063 (4,293,548)
EDUCATION 17,944,981 127,336 1,078,548 - (16,739,097)
PUBLIC WORKS 2,301,803 532,322 66,839 683,549 (1,019,093)
HUMAN SERVICES 694,271 69,897 70,441 9,625 (544,308)
CULTURE & RECREATION 984,429 370,432 213,685 - (400,312)
EMPLOYEE BENEFITS 6,867,537 - 1,210,803 - (5,656,734)
STATE & COUNTY ASSESSMENTS 516,612 - - - (516,612)
INTEREST 260,727 - - - (260,727)
TOTAL GOVERNMENTAL ACTIVITIES 38,595,367 1,745,534 3,967,541 721,237 (32,161,055)
BUSINESS-TYPE ACTIVITIES:
GOLF 3,000,116 3,563,483 15,878 - 579,245
WATER 1,847,968 2,420,086 62,539 - 634,657
TOTAL BUSINESS-TYPE ACTIVITIES 4,848,084 5,983,569 78,417 - 1,213,902
TOTAL PRIMARY GOVERNMENT 43,443,451$ 7,729,103$ 4,045,958$ 721,237$ (30,947,153)$
(continued)
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2014
PROGRAM REVENUES
See accompanying notes to the basic financial statements
- 12 -
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
CHANGES IN NET POSITION:
NET (EXPENSE) REVENUE FROM PREVIOUS PAGE (32,161,055)$ 1,213,902$ (30,947,153)$
GENERAL REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS PAYABLE 26,888,922 - 26,888,922
TAX LIENS 115,054 - 115,054
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,306,972 - 1,306,972
HOTEL/MOTEL & MEALS TAX 1,261,973 - 1,261,973
PENALTIES AND INTEREST ON TAXES 127,868 - 127,868
PAYMENTS IN LIEU OF TAXES 6,870 - 6,870
GRANTS AND CONTRIBUTIONS NOT RESTRICTED
TO SPECIFIC PROGRAMS 2,245,022 - 2,245,022
UNRESTRICTED INVESTMENT INCOME 30,102 - 30,102
CONTRIBUTIONS TO PERMANENT FUNDS 4,225 - 4,225
MISCELLANEOUS 79,906 - 79,906
TRANSFERS, NET 571,780 (571,780) -
TOTAL GENERAL REVENUES AND TRANSFERS 32,638,694 (571,780) 32,066,914
CHANGE IN NET POSITION 477,639 642,122 1,119,761
NET POSITION:
BEGINNING OF YEAR 71,429,027 15,877,723 87,306,750
END OF YEAR 71,906,666$ 16,519,845$ 88,426,511$
(concluded)
TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2014
PRIMARY GOVERNMENT
See accompanying notes to the basic financial statements
- 13 -
TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2014
NONMAJOR TOTAL
COMMUNITY GOVERNMENTAL GOVERNMENTAL
ASSETS GENERAL PRESERVATION FUNDS FUNDS
CASH AND SHORT-TERM INVESTMENTS 9,491,509$ 4,272,648$ 2,827,641$ 16,591,798$
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 424,825 - - 424,825
TAX LIENS 445,218 - - 445,218
MOTOR VEHICLE EXCISE TAXES 79,506 - - 79,506
DEPARTMENTAL AND OTHER 373 20,767 244,468 265,608
INTERGOVERNMENTAL 544,696 - 675,004 1,219,700
SPECIAL ASSESSMENTS - - 628,244 628,244
TOTAL ASSETS 10,986,127$ 4,293,415$ 4,375,357$ 19,654,899$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
LIABILITIES:
ACCOUNTS PAYABLE 1,526,340$ 7,095$ 181,576$ 1,715,011$
NOTES PAYABLE - - 65,000 65,000
TOTAL LIABILITIES 1,526,340 7,095 246,576 1,780,011
DEFFERRED INFLOWS OF RESOURCES:
DEFERRED PROPERTY TAXES 766,581 20,767 - 787,348
DEFERRED INTERGOVERNMENTAL REVENUE 544,696 - 424,024 968,720
DEFERRED OTHER REVENUE 373 - 872,712 873,085
TOTAL DEFERRED INFLOWS OF RESOURCES 1,311,650 20,767 1,296,736 2,629,153
FUND BALANCES:
NONSPENDABLE - - 141,613 141,613
RESTRICTED - 4,265,553 2,979,047 7,244,600
COMMITTED 1,835,000 - - 1,835,000
ASSIGNED 1,017,868 - - 1,017,868
UNASSIGNED 5,295,269 - (288,615) 5,006,654
TOTAL FUND BALANCES 8,148,137 4,265,553 2,832,045 15,245,735
TOTAL LIABILITIES, DEFERRED INFLOW OF RESOURCES
AND FUND BALANCES 10,986,127$ 4,293,415$ 4,375,357$ 19,654,899$
See accompanying notes to the basic financial statements
- 14 -
NONMAJOR TOTAL
COMMUNITY GOVERNMENTAL GOVERNMENTAL
GENERAL PRESERVATION FUNDS FUNDS
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 26,927,675$ -$ -$ 26,927,675$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,338,163 - - 1,338,163
INTERGOVERNMENTAL 3,608,875 476,816 685,821 4,771,512
PAYMENTS IN LIEU OF TAXES 6,870 - - 6,870
PENALTIES & INTEREST ON TAXES 100,203 - - 100,203
FINES & FORFEITS 39,571 - - 39,571
CHARGES FOR SERVICES 542,728 - 1,482,797 2,025,525
HOTEL/MOTEL & MEALS TAX 1,261,973 - - 1,261,973
INVESTMENT INCOME 29,680 6,551 97,253 133,484
CONTRIBUTIONS AND DONATIONS - - 73,588 73,588
DEPARTMENTAL AND OTHER 1,099,020 824,777 464,674 2,388,471
TOTAL REVENUES 34,954,758 1,308,144 2,804,133 39,067,035
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 3,053,128 849,051 185,290 4,087,469
PUBLIC SAFETY 5,561,366 - 214,534 5,775,900
EDUCATION 17,477,265 112,023 344,795 17,934,083
PUBLIC WORKS 2,162,044 3,250 574,602 2,739,896
HUMAN SERVICES 608,472 - 55,796 664,268
CULTURE & RECREATION 782,338 - 187,896 970,234
EMPLOYEE BENEFITS 6,959,570 - 37,506 6,997,076
STATE & COUNTY ASSESSMENTS 516,612 - - 516,612
DEBT SERVICE
PRINCIPAL 1,064,925 - - 1,064,925
INTEREST 260,725 - 1,083 261,808
TOTAL EXPENDITURES 38,446,445 964,324 1,601,502 41,012,271
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (3,491,687) 343,820 1,202,631 (1,945,236)
OTHER FINANCING SOURCES (USES)
PROCEEDS FROM BONDS AND NOTES - 660,000 150,516 810,516
PROCEEDS FROM CAPITAL LEASES 225,000 - - 225,000
OPERATING TRANSFERS IN 2,498,529 - 315,704 2,814,233
OPERATING TRANSFERS OUT (315,704) (347,670) (1,579,079) (2,242,453)
TOTAL OTHER FINANCING SOURCES (USES)2,407,825 312,330 (1,112,859) 1,607,296
NET CHANGE IN FUND BALANCES (1,083,862) 656,150 89,772 (337,940)
FUND BALANCES AT BEGINNING OF YEAR 9,231,999 3,609,403 2,742,273 15,583,675
FUND BALANCES AT END OF YEAR 8,148,137$ 4,265,553$ 2,832,045$ 15,245,735$
TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2014
See accompanying notes to the basic financial statements
- 15 -
TOTAL GOVERNMENTAL FUND BALANCES 15,245,735$
CAPITAL ASSETS (NET) USED IN GOVERNMENTAL ACTIVITIES ARE NOT FINANCIAL RESOURCES
AND, THEREFORE, ARE NOT REPORTED IN THE FUNDS 65,213,528
ACCOUNTS RECEIVABLE ARE NOT AVAILABLE TO PAY FOR CURRENT-PERIOD
EXPENDITURES AND, THEREFORE, ARE DEFERRED IN THE FUNDS 2,629,153
IN THE STATEMENT OF ACTIVITIES, INTEREST IS ACCRUED ON OUTSTANDING LONG-TERM DEBT,
WHEREAS IN GOVERNMENTAL FUNDS INTEREST IS NOT REPORTED UNTIL DUE (41,384)
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 (5,922,641)
CAPITAL LEASES (751,302)
DEFERRED AMOUNT ON REFUNDING 22,394
POSTEMPLOYMENT BENEFITS (4,089,317)
LANDFILL POSTCLOSURE CARE COSTS (399,500)
NET EFFECT OF REPORTING LONG-TERM LIABILITIES (11,140,366)
NET POSITION OF GOVERNMENTAL ACTIVITIES 71,906,666$
TOWN OF BREWSTER, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION
JUNE 30, 2014
See accompanying notes to the basic financial statements
- 16 -
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (337,940)$
GOVERNMENTAL FUNDS REPORT CAPITAL OUTLAYS AS EXPENDITURES. HOWEVER, IN THE
STATEMENT OF ACTIVITIES THE COST OF THOSE ASSETS IS ALLOCATED OVER THEIR
ESTIMATED USEFUL LIVES AND REPORTED AS DEPRECIATION EXPENSE.
CAPITAL OUTLAY 2,879,795
DEPRECIATION EXPENSE (1,803,400)
NET EFFECT OF REPORTING CAPITAL ASSETS 1,076,395
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 (565,809)
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 (810,516)
PROCEEDS FROM CAPITAL LEASES (225,000)
DEBT SERVICE PRINCIPAL PAYMENTS 1,064,925
CAPITAL LEASE - PRINCIPAL PAYMENTS 215,964
DEFERRED AMOUNT ON REFUNDING (9,658)
NET EFFECT OF REPORTING LONG-TEM DEBT 235,715
SOME EXPENSES REPORTED IN THE STATEMENT OF ACTIVITIES DO NOT REQUIRE THE USE OF
CURRENT FINANCIAL RESOURCES AND, THEREFORE, ARE NOT REPORTED AS EXPENDITURES
IN THE GOVERNMENTAL FUNDS.
NET CHANGE IN POSTEMPLOYMENT BENEFITS 129,539
NET CHANGE IN LANDFILL POSTCLOSURE CARE ACCRUAL (71,000)
NET CHANGE IN ACCRUED INTEREST ON LONG-TERM DEBT 10,739
NET EFFECT OF RECORDING LONG-TERM LIABILITIES 69,278
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 477,639$
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, 2014
See accompanying notes to the basic financial statements
- 17 -
ACTUAL
ORIGINAL FINAL BUDGETARY VARIANCE
BUDGET BUDGET AMOUNTS OVER(UNDER)
REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS 26,718,415$ 26,718,415$ 26,927,675$ 209,260$
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,125,000 1,125,000 1,338,163 213,163
INTERGOVERNMENTAL 2,355,256 2,355,256 2,409,884 54,628
PAYMENTS IN LIEU OF TAXES 6,800 6,800 6,870 70
PENALTIES & INTEREST ON TAXES 85,000 85,000 100,203 15,203
FINES & FORFEITS 16,400 16,400 39,571 23,171
HOTEL/MOTEL & MEALS TAX 1,085,000 1,085,000 1,261,973 176,973
INVESTMENT INCOME 20,000 20,000 21,648 1,648
DEPARTMENTAL AND OTHER 1,163,422 1,163,422 1,641,748 478,326
TOTAL REVENUES 32,575,293 32,575,293 33,747,735 1,172,442
EXPENDITURES:
CURRENT:
GENERAL GOVERNMENT 3,412,901 3,838,300 3,757,849 80,451
PUBLIC SAFETY 5,414,821 5,778,351 5,676,103 102,248
EDUCATION 17,622,147 17,959,626 17,956,044 3,582
PUBLIC WORKS 2,230,730 2,388,331 2,432,669 (44,338)
HUMAN SERVICES 590,636 646,236 627,573 18,663
CULTURE & RECREATION 828,741 834,021 831,649 2,372
EMPLOYEE BENEFITS 4,697,262 4,697,262 4,650,938 46,324
STATE & COUNTY ASSESSMENTS 563,741 563,741 516,612 47,129
DEBT SERVICE
PRINCIPAL 1,064,925 1,064,925 1,064,925 -
INTEREST 246,446 251,101 251,100 1
TOTAL EXPENDITURES 36,672,350 38,021,894 37,765,462 256,432
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (4,097,057) (5,446,601) (4,017,727) 1,428,874
OTHER FINANCING SOURCES (USES):
OPERATING TRANSFERS IN 1,597,577 2,092,913 2,498,529 405,616
OPERATING TRANSFERS OUT (207,827) (412,983) (315,704) 97,279
TOTAL OTHER FINANCING SOURCES (USES)1,389,750 1,679,930 2,182,825 502,895
NET CHANGE IN FUND BALANCE (2,707,307) (3,766,671) (1,834,902) 1,931,769
BUDGETARY FUND BALANCE, BEGINNING OF YEAR 5,918,709 5,918,709 5,918,709 -
BUDGETARY FUND BALANCE, END OF YEAR 3,211,402$ 2,152,038$ 4,083,807$ 1,931,769$
TOWN OF BREWSTER, MASSACHUSETTS
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2014
BUDGETED AMOUNTS
See accompanying notes to the basic financial statements
- 18 -
ASSETS GOLF WATER TOTAL
CURRENT:
CASH AND SHORT-TERM INVESTMENTS 1,135,411$ 3,300,367$ 4,435,778$
USER FEES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:- 955,421 955,421
SPECIAL ASSESSMENTS - 5,835 5,835
DEFERRED AMOUNT ON REFUNDING - 769 769
TOTAL CURRENT ASSETS 1,135,411 4,262,392 5,397,803
NONCURRENT:
SPECIAL ASSESSMENTS - 37,314 37,314
DEFERRED AMOUNT ON REFUNDING - 3,848 3,848
CAPITAL ASSETS, NET OF ACCUMULATED DEPRECIATION 9,336,564 12,632,859 21,969,423
TOTAL NONCURRENT ASSETS 9,336,564 12,674,021 22,010,585
TOTAL ASSETS 10,471,975 16,936,413 27,408,388
LIABILITIES
CURRENT:
ACCOUNTS PAYABLE - 37,626 37,626
ACCRUED INTEREST 63,067 26,141 89,208
CAPITAL LEASES PAYABLE 59,293 - 59,293
BONDS AND NOTES PAYABLE 595,000 458,597 1,053,597
TOTAL CURRENT LIABILITIES 717,360 522,364 1,239,724
NONCURRENT:
POSTEMPLOYMENT BENEFITS 525,450 232,857 758,307
CAPITAL LEASES PAYABLE 95,512 - 95,512
BONDS AND NOTES PAYABLE 3,490,000 5,305,000 8,795,000
TOTAL NONCURRENT LIABILITIES 4,110,962 5,537,857 9,648,819
TOTAL LIABILITIES 4,828,322 6,060,221 10,888,543
NET POSITION
NET INVESTMENT IN CAPITAL ASSETS 5,096,759 6,917,028 12,013,787
UNRESTRICTED 546,894 3,959,164 4,506,058
TOTAL NET POSITION 5,643,653$ 10,876,192$ 16,519,845$
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2014
BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 19 -
GOLF WATER TOTAL
OPERATING REVENUES:
CHARGES FOR SERVICES 3,563,483$ 2,420,086$ 5,983,569$
DEPARTMENTAL AND OTHER 15,878 62,539 78,417
TOTAL OPERATING REVENUES 3,579,361 2,482,625 6,061,986
OPERATING EXPENSES:
GENERAL SERVICES 2,368,924 1,333,303 3,702,227
DEPRECIATION 422,658 358,287 780,945
TOTAL OPERATING EXPENSES 2,791,582 1,691,590 4,483,172
OPERATING INCOME (LOSS)787,779 791,035 1,578,814
NON-OPERATING REVENUES (EXPENSES):
INTEREST EXPENSE (208,534) (156,378) (364,912)
INCOME (LOSS) BEFORE OPERATING TRANSFERS 579,245 634,657 1,213,902
OPERATING TRANSFERS:
OPERATING TRANSFERS OUT (189,303) (382,477) (571,780)
CHANGE IN NET POSITION 389,942 252,180 642,122
NET POSITION AT BEGINNING OF YEAR 5,253,711 10,624,012 15,877,723
NET POSITION AT END OF YEAR 5,643,653$ 10,876,192$ 16,519,845$
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FISCAL YEAR ENDED JUNE 30, 2014
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 20 -
TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2014
GOLF WATER TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES:
RECEIPTS FROM CUSTOMERS AND USERS 3,579,362$ 2,558,857$ 6,138,219$
PAYMENTS TO SUPPLIERS (1,183,733) (691,019) (1,874,752)
PAYMENTS TO EMPLOYEES (1,201,837) (652,186) (1,854,023)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,193,792 1,215,652 2,409,444
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
OPERATING TRANSFERS OUT (189,303) (382,477) (571,780)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
PROCEEDS FROM THE ISSUANCE OF BONDS AND NOTES - (29,775) (29,775)
PRINCIPAL PAYMENTS ON BONDS AND NOTES (660,000) (390,000) (1,050,000)
PRINCIPAL PAYMENTS ON CAPITAL LEASES (60,581) - (60,581)
ACQUISITION AND CONSTRUCTION OF CAPITAL ASSETS - (273,071) (273,071)
INTEREST EXPENSE (219,200) (156,626) (375,826)
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (939,781) (849,472) (1,789,253)
NET INCREASE (DECREASE) IN CASH AND SHORT TERM INVESTMENTS 64,708 (16,297) 48,411
CASH AND SHORT TERM INVESTMENTS - BEGINNING OF YEAR 1,070,703 3,316,664 4,387,367
CASH AND SHORT TERM INVESTMENTS- END OF YEAR 1,135,411$ 3,300,367$ 4,435,778$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
OPERATING INCOME (LOSS)787,779$ 791,035$ 1,578,814$
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 422,658 358,287 780,945
(INCREASE) DECREASE IN ACCOUNTS RECEIVABLE - 76,231 76,231
INCREASE (DECREASE) IN ACCOUNTS PAYABLE - (2,525) (2,525)
INCREASE (DECREASE) IN POSTEMPLOYMENT BENEFITS (16,645) (7,376) (24,021)
TOTAL ADJUSTMENTS 406,013 424,617 830,630
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 1,193,792$ 1,215,652$ 2,409,444$
BUSINESS TYPE ACTIVITIES - ENTERPRISE FUNDS
See accompanying notes to the basic financial statements
- 21 -
TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2014
POSTEMPLOYMENT PRIVATE
BENEFITS PURPOSE AGENCY
TRUST TRUST FUNDS FUNDS
ASSETS
CASH AND SHORT-TERM INVESTMENTS -$ 61,106$ 64,967$
INVESTMENTS 1,161,457 - -
TOTAL ASSETS 1,161,457 61,106 64,967
LIABILITIES
ACCOUNTS PAYABLE - - 11,279
OTHER LIABILITIES - - 53,688
TOTAL LIABILITIES - - 64,967
NET POSITION
NET POSITION - HELD IN TRUST FOR OPEB AND OTHER PURPOS 1,161,457$ 61,106$ -$
See accompanying notes to the basic financial statements
- 22 -
POSTEMPLOYMENT PRIVATE
BENEFITS PURPOSE
TRUST TRUST FUNDS
ADDITIONS:
CONTRIBUTIONS:
PRIVATE DONATIONS
CONTRIBUTIONS FROM GOVERNMENT 1,123,000$ -$
NET INVESTMENT INCOME (LOSS):
INVESTMENT INCOME 38,457 116
TOTAL ADDITIONS 1,161,457 116
DEDUCTIONS:
EDUCATION - 1,000
CHANGE IN NET POSITION 1,161,457 (884)
NET POSITION AT BEGINNING OF YEAR - 61,990
NET POSITION AT END OF YEAR 1,161,457$ 61,106$
TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FISCAL YEAR ENDED JUNE 30, 2014
See accompanying notes to the basic financial statements
- 23 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying basic financial statements of the Town of Brewster, Massachusetts (the Town) have
been prepared in accordance with accounting principles generally accepted in the United States of
America (GAAP). The Governmental Accounting Standards Board (GASB) is the recognized standard-
setting body for establishing governmental accounting and financial reporting principles. The following is
a summary of the more significant Town accounting policies:
A. Reporting Entity
Primary Government
The Town is a municipal corporation that is governed by an elected five member Board of Selectmen (the
Board). The Board is responsible for appointing a Town Administrator whose responsibility is to manage
the day to day operations. For financial reporting purposes, the Town has included all funds,
organizations, account groups, agencies, boards, commissions and institutions. The Town has also
considered all potential component units, blended or discretely presented, for which it is financially
accountable as well as other organizations for which the nature and significance of their relationship with
the Town are such that exclusion would cause the basic financial statements to be misleading or
incomplete. Blended component units, although legally separate entities, are, in substance, part of the
government’s operations and discretely presented component units are reported in a separate column in
the government-wide financial statements to emphasize that they are legally separate from the
government. It has been determined that there are no component units (blended or discretely presented)
for inclusion in the primary government’s financial reporting entity.
Joint Ventures
Municipal joint ventures pool resources to share the costs, risks and rewards of providing services to their
participants, the general public or others. The Town is a participant in the following joint ventures:
The Nauset Regional School District (the District) is governed by 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 equity interest of approximately 46.76% in the joint
venture.
Name Purpose Address
Annual
Assessment
Nauset Regional To provide education services 78 Eldredge Parkway $ 9,327,166
School District Orleans, MA 02653
Cape Cod Regional
Technical High
School
To provide vocational education 351 Pleasant Lake Ave
Harwich, MA 02645
$ 702,591
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 position and the statement of activities)
report information on all of the non-fiduciary activities of the primary government. Governmental
activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which are supported primarily by user fees and charges.
Fund Financial Statements
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
even though fiduciary funds are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements. Nonmajor funds are aggregated and displayed in a single column.
Major Fund Criteria
A fund is considered major if it is the primary operating fund of the Town or it meets the
following criteria:
a. If the total assets, 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.
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses
are recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as
revenues in the fiscal year for which they are levied. Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by the provider have been met.
The statement of activities demonstrates the degree to which the direct expenses of a particular function
or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include the following:
a. Charges to customers or applicants who purchase, use, or directly benefit from goods, services,
or privileges provided by a given function or segment.
b. Grants and contributions that are restricted to meeting the operational requirements of a
particular function or segment.
c. Grants and contributions that are restricted to meeting the capital requirements of a particular
function or segment.
Taxes and other items not identifiable as program revenues are reported as general revenues.
For the most part, the effect of interfund activity has been removed from the government-wide financial
statements. Exceptions are charges between the general fund and the various enterprise funds. Elimination
of these charges would distort the direct costs and program revenues reported for the functions affected.
Fund Financial Statements
Governmental Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting,
revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). Measurable means the amount of the transaction can be determined and available means
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
Expenditures are recorded when the related fund liability is incurred, except for interest on general long-
term debt which is recognized when due, and the noncurrent portion of landfill post closure care costs,
capital leases, and other postemployment benefits (OPEB) which are recognized when the obligations are
expected to be liquidated with current expendable available resources.
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
In applying the susceptible to accrual concept to intergovernmental revenues, there are essentially two
types of revenues. In one, moneys must be expended on the specific purpose or project before any
amounts will be paid to the Town; therefore, revenues are recognized based upon the expenditures
incurred. In the other, moneys are virtually unrestricted and are usually revocable only for failure to
comply with prescribed compliance requirements. These resources are reflected as revenues at the time of
receipt or earlier if the susceptible to accrual criteria are met.
The Town considers property taxes as available if they are due and collected within 60 days after fiscal
year-end. Licenses and permits, user charges, fines and forfeitures, and miscellaneous revenues are
recorded as revenues when received. Investment earnings are recorded as earned.
The Town reports the following major governmental funds:
The General fund is the primary operating fund of the Town. It is used to account for all financial
resources, except those that are required to be accounted for in another fund.
The Community Preservation fund is a special revenue fund used to account for the accumulation
of resources to purchase open space, assist in development of affordable housing, and
preservation of historic property under the guidelines of the community preservation act of the
Massachusetts general laws.
The Nonmajor Governmental funds consist of other special revenue, capital projects and
permanent funds that are aggregated and presented in the nonmajor governmental funds column
on the governmental funds financial statements. The following describes the general use of these
fund types:
• The Special Revenue fund is used to account for the proceeds of specific revenue sources
(other than permanent funds or capital projects funds) that are restricted by law or
administrative action to expenditures for specified purposes.
• The Capital Projects fund is used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by enterprise
and trust funds).
• The Permanent fund is used to account for financial resources that are legally restricted to the
extent that only earnings, not principal, may be used for purposes that support the
governmental programs.
Proprietary Fund Financial Statements
Proprietary fund financial statements are reported using the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and
expenses are recorded when the liabilities are incurred.
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with the proprietary funds principal ongoing operations. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
The following major proprietary funds are reported:
The Water Enterprise fund is used to account for water activities.
The Golf Enterprise fund is used to account for golf activities.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements are reported using the flow of economic resources measurement focus
and use the accrual basis of accounting. Fiduciary funds are used to account for assets held by the Town
in a trustee capacity for others that cannot be used to support the governmental programs.
The following fiduciary fund types are reported:
The Private-Purpose Trust fund is used to account for trust arrangements, other than those
properly reported in the permanent fund (nonmajor governmental funds), under which principal
and investment income exclusively benefit individuals, private organizations, or other
governments.
The Agency fund is used to account for assets held in a purely custodial capacity.
The Postemployment Benefit Trust is used to account for the assets held that will fund the long
term liability associated with the Towns retirees health benefits.
Government-Wide and Fund Financial Statements
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in the government-wide, proprietary fund, and fiduciary funds financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental Accounting
Standards Board. Governments also have the option of following subsequent private-sector guidance for
their business-type activities and enterprise funds, subject to this same limitation. The Town has elected
not to follow subsequent private-sector guidance.
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.
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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.
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.
- 29 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
Special Assessments
Governmental activities special assessments consist primarily of Road Betterments, and Title V
receivables which are recorded as receivables in the fiscal year accrued. Since the receivables are secured
via the lien process, these assets are considered 100% collectable and therefore do not report an allowance
for uncollectibles.
Departmental and Other
Departmental and other receivables consist primarily of ambulance receivables and are recorded as
receivables in the fiscal year accrued. The allowance for uncollectibles for the ambulance receivables is
estimated based on historical trends and specific account analysis.
Intergovernmental
Various federal and state grants for operating and capital purposes are applied for and received annually.
For non-expenditure driven grants, receivables are recognized as soon as all eligibility requirements
imposed by the provider have been met. For expenditure driven grants, receivables are recognized when
the qualifying expenditures are incurred and all other grant requirements are met.
These receivables are considered 100% collectible and therefore do not report an allowance for
uncollectibles.
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) and
construction in progress, 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.
- 30 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
Capital assets (excluding land and construction in progress) are depreciated on a straight-line basis. The
estimated useful lives of capital assets are as follows:
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend
asset lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized.
Governmental Fund Financial Statements
Capital asset costs are recorded as expenditures in the fiscal year of purchase for the various funds.
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 position. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the statement of net position as
"internal balances".
Fund Financial Statements
Transactions of a buyer/seller nature between and within funds are not eliminated from the individual
fund statements. Receivables and payables resulting from these transactions are classified as "Due from
other funds" or "Due to other funds" on the balance sheet.
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
- 31 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 position. Any residual balances outstanding between the governmental
activities and business-type activities are reported in the statement of activities as "Transfers, net".
Fund Financial Statements
Operating transfers between and within funds are not eliminated from the individual fund statements and
are reported as operating transfers in and operating transfers out.
J. Deferred Inflows of Resources
Although certain revenues are measurable, they are not available. Available means collected within the
current period, or expected to be collected soon enough thereafter, to be used to pay liabilities of the
current period. Deferred inflows of resources at the fund level, represents the amount of assets that have
been recognized, but the related revenue has not been recognized since it is not available.
Deferred inflows of resources at the fund level consist of the succeeding year property tax revenue,
Intergovernmental revenue, and other revenue not collected within sixty days after year-end.
K. Net Position and Fund Equity
Government-Wide Financial Statements (Net Position)
Net position are classified into three components:
a. Net investment in capital assets – consists of capital assets including restricted capital assets, net
of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages,
notes, or other borrowings that are attributable to the acquisition, construction, or improvement of
those assets.
b. Restricted net position – Consists of net position with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, or laws or regulations of other
governments; or (2) law through constitutional provisions or enabling legislation.
Net position have been “restricted” for the following:
• Streets represent amounts committed by the Commonwealth of Massachusetts 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.
- 32 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
• Other specific purpose represents restrictions placed on assets from outside parties.
c. Unrestricted net position – All other net position that do not meet the definition of “restricted” or
“net investment in capital assets.”
Fund Financial Statements (Fund Balances)
The Town uses the following criteria for fund balance classification:
• For nonspendable fund balance: includes amounts that cannot be spent because they are either
(1) not in spendable form or (2) legally or contractually required to be maintained intact.
• For restricted fund balance: when constraints placed on the use of the resources are either (1)
externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments; or (2) imposed by law trough constitutional provisions or enabling legislation.
• For committed fund balance: (1) the government’s highest level of decision-making authority and
(2) the formal action that is required to be taken to establish (and modify or rescind) a fund
balance commitment.
• For assigned fund balance: (1) the body or official authorized to assign amounts to a specific
purpose and (2) the policy established by the governing body pursuant to which the authorization
is given.
• For unassigned fund balance: is the residual classification for the general fund. In other
governmental funds, if expenditures incurred for specific purposes exceeded the amounts
restricted, committed, or assigned to those purposes, it may be necessary to report a negative
unassigned fund balance.
The Town uses the following criteria for fund balance policies and procedures:
• When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available, the unrestricted amount will be considered to have been spent.
• When an expenditure is incurred for purposes for which committed, assigned, or unassigned fund
balance is available, the least restricted amount will be considered to have been spent.
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
position. Material bond premiums and discounts are deferred and amortized over the life of the bonds
using the effective interest method. Bonds payable are reported net of the applicable bond premium or
discount.
- 33 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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.
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.
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.
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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.
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 2014 approved budget authorized
$34,586,885 in current year appropriations and other amounts to be raised and $2,085,465 in carryover
articles carried over from previous fiscal years. Supplemental appropriations of $1,349,544 were
approved at two Special Town Meetings for fiscal year 2014.
The Finance Director has the responsibility to ensure that budgetary controls are maintained and
monitored through the accounting system.
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
B. Budgetary – GAAP Reconciliation
For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of
accounting (established by the Commonwealth) is followed, which differs from the GAAP basis of
accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the fiscal
year ended June 30, 2014, is presented below:
C. Excess of Expenditures over Appropriations
For the fiscal year ended June 30, 2014, actual expenditures exceeded appropriations for the snow and
ice. This over-expenditure will be funded by available funds during fiscal year 2015, as is allowed by
Massachusetts general laws (MGL).
D. Deficit Fund Balances
Individual fund deficits exist within the special revenue, capital project fund, and water enterprise funds.
These individual deficits will be eliminated through subsequent fiscal year budget transfers, grants, and/or
proceeds from long-term debt during fiscal year 2015.
Net change in fund balance - budgetary basis (1,834,902)$
Basis of accounting differences:
Increase in revenue for on-behalf payments - MTRS 1,189,366
Increase in expenditures for on-behalf payments - MTRS (1,189,366)
Increase in revenue for the MWPAT subsidy 9,625
Increase in expenditures for the MWPAT subsidy (9,625)
Net Stabilization fund activity (1,114,968)
Adjustment for current year articles 1,835,000
Adjustment for current year encumbrances 164,281
Adjustment for expenditures from prior year encumbrances (133,273)
Net change in fund balance - GAAP basis (1,083,862)$
- 36 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 3 – DEPOSITS AND INVESTMENTS
State and local statutes place certain limitations on the nature of deposits and investments available to the
Town. Deposits (including demand deposits, term deposits and certificates of deposit) in any one financial
institution may not exceed certain levels unless collateralized by the financial institutions involved.
Deposits
Custodial Credit Risk - Deposits
Custodial credit risk is the risk that in the event of bank failure, the Town’s deposits may not be
returned. Massachusetts General Law Chapter 44, Section 55, limits the deposits “in a bank or
trust company, or banking company to an amount not exceeding sixty percent (60%) of the
capital and surplus of such bank or trust company or banking company, unless satisfactory
security is given to it by such bank or trust company or banking company for such excess.”
The Town does not have a formal deposit policy for custodial credit risk.
The Town carries deposits that are fully insured by the Federal Deposit Insurance Corporation
(FDIC), and the Depositor’s Insurance Fund (DIF). The Town also carries deposits that are
uninsured, uncollateralized, or collateral held by the pledging bank’s trust department not in the
Town’s name.
The following table illustrates how much of the Town’s bank deposits are insured and how much
of the Town’s bank deposits are uninsured, uncollateralized, or collateral held by the pledging
bank’s trust department not in the Town’s name as of June 30, 2014:
Total Bank Balances 20,154,952$
Bank Balances Covered by Deposit Insurance
Federal Deposit Insurance Corporation (FDIC)1,118,577
Depositor's Insurance Fund (DIF)14,969,496
Total Bank Balances Covered by Deposit Insurance 16,088,073
Balances Subject to Custodial Credit Risk
Bank Balances Collaterallized with Securities Held
by the Pledging Financial Institution's Trust
Department or Agent but not in the Town's Name 3,992,743
Bank Balances Uninsured and Uncollateralized 74,136
Total Bank Balances Subject to Custodial Credit Risk 4,066,879
Total Bank Balances 20,154,952$
- 37 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
Investments
Investments can also be made in securities issued by or unconditionally guaranteed by the U.S.
government or agencies that have a maturity of less than one year from the date of purchase, repurchase
agreement guaranteed by the U.S. government or agencies that have a maturity of less than one year from
the date of purchase, repurchase agreements guaranteed by such securities with maturity dates of no more
than 90 days from the date of purchase, and units in the Massachusetts Municipal Depository Trust
(MMDT). The Treasurer of the Commonwealth of Massachusetts oversees the financial management of
the MMDT, a local investment pool for cities, towns, and other state and local agencies within the
Commonwealth. The Town’s fair value of its investment in MMDT represents their value of the pool’s
shares. The Town’s Trust Funds have expanded investment powers including the ability to invest in
equity securities, corporate bonds, annuities and other specified investments.
The composition of the Town’s bank recorded deposits and investments fluctuates depending primarily
on the timing of property tax receipts, proceeds from borrowings, collections of state and federal aid, and
capital outlays throughout the year.
• Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. For short-term investments that were purchased using surplus revenues,
Massachusetts General Law Chapter 44, Section 55, limits the Town’s investments to the top
rating issued by at least one nationally recognized statistical rating organization (NRSROs).
Presented below is the actual rating as of year end for each investment type of the Town.
Investment type Fair value
Minimum
Legal
Rating Unrated
State Retirees Benefits Trust Fund (SRBT) -
HCST OPEB Master Trust 1,161,457$ N/A 1,161,457$
Rating as of
Year End
• Custodial Credit Risk
For an investment, this is the risk that, in the event of a failure by the counterparty, the Town will
not be able to recover the value of its investments or collateral security that are in possession of
an outside party. The investment in the State Retirees Benefit Trust Fund is not exposed to
custodial credit risk because the investment is registered in the name of the Town. The Town
does not have an investment policy for custodial credit risk.
• Interest Rate Risk
Interest rate risk is the risk of changes in market interest rates which will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the risk of
its fair value to change with the market interest rates. The Town does not have a formal
investment policy that limits investment maturities as a means of managing its exposure to fair
value losses arising from increasing interest rates.
- 38 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
Information about the sensitivity of the fair values of the Town’s investments to market interest
rate fluctuations is as follows:
Investment
maturities
(in years)
Investment type Fair value Less than 1
State Retirees Benefits Trust Fund (SRBT) -
HCST OPEB Master Trust 1,161,457$ 1,161,457$
• Concentration of Credit Risk
The Town places no limit on the amount the government may invest in any one issuer. More than
5% of the Town’s investments are in the following securities:
Issuer
Percentage of
Total
Investments
State Retirees Benefits Trust Fund (SRBT) -
HCST OPEB Master Trust 100.00%
NOTE 4 – RECEIVABLES
The receivables at June 30, 2014 for the Town’s individual major and nonmajor governmental funds, in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Allowance
Gross for Net
Receivables:Amount Uncollectibles Amount
Real estate and personal property taxes 427,925$ (3,100)$ 424,825$
Tax liens 445,218 - 445,218
Motor vehicle and other excise taxes 137,609 (58,103) 79,506
Departmental and other 485,456 (219,848) 265,608
Intergovernmental 1,219,700 - 1,219,700
Special assessments 628,244 - 628,244
Total 3,344,152$ (281,051)$ 3,063,101$
- 39 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
The receivables at June 30, 2014, for the enterprise funds consist of the following:
Governmental funds report deferred inflows of resources in connection with receivables for revenues that
are not considered to be available to liquidate liabilities of the current period. Governmental funds also
defer revenue recognition in connection with revenues that have been received, but not yet earned. At the
end of the current fiscal year, the various components of deferred inflows of resources reported in the
governmental funds were as follows:
Allowance
Gross for Net
Receivables:Amount Uncollectibles Amount
Water
User fees 955,421$ -$ 955,421$
Special Assessments 43,149 - 43,149
Total 998,570$ -$ 998,570$
Nonmajor
General Community Governmental
Deferred Inflows:Fund Preservation Funds Total
Deferred Property Taxes 76,581$ 20,767$ -$ 97,348$
Deferred Other Revenue 373 - 872,712 873,085
Deferred Intergovernmental Revenue 544,696 - 424,024 968,720
Total 621,650$ 20,767$ 1,296,736$ 1,939,153$
Deferred Inflows of Resources Analysis
- 40 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 5 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2014, was as follows:
Beginning Decrease/Ending
Governmental Activities:Balance Increases Adjustments Balance
Capital assets not being depreciated:
Land 37,877,192$ 685,000$ -$ 38,562,192$
Construction in progress 623,632 145,393 (544,332) 224,693
Total capital assets not being depreciated 38,500,824 830,393 (544,332) 38,786,885
Capital assets being depreciated:
Building and improvements 24,902,215 250,338 - 25,152,553
Capital improvement (other than buildings)2,161,086 445,903 479,325 3,086,314
Machinery, equipment, and vehicles 9,615,617 625,661 - 10,241,278
Infrastructure 10,095,180 727,500 65,007 10,887,687
Total capital assets being depreciated 46,774,098 2,049,402 544,332 49,367,832
Less accumulated depreciation for:
Building and improvements (10,535,891) (631,577) - (11,167,468)
Capital improvement (other than buildings)(563,885) (160,626) - (724,511)
Machinery, equipment, and vehicles (5,873,696) (723,996) - (6,597,692)
Infrastructure (4,164,317) (287,201) - (4,451,518)
Total accumulated depreciation (21,137,789) (1,803,400) - (22,941,189)
Total capital assets being depreciated, net 25,636,309 246,002 544,332 26,426,643
Total governmental activities capital assets, net 64,137,133$ 1,076,395$ -$ 65,213,528$
- 41 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
Depreciation expense was charged to functions/programs of the primary government as follows:
General government 144,491$
Public safety 632,117
Education 436,701
Public works 438,009
Human services 30,003
Culture and recreation 122,079
Total depreciation expense - governmental activities 1,803,400$
Water 358,287$
Golf 422,658
Total depreciation expense - business-type activities 780,945$
Governmental Activities:
Business-Type Activities:
Beginning Decreases/Ending
Business-Type Activities:Balance Increases Adjustments Balance
Capital assets not being depreciated:
Land 2,874,212$ -$ -$ 2,874,212$
Construction in progress 2,874,425 163,053 (3,037,478) -
Total capital assets not being depreciated 5,748,637 163,053 (3,037,478) 2,874,212
Capital assets being depreciated:
Buildings and improvements 5,674,503 - - 5,674,503
Machinery, equipment, and vehicles 2,557,874 117,722 - 2,675,596
Infrastructure 20,453,949 - 3,037,478 23,491,427
Total capital assets being depreciated 28,686,326 117,722 3,037,478 31,841,526
Less accumulated depreciation for:
Buildings and improvements (1,114,698) (141,449) - (1,256,147)
Machinery, equipment, and vehicles (1,730,754) (141,958) - (1,872,712)
Infrastructure (9,119,918) (497,538) - (9,617,456)
Total accumulated depreciation (11,965,370) (780,945) - (12,746,315)
Total capital assets being depreciated, net 16,720,956 (663,223) 3,037,478 19,095,211
Total business-type activites capital assets, net 22,469,593$ (500,170)$ -$ 21,969,423$
- 42 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
Construction Commitments
The Town has one active construction project for the Eddy Elementary School roof and HVAC project as
of June 30, 2014. At year end the Town’s project commitment for the contractor is as follows:
These commitments for the renovation of the Eddy Elementary School roof and HVAC project will be
funded by the issuance of long-term debt.
NOTE 6 – CAPITAL LEASES
The Town has entered into lease agreements as lessee for financing the acquisition of two Ferrara fire
pumper trucks, ambulance, two golf course aerators, a golf course Procore processor, seven mowers, and
thirty six respirators. The lease agreements qualify as capital leases for accounting purposes and,
therefore, have been recorded at the present value of the future minimum lease payments as of the
inception date.
The assets acquired through the capital leases are as follows:
Primary
Government
Assets:
Vehicles 1,118,187$
Machinery & Equipment 560,918
Less: Accumulated depreciation (625,893)
1,053,212$
Spent Remaining
Project to Date Commitment
Eddy Elementary School roof and HVAC 76,250$ 2,952,671$
- 43 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
The future minimum lease obligations and the net present value of the minimum lease payments as of
June 30, 2014, are as follows:
NOTE 7 – INTERFUND TRANSFERS
Interfund transfers for the fiscal year ended June 30, 2014, are summarized as follows:
(1) Represents budgeted transfers from the various funds to the general fund.
(2) Represents other transfers.
Governmental
Year Ending June 30 Activities
2015 274,227$
2016 274,227
2017 173,100
2018 173,100
2019 107,632
Total minimum lease payments 1,002,286
Less: amounts representing interest (96,179)
Present value of minimum lease payments 906,107$
Nonmajor
General Governmental
Operating Transfers Out:Fund Funds Total
Nonmajor Governmental Funds 1,517,337$ -$ 1,517,337$ (1)
Nonmajor Governmental Funds 61,742 - 61,742 (2)
Water Enterprise Fund 382,477 - 382,477 (1)
Golf Enterprise Fund 189,303 - 189,303 (1)
Community Preservation Fund 347,670 - 347,670 (1)
General Fund - 315,704 315,704 (2)
Total 2,498,529$ 315,704$ 2,814,233$
Operating Transfers In:
- 44 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 8 – SHORT-TERM FINANCING
Under state law, and with the appropriate authorization, the Town is authorized to borrow funds on a
temporary basis as follows:
• To fund current operations prior to the collection of revenues by issuing revenue anticipation notes
(RANS).
• To fund grants prior to reimbursement by issuing grant anticipation notes (GANS).
• To fund Capital project costs incurred prior to selling permanent debt by issuing bond anticipation
notes (BANS).
• To fund current project costs and other approved expenditures incurred, that are anticipated to be
reimbursed by the Commonwealth through the issuance of State Aid anticipation notes (SAANS).
Short-term loans are general obligations of the Town and maturity dates are governed by statute. Interest
expenditures and expenses for short-term borrowings are accounted for in the general fund, and enterprise
fund respectively.
The following is a summary of changes in short-term debt for the year ended June 30, 2014:
Type Purpose
Rate
(%)
Due
Date
Balance at
June 30, 2013
Renewed/
Issued
Retired/
Redeemed
Balance at
June 30, 2014
Governmental Funds
BAN Crosby Mansion Septic 0.50 2/21/2014 75,000$ -$ (75,000)$ -$
BAN Allen Drive Road Betterment 0.49 1/31/2014 83,185 - (83,185) -
BAN Land Acquisition 0.49 1/31/2014 660,000 - (660,000) -
BAN Pell Circle Road Betterment 0.49 1/31/2014 66,101 - (66,101) -
BAN Crosby Mansion Septic 0.50 2/21/2015 - 65,000 - 65,000
Total Governmental Funds 884,286 65,000 (884,286) 65,000
Business - Type Activities
BAN New Water Pump Station 0.45 1/31/2014 2,708,372 - (2,708,372) -
Total:3,592,658$ 65,000$ (3,592,658)$ 65,000$
- 45 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 9 – LONG-TERM DEBT
The Town is subject to a dual-level, general debt limit: the normal debt limit and the double debt limit.
Such limits are equal to 5% and 10%, respectively, of the valuation of taxable property in the Town as
last equalized by the Commonwealth’s Department of Revenue. Debt may be authorized up to the normal
debt limit without state approval. Authorizations under the double debt limit however require the approval
of the Commonwealth’s Emergency Finance Board. Additionally, there are many categories of general
long-term debt which are exempt from the debt limit but are subject to other limitations.
The following is a summary of the changes in long-term debt for the year ended June 30, 2014:
Bonds and Notes Payable Schedule -Governmental Funds
Project
Interest
Rate (%)
Outstanding at
June 30, 2013 Issued
Redeemed/
Refunded
Outstanding at
June 30, 2014
School 3.74 1,220,000$ -$ 420,000$ 800,000$
Library 3.74 150,000 - 50,000 100,000
MWPAT Title V Septic Var 83,000 - 10,400 72,600
Police Station 3.89 1,180,000 - 170,000 1,010,000
Road Betterments 3.62 20,000 - 20,000 -
Road Betterments 3.62 25,000 - 25,000 -
MWPAT Title V Septic 3.59 109,050 - 9,525 99,525
Land Acquisition 3.64 490,000 - 65,000 425,000
Road Betterments 3.64 90,000 - 30,000 60,000
Road Betterments 3.64 45,000 - 15,000 30,000
Land Acquisition 4.49 575,000 - 50,000 525,000
Land Acquisition 4.49 1,120,000 - 80,000 1,040,000
Road Betterments 4.49 60,000 - 15,000 45,000
Road Betterments 4.49 40,000 - 10,000 30,000
Road Betterments 3.96 115,000 - 25,000 90,000
Land Acquisition 3.84 605,000 - 35,000 570,000
Road Betterments 3.84 185,000 - 25,000 160,000
Road Betterments 3.84 65,000 - 10,000 55,000
Road Betterments 3.00 - 67,331 - 67,331
Road Betterments 3.00 - 83,185 - 83,185
Land Acquisition 3 - 3.50 - 660,000 - 660,000
Total 6,177,050$ 810,516$ 1,064,925$ 5,922,641$
- 46 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
The annual debt service requirements for principal and interest for Governmental bonds and notes
outstanding at June 30, 2014 are as follows:
Bonds and Notes Payable Schedule -Water and Golf Enterprise Funds
The annual debt service requirements for principal and interest for water and golf enterprise funds bonds
and notes outstanding at June 30, 2014 are as follows:
Fiscal Year Principal Interest Total
2015 1,075,441$ 234,770$ 1,310,211$
2016 1,035,400 188,150 1,223,550
2017 550,400 153,997 704,397
2018 520,400 129,811 650,211
2019 485,400 107,939 593,339
2020-2024 1,435,600 308,696 1,744,296
2025-2029 610,000 97,233 707,233
2030-2034 210,000 19,500 229,500
Total 5,922,641$ 1,240,096$ 7,162,737$
Project
Interest
Rate (%)
Outstanding at
June 30, 2013 Issued
Redeemed/
Refunded
Outstanding at
June 30, 2014
Golf Course 3.92 4,645,000$ -$ 560,000$ 4,085,000$
Golf Course 3.64 100,000 - 100,000 -
Water Mains 3.89 1,040,000 - 150,000 890,000
Standpipe Rehabilitation 3.62 70,000 - 70,000 -
Water Betterments - Slough Rd 3.64 470,000 - 40,000 430,000
Water Betterments - Slough Rd 4.49 45,000 - 5,000 40,000
Water Offices/Garage 3.96 1,850,000 - 125,000 1,725,000
Well #5 3 - 3.50 - 2,678,597 - 2,678,597
Total 8,220,000$ 2,678,597$ 1,050,000$ 9,848,597$
Fiscal Year Principal Interest Total
2015 1,053,597$ 405,140$ 1,458,737$
2016 1,080,000 356,983 1,436,983
2017 1,110,000 306,276 1,416,276
2018 1,150,000 253,914 1,403,914
2019 1,180,000 199,545 1,379,545
2020-2024 2,400,000 515,488 2,915,488
2025-2029 1,225,000 222,307 1,447,307
2030-2034 650,000 66,138 716,138
Total 9,848,597$ 2,325,791$ 12,174,388$
- 47 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
Massachusetts School Building Authority 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 Massachusetts
School Building Authority (MSBA) 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
$544,696 from scheduled annual payments in FY 2014 from the MSBA for completed school
construction projects.
Loans Authorized and Unissued
As of June 30, 2014, the Town has loans authorized and unissued as follows:
Date
Description Authorized Amount
Septage Betterments 5/6/1996 28,600$
Crosby mansion 11/15/2010 65,000
Well #6 water main construction 11/7/2011 541,403
Road betterments - Prell Circle 5/7/2012 8,609
Land Acquisition - copellas 11/13/2012 1,140,000
Road betterments - South Pond 5/6/2013 192,345
Eddy School - Roof Replacement 5/5/2014 3,330,000
Golf Course Improvement 11/18/2013 200,000
Stony School - Window Replacement 5/5/2014 150,000
Road Betterment - Ebeneezer Rd. 5/5/2014 150,225
5,806,182$
- 48 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
Changes in Long-term Liabilities
The following is a summary of changes in long-term liabilities for the year ended June 30, 2014:
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, 2014:
Total Long-Town's Town's
Term Debt Estimated Indirect
Agency Outstanding Share Debt
Nauset Regional School District 1,309,184$ 46.76%612,174$
Beginning Ending Current
Governmental Activities:Balance Additions Reductions Balance Portion
Landfill postclosure care costs 328,500$ 71,000$ -$ 399,500$ 19,500$
Capital Lease 742,266 225,000 (215,964) 751,302 179,454
Postemployment benefits 4,218,856 - (129,539) 4,089,317 -
Bonds and notes payable 6,177,050 810,516 (1,064,925) 5,922,641 1,075,441
Total governmental activities
long-term liabilities 11,466,672$ 1,106,516$ (1,410,428)$ 11,162,760$ 1,274,395$
Beginning Ending Current
Business-Type Activities:Balance Additions Reductions Balance Portion
Postemployment benefits 782,328$ -$ (24,021)$ 758,307$ -$
Capital Lease 131,189 84,198 (60,582) 154,805 59,293
Bonds and notes payable 8,220,000 2,678,597 (1,050,000) 9,848,597 1,053,597
Total business-type activities
long-term liabilities 9,133,517$ 2,762,795$ (1,134,603)$ 10,761,709$ 1,112,890$
- 49 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 10 – GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The Town has classified its governmental fund balances with the following hierarchy.
Nonmajor
General Community Governmental
Fund Preservation Funds Total
Fund Balances
Nonspendable:
Permanent Fund Principal -$ -$ 141,613$ 141,613$
Restricted For:
General Government - - 425,719 425,719
Public Safety - - 1,056,940 1,056,940
Education - - 50,740 50,740
Public Works - - 742,390 742,390
Human Services - - 157,044 157,044
Culture & Recreration - - 150,335 150,335
Employee Benefits - - 278,371 278,371
Community Preservation - 4,265,553 - 4,265,553
Expendable Trust Funds - - 117,508 117,508
- 4,265,553 2,979,047 7,244,600
Committed To:
Continuing Appropriations
General Government 687,849 - - 687,849
Public Safety 340,483 - - 340,483
Education 480,765 - - 480,765
Public Works 257,892 - - 257,892
Human Services 18,700 - - 18,700
Culture & Recreation 49,311 - - 49,311
1,835,000 - - 1,835,000
Assigned To:
Encumbered For:
General Government 21,405 - - 21,405
Public Safety 567 - - 567
Education 111,937 - - 111,937
Public Works 25,872 - - 25,872
Human Services 500 - - 500
Employee Benefits 4,000 - - 4,000
Subsequent Years Expenditures 778,587 - - 778,587
Stabilization Fund - Tri Town 75,000 - - 75,000
1,017,868 - - 1,017,868
Unassigned
General Fund 3,248,313 - - 3,248,313
General Stabilization Fund 2,046,956 - - 2,046,956
Nonmajor Governmental Funds
Public Works - - (204,965) (204,965)
Nonmajor Capital Projects
Education - - (83,650) (83,650)
5,295,269 - (288,615) 5,006,654
Total Governmental Fund Balances 8,148,137$ 4,265,553$ 2,832,045$ 15,245,735$
`
- 50 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 11 – STABILIZATION FUND
The Stabilization fund is used to account for any appropriation, as approved by a 2/3 vote at the
annual or special town meeting for additions or reductions to the fund. Any interest shall be
added to and become part of the fund. The Stabilization fund balance is $2,046,956 as of June 30,
2014. The fund was established under chapter 40, sub-section 5B of the Massachusetts General
Law.
The Stabilization Fund – Tri Town is used to account for Brewster transferred the Funds out of
the Stabilization Fund for TriTown into a Special Article in Fiscal 2015. There is no more
TriTown Stabilization Fund. Initially the funds were for Finance Shared Costs associated with the
study, permitting, planning and demolition of the septage treatment plant
NOTE 12 – RISK FINANCING
The Town is exposed to various risks of loss related to torts; theft of, damage to or destruction of assets;
errors and omissions; injuries to employees; employee’s health and life; and natural disasters.
Buildings are fully insured against fire, theft, and natural disaster to the extent that losses exceed $1,000
per incident. The fully insurable value of Town buildings and contents is $45,557,454.
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 2014.
The Town is a member of the Cape Cod Municipal Health Group, (CCMHG) which is a Massachusetts
Municipal Joint Health Insurance purchase group. The Group includes fourteen Towns, six school
districts, five fire districts, six water districts, one recreation authority, one education collaborative,
Veterans Services of Cape Cod, Barnstable County, Orleans/Brewster/Eastham Groundwater Protection
District and Cape Cod Regional Transit Authority as participants. In addition, the Group entered into a
Joint Negotiation Purchase of Health Coverage with the Dukes County Municipal Health Group which
consists of Dukes County Commissioners; the Towns of Chilmark, Edgartown, Gosnold, Oak Bluffs,
Tisbury, West Tisbury, and Aquinnah; Martha’s Vineyard Refuse Disposal and Resource Recovery
District; Martha’s Vineyard Commission; Martha’s Vineyard Land Bank Commission; Oak Bluffs Water
District; Martha’s Vineyard Regional School District; Up-Island Regional School District; Martha’s
Vineyard Charter School; and Martha’s Vineyard Transit Authority.
Health benefits plans for active employees and non-Medicare eligible retirees consist of a traditional
medical indemnity plan, two Preferred Provider Organization (PPO) plans and two Exclusive Provider
Organization (EPO) plans. All active employees and self funded with Blue Cross and Blue Shield of
Massachusetts (BCBSMA) and Harvard Pilgrim Health Care (HPHC) as third party administrators. The
Group offers six health plans for Medicare eligible retirees, which include two self-funded Medicare
Supplement plans, one of which is administered by BCBSMA and one by HPHC, one fully insured
Medicare Supplement with a Medicare Prescription Drug (PDP) plan provided by Tufts Health Plan, one
HMO Medicare wrap plan fully insured by BCBSMA, and two fully insured Medicare Advantage HMO
plans, one of which is from BCBSMA and one from Tufts Health Plan.
- 51 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
Prior to July 1, 2012, the Group offered two benefit options for each EPO and PPO plan: the Legacy
option and the Rate Saver option. On July 1, 2012, the Group changed its plan designs following
applicable law to do so. The plan design changes resulted in a single option for each EPO and each PPO.
These options to do so. The plan design changes resulted in a single option for each EPO and each PPO.
These options are similar in plan design to the Group Insurance Commission’s “benchmark plan” and
include additional member cost-sharing features. The Group has adopted a contributory dental insurance
plan (self-funded) and a voluntary dental plan, which was premium based through June 30, 2007 and
changed to a self funded basis effective July 1, 2007. These plans are administered by Delta Dental Plan
of Massachusetts for a monthly administrative fee, based on the number of subscribers. Effective July 1,
2009 the group adopted a voluntary fully funded vision plan from EyeMed Vision Care. The vision plan
is optional for employees.
The Master Health Plus, Blue Care Elect Preferred PPO plan, Network Blue EPO plan, and Medex plan
are on a claims-paid basis, and are administered by Blue Cross Blue Shield of Massachusetts for a
monthly administration fee based on the number of individual, single parent/single child, and family plan
subscribers for that particular month.
The Harvard Pilgrim EPO Plan, Harvard Pilgrim PPO plan, and Harvard Pilgrim Health Care Enhance
Medicare plan are on a claims-paid basis, and are administered by Harvard Pilgrim Health Care for a
monthly administration fee based on the number of individual and family plan subscribers for that
particular month.
The Group has a specific excess medical and prescription drug claims reinsurance contract with an
insurance carrier covering claims paid in excess of $500,000, and $300,000 per individual, to a lifetime
maximum amount payable of $2,000,000 at June 30, 2014. The Group does not reinsure its Medex and
HPHC Medicare Enhance plans. The policy period covers claims incurred within twelve months and paid
within twenty-four months.
The Group’s Board may deal with certified surpluses and deficits through the rate setting process and this
is the preferred method. Alternatively, the Group may deal with certified surpluses and deficits by making
direct distributions to members in the case of a certified surplus or may require direct payments from
members in the case of a certified deficit.
The Group provides health care coverage for employees that qualify for and select health care coverage as
an employee benefit as well as retired employees. There are 191 Town of Brewster employees and 100
retirees/surviving spouses who participate in the Group’s health care programs. The Town contributes
75% of the premium cost for employees and 50% of the premium cost for retirees and surviving spouses.
As of June 30, 2014, the Cape Cod Municipal Health Group had total assets of $38,341,466, total
liabilities of $12,592,875 (including $12,142,593 in estimated benefits obligations), and a total surplus of
$25,748,591.
- 52 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 13 - POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions, requires the following disclosures with regard to the retiree medical,
dental, and life insurance benefits:
Plan Description. The Post Retirement Benefits Plan of the Town of Brewster (The Plan) is a single-
employer defined benefit healthcare plan administered by the Town of Brewster. The Plan provides
medical, dental and life insurance benefits to eligible retirees and their spouses. Town meeting vote is the
authority to establish and amend benefit provisions to the Town. The Town has accepted various sections
of Massachusetts General laws Chapter 32B to provide ½ of the premium cost of retirees’ health and life
insurance costs.
Funding Policy. The contribution requirements of plan members and the Town are established and may
be amended by local by-law. The required contribution is based on projected pay-as-you -go financing
requirements. For Fiscal Year 2014, the estimated total Town premiums plus implicit costs for the retiree
medical program are $1,548,714.
Annual OPEB Cost and Net OPEB Obligation. The Town’s annual other postemployment benefit
(OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an
amount actuarially determined in accordance with the parameters of GASBS No. 45. The ARC represents
a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.
The following table shows the components of the Town’s annual OPEB cost for the fiscal year, the
amount actually contributed to the plan, and changes in the Town’s net OPEB obligation to the plan:
Annual required contribution 1,352,633$
Interest on net OPEB obligation 225,053
Adjustment to annual required contribution (ARC)(182,532)
Annual OPEB cost (expense)1,395,154
Contributions made (1,548,714)
Increase in net OPEB obligation (153,560)
Net OPEB obligation - beginning of year 5,001,184$
Net OPEB obligation - end of year 4,847,624$
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2014 and the five preceding years were as follows:
Funded Status and Funding Progress. As of June 30, 2012, the most recent actuarial valuation date, the
plan was 0.0% funded. The actuarial accrued liability for benefits was $14.718 million, and the actuarial
value of assets was $0.0 million, resulting in an unfunded actuarial accrued liability (UAAL) of $14.718
million. The covered payroll (annual payroll of active employees covered by the plan) was $11.897
million, and the ratio of the UAAL to the covered payroll was 123.7%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made
about the future. The schedule of funding progress, presented as required supplementary information
following the notes to the financial statements, presents multiyear trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liabilities for benefits.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and the plan members) and include the types
of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and assumptions used
include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.
Fiscal Year
Ended
Annual OPEB
Cost
Percentage of
Annual OPEB
Cost
Contributed
Increase in
Net OPEB
Obligation
Net OPEB
Obligation
6/30/2009 $ 1,490,990 29.28% $ 1,054,493 $ 1,054,493
6/30/2010 $ 1,591,858 34.27% $ 1,046,291 $ 2,100,784
6/30/2011 $ 1,549,783 36.81% $ 979,284 $ 3,080,068
6/30/2012 $ 1,644,097 39.62% $ 992,709 $ 4,072,777
6/30/2013 $ 1,312,737 29.28% $ 928,407 $ 5,001,184
6/30/2014 $ 1,395,154 111.01% $ (153,560) $ 4,847,624
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
In the June 30, 2012, actuarial valuation, the projected unit credit actuarial cost method with amortization
payments increasing at 4.0% was used. Under this method, the normal cost and actuarial liability are both
based on an accrual of projected benefits over the period for which benefits are accrued. The normal cost
is the actuarial present value of one year’s benefit accrual on this basis. The actuarial accrued liability is
the actuarial present value of the projected benefit times the ration of past service to total service. The
actuarial assumptions included a 5.0% investment rate of return (net of administrative expenses), which is
a blended rate of the expected long-term investment returns on plan assets and on the employer’s own
investments calculated based on the funded level of the plan at the valuation date, and an annual
healthcare cost trend rate of 8.0% decreasing by .50% for 6 years to an ultimate level of 5.00% per year.
The actuarial value of assets was determined using market value. The UAAL is being amortized with
increasing payments at 4.0% over 30 years at transition. The remaining amortization period at July 1,
2014, was 24 years.
NOTE 14 – 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.
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, 2014, 2013, and 2012 were $1,697,692, $1,561,817, and $1,381,855,
respectively, which were equal to its required contributions for each of these years.
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
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 $1,189,366 for fiscal year 2014. 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 15 – COMMITMENTS AND CONTINGENCIES
The Town participates in a number of federal award programs. However the Town is not subject to the
provisions of the Single Audit Act Amendments of 1996, since the Town did not expend more than
$500,000 of federal awards during the period ended June 30, 2014. These programs may still be subject to
financial and compliance audits. Accordingly, the amount of expenditures which may be disallowed by
the granting agencies cannot be determined at this time, although it is believed the amount, if any, would
not be material.
The Town’s landfill was capped in 2000 by order of the Department of Environmental Protection (DEP).
The Town is responsible for post-closure monitoring of the site for thirty years (17 years remaining), and
the estimated liability has been recorded in the Statement of Net Position, Governmental Activities. The
$399,500 reported as landfill post-closure liability at June 30, 2014 is based on what it would cost to
perform all post-closure care at June 30, 2014. 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, 2014, cannot be ascertained, management believes any resulting liability should not materially affect
the financial position at June 30, 2014.
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 16 – – IMPLEMENTATION OF NEW GASB PRONOUNCMENTS
During fiscal year 2014, the following GASB pronouncements were implemented:
The GASB issued Statement #65, Items previously reported as Assets and Liabilities, was implemented
in fiscal year 2014. This pronouncement requires no additional disclosure and will not impact the basic
financial statements.
The GASB issued Statement #66, Technical Corrections – 2012 – an amendment of GASB Statements
No. 10 and No. 62, was implemented in fiscal year 2014. This pronouncement requires no additional
disclosure and will not impact the basic financial statements.
The GASB issued Statement #67, Financial Reporting for Pension Plans – an amendment of GASB
Statement No. 27, was implemented in fiscal year 2014. This pronouncement requires no additional
disclosure and will not impact the basic financial statements.
Future GASB Pronouncements:
The GASB issued Statement #68, Accounting and Financial Reporting for Pensions – an amendment of
GASB Statement No. 27, which is required to be implemented in fiscal year 2015. Management’s current
assessment is that this pronouncement will have a significant impact on the basic financial statements.
The GASB issued Statement #69, Government Combinations and Disposals of Government Operations,
which is required to be implemented in fiscal year 2015. Management’s current assessment is that this
pronouncement will not have a significant impact on the basic financial statements.
The GASB issued Statement #70, Accounting and Financial Reporting for Nonexchange Financial
Guarantees, which is required to be implemented in fiscal year 2015. Management’s current assessment
is that this pronouncement will not have a significant impact on the basic financial statements.
The GASB issued Statement #71, Pension Transition for Contributions Made Subsequent to the
Measurement Date – an amendment of GASB Statement No. 68, which is required to be implemented in
fiscal year 2015. Management’s current assessment is that this pronouncement will have a significant
impact on the basic financial statements.
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
BARNSTABLE COUNTY REGIONAL RETIREMENT SYSTEM
JUNE 30, 2014
The following schedules are presented in accordance with GASB Statement No. 27:
Schedules of Funding Progress
Actuarial
Valuation
Date
Actuarial Value
of Assets
(a)
Actuarial Accrued
Liability (AAL) -
Entry Age
(b)
Unfunded AAL
(UAAL)
(b - a)
Funded
Ratio
(a/b)
Covered
Payroll
(c)
UAAL as a
Percentage of
Covered Payroll
[(b - a)/c]
1/1/2012 651,063,981$ 1,173,483,848$ 522,419,867$ 55.5%239,437,303$ 218.2%
1/1/2010 554,876,554 1,030,210,321 475,333,767 53.9%234,374,075 202.8%
1/1/2008 520,089,855 966,564,614 446,474,759 53.8%249,971,296 178.6%
Schedule of Employer Contributions
Fiscal Year
Ended June 30
Annual
Required
Contributions
(A)
Actual
Contributions
Percentage
Contributed
(B)
Actual
Contributions
(B/A)
Town's Percentage of
System Wide Actual
Contributions
2012 $ 46,702,087 $ 46,702,087 100%1,381,855$ 2.96%
2011 43,807,158 43,807,158 100%1,313,399 3.00%
2010 43,893,051 43,893,051 100%1,219,950 2.78%
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TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2014
The following schedules are presented in accordance with GASB Statement No. 45:
Schedules of Funding Progress and Employer Contributions
Projected Schedule of Funding Progress:
Actuarial
Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability (AAL) -
Entry Age
(b)
Unfunded AAL
(UAAL)
(b - a)
Funded
Ratio
(a/b)
Covered
Payroll
(c)
UAAL as a
Percentage of
Covered Payroll
[(b - a)/c]
6/30/2008 -$ 19,960,683$ 19,960,683$ 0.0%10,503,689$ 190.0%
6/30/2010 -$ 22,292,830$ 22,292,830$ 0.0%10,692,405$ 208.5%
6/30/2012 -$ 14,718,311$ 14,718,311$ 0.0%11,896,588$ 123.7%
Schedule of Employer Contributions:
Year Ended
June 30
Annual
OPEB Cost
Percentage of
Annual
OPEB Cost
Contributed
Increase in
Net OPEB
Obligation
Net OPEB
Obligation
2009 $1,490,990 29.28%1,054,493$ 1,054,493$
2010 $1,591,858 34.27%1,046,291$ 2,100,784$
2011 $1,549,783 36.81%979,284$ 3,080,068$
2012 $1,644,097 39.62%992,709$ 4,072,777$
2013 $1,312,737 29.28%928,407$ 5,001,184$
2014 $1,395,154 111.01%(153,560)$ 4,847,624$
The required information presented above was determined as part of the actuarial valuations at the dates
indicated. Additional information as of the latest actuarial valuation follows:
Valuation date June 30, 2012
Discount Rate 4.50%
Medical Trend 8.00% decreasing by 0.50% for 6 years to an ultimate level
of 5.00% per year.
Cost Method Projected Unit Credit Cost Method
Amortization Method 30 Year Open, Amortization Payments Increasing at 4.00%
Remaining Amortization Period 24 years
- 59 -
TOWN OF BREWSTER, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS
JUNE 30, 2014
Plan Participants:
Current retirees, beneficiaries, and dependants 108
Current active members/participants 183
Total 291
- 60 -